HEAD-TO-HEAD: JP Morgan versus Schroders

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Conclusion

Morningstar has awarded the JP Morgan product three stars based on historical returns, and with a neutral analyst rating. The firm gives the Schroders fund just two stars, and a forward-looking analyst rating of neutral.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards the JP Morgan product two crowns, and also rates the Schroders fund lower higher with one crown.

“Although its flexible mandate leads to less predictability on returns, the JP Morgan fund’s its sustainable and consistently appealing annualised yield is suitable for income-seeking investors with adequate risk tolerance,” said Ge.

At the Schroders fund, “an impending leadership change together with a transition to a more total return centric approach within the equity sleeve brings uncertainty,” he said.

“This new approach should lend the managers more flexibility but brings an additional market-timing decision between income and core styles, which is unproven at this time,” Ge added.

However, both funds can suit investors with specific objectives and preferences.

“The global approach of the JP Morgan strategy makes it suitable for investors who want geographical diversification; the Schroders fund might better for investors who prefer a strictly Asia focus,” said Ge.

In addition, the explicit integration of ESG methodology in the Schroder’s strategy will appeal to people looking for ESG commitment, according to Ge.

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