Fee review
The Invesco fund’s total expense ratio is 2.02%, consisting of a standard initial charge at 5.26% and an annual management charge of 2.02%.
In comparison, the JP Morgan fund’s total expense ratio is 1.8%. The fund’s standard initial charge is 5% with an annual management charge of 1.5%.
Ng said that both funds have charges are in line with market expectations and would not be a particular concern in terms of fund selection.
Conclusion
Ng said that the two funds appeal to different sets of investors.
He noted that given Shiao’s emphasis on entrepreneurs and transparency, investors seeking exposure to China’s private sector will find that the Invesco fund makes a strong investment proposition.
Ng however pointed out that patience is required from the investor’s part, given Shiao’s long-term focus.
For investors looking to capture cyclical opportunities, the JP Morgan fund will be a good fit, Ng said.
“The JP Morgan fund comes with higher volatility due to Wang’s style of opportunistic investing. While Wang may occasionally invest in deep value opportunities, the investor should be prepared for more frequent stock rotations [as compared to the Invesco fund],” Ng said.
