Head To Head, News, Research

HEAD-TO-HEAD: JP Morgan vs Matthews Asia

FSA compares the JP Morgan Pacific Securities Fund and the Matthews Asia Asia Dividend Fund.

by Fund Selector Asia 20 July 20181 August 2022

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Source: FE. Fund NAV is converted to US dollars for comparison purposes.

Performance

The JP Morgan fund has outperformed the Matthews Asia fund, the sector and the index on a one-, three- and five-year basis.

As mentioned earlier, the JP Morgan fund focuses on stock growth potential. Ng said the rally in 2017 was the key contributor to the outperformance.

“Last year, stock markets globally were driven by growth stocks. The technology holdings brought decent returns to the JP Morgan fund.”

On the flipside, the market was unfavourable for the Matthew Asia fund, which maintains a lower exposure to growth momentum stocks. Ng said its performance in 2017 shows that in a market unfavourable for the fund, the managers are able to deliver a performance that is in line with the market average.

Performance versus benchmark and category peers

Fund	1-year	3-year	5-year
JPM	13.10%	37.79%	58.37%
Matthews Asia	8.72%	22.28%	42.12%
MSCI AC Asia Pacific Index	10.25%	22.92%	45.31%
Category average*	8.88%	17.60%	37.30%

Source: FE. Category average is calculated based on funds available for sale in Hong Kong. Fund NAV is converted to US dollars for comparison purposes.

Despite the Matthews Asia fund’s bias toward smaller-caps, it is less volatile than the JP Morgan fund and the index over a three-year period. Ng explained that dividend-paying stocks tend to be more stable, which leads to lower volatility in the Matthews Asia fund.

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