Manager Review
The Fidelity fund is managed by Matthew Siddle, who looks for companies that he believes have attractive valuations and can grow their revenues in both bad and good market conditions, Ng said.
“While these characteristics are similar to the value and quality factors of the JPM fund, Siddle tends to ride on an unbiased investment framework that sets aside emotional or sentimental factors.”
The JPM fund is co-managed by John Baker, Jonathan Ingram and Anis Lahlou-Abid, who have been focusing on European equity investment throughout most of their careers in the asset management industry, Ng said.
Fees
The latest ongoing charges (OCF) of the Fidelity fund and the JPM fund are 1.92% (Class A Inc EUR) and 1.81% (Class A Dis EUR), respectively.
They are roughly in line with their peers, Ng said.
Conclusion
While the Fidelity fund is positioned better for investors who remain skeptical over the growth in the region, its stronger bias towards UK equities means that it could be exposed to higher volatility in the short-term in the wake of the Brexit referndum, he said.
By taking the momentum factor into account for portfolio construction, the JPM fund tends to suit investors who have stronger confidence in the European economic recovery, Ng said.
“We prefer the JPM fund more in the short term, as it is likely to be less affected by the Brexit news, due to its smaller exposure to the UK equities,” he said.
