The FSA Spy market buzz – 17 March 2023
JP Morgan’s active China, Chinese private funds growing fast, punditry torn apart, ratings agencies torn apart too, Larry Fink adds concern, Credit Suisse’s bad meme week, high wages and much more.
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|
|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||*****||***|
Part of Mark Allen.