The FSA Spy market buzz – 6 June 2025
Animal spirits run wild; Franklin Templeton is taking credit; EM banking revolution; Not all luxury is equal; Death of search and the AI machine; George Soros on wins and much more.
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.
Fees
The ongoing charge for 78 emerging market funds offered in Hong Kong differ greatly from 0.07% to 4.51%.
The A shares accumulative share class for the Fidelity fund has an ongoing fee of 1.91%, while the JP Morgan fund charges 1.72% annually.
“I do agree both funds are expensive, but it comes down to paying a more expensive, high price for the alpha generation that you could get from the managers,” said Liu.
She noted that in current financial conditions with a strong dollar and high inflation, the existence of alpha in emerging markets may not be obvious to investors. But valuations for emerging markets are relatively cheap and both portfolios are likely to generate upside in the medium to long term, Liu added.
“As an investor, I don’t mind paying a bit more for that upside.”
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