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HEAD-TO-HEAD: Jupiter versus Nordea
FSA compares two global mixed-asset products: the Jupiter Merlin International Balanced Portfolio and the Nordea 1 Stable Return Fund.
The Jupiter and Nordea funds versus their sector. In US dollars. The funds do not use a benchmark index.
Performance
McDermott expects that the Jupiter fund will generally keep up better in rising markets.
“But at the same time, it has also protected investors in falling markets,” he said.
Discreet annual calendar performance (%)
| Fund / sector |
YTD 2019 |
2018 | 2017 | 2016 | 2015 |
2014 |
| Jupiter Merlin International Balanced Portfolio L Acc EUR in US |
8.44 |
-9.52 | 22.03 | -1.68 | -2.91 |
-6.56 |
| Nordea 1 Stable Return E EUR in US |
3.06 |
-10.99 | 15.96 | -0.73 | -8.68 |
-3.62 |
| Sector : Sgp Mt Mixed Asset Flexible TR in US |
6.39 |
-8.91 | 15.83 | -0.59 | -7.27 |
-2.95 |
Source: FE Analytics
Turning to the Nordea fund, given that its objective is capital appreciation, McDermott expects the product to perform better in down markets, but lag during market rallies.
“However, the fund has disappointed in 2018 and 2015 when markets were down,” he said.
“The Jupiter fund has been more consistent, just by looking at its short- and longer-term performance.”
Cumulative performance
| Fund / benchmark |
1 year |
3 years | 5 years |
10 years |
| Jupiter Merlin International Balanced Portfolio L Acc EUR in US |
0.8 |
15.3 | 9.05 |
47.79 |
| Nordea 1 Stable Return E EUR in US |
-2.47 |
-2.84 | -7.69 |
15.15 |
| Sector : Sgp Mt Mixed Asset Flexible TR in US |
0.92 |
8 | -1.02 |
21.93 |
Source: FE Analytics
Although the Nordea fund aims to protect capital, McDermott said in terms of volatility, based purely on performance, “I expect the Nordea fund to be more volatile.”
Three-year annualised volatility
| Fund / Index |
Volatility |
| Jupiter Merlin International Balanced Portfolio L Acc EUR in US |
7.41 |
| Nordea 1 Stable Return E EUR in US |
7.88 |
| Sector : Sgp Mt Mixed Asset Flexible TR in US |
5.96 |
Source: FE Analytics
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