Manager Review
The JP Morgan fund is co-managed by Jeffrey Roskell and Julie Ho, who are working together using the same strategy for the equity sleeve of the JPMorgan Asia Pacific Mixed Asset Income Fund, Ng said.
“It is a good mix between Roskell and Ho, as the two possess strong background in cyclical/value and defensive yield stocks, respectively.”
The Templeton fund is co-managed by the renowned emerging market investor Mark Mobius and Tom Wu, and they are supported by around 50 fund managers and analysts within the emerging markets group, Ng said.
“The Templeton fund has a very well-resourced team with strong expertise in the emerging markets, and they are traditionally less focused on the higher dividend areas.”
Fees
The latest OCF of the JPMorgan fund is 1.56%, lower than that of the Templeton fund of 2.25%, he said.
“The JP Morgan fees are lower than its peers and the Templeton fees are higher than its peers. Because the JP Morgan fund has a higher value of assets under management [of the two products], this has provided a good reason for the fund to maintain a lower OCF,” Ng said.
Conclusion
The choice between the two depends on investor appetite.
The JP Morgan team adopts a flexible strategy to move around cyclical and defensive stocks, an approach that has worked well through market cycles, Ng said.
“That explains why the JP Morgan fund has had better performance over the past few years. If we solely look at performance, I would recommend the JP Morgan fund,” he said.
The Templeton fund, by comparison, could be a consideration for investors with a longer-term horizon.
Because the portfolio is positioned for long-term returns, it takes time for the value of the underlying holdings of the fund to be fairly reflected, Ng said.
