HEAD-TO-HEAD: Fidelity vs JP Morgan AM

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Conclusion

FE Analytics has given the Fidelity fund a two-crown rating, while the JP Morgan receives five-crowns.

The crown-rating methodology assesses the fund’s alpha, volatility and consistency of performance.

Ng explained that the JP Morgan fund has a higher crown rating as FE’s crown-rating methodology is based on a three-year historical period. The JP Morgan product is also included on the FE Advisory top 100 list, which includes products that the firm recommends to its clients.

However, Ng noted that JP Morgan’s higher crown rating does not mean investors should exclude consideration of the Fidelity fund.

“I don’t have a clear preference between the two products because both are backed by strong managers and teams, with a consistent methodology and investment process. It really depends on the market situation.

“The Fidelity fund has also consistently delivered value, it’s just that the JP Morgan Fund, in addition to good stock selection, was able to benefit from the performance of growth and large-cap stocks in the past few years.”

Ng added that the choice between the two depends on what investors are seeking.

For investors who are looking for a “core” Asia-Pacific fund, he believes that the JP Morgan fund is a consideration because it holds most of the large-cap constituents found in the index.

“They are holding most of them, although the weightings against the benchmark are different. That is how they add value,” he said.

Meanwhile, the Fidelity fund, with its huge allocation to small caps, is worth considering by investors who want exposure to opportunities that are generally ignored by the market.

“If you also believe that large caps are expensive at the moment and that value will outperform growth, the Fidelity fund would be worth a closer look,” he added.

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