HEAD-TO-HEAD: JP Morgan AM versus UBS AM

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Claire Liang, Morningstar

Introduction

Various fund managers have become positive on their outlook for China equities, with a view that economic activity in the mainland is resuming slowly following the coronavirus outbreak.

“We think the coronavirus situation appears largely under control now in China as it has already passed the peak in terms of the number of infected cases and new infections,” Caroline Maurer, Hong Kong-based fund manager for Chinese equities at BNP Paribas Asset Management, told FSA recently.

Echoing her comments was Samir Mehta, Asia ex-Japan senior fund manager at JO Hambro Capital Management, who said in relation to the country’s lifting of its lockdown, that China appears to be moving to “a semblance of normality”.

Findings from Last Word Media research also suggests that there is strong future demand for China equities. Out of 250 fund selectors surveyed, 60% of the respondents intend to increase their asset allocation to the asset class, while only about 15% plan to reduce their exposure.

With a more positive outlook, China has become one of the best performing equity markets year-to-date. This year, the MSCI China has outperformed its peers globally, in Asia-Pacific, Europe and the US, according to data from FE Fundinfo.

Source: FE Fundinfo. In US dollars. Year to 17 April.

Against this backdrop, FSA asked Claire Liang, Shenzhen-based manager research analyst for China, to compare two China equity funds: the JP Morgan China Fund and the UBS China Opportunity Fund.

Source: Morningstar, FE Fundinfo

*14 April 2017 – 15 April 2020

**15 April 2017 – 10 April 2020

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