We are delighted to announce a new investment opportunity to our valued clients – Jupiter Asian Income, managed by renowned investor Jason Pidcock - and are pleased to offer Chelsea clients a special rebate of 0.08% off the Annual Management Charge*.
Jason Pidcock is an experienced Asian Income investor and previously managed the successful Newton Asian Income fund. The fund will have a concentrated portfolio of 40 to 50 stocks with a focus towards larger companies that have attractive yields. There is a bias towards more developed Asian markets such as Australia and New Zealand, while the fund will be significantly underweight China/Hong Kong stocks and will not have any exposure to India and Indonesia at the outset.
At a breakfast meeting the week before launch, Jason said as well as offering UK-focused investors diversification in terms of income sources and currency exposure, the fund would be a diversifier for those holding a portfolio of Asia investments, due to some key differences in strategy and holdings between the Jupiter fund and its competitors.
In addition to the Australia/New Zealand overweight, he emphasises the fund's objective to generate both income and capital growth, aiming for a 50/50 split between the two in terms of contributions to returns over the long term.
Many of you will remember Jason from when he ran the Newton Asian Income fund. That fund was on the Chelsea Core Selection for four and a half years until he left. During that time the fund returned 53%, comfortably beating the average Asia Pacific ex Japan fund which only returned 30%.**
Jason did an excellent job at his previous fund at Newton. He comfortably beat the market whilst still providing a good income. We are confident that he can repeat the performance at Jupiter. The fund will be very different to most Asian funds because it will have a greater exposure to more developed markets such as Singapore, Australia and New Zealand. The new fund will be slightly more concentrated and not quite as strict with its yield requirements, giving Jason more flexibility. We think both these changes are positive.
For example, at the moment, Jason says the yield flexibility means he can invest in the Philippines – a market that was not available to him at Newton, because of its low dividend payments in lieu of a capital growth focus. Jason invests for the long-term, though, and will buy attractively-valued growth stocks today that he believes will gradually increase their income returns.
Likewise, Jason can now invest in health care, where yields were too low to meet the Newton requirement.
Given this exposure to health care and other sectors including telecommunications and insurance, Jason says he expects the fund to be relatively defensive within the region – a plus in our current investing environment.
Chelsea Risk Rating 7.5
Chelsea Generic Rating Buy
Unit Type Acc or Inc
Initial Charge 0%
Annual Management Charge 0.75%*
Ongoing Charges Figure 0.98%
Projected Yield 4% (not guaranteed)
Income Payment Dates March, June, September, December
The fund launched on 2nd March 2016.
Three easy ways to invest:
Please ensure that you understand the risks and read the enclosed Key Investors Information Document (KIID) before investing. If we can be of any assistance, please contact one of our experienced and helpful staff on 020 7384 7300.
*The Annual Management Charge is 0.75% at source but Chelsea clients will be given a 0.08% unit rebate into their largest valued fund.
**Data provided by FE Analytics 31/12/1999 - 03/10/2015.