Posted inHead To Head, News, Research

HEAD-TO-HEAD: Columbia Threadneedle vs Invesco

FSA compares the Invesco Asia Opportunities Equity Fund and the Threadneedle (Lux) Asian Focus Fund.
by Francis Nikolai Acosta

123456

Conclusion

When choosing between the two funds, Ng prefers the Invesco fund due to consistent performance and fund manager experience.

“The Invesco portfolio focuses on stocks with long-term growth and fair value. The fund also maintains lower volatility than the market.”

Ng noted that the Invesco fund is included in FE’s portfolio of 100 recommended mutual funds available to investors in Hong Kong.

The recommendation is made based on the FE Crown Rating, which takes into account the fund’s performance, consistency and risk control. Before making a decision on inclusion of a fund in the Top 100 list, the research also considers qualitative factors, such as management changes.

However, when considering the Invesco product, investors should bear in mind that the fund may underperform the market during a cyclical rally due to its large deviation from the benchmark in financial sector holdings.

If investors want more exposure to financials and other cyclical sectors, the Threadneedle fund is worth considering, Ng said.

Since inception, the fund has delivered a return close to the benchmark and peer funds. However, Ng noted that the return was generated with higher volatility than the broader market because of the concentrated portfolio.

123456

Related Stories

FSA SPY

The FSA Spy market buzz – 22 November 2024

Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.

Part of the Mark Allen Group.