e-fundresearch: "Which are the most important elements in your investment process?"Ben Surtees, Fund Manager, "Jupiter JGF Asia Pacific L USD" (13.07.2011): "Our process focuses on delving below the large-cap universe to try to find small or medium-cap companies that fit into the structural trends that we have identified. The rudimentary investment template utilizes Porters 5 Forces. This highlights all the moving parts of a business/industry and identifies which parts will enhance the sustainability of a company’s profitability.
Additionally the fund manager is not reliant upon investment committees and teams of analysts to dictate what industries and/or stocks should be viable for inclusion into the portfolio. This we believe augments overall accountability. In general, the criteria that tend to feature in relation to companies that I invest in are operations in a growth market, identifiable and predictable revenue streams and strong barriers to entry. This should equate to a fund that is less exposed to the cyclical industries in Asia."
e-fundresearch: "Which regions and/or sectors are currently overweight or underweight in Asia ex Japan equity funds? What are the reasons for it?"
Ben Surtees, Fund Manager, "Jupiter JGF Asia Pacific L USD" (13.07.2011): "At the end of June, the largest country weightings in the fund were China (incl. Hong Kong) and India, reflecting our confidence in the strength of those areas. In terms of both China and India, we believe inflation should peak in the second half of this year which gives us some confidence that the market will rebound. The rest of the fund is relatively evenly distributed among other Asian Pacific countries in line with the size of their markets. In terms of sectors, the largest proportion of the fund – around 33% – is invested in financials, in line with the benchmark, and we are significantly underweight oil and gas holdings. We are particularly focused on consumption-related investments as that is where we see the most attractive growth prospects. More importantly than sector weightings however is the fact the fund manager utilizes themes and trends as a starting point to investment, therefore industry and country weightings are simply a bi-product of this process and the fund weightings are essentially agnostic to its benchmark."
e-fundresearch: "Please comment on the performance and risk parameters of your fund in the current year as well as over the past 3 and 5 years."
Ben Surtees, Fund Manager, "Jupiter JGF Asia Pacific L USD" (13.07.2011): "Year to date, the fund has returned 1.0% vs 1.3% for its benchmark MSCI Asia ex Japan index. Over five years to 30th June 2011, the fund has returned a total of 92.1%. Over that time, the MSCI Asia ex Japan index has returned 74.8%. However, the fund benchmark changed on 1st January 2010 from the FTSE AW Asia Pacific ex Japan, India and Pakistan index to the MSCI AC Asia ex Japan index so this cannot be taken as a direct comparison.
I have a bias toward mid- and small-cap companies, so performance often deviates from that of the benchmark, but overall volatility has been lower. Risk parameters are constant, irrespective of the year. We have internal risk committees and management controls in place to ensure that objectives are met."
e-fundresearch: "Where do you see opportunities and where do you see risks?"
Ben Surtees, Fund Manager, "Jupiter JGF Asia Pacific L USD" (13.07.2011): "The headwinds affecting Asia-Pacific markets are becoming more pronounced. Since the start of the year, the economies of key Asian constituents such as China, India and Singapore have all contracted. The regional slowdown is being affected by ongoing structural issues faced by the US economy in the form of a slowdown in consumption on the back of weakening house prices. Markets have seen the end of the benefits of the post-financial crisis rebound and investors must now wait to see whether there will be a third round of quantitative easing. In this environment, cyclical stocks are likely to underperform. However, on a more positive note, company valuations are becoming much more attractive, and for the patient and disciplined investor, there are some good opportunities emerging. From an investment point of view, the Fund will endeavour to seek out good companies with quality franchises that will prevail regardless of tough economic conditions and we will continue to take advantage of any undue share price weakness that may emerge during volatile periods. Ultimately there remain powerful secular forces that support ongoing economic growth in the East. Disposable income levels are continuing to rise (assisted by ongoing urbanisation), supporting the transition to self-reinforcing growth rather than export-led growth. Asia’s consumption boom may well be just emerging."
e-fundresearch: Thank you for the interview!
Alle Daten per 30.06.2011:
For Professional investors only
Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Services Authority and their registered address is 1 Grosvenor Place London SW1X 7JJ. They are both subsidiaries of Jupiter Investment Management Group Limited and the group is collectively known as "Jupiter”. The above commentary represents the views of the Fund Manager at the time of preparation and may be subject to change and this is particularly likely during periods of rapidly changing market circumstances. Their views are not necessarily those of Jupiter and should not be interpreted as investment advice. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.