Head To Head

HEAD-TO-HEAD: JP Morgan versus UBS

FSA compares two China mixed asset products: the JP Morgan China Income Fund and the UBS Key Selection China Allocation Opportunity Fund.

by Rupert Walker 13 December 201913 November 2020

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Source: FE Fundinfo (Cumulative returns in US dollars)

Performance

Both funds have outperformed the Asia-Pacific mixed asset category average over the past three years. The UBS product has generated a cumulative return in US dollar terms of 36.66%, the JP Morgan fund has retuned 24.37%, and the sector average just 14.37%, according to FE Fundinfo data.

“The UBS fund has been helped by an especially strong 2019, as the managers deployed its previously high cash balance into markets at the start of the year,” said Ng.

“That large cash position in 2018 also mitigated its performance during the major sell-off in risk asset markets in the second half of last year,” he added.

Consistently superior stock and bond selection has contributed to strong alpha (7.00) since 2016, well in excess of the alpha earned by the JP Morgan fund (2.62).

The JP Morgan fund’s strongest recent calendar year was 2017, “when the managers added great value with their allocation between equities and fixed income,” according to Ng.

Both funds are more volatile than the sector average of 9.91%, but that is to be expected because of their focus on China securities, rather than the wider (and less volatile) Asia-Pacific universe, he said.

Discrete annual performance % (US dollars)

	YTD*	2018	2017	2016	2015	2014
JP Morgan	11.36	-11.34	30.70	4.32	-3.56	34.25
UBS	23.07	-10.70	25.84	2.05	–	–
Mixed Asset Apac sector	14.65	-14.87	20.64	-0.50	-6.24	2.61

Source: FE Fundinfo

*1 January 2019 – 10 December 2019

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