Posted inHead To Head

HEAD-TO-HEAD: Fidelity versus Schroders

FSA compares two China equity products: the Fidelity China Focus Fund and the Schroder ISF China Opportunities Fund.
by Rupert Walker

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Fees

 

“It’s critical to evaluate expenses, as they come directly out of returns,” said Share.

The ongoing charges figure (OCF) for the Fidelity fund is 1.91%, which is about the same as the 1.90% median for the Hong Kong retail share classes of China equity funds, according to FE Fundinfo data.

“That’s not great, but based on our assessment of the fund’s other characteristics, we think this share class will still be able to deliver positive alpha relative to the category benchmark index, explaining its Morningstar analyst rating of bronze,” said Share.

The Schroder fund’s OCF of 1.84% is slightly lower than the sector median, but again could be reduced, according to Share.

“Nevertheless, investors should still benefit from alpha generation considering the quality of the fund’s manager and strategy, so we have assigned the fund an analyst rating of gold,” said Share.

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