WEBVTT 00:00:00.000 --> 00:00:03.493 align:middle line:90% [MUSIC PLAYING] 00:00:03.493 --> 00:00:23.970 align:middle line:90% 00:00:23.970 --> 00:00:25.770 align:middle line:90% My name is Ayaz Ebrahim. 00:00:25.770 --> 00:00:28.470 align:middle line:84% I have been at JPMorgan for eight years. 00:00:28.470 --> 00:00:33.330 align:middle line:84% I have been managing Asian regional portfolios since 1991, 00:00:33.330 --> 00:00:35.880 align:middle line:84% investing in the Asian equity markets. 00:00:35.880 --> 00:00:39.780 align:middle line:84% I've managed the JPMorgan Asia Growth and Income investment 00:00:39.780 --> 00:00:43.110 align:middle line:84% trust since 2015, when I joined JPMorgan. 00:00:43.110 --> 00:00:45.400 align:middle line:84% I manage the fund with Rob Lloyd, 00:00:45.400 --> 00:00:47.880 align:middle line:84% who is another senior regional portfolio manager. 00:00:47.880 --> 00:00:49.860 align:middle line:84% And we've been managing it together since 2015. 00:00:49.860 --> 00:00:53.172 align:middle line:90% [MUSIC PLAYING] 00:00:53.172 --> 00:00:54.620 align:middle line:90% 00:00:54.620 --> 00:00:59.240 align:middle line:84% JAGI gives a broad exposure to the Asia equity markets. 00:00:59.240 --> 00:01:03.470 align:middle line:84% The equity markets in Asia gives investors 00:01:03.470 --> 00:01:07.640 align:middle line:84% returns for the longer term growth of the Asian economies. 00:01:07.640 --> 00:01:11.120 align:middle line:84% We invest in high-quality and premium companies 00:01:11.120 --> 00:01:13.580 align:middle line:84% in the Asian region that we believe 00:01:13.580 --> 00:01:16.130 align:middle line:84% will compound returns for investors 00:01:16.130 --> 00:01:17.840 align:middle line:90% over a multiyear period. 00:01:17.840 --> 00:01:21.500 align:middle line:84% The JAGI dividend policy is, at the moment, 00:01:21.500 --> 00:01:25.520 align:middle line:84% is to pay quarterly a dividend to shareholders 00:01:25.520 --> 00:01:28.100 align:middle line:90% amounting to 1% of the NAV. 00:01:28.100 --> 00:01:31.418 align:middle line:90% [MUSIC PLAYING] 00:01:31.418 --> 00:01:32.840 align:middle line:90% 00:01:32.840 --> 00:01:37.550 align:middle line:84% JAGI is very much a bottom-up stock selection investment 00:01:37.550 --> 00:01:38.300 align:middle line:90% strategy. 00:01:38.300 --> 00:01:42.020 align:middle line:84% In terms of the risk of the portfolio, 80% of the risk 00:01:42.020 --> 00:01:43.940 align:middle line:84% is actually through stock selection. 00:01:43.940 --> 00:01:47.450 align:middle line:84% We have a very, very strong research platform. 00:01:47.450 --> 00:01:50.120 align:middle line:84% We have about 100 investment professionals 00:01:50.120 --> 00:01:51.980 align:middle line:90% that cover the Asian region. 00:01:51.980 --> 00:01:54.800 align:middle line:84% And these investment professionals really 00:01:54.800 --> 00:01:57.710 align:middle line:84% do a lot of research on the companies in Asia, 00:01:57.710 --> 00:01:59.960 align:middle line:84% really understanding them very well, 00:01:59.960 --> 00:02:04.220 align:middle line:84% and doing very robust analysis for us as portfolio managers 00:02:04.220 --> 00:02:06.980 align:middle line:84% to build conviction on the stocks 00:02:06.980 --> 00:02:08.419 align:middle line:90% that we are investing in. 00:02:08.419 --> 00:02:11.030 align:middle line:84% There is a very strong team approach 00:02:11.030 --> 00:02:14.480 align:middle line:84% between the analysts and the portfolio managers 00:02:14.480 --> 00:02:18.380 align:middle line:84% to come up with views on companies in the Asian region. 00:02:18.380 --> 00:02:20.210 align:middle line:84% In addition to stock selection, we 00:02:20.210 --> 00:02:22.880 align:middle line:84% also have a top-down overlay, which 00:02:22.880 --> 00:02:24.950 align:middle line:84% means that we can also underweight 00:02:24.950 --> 00:02:27.020 align:middle line:84% and overweight countries, depending 00:02:27.020 --> 00:02:30.500 align:middle line:84% on the attractiveness of those various regions at any given 00:02:30.500 --> 00:02:32.320 align:middle line:90% stage of the cycle. 00:02:32.320 --> 00:02:34.470 align:middle line:84% So we may overweight certain countries 00:02:34.470 --> 00:02:38.430 align:middle line:84% because we think, over a shorter term period, that country may 00:02:38.430 --> 00:02:39.820 align:middle line:90% do better than others. 00:02:39.820 --> 00:02:42.300 align:middle line:84% But we may also underweight countries 00:02:42.300 --> 00:02:44.490 align:middle line:84% because we think over the shorter term, 00:02:44.490 --> 00:02:45.930 align:middle line:90% other countries may do better. 00:02:45.930 --> 00:02:49.116 align:middle line:90% [MUSIC PLAYING] 00:02:49.116 --> 00:02:50.560 align:middle line:90% 00:02:50.560 --> 00:02:53.800 align:middle line:84% The growth in Asia continues to be the highest 00:02:53.800 --> 00:02:55.300 align:middle line:90% in any part of the world. 00:02:55.300 --> 00:02:57.820 align:middle line:84% And this is still being led by big countries 00:02:57.820 --> 00:03:02.140 align:middle line:84% such as China, India, and even places like Indonesia. 00:03:02.140 --> 00:03:06.100 align:middle line:84% These countries have populations of over 100 million people. 00:03:06.100 --> 00:03:09.220 align:middle line:84% GDP growth in these areas are still very high. 00:03:09.220 --> 00:03:11.650 align:middle line:84% Indonesia, which we sometimes forget about 00:03:11.650 --> 00:03:13.570 align:middle line:84% because China and India are so big, 00:03:13.570 --> 00:03:16.810 align:middle line:84% also has a population of over 100 million people. 00:03:16.810 --> 00:03:20.090 align:middle line:84% And Indonesia is also growing at a very rapid pace. 00:03:20.090 --> 00:03:21.790 align:middle line:90% What does all this growth mean? 00:03:21.790 --> 00:03:25.780 align:middle line:84% This growth means that the consumer, your average person 00:03:25.780 --> 00:03:29.140 align:middle line:84% in all these countries, their income levels and wealth 00:03:29.140 --> 00:03:29.830 align:middle line:90% is growing. 00:03:29.830 --> 00:03:33.820 align:middle line:84% And that means growth for goods and services in all areas 00:03:33.820 --> 00:03:37.420 align:middle line:84% that you can think of-- in terms of delivery of banking 00:03:37.420 --> 00:03:40.550 align:middle line:84% services, the demand for consumer goods, 00:03:40.550 --> 00:03:42.670 align:middle line:84% the demand for insurance products, 00:03:42.670 --> 00:03:44.360 align:middle line:90% the demand for health care. 00:03:44.360 --> 00:03:46.090 align:middle line:84% And there's a whole host of companies 00:03:46.090 --> 00:03:50.300 align:middle line:84% that are listed in this region that benefits from this rising 00:03:50.300 --> 00:03:51.095 align:middle line:90% spending power. 00:03:51.095 --> 00:03:54.248 align:middle line:90% [MUSIC PLAYING] 00:03:54.248 --> 00:03:55.210 align:middle line:90% 00:03:55.210 --> 00:03:57.460 align:middle line:84% We build conviction in individual stocks 00:03:57.460 --> 00:04:00.580 align:middle line:84% by doing a lot of research on companies. 00:04:00.580 --> 00:04:02.650 align:middle line:84% And frankly, there's no substitute 00:04:02.650 --> 00:04:06.790 align:middle line:84% for just plain hard work in researching those companies. 00:04:06.790 --> 00:04:08.830 align:middle line:84% We have 100 investment professionals 00:04:08.830 --> 00:04:11.200 align:middle line:84% covering a lot of companies in the Asian region. 00:04:11.200 --> 00:04:14.530 align:middle line:84% And it's not just one person that's looking at one stock. 00:04:14.530 --> 00:04:17.170 align:middle line:84% We have at least four, five people 00:04:17.170 --> 00:04:22.120 align:middle line:84% that are looking at one company, with building that research 00:04:22.120 --> 00:04:24.910 align:middle line:84% knowledge, which is shared then amongst the team. 00:04:24.910 --> 00:04:27.040 align:middle line:84% The sharing of this detailed work 00:04:27.040 --> 00:04:31.180 align:middle line:84% really builds conviction for any individual portfolio managers. 00:04:31.180 --> 00:04:33.700 align:middle line:84% And these views are shared formally 00:04:33.700 --> 00:04:36.430 align:middle line:84% through models that are in our systems 00:04:36.430 --> 00:04:39.040 align:middle line:84% but also through regular communication 00:04:39.040 --> 00:04:40.370 align:middle line:90% as we discuss things. 00:04:40.370 --> 00:04:43.660 align:middle line:84% So in short, it is very, very robust 00:04:43.660 --> 00:04:46.480 align:middle line:84% analysis, strong financial modeling, 00:04:46.480 --> 00:04:49.300 align:middle line:84% but also continuous communication 00:04:49.300 --> 00:04:50.350 align:middle line:90% between team members. 00:04:50.350 --> 00:04:53.614 align:middle line:90% [MUSIC PLAYING] 00:04:53.614 --> 00:04:55.070 align:middle line:90% 00:04:55.070 --> 00:04:58.340 align:middle line:84% So we mitigate macro risks by reviewing our country 00:04:58.340 --> 00:05:00.200 align:middle line:90% allocations on a regular basis. 00:05:00.200 --> 00:05:02.990 align:middle line:84% And we formally do it quarterly, but it's a dynamic process. 00:05:02.990 --> 00:05:05.690 align:middle line:84% If we feel things are changing on a macro basis, 00:05:05.690 --> 00:05:07.970 align:middle line:84% we do adjust our country weightings. 00:05:07.970 --> 00:05:11.090 align:middle line:84% We can go more overweight or underweight countries. 00:05:11.090 --> 00:05:14.580 align:middle line:84% And we take into macro considerations when we do that. 00:05:14.580 --> 00:05:17.810 align:middle line:84% In addition to that, by understanding our companies 00:05:17.810 --> 00:05:19.940 align:middle line:84% really well from a bottom-up level, 00:05:19.940 --> 00:05:23.240 align:middle line:84% we understand what factors could affect companies 00:05:23.240 --> 00:05:24.860 align:middle line:90% from a macro basis. 00:05:24.860 --> 00:05:29.000 align:middle line:84% And if we see some of these macro circumstances changing, 00:05:29.000 --> 00:05:31.190 align:middle line:84% we will adjust our weightings in companies 00:05:31.190 --> 00:05:33.650 align:middle line:84% by either reducing their weightings or selling them 00:05:33.650 --> 00:05:36.320 align:middle line:84% or perhaps buying some companies that will benefit 00:05:36.320 --> 00:05:38.300 align:middle line:90% from certain macro changes. 00:05:38.300 --> 00:05:41.540 align:middle line:90% [MUSIC PLAYING] 00:05:41.540 --> 00:05:42.040 align:middle line:90% 00:05:42.040 --> 00:05:46.240 align:middle line:84% We believe that the investment trust structure benefits 00:05:46.240 --> 00:05:50.110 align:middle line:84% JAGI investors because by being closed end, 00:05:50.110 --> 00:05:54.380 align:middle line:84% we do not have constant inflow and outflow of cash. 00:05:54.380 --> 00:05:55.580 align:middle line:90% What does that mean? 00:05:55.580 --> 00:05:58.210 align:middle line:84% It means that us as portfolio managers 00:05:58.210 --> 00:06:01.150 align:middle line:84% are managing the portfolio without worrying 00:06:01.150 --> 00:06:03.190 align:middle line:84% about how much money may be coming in 00:06:03.190 --> 00:06:05.200 align:middle line:90% or how much money is going out. 00:06:05.200 --> 00:06:07.870 align:middle line:84% So we manage it in the most efficient way 00:06:07.870 --> 00:06:09.740 align:middle line:90% possible as a result. 00:06:09.740 --> 00:06:13.090 align:middle line:84% In addition to that, the structure, the investment trust 00:06:13.090 --> 00:06:14.800 align:middle line:90% structure, allows us to gear. 00:06:14.800 --> 00:06:16.480 align:middle line:90% We do not gear often. 00:06:16.480 --> 00:06:19.970 align:middle line:84% But when we have extreme market conditions, 00:06:19.970 --> 00:06:24.250 align:middle line:84% when markets become very cheap, and our experience has told us 00:06:24.250 --> 00:06:26.770 align:middle line:84% that when markets do become very cheap, 00:06:26.770 --> 00:06:29.020 align:middle line:84% there is an opportunity to be had, 00:06:29.020 --> 00:06:32.440 align:middle line:84% is that the probability of markets going up 00:06:32.440 --> 00:06:36.070 align:middle line:84% over the next 12 to 24 months is high. 00:06:36.070 --> 00:06:38.560 align:middle line:84% And that's when we actually gear the portfolio. 00:06:38.560 --> 00:06:41.910 align:middle line:90% [MUSIC PLAYING] 00:06:41.910 --> 00:07:06.000 align:middle line:90%