Jupiter has relaunched Jupiter Asia Pacific, a sub fund of the Jupiter Global Fund SICAV, as Jupiter Asia Pacific Income, a fund that will offer investors a portfolio of mainly large-cap Asian equities aimed at delivering income with capital growth over the long term, offering diversification across the Asia Pacific region. It will be managed by Jason Pidcock, Jupiter’s head of strategy, Asian Income.
A high conviction portfolio of typically 40–50 stocks, Jupiter Asia Pacific Income will have a bias towards some of the developed markets in the region including Australia, New Zealand and Singapore, whilst also seeking exposure to well managed large capitalised companies in Hong Kong, Taiwan, the Philippines and other markets. Pidcock expects that the fund will have a high active share, no country or sector constraints, relatively low turnover and low cash levels.
Pidcock, who joined the company in November 2015, has over 20 years’ experience investing in Asia. At Jupiter, Pidcock manages an Asian Income unit trust, which launched in March 2016 in the UK. In his previous role, Pidcock managed a £4.4bn Asian income portfolio, delivering outperformance of benchmark and peer group average over the five years to 30 April 2015.
Pidcock uses a fundamentals-based investment strategy, looking to invest in businesses which, in his view, have the potential to grow. He also looks for a commitment to sharing profits with shareholders through dividends where it is reasonable to do so. Making an assessment of company management is a key part of his strategy.
The company-level analysis that will drive the portfolio sits within a context of wider macroeconomic trends and the manager reviews the broader political and economic environment in the region as part of his investment decisions.
“The development of a dividend paying culture in Asia means there are appealing yields that can be found. I believe increasing levels of infrastructure development are also creating a broad choice of opportunities. I am also interested in the service sector which has become a key driver of trade growth which is in turn benefiting many dividend-paying companies,” Pidcock says.
Peter Swarbreck, head of Asia Pacific, at Jupiter Asset Management, said: “Jason has a deep knowledge of Asia’s strongest listed businesses and well established communications channels with their management teams. We believe that Jupiter Asia Pacific Income will prove an attractive proposition for investors looking for geographical diversification within Asia through exposure to both developing and more developed countries. We look forward to making Jason’s considerable talents accessible to our growing client base.”
