The average market capitalisation of the funds differ slightly. For the Fidelity fund the number is $34.2bn compared to the $29.3bn for the JP Morgan fund.
Both funds use a blend of value and growth stocks, but their portfolios are slightly tilted toward growth stocks, Sim said.
But the two products differ significantly in portfolio construction. The Fidelity fund holds around 108 companies in its portfolio. Despite being a relatively bigger fund in terms of AUM, the JP Morgan vehicle holds a concentrated portfolio of about 60 stocks.
“This is a reflection of the different approach toward portfolio construction. The JP Morgan fund demonstrates a high level of conviction in their ideas.”
The portfolio turnover ratio of the JP Morgan fund is lower at 47% compared to Fidelity’s 117%.
Sector allocation is similar, with both funds holding a significant exposure to the financial and information technology sectors.
“More than three-quarters of both fund’s exposure is in cyclical sectors [financials, technology, consumer discretionary and energy],” Sim said.
“This indicates a bullish view by both fund houses toward these sectors. It also gives an idea as to where the best opportunities can be found in the region.”
In terms of country allocation, the Fidelity fund has a slightly higher exposure to China whereas both funds have similar allocation to Hong Kong.
Exposure to Taiwan is a differentiating factor. The Fidelity fund has a lower allocation than the JP Morgan vehicle.
