The FSA Spy market buzz – 28 March 2025
JP Morgan Asset Management gets enhanced; Thailand wants some leverage; Natxis is surveying the world; A billionaire here, another there; Business social media lunacy; Andrew Carnegie’s wisdom and more.
HEAD-TO-HEAD: Blackrock vs JP Morgan AM
FSA compares two global emerging market equity products: the BGF Emerging Markets Fund and the JP Morgan Emerging Markets Equity Fund.
Conclusion
The Blackrock fund receives a five-star Morningstar rating and an analyst rating of Bronze, while the JP Morgan product has a five-star rating and a (higher) Silver analyst rating.
Morningstar’s star rating looks at historically-adjusted performance and the analyst rating is based on forward-looking analysis.
Daniels did not say which fund he prefers, but instead pointed to their analyst ratings. While Daniels has high conviction that both products will beat their benchmarks and peer average long-term, the JP Morgan fund has been rated higher than the Blackrock fund.
“The funds’ ratings clearly centre on the difference between their process scores. In that area, JP Morgan scored higher because the strategy is more clear and can be replicated. For an investor, it has a more predictable performance profile.
“If the Blackrock manager were to leave, we would have to re-visit the fund’s rating as it is difficult to replicate his approach of success.”
That said, Daniels believes that investors who are looking for a style-agnostic emerging markets strategy should consider the Blackrock fund.
Regardless if the market environment favours growth or value stocks, the Blackrock fund has the better potential to outperform in both, he said.
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