WEBVTT

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[MUSIC PLAYING]

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I'm Emily Whiting.

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I work as an Investment
Specialist on the emerging

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markets in Asia-Pacific team
at JPMorgan Asset Management,

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which is a role I've
been fortunate enough

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to do since 2006.

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[MUSIC PLAYING]

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JPMorgan China
Growth & Income first

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started life back
in the mid-1990s

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as the JPMorgan China Trust.

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At the time, it was the first
dedicated China investment

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trust for private
investors in the UK.

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Now, what we've
been able to do is

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actually adjust the
remit of the trust

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and add in that word "income."

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So back in 2020, we
renamed the trust

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to the current name, JPMorgan
China Growth & Income.

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And that didn't actually change
what the portfolio managers

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were looking to do,
which was invest

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in long-term, quality-orientated
names that can deliver growth

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in China.

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But one of the benefits of
the investment trust structure

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allows you to pay
out a dividend.

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So what we now do
with JCGI is pay out

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a dividend of 4%
of the net asset

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value of the trust
on an annual basis.

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So it contributes both
to clients' income stream

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as well as the growth
of the capital market.

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So what we are looking for
is to find high conviction

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in names across the broader
China investment universe.

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Think of that as really
two main buckets--

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firstly, your Hong Kong
listed shares, the H-shares,

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which historically were the
key way to gain exposure

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to Chinese equities.

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But also, we're able
to gain exposure

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through the domestic onshore
Chinese A-share market.

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Now, this is a hugely dynamic
and new area of opportunity

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for international investors.

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Think of the domestic
onshore market

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as the portion of the
market most directly

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tied to the consumption
habits and the service habits

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of 1.4 billion Chinese, so
really broad and deep hunting

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ground for us, and it's a part
of the world that has really

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enhanced the diversification
that we can offer across JCGI.

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So when we put it
all together, we

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end up with a very
diversified, bottom-up-driven,

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stock-selection-orientated
trust that's

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very much about focusing on
the companies that we like,

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finding those winners,
but, as importantly,

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avoiding the losers
or the companies

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that we're not so
comfortable with.

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Why do people need exposure
to the Chinese economy?

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Well, it's the second
largest economy globally.

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If you combine that with the
sheer size of the population,

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from a global perspective, it
really is too big to ignore.

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Now, there are often
concerns about China,

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as there are with so
many emerging markets.

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Volatility is inherent
and is of a higher level

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than we would recognize
in a developed

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market, such as the UK.

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Geopolitics casts a cloud
and creates headlines.

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China was one of the markets
globally that hung on to zero

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COVID the longest,
almost famously.

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And when it reopened, the
expectation across the world

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would there be a very
sharp bounce in the market.

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And it's fair to
say, so far in 2023,

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that's been underwhelming.

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However, there is still
a lot of pent-up demand.

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There are a lot of excess
savings made by the Chinese

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through their
periods of lockdown.

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We know that the
government have the ability

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to stimulate and get involved
to keep the economy going.

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And to us, it doesn't
change that long-term story

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of GDP per capita, so the amount
that the individual earns,

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growing and people
demanding more choice, ease,

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and convenience.

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But as investors, as long as
you have a long-term horizon,

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you can look through
a lot of that.

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These are still
companies, industries,

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sectors offering
compelling returns,

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offering products that
are required and needed

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and consumed across the world.

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And so to us, China
isn't a market

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that you want to be short
term in or tactical.

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But for long-term
investors, as part

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of a diversified portfolio, I
would use that phrase again,

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too big to ignore.

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So why consider JCGI?

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In one sentence, China
remains too big to ignore.

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It's a market that nearly
20% of the world's population

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live, work, and consume in.

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It's a market that, for
international investors,

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is quite hard to get your head
around because of the language,

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because of the culture.

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And that's where you want
an experienced, dedicated

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portfolio manager--

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individuals who
speak the language,

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individuals who are
based on the ground,

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individuals who are backed
by a team that gives them

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the ability to differentiate
between the winners

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and the losers,
which is so important

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for long-term returns.

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China, by nature of
being an emerging market,

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is inherently volatile, and
it also has geopolitics.

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But that, to me, isn't
a reason for investors

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not to be thinking
about JCGI in China

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if you have a long-term
investment horizon

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and if you have the
patience to really live

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through certain periods of
volatility that are natural.

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