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JPMorgan Asia Growth and Income plc 9 February 2022 | Annual General Meeting Ayaz Ebrahim, Managing Director Portfolio Manager, Emerging Markets and Asia Pacific Equities Robert Lloyd, Managing Director Portfolio Manager, Emerging Markets and Asia Pacific Equities
Performance (GBP)
JPMorgan Asia Growth & Income plc as of 30 September 2021
Market value
JPMorgan Asia Growth & Income plc GBP 450.9m
Annualised performance (%)
Three months Six months YTD One year Three years Five years Since launch
JPMorgan Asia Growth & Income plc -7.10 -3.48 -0.41 13.67 10.28 11.81 8.14
MSCI AC Asia ex Japan (NDR)* -7.11 -3.88 -2.20 9.70 7.98 9.32 6.96
NAV Excess Return** 0.01 0.40 1.79 3.96 2.30 2.50 1.18
Calendar year performance (%)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
JPMorgan Asia Growth & Income plc 28.88 -23.50 13.55 2.89 11.27 -2.03 26.37 35.97 -5.27 17.03 20.63
MSCI AC Asia ex Japan (NDR)* 23.38 -16.69 16.99 1.16 11.32 -3.91 25.77 29.45 -9.05 13.61 21.16
NAV Excess Return** 5.50 -6.81 -3.43 1.74 -0.05 1.87 0.60 6.52 3.79 3.43 -0.53
Inception date: 12th September 1997
* Prior to 1st January 2001, MSCI AC Asia ex Japan (GDR).
** Arithmetic excess return presented. Figures may not add up due to rounding.
Source: J.P. Morgan Asset Management. (NAV to NAV with income reinvested). Investment involves risk. Fund performance is shown based on the NAV in GBP with income (Gross) reinvested
including actual ongoing charges excluding any entry and exit fees. Past performance is not an indication of current and future performance.
Please refer to the offering document(s) for details, including the risk factors before investing. Indices do not include fees or operating expenses and are not available for actual investment.
1Performance attribution
JPMorgan Asia Growth & Income plc for 1 year ending 30 September 2021
Stock: 3.80 Stock: 6.15
Attribution summary Attribution summary
Country: 1.11 Sector: -1.24
Benchmark MSCI AC ASIA ex JAPAN Benchmark MSCI AC ASIA ex JAPAN
Country attribution (%) Sector attribution (%)
Korea (o) 2.49 Communication Services (o) 3.04
Singapore (o) 1.58 Consumer Discretionary (o) 2.32
China (u) 1.37 Health Care (n) 0.87
Indonesia (o) 0.79 Financials (o) 0.44
Vietnam (o) 0.42 Managed Funds (o) 0.42
Hong Kong (o) 0.41 Real Estate (n) 0.35
Malaysia (u) 0.24 Energy (u) 0.24
Australia (n) 0.13
Thailand (n) 0.05 Consumer Staples (n) -0.07
Philippines (u) 0.01 Utilities (u) -0.39
Industrials (n) -0.63
Stock selection
Taiwan (n) -0.45 Information Technology (u) -0.69 Stock selection
Asset allocation
India (u) -2.02 Materials (u) -0.88 Asset allocation
Cash -0.13 Cash -0.13
-3.75 -2.50 -1.25 0.00 1.25 2.50 3.75 -4.00 -2.00 0.00 2.00 4.00
Source: J.P. Morgan Asset Management, Factset. (o) = overweight, (u) = underweight, (n) = neutral. Data is gross of fees in GBP. Data for total attribution shown (stock selection plus country).
Attribution results are for indicative purposes only. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the
Investment Manager without notice. Past performance is not a reliable indicator of current and future results.
2Performance attribution
Stock: 6.15
JPMorgan Asia Growth & Income plc Attribution summary
Sector: -1.24
for 1 year ending 30 September 2021 Benchmark MSCI AC ASIA ex JAPAN
Stock attribution
Relative Stock Impact Relative Stock Impact
Top 10 contributors Top 10 detractors
weight (%) return (%) (%) weight (%) return (%) (%)
Sea Ltd. (Singapore) 1.75 98.54 1.22 Ping An Insurance (Group) Company
1.47 -34.94 -0.77
of China
AfreecaTV1 0.78 144.35 0.83
Jiangsu Hengrui Pharmaceuticals 0.85 -40.14 -0.66
Eclat Textile 1.41 71.67 0.75
Tencent 1.70 -13.78 -0.42
Wuxi Biologics (Cayman) 1.16 91.92 0.73
Budweiser Brewing 1.44 -15.62 -0.41
HDFC Bank1 2.32 41.06 0.58
Kuaishou Technology -0.02 224.54 0.54 Infosys -0.90 60.86 -0.41
ICICI Bank -0.58 88.70 -0.34
TAL Education -0.28 -93.90 0.54
China Resources Land 2.15 -5.98 -0.32
TSMC 1.84 35.62 0.53
51job 0.80 -6.71 -0.32
Postal Savings Bank of China 1.14 65.95 0.51 Zai Lab 0.39 -25.92 -0.31
Samsung Engineering 0.30 74.79 0.48 Mediatek -0.67 53.86 -0.24
Source: J.P. Morgan Asset Management, Factset. Data is gross of fees in GBP. Data for total attribution shown (stock selection plus country). Attribution results are for indicative purposes only. The
portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice. Past performance
is not a reliable indicator of current and future results.1Not in Benchmark
3Performance attribution
JPMorgan Asia Growth & Income plc for quarter ending 31 December 2021
Stock: -0.64 Stock: -0.79
Attribution summary Attribution summary
Country: -0.02 Sector: 0.13
Benchmark MSCI AC ASIA ex JAPAN Benchmark MSCI AC ASIA ex JAPAN
Country attribution (%) Sector attribution (%)
Korea (o) 0.66 Industrials (n) 0.69
China (u) 0.39 Real Estate (n) 0.26
Indonesia (o) 0.24 Materials (u) 0.08
Vietnam (o) 0.06 Consumer Staples (n) 0.06
Managed Funds (o) 0.06
Pakistan (n) 0.00
Philippines (u) -0.03 Energy (n) -0.02
Malaysia (u) -0.05
Communication Services (o) -0.03
Australia (o) -0.07
Consumer Discretionary (u) -0.07
Thailand (n) -0.08
Utilities (u) -0.13
Hong Kong (o) -0.41
Information Technology (u) -0.14
Taiwan (u) -0.42 Stock selection
Health Care (o) -0.71 Stock selection
Singapore (o) -0.43 Asset allocation
India (u) -0.53 Financials (o) -0.72 Asset allocation
Cash 0.02 Cash 0.02
-1.00 -0.50 0.00 0.50 1.00 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50
1 Source: J.P. Morgan Asset Management, Factset. (o) = overweight, (u) = underweight, (n) = neutral. Data is gross of fees in GBP. Data for total attribution shown (stock selection plus country).
Attribution results are for indicative purposes only. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the
Investment Manager without notice. Past performance is not a reliable indicator of current and future results.
4Current fund positioning
Sector and country positions
JPMorgan Asia Growth & Income plc Benchmark MSCI AC ASIA ex JAPAN
as of 31 December 2021
Active and absolute sector positions
Relative to benchmark (%)
10.0 6.9
4.3
5.0 1.5 1.2 1.9 1.0
0.2
0.0
-5.0 -0.2 -0.2 -0.2 -0.5 -1.3 -1.3
-2.8 -4.1
Financials Banks Insurance Diversified Communication Health Industrials Real Energy Consumer Consumer Information Utilities Materials Cash
Financials Services Care Estate Discretionary Staples Technology
Portfolio
Weight (%)
25.5 15.4 5.8 4.4 12.3 4.7 6.1 3.6 2.7 14.1 3.8 24.6 0.0 1.1 1.0
Active and absolute country positions
Relative to benchmark (%)
5.0 3.2 3.2 3.0
1.0 0.8 0.2 1.0
0.0
-5.0 -0.8 -1.6 -2.3 -3.0
-10.0 -5.2
Korea Indonesia Singapore Hong Australia Thailand Philippines Malaysia Taiwan China India Cash
South Kong Main
Portfolio
Weight (%)
17.8 4.9 6.0 7.9 0.8 2.1 0.0 0.0 16.0 33.9 9.0 1.0
Source: J.P. Morgan Asset Management. The investment trust is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject
to change at the discretion of the Investment Manager without notice.
6Portfolio positions
JPMorgan Asia Growth & Income plc Benchmark MSCI AC ASIA ex JAPAN
as of 31 December 2021
Portfolio weight Fund Relative
Top 10 holdings Top 5 overweights
(%) weight (%) position (%)
TSMC 9.8 Samsung Electronics 7.8 2.5
China Resources Land 2.6 2.4
Samsung Electronics 7.8
AIA 4.1 2.3
Tencent 6.9
Eclat Textile Co 2.1 2.0
AIA 4.1 Tencent 6.9 2.0
Alibaba 3.0
Fund Relative
Top 5 underweights
China Resources Land 2.6 weight (%) position (%)
Reliance Industries 0.0 -1.3
Bank Central Asia 2.3
Mediatek 0.0 -0.9
SK Hynix 2.2
JD.com 0.0 -0.9
Hong Kong Exchange 2.2 Icici Bank 0.0 -0.7
Meituan 2.1 Hon Hai Precision 0.0 -0.7
Source: J.P. Morgan Asset Management. The investment trust is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject
to change at the discretion of the Investment Manager without notice.
7Market outlook 8
APAC Dashboard: Outlook 2022
Macro risk, growth and valuation
Issues 2018 2019 2020 1H 2021 2H 2021 2022
Recovering but
Late Cycle 1H: Late Cycle Mid-Cycle
Business Cycle Risks Late Cycle Strong Recovery dependent on
Increasing Risks 2H: New Cycle (Omicron Risk?)
Delta Variant
Stable to Rising to
USD Cycle (USD REER Index) Rising Stable to Rising Rising Stable
Moderating moderating
APAC GDP Growth Alpha Stable Stable Unclear Strong Rebound Flat Increasing
1H: Positive 1H: Deteriorating
Earnings Flat Strong Rebound Moderating Moderating
2H: Weak 2H: Bottoming
1H: Attractive 1H: Very Attractive
Valuation: Price to Book Average Above Average Average Average
2H: Below Average 2H: Below Average
Research signal: Expected 1H: Attractive 1H: Very high
Low Average Average Above Average
Return 2H: Average 2H: Average
Source: J.P. Morgan Asset Management, MSCI, Standard & Poor’s. EM GDP growth alpha: Consensus Economics .
Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change
without notice. There can be no guarantee they will be met.
REER = Real effective exchange rate. As of January 2022.
9Where are we in the cycle?
US
EM
Early Mid
Cycle Late
Cycle
2020 Cycle
COVID
(recession) Rising growth Near peak growth
Low but rising Rising inflation
Past peak GDP
inflation Minimal fiscal
Peak inflation
Low policy rates with stimulus
High rates
Contracting growth some tightening
No fiscal stimulus
Low inflation Some fiscal stimulus Expansionary,
Low policy rates Financials, industrials
Sectors that typically perform:
Large fiscal stimulus Sectors that typically perform:
Defensives, telecomms,
Commodities, hardware, Sectors that typically
healthcare, utilities,
Sectors that typically perform: autos perform:
consumer staples
Covid beneficiaries, Industrials, technology,
healthcare, e-commerce Deep value materials
Quality growth
Growth Quality value
Source: J.P. Morgan Asset Management. Data as of October 2021. EM = Emerging Markets. Opinions, estimates, forecasts, projections and statements of financial market
trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will
be met
10Earnings revisions in APAC
Earnings Revisions: MSCI Asia Pacific ex Japan (USD)
MSCI AC APxJ revision (U-D)/(U+D)
1.40
1.20
UD Ratio
1.00 1
8/31/2018
0.84 0.89
0.80
6/30/2019
0.60 0.66
1/31/2019
0.56
10/31/2011 2/29/2016
0.40 0.47 0.46
11/28/2008
0.20 0.24
Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21
Source: JPMorgan Asset Management. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute
our judgment and are subject to change without notice. There can be no guarantee they will be met. Data reflect most recently available as of 31st December 2021.
Forecasts are not a reliable indicator of future performance.
11Where do we see the most attractive expected returns?
Five year expected return: Forecast earnings, dividends, change in valuation and currency
Market ER vs. MSCI AC Asia ex Japan Average (%) Sector ER vs. MSCI Asia ex Japan Average (%)
China Mainland 20.4 Real Estate 19.2
Korea 18.0 Consumer Discretionary 18.0
Financials 17.9
Hong Kong 14.7
Health Care 17.5
Indonesia 14.3
Communication Services 17.3
Thailand 13.8
Information Technology 15.2
Singapore 13.4
Energy 14.8
Taiwan 13.3
Materials 13.8
Philippines 11.7 Industrials 13.0
Malaysia 11.1 Utilities 12.0
India 9.7 Consumer Staples 11.4
7.0 9.0 11.0 13.0 15.0 17.0 19.0 21.0 23.0 7.0 9.0 11.0 13.0 15.0 17.0 19.0 21.0
Source: MSCI, J.P. Morgan Asset Management.
Index coverage for Five Year Expected Return may not be 100%
Indices do not include fees or operating expenses and are not available for actual investment. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market
conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met.
Data reflect most recently available as of 31st December 2021
Forecasts are not a reliable indicator of future performance.
12Valuations are average
5-Year Expected Return (ER) in USD :
MSCI AC Asia Pacific ex Japan Trailing PB Stocks under coverage within MSCI AC Asia Pacific ex
Japan
x
3.0 %
20
2.8
2.6
17
2.4
+1sd 2.2
2.2
2.0 14
Avg1.8 14.8
1.8
1.9
Avg 12.6
1.6 11
1.4 -1sd1.5
1.2
8
06/21
12/17
03/18
06/18
09/18
12/18
03/19
06/19
09/19
12/19
03/20
06/20
09/20
12/20
03/21
09/21
12/21
1.0
04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
PB = Price to Book Ratio
Source: MSCI, J.P. Morgan Asset Management.
Index coverage for Five Year Expected Return may not be 100%
Indices do not include fees or operating expenses and are not available for actual investment. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market
conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met.
Data reflect most recently available as of 31st December 2021
Forecasts are not a reliable indicator of future performance.
13Appendix 14
Investment objective and main risks
JPMorgan Asia Growth & Income plc
INVESTMENT OBJECTIVE
Aims to provide capital growth from a diversified portfolio of around 50 to 80 companies quoted on the Asian stock markets, excluding Japan. The Company
pays quarterly dividends equivalent to 1% of its net asset value, set on the last business day of each financial quarter. The Company also has the ability to use
gearing up to a maximum level of 20% of net assets to increase potential returns to shareholders.
MAIN RISKS Risk and Reward Profile
Exchange rate changes may cause the value of underlying overseas investments to go Lower Risk Higher Risk
down as well as up.
Potentially lower reward Potentially higher reward
Investments in emerging markets may involve a higher element of risk due to political and economic
instability and underdeveloped markets and systems. Shares may also be traded less frequently
1 2 3 4 5 6 7
than those on established markets. This means that there may be difficulty in both buying and
selling shares and individual share prices may be subject to short-term price fluctuations.
External factors may cause an entire asset class to decline in value. Prices and values of all shares
or all bonds and income could decline at the same time, or fluctuate in response to the performance
of individual companies and general market conditions.
This Company may utilise gearing (borrowing) which will exaggerate market movements both up and
down.
This Company may also invest in smaller companies which may increase its risk profile.
The share price may trade at a discount to the Net Asset Value of the Company.
The Company may invest in China A-Shares through the Shanghai-Hong Kong Stock Connect
program which is subject to regulatory change, quota limitations and also operational constraints
which may result in increased counterparty risk.
Please refer to the Investor Disclosure Document, latest annual report, and Key Information Document (KID) for more information relating to the Company.
15Important information This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. Investment is subject to documentation. The Annual Reports and Financial Statements, AIFMD art. 23 Investor Disclosure Document and PRIIPs Key Information Document can be obtained free of charge in English from JPMorgan Funds Limited or at www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP. Material ID: 096g220402111522 16
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