Australia’s immense wealth
Australia has a history of strong population growth – in the last 50 years it grew by 1.4% a year on average. Since 1972, its population has doubled, to 26.5m in Q1 2023, with population growth split roughly evenly between migration and natural increase.

Australia’s retirement savings system, featuring mandatory contributions into the superannuation system, combined with strong population growth, is supporting asset prices, as well as providing a rapidly growing pool of retirement savings, which is already the fourth largest in the world. The 2023 Intergenerational Report (IGR)1 projects that superannuation balances will jump further, to a ~218% share of GDP by 2062/63 – from $3tn now, up to as much as $33tn in 2062/63. Household wealth averaged at roughly $2m for those aged 55+ (for CY 22/23); superannuation benefits (excluding Self-Managed Superannuation Funds (SMSFs)) in 2022/2023 surged 20% year-on-year to $102bn, equivalent to a >8% share of household income.

There are long-term structural reasons to expect foreigners to continue to favour Australia as a preferred destination option. These include the relative resilience of the Australian economy, which avoided a recession for a world record of three decades (until the Covid-19 pandemic), which has resulted in living standards increasing to among the highest levels globally. There is also a recognised trust in the Australian government and institutional arrangements that impact the “quality” of life.

Australia’s population is ageing, but the rate has materially slowed (i.e. improved) given the ongoing fast pace of migration. Overall, the median age of the Australian population is 37.9 years, which is already a significant 3-years younger than the OECD average. By 2050, Australia’s median age is expected to increase to 41.8, but populations in many other countries will age more rapidly. Hence, by 2050, Australia is expected to become an even more significant 5-years younger than the OECD average.

Australia’s share of migrants with a tertiary education is 62%, which is among the highest in the world. It’s also much higher than Australia’s native-born population, with a 43% share. The Australian government Final Budget Outcome (FBO) for 22/23 was a surplus of 0.9% of GDP (or $22bn), far better than comparable economies.

Source: UBS
India – Modi set to win general election
Modi-led Bharatiya Janata Party’s (BJP) win in the three state elections of Madhya Pradesh, Rajasthan and Chhattisgarh, was much better than predicted or expected by exit polls and markets, reinforcing expectations of a Modi win in 2024 national elections, with a greater likelihood of 300+ seats for the BJP. Results for the four state elections show BJP gains in seats and vote share in each state. In 2018, BJP lost elections to Congress in the states of MP, Rajasthan and Chhattisgarh; all three have been won back with clear majorities.

ITC has become India’s largest fast-moving consumer goods (FMCG) manufacturer in the foods space by domestic sales (in the nine months to September, source: NielsenIQ). ITC has emerged as the largest packaged foods company (25+ mother brands, total/direct reach 7/2.6m), benefitting from formalisation tailwinds and high innovation intensity. It occupies top three positions in most categories with share gains (Aashirvaad flour, Sunrise, premium biscuits). Three in four households consume ITC’s food brands, and three quarters of Indian retail carries ITC’s food brands. ITC’s FMCG reach is at 7m outlets, and the business has launched 300 new products in the last three years.
Backdrop remains tough for China
China’s official Manufacturing Purchasing Managers’ Index (PMI) declined to 49, weaker than the median forecast of 49.6 by economists (source: National Bureau of Statistics), marking the third consecutive month below 50. Employment remained in contraction for the ninth time in the past ten months. Meanwhile, China’s real interest rates (a gauge for actual borrowing cost) hit 3% in November, the highest level in almost three years, as deflationary pressure builds. The slide in China’s home sales accelerated in December, underscoring the challenges of the sector. Across the 100 biggest real estate companies, the value of new home sales fell 34.6% year-on-year, to 451.3bn yuan ($64bn), compared with a 29.6% decline in November.

More Chinese agencies and government-backed firms across the country have ordered staff to stop bringing iPhones and other foreign devices to work, including those made by Samsung. The move was broader than previous reported measures in September, when only a small number of state agencies in Beijing and Tianjin were telling staff to leave foreign devices at home.

The Biden administration is reportedly discussing raising tariffs on some Chinese goods, marking a shift from earlier discussions that focused on whether to lower them (source: Wall Street Journal). The targeted goods include Chinese electric vehicles, solar products and EV battery packs for protecting the US clean-energy industry.

We continue to have no exposure to mainland China. We believe China has many deep-rooted problems, including its political system, debt and demographic headwinds, and it is increasingly viewed with suspicion by trading partners, direct investors and portfolio investors.
2024 outlook
This year, we expect to see a two-way pull for markets. The prospect of looser monetary policy globally may allow for P/E expansion and higher prices; meanwhile, many businesses could struggle to prevent their earnings declining if we see weaker economic growth and rising unemployment in key markets, such as the US. Though inflationary pressures have eased, the next leg of this cycle may be one of weaker growth, as the lagged effects of the higher interest rates we’ve seen kick in. Nevertheless, we still expect to see growth in earnings and dividends coming from a good number of the companies that we hold. These include the technology businesses we invest in, which experienced a difficult 2023 but where we think we will likely see an earnings rebound in 2024. Infrastructure, property and telecom stocks ought to feel some relief from a cessation in the rise of interest rates, particularly if combined with a further decline in bond yields.

2024 will be notable for the large number of general elections happening all around the world. In Asia, these include elections in Taiwan, India, Indonesia, and elsewhere. Outside of the Asia Pacific region, key international elections will include those of the US and, most likely, the UK. If incumbents are ousted, we will be mindful of the potential resulting policy changes.

Read our full 2024 outlook here: Outlook 2024: Asia Pacific – A two-way pull for stock markets? – Jupiter Asset Management (jupiteram.com)

The Jupiter Asia Pacific Income Fund (IRL)

Performance chart
Past performance is no indication of current or future performance and does not take into account commissions and costs incurred on the issue/redemption of shares. Returns may increase or decrease as a result of currency fluctuations.
Source: Morningstar, NAV to NAV, gross income reinvested, net of fees, in USD, to 31.12.2023. Fund inception: 13.09.2000. Since FM inception: 22.03.2023. Peer group: EEA Fund Asia-Pacific ex-Japan Equity. Benchmark: MSCI AC Asia Pacific ex Japan NR USD. In March 2023, the Fund changed its Investment Objective. The performance before this date was achieved under circumstances that no longer apply.
Country weightings: Australia 29.8%, India 18.1%, Taiwan 17.6%, Singapore 11.5%, South Korea 9.5%, Hong Kong 7.0%, Indonesia 5.2%, Thailand 0.8%.

Top 10 holdings: Mediatek 6.5%, ITC 6.3%, TSMC 6.0%, Samsung Electronics 5.5%, Hon Hai 5.2%, BHP 5.2%, Woodside Energy 4.2%, Power Grid 3.8%, Singapore Telecom 3.7%, DBS 3.6%.

Source: Jupiter, FactSet, as of 31.12.2023

Holding examples are for illustrative purposes only and are not a recommendation to buy or sell.
Fund-related 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.
  • 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.
1 2023 Intergenerational Report | Treasury.gov.au

The value of active minds: independent thinking

A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class. As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals 

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.  

Important Information 

This document is intended for investment professionals and is not for the use or benefit of other persons, including retail investors. This document 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 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. The views expressed are those of the authors at the time of writing, are not necessarily those of Jupiter as a whole and may be subject to change. This is particularly true during periods of rapidly changing market circumstances. 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) or any other fund managed by Jupiter Asset Management (Europe) Limited or Jupiter Investment Management Limited. 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.

This information is only directed at persons residing in jurisdictions where the Company and its shares are authorised for distribution or where no such authorisation is required.

The sub fund(s) may be subject to various other risk factors, please refer to the latest sales prospectus for further information.

Prospective purchasers of shares of the sub fund(s) 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 sales prospectus and the Key Investor 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 or can be obtained free of charge upon request from any of:

European countries in which the Company is registered for distribution: Unless otherwise specified in this document, Citibank Europe plc (the Company’s Administrator) is responsible for processing subscription, repurchase and redemption orders and making other payments to Shareholders. Citibank Europe plc, 1 North Wall Quay, Dublin 1, Ireland, email: [email protected]. The following information and documents are available from www.eifs.lu/jupiteram: Information on how orders (subscription, repurchase and redemption) can be made and how repurchase and redemption proceeds are paid; Information and access to procedures and arrangements related to investors’ rights and complaints handling; Information in relation to the tasks performed by the Company in a durable medium; The latest sales prospectus, the articles of association, the annual and semi-annual reports and the Key Investor Documents/Key Investor Information documents. The Manager may terminate marketing arrangements. Information on sustainability-related aspects is available from jupiteram.com.

France: BNP Paribas Securities Services, Les Grands Moulins de Pantin, 9 rue du Debarcadère 93500 Pantin, France.

Hong Kong: Jupiter Asset Management (Hong Kong) Limited, Suite 1706, Alexandra House, 18, Chater Road, Central, Hong Kong.

Italy: Allfunds Bank S.A.U., Milan Branch, Via Bocchetto, 6, 20123 Milano, Italia; Societe Generale Securities Services S.p.A, Via Benigno Crespi 19A – MAC2, Milan. The sub-fund has been registered with the Commissione Nazionale per le Società e la Borsa (CONSOB) for the offer in Italy to retail investors.

Spain: Allfunds Bank, C/ La Estafeta 6, Edificio 3, 28109 Alcobendas, Madrid, Spain. For the purposes of distribution in Spain, the Company is registered with the Spanish Securities Markets Commission – Comisión Nacional del Mercado de Valores (“CNMV”) under registration number 301, where complete information, including a copy of the marketing memorandum, is available from the Company authorised distributors. Subscriptions should be made through a locally authorised distributor. The net asset value is available on www.jupiteram.com.

Switzerland: Copies of the Memorandum and Articles of Association, the Prospectus, KIDs and the annual and semi-annual reports of the Company may be obtained free of charge from BNP Paribas 16 Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich, the Swiss paying agent.

Taiwan: Capital Gateway Securities Investment Consulting Enterprise, 9F/9F-1, No. 171, Songde Road, Xinyi District, Taipei City, Taiwan, R.O.C.

United Kingdom: Jupiter Investment Management Limited (UK Facilities Agent), The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ, United Kingdom. The Fund is recognised by the FCA.

Issued by Jupiter Asset Management (Europe) Limited (JAMEL, the Manager), The Wilde-Suite G01, The Wilde, 53 Merrion Square South, Dublin 2, D02 PR63, Ireland which is registered in Ireland (company number: 536049) and authorised and regulated by the Central Bank of Ireland (number: C181816).

No part of this document may be reproduced in any manner without the prior permission of JAMEL.

For professional investors in LATAM only

Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.

Legal Notice for Residents in the Republic of Argentina: This document includes a private invitation to invest in securities. It is addressed only to you on an individual, exclusive, and confidential basis, and its unauthorised copying, disclosure, or transfer by any means whatsoever is absolutely and strictly forbidden. Jupiter Asset Management (Europe) Limited, will not provide copies of this document, or provide any kind of advice or clarification, or accept any offer or commitment to purchase the securities herein referred to from persons other than the intended recipient. The offer herein contained is not a public offering, and as such it is not and will not be registered with, or authorised by, the applicable enforcement authority. The information contained herein has been compiled by Jupiter Asset Management (Europe) Limited, who assumes the sole responsibility for the accuracy of the data herein disclosed.

Legal Notice for Residents in Brazil: The Funds may not be offered or sold to the public in Brazil. Accordingly, the Funds have not been and will not be registered with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários, the “CVM”), nor have been submitted to the foregoing agency for approval. Documents relating to the Funds, as well as the information contained therein, may not be supplied to the public in Brazil, as the offering is not a public offering of Funds in Brazil, nor used in connection with any offer for subscription or sale of Funds to the public in Brazil.

Aviso Legal para Residentes en Chile: ESTA OFERTA PRIVADA SE INICIA EL DÍA SEGUN LO ESTABLECIDO EN EL TITULO Y SE ACOGE A LAS DISPOSICIONES DE LA NORMA DE CARÁCTER GENERAL Nº 336 DE LA SUPERINTENDECIA DE VALORES Y SEGUROS, HOY COMISIÓN PARA EL MERCADO FINANCIERO. ESTA OFERTA VERSA SOBRE VALORES NO INSCRITOS EN EL REGISTRO DE VALORES O EN EL REGISTRO DE VALORES EXTRANJEROS QUE LLEVA LA COMISIÓN PARA EL MERCADO FINANCIERO, POR LO QUE TALES VALORES NO ESTÁN SUJETOS A LA FISCALIZACIÓN DE ÉSTA; POR TRATAR DE VALORES NO INSCRITOS NO EXISTE LA OBLIGACIÓN POR PARTE DEL EMISOR DE ENTREGAR EN CHILE INFORMACIÓN PÚBLICA RESPECTO DE LOS VALORES SOBRE LOS QUE VERSA ESTA OFERTA; ESTOS VALORES NO PODRÁN SER OBJETO DE OFERTA PÚBLICA MIENTRAS NO SEAN INSCRITOS EN EL REGISTRO DE VALORES CORRESPONDIENTE.

Legal Notice for Residents of Colombia: This is not an offer of securities in Colombia or to any Colombian national, citizen or resident of Colombia or a corporation or partnership organized under the laws of Colombia or having a principal place of business in Colombia (“Colombian Residents”). All information, statistics, data and projections provided herein (the “Information”) along with the prospectus of each one of the funds (the “Prospectus”) are not intended for distribution, promotion or marketing purposes to Colombian Residents. Both the Information and Prospectus: (i) have been drafted, prepared and listed for investment professionals and are not intended to be addressed to any individual investor or to the general public in Colombia; and (ii) does not constitute a public offer under the current provisions of Colombia as they are not being offered or addressed to an undetermined amount of people or to more than one hundred individually identified potential investors. The Information and Prospectus listed herein are not an invitation to subscribe for units in funds or any other fund managed by Jupiter (the “Funds”). Funds’ units mentioned in this Prospectus have not been, and will not be, registered under any applicable securities laws in Colombia. Therefore, they may not be publicly offered in Colombia or to or for the benefit of a Colombian Resident (as defined above). The Funds may not be distributed, promoted or marketed in Colombia or to Colombian residents, unless such promotion and marketing is performed by an authorized distributor in compliance with Part 3 of Decree 2555 of 2010 and any other applicable rules and regulations related to the promotion of foreign funds in Colombia as amended from time to time. The Information and Prospectus is listed for general guidance only, and it is the responsibility of any person or persons in possession of this documentation to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Potential applicants for Fund’s units should inform themselves of any applicable legal requirements, exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile.

Legal Notice for Residents of Mexico: The securities have not been and will not be registered with the National Registry of Securities, maintained by the Mexican National Banking and Securities Commission and, as a result, may not be offered or sold publicly in Mexico. The fund and any underwriter or purchaser may offer and sell the securities in Mexico on a private placement basis to Institutional and Accredited Investors pursuant to Article 8 of the Mexican Securities Market Law.

Legal Notice for Residents of Paraguay: The Shares have not been registered with the Commision Nacional de Valores of Paraguay (CNV), neither with the Stock Exchange of Asuncion (BVPASA) and are being placed by means of a private offer. CNV nor BVPASA has not reviewed the information provided to the investor. This document is only for the exclusive use of specific investor in Paraguay and is not for public distribution.

Legal Notice for Residents of Peru: The funds have not been registered before the Superintendenciadel Mercado de Valores(SMV) and are being placed by means of a private offer. SMV has not reviewed the information provided to the investor. This document is only for the exclusive use of institutional investors in Peru and is not for public distribution.

Legal Notice for Residents of Uruguay: The sale of the securities qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627. The securities must not be offered or sold to the public in Uruguay, except in circumstances which do not constitute a public offering or distribution under Uruguayan laws and regulations. The securities are not and will not be registered with the Financial Services Superintendency of the Central Bank of Uruguay. The securities correspond to investment funds that are not investment funds regulated by Uruguayan law 16,774 dated September 27, 1996, as amended.