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HEAD-TO-HEAD: Capital Group versus JP Morgan

FSA compares two mixed asset products: the Capital Group Global Allocation Fund and the JP Morgan Global Income Fund.
by Rupert Walker

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Conclusion

The Capital Group Global Allocation Fund “impresses with a seasoned management team, a proven approach, a parent company that is an excellent steward for investors, excellent returns from the equity strategies, and not least, its below-average fees” said Claus.

“In fact, the fund ticks all the right boxes and earns our highest Morningstar analyst rating of gold,” she said.

The JP Morgan Global Income Fund’s strategy has evolved, and its long-standing process, strong lead portfolio managers, and low fees preserve its edge over its peers and earn it a Morningstar analyst rating of bronze, according to Claus.

“However, portfolio manager turnover has been high recently. These disruptions have the potential to strain the managers’ (Schoenhaut and Bernbaum) resources, because they are responsible for hedging out underlying sector bets that don’t align with JPMorgan’s tactical allocation model,” she said.

“Nevertheless, the pair has proven capable of buffering investors from the worst impacts of personnel churn,” she added.

Claus prefers the Capital Group fund, although acknowledges that the JP Morgan strategy is a “good option for yield-seekers with healthy risk appetites”.

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