Posted inHead To Head

HEAD-TO-HEAD: First State versus Schroders

FSA compares two Hong Kong equity products: the First State Hong Kong Growth Fund and the Schroders ISF Hong Kong Equity Fund.
by Francis Nikolai Acosta

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Fees

The First State fund’s retail share class has ongoing charges (OCF) of 1.62%, while the Schroder fund’s retail share class OCF is 1.84%, according to Share.

The First State fund is priced competitively, while the Schroders fund’s fees belong to the second-costliest quintile among Hong Kong equity funds covered by Morningstar. The peer median OCF for Hong Kong equity products is 1.84%.

Share noted that while the Schroders fund is expensive, she believes that the product can still deliver positive returns given the consistency of its process and fund manager.

“Even deducting relatively expensive fees from the return on the Schroders fund, we still expect a positive alpha from the fund given our [positive] conviction on its people and process,” she said.

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