HEAD-TO-HEAD: Invesco vs Jupiter

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The Invesco and Jupiter funds versus their benchmark indices, according to FE data.

Performance

Caquineau believes that both funds are among the best products in their categories and have good long-term performance relative to peer funds over a 10-year period.

Over the 10-year period, the Invesco fund has a cumulative return of 154.7% (versus the 146.13% of the MSCI Europe Index), while the Jupiter fund returned 147.98% (versus the 145.97% of the FTSE Europe Index), according to FE data.

During the same period, FE’s Europe (including UK) sector returned 123.68%.

One feature of the Invesco fund that Caquineau highlighted is that given its low volatility, it is able to limit losses during a market downturn or if there is a spike in market volatility.

Year-to-date volatility

Source: FE Analytics

“2011 was a very difficult year for the European equity market, and the Invesco fund was able to preserve the capital of investors.”

Discreet calendar returns

Source: FE Analytics

However, given that feature, investors should expect that the Invesco product may lag when there is a rally in the market or if it is leaning strongly toward a specific style, whether it is growth or value, he said.

“Its portfolio construction is blending both earnings growth expectations and valuations, so the end portfolio does not have a strong style tilt. So a strong rally in growth or value will be painful for such a fund.”

Turning to the Jupiter fund, Caquineau commends the manager for his ability to “pick the right stocks at the right moment.

“The fund has been able to protect investors in 2008, but it also outperformed the market in 2012, 2013 and last year. His ability to choose small- and mid-caps has also been beneficial to the fund.”

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