HEAD-TO-HEAD: JP Morgan vs Stewart Investors

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The JP Morgan fund receives a Morningstar analyst rating of Bronze and a three-star rating, while the Stewart fund receives a Morningstar analyst rating of Bronze and a five-star rating.

Morningstar’s analyst rating is a forward-looking analysis of a fund, while the star rating looks at historical risk-adjusted performance.

Analysts assign the analyst rating on a five-tier scale with three positive ratings of Gold, Silver, and Bronze, a Neutral rating, and a Negative rating. A Gold, Silver, or Bronze rating means Morningstar analysts think highly of the fund and expect it to outperform over a full market cycle of at least five years. 

Dorricott declined to say which fund he prefers, adding that both funds are similar.

However, he said that both funds have different risk and volatility profiles and may be suitable for different investors depending on risk appetitie.

The JP Morgan fund would be more suitable for investors who prefer volatility that is close to the benchmark MSCI EM Index.

For the Stewart fund, investors would have to be more aware of where it is investing, given its more extreme bias to quality, Dorricott said. The fund could be more volatile when compared to the MSCI EM Index.

However, in absolute terms, the fund has lower volatility and beta than the JP Morgan fund.

“It depends whether you are looking at a benchmark comparison or are more concerned about absolute risk,” he said.

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