Performance review
The performance of the two funds over various tenures until 30 June has been mixed, as can be seen in the table below.
The Allianz fund managed to outperform its benchmark, the CSI 300 index over a six-month period. Over a one-month period to 30 June, the fund showed a negative return, but the deviation downward of 7 basis points was more or less in line with the index.
The JP Morgan fund also posted a negative return over the one-month period to 30 June. But it was down 120 basis points more than its benchmark index, the MSCI China A. In the medium-term a similar trend is observed, as seen in the charts below.
Source: FE Analytics
Source: FE Analytics
Looking at calendar year performance, the Allianz fund has performed better in 2014 and year-to-date 2015 while the JP Morgan fund delivered stronger performance in 2012 and 2013, Ng pointed out.
Source: FE Analytics * On 21 July
“The JPMorgan fund has a stronger focus on new economy sectors including consumer discretionary, healthcare and technology, and these stocks had a strong run in 2012 and 2013,” Ng said.
“However, market rotation occurred in 2014 and old economy stocks came back strongly.
“The Allianz fund benefited more than the JP Morgan fund as the fund manager was quick to increase exposure in old economy sectors such as financials and industrials throughout 2014.”
Since the Allianz fund has the smaller AUM of the two, the fund manager has more flexibility to re-orient the portfolio, Ng added.
