HEAD-TO-HEAD: First State versus Invesco

123456

Manager review

The First State fund’s equity sleeve, which is the First State Asian Equity Plus Fund, is managed by Martin Lau, who has helmed the product since 2003, according to Nel.

Lau, who has been with the firm for 22 years, manages at least $20bn across a number of Greater China and Asia-Pacific mandates and is supported by an 18-member analyst team.

The product’s fixed income sleeve, the First State Asian Quality Bond Fund, has been managed by Nigel Foo since 2012. He has 20 years of investment management experience and is supported by co-managers Jamie Grant, head of Asian fixed income, and Nicole Hsieh, along with six analysts that are focused on Asia fixed income.

While Nel is positive on First State fund’s managers, he expressed some concerns over the Invesco product, noting several management changes since 2017.

Previously, the Invesco fund was managed by Andy Wong, who was replaced by Mike Shiao in 2017 as interim equity manager to introduce a more total-return approach and improve fund performance, according to Nel.

Lorraine Kuo took over the equity sleeve in 2018. Although she has been on the team since 2011 and has 16 years of investment management experience, this is her first stint as a portfolio manager.

“It has had three managers since 2017, so it adds to the instability. Although we see the change in the process as positive, we are keeping an eye on it to see whether Kuo will be able to implement this.”

The product’s fixed income sleeve is more stable, with Ken Hu running it since 2015. He has 24 years of experience and is also the firm’s head of Asia fixed income.

123456