Posted inHead To Head, ESG

HEAD-TO-HEAD: JP Morgan vs Robeco

FSA compares the JP Morgan Asia Equity Dividend Fund with Robeco Asian Stars Equities Fund, which incorporates ESG in its process.
by Fund Selector Asia
Performance

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JP Morgan Asia Equity Dividend Fund Robeco Asian Stars Equities Fund
3-yr return (ann.) 5.76% 3.98%
1-yr return 11.22% 19.81%
Dividend Yield 4.56% 2.6%*
Alpha 3.28 1.08
Beta 0.84 1.10
Information ratio 0.66 0.22
Sharpe ratio 0.19 0.03
Positive/negative periods (monthly, 3 yr) 18/18 20/16
Data: FE, fund fact sheets, as of 31 March, 2017.
*Portfolio dividend yield. The fund doesn’t distribute dividends.

Due to the focus on dividend yield and value, the volatility and beta of JP Morgan is lower than that of the market, while the dividend yield is higher.

Robeco’s dividend yield is slightly lower than the market’s, while volatility and beta are similar to those of the market.

The JP Morgan fund’s earnings growth is below the market because the companies are mature, noted Ng.

Among the two funds, the JP Morgan product outperformed in 2014 and 2015, but so far in 2017, Robeco performed better. This has been partly due to the rebound of Asian currencies, Ng said. Due to currency hedging, the JP Morgan fund did not benefit from the move. Hedging, however, worked to the fund’s advantage in 2013 and 2014, when Asian currencies declined versus the US dollar.

In 2016, JP Morgan fund performance was boosted by overexposure to Thailand, in particular Bangkok Bank, Ng said.

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