JP Morgan, Blackrock funds key to FE 100 changes

The top 100 list includes 75 equity funds, 30 of which cover Asia-Pacific, 20 fixed-income funds and five mixed-asset funds.

Two changes were made in the Asia-Pacific equity list. The Schroder ISF Hong Kong Equity Fund replaces the JP Morgan Hong Kong Equity Fund. The new addition provides a “better exposure to pure Hong Kong equities”, according to FE, which sets it apart from its peers, many of which focus on China-oriented companies despite the Hong Kong equity label. The Luxembourg Sicav fund is managed by Hong Kong-based Toby Hudson.

Investor preference for a regular income stream is reflected in the addition of the JP Morgan Asia Equity Dividend Fund, offering a 4.39% dividend yield, to replace the same firm’s Greater China Smaller Companies Fund, which does not pay dividends. The former is managed by the firm’s star Asia equity manager Jeffrey Roskell.

FE has identified stronger fund options in the financial and natural resources sectors. It added the Fidelity Global Financial Services Fund, managed by Sotiris Boutsis, who is based in London, to replace the JGF-Jupiter Global Financials Fund. The Fidelity fund offers a higher exposure to US financial institutions compared to the JGF-Jupiter fund.

The Blackrock GF Natural Resources Growth & Income Fund replaced the Franklin Natural Resources Fund. The newly-selected Blackrock fund offers a more balanced geographic exposure, with only a 60% weighting to North American equities, compared to 80% in the Franklin fund.

Three funds were replaced within the fixed income segment. The Blackrock GF Euro Bond Fund replaced the AB FCP I European Income Portfolio. The newly added Blackrock fund offers a stronger focus on Europe ex-UK and a lower exposure to UK and to global bonds, compared to the AB’s product, FE said. 

The E Fund Management (HK) Ltd RMB Fixed Income fund replaced the Bosera RMB Bond Fund in the China bond segment, based on E Fund’s strength in research and trading as well as the firm’s transparency in communicating its strategy, according to FE. The switch represents a big shift in exposure as the E Fund product invests 60% in corporate bonds, while government bonds constitute 82% of the Bosera fund.

In adjusting the fixed income fund selection to better represent the regional market, the JP Morgan Asian Total Return Bond Fund, managed by Stephen Chang, replaced the Blackrock GF US Dollar Core Bond Fund.

After the adjustments, FE’s top 100 list includes 17 funds managed by Fidelity, 16 by JP Morgan Funds, 15 by Blackrock and 10 by Schroders. The remaining 42 positions in the list are managed by 19 other firms.