HEAD-TO-HEAD: Invesco vs JP Morgan
By Piotr Zembrowski, 12 Jan 18
FSA compares two Asia-Pacific mixed-asset funds: the Invesco Asia Balanced Fund and the JP Morgan Asia Pacific Income Fund.
Pictured above: Luke Ng, FE
Income-oriented funds remain popular among Asian investors, as a means to generate income in response to the ongoing low interest rate environment. While the growth-oriented investment style was increasingly popular in 2017, a substantial proportion of investors still look for income, according to Luke Ng, senior VP of research at FE Advisory Asia.
Funds investing in income-generating equities in developed markets can benefit from companies with long and stable dividend histories. However, those focusing on Asia can tap into dividend growth and a higher potential of capital growth, Ng told FSA.
Fixed-income sleeves of such funds can also benefit from relatively high-yielding Asian bonds as well as the low correlation of this asset class with equities and developed market bonds, Ng said.
Globally, mixed-asset funds, with $3.68trn of assets, constitute around 10% of AUM in collective investment vehicles (the number includes mutual funds and ETFs). They accounted for around 9% of estimated net flows into all products in 2017, according to data from Morningstar as of 30 November 2017.
Asia-Pacific mixed asset funds account for around 23% of all mixed-asset funds authorised for sale in Hong Kong, according to data from FE. Measured by assets under management, the Asia-Pacific funds constitute around 10% of the AUM in all mixed-asset funds. Notably the latter category includes global emerging market funds, many of which likely have a substantial allocation to Asia-Pacific.
Against this backdrop, FSA compares two Asia-Pacific mixed-asset funds: the Invesco Asia Balanced Fund and the JP Morgan Asia Pacific Income Fund.
Invesco Asia Balanced Fund
JP Morgan Asia Pacific Income Fund
22 September 2003
15 June 2001
Mike Shiao (since March 2017)
Ken Hu (since 2015)
|Jeffrey Roskell (since 2010)|
Julie Ho (since 2014)
Stephen Chang (since 2004)
Shaw Yann Ho (since 2014)
|FE Crown Fund Rating|
Data: FE, fund fact sheets