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
Conclusion

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FE crown rating (JP Morgan: 5, Robeco: 2) takes into account the three-year return of the fund, alpha, volatility and consistency.

“The JP Morgan fund performed better relative to the market and it had better alpha,” said Ng. “At the same time, the volatility is the lower of the two.”

The fund is also rated higher by Morningstar (four stars vs Robeco’s three).

The JP Morgan fund tends to better suit the needs of investors who require a higher income stream and who desire better downside protection. “It delivers a good risk-adusted return,” said Ng.

The Robeco fund is more focused on value, but it also is positioned to benefit more from the growth of the region, the main driver being Asia’s growing consumer consumption.

Ng said that the fund would be more suitable for an investor who was less risk-averse and looking for growth.

Of the two funds, the JP Morgan product is Ng’s preferred choice due to what he said is a solid track record of outperformance attributed to allocation and stock selection. Ng did acknowledge that the manager’s consistent currency hedging policy may leave the fund behind the market when Asian currencies do well.

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