The FSA Spy market buzz – 19 April 2024
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HEAD-TO-HEAD: Invesco versus Pimco
FSA compares two investment grade fixed income products: the Invesco Global Investment Grade Corporate Bond Fund and the Pimco GIS Global Investment Grade Credit Fund.
Fees
It is important to take into account expenses, as they come directly out of returns, according to Morningstar.
The ongoing charges figure (OCF) for the retail share class available to Hong Kong investors of the Invesco fund is 1.02%, and is 1.39% for the Pimco fund, according to FE Fundinfo data. The median OCF for the US dollar fixed income category is about 1.20%.
“In a global perspective, the fee charged by Pimco is quite high, but for Hong Kong retail investors it is about average alright,” said Poole. “In addition, the Pimco fixed income managers have access to a highly effective central trading desk which successfully minimises portfolio transaction costs.”
The Invesco fee is lower than average, which is encouraging and appealing, said Poole.
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