The FSA Spy market buzz – 24 March 2023
Bitcoin rolling futures, new fund pricing models gather pace, greenbleaching, sustainable bonds (not), thematic investing at the top; consultant jokes, Munger’s wisdom and much more.
The Fidelity fund’s clean share class has ongoing charges (OCF) of 1.08%, while the Mirae fund’s clean share class OCF is 0.98%.
Both are competitively priced when compared to their peers, according to Daniels. The peer median OCF for the clean share class is 1.1%.
Turning to the retail share classes, the Fidelity fund’s OCF is 1.93%, while the Mirae fund’s OCF is 1.73%. The Fidelity fund is more expensive than its peers, with the peer median OCF at 1.83%.
Daniels believes that Fidelity’s higher fees are justifiable, given that the fund has been consistent with its process and performance.
“That said, we think they could rather do a better job of sharing economies of scale with investors and we hope that they will start doing that.”
Part of Mark Allen.