WEBVTT 00:00:00.000 --> 00:00:02.475 align:middle line:90% [MUSIC PLAYING] 00:00:02.475 --> 00:00:22.800 align:middle line:90% 00:00:22.800 --> 00:00:25.860 align:middle line:84% When we talk about investing in New China, 00:00:25.860 --> 00:00:28.710 align:middle line:84% we're basically talking about the types of businesses 00:00:28.710 --> 00:00:31.800 align:middle line:84% and industries that are tied to where the population of China 00:00:31.800 --> 00:00:33.330 align:middle line:84% are choosing to spend their money. 00:00:33.330 --> 00:00:36.240 align:middle line:84% Historically, when you think about Chinese equities, 00:00:36.240 --> 00:00:40.560 align:middle line:84% a lot of it was dominated by heavy industry, infrastructure 00:00:40.560 --> 00:00:42.210 align:middle line:90% spending, manufacturing. 00:00:42.210 --> 00:00:44.250 align:middle line:84% What we've seen in the last decade or so 00:00:44.250 --> 00:00:47.520 align:middle line:84% is a real push from the Chinese government and authority 00:00:47.520 --> 00:00:49.920 align:middle line:84% to transition their economy away from being 00:00:49.920 --> 00:00:52.860 align:middle line:84% manufacturing-led towards being service-led. 00:00:52.860 --> 00:00:55.230 align:middle line:84% So what do we mean by service-led? 00:00:55.230 --> 00:00:57.750 align:middle line:84% China is fortunate to have a very strong 00:00:57.750 --> 00:00:59.130 align:middle line:90% demographic backdrop-- 00:00:59.130 --> 00:01:01.980 align:middle line:90% 1.4 billion people. 00:01:01.980 --> 00:01:05.019 align:middle line:90% They are 1.4 billion consumers. 00:01:05.019 --> 00:01:07.110 align:middle line:84% They're earning more money and they're 00:01:07.110 --> 00:01:10.800 align:middle line:84% able to choose and demand where they spend that money. 00:01:10.800 --> 00:01:12.750 align:middle line:84% And what that's seen is the development 00:01:12.750 --> 00:01:14.280 align:middle line:84% of an awful lot of industries that, 00:01:14.280 --> 00:01:17.400 align:middle line:84% to us, offer strong long-term return potential. 00:01:17.400 --> 00:01:19.380 align:middle line:84% The likes of e-commerce and internet 00:01:19.380 --> 00:01:21.480 align:middle line:84% as more and more Chinese live their lives 00:01:21.480 --> 00:01:22.920 align:middle line:90% through their smartphone. 00:01:22.920 --> 00:01:25.590 align:middle line:84% Health care as people have that bit more money 00:01:25.590 --> 00:01:28.830 align:middle line:84% and look to look after themselves and their families. 00:01:28.830 --> 00:01:30.300 align:middle line:90% Technology. 00:01:30.300 --> 00:01:32.280 align:middle line:84% China is, you could argue, getting 00:01:32.280 --> 00:01:34.200 align:middle line:84% close to the cutting edge of renewables 00:01:34.200 --> 00:01:35.400 align:middle line:90% and electric vehicles. 00:01:35.400 --> 00:01:38.040 align:middle line:84% These are the types of names that, to us, assuming 00:01:38.040 --> 00:01:40.620 align:middle line:84% the economics and the duration are right, really 00:01:40.620 --> 00:01:43.620 align:middle line:84% offer strong long-term opportunity with the added 00:01:43.620 --> 00:01:46.410 align:middle line:84% benefit to typically having less government involvement. 00:01:46.410 --> 00:01:48.760 align:middle line:90% [MUSIC PLAYING] 00:01:48.760 --> 00:01:50.720 align:middle line:90% 00:01:50.720 --> 00:01:53.900 align:middle line:84% Why JPMorgan China Growth and Income? 00:01:53.900 --> 00:01:57.470 align:middle line:84% Well, this is an incredibly complex market 00:01:57.470 --> 00:02:00.050 align:middle line:84% to navigate for an individual investor. 00:02:00.050 --> 00:02:02.760 align:middle line:84% There's the language, there's the culture, 00:02:02.760 --> 00:02:04.430 align:middle line:90% there's the time zone. 00:02:04.430 --> 00:02:06.740 align:middle line:84% And there's actually just things like access 00:02:06.740 --> 00:02:09.350 align:middle line:90% to management and corporates. 00:02:09.350 --> 00:02:14.330 align:middle line:84% With JCGI, we have the ability to do all of those things. 00:02:14.330 --> 00:02:16.820 align:middle line:84% Everyone in the team speaks Mandarin. 00:02:16.820 --> 00:02:18.830 align:middle line:90% Why is language so important? 00:02:18.830 --> 00:02:21.830 align:middle line:84% Well, for any of you that have [? used to ?] translate 00:02:21.830 --> 00:02:23.990 align:middle line:84% to order food in a foreign restaurant, 00:02:23.990 --> 00:02:25.430 align:middle line:90% you'll soon realize. 00:02:25.430 --> 00:02:27.380 align:middle line:84% You don't want to make assumptions 00:02:27.380 --> 00:02:29.900 align:middle line:84% when it comes to speaking with management, when it comes 00:02:29.900 --> 00:02:32.630 align:middle line:84% to understanding balance sheets or competitive pressures 00:02:32.630 --> 00:02:33.710 align:middle line:90% on businesses. 00:02:33.710 --> 00:02:37.850 align:middle line:84% It really is about making sure that where possible you 00:02:37.850 --> 00:02:41.000 align:middle line:84% get all the cleanest information in order to make the best 00:02:41.000 --> 00:02:42.590 align:middle line:90% decision on where you invest. 00:02:42.590 --> 00:02:47.030 align:middle line:84% We have people on the ground in Shanghai, in Hong Kong. 00:02:47.030 --> 00:02:50.970 align:middle line:84% And that gives us a real edge because we're not just 00:02:50.970 --> 00:02:53.160 align:middle line:84% relying on headlines or news alerts, 00:02:53.160 --> 00:02:55.590 align:middle line:84% but we're actually able to go out on the street, 00:02:55.590 --> 00:02:57.870 align:middle line:84% see what people are spending, hear 00:02:57.870 --> 00:02:59.700 align:middle line:84% the demand from different businesses 00:02:59.700 --> 00:03:00.870 align:middle line:90% and different corporates. 00:03:00.870 --> 00:03:03.330 align:middle line:84% We've shown that we have the strong ability 00:03:03.330 --> 00:03:07.200 align:middle line:84% to run money in China over 30 years with the history 00:03:07.200 --> 00:03:09.090 align:middle line:90% of this investment trust. 00:03:09.090 --> 00:03:12.300 align:middle line:84% And backing us, we have one of the largest emerging markets 00:03:12.300 --> 00:03:15.060 align:middle line:84% teams and a very clear process that's 00:03:15.060 --> 00:03:18.780 align:middle line:84% focused on quality, that's focused on corporate governance 00:03:18.780 --> 00:03:20.010 align:middle line:90% and the importance of that. 00:03:20.010 --> 00:03:22.760 align:middle line:90% [MUSIC PLAYING] 00:03:22.760 --> 00:03:41.000 align:middle line:90%