Posted inHead To Head

HEAD-TO-HEAD: JP Morgan vs Stewart Investors

FSA compares two global emerging market equity products: the JP Morgan Emerging Markets Equity Fund and the Stewart Investors Global Emerging Markets Leaders Fund.
by Fund Selector Asia
Performance

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The Stewart fund outperformed both the JPMorgan fund and the sector in 2015 until the first half of 2016, according to FE data. After that, both funds performed similarly, beating the sector.

According to Dorricott, the Stewart fund’s allocation to consumer staples has helped the fund achieve strong returns in 2015.

The inclination to invest in high-quality companies with strong brands added significant value over time and has helped the fund during market downturns, Dorricott said.

He added that the Stewart fund’s tracking error, when compared to the MSCI EM index, is higher than the JP Morgan fund as it is less diversified. Given that, the fund exhibits lower absolute risk levels or volatility.

For the JP Morgan fund, it was slightly behind the benchmark in 2015 because of underweightings to China and South Korea, plus an overweighting to South Africa, Dorricott said. However, its performance in 2016 has been very strong because of stock selection and country allocation.

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