The Asia Pacific (ex Japan) region is home to many fast-growing economies with exciting domestic growth stories, but also to a wealth of world-class businesses, many of which are the biggest and best at what they do.
Jason Pidcock & Sam Konrad
Investment Managers, Asian Equity Income
Our investment approach: Asian Equity Income
The Jupiter Asia Pacific Income Fund (IRL) aims to deliver greater total returns than the MSCI Asia Pacific ex Japan Index, net of fees, over rolling three-year periods. As well as aiming to deliver attractive total returns, investment managers Jason Pidcock and Sam Konrad look to provide a solid dividend income stream, by identifying companies in the Asia Pacific (ex Japan) region that have both the ability and willingness to pay dividends, while also being mindful of investing in companies with strong growth potential.
Applying decades of experience, Jason and Sam enlist top-down views to aid high conviction stock picking, with a focus on identifying resilient companies with strong balance sheets, pricing power, good liquidity, and attractive dividend policies. They aim to provide a level of income at least 20% higher than the benchmark, the MSCI AC Asia Pacific ex Japan Index.
Top-down stock picking
Universe
Asia Pacific ex Japan
Macro Factors
• Macroeconomics
• Local and Geopolitics
• Demographics
• Liquidity
Investible Universe
~ 100 stocks
Fundamental Analysis
• Competitive Advantage
• Ability to Evolve
• Balance Sheet Strength
• Valuations and Dividend Yield
Portfolio construction
~30 high conviction stocks
Optimal selection
• Income and Growth
• Category Winners
• Diversification
• Governance
Minimise unnecessary risks
Reading
Listening
Thinking
A concentrated, high conviction portfolio
While the Jupiter Asia Pacific Income Fund (IRL) can invest across the Asia Pacific (ex Japan) region and market cap, Jason and Sam have a bias towards developed Asia and large-cap companies. Running a concentrated portfolio of around 30 stocks, they only invest in businesses they’re the most confident about, with less than 20% expected turnover over a rolling five-year period.
The investment managers do not use any derivatives, currency hedging or gearing. Liquidity is a key criterion for investment for Jason and Sam – they do not invest in companies with a market cap of less than $3bn, and over 90% of the fund is held in companies with a market cap of more than $10bn.
Our current geographic exposure
Asia Pacific offers a wealth of income and growth opportunities
While many consider the Asia Pacific region to be an emerging markets play, it’s also home to several developed market economies with solid fundamentals, like Australia – which is currently the fund’s largest country weighting – Taiwan and Singapore. Jason and Sam are also able to find several attractive emerging market opportunities, in countries like India. They choose to avoid investing in mainland China given their ongoing concerns about its political nature, both domestically and in relation to other countries.
✓ Well-managed businesses
✓ Attractive dividend yields
✓ Sustainable business models
✓ Strong balance sheets
✓ Pricing power
Source: Jupiter, as of 30.06.24. (For illustration purposes only)
Focus on proven business models and good liquidity
Market cap (USDbn)
Why large caps?
Fund specific risks
- Investment risk - there is no guarantee that the Fund will achieve its objective. A capital loss of some or all of the amount invested may occur.
- Geographic concentration risk - a fall in the Asia Pacific markets may have a significant impact on the value of the Fund because it primarily invests in these markets.
- Company shares (i.e. equities) risk - the value of Company shares and similar investments may go down as well as up in response to the performance of individual companies and can be affected by daily stock market movements and general market conditions.
- REITs risk - REITs are investment vehicles that invest in real estate, which are subject to risks associated with direct property ownership.
- Stock Connect risk - Stock Connect is governed by regulations which are subject to change. Trading limitations and restrictions on foreign ownership may constrain the Fund's ability to pursue its investment strategy.
- Concentration risk (number of investments) - the Fund may at times hold a smaller number of investments, and therefore a fall in the value of a single investment may have a greater impact on the Fund's value than if it held a larger number of investments.
- Currency risk - the Fund is denominated in USD but holds assets denominated in other currencies. The value of your shares may rise and fall as a result of exchange rate movements.
- Emerging markets risk - less developed countries may face more political, economic or structural challenges than developed countries.
- Liquidity risk - some investments may become hard to value or sell at a desired time and price. In extreme circumstances this may affect the Fund's ability to meet redemption requests upon demand.
- Derivative risk - the Fund may use derivatives (i.e. financial contracts whose value is linked to the expected price movements of an underlying investment) with the aim of reducing the overall costs and/or risks of the Fund.
- Capital erosion risk - all or part of the share class charges may be taken from capital. Should there not be sufficient capital growth in the Fund this may cause capital erosion.
For a more detailed explanation of risks, please refer to the "Risk Factors" section of the prospectus.
Important Information
This is a marketing communication. Please refer to the latest sales prospectus of the sub-fund and to the Key Information Document (KID) (for investors in the EU)/ Key Investor Information Document (KIID) (for investors in the UK), particularly to the sub-fund’s investment objective and characteristics including those related to ESG (if applicable), before making any final investment decisions. An investment constitutes the acquisition of shares in the sub-fund, not in the sub-fund’s underlying assets.
We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice. This communication is for informational purposes only and is not investment advice. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. Past performance is not a guide to future performance. Company/Holding/Stock examples are for illustrative purposes only and are not a recommendation to buy or sell. Quoted yields are not a guide or guarantee for the expected level of distributions to be received. The yield may fluctuate significantly during times of extreme market and economic volatility. Awards and Ratings should not be taken as a recommendation. Every effort is made to ensure the accuracy of the information provided but no assurance or warranties are given. This is not an invitation to subscribe for shares in the Jupiter Asset Management Series plc (the Company). The Company is an investment company with variable capital established as an umbrella fund with segregated liability between sub-funds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended. Registered in Ireland under registration number 271517. Registered office: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland. The sub fund may be subject to various other risk factors, please refer to the latest Prospectus for further information. Prospective purchasers of shares of the sub fund of the Company should inform themselves as to the legal requirements, exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile. Subscriptions can only be made on the basis of the latest Prospectus and the Key Information Document (KID/ Key Investor Information Document (KIID), accompanied by the most recent audited annual report and semi-annual report. These documents are available for download from www.jupiteram.com. The Manager may terminate marketing arrangements. Information on sustainability-related aspects is available from www.jupiteram.com.