HEAD-TO-HEAD: Jupiter versus MFS

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The Jupiter and MFS funds versus their benchmark indices and sector in Hong Kong. The Jupiter fund’s benchmark is the FTSE World Europe Index and the MFS fund’s benchmark is the MSCI Europe Index. Source: FE Fundinfo. In US dollars.

Performance

Caquineau believes that the flexibility of the Jupiter fund’s investment approach makes performance less predictable.

Discreet calendar performance (%)

Source: FE Fundinfo. In US dollars.

Since the Jupiter fund’s inception in 2001, it has returned 106% versus the 94.44% performance of the MSCI Europe Index, according to data from FE Fundinfo.

“But it is unpredictable in the short-term,” Caquineau said.

For example, in 2018, the manager trimmed exposure to growth stocks because they were becoming expensive.

“But the market was still favouring those stocks, which is why the fund was behind the curve at the time,” he said.

Turning to the MFS fund, Caquineau said that its strict adherence to high quality names has made the product perform consistently in different market conditions.

“The quality focus has helped the fund reduce drawdowns,” he added.

Given its consistency, Caquineau also expects the MFS fund to be less volatile than the Jupiter fund.

Three-year annualised volatility

Source: FE Fundinfo. In US dollars.

“The Jupiter fund can be more volatile since it sometimes invests in turnaround stories, which have more uncertainty about future earnings growth,” he said.

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