The FSA Spy market buzz – 16 May 2025
Playing monopoly with ETFs; Eastspring is worrying about loss aversion; Family office explosion; SGX wants more action; The Fear and Greed Index; Retail investors plough on; Deepfake fraud and much more.
HEAD-TO-HEAD: Columbia Threadneedle vs Fidelity
FSA compares the Threadneedle (Lux) Global Asset Allocation Fund with the Fidelity Growth & Income Fund.
The ongoing charges (OCF) of the two funds, Threadneedle’s 1.65% and Fidelity’s 1.69%, are below the median for the funds in the international mixed-asset category authorised by the SFC for sale in Hong Kong, according to FE data. The median for the category is 1.75%. The category is, on average, more expensive compared to others, with as many as six funds charging annual fees above 3%.
The structure of the Fidelity fund, which invests in other funds, raises concerns about fee layering. (The fund does not disclose fee details.)
Fidelity uses “pools” of assets, which are vehicles to co-manage assets from different funds, according to Ng. By using these pools, fund-of-fund strategies have the ability to effectively by-pass investing in the firm’s other funds, thereby potentially avoiding layering of fees, Ng noted.
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