1
Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
…changing trends in consumer spending
from material items to experiences
1
Learning objectivesInvestors should leave the presentation with an ability to discuss…
…the importance of tourism for Asian
markets
2
…how technologies can create
opportunities for people
3
2
Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
● Humans are social animals, we need other people
● Travel, tourism and entertainment are areas where the human touch remains essential to a positive experience, with a trend towards people spending money on experiences rather than on ‘stuff’
● We will examine the investment potential for sectors still reliant on social interaction, and the ways in which technology can create opportunities for people rather than replacing them
Overview
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Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
The Jupiter taxi
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Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
Humans are social, competitive and adaptable animals
“ People are usually afraid of change because they fear the unknown. But the single greatest constant of history is that everything changes
Modern science and technology give humans powers that far exceed those of the ancient gods
Yuval Noah Harari
“ We need to winLike you need to breatheI've an interest in games
Gary Numan, Music for Chameleons
“800m jobs could be displaced by robotic process automation worldwide by 2030
McKinsey“ Over the next decade almost one in
four jobs created worldwide will be related to tourism
World Travel & Tourism Council
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Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
UNWTO – why tourism matters
Source: United Nations World Tourism Organization, 2017.
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Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
Further steady growth forecast
China’s international tourism expenditure
Source: CLSA, 05.07.17.
0
50
100
150
200
250
300
350
400
450
500
2000 2005 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F
US$
bn
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Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
Source: CLSA, 05.07.17.
Favoured destinations for Chinese touristsBreakdown of Chinese outbound tourism
Hong Kong 33% Macau 16%
Korea 4% Thailand 6%
Taiwan 3% Japan 7%
USA 3% Vietnam 3%
France 2% Singapore 2%
Malaysia 2% All others 19%
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Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
Australia’s inbound passenger mixChina represented 15% of Australia’s 8 million tourists in 2016
Source: CLSA, 05.07.17.Note: Jupiter has purchased the copyright to this image(s).
New Zealand 16%
UK 9%
China 15%
USA 9%
Singapore 5%
Japan 5%
Malaysia 5%
South Korea 3%
India 3%
Hong Kong 3%
Germany 2%
Other 25%
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Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
Macau: a popular entertainment destination
Note: Jupiter has purchased the copyright to this image(s).
10
Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
Macau: a popular entertainment destination
Note: Jupiter has purchased the copyright to this image(s).
11
Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
IHH Healthcare
Company example is for illustrative purposes only and is not a recommendation to buy or sell.
12
Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
Tencent
Company example is for illustrative purposes only and is not a recommendation to buy or sell.Note: Jupiter has purchased the copyright to this image(s).
13
Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
Portfolio dividend yield ranges
Holding examples are for illustrative purposes only and are not a recommendation to buy or sell. Quoted yields are not guaranteed and may change in the future.Source: Jupiter, 31.12.17.
Wesfarmers
AmcorHengan
Macquarie GroupSuncorpWestpac
Singapore ExchangeAIA
APATransurbanMacquarie-
KoreaInfrastructure
Fund AGL
Meridian Energy
A-REITMapletree Commercial
Mapletree LogisticsDexus
ScentreVicinity Link Reit
Hon HaiMediatekT.S.M.C.
<3% >5%3-5%
China MobileSingapore Telecom
General Consumption Tech
Telecoms
Financials
Other Infrastructure Utilities
Property
N.W.S. HoldingsS.T. Engineering
Sands ChinaSydney Airport
I.H.H.
Malaysia Airports
Tencent
Travel, tourism, entertainmentand healthcare
SamsungElectronics
14
Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
…changing trends in consumer spending
from material items to experiences
1
Learning outcomesInvestors should have gained an ability to discuss…
…the importance of tourism for Asian
markets
2
…how technologies can create
opportunities for people
3
15
Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.
This presentation is intended for investment professionals and not for the benefit of retail investors. Market and exchange ratemovements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the informationbut no assurance or warranties are given.Past performance is no guide to the future. Company examples are for illustrative purposes only and are not a recommendation to buy or sell. Quoted yields are not guaranteed and may change in the future. Awards and ratings should not be taken as a recommendation.For your security we may record or randomly monitor telephone calls. Jupiter Asset Management Limited (JAM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ is authorised and regulated by the Financial Conduct Authority.No part of this presentation may be reproduced in any manner without the prior permission of JAM.
Disclosure