Head To Head

HEAD-TO-HEAD: JP Morgan versus Schroders

FSA compares two multi-asset income products: the JP Morgan Multi Income Fund and the Schroder Asian Asset Income Fund.

by Rupert Walker 28 May 202128 May 2021

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Patrick Ge, Morningstar

Introduction

Companies cut dividends last year as pandemic-lockdown measures put pressure on profits. Investors’ struggle to find income in an already low interest rate environment was exacerbated as a result.

However, the most recent Janus Henderson Global Dividend index, a widely followed metric, showed signs of improvement in the first quarter of 2021, with the pace of dividend reductions declining.

Indeed, companies in some sectors have become more generous, such as commodities, banking and utilities, and evidence of increasing pay outs was found in North America, Europe and in several emerging markets.

Meanwhile, the much-vaunted rotation out of growth counters into value stocks should provide capital stability – and even upside – for income funds which typically source dividends from value and cyclical sectors.

Against this background, FSA asked Patrick Ge, analyst at Morningstar to select two environmental themed equity products for comparison: the JP Morgan Multi Income Fund and the Schroder Asian Asset Income Fund.

	JP Morgan	Schroders
Size	$4.76bn	$3.93bn
Inception	2011	2011
Managers	Michael Schoenhaut, Leon Goldfeld, Eric Bernbaum	Multi-Asset team
Three-year cumulative return	22.82%	16.44%
Three-year annualised return	6.91%	4.95%
Three-year annualised alpha	1.65	-0.80
Three-year annualised volatility	10.96%	10.85%
Three-year information ratio	0.26	-0.47
Morningstar star rating	***	**
Morningstar analyst rating	Neutral	Neutral
FE Crown fund rating	**	*
OCF (retail share class)	1.31%	1.56%

Source: FE Fundinfo, Morningstar. (Data in US dollars, 28 May 2021)

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