Posted inHead To Head, News, Research

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
Conclusion

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While the JP Morgan strategy may appear more risky, considering its higher beta and volatility, Ng noted that it was a higher active risk. “The fund managers make stronger bets so that they can outperform the market,” he said.

Both funds are managed by high-quality, experienced teams, so an investor’s decision to choose one of them would have to be based on their outlook on emerging markets, Ng said.

“If the growth trend continues, the JP Morgan fund would probably serve better due to more active positioning in the growth area of the market.”

However, in case of a downturn, the JP Morgan fund stands to experience higher losses than the AB fund, although the emphasis on quality should cushion them.

Ng said the AB fund would be a good choice for cautious investors who want to reduce losses in a possible market downturn.

On the other hand, investors convinced of the long-term trend of emerging markets gaining a bigger role in the global economy should choose the JP Morgan fund because of its stronger focus on growth, Ng said.

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