The FSA Spy market buzz – 22 November 2024
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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.
INVESTMENT PROCESS
Both the FTS and IGW funds are aggressive mixed-asset products, in which at least 70% of their assets are invested in onshore Chinese equities, according to Li.
The FTS fund has 92% of its assets in equities, while the IGW fund has 88% invested in the asset class. Both portfolios are actively managed and have a preference for growth stocks.
However, Li noted there are differences in terms of their investment approach. For example, while both offerings focus on large stable companies, the FTS fund also invests a portion of its assets in “emerging growth” companies.
“The IGW fund tilts towards stable growth industries like home appliances, food and beverage, and healthcare. Although stable growth industries play an important role in the FTS fund, it also tends to hold more stocks in emerging growth sectors like communication and electronics than the IGW product,” Li said.
In addition, the FTS fund has a more diversified portfolio, holding 53 stocks, while the IGW fund is more concentrated with just 38 names, according to Li.
However, both of the funds’ top 10 holdings make up at least 50% of their portfolios, according to their fund factsheets.
Top 10 holdings
| FTS | IGW | ||
| Company | % | Company | % |
| Longi Green Energy Technology | 6.8% | Gree Electrical Appliances of Zhuhai | 7.90% |
| East Money Information | 6.2% | Kweichow Moutai | 7.00% |
| Contemporary Amperex Technology | 6.0% | Yixintang Pharmaceutical | 6.80% |
| Angel Yeast | 5.0% | S.F. Holding | 6.10% |
| Shenzhen Mindray Bio-Medical Electronics | 4.9% | Wuliangye Yibin | 5.70% |
| Bank of Ningbo | 4.9% | Luxshare Precision Industry | 5.40% |
| Lepu Medical Technology (Beijing) | 4.8% | Suofeiya Home Collection | 4.50% |
| Beijing Oriental Yuhong Waterproof Technology | 4.3% | WuXi Apptec | 4.30% |
| China Merchants Bank | 4.3% | Zhejiang Dingli Machinery | 3.60% |
| Shanghai M&G Stationary | 4.3% | Guangdong Hec Technology | 3.10% |
| % Top 10 | 51.56% | % Top 10 | 54.40% |
Source: Fund factsheets. As of the end of June.
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