Posted inHead 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

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The Fidelity and the JP Morgan funds versus their benchmark indices, according to FE data.

Performance

In the last three-five years, the JP Morgan fund has performed better than the Fidelity fund, according to Ng.

“But if you look at the Fidelity fund, it has largely outperformed on a 10-year period,” he said.

Cumulative returns (%)

Fund / benchmark

3 years

 5 years

10 years
Fidelity Pacific

28.66%

 21.71%

322.83%
Index : MSCI AC Pacific

36.90%

 30.68%

188.86%
JPMorgan Pacific Securities

49.46%

 43.76%

222.08%
Index : MSCI AC Asia Pacific

36.92

 31.15%

190.17%
Source: FE Analytics. Ending 7 March 2019

Ng explained that the JP Morgan fund performed better in the medium term because of the strong performance of growth stocks in the past few years.

“The key is 2017 and 2018, when performance was led by growth and large-cap companies, which largely benefitted the JP Morgan fund,” he said.

Discrete annual returns (%)

Fund / benchmark

YTD 2019

 2018 2017 2016 2015

2014
Fidelity Pacific

13.27

 -19.44 33.95 3.99 -0.11

1.92
Index : MSCI AC Pacific

9.44

 -13.58 31.76 5.55 -1.50

-0.56
JPMorgan Pacific Securities

9.92

 -12.71 39.32 5.00 3.43

-3.55
Index : MSCI AC Asia Pacific

8.95

 -13.25 32.04 5.21 -1.68

0.29
Source: FE Analytics

Ng noted that although the Fidelity fund did not perform as strongly in the mid-term, it has mostly outperformed its benchmark every year.

“The Fidelity fund was able to add value by picking undervalued stocks in the small- and mid-cap space,” he said.

In terms of volatility, Ng said that although both funds are different, they both have higher volatility than their respective benchmarks.

Three-year annualised volatility

Fund / Index

Volatility
Fidelity Pacific

13.63
     Index: MSCI AC Pacific

12.78
JPMorgan Pacific Securities

13.3
     Index: MSCI AC Asia Pacific

12.78
Source: FE Analytics

 

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