Marketing Communication for professional and institutional investors only. Not for retail investors.

Markets are facing many unknowns and potential headwinds this year. In early August, we saw a sharp sell-off in global stock markets, mainly driven by a realisation that the US economy is slowing quite rapidly and concerns the US Federal Reserve may be behind the curve in cutting interest rates, even though inflation numbers have been loath to reach target. However, these sharp sell-offs were followed by a broad and rapid recovery in the days that followed.
Uncertainty and moments of heightened volatility are not unusual for investors. Instead, they are a reminder of the importance of following a robust investment process with a long-term investment horizon and a well-diversified portfolio.
Top-down stock pickers
The macroeconomic framework is a key driver of our portfolio construction, but ultimately, we are stock pickers. We consider a myriad of information, such as political systems, geopolitics, bond yields and global economic forces to help us decide which countries and sectors we want more or less exposure to, as well as those areas we want to avoid investing in. We are high-conviction investors and not index huggers.
A “quality income” style
We do not identify as growth or value investors, instead looking for a combination of the two. We focus on companies with earnings and dividend drivers, strong balance sheets, and adaptable management teams, with shares that are highly liquid. Compared to the fund’s benchmark, the MSCI AC Asia Pacific ex Japan Index, our portfolio typically has higher margins and return on equity (ROE), lower price-to-earnings and lower price-to-book multiples.

Our portfolio is diversified: we have exposure to both developed and emerging markets, investing in some businesses with revenues that are highly connected to the global economy, as well as others that are more “remote”. We choose to hold some cyclical stocks, as well as stocks that have very defensive business models. We hold some higher yielding, lower growth, more value-orientated stocks, as well as some lower yielding, higher growth stocks.

Long-term investors, with low turnover rates
We are not traders; instead, we make long-term investments with low turnover rates. We expect our annual average turnover to be no more than 20% over a rolling five-year period. If new information makes us change our minds about a position, our focus on high liquidity does allow us to change our positioning accordingly, however.
Highly experienced team
We have a combined 50 years’ relevant experience working in Asian markets. Our team size means we are flexible, nimble and dynamic, and we are the key decision makers. We are focused solely on the Jupiter Asian Equity Income strategy – we manage no other strategies. Jason has managed Jupiter’s Asian Equity Income strategy since its inception in March 2016, and Sam joined Jupiter as a co-manager on the strategy in 2022.
Solid performance
The Jupiter Asia Pacific Income Fund (IRL) is now top decile in its peer group over all time periods: one month, three months, year-to-date, one year, three years and five years. Since we took over management of the fund in March 2023, our low beta strategy has outperformed a rising market, with less volatility than the benchmark or peers.
Jupiter Asia Pacific Income Fund (IRL)
(performance as of 31.07.24)

Cumulative performance (%)

Rolling 12-month performance (%)

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 31.07.24. Fund inception: 13.09.00. *Since fund manager inception: 22.03.23. Peer group: EAA 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.

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.

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 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 www.jupiteram.com.

For professional investors in US Offshore 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.

The fund has not been registered under the United States Investment Company Act of 1940, as amended, nor the United States Securities Act of 1933, as amended. None of the shares may be offered or sold, directly or indirectly in the United States or to any US Person, unless the securities are registered under the Act, or an exemption from the registration requirements of the Act is available. A US Person is defined as (a) any individual who is a citizen or resident of the United States for federal income tax purposes; (b) a corporation, partnership or other entity created or organized under the laws of or existing in the United States; (c) an estate or trust the income of which is subject to United States federal income tax regardless of whether such income is effectively connected with a United States trade or business.

This presentation 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 no guide to the future. 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. Awards and ratings should not be taken as a recommendation. The views expressed are at a point of time and are 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.

Issued 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.

No part of this presentation may be reproduced in any manner without the prior permission of JAM.