Posted inHead To Head

HEAD-TO-HEAD: Fidelity versus JP Morgan

FSA compares two emerging market equity products: the Fidelity Emerging Markets Fund and the JP Morgan Emerging Markets Equity Fund.
by Michelle Ng

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Introduction

Emerging markets are facing severe headwinds in 2022, ranging from the strong US dollar, high inflation and tightening monetary policies.

The MSCI Emerging Markets index has plunged 27.53% year to date, while the MSCI World index has dropped 19.78% over the same period.

Poor financial conditions have prompted investors to shy away from the asset class, leading to emerging market equities being valued cheaper compared with the S&P 500 and developed markets.

As a result of these attractive valuations, some asset managers such as BNP Paribas and Pictet have their eyes on the market now.

BNP Paribas told FSA that it believes Asian and EM equities have now priced in much of the weaker global conditions, with current earnings per share estimates for 2023 above those for 2022.

Pictet AM is also confident in the outlook for emerging markets in 2023 as they benefit from higher private sector savings as well as more tepid credit growth recently.

Against this background, FSA asked Louise Liu, investment strategist at Oreana Financial Services, to select two emerging market equity funds for comparison.

She chose the Fidelity Emerging Markets Fund and the JP Morgan Emerging Markets Equity Fund.

Both funds are available to Hong Kong and Singapore retail investors.

The JP Morgan fund is the largest fund under the emerging markets equity category in FE Fundinfo, while the Fidelity fund is the third largest fund under the same category.

 

Fidelity

JP Morgan
Size

$3.30bn

$6.70bn
Inception

2006

2005
Managers

Nick Price, Amit Goel

Leon Eidelman, Austin Forey
Three-year cumulative return

-6.96%

-6.58%
Three-year annualised return

-7.57%

-7.05%
Three-year annualised alpha

-1.96

-1.53
Three-year annualised volatility

22.88%

22.62%
Three-year information ratio

-0.41

-0.32
Morningstar star rating

***

****
Morningstar analyst rating

Bronze

Bronze
FE Crown fund rating

**

**
OCF (retail share class)

1.91%

1.72%
Source: FE Fundinfo, Morningstar. (Data in US dollars, 30 September 2020)

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