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HEAD-TO-HEAD: Alliance Bernstein vs JP Morgan

FSA compares two emerging market equity products: the AB Emerging Markets Growth Portfolio and the JP Morgan Emerging Markets Equity Fund.

by Fund Selector Asia 2 February 20182 August 2022

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The three-year performance of the two funds versus the category average, in US dollars. Data: FE.

Because of the more aggressive approach, the JP Morgan fund tends to perform better than the AB fund when markets rise, but in a downturn, the AB fund would show a better performance.

In particular, the AB fund outperformed the JP Morgan fund each calendar year from 2012 to 2015, while the funds’ fortunes reversed in 2016 and 2017.

Calendar year performance

	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
AB	-56.88	72.15	13.65	-25.01	19.14	1.48	1.49	-11.27	6.53	36.14
JP Morgan	–52.74	70.02	17.90	-18.99	17.34	-5.21	-1.39	-16.31	13.57	41.82
MSCI EM	-53.18	79.02	19.20	-18.17	18.63	-2.27	-1.82	-14.60	11.60	37.75

Data: FE, returns in US dollars

The key factor in performance attribution for the JP Morgan fund is the stock selection, according to Ng. In particular, the stock selection in China was the top positive contributor to the fund’s outperformance in 2017.

Over the past three years, the AB fund showed a higher alpha, a lower beta and a lower volatility than the JP Morgan fund.

	AB	JP Morgan	MSCI Emerging Markets
3-year return (cumulative)	36.28%	42.85%	40.6%
1-year return	37.45%	45.98%	40.71%
3-year Alpha	2.0	1.96
3-year Beta	1.03	1.14
3-year Sharpe Ratio	0.52	0.54	0.55
3-year Volatility	15.81	17.04	16.81

Data: FE, returns in US dollars, ratios are annualised

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