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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Conclusion

The First State fund receives a five-star Morningsar rating and an analyst rating of Gold, while the Schroders fund has a four-star rating and a Bronze analyst rating.

Morningstar’s star rating looks at historically risk-adjusted performance and the analyst rating is based on forward-looking analysis.

Share prefers the First State fund, pointing to the fund’s Gold rating, which is the highest analyst rating Morningstar can give.

“It has the highest rating given the competitive advantage of its process and team and our conviction that the fund will outperform its benchmark and peers long-term,” Share said.

That said, Share noted that the Schroders fund’s Bronze rating is also high, which means that Morningstar believes the fund will beat its benchmark and peers.

“It also depends on the investor’s preference and what kind of offering they are looking for.

“The Schroders fund has more of the Hong Kong flavour stocks, and investors who would like to own those traditional blue-chip names should consider the product,” she said.

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