Head To Head

HEAD-TO-HEAD: Invesco vs JP Morgan

FSA compares two Greater China equity funds: the Invesco Greater China Equity Fund and the JP Morgan Greater China Fund.

by Francis Nikolai Acosta 4 January 201910 November 2020

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Luke Ng, FE Advisory Asia

Introduction

The Greater China region has always been on the radar for investors globally, given the long-term prospects it provides.

“China is now the second-biggest economy and still has enough potential for growth in the coming years,” Luke Ng, vice president at FE Advisory Asia, told FSA.

However, sentiment for Greater China equities turned sour last year, amid rising trade tensions between China and the US as well as the slowdown in economic growth in China, according to Ng. “The overall sentiment is not good [in the] short-term.”

For the full-year 2018, the MSCI Gold Dragon Index, which measures the performance of Greater China equities, was down 14.56%, according to FE Analytics.

But Ng said he is still positive toward the region. “It still has a lot of potential to grow long-term, and although there are trade tensions, the region is now very much supported by domestic consumption rather than relying on exports.”

In addition, in spite of the negative performance in Greater China equities, Asia’s fund selectors have shown increased interest in buying Chinese equity funds in the next 12 months, according to forward-looking data collected by FSA.

Against this backdrop, FSA asked Ng to compare two Greater China equity funds: the Invesco Greater China Equity Fund and the JP Morgan Greater China Fund.

	Invesco	JP Morgan
Size	$1.14bn	$463m
Inception	1992	2001
Manager	Mike Shiao, Lorraine Kuo	Howard Wang, Rebecca Jiang
Three-year cumulative return	22.04%	11.96%
Three-year annualised return	8.14%	5.13%
Three-year annualised alpha	5.40%	2.11%
Three-year annualised volatility	16.16	20.56
Morningstar analyst rating	Bronze	Bronze
Morningstar star rating	****	***
FE Crown fund rating	*****	****
OCF (retail share class)	2.01%	1.82%

Source: Morningstar, FE Analytics

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