Posted inHead To Head

HEAD-TO-HEAD: GAM vs JP Morgan

FSA compares two APAC including Japan funds — the GAM Star Asia Pacific Equity Fund and the JP Morgan Pacific Securities Fund.
by Francis Nikolai Acosta
Performance

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All fund and benchmark NAVs have been converted to US dollars.

The chart shows the cumulative three-year performance of the funds and their respective benchmarks. The GAM fund underperformed its benchmark, the MSCI Pacific, while the JP Morgan fund outperformed its benchmark by a large percentage, according to FE data.

Ng said that the GAM fund’s underperformance is attributable to some of its holdings in financials, energy and materials, adding that material and energy prices have been on a downward trend.

The JP Morgan’s product outperformance can be attributed to the managers’ stock selection in Australia, Japan, China, India and Korea, according to Ng.

The fund’s overweight positions in Tencent, Alibaba and AIA significantly drove performance, he added.

Volatility 

Both the GAM fund and the JP Morgan fund are more volatile than their benchmark indices, according to FE data.

Fund / benchmark index

Volatility
GAM Star Asia Pacific Equity Fund

16.32
     MSCI Pacific Index

14.24
JP Morgan Pacific Securities Fund

14
     MSCI AC Asia Pacific Index

13.96

 

However, the volatility gap between the GAM fund and its benchmark index is bigger than that of the JP Morgan fund, Ng noted.

The GAM product may be more volatile because of its larger allocation to Japan and to cyclical stocks such as financials and industrials, he said.

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