The FSA Spy market buzz – 8 December 2023
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HEAD-TO-HEAD: Fidelity versus First State
FSA compares two Asia ex-Japan equity products: the Fidelity Asia Focus Fund and the First State Asian Equity Plus Fund.
FEES
Fees tend to be higher for fund categories that have less brokerage coverage and require more resources for research and analysis at the country, sector and stock levels.
Despite their inclusion in global portfolios, Asia ex-Japan equities still lack the comprehensive coverage enjoyed by categories such as US large-cap equities, largely because of the sector’s emerging market component.
“However, the comparative paucity of information means that there is more potential for generating alpha,” said Poole.
Fees for the retail share class of Asia ex-Japan equities funds in Hong Kong and Singapore range from as high as 3.18% to a low of 1.11%, with a median ongoing charges figure (OCF) of 2.10%, according to FE Fundinfo data.
The OCF’s of the Fidelity and First State products are both lower than the median, at 1.93% and 1.58% respectively.
“Both the Fidelity and First State funds have managers with proven ability to generate incremental returns, and investors are getting value for money,” said Poole.
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