How to navigate investing in Asia
The Asia Pacific region is home to some of the world’s fastest-growing economies. In 2024, ...
Jupiter Asian Income
Well-known Asian income manager Jason Pidcock combs the breadth of the Asia Pacific market in search of large companies with reliable dividends that can deliver both income and growth for investors. Jupiter Asian Income fund aims to capitalise on the opportunities of today, as well as the potential of tomorrow, and is not afraid to hold much more or less of certain countries than its benchmark in pursuit of this aim.
Our opinion
Jupiter Asian Income fund’s higher developed market holdings, notably in Australia, as well as its income mandate, make it a relatively defensive Asia Pacific option. Jason is well versed on the politics and economics of every country within his remit, and he makes carefully considered stock choices. Long-term UK investors looking for exposure to the region’s enticing demographics, both now and into the future, may find the focus on dividend yield and dividend growth opportunities particularly attractive.Company description
Founded in 1985, Jupiter Asset Management has grown from a specialist investment boutique to a global fund management company. It provides a range of products from bond and equity funds to multi-asset strategies for both retail and institutional clients. Jupiter is a strong proponent of active management and therefore gives its managers the freedom to run their funds their way, without having to adhere to a 'house' view. In July 2020, Jupiter completed its acquisition of Merian Global Investors.
Fund manager
Jason Pidcock has been investing in Asia Pacific stocks since 1993 and ran the successful - formerly Elite Rated - Newton Asian Income fund for ten years until he left to join Jupiter in 2015. He launched the Jupiter Asian Income fund with a very similar mandate to his previous porfolio and is also responsible for expanding the firm’s Asian income strategy. Prior to his role at Newton, Jason worked at BP Investment Management and Henderson Investment Management.
Politicians and central bankers may erode your savings via taxation and inflation. I do my best to increase them.
Jason PidcockFund manager
Investment process
Jason will predominantly look for large companies that are leaders in their markets, from the more developed countries in the Asia Pacific region, including Australia and New Zealand. The fund’s construction is primarily driven by stock selection, though Jason believes it is crucial to understand the economic context and does a lot of reading and studying of the region. The process will predominantly look for companies with a higher dividend yield, but has scope for up to 20% in stocks that offer dividend growth opportunities which will help increase the fund’s dividend over time. With this strategy, Jason aims to yield 20% more than the respective benchmark. The portfolio is typically high conviction with between 30-50 stocks held.
ESG
ESG - Limited
The primary goal of this fund is to provide strong, long-term returns for investors from a combination of income and capital growth. Jason considers ‘stewardship’ to be an integral part of the process, which includes the consideration of all risks the portfolio is exposed to, such as ESG factors. He incorporates this on a case-by-case basis, with each company’s individual position addressed in isolation. Each stock is reviewed for the potential ESG exposure it offers the fund, and whether or not this risk is priced in to the stock’s valuation. The outcome of this analysis will affect the investment decision, including the position size, the engagement strategy with the management should Jason feel there could be improvement, or a sell decision should the situation change going forward.
Risk
Asian equities generally carry more risks than UK or other developed stock markets and regional currency fluctuations add to risk levels. However, Jupiter Asian Income fund does have exposure to a range of different currencies which should help with stability. It also diversifies across different sectors. The income focus has helped to make the fund less volatile than its peers and its benchmark. Jason is also very aware of liquidity risk and being able to trade his stocks at reasonable levels, a risk he factors in when building portfolios.
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