The Asia Pacific (ex Japan) region offers a broad range of compelling income and growth opportunities in both developed and emerging markets, across sectors.

 

Along with Australia and Taiwan, we view Singapore as one of the most attractive developed markets within the region. Singapore provides a unique blend of developed and emerging market exposure: as well as offering developed market quality and corporate governance, it also acts as a gateway to large, growing emerging markets in the rest of Southeast Asia.

Asia’s powerhouse?

Singapore boasts the highest GDP per capita in Asia, arguably making it Asia’s most developed economy. It has a stable political system, and a progressive, well-functioning legal and regulatory framework, which is transparent and business friendly. It is home to a range of well-managed companies with strong corporate governance – many of whom are willing, and able, to pay out attractive dividends – and it is known worldwide as being a great place for expatriates to live and for businesses to operate from.

 

From a geopolitical point of view, Singapore is well positioned too, as it enjoys good relations with most of the world. Many multinational companies want to operate from Asia, and Singapore is increasingly becoming the preferred location for global businesses. It has been taking market share from Hong Kong, a trend that we believe is likely to continue, partly due to ongoing tensions between the West (particularly the US) and mainland China.

Gateway to Southeast Asia

Singapore also functions as a gateway to Southeast Asia, offering exposure to large, growing emerging markets in the region like Malaysia, Thailand, the Philippines and Vietnam, while adhering to high governance and regulatory standards.

 

By investing in Singapore instead of making direct investments in its neighbouring countries, we do not have to take on some of the risks associated with political systems that are not as conducive to long-term investment, liquidity that is often not as high, and valuations that are not as attractive when compared to their respective 10-year government bond yields.

Diverse opportunities

In the Jupiter Asian Equity Income strategy, we are top-down stock pickers, taking into consideration the macroeconomic environment to help us identify which countries we want to invest in. Then, within those countries, we look for the best “quality income” opportunities – companies that are highly liquid, with strong balance sheets, good governance, solid barriers to entry, and an ability to pay and grow dividends.

 

Given the attractive quality income opportunities available there, we have been overweight Singapore for some time. The four Singapore-listed companies we hold all operate in very different industries from one another, with no overlap, offering diversification.

 

Singapore Telecommunications (“SingTel”): SingTel is a top 10 holding in the strategy, which has performed well year to date. We believe the business is well managed and we applaud its focus on maximising value from its portfolio of investments and dividend policy. As well as being Singapore’s dominant telecommunications operator, it also owns Singapore’s second largest network in Australia (Optus) and has large stakes in Bharti Airtel in India, Advanced Info in Thailand, Telkomsel in Indonesia and Globe in the Philippines.

 

DBS Group: DBS is one of the largest regional banks in Asia Pacific, and it is often voted the best bank in Asia. It derives its earnings from across the region – from India, through Greater China and across Southeast Asia. It offers a generous dividend yield, and it does not look expensive to us, despite the strong outperformance of its share price.

 

ST Engineering: ST Engineering is the world’s largest airline maintenance, repair and overhaul (MRO) business. It benefits from more air travel within Asia, as well as into and out of the region. It also has a defence arm of its business, which is receiving more orders as governments are increasing their spending on defence. It also operates a Smart City business, which has won contracts in Singapore and elsewhere.

 

Genting Singapore: Genting Singapore is one of two casino operators in Singapore. It manages a large integrated resort which includes theme parks, such as Universal Studios, and helps to attract tourists to Singapore from across the region. We like its seven-year remodelling plan and are comforted by the large net cash position on its balance sheet.

The best of both worlds

Singapore offers a unique combination of developed market quality and governance and exposure to growing emerging markets in Southeast Asia. With a stable political environment, transparent legal framework and strong corporate governance, Singapore provides a favourable business environment for both Asian and multinational companies. We are able to identify a number of attractive “quality income” opportunities in Singapore, across sectors, providing us with diversified exposure. We believe each of these companies has the potential to continue to grow their businesses and to deliver attractive, and growing, income streams.

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.

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. Company examples are for illustrative purposes only and are not recommendations to buy or sell. 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. The views expressed are those of the individuals mentioned 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, but no assurance or warranties are given. Issued in the UK by Jupiter Asset Management Limited (JAM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ is authorised and regulated by the Financial Conduct Authority. Issued in the EU by Jupiter Asset Management International S.A. (JAMI), registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg which is authorised and regulated by the Commission de Surveillance du Secteur Financier. No part of this document may be reproduced in any manner without the prior permission of JAM/JAMI/JAM HK.

 

*In Hong Kong, investment professionals refer to Professional Investors as defined under the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).and in Singapore, Institutional Investors as defined under Section 304 of the Securities and Futures Act, Chapter 289 of Singapore.

Sólo para inversores profesionales en LATAM

Los resultados pasados no son una guía de los resultados futuros y pueden no repetirse. La inversión implica un riesgo. El valor de las inversiones y los ingresos derivados de las mismas pueden bajar o subir y los inversores pueden no recuperar la cantidad invertida originalmente. Por ello, un inversor no tiene la certeza de obtener beneficios de una inversión y puede perder dinero. Los tipos de cambio pueden hacer subir o bajar el valor de las inversiones en el extranjero.

 Aviso legal para residentes en la República Argentina: Este documento incluye una invitación privada a invertir en valores. Se dirige únicamente a usted de forma individual, exclusiva y confidencial, y su copia, divulgación o transferencia no autorizada por cualquier medio está absoluta y estrictamente prohibida. Jupiter Asset Management Limited no facilitará copias de este documento, ni proporcionará ningún tipo de asesoramiento o aclaración, ni aceptará ninguna oferta o compromiso de compra de los valores aquí mencionados por parte de personas distintas del destinatario. La oferta aquí contenida no es una oferta pública y, como tal, no está ni estará registrada ante la autoridad de aplicación ni autorizada por ella. La información aquí contenida ha sido recopilada por Jupiter Asset Management Limited, que asume la responsabilidad exclusiva de la exactitud de los datos aquí divulgados.

Aviso legal para residentes en Brasil: Los Fondos no pueden ser ofrecidos o vendidos al público en Brasil. En consecuencia, los Fondos no han sido ni serán registrados en la Comisión de Valores Mobiliarios de Brasil (la «CVM»), ni han sido sometidos a la aprobación de dicho organismo. Los documentos relativos a los Fondos, así como la información contenida en los mismos, no podrán ser suministrados al público en Brasil, ya que la oferta no es una oferta pública de Fondos en Brasil, ni utilizados en relación con ninguna oferta de suscripción o venta de Fondos al público en Brasil.

Aviso Legal para Residentes en Chile: Esta oferta privada se inicia el día según lo establecido en el título y se acoge a las disposiciones de la norma de carácter general nº 336 de la Superintendencia de Valores y Seguros. Esta oferta versa sobre valores no inscritos en el registro de valores o en el registro de valores extranjeros que lleva la Superintendencia de Valores y Seguros, 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.

Aviso legal para residentes en México: Los valores no han sido ni serán inscritos en el Registro Nacional de Valores, mantenido por la Comisión Nacional Bancaria y de Valores de México y, en consecuencia, no podrán ser ofrecidos o vendidos públicamente en México. El fondo y cualquier suscriptor o comprador podrán ofrecer y vender los valores en México en base a una colocación privada a Inversionistas Institucionales y Acreditados de conformidad con el artículo 8 de la Ley del Mercado de Valores de México.

Aviso legal para residentes en Paraguay: Las Acciones no han sido registradas en la Comisión Nacional de Valores de Paraguay (CNV), ni en la Bolsa de Valores de Asunción (BVPASA) y se están colocando mediante una oferta privada. La CNV y la BVPASA no han revisado la información proporcionada al inversor. Este documento es sólo para uso exclusivo del inversionista específico en Paraguay y no es para distribución pública.

Aviso legal para residentes en Perú: Los fondos no han sido registrados ante la Superintendencia del Mercado de Valores (SMV) y están siendo colocados mediante una oferta privada. La SMV no ha revisado la información proporcionada al inversionista. Este documento es para uso exclusivo de inversionistas institucionales en el Perú y no es de distribución pública.

Aviso legal para residentes en Uruguay: La venta de los valores califica como una colocación privada de acuerdo con el artículo 2 de la ley uruguaya 18.627. Los valores no deben ser ofrecidos o vendidos al público en Uruguay, excepto en circunstancias que no constituyan una oferta o distribución pública bajo las leyes y regulaciones uruguayas. Los valores no están ni estarán registrados en la Superintendencia de Servicios Financieros del Banco Central del Uruguay. Los valores corresponden a fondos de inversión que no son fondos de inversión regulados por la ley uruguaya 16.774 del 27 de septiembre de 1996 y sus modificaciones.