Posted inHead To Head, News

HEAD-TO-HEAD: Eastspring versus T Rowe Price

FSA compares two highly-rated European equity funds: the Eastspring Pan European Fund and the T Rowe Price European Equity Fund.
by Rupert Walker

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Conclusion

Meakin is a fan of both funds, especially in the current highly volatile market environment.

“Their commitment to quality companies with strong balance sheets should provide resilience during these uncertain times,” he said.

“Moreover, they are keeping cash in hand which will allow the managers to take advantage of attractive entry-points when valuations are especially depressed.”

The Eastspring fund has a lower Morningstar rating than the T Rowe Price product (three-stars compared with four-stars), but “that is not a true reflection of Olsen’s ability at the helm of the Eastspring fund, according to Meakin.

“The ratings are based on risk-adjusted returns over a 10-year period, but Olsen has been running the strategy for only 5.5 years,” he said, and added that Olsen ran a similar and very successful strategy at Danske for several years.

“The strong execution of a well-formed investment process makes the Eastspring fund an attractive offering for pan-European equity exposure, and we have a high degree of conviction in the manager’s approach and the level of detail in the team’s research,” said Meakin.

He is also impressed by Tenerelli.

“He has a sound investment approach that is executed well, and he is a manager with significant European equity investment experience at a strong parent firm,” said Meakin.

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