Our investment approach
Overview
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13.5%
25.3%
61.3%
0.0%
Source: Jupiter/FactSet, as at 31.10.23.
Figures grossed to 100%.
< $3bn
$3-10bn
$10-30bn
> $30bn
Focused approach
Best-in-class businesses, avoiding duplication
Sector 'winners' are typically larger players
Widely researched, better information
Size is not a growth barrier
Can generate superior total returns
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Why large caps?
Market cap (USDbn, % Nav)
Distinctive focus on large, liquid companies
Asia Pacific offers a wealth of income and growth opportunities
While many consider the Asia Pacific region to be an emerging markets play, it’s also home to several developed market economies with solid fundamentals, like Australia – which is currently the fund’s largest country weighting – Singapore and Taiwan. Jason and Sam are also finding many attractive opportunities in India. They choose to avoid investing in mainland China given their ongoing concerns about its political nature, both domestically and in relation to other countries.
Source: Jupiter, as of 30.11.23.
Our current geographic exposure
Jupiter
Asia Pacific Income Fund (IRL)
The Asia Pacific (ex Japan) region is home to many fast-growing economies with exciting domestic growth stories, but also to a wealth of world-class businesses, many of which are the biggest and best at what they do.
Jason Pidcock & Sam Konrad, Investment Managers, Asian Equity Income
Talking factsheet
Jason Pidcock gives an overview of Jupiter’s Asian equity income strategy, how the investment process works, and how the team seek to generate alpha.
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The Jupiter Asia Pacific Income Fund (IRL) aims to deliver greater total returns than the MSCI Asia Pacific ex Japan Index, net of fees, over rolling three-year periods. As well as aiming to deliver attractive total returns, investment managers Jason Pidcock and Sam Konrad look to provide a solid dividend income stream, by identifying companies in the Asia Pacific (ex Japan) region that have both the ability and willingness to pay dividends, while also being mindful of investing in companies with strong growth potential.
Applying decades of experience, Jason and Sam enlist top-down views to aid high conviction stock picking, with a focus on identifying resilient companies with strong balance sheets, pricing power, good liquidity, and attractive dividend policies. They aim to provide a level of income at least 20% higher than the benchmark, the MSCI AC Asia Pacific ex Japan Index.
OUR INVESTMENT APPROACH
Top-down stock picking
~30 high conviction stocks
2,000+ to 570 stocks
570 to 100 stocks
Universe
Investible universe
Portfolio construction
MACRO FACTORS
• Macroeconomics
• Local & geopolitics
• Demographics
• Liquidity
FUNDAMENTAL ANALYSIS
• Competitive advantage
• Ability to evolve
• Balance sheet strength
• Valuations & dividend yield
OPTIMAL SELECTION
• Income & growth
• Category winners
• Diversification
• Governance
Minimise unnecessary risks
Thinking
Reading
Listening
A concentrated, high conviction portfolio
While the fund can invest across the Asia Pacific (ex Japan) region and market cap, Jason and Sam have a bias towards developed Asia and large-cap companies. Running a concentrated portfolio of around 30 stocks, they only invest in businesses they’re the most confident about, with less than 20% expected turnover over a rolling five-year period.
The investment managers do not use any derivatives, currency hedging or gearing. Liquidity is a key criterion for investment for Jason and Sam – they do not invest in companies with a market cap of less than $3bn, and over 80% of the fund is held in companies with a market cap of more than $10bn.
SOUTH KOREA
TAIWAN
HONG
KONG
AUSTRALIA
INDONESIA
INDIA
SINGAPORE
THAILAND
Meet the team
Talking factsheet
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