The FSA Spy market buzz – 6 September 2024
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
Investment approach
The T Rowe Price fund has been designed to do well in any market environment and, “since 2002 when David Eiswert took over its management, it has done just that,” said McDermott.
It can do particularly well in strong markets, but equally significant, it lost less than the peer average in down markets, he added.
“As with all T Rowe Price funds, the role of the analyst in seeking out the right investments for further scrutiny is a key driver, and Eiswert uses this resource really well to build a portfolio of their very best ideas,” according to McDermott.
“The result is a high-conviction portfolio of currently 74 stocks, with an emphasis on companies with stable-to-improving business fundamentals and prospects for accelerating returns on invested capital over a one-to-two year time horizon.”
The Pinebridge Global Focus Equity Fund aims to invest in companies that have growth potential and are reasonably priced.
“Like the T Rowe Price fund, it focuses on those with superior and sustainable earnings performance,” said McDermott.
The fund currently has a higher weighting to the US, the UK and France, but less exposure to China.
“It seems to be a ‘steady-eddy’ in rising markets, but last year was horrible. As the manager tenure is so short it is hard to see if these heavy falls in down markets may be repeated or if they were just one-off unlucky.”
Pinebridge |
T. Rowe Price |
|
Size |
$253m |
$1.51bn |
Inception |
2003 |
2003 |
Manager |
Robert Hinchliffe, Anik Sen |
David Eiswert |
Three-year cumulative return |
29.17% |
61.41% |
Three-year annualised return |
8.41% |
16.63% |
Three-year annualised alpha |
-1.62 |
5.65 |
Three-year annualised volatility |
12.34% |
13.22% |
Morningstar star rating* |
*** |
***** |
FE Crown fund rating |
* |
***** |
OCF (retail share class) |
1.95% |
0.92% |
Market Exposure:
Sector Weightings (31 May 2019)
Sector |
Pinebridge % |
T. Rowe Price % |
MSCI AC World % |
Communication services |
4.0 |
12.9 |
8.9 |
Consumer discretionary |
10.1 |
12.8 |
10.7 |
Consumer staples |
8.4 |
4.3 |
8.5 |
Energy |
2.2 |
0.8 |
6.0 |
Financials |
11.3 |
14.3 |
11.6 |
Health care |
16.3 |
14.5 |
11.4 |
Industrials |
16.6 |
6.4 |
10.4 |
IT |
30.1 |
24.2 |
15.7 |
Materials |
1.1 |
2.1 |
4.8 |
Real Estate |
– |
1.3 |
3.4 |
Utilities |
– |
4.2 |
3.3 |
Top 5 holdings (31 May 2019)
Pinebridge |
% weighting |
T. Rowe Price |
% weighting |
Alphabet |
5.74 |
Alphabet |
4.2 |
Honeywell |
4.70 |
|
4.2 |
Synopsys |
4.53 |
Essity |
3.0 |
AstraZeneca |
4.17 |
Sempra Energy |
3.0 |
Danone |
4.14 |
Amazon |
3.0 |
Geographical exposure (31 May 2019)
US |
Asia Pacific |
Europe (incl. UK) |
|
Pinebridge |
68% |
9% |
23% |
T. Rowe Price |
54% |
20% |
19% |
MSCI AC World |
55% |
17% |
17% |
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
Part of the Mark Allen Group.