JPMorgan Emerging Markets Investment Trust Annual …...China 1.6 Philippines 0.9 India 0.7 Taiwan...
Transcript of JPMorgan Emerging Markets Investment Trust Annual …...China 1.6 Philippines 0.9 India 0.7 Taiwan...
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY - NOT FOR RETAIL USE OR DISTRIBUTION
JPMorgan Emerging Markets Investment Trust
Annual General Meeting
17th November 2015
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY - NOT FOR RETAIL USE OR DISTRIBUTION
JPMorgan Emerging Markets Investment Trust
Annual General Meeting
17th November 2015
Austin Forey, Portfolio Manager
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Agenda
The past year
Conventional wisdom: usually wrong
Investing for the long term
Thoughts for the future
And finally…
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Performance
JPMorgan Emerging Markets Investment Trust plc as of 30th September 2015 – 12 month rolling returns
(%) 30/09/14 to
30/09/15
30/09/13 to
30/09/14
30/09/12 to
30/09/13
30/09/11 to
30/09/12
30/09/10 to
30/09/11
Share price -6.60% 1.95% 4.46% 10.90% -14.73%
Net asset value -4.54% 3.10% 2.83% 13.29% -14.06%
MSCI Emerging Markets Net Index -13.61% 4.19% 0.69% 12.81% -15.18%
Source: J.P. Morgan Asset Management.
Inception: 01 Jul 1991. Benchmark: MSCI Emerging Markets Net.
Past performance is not a guide to the future.
Performance data has been calculated including tax, ongoing charges and portfolio transaction costs and excluding entry and exit charges, with any income reinvested, in GBP.
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The past year: investment performance
Stock selection: +1.9%, asset allocation +2.9%
Positives:
India, South Africa, financials
Negatives:
China, consumer
Markets fell considerably in the period from June
to the end of September, with some currencies
very weak
Source: J.P. Morgan Asset Management. Data as of 30th September 2015. Past performance is not an indication of future performance.
30th June 2014 – 30th June 2015
Portfolio return +8.5%
Index +3.2%
Return on NAV +7.4%
Ordinary share price return +6.6%
30th June 2015 – 30th September 2015
Portfolio return -9.0%
Index -14.8%
Ordinary share price return -10.7%
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The past year: markets
Source: Factset. MSCI. Data as of 30th September 2015. Past performance is not an indication of future performance.
70
80
90
100
110
120
30
/06/2
014
14
/07/2
014
28
/07/2
014
11
/08/2
014
25
/08/2
014
08
/09/2
014
22
/09/2
014
06
/10/2
014
20
/10/2
014
03
/11/2
014
17
/11/2
014
01
/12/2
014
15
/12/2
014
29
/12/2
014
12
/01/2
015
26
/01/2
015
09
/02/2
015
23
/02/2
015
09
/03/2
015
23
/03/2
015
06
/04/2
015
20
/04/2
015
04
/05/2
015
18
/05/2
015
01
/06/2
015
15
/06/2
015
29
/06/2
015
13
/07/2
015
27
/07/2
015
10
/08/2
015
24
/08/2
015
07
/09/2
015
21
/09/2
015
Chinese ‘A’ shares
in lift-off
…Rouble follows Commodity prices fall
Chinese currency
devalues
Malaysian Airlines
plane shot down
over Ukraine
Govt. moves to shore
up Chinese equities Oil price halves..
MSCI Emerging Markets index in GBP (rebased)
Sanctions
against
Russia
Still no rise in interest rates…
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The past year: market detail
Source: Factset MSCI Emerging Markets Index Index. Data shows returns 1 year from 30th June 2014. Past performance is not an indication of future performance.
MSCI Country % returns in GBP
Hungary 14.2
China 1.6
Philippines 0.9
India 0.7
Taiwan -5.1
MSCI EM (Emerging Markets) Index -13.6
Russia -28.2
Indonesia -29.0
Malaysia -44.8
Brazil -47.0
MSCI Sector % returns in GBP
Health Care -1.7
Information Technology -5.0
Consumer Staples -5.9
Consumer Discretionary -9.6
Financials -12.3
MSCI EM (Emerging Markets) Index -13.6
Telecommunication Services -14.5
Utilities -19.2
Materials -25.1
Energy -33.0
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The past year: longer term context
Source: Datastream as of 30th September 2015: MSCI Emerging Markets Index. Past performance is not an indication of future performance.
Index, 31 Jan 95 = 100
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MSCI Emerging Markets Index Performance in GBP MSCI Emerging Markets Index relative to Developed World
Index, 31 Jan 95 = 100
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The portfolio
Source: UBS Portfolio Analysis System, J.P. Morgan Asset Management. Prism. Index: MSCI Emerging Markets Index as of 30th September 2015. The targets and aims provided above are the
Investment Manager’s targets and aims only and are not necessarily part of the Fund’s investment objectives and policies as stated in the prospectus. There is no guarantee that these will be achieved.
*Portfolio yield is the aggregate weighted sum of the stock level yields which are calculated (12-month forward DPS / Current price)*100. **Net debt to equity ratio excludes financials.. Numbers are UBS
analyst estimates where available, and otherwise consensus.
Portfolio characteristics as of 30th September 2015
Fund Benchmark
Price to earnings (forward) 15.5x 10.7x
Price to book 3.0x 1.3x
Gross prospective dividend yield* (%) 2.4 3.2
Return on equity (%) 18.9 12.0
**Net Debt/Equity Ratio (%) 18 32
Beta 0.95
Tracking error (%) 6.4
Holdings 72 823
Active share (%) 80.8
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Conventional wisdom? Usually wrong
“What about the.. … economy? “Well, what about.. … inflation?
… currency? … real returns?
… politics? … management?
… short term? … long term?
… risk?” … price?”
For illustrative purposes only. The opinions and views expressed here are those held by the author at the date of publication which are subject to change and are not to be taken as or construed as
investment advice.
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Investing for the long term
Source: Internet. Company websites. For illustrative purposes only.
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Thoughts for the future: China
Source: Company websites. Images for illustrative purposes only. The companies above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or
sell. The use of the above company logos is in no way an endorsement for J.P. Morgan Asset Management.
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Thoughts for the future: China
Source: JPMorgan Asset Management. There can be no assurance that the professionals currently employed by J.P. Morgan Asset Management will continue to be employed by J.P. Morgan Asset
Management.
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And finally...
Annualized Cumulative
5 yrs 3.2% 17%
10 yrs 3.9% 46%
15 yrs 3.9% 77%
20 yrs 3.6% 101%
Source: JPMorgan Asset Management annual reports. Data as at June 2015. Past performance is not an indication of future performance. Calendar Year Returns and
Cumulative Performance since June 1995
Investment Manager Contribution %
-30%
0%
30%
60%
90%
-20
-10
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Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Calendar Year Returns
Cumulative Performance (RHS)
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And finally...
Source: Bloomberg: share price of JPMorgan Emerging Markets Investment Trust (JMG) since Austin Forey has been Portfolio Manager. Past performance is not an indication of future performance. As
of November 2015.
21 year share price performance of JPMorgan Emerging Markets Investment Trust
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And finally…
Thank you
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J.P. Morgan Asset Management
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FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY - NOT FOR RETAIL USE OR DISTRIBUTION
JPMorgan Emerging Markets Investment Trust
Annual General Meeting
17th November 2015