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 Schroders
FSA compares the Invesco Euro Corporate Bond Fund with the Schroder ISF Euro Corporate Bond Fund.
Conclusion
While both corporate euro bond funds can be a core part of a portfolio, there are differences that a potential investor should be aware of, Dash said.
“The Invesco fund is active in moving duration [compared to its reference index],” he said. Short duration negatively affected its performance in the past. The fund also tends to carry more pronounced bias toward sectors, which may make it more volatile.
The Schroders fund stays closer to its benchmark in terms of duration and overall exposure, while outperforming it thanks to the bottom-up security selection.
If an investor wants a fund that stay closes to the benchmark but has the potential to generate additional alpha, the Schroders fund would be a better consideration, said Dash.
“If you want a more total-return, slightly punchier fund, then it would be better to look at the Invesco fund,” he added.
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