Posted inHead To Head

HEAD-TO-HEAD: Tianhong vs JP Morgan

FSA compares the world’s two largest money market funds: Tianhong’s Yuebao and JP Morgan’s US government fund.
by Francis Nikolai Acosta
Yields and fees

1234

The yields of both funds for the period Jan 2016-Oct 2017, according to Fitch Ratings

Yuebao is denominated in RMB and the JPM fund is denominated in US dollars.

The yield for the Yuebao is significantly higher than the JP Morgan fund, although both are seeing increasing yields.

In October 2017, Yuebao was yielding around 4% while the JPM vehicle yielded 1%.

According to Fitch, bond yields are, in general, structurally higher in China than in the US because of China’s underlying economic growth and central bank rates.

Meanwhile, US money market fund yields have also been increasing as the US Fed has been raising interest rates.

In terms of fees, Yuebao’s are higher compared to JPM, according to Li.

The Yuebao fund’s management fee is 0.3%. It addition, it has a custodian fee of 0.08% and a distribution service fee of 0.25%, she added.

The JPM fund has a management fee of .03%, with a cap on expenses of 0.18%.

1234

Related Stories

FSA SPY

The FSA Spy market buzz – 6 June 2025

Animal spirits run wild; Franklin Templeton is taking credit; EM banking revolution; Not all luxury is equal; Death of search and the AI machine; George Soros on wins and much more.

Part of the Mark Allen Group.