For professional investors only. Not for retail investors.
ADD FLAVOUR TO YOUR PORTFOLIO
A S I A N E Q U I T I E S
Jupiter Asia Pacific Income SICAV
03.2017
FONDSFORUM
Ingrid Tharasook
Product Specialist
Asian & Emerging Market Equities
JUPITERAM.COM
Manager profile
Awards and ratings should not be taken as a recommendation.Note: Years of experience and strategies under management as at 31.12.16. AUMs as at 31.01.17.
Jason PidcockFund Management Director
23 years’ industry experience
For professional investors only. Not for retail investors.
Current roleFund Management Director,Head of Strategy, Asian Income
Current responsibilities
Fund Manager, Asian Income Strategy
2015–Present Jupiter Asset Management
2004–2015Newton Investment Management,Fund Manager
1996–2004 BP Investment Management,Fund Manager
1993‒1996Henderson Investment Management,Assistant Fund Manager
1
Strategies under Management AUM*
UK-domiciled Unit Trust £438m
Jupiter Asia Pacific Income (SICAV) $32m
JUPITERAM.COM
Manager’s track record
Past performance is no guide to the future.The Newton Asian Income is a UCITS structure and was managed by Jason Pidcock from 30.11.05 to 30.04.15 prior to joining Jupiter. The performance figures are shown as a representation of Jason’s experience only and are not indicative of any potential future performance. The strategy used for the Newton Asian Income may not be representative of the strategy used for any future funds. Source: FE, bid to bid, net income reinvested, in GBP, from 30.11.05 to 31.01.17. IA = The Investment Association.
-25%
0%
25%
50%
75%
100%
125%
150%
175%
200%
225%
250%
275%
300%
Nov.05 Dez.06 Dez.07 Dez.08 Dez.09 Dez.10 Jän.12 Jän.13 Jän.14 Jän.15 Jän.16 Jän.17
Newton Asian Income / UK-domiciled Unit Trust
FTSE AW AP Ex JPN TR GBP
Peer Group
For professional investors only. Not for retail investors.
2
Garden
leave
JUPITERAM.COM
Stephen Pearson (CIO)
Jupiter Fund Management Team
For professional investors only. Not for retail investors.
3
UK Value (4)
Ben Whitmore (HOS)
Alastair Gunn (FM)
Dermot Murphy (AFM)
Claudia Ripley (PS)
Julie Watson, Seran Tahir (S)
Global (5)
Stephen Mitchell (HOS)
Stuart Cox (FM)
Guy de Blonay (FM)
Dan Carter (FM)
Mitesh Patel (AFM)
Jules Ross-Louis (S)
Seran Tahir (S)
UK Growth (3)
Steve Davies (HOS)
Richard Curling (FM)
James Zimmerman (FM)
Claudia Ripley (PS)
Julie Watson (S)
European Opportunities (3)
Cédric de Fonclare (HOS)
Gregory Herbert (FM)
Tommy Kristoffersen (EA)
Jules Ross-Louis (S)
European Growth (3)
Alexander Darwall (HOS)
Luca Emo Capodilista (FM)
Jordane Guillot (A)
Jules Ross-Louis (S)
US (2)
Sebastian Radcliffe (HOS)
Robert Siddles (FM)
Julie Watson (S)
Absolute Return (3)
James Clunie (HOS)
Michael Buhl-Nielsen (FM)
Ivan Kralj (A)
Magnus Spence (HOI, ALT)
Karla Sells (S)
Emerging Markets (7)
Ross Teverson (HOS)
Ben Surtees (FM)
Avinash Vazirani (FM)
Colin Croft (FM)
Amélie Thevenet (AFM)
Charles Sunnucks (AFM)
Aimee Truesdale (A)
Ingrid Tharasook (PS)
Seran Tahir (S)
Fixed Income (5)
Ariel Bezalel (HOS)
Harry Richards (AFM)
Rhys Petheram (FM)
Alejandro Arevalo (FM)
Fabrizio Palmucci (PS)
Katharine Dryer (HOI, FIMA)
Karla Sells (S)
Independent Funds (5)
John Chatfeild-Roberts (HOS)
Algy Smith-Maxwell (FM)
David Lewis (FM)
Amanda Sillars (FM)
Alastair Irvine (PS)
Karla Sells (S)
Environment & Sustainability (4)
Charles Thomas (HOS)
Abbie Llewellyn-Waters (FM)
Mark Evans (A)
Jon Wallace (A)
Julie Watson (S)
Portfolio Analytics (7)
Mark Dempsey
Simon Crawford
Carli Prewett
Chris Hayes
James Thompson
Payal Bagchi
Gergana
Kabakova
Dealers (12)
Jason McAleer
Dave Flanagan
Carl Westover
Paul McKay
Andrew Withey
Mark Robinson
Jeremy Griggs
Steve Naish
Mike Poole
Tanya Hoeftmann
Donna Briggs
Heather Naylor
Corporate Governance (2)
Ian McVeigh
Ashish Ray
Amie Reid (S)
Equities Fixed Income Specialist
Asian Income (2)
Jason Pidcock (HOS)
Ingrid Tharasook (PS)
Seran Tahir (S)
Investment Risk (3)
Tim Shaw
Tim Wijsbroek
Sree Selvam
CIO Office (4)
Amit Narendra (ISM)
Katharine Dryer (HOI, FIMA)
Magnus Spence (HOI, ALT)
Kristian Herrington (ISA)
Tracey Smith (PA)
Multi-Asset (3)
Miles Geldard (HOS)
Lee Manzi (FM)
Joseph Chapman (A)
Fabrizio Palmucci (PS)
Katharine Dryer (HOI, FIMA)
Julie Labelle (S)
Credit Research (7)
Hilary Blandy (HOR)
Nicole Weiss (A)
Luca Evangelisti (A)
Vikram Aggarwal (A)
Adam Darling (A)
Joe Moxham (A)
Christian Holder (A)
Katharine Dryer (HOI, FIMA)
Julie Labelle (S)
Multi-Asset
Credit Research
Support Function
Source: Jupiter, January 2017. Please note that some fund managers are members of more than one team (italics).
Key: CIO – Chief Investment Officer; HOI, FIMA – Head of Investments, Fixed Income & Multi Asset; HOI ALT, Head of Investments, Alternatives; HOS – Head of
Strategy; FM – Fund Manager; AFM – Assistant Fund Manager; ISM – Investment Strategy Manager; ISA – Investment Strategy Analyst; HOR– Head of Research,
Credit; PS – Product Specialist; EA – Equities Analyst; A – Analyst; S – Secretary; PA – Personal Assistant;
JUPITERAM.COM
Why Asia
Source: *International Monetary fund 2016, **Population Reference Bureau 2014, ***Brooking Institute 2011, ****FTSE All World Index 2016, *****World Trade Organisation 2015. *****FactSet, CLSA, 31.01.17.
Asia: dominant yet overlooked Intra-regional sales, as % of total sales*****
For professional investors only. Not for retail investors.
4
66%
Global growth*
60%Global population**
23%Global consumption***
12%Global indices****
64%
12% 14% 16%20%
13%
67%
16%20%
39%
1% 2%
57%
2%
11%
10%13%
8%
53%
22%
12%6% 4%
10% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
APxJ USA Japan Europe World
AxJ USA Japan Europe Other
JUPITERAM.COM
0
1
2
3
4
5
Australia Singapore Taiwan Germany Japan USA
Equity yield Bond yield
Diverse investment universe
across different sectors
Lessons learned from the
Asian financial crisis
Income-hungry demographics
Why Asian Income
Quoted yields are not guaranteed and may change in the future. The views expressed are those of the presenter at the time of preparation and may change in the future.Source: Bloomberg as at 31.01.17. *Jupiter, 31.01.17. MSCI Indices for Equity yield and 10 year government bond for bond yield.
A compelling macro backdrop Major markets: equity yield vs. 10yr Govt bond yield
Developed Asia: fund yield vs. 10yr Govt bond yield
For professional investors only. Not for retail investors.
5
Fund yield* Govt bond yield
Australia 4.8% 2.8%
Hong Kong 3.3% 2.0%
New Zealand 6.5% 3.4%
Singapore 4.7% 2.5%
Taiwan 3.8% 1.2%
JUPITERAM.COM
Why Asian Income
Quoted yields are not guaranteed and may change in the future. The views expressed are those of the presenter at the time of preparation and may change in the future. Source: FactSet, CLSA. Data as at 31.12.16.Note: 2016F data based on estimates for companies.
0
50
100
150
200
250
300
350
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6F
Dividend yield (FY0) > 4%
Payout (FY0) > 40%
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6
MSCI Asia Pacific ex Japan: high dividend stocks
An Investment ContractWhen companies IPO, they take
capital upfront with the promise to
generate a return for investors.
We only invest in companies that
we believe are able and willing to
deliver on this promise.
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Large caps
Liquid
Competitive advantage
High barriers to entry
Dividend yield
Stocks yielding higher
than the index
Investment universe
The views expressed are those of the presenter at the time of preparation and may change in the future.
For professional investors only. Not for retail investors.
7
MSCI AC
Asia Pacific
ex Japan
Top down Bottom up
Dividend growth
Stocks yielding lower
than the index, but present
growth opportunities
~700stocks
~20%of
holdings
~80%of
holdings
China slowdown∴ Minimal direct
exposure to China
Fed hike & dollar
strengthening ∴ Limited exposure
to emerging Asia
Trade
protectionism∴ Prefer domestic
consumption stocks
Systematic
Geopolitical or
corruption risk ∴ Cautious Indonesia
and Pakistan
Search for
the unloved∴ Bullish Philippines
Rising bond yields∴ Retain so-called ‘bond proxy’ (i.e. high-yielding)
stocks throughout short-term volatility
Volatility in
commodities∴ No direct exposure
to oil, mining or
commodity stocks
JUPITERAM.COM
Current holdings
Any holdings examples are used for illustrative purposes only and should not be viewed as investment advice. Source: Jupiter as at 31.01.17. *Top 10 Holdings.
Dividend yield Dividend growth
For professional investors only. Not for retail investors.
8
832
GT Capital
SM Prime
Universal Robina
AGL Energy
Amcor
APA
Dexus Property
IAG
Macquarie*
Orora
Scentre
Suncorp
Sydney Airport
Telstra
Transurban
Vicinity Centres
Wesfarmers
Westpac
Ascendas REIT
Mapletree Commercial Trust
Mapletree Logistics Trust
Singapore Telecom
ST Engineering
Australia Singapore
New Zealand
Meridian Energy*
Spark
Hong Kong
Link REIT*
NWS Holdings*
Sands China*
Taiwan
Delta Electronics
Hon Hai*
Taiwan Mobile
TSMC*
China
Hengan
Macquarie Korea Infrastructure Fund
Thailand
South Korea
Samsung Electronics*
South Korea
Hong Kong
AIA*
China
Tencent*
Malaysia
IHH
InTouch
Philippines
Thailand
Bangkok Dusit Medical
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Country and sector exposure
Notes: *Macquarie Korea Infrastructure fund, **Amcor and Orora: plastics companies.Source: Jupiter as at 31.01.17.
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9
Taiwan Hong Kong South Korea Singapore Australia New Zealand China Malaysia Philippines Thailand Pakistan India Indonesia
Consumer
Staples ■ ■ ■
Consumer
Discretionary ■
Financials ■ ■* ■■■■ ■
Telecomms ■ ■ ■ ■ ■
IT ■■■ ■ ■
Industrials ■ ■ ■■
Health Care ■ ■
Real Estate ■ ■■■ ■■■ ■
Utilities ■■ ■
Energy
Materials ■■**
■1 holding
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Key exposures
For professional investors only. Not for retail investors.
10
Roads
Ports Malls
Casinos
Airports HospitalsWare-
houses
Car
parks
PipelinesPlanes
(Servicing)
Office
buildingsBridgesCars
(Leasing)
Industrial
Property
Infrastructure Tourism Real Assets
JUPITERAM.COM
Top down
The views expressed are those of the presenter at the time of preparation and may change in the future.Any holdings examples are used for illustrative purposes only and should not be viewed as investment advice.
For professional investors only. Not for retail investors.
11
We are excited about the
Philippines: it is one of
the fastest-growing
economies in the region,
with an excellent
demographic profile.
Therefore, we take a
top-down view on
this market. We look for
companies that will benefit
from this growth.
Shopping malls
■ 95% occupancy rate
■ Dominance of shopping malls
(vs. online) likely to remain: less
than 3% of adult population have a
credit card
■ Positive developments around
effective REIT legislation
Snacks
■ Leading brand of snack foods
■ Growing middle class (and
discretionary consumption)
■ Competes alongside international
conglomerates, owing to nostalgic
brand power
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Bottom up
The views expressed are those of the presenter at the time of preparation and may change in the future.Any holdings examples are used for illustrative purposes only and should not be viewed as investment advice.
For professional investors only. Not for retail investors.
12
We are confident with
Australia. It is a well-run
country, with a strong,
well-diversified economy
that has enjoyed 25 years
of uninterrupted growth.
Australia not only benefits
from its own domestic
consumption, it is also
uniquely-positioned to
capture the wider
Asian growth story.
Therefore, we can be
bottom-up in this market.
Packaging
■ World’s largest flexible plastics
company
■ Balanced global footprint:
1/3 EM / 1/3 Europe / 1/3 USA
■ High-profit margin business model
Airports
■ 40 million passengers per year
– nearly twice the size of the entire
country’s population
■ Diverse clientele: no nation makes
up more than 7% of visitors
■ Continuous influx of Asian tourism
JUPITERAM.COM
Jupiter Asia Pacific Income
Source: Morningstar, gross income reinvested, net of fees, in USD, as at 31.01.17. Past performance is no guide to the future.
Investing for three-way diversification Performance
1 month
%
3 month
%
6 month
%
Jupiter Asia Pacific
Income (L USD Acc)4.7 1.4 -2.6
MSCI AC Asia Pac Ex
JPN GR USD5.8 2.4 4.6
Peer group average 5.7 1.9 2.5
For professional investors only. Not for retail investors.
13
Source of income
Currency exposure
Country exposure
JUPITERAM.COM
This presentation is intended for investment professionals and not for thebenefit of retail investors. Market and exchange rate movements can
cause the value of an investment to fall as well as rise, and you may getback less than originally invested. Initial charges are likely to have agreater proportionate effect on returns if investments are liquidated in the
shorter term. Any data or views given should not be construed asinvestment advice.
Past performance is no indication of current or future performance.
Performance data does not take into account commissions and costsincurred on the issue and redemption of shares. Company examples arefor illustrative purposes only and are not a recommendation to buy or sell.
Quoted yields are not guaranteed and may change in the future. Awardsand ratings should not be taken as a recommendation.
Every effort is made to ensure the accuracy of the information but no
assurance or warranties are given. It is not an invitation to subscribe forshares in the Jupiter Global Fund (the Company) or any other fundmanaged by Jupiter Asset Management Limited. The Company is a
UCITS fund incorporated as a Société Anonyme in Luxembourg andorganised as a Société d’investissement à Capital Variable (SICAV). Thisinformation is only directed at persons residing in jurisdictions where the
Company and its shares are authorised for distribution or where no suchauthorisation is required.
Jupiter Asia Pacific Income SICAV: The fund invests a significant
portion of the portfolio in emerging markets, which carry increased liquidityand volatility risks. This fund invests mainly in shares and it is likely toexperience fluctuations in price which are larger than funds that invest
only in bonds and/or cash. Quarterly income payments will fluctuate. All ofthe fund's expenses are charged to capital, which can reduce the potentialfor capital growth. The KIID and Prospectus are available from Jupiter on
request. This fund can invest more than 35% of its value in securitiesissued or guaranteed by an EEA state.
The sub-fund(s) may be subject to various other risk factors, please refer
to the Prospectus for further information.
Prospective purchasers of shares of the sub-fund(s) of the Companyshould inform themselves as to the legal requirements, exchange control
regulations and applicable taxes in the countries of their respectivecitizenship, residence or domicile. Subscriptions can only be made on thebasis of the current prospectus and the KIID, accompanied by the most
recent audited annual report and semi-annual report. These documentsare available for download from www.jupiteram.com. The KIID and,
where required, the Prospectus, along with other advertising materialswhich have been approved for public distribution in accordance with thelocal regulations are available in English, Dutch, French, Finnish, German,
Italian, Portuguese, Spanish and Swedish. Before subscribing, pleaseread the Prospectus. Hard copies may be obtained free of charge uponrequest from any of:
The Company Custodian and Administrator: JP Morgan BankLuxembourg S.A, 6 Route de Trèves, Senningerberg, L-2633,Luxembourg; and from certain of the Company’s distributors;
Austria: Jupiter Asset Management Limited, Vienna branch, Le PalaisBusiness Residence, Herrengasse 1-3, 1010 Vienna, Austria; Belgium:BNP Paribas Securities Services, Boulevard Louis Schmidt 2, 1040
Brussels, Belgium; France: CACEIS Bank France, 1/3 Place Valhubert,75013 Paris, France; Germany: Jupiter Asset Management Limited,Munich branch, whose registered office is at: Apartment 6, Weissenburger
Platz 3, 81667 Munich, Germany; from Jupiter Asset ManagementLimited, Frankfurt branch, whose registered office is at: Roßmarkt 10,60311 Frankfurt, Germany; Italy: BNP Paribas Securities Services, Milan
branch, Piazza San Fedele 1/3, 20121 Milano, Italy. The Fund has beenregistered with the Commissione Nazionale per le Società e la Borsa(CONSOB) for the offer in Italy to retail investors; Luxembourg: the
Company's registered office; 6 Route de Trèves, Senningerberg, L-2633,Luxembourg; Spain: Allfunds Bank, C/ La Estafeta 6, Edificio 3, 28109Alcobendas, 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 registrationnumber 1253, where complete information, including a copy of the
marketing memorandum, is available from the Company authoriseddistributors. Sweden: Jupiter Asset Management Limited, Nordic branch,4th Floor, Strandvagen 7A, 114 56 Stockholm, Sweden; Switzerland:
Copies of the Memorandum and Articles of Association, the Prospectus,KIIDs and the annual and semi-annual reports of the Company may beobtained free of charge from the Company’s representative and paying
agent in Switzerland, BNP Paribas Securities Services, Paris, Succursalede Zurich, whose registered office is at Selnaustrasse 16, 8002 Zurich,Switzerland; United Kingdom: Jupiter Asset Management Limited (the
Investment Manager), registered address: The Zig Zag Building, 70Victoria Street, London, SW1E 6SQ, United Kingdom.
This document contains information based on the FTSE Asia Pacific exJapan Index. ‘FTSE®’ is a trade mark owned by the London Stock
Exchange Plc and is used by FTSE International Limited (‘FTSE’) underlicence. The FTSE Asia Pacific ex Japan is calculated by FTSE. FTSEdoes not sponsor, endorse or promote the product referred to in this
document and is not in any way connected to it and does not accept anyliability in relation to its issue, operation and trading. All copyright anddatabase rights in the index values and constituent list vest in FTSE.
This document contains information based on the MSCI AC Asia PacificEx. Japan Index. Neither MSCI nor any other party involved in or relatedto compiling, computing or creating the MSCI data makes any express or
implied warranties or representations with respect to such data (or theresults to be obtained by the use thereof), and all such parties herebyexpressly disclaim all warranties of originality, accuracy, completeness,
merchantability or fitness for a particular purpose with respect to any ofsuch data. Without limiting any of the foregoing, in no event shall MSCI,any of its affiliates or any third party involved in or related to compiling,
computing or creating the data have any liability for any direct, indirect,special, punitive, consequential or any other damages (including lostprofits) even if notified of the possibility of such damages. No further
distribution or dissemination of the MSCI data is permitted without MSCI’sexpress written consent
Industry Classification Benchmark (‘ICB’) is a product of FTSE
International Limited (‘FTSE’) and all intellectual property rights in and toICB vest in FTSE. Jupiter Asset Management Limited has been licensedby FTSE to use ICB. ‘FTSE®’ is a trade mark owned by the London Stock
Exchange Plc and is used by FTSE under licence. FTSE and its licensorsdo not accept liability to any person for any loss or damage arising out ofany error or omission in ICB.
Issued by The Jupiter Global Fund and, in some instances, Jupiter AssetManagement Limited which is authorised and regulated by the FinancialConduct Authority.
No part of this presentation may be reproduced in any manner without theprior permission of the Company or Jupiter Asset Management Limited.
Disclosure
11842_69211_SCV_ASIA_PACIFIC_INCOME_JP_0217
ON THE PLANET TO PERFORM
For professional investors only. Not for retail investors.
14