Posted inHead To Head

HEAD-TO-HEAD: First State versus JP Morgan

FSA compares two India equity products: the First State Indian Subcontinent Fund and the JP Morgan India Fund.
by Rupert Walker

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Conclusion

Morningstar has awarded the First State fund five stars and the managers with a gold analyst rating. Its evaluation is based on forward-looking factors which are derived from an assessment of five key “pillars” it believes are critical for a fund’s future success, namely: people, parent, process, performance and price.

On these criteria, the First State is a superior prospect to the JP Morgan fund, which Morningstar assigns three stars and a bronze rating.

“Agarwal is our favourite manager among his peer group,” said Nel.

“He has delivered performance throughout market cycles, yet sticks rigorously to his style and process. The fund has a best-in-class lead manager and a strong and stable analyst team,” he said

Nel also respects the JP Morgan team, whom he considers “very experienced and very passionate, and are well-supported by a strong, substantial resources.

“Both funds should do well in a market downturn because of their focus on high quality companies, but the First State fund is also likely to outperform during a market upturn, as it has invariably done in the past, because of its particular emphasis on value stocks,” he said.

“Overall, the First State fund remains the top option in this space, and it is likely to beat its benchmark and category on a risk-adjusted basis over a full market cycle,” concluded Nel.

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