The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
HEAD-TO-HEAD: JPMorgan vs MFS
FSA compares two European equity products: the JPMorgan Europe Dynamic Fund and MFS Meridian European Research Fund.
The JPMorgan fund has a four-star Morningstar rating and an analyst rating of Bronze. The MFS fund has the higher ratings: five-stars and an analyst rating of Silver.
Morningstar’s star rating looks at historical risk-adjusted performance and the analyst rating is based on forward-looking analysis.
Meakin said both funds have diversified exposure to European large-cap equities.
He added that the JPMorgan fund can be volatile with a high stock turnover rate. For the MFS fund, investors are unlikely to see dramatic portfolio positioning shifts over the short term.
While Meakin would not comment on whether he prefers one fund over the other, he pointed out that the exposure is the major differentiating factor investors should look at.
For investors who prefer a valuation-driven quant strategy, focused on companies that benefit from near-term earnings, the JPMorgan product could be a consideration for the portfolio.
For investors with a longer-term horizon, the MFS fund, which is tilted toward sustainable blue-chips across Europe, could be an attractive option.
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