HEAD-TO-HEAD: JP Morgan vs Jupiter

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Performance

The Jupiter fund’s high-conviction growth strategy has paid off in the long-term, despite periods of sharp and dramatic volatility. It has earned a three-year cumulative return of 27.98%, recovering from an uncomfortable 2016 calendar year, when stock selection proved unproductive. It has also exceeded the return of its benchmark, the FTSE World Europe Index by more than six percentage points.

“Last year, concentrated bets in a couple of stocks turned performance round,” said Kandlur. However, a core holding in Wirecard might harm returns this year, as investigations continue over alleged fraud at the payments firm.

The JP Morgan product has posted a 19.94% three-year cumulative return, which is consistent with the performance of its benchmark, the FTSE All-World Developed Europe (ex-UK) Index.

“After a strong 2017, the fund gave up a lot of its gains last year as its tilt towards earnings momentum came unstuck, with companies reporting disappointing results,” said Kandlur.

The fund is more volatile than the Jupiter fund  – 15.09% compared with 13.72% – which worked against it in late 2018 when stock markets tanked, she added.

“An overweight to banks and exposure to semiconductor firms in May hurt performance,” said Kandlur.

Discrete annual performance %

 Source: FE Analytics. In US dollars.

*FTSE All-World Developed Europe (ex-UK) Index, **FTSE World Europe

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