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

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MANAGER REVIEW

The First State fund is managed by two fund managers: Martin Lau, who is responsible for the product’s equity sleeve, and Nigel Foo, who manages the fixed income sleeve, according to Ge.

Given that the fund has a fixed 50:50 allocation toward equities and fixed income, it does not have multi-asset managers who are responsible for the asset mix.

Lau has been managing the fund’s equity sleeve since 2003, while Foo has managed the underlying fixed income sleeve since 2012.

Ge has no concerns over the fund’s team, given that both managers are experienced, with Lau having “consistently showcased detailed knowledge of the market and is a proven outperformer”, and Foo being “well-versed when quizzed on the Asian credit markets”, he said.

Both managers also have ample analyst support. Lau is backed by a 20-member team that has been relatively stable, while Foo is supported by a six-member Asian fixed income team.

Ge noted that the firm’s fixed income team is smaller compared with other Asian fixed income teams and believes that it could benefit from added resources.

Turning to the JP Morgan fund, Ge said that while it does not enforce a fixed equity/fixed income split, it does not have dedicated multi-asset managers that oversee the asset allocation decisions.

Instead, it is a collaborative effort between the underlying equity and fixed income managers. The fund’s equity sleeve is managed by lead manager Jeffrey Roskell, who returned from his 11-month sabbatical in September last year. He has 27 years of industry experience. He is backed by co-managers Julie Ho and Ruben Lienhard.

The fund’s fixed income sleeve is managed by Shaw Yann Ho, who became the firm’s head of Asia fixed income in 2018, replacing Stephen Chang. She started co-managing the fund in 2014.

“She is an experienced credit investor, though we’re still building conviction in her capabilities as a decision-maker,” Ge noted.

Ho is also supported by another co-manager, Selina Yu.

While the whole team has several managers, Ge noted that they have limited experience working collectively, as Yu and Lienhard were named co-managers in 2018.

“We’re taking a conservative approach of this group’s collaborative synergies,” Ge said.

The managers have ample support, with the equity managers drawing on a nearly 100-member emerging markets and Asia-Pacific equities team, while the fixed income managers are backed by a 12-member Asian fixed income team, according to Ge.

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