Posted inHead To Head

HEAD-TO-HEAD: First State versus JP Morgan AM

FSA compares two Asia mixed-asset products: The First State Asian Bridge Fund and the JPM Asia Pacific Income Fund.
by Francis Nikolai Acosta

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INTRODUCTION

Mixed-asset products have become among the most sought-after products by high net worth individuals (HNWIs) in Asia, with 67.3% of asset managers surveyed saying it is the most in-demand asset class in the region, according to a recent report published by Boston-based research firm Cerulli Associates.

“Multi-asset allocation strategies are becoming increasingly relevant amid the uncertain economic climate caused by the coronavirus pandemic, because such strategies benefit from a mix of assets with low correlation, which may include alternatives such as hedge funds and real estate,” Cerulli said.

In Hong Kong, investors have poured money into multi-asset funds, with the product category having net inflows of $293.3m during the first four months this year, according to data from the Hong Kong Investment Funds Association.

The inflows toward multi-asset products are slightly higher compared with equity funds ($225.3m), while bond funds had sizable net outflows of $5.9trn during the period, HKIFA data shows.

Against this backdrop, FSA asked Patrick Ge, Hong Kong-based analyst for manager research at Morningstar, to compare two Asia mixed-asset products: the First State Asian Bridge Fund and the JPM Asia Pacific Income Fund.

First State JP Morgan
Size $201.6m $1.71bn
Inception 2003 2001
Manager Martin Lau, Nigel Foo Jeffery Roskell, Julie Ho, Shaw Yann Ho, Selina Yu, Ruben Lienhard
Three-year cumulative return 16.48% 0.33%
Three-year annualised return 5.31% 0.14%
Three-year annualised alpha 2.17 -3.37
Three-year annualised volatility 9.16 11.15
Morningstar analyst rating Bronze Neutral
Morningstar star rating ***** ****
FE Crown fund rating ***** ***
OCF 1.48% 1.79%
Source: Morningstar, FE Fundinfo

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