The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
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% |
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
Part of the Mark Allen Group.