News

HEAD-TO-HEAD: Jupiter versus Schroders

FSA compares two global convertible bond funds: The Jupiter Global Convertibles Fund and the Schroder ISF Global Convertible Bonds.

by Francis Nikolai Acosta 31 July 202029 November 2020

1 234 5 6

PERFORMANCE

Gkeka expects the Jupiter fund to outperform in down markets, such as in March 2020. According to FE FUndinfo data, the fund performed -6.93%, versus the benchmark’s -9.83% performance.

On the flipside, the fund is expected to underperform when market returns are led by growth companies and expensively valued sectors that benefit from price momentum, such as in the second quarter this year, Gkeka said.

Meanwhile, the Schroders fund’s performance behaves differently. Given its higher sensitivity to equities and a preference for growth names, the fund is expected to exhibit higher upside participation than peers in bull markets, according to Gkeka. However, the fund is expected to underperform during periods of market turmoil.

Discreen annual calendar performance

Fund / index / sector	YTD 2020	2019	2018	2017	2016	2015
JGF-Jupiter Global Convertibles	3.8	4.99	-11.5	21.23	1.45	-7.58
Schroder ISF Global Convertible Bond	9.88	12.37	-5.1	7.38	1.62	3.11
Index : Thomson Reuters Convertible Global Focus Hedged	8.9	13.1	-3.01	6	1.59	3.83
Sector : HKM Convertible TR	8.55	11.87	-7.4	13.38	0.18	-3.26

Source: FE Fundinfo. In US dollars.

In terms of volatility, the Jupiter fund is less volatile than the Schroders offering according to Gkeka.

Trailing three- and five-year standard deviation

Fund	Three years	Five years
JGF-Jupiter Global Convertibles	6.20%	5.60%
Schroder ISF Global Convertible Bond	8.10%	7.70%

Source: Morningstar

“The Jupiter Global Convertibles Fund has exhibited lower volatility given its more conservative approach and avoidance of sectors that trade on high valuations,” she said.

“Investors should expect better risk-adjusted returns to peers over the long-term,” she added.

1 234 5 6

Promoted Content

FSA SPY

The FSA Spy market buzz – 13 December 2024

M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.