Posted inHead To Head, News, Research

HEAD-TO-HEAD: Columbia Threadneedle vs Fidelity

FSA compares the Threadneedle (Lux) Global Asset Allocation Fund with the Fidelity Growth & Income Fund.
by Fund Selector Asia
Conclusion

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The Fidelity fund is an asset-allocation fund using predominantly other Fidelity funds to implement a top-down strategy. It has a stronger bias toward income.

The Threadneedle fund uses a dynamic strategy to manage a multi-asset portfolio not constrained by a benchmark. “The [Threadneedle] fund managers are more willing than the Fidelity manager to use different asset classes, including cash and commodities,” Ng said. “They focus on diversification within asset classes.”

Of the two, Ng has a preference for the Fidelity fund, as its management team is better resourced and backed by a big team of analysts and fund managers.

The Fidelity fund has also managed to deliver a better long-term return than the Columbia Threadneedle fund.

However, the decision to choose one or the other boils down to the investor’s objective. Those who want a multi-asset fund that primarily serves to ease volatility, should look at the Threadneedle fund, while investors who seek income through a collection of fidelity funds across asset classes, should consider the Fidelity product.

Ng noted that in case of a market downturn the Threadneedle fund is more likely to provide protection thanks to its large allocation to cash.

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