Posted inHead To Head, News, Research

HEAD-TO-HEAD: First State vs Value Partners

FSA compares the First State Asian Equity Plus Fund and the Value Partners High-Dividend Stocks Fund
by Fund Selector Asia
Conclusion

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While Ng would not comment on whether he prefers one fund over the other, he said both funds are currently included in the FE Advisory 100 recommended fund list, meaning that they are reliable investment funds.

He said investors should consider the two different investment strategies for the dividend funds.

“The First State fund invests mainly in quality stocks with a longer-term perspective while the Value Partners fund gives exposure to stocks that trade at discount against their intrinsic value.”

For investors who prioritise downside protection over a high dividend payout, the First State fund could be a consideration, Ng said.

The First State product also has the lower volatility of the two and it has generated consistent outperformance among peer funds.

However, if earning a higher income is the top priority for an investor, the Value Partners fund, generating a 4% yield, would be a good consideration.

Before making an investment decision, investors should also be aware of fees as the Value Partners’ fund charges an ongoing fee as well as a performance fee. Ng said investors should familiarise themselves with the conditions of the performance fee.

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