asian equities - veranstaltung | wiesn euro advisor...

For professional investors only. Not for retail investors.

ON THE PLANET TO PERFORM

A S I A N E Q U I T I E S

Jupiter Asia Pacific Income SICAV

June 2016

Jason Pidcock

Fund Management Director,

Head of Strategy, Asian Income

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Quoted yields are not guaranteed and may change in the future.*The fund has permission to enter into derivative transactions but only for the purposes of efficient management of the portfolio and not for investment purposes.

■ Objective

■ To generate capital growth and income in the long term

■ Investment policy

■ The fund aims to achieve the objective by investing primarily in equities and similar securities of companies

listed or located in the Asia Pacific region (including Australia and New Zealand) excluding Japan

■ Benchmark

■ MSCI AC Asia Pacific Ex. Japan Index

■ Yield

■ The manager seeks to deliver a yield 20% greater than that of the benchmark

■ 40–50 predominantly large cap holdings, no hedging, gearing or use of derivatives*

■ High active share, no country or sector constraints, low turnover and low cash levels expected

Jupiter Asia Pacific Income SICAV


1

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Manager profile

Awards and ratings should not be taken as a recommendation.Note: Years of experience as at 31.03.16.

Jason PidcockFund Management Director

23 years’ industry experience


2

Current roleFund Management Director,Head of Strategy, Asian Income

Current responsibilities

Fund Manager, UK-domiciled Unit Trust, Jupiter Asia Pacific Income SICAV

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

QualificationsGovernment (University of Essex)IMC

31 years’ of investment experience1984: Bought shares for the first time (British Telecom IPO, 3 December)

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Jason Pidcock’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 30.04.15. IA = The Investment Association.

-50%

0%

50%

100%

150%

200%

250%

Nov-05 Oct-07 Sep-09 Jul-11 Jun-13 Apr-15

Gro

wth

Newton Asian Income 191.4%

FTSE Asia Pacific ex Japan 174.4%

IA Asia Pacific excluding Japan 154.1%

191.4%


3

Outperformed the peer group by 37.3% when managing Newton Asian Income Fund. First quartile over the period

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A wealth of experience to draw on

Note: Years of industry experience as at 31.03.16.


4

Jason PidcockHead of Strategy,Asian Income23 years’ experience

Charlie ThomasHead of Strategy,Environment & Sustainability19 years’ experienceTeam size: 3

Guy de BlonayFund Manager,Financials21 years’ experience

Stephen MitchellHead of Strategy, Global35 years’ experienceTeam size: 4

Ross TeversonHead of Strategy, Emerging Markets17 years’ experienceTeam size: 7

Avinash Vazirani Fund ManagerIndia Funds22 years’ experience

Ariel BezalelFund ManagerFixed Income18 years’ experienceTeam size: 9

James ClunieHead of Strategy, Absolute Return23 years’ experienceTeam size: 3

Ben Surtees Fund ManagerAsian Fund16 years’ experience

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The views expressed are those of the presenter at the time of preparation and may change in the future.

■ Strategy will invest (not trade!) in well positioned, well managed companies across the Asia Pacific

(ex. Japan) region with scalable and sustainable business models, compelling valuations and attractive

dividend prospects

■ This will be enabled by a good understanding of the macro and micro environments, assisted by regular

engagement with management teams and background reading

■ Not every single holding in the portfolio must have a higher than average dividend yield

■ A few lower yielding stocks will be included aiming to capture the best total returns on offer. For example,

in the Philippines, which is a preferred domestic market, there are a limited number of higher yielding options

today but there are consumption focused growth stocks which are among the best in the region. Also the

Healthcare sector may offer superior growth opportunities, partly due to demographic and mobility trends, but

limited yields for now

Some further flavour


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The views expressed are those of the presenter at the time of preparation and may change in the future.

■ Development of dividend paying culture in Asia has led to appealing yields to be found across

the region

■ Favourable demographics compared with some regions, such as Europe, but populations still ageing –

which has led to continued encouragement by local investment institutions for companies to pay

reasonable dividends to investors

■ Increasing levels of infrastructure development means a broad choice of high quality investment

opportunities in areas such as toll roads, airports, pipelines, water treatment, utilities and ports

■ Development of trade between Asian countries for manufactured goods and commodities has been

recognised for some time but the service sector is a key driver of trade growth and many dividend

paying companies are benefiting from this

■ Dividend paying companies tend to be stronger investment cases – it is a sign of good governance

when companies acknowledge that as listed entities they have an obligation to share profits with their

owners when it is reasonable to do so

Why Asia for Income?


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JUPITERAM.COM

CLSA universe 2015 dividend payout ratio

Source: CLSA evaluator. Note: Based on Asian Pacific stocks under CLSA coverage.Chart published in CLSA ‘Greed and Fear’, November 2015.


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83%

55% 55%

50% 49% 49%

43%

38%36%

34%

29% 29%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Au

str

alia

Ta

iwan

Ho

ng

Ko

ng

Ma

lays

ia

Sin

gap

ore

Th

ail

an

d

Asia

Pa

cif

ice

x J

ap

an

Ph

ilip

pin

es

Ind

on

es

ia

Ch

ina

Ind

ia

Jap

an

Ko

rea

2015 dividend payout ratio

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MSCI Asia Pacific ex Japan – Stock count for high dividend yield

Source: FactSet, CLSA, February 2016. Data as at 31.12.15.Note: 2015F data based on estimates for companies not yet reported full year results.


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0

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F

Co

un

t

Dividend yield (FY0) > 4% Payout (FY0) > 40%

JUPITERAM.COM

Risk department


9

Neil Duncan

Team (x 5)

Tim Shaw & Tim Wijsbroek

Team (x 3)

Joanna Lee

Team (x 3)

Mark Dempsey

Team (x 6)

Enterprise

Risk

Portfolio

Analytics

Investment

Risk (x 3)

Risk

Projects

Head of Risk

Rupert Corfield

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Investment risk trade cycle


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Portfolio manager

Investment Risk

Compliance

Reporting

Portfolio Analytics

Investment Risk

Ex-Post Ex-Ante

Risk Committee, Audit & Risk

Committee & Jupiter Boards

• Back testing

• Liquidity

• Attribution

• Tracking error

• Performance

Charles River: Pre-trade

compliance checks

Pre-trade analysis e.g.

• Liquidity

• Global risk exposure

• Counterparty analysis

• Stress testing

Investment idea

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Jupiter risk management process: three lines of defence approach


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Compliance department

Risk department

Charles River, Bloomberg,

FactSet, Thinkfolio

Reporting Audit & Risk Committee

Audit partner

Credit Analysts

Risk appetite, KRI’s,

Risk tolerance, RMP

1 Risk owner

3 Internal audit

Risk & Compliance 2Barra, Bloomberg,

FactSet, Riskmetrics

Charles River,

Dealing restrictions /

mandate breaches

Independent in-house

monitoring (Daily)

Executive Risk

Committee (Quarterly)

Counterparty Review Group

(Monthly)

Fund manager

Compliance review and

advice (On-going)

Internal audit review

Rolling audit

Challenge Process

Monthly meeting with PMs

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■ Portfolio stress testing

■ Portfolio back testing

■ Monthly risk reports

■ Monthly performance reports

■ Monthly Risk meetings with

Portfolio managers

Risk reporting cycle

Quarterly Pre-trade

DailyMonthly


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■ Meetings with Portfolio managers

(Head of Risk and CIO)

■ Reporting to Risk Management

Committee and Portfolio

Review Committee

■ Ex-ante Risk analysis

for fund managers

(as required)

■ Portfolio liquidity

■ Portfolio counterparty

exposure

■ Portfolio leverage

■ Portfolio global risk exposure

JUPITERAM.COM

This presentation is intended for investmentprofessionals and not for the benefit of retail investors.Market and exchange rate movements can cause thevalue of an investment to fall as well as rise, and youmay get back less than originally invested. Initialcharges are likely to have a greater proportionateeffect on returns if investments are liquidated in theshorter term. Any data or views given should not beconstrued as investment advice.

Past performance is no indication of current or futureperformance. Performance data does not take intoaccount commissions and costs incurred on the issueand redemption of shares. Company examples are forillustrative purposes only and are not arecommendation to buy or sell. Quoted yields are notguaranteed and may change in the future. Awards andratings should not be taken as a recommendation.

Every effort is made to ensure the accuracy of theinformation but no assurance or warranties are given.It is not an invitation to subscribe for shares in theJupiter Global Fund (the Company) or any other fundmanaged by Jupiter Asset Management Limited. TheCompany is a UCITS fund incorporated as a SociétéAnonyme in Luxembourg and organised as a Sociétéd’investissement à Capital Variable (SICAV). Thisinformation is only directed at persons residing injurisdictions where the Company and its shares areauthorised for distribution or where no suchauthorisation is required.

Jupiter Asia Pacific Income SICAV: The fundinvests a significant portion of the portfolio in emergingmarkets, which carry increased liquidity and volatilityrisks. This fund invests mainly in shares and it is likelyto experience fluctuations in price which are largerthan funds that invest only in bonds and/or cash.Quarterly income payments will fluctuate. All of thefund's expenses are charged to capital, which canreduce the potential for capital growth. The KIID andProspectus are available from Jupiter on request. Thisfund can invest more than 35% of its value in

securities issued or guaranteed by an EEA state.

The sub-fund(s) may be subject to various other riskfactors, please refer to the Prospectus for furtherinformation.

Prospective purchasers of shares of the sub-fund(s) ofthe Company should inform themselves as to the legalrequirements, exchange control regulations andapplicable taxes in the countries of their respectivecitizenship, residence or domicile. Subscriptions canonly be made on the basis of the current prospectusand the KIID, accompanied by the most recent auditedannual report and semi-annual report. Thesedocuments are available for download fromwww.jupiteram.com. The KIID and, where required,the Prospectus, along with other advertising materialswhich have been approved for public distribution inaccordance with the local regulations are available inEnglish, Dutch, French, Finnish, German, Italian,Portuguese, Spanish and Swedish. Beforesubscribing, please read the Prospectus. Hardcopies may be obtained free of charge upon requestfrom any of:

The Company Custodian and Administrator: JPMorgan Bank Luxembourg S.A, 6 Route de Trèves,Senningerberg, L-2633, Luxembourg; and from certainof the Company’s distributors;

Austria: Jupiter Asset Management Limited, Viennabranch, Le Palais Business Residence, Herrengasse1-3, 1010 Vienna, Austria; Belgium: BNP ParibasSecurities Services, Boulevard Louis Schmidt 2, 1040Brussels, Belgium; France: CACEIS Bank France, 1/3Place Valhubert, 75013 Paris, France; Germany:Jupiter Asset Management Limited, Munich branch,whose registered office is at: Apartment 6,Weissenburger Platz 3, 81667 Munich, Germany; fromJupiter Asset Management Limited, Frankfurt branch,whose registered office is at: Roßmarkt 10, 60311Frankfurt, Germany; Italy: BNP Paribas SecuritiesServices, Milan branch, Piazza San Fedele 1/3, 20121

Milano, Italy. The Fund has been registered with theCommissione Nazionale per le Società e la Borsa(CONSOB) for the offer in Italy to retail investors;Luxembourg: the Company's registered office; 6Route de Trèves, Senningerberg, L-2633,Luxembourg; Spain: Allfunds Bank, C/ La Estafeta 6,Edificio 3, 28109 Alcobendas, Madrid, Spain. For thepurposes of distribution in Spain, the Company isregistered with the Spanish Securities MarketsCommission – Comisión Nacional del Mercado deValores (“CNMV”) under registration number 1253,where complete information, including a copy of themarketing memorandum, is available from theCompany authorised distributors. Sweden: JupiterAsset Management Limited, Nordic branch, 4th Floor,Strandvagen 7A, 114 56 Stockholm, Sweden;Switzerland: Copies of the Memorandum and Articlesof Association, the Prospectus, KIIDs and the annualand semi-annual reports of the Company may beobtained free of charge from the Company’srepresentative and paying agent in Switzerland, BNPParibas Securities Services, Paris, Succursale deZurich, whose registered office is at Selnaustrasse 16,8002 Zurich, Switzerland; United Kingdom: JupiterAsset Management Limited (the Investment Manager),registered address: The Zig Zag Building, 70 VictoriaStreet, London, SW1E 6SQ, United Kingdom.

Issued by The Jupiter Global Fund and, in someinstances, Jupiter Asset Management Limited which isauthorised and regulated by the Financial ConductAuthority.

No part of this presentation may be reproduced in anymanner without the prior permission of the Companyor Jupiter Asset Management Limited.

Disclosure

11842_65788_SCV_ASIA_PACIFIC_INCOME_JP_0616

ON THE PLANET TO PERFORM


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