The FSA Spy market buzz – 13 December 2024
M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple 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.
Related Stories
Promoted Content
-
Investment Ideas for 2021: Explore the untapped potential in China Small Companies
-
Appetite for thematic investments grows amid rates and inflation concerns
-
Accessing India’s tech future
-
How can a sustainable approach also ensure you don’t compromise performance?
-
Healthcare’s innovation shifts into high gear
-
An investment opportunity for the coming decades: the environment
-
Dynamism is the name of the game for this global macro strategy
-
Taking a thematic approach to harness disruption
-
Tap into Japan’s post-pandemic growth trends
-
How ETFs offer an active way to drive sustainable returns
