JPMorgan Japanese Investment Trust · LSE:JFJ
JPMorgan Japanese Investment Trust — Shareholder Meeting (January 2025)
18 slides from JPMorgan Japanese Investment Trust's shareholder meeting presentation, January 2025
Slide 1: JPMorgan Japanese Investment Trust plc
JPMorgan Japanese Investment Trust plc Invest in the heart of a changing Japan January 2025 Nicholas Weindling, Portfolio Manager This is a marketing communication. Please refer to the legal documents and the KID before making any final investment decisions. For Professional Clients and Qualified In
Slide 2: Focus on corporate earnings, not economic growth
Focus on corporate earnings, not economic growth TOPIX EPS, S&P 500 EPS, Japan Nominal GDP CY 2010 – CY 2024 Estimated (Index, 100= CY 2010) 350 TOPIX EPS S&P500 EPS MSCI Europe EPS Japan Nominal GDP 300 250 200 150 100 50 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F
Slide 3: Japan is an under-researched market and creates opportunities for stock picking
Japan is an under-researched market and creates opportunities for stock picking Stocks coverage by sell-side analysts 0 1-2 3+ 100% 90% 33% 80% 3+ analysts 70% 58% 67% 60% 21% 1-2 analysts 89% 93% 50% 100% 40% 0 analysts 20% 30% 47% 20% 29% 10% 22% 8% 6% 0% 4% 4% 1% 0% Topix CDAX (Germany) FTSE All-
Slide 4: Greater evidence of a virtuous circle between prices and wages
Greater evidence of a virtuous circle between prices and wages Japan Core inflation and wage growth Shunto wage hike in 2024 has been the highest in the last three Year-on-year change decades Year-over-year % change 5.0 6.0 Inflation ex Fresh Food and Energy y/y (%) Major enterprises Wage increase y
Slide 5: Tangible improvements in corporate governance
Tangible improvements in corporate governance Japanese buybacks (in JPY billion) Dividend Growth Japan has delivered the highest dividend growth since 2003 MSCI Regions - Dividend growth since 2003 CY2018 CY2019 CY2020 900 18,000 CY2021 CY2022 CY2023 YTD 2024 YTD 2024 800 L20Y dividend CAGR (03A-23E
Slide 6: Still much more to go for
Still much more to go for Percentage of net cash listed companies MSCI Japan ROE scenario analysis US EU Japan ROE level if equity holdings are cut from the current level. 60% (%) 13.0 50% 12.2 ROE Scenario Analysis (%) 12.0 40% 11.5 10.9 11.0 30% 10.4 9.9 20% 10.0 10% 9.0 0% 8.0 YTD 2024 2001 2002
Slide 7: Companies are starting to aggressively restructure
Companies are starting to aggressively restructure Percentage of companies with revenue exposure to just one sector 67 64 60 55 35 Japan APxJ Latam Europe USA Source: Jefferies, Factset. Data as of 9 January 2025. Sectors Classified as Business Services, Consumer Services, Consumer Cyclicals, Energy
Slide 8: One of the largest, dedicated Japanese equity teams, based on the ground
One of the largest, dedicated Japanese equity teams, based on the ground Portfolio managers Shoichi Mizusawa Head of Japanese Equities Team Exp: 32,28 Fundamental Growth Nicholas Weindling Naohiro Ozawa Miyako Urabe Michiko Sakai Xuming Tao Exp: 23,18 Exp: 19,7 Exp: 16,11 Exp: 15,11 Exp: 14,5 Core A
Slide 9: Investment process summary
Investment process summary Investable universe Is this a business we Strategic Classification EMAP Checklist want to invest in? Materiality Framework Is it at a price we are Five Year Expected Return willing to pay? Portfolio Design Portfolio ● Low turnover ● High level of active share ● Effective d
Slide 10: Strategic classifications: Premium, Quality, Standard, Challenged
Strategic classifications: Premium, Quality, Standard, Challenged Understanding the business Economics Duration Governance Does the business create value Can this value creation How will governance impact for shareholders? be sustained? shareholder value? ● Sustainable return on capital ● Industry s
Slide 11: Performance
Performance JPMorgan Japanese Investment Trust plc. as of 30 September 2024 AUM JPMorgan Japanese Investment Trust plc GBP 882m Annualised performance (%, GBP) Three 3 Years 5 Years 10 Years YTD 1 Year Months Annualised Annualised Annualised JPMorgan Japanese Investment Trust plc NAV * 4.89 14.80 24
Slide 12: Performance
Performance JPMorgan Japanese Investment Trust plc. as of 31 December 2024 AUM JPMorgan Japanese Investment Trust plc GBP 1,057 m Annualised performance (%, GBP) Three 3 Years 5 Years 10 Years Six Months 1 Year Months Annualised Annualised Annualised JPMorgan Japanese Investment Trust plc NAV * 5.60
Slide 13: Performance attribution
Performance attribution JPMorgan Japanese Investment Trust plc for YTD ending 31 December 2024 Attribution summary Stock: 9.36 Sector: 2.39 Benchmark TOPIX Sector attribution (%) Top contributors Relative Stock Impact weight (%) return (%) (%) Stock selection Asset allocation Asics Corporation 4.65
Slide 14: Stay invested in structural growth opportunities
Stay invested in structural growth opportunities Current Key Investment Themes and Positioning as of 31 December 2024 23% 14% Stock Specific Digital Innovation ● Nippon Sanso ● OBIC 15% Improving Automation and Hardware Technology 6% corporate ● Keyence Environment ● Tokyo Electron ● Hitachi governa
Slide 15: Illustration: Advantest
Illustration: Advantest Leading global semiconductor testing equipment maker with over 50% market share. Strategic Classification: Quality Economics ● Consistently positive FCF over the past decade. ● High profitability with double digit OPM and ROE. Duration ● Trends such as high-performance comput
Slide 16: JPMorgan Japanese Investment Trust plc
JPMorgan Japanese Investment Trust plc Morningstar Rating As of 31 December 2024 Outperformed the benchmark by 10.6% and ESG High conviction, Quality growth tilt 1.8% over 1 year and 10 concentrated years* # Morningstar® Sustainability Rating ** (*As at 31 December 2024) PM team based in Tokyo All c
Slide 17: JPMorgan Japanese Investment Trust plc
JPMorgan Japanese Investment Trust plc Investment objective Aims to produce capital growth from Japanese investments. The Company will maintain a portfolio almost wholly invested in Japan and it emphasizes capital growth rather than income. Returns are principally determined by the performance of th
Slide 18: Important information
Important 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
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