The FSA Spy market buzz – 3 May 2024
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Asia-Pacific equity funds that include Japan are less popular than Asia-Pacific (ex-Japan) funds, according to Luke Ng, vice president at FE Advisory Asia.
“Investors see Japan as a separate market, especially since more countries in the region are emerging markets, while Japan is a more developed country,” he explained.
In Hong Kong, there are only 15 Asia-Pacific (including Japan) SFC-authorised mutual funds, which compares to the 119 Asia-Pacific (ex-Japan) products available, according to data from FE Analytics.
However, Ng believes that adding Japan may help diversify an investor’s Asia-Pacific equities portfolio.
“Japan relatively has less growth from a macro point of view, but there could be parts of the market that are less researched, which provides managers with stock-picking opportunities,” he said.
Against this backdrop, Ng compares two Asia-Pacific (including Japan) funds: the Fidelity Pacific Fund and the JP Morgan Pacific Securities Fund.
Fidelity Fund |
JPM Fund |
|
Size |
$2.1bn |
$568.6m |
Inception |
1994 |
1978 |
Manager |
Dale Nicholls |
Aisa Ogoshi, Robert Lloyd |
Three-year cumulative return* |
30.12% |
49.07% |
Three-year annualised return** |
8.83% |
14.06% |
Three-year annualised alpha** |
-0.71% |
4.12% |
Three-year annualised volatility** |
13.63 |
13.3 |
Morningstar analyst rating |
Silver |
Bronze |
Morningstar star rating |
**** |
***** |
FE Crown fund rating |
** |
**** |
OCF |
1.92% |
1.67% |
Catholic principles investment, Brown Advisory and ESG, Robotics and automation fun, China’s little bounce, Frontier investing excitement, Zero downside in wonderland, Bambu’s demise and much more.
Part of the Mark Allen Group.