Head To Head

HEAD-TO-HEAD: Franklin Sealand versus Invesco Great Wall

FSA compares two onshore mixed-asset products: The FTS China Prospect Mixed Assets Fund and the Invesco Great Wall Core Competence Mixed Securities Fund.

by Francis Nikolai Acosta 14 August 202011 August 2022

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Li Yiming, Morningstar

INTRODUCTION

With China being the first economy to lift lockdown measures in the world, its equities market has outperformed globally, with the CSI 300 Index returning 15.6% versus the MSCI ACWI 2.5% performance, according to data from FE Fundinfo.

“Most economic activities began to show signs of recovery since March 2020, on the back of successful containment measures and supportive policies. As such, we expect the Chinese economy to continue to normalise [to 3% GDP growth] over the course of the year,” Michelle Qi, chief investment officer for equities at Eastspring Investments, told FSA recently.

Asia-based fund selectors are also positive on the asset class, with 60% of them indicating that they will be buying China equities in the next 12 months, according to Last Word Media research.

However, risks continue to loom the asset class, including weak global demand for Chinese exports and the danger that US-China tensions might escalate and extend beyond trade, Eastspring’s Qi said.

Against this backdrop, FSA asked Li Yiming, Shenzhen-based senior manager research analyst at Morningstar, to compare two onshore aggressive mixed-asset products: The Franklin Templeton Sealand (FTS) China Prospect Mixed Assets Fund and the Invesco Great Wall (IGW) Core Competence Mixed Securities Fund. Both products are available in Hong Kong via the MRF scheme.

	FTS	IGW
Size	RMB 2.18bn ($310m)	RMB 2.24bn ($320m)
Inception	2007	2011
Manager	Xu Lirong	Yu Guang
Three-year cumulative return	76.67%	38.24%
Three-year annualised return	21.81%	12.17%
Three-year annualised alpha	11.75	3.78
Three-year annualised volatility	22.52	25.05
Morningstar analyst rating	not disclosed
Morningstar star rating	****	***
FE Crown fund rating	*****	****
OCF	1.76%	1.75%

Source: Morningstar, FE Fundinfo

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