The FSA Spy market buzz – 6 September 2024
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The two products have performed differently throughout the years, as they behave differently depending on the market environment, according to Ng.
During rallies, for example, Ng said he expects the JP Morgan fund to perform better than the Invesco fund.
“The JP Morgan fund performs better when the market sentiment is positive and when economic growth is going up, especially during the Goldilocks environment we saw in 2017,” he added.
Discreet annual performance
Fund / benchmark |
2019 |
2018 | 2017 | 2016 | 2015 | 2014 |
2013 |
Invesco Greater China Equity A USD in US |
-3.76 |
-14.23 | 41.52 | 4.47 | -5.49 | 2.08 |
25.89 |
JPM Greater China A Dis NAV USD TR in US |
-4.27 |
-23.86 | 55.81 | -1.41 | -5.17 | 6.11 |
13.15 |
Index : MSCI Golden Dragon GTR in US |
-3.37 |
-14.56 | 44.19 | 5.75 | -7.12 | 8.06 |
7.25 |
However, he said he expects the JP Morgan fund to underperform the Invesco fund when the market is volatile.
“The Invesco fund has a tendency to have better downside protection. One key reason is its focus on the private sector,” Ng said.
The Invesco fund’s concerns about valuations have also helped the product to perform better than the index in 2018.
“What helped the performance of the fund was when it started to wind down its Chinese exposure at the start of 2018 when valuations were becoming more expensive,” he said.
In terms of valuation, the Invesco fund is less volatile relative to its index and the JP Morgan fund, according to Ng. He added that it has one of the lowest valuations in the Greater China category.
Three-year annualised volatility
Fund / Index |
Volatility |
Invesco Greater China Equity A USD in US |
16.16 |
JPM Greater China A Dis NAV USD TR in US |
20.56 |
Index : MSCI Golden Dragon GTR in US |
17.97 |
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
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