The FSA Spy market buzz – 13 December 2024
M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.
HEAD-TO-HEAD: Invesco vs Pictet AM
FSA compares two Japanese equity funds: the Invesco Japanese Equity Advantage Fund and the Pictet Japanese Equity Selection Fund.
Conclusion
FE Analytics has given the Invesco fund a five-crown rating, while the Pictet fund receives three crowns.
The crown-rating methodology assesses the fund’s alpha, volatility and consistency of performance.
Ng prefers the Invesco fund, noting that it is one of the Japanese equity funds that FE Analytics is recommending to its clients.
“We believe that the strategy would be good for long-term opportunities in Japan. It is a low-turnover, high conviction product, with a manager that has a long-term track record of successfully managing the fund,” he said.
He added that investors can use the product as core Japan exposure, especially since it has been resilient to changing market conditions.
That said, Ng believes that there is a place for the Pictet fund in investors’ portfolios, especially if they make a call that value stocks will outperform in a given period of time.
“They can use the Pictet fund as a tactical move if they believe there will be a rotation and value stocks will go up.”
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