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HEAD-TO-HEAD: JP Morgan versus T Rowe Price

FSA compares two technology equity products: the JP Morgan US Technology Fund and the T Rowe Price Global Technology Equity Fund.

by Francis Nikolai Acosta 22 November 201910 November 2020

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Darius McDermott, Chelsea Financial Services and Fund Calibre

Introduction

Technology continues to be a trending theme in Asia, with several fund managers launching new tech-related products this year.

Capital Group, for example, launched the New Economy Fund to retail investors in Hong Kong and Singapore recently. The product invests in companies that can benefit from innovation or exploit new technologies.

Amundi also introduced five themed funds in Hong Kong and Singapore this year, one of which is the Global Disruptive Opportunities Fund, which may include sectors in technology, telecommunications and fintech.

Other managers have also launched products that invest in the sub-sectors of technology. Just this week, Taipei-based Yuanta Securities launched a 5G ETF, which raised $300m during its IPO.

Indeed, the technology sector has continued to perform strongly, with the MSCI ACWI/Information Technology Index returning 38.8% this year, which compares to the MSCI AC World Index, which is up 22%, according to data from FE Fundinfo.

Against this backdrop, FSA asked Darius McDermott, managing director at Chelsea Financial Services and Fund Calibre, to compare two technology products: the JP Morgan US Technology Fund and the T Rowe Price Global Technology Equity Fund.

	JP Morgan	T Rowe Price
Size	$1.47bn	$882m
Inception	1997	2015
Manager	Joseph Wilson, Timothy Parton	Alan Tu
Three-year cumulative return*	102.61%	60.81%
Three-year annualised return**	25.74%	16.39%
Three-year annualised alpha**	4.83	-1.57
Three-year annualised volatility**	19.92	18.17
Morningstar analyst rating	*****	Neutral
Morningstar star rating	Bronze	**
FE Crown fund rating	*****	*
OCF (retail share class)	1.78%	1.86%

Source: FE Analytics

*18 November 2016 – 20 November 2019

**19 November 2016 – 15 November 2019

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