JPM ASEAN Equity D (acc) EUR |
by Hunter Beaudoin
JPMorgan ASEAN remains our high-conviction pick for ASEAN equities thanks to its strong management team backed by comprehensive analytical resources as well as a proven and well-structured investment approach. The SICAV vehicle’s cheaper share classes, including its C (acc) USD clean share class, retain their Morningstar Analyst Ratings of Gold, while its more expensive share classes retain their Silver and Bronze ratings, depending on fees. The recently launched CPF (acc) SGD share class earns a Silver rating. The Hong Kong unit trust retains a Silver rating across both its (acc) - USD and (acc) - HKD share classes. Lead manager Pauline Ng boasts 22 years of investment experience and has helmed this strategy via the Hong Kong unit trust since January 2009. Ng is an accomplished Southeast Asian equity investor who we continue to think highly of for her deep investment expertise in the region and exceptional leadership qualities. She has co-chaired JPMorgan’s Emerging Markets and Asia Pacific Sustainability Council since its formation in August 2021, though we feel this position hasn’t detracted from her ability to successfully manage this portfolio. She is joined here by three comanagers—Desmond Loh, Stacey Neo, and Chang Qi Ong—who have consistently displayed a synergetic working dynamic and intimate knowledge of their respective countries of specialty from both a stock and macro level during our review meetings. The managers are part of the five-member ASEAN team, which operates in a spiderweb structure under Ng that encourages cross-coverage of the universe and teamwork, reducing key-person risk. 13 sector analysts from JPMorgan’s broader investment team further support this strategy. The investment process is well-codified and has demonstrated clear success through multiple market cycles. The ASEAN team builds on the EMAP team’s strategic classification framework, which rates prospective holdings as premium, quality, or trading, with a unique categorisation system based on the target holding period for each stock. The ASEAN country specialists’ local market proficiency has allowed them to add value through identifying investment opportunities down the market-cap spectrum, which we think provides the process a competitive edge. The portfolio’s active share has dipped over the past year, though we feel this reflects the team’s risk awareness during the current market dislocation and expect it to revert to its historical average of around 40% under normalised conditions. Ng has built an impressive long-term track record on this strategy. Since she took over as lead manager of the strategy in January 2009 through January 2023, the Hong Kong unit trust’s (acc) - USD share class has returned 9.49% per year versus the Moningstar Category index’s 7.60%, landing in the top third of category peers. The SICAV has a similarly impressive track record since its September 2009 launch. |
Morningstar Pillars | |
People | High |
Parent | Above Average |
Process | High |
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