Head To Head

HEAD-TO-HEAD: Fidelity versus T Rowe Price

FSA compares two technology equity products: The Fidelity Global Technology Fund and the T Rowe Price Global Technology Equity Fund.

by Francis Nikolai Acosta 19 June 202010 November 2020

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Darius McDermott, Chelsea Financial Services

Introduction

Technology stocks have outperformed their global peers this year. Year-to-date, the MSCI ACWI Information Technology Index is in positive territory at 10.46%, which compares with the -5.55% return of the MSCI ACWI Index, according to data from FE Fundinfo.

Asset and wealth managers have built the case for the sector since the coronavirus started to spread globally. For example, online platforms were expected to benefit from the lock-down measures imposed by different countries to contain the virus.

Indeed, technology funds have become popular. In Hong Kong, net inflows toward sector funds, including technology and healthcare products, doubled to $483m in March from the combined flows in January and February, according to data from the Hong Kong Investment Funds Association.

A similar trend was seen in Malaysia. While equity funds were largely avoided, investors poured money into technology products during the first quarter, according to data from Morningstar.

Against this backdrop, FSA asked Darius McDermott, managing director at Chelsea Financial Services, to compare two technology equity products: The Fidelity Global Technology Fund and the T Rowe Price Global Technology Equity Fund.

	Fidelity	T Rowe Price
Size	1999	2015
Inception	€6.62bn ($7.45bn)	$856.7m
Manager	Hyunho Sohn	Alan Tu
Three-year cumulative return*	73.07%	63.61%
Three-year annualised return**	18.97%	16.55%
Three-year annualised alpha**	2.43	0.88
Three-year annualised volatility**	22.25	22.32
Morningstar analyst rating	****	***
Morningstar star rating	Silver	Neutral
FE Crown fund rating	**	*
OCF	1.89%	1.87%

Source: FE Fundinfo, Morningstar Direct.

*16 June 2017 – 17 June 2020

**17 June 2017 – 12 June 2020

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