Head To Head

HEAD-TO-HEAD: Investec versus JP Morgan

FSA compares two global mixed asset products: the Investec Global Multi Asset Income Fund and the JP Morgan Multi Income Fund.

by Francis Nikolai Acosta 12 April 201910 November 2020

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The JP Morgan and Investec funds versus their sector, according to FE.

Note: the benchmark of the Investec fund (Libor EUR Overnight) is included, while JP Morgan’s blended benchmark index (25% MSCI World Index (Net) Hedged to USD, 40% Bloomberg Barclays US Corporate High Yield 2% Cap Index, 20% JP Morgan Emerging Markets Bond Index Global and 15% MSCI Emerging Markets (Net)) is not available in the FE database.

Performance

Given that the Investec fund aims to have low volatility, the product is expected to provide more downside protection to investors than the JP Morgan fund, according to Ng. Indeed, the Investec fund remained positive in 2018 and 2015 when the JP Morgan product and the sector were negative:

Discrete calendar year returns (%)

Fund / benchmark	YTD 2019	2018	2017	2016	2015	2014
Investec Global Multi-Asset Income	3.73	0.53	5.97	4.32	0.92	3.71
JPMorgan Multi Income	7.98	-5.03	10.6	7.41	-1.57	4.4
Sector : HKM Mixed Asset International TR in US	8.42	-9.37	17.08	1.57	-4.42	1.11

Source: FE Analytics

However, given its defensive nature, it is not able to participate much during market rallies, unlike the JP Morgan fund.

“When the market is up, the JP Morgan Multi Income Fund tends to perform better,” he said.

In terms of volatility, the Investec fund is significantly less volatile than its sector, according to FE data. Ng added that it is even lower than the three-year annualised volatility of the Bloomberg Barclays Global Aggregate Index, which is at 4.71.

Three-year annualised volatility

Fund / Index	Volatility
Investec Global Multi-Asset Income	2.88
JPMorgan Multi Income	5.21
Sector : HKM Mixed Asset International TR in US	8.89

Source: FE Analytics. Three years to 08 April 2019.

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