facebookAny thoughts on the following two funds: 1. Janus Henderson Global Property Equities SGD Fund 2. Schroder ISF Emerging Markets USD Fund? - Seedly

Any thoughts on the following two funds: 1. Janus Henderson Global Property Equities SGD Fund 2. Schroder ISF Emerging Markets USD Fund?

I'm looking to diversify my portfolio with property and emerging markets, should I be considering these 2 funds? any pros and cons?

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  1. Janus Henderson

Typical example of overpriced and not outperforming actively managed mutual fund.

The factsheet https://cdn.janushenderson.com/webdocs/PPGBEF_L...

mentions a super-high annual fee (TER) of 1.88%, plus dependent on Your broker

an initial 5% sales charge that You will never see again.

There is no evidence that this product has a better performance than a cheap global passively managed REIT ETF like f.ex. iShares Global REIT ETF (ticker: REET).

  1. Schroder: https://www.schroders.com/getfunddocument/?oid=1.9.456&oid=1.9.456

Same super-high TER of 1.86% per Year, sales charge not mentioned.

Longterm performance (10 years):

The fund underperformed it's own defined benchmark (MSCI EM NR) over that period:

38% (fund) versus 43.5% (benchmark index).

Here for comparison just two examples of cheap and large emerging markets ETFs:

  • VWO: Vanguard FTSE Emerging Markets ETF

  • TER = 0.12% per year, 10 year total performance = 50.3%

  • SPEM: SPDR Portfolio Emerging Markets ETF

  • TER = 0.11% per year, 10 year total performance = 57.2%

Your two typical examples are evidence to the fact that nowadays (as compared to ETFs) mutual funds/unit trusts are almost generally overpriced plus underperforming.

You'd better buy large and cheap ETFs of Your selected sectors.

You may consider reading more on my general thinking:

https://seedly.sg/questions/what-is-your-genera...

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