HEAD-TO-HEAD: Columbia Threadneedle vs Invesco

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Source: FE, in US dollars.

Performance

The current fund managers for the Invesco fund took over management responsibility in 2014 while the Threadneedle fund was incepted in 2014, Ng said. Therefore it is more meaningful to compare the performance after that year.

Ng said both funds have posted similar returns since 2014 and the major divergence is in 2018.

“Year-to-date, we begin to see the divergence in returns between the two funds. The Invesco fund has shown some resilience amid market volatility.”

Since the beginning of 2018, the Invesco fund has returned -1.83%, outperforming the Threadneedle fund (-8.03%) and the benchmark (-7.9%) and the peer average, according to FE Analytics.

Ng believes the fair value approach toward growth stocks accounts for the lower volatility of the Invesco fund. The stock selection capability in Greater China markets also added value to its year-to-date performance, he added.

As mentioned before, the Threadneedle fund, with a concentrated portfolio, is more volatile compared to the Invesco product, the benchmark and the sector over the trailing three-years.

Data: FE, in US dollar terms.

Additionally, the Threadneedle fund, launched in 2014, has a smaller AUM of about $6m. Last month, the Invesco fund merged into the firm’s Asian infrastructure fund. Its AUM therefore increased to $570.63m from roughly $150m.

Fund performance in calendar year

Data: FE, in US dollars.

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