Asia-Pacific equity funds that include Japan are less popular than Asia-Pacific (ex-Japan) funds, according to Luke Ng, vice president at FE Advisory Asia.
“Investors see Japan as a separate market, especially since more countries in the region are emerging markets, while Japan is a more developed country,” he explained.
In Hong Kong, there are only 15 Asia-Pacific (including Japan) SFC-authorised mutual funds, which compares to the 119 Asia-Pacific (ex-Japan) products available, according to data from FE Analytics.
However, Ng believes that adding Japan may help diversify an investor’s Asia-Pacific equities portfolio.
“Japan relatively has less growth from a macro point of view, but there could be parts of the market that are less researched, which provides managers with stock-picking opportunities,” he said.
Against this backdrop, Ng compares two Asia-Pacific (including Japan) funds: the Fidelity Pacific Fund and the JP Morgan Pacific Securities Fund.
|
Fidelity Fund |
JPM Fund |
|
| Size |
$2.1bn |
$568.6m |
| Inception |
1994 |
1978 |
| Manager |
Dale Nicholls |
Aisa Ogoshi, Robert Lloyd |
| Three-year cumulative return* |
30.12% |
49.07% |
| Three-year annualised return** |
8.83% |
14.06% |
| Three-year annualised alpha** |
-0.71% |
4.12% |
| Three-year annualised volatility** |
13.63 |
13.3 |
| Morningstar analyst rating |
Silver |
Bronze |
| Morningstar star rating |
**** |
***** |
| FE Crown fund rating |
** |
**** |
| OCF |
1.92% |
1.67% |
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