HEAD-TO-HEAD: JP Morgan AM vs Schroders
By Francis Nikolai Acosta, 10 Aug 18
FSA compares the JP Morgan Japan Equity Fund and the Schroder ISF Japanese Opportunities Fund.
Don Yew, Morningstar
Japan equities have fallen out of favour this year after generally strong performance last year, according to Don Yew, Singapore-based analyst for manager research at Morningstar.
Year-to-date, The MSCI Japan Index has fallen -1.16% compared to 24.39% in 2017, according to data from FE Analytics.
Like other markets, the negative sentiment in Japan equities can be attributed to the US-China trade war, Yew said.
Countries that have large trade surpluses, which include Mexico, Japan and Germany, are likely to be negatively affected by an all-out trade war, according to UBS Wealth Management.
Fund managers have also downgraded their views on the asset class. For example, State Street Global Advisors has reduced its position in Japan for its multi-asset portfolios, while Blackrock does not see any catalyst for the market to outperform.
Against this backdrop, FSA asked Morningstar’s Yew to look at two Japan equity funds: the JP Morgan Equity Fund and the Schroder ISF Japanese Opportunities Fund.
JP Morgan fund
Miyako Urabe, Nicholas Weindling, Shoichi Mizusawa
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