HEAD-TO-HEAD: Invesco vs JP Morgan

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The Invesco fund underwent a recent change in management. Mike Shiao stepped into the role of equity manager on an interim basis on 15 March 2017, while Ken Hu assumed his role as fixed income manager in 2015.

Shiao is the CIO of Asia ex-Japan equities at the firm and manages several other funds. He intends to find a permanent replacement for the equity manager for the fund by mid 2018, according to a July 2017 Morningstar fund report.

Shiao is a Greater China specialist and this has reflected in the fund’s higher equity allocation to China. He delegates the management of other country exposures to other specialists on his investment team, according to Ng.

“Shiao tends to invest in companies that the market is undervaluing,” Ng said, noting that the value approach is inconsistent with the income-generating mandate of the fund. “He is a very good quality manager, but his expertise may not be in the dividend strategy.”

The JP Morgan fund is managed by a team of four co-managers. Jeffrey Roskell, who is head of the income strategy within the emerging markets and Asia-Pacific equities team, is responsible for the equity sleeve of the portfolio. Stephen Chang, head of Asian fixed income team within the global fixed income, currency and commodities group, is in charge of the fixed income sleeve. High level asset allocation decisions are made jointly by both of them.

Julia Ho supports Roskell and Shaw Yann Ho supports Chang.

“The four managers have quite a good mix,” Ng said. “Roskell has a stronger focus on cyclical stocks, while Julia Ho has a stronger focus on defensive, based on previous experience.

“On the fixed income side, Shaw Yann Ho has a stronger focus on credit, while Chang has a stronger focus on currency and rates,” Ng added.

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