The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
HEAD-TO-HEAD: Morgan Stanley IM versus Pictet AM
FSA compares two global equity funds that focus on leading brands: the Morgan Stanley Global Brands Fund and the Pictet Premium Brands Fund.
Fees
The ongoing charges fee (OCF) for the Hong Kong retail share class of the Morgan Stanley fund is 1.65%, which is lower than the 1.70% median for its international equity fund peer group.
The Pictet fund’s annual expenses are higher at 2.00%, which is slightly more than the median 1.95% OCF for its FE Fundinfo designated consumer goods and services equity category.
“Neither fund is cheap, but performances after fees have been very good,” said McDermott.
Fees matter, not just on a relative basis, but because they affect fund performance, according to Morningstar.
It published a paper in 2016 that found that “the expense ratio is the most proven predictor of future returns” for any fund. Earlier this year, Morningstar has started using a new evaluation framework that places a greater emphasis on fees and benchmark-relative performance than previously.
Related Stories
Promoted Content
-
China’s post-pandemic growth gathers pace
-
China bonds: plugging the yield gap
-
M&G Episode Macro shines after tough year
-
The year of living dangerously for income investors
-
Investors turn to real estate for alternative income
-
Your Questions Answered by Federated Hermes Impact Opportunities
-
How ETFs offer an active way to drive sustainable returns
-
Accessing Asian 5G innovation: three key portfolio themes
-
Dynamism is the name of the game for this global macro strategy
-
Riding the wave of alternative income amongst HNWIs in APAC
