HEAD-TO-HEAD: Investec versus JP Morgan

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Conclusion

FE Fundinfo awards the JP Morgan fund with its top ranking of five crowns and its supporting manager Mark Davids with an alpha manager rating.

The crown-rating methodology assesses the fund’s alpha, volatility and consistency of performance, and on that basis the research firm has made its preference clear, because the Investec fund has only three crowns.

The more backwards-looking criteria used by Morningstar still rates the Investec fund below the JP Morgan fund, but awards it an additional star and its forward-looking assessment means its assigns a silver analyst rating to Greg Kuhnert.

Nevertheless, the relative performances of the two funds clearly weigh in the JP Morgan product’s favour.

“The high rating for the [JP Morgan] fund reflects its strong absolute and risk-adjusted returns,” said Ng.

“Certainly the fund has benefitted from an environment supportive of growth stocks, but the managers haven’t sacrificed quality,” he said.

“On the contrary they have added consistent value through their stock selection. We are particularly impresses by Joanna Kwok,” he added.

Ng is also impressed with Kuhnert’s experience and the skills of his team.

“Perhaps if there were a sharp market reversal, then the JP Morgan fund might come under pressure and the Investec fund could be an option for investors,” he said.

But, it is more likely that the JP Morgan fund will continue to do well in all seasons, according to Ng.

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