Posted inHead To Head

HEAD-TO-HEAD: Fidelity vs JP Morgan

FSA compares two Asean equity funds: the Fidelity Asean Fund and the JP Morgan Asean Fund.
by Francis Nikolai Acosta
Asean equity funds

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Pictured: Mark Laidlaw, senior analyst at Morningstar

Asean-focused equity funds account for a small portion of the total number of Asia-Pacific ex-Japan equity funds. In Hong Kong, only seven Asean equity funds are available for sale to investors, out of the total 124 Asia-Pacific ex-Japan equity funds, according to FE data.

Asean funds invest in Southeast Asian markets such as Singapore, Malaysia, Philippines, Indonesia and Thailand.

The small number of Asean equity funds could indicate the low level of demand for these highly-focused products, according to Mark Laidlaw, a senior analyst at Morningstar.

“Most people just take their exposure to a broader Asian equity fund, which can still provide some Asean exposure,” he said.

He added that the Asean region could sometimes be more volatile than the broader Asian region. However, despite higher risk, Asean markets could also provide higher returns than those offered by more developed markets in the region.

Some investors are comfortable with that risk and use Asean equity funds to boost returns of their portfolios, he said.

Against this backdrop, FSA compares two funds in this sector: the Fidelity Asean Fund and the JP Morgan Asean Fund.

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