Head To Head, News

HEAD-TO-HEAD: Fidelity vs JP Morgan AM

FSA compares two Asia-Pacific (including Japan) funds: the Fidelity Pacific Fund and the JP Morgan Pacific Securities Fund.

by Francis Nikolai Acosta 8 March 201910 November 2020

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Luke Ng, FE Advisory Asia

Introduction

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%

Source: FE Analytics, Morningstar

*4 March 2016 – 6 March 2019

**5 March 2016 – 1 March 2019

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