jpmorgan asian investment trust plc investment manager

JPMorgan Asian Investment Trust plcInvestment Manager Presentation13th February 2020 | Annual General Meeting

Ayaz Ebrahim, Managing DirectorPortfolio Manager, Emerging Markets and Asia Pacific Equities

1

Investment objective and risk profile

Please refer to the Investor Disclosure Document, latest annual report, and Key Information Document (KID) for more information relating to the Company.

JPMorgan Asian Investment Trust plc

The value of investments and the income from them can go down and up, and you may not get back as much as you paid in. Past performance is not a guide to the future.

Exchange rate changes may cause the value of underlying overseas investments to go down as well as up.

Investments in emerging markets may involve a higher element of risk due to political and economic instability and underdeveloped markets and systems. Shares may also be traded less frequently than those on established markets. This means that there may be difficulty in both buying and selling shares and individual share prices may be subject to short-term price fluctuations.

This fund may use derivatives for investment purposes or for efficient portfolio management.

External factors may cause an entire asset class to decline in value. Prices and values of all shares or all bonds could decline at the same time.

This trust may utilise gearing (borrowing) which will exaggerate market movements both up and down.

This trust may also invest in smaller companies which may increase its risk profile.

Investment objectiveAims to provide capital growth from a diversified portfolio of around 50 to 80 companies quoted on the Asian stock markets, excluding Japan. The Company pays quarterly dividends equivalent to 1% of its net asset value, set on the last business day of each financial quarter. The Company also has the ability to use gearing up to a maximum level of 20% of net assets to increase potential returns to shareholders.

2

Performance (GBP)

Inception date: 12th September 1997* Prior to 1st January 2001, MSCI AC Asia ex Japan (GDR).**Arithmetic excess return presented. Figures may not add up due to rounding.Source: J.P. Morgan Asset Management. Net asset value performance data has been calculated on a NAV to NAV (using the cum income NAV with debt at fair) basis, including ongoing charges andany applicable fees, with any income reinvested, in GBP. Please refer to the offering document(s) for details, including the risk factors before investing. Indices do not include fees or operatingexpenses and are not available for actual investment.Past performance is not an indication of current and future performance.

JPMorgan Asian Investment Trust as of 30th September 2019

2010 2011 2012 2013 2014 2015 2016 2017 2018JPMorgan Asian Investment Trust (NAV) 28.88 -23.50 13.55 2.89 11.27 -2.03 26.37 35.97 -5.27

MSCI AC Asia ex Japan (NDR)* 23.38 -16.69 16.99 1.16 11.32 -3.91 25.77 29.45 -9.05

NAV Excess Return** 5.50 -6.81 -3.43 1.74 -0.05 1.87 0.60 6.52 3.79

Annualised performance (%)

Calendar year performance (%)

Market valueJPMorgan Asian Investment Trust GBP 377.3m

Three months

Six months YTD

One year

Three years

Five years

Since launch

JPMorgan Asian Investment Trust (NAV) 0.45 2.69 13.16 7.94 12.04 14.04 7.84

MSCI AC Asia ex Japan (NDR)* -1.37 0.32 9.26 2.18 8.21 10.11 6.60

NAV Excess Return** 1.82 2.37 3.91 5.76 3.83 3.94 1.24

3

Performance attribution

Source: J.P. Morgan Asset Management, MSCI, FactSet, gross of fees in GBP. Data for Total Attribution shown (stock selection plus country/sector allocation). Attribution may not match official returnsdue to differences in systems, rounding. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the InvestmentManager without notice. Past performance is not an indication of current and future performance.

JPMorgan Asian Investment Trust 12 Months ending 30th September 2019

2.56

1.49

1.32

0.93

0.57

0.34

0.24

0.22

-0.07

-0.20

-0.24

-0.70

0.10

-1.0 0.0 1.0 2.0 3.0 4.0

Financials (o)

Health Care (o)

Communication Services (u)

Consumer Discretionary (o)

Information Technology (u)

Real Estate (o)

Materials (u)

Industrials (u)

Managed Funds (o)

Utilities (u)

Energy (u)

Consumer Staples (u)

Cash

Asset allocation Stock selection

Country attribution (%)

Attribution summary Stock: 5.35Sector: 1.22

Benchmark MSCI AC Asia ex Japan

Sector attribution (%)

Attribution summary Stock: 6.19Country: 0.38


3.22

1.14

0.91

0.78

0.21

0.16

0.13

0.08

0.02

-0.02

-0.07

-0.11

0.10

-1.0 0.0 1.0 2.0 3.0 4.0

China (o)

Taiwan (u)

Indonesia (o)

Korea (o)

Malaysia (u)

Thailand (u)

Hong Kong (o)

Philippines (u)

Pakistan (u)

Singapore (u)

Vietnam (o)

India (u)

Cash

Asset Allocation Stock Selection

4

Top 10 contributors/detractors to active returns

Source: J.P. Morgan Asset Management, MSCI, FactSet, gross of fees in GBP.Attribution may not match official returns due to differences in systems, rounding. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable are subject tochange at the discretion of the Investment Manager without notice. The companies above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buyor sell. Past performance is not an indication of current and future performance

Top 10 contributors Country Sector Weight difference%

Stock return %

Impact%

HDFC Bank Limited India Financials 3.86 33.55 1.05Baidu, Inc. Sponsored ADR China Communication Services -0.94 -52.45 0.77Jiangsu Hengrui Medicine Co., Ltd. China Health Care 1.14 55.32 0.55Ping An Insurance (Group) Company of China, Ltd. China Financials 2.28 21.91 0.44Taiwan Semiconductor Manufacturing Co., Ltd. Taiwan Information Technology 2.40 11.56 0.38PT Bank Central Asia Tbk Indonesia Financials 1.14 40.93 0.38PT Telekomunikasi Indonesia (Persero) Tbk. Indonesia Communication Services 1.31 35.82 0.36AIA Group Limited Hong Kong Financials 2.69 13.33 0.36HDFC Life Insurance Co. Ltd. India Financials 0.61 67.25 0.32PT Astra International Tbk Indonesia Consumer Discretionary 1.18 2.06 0.30

JPMorgan Asian Investment Trust 12 Months ending 30th September 2019

Top 10 detractors Country Sector Weight difference%

Stock return %

Impact%

E-Mart, Inc. Korea Consumer Staples 1.30 -48.75 -0.91IndusInd Bank Ltd. India Financials 1.83 -11.03 -0.29Lotte Chemical Corp. Korea Materials 0.55 -11.50 -0.29Housing Development Finance Corporation Limited India Financials -0.88 -10.57 -0.26Maruti Suzuki India Limited India Consumer Discretionary 1.47 0.59 -0.25Link Real Estate Investment Trust Hong Kong Real Estate -0.36 -6.85 -0.20Swire Pacific Limited Hong Kong Real Estate 1.39 -6.93 -0.18Infosys Limited India Information Technology -0.81 23.12 -0.16PetroChina Company Limited China Energy 0.56 -30.66 -0.16Samsung Fire & Marine Insurance Co., Ltd Korea Financials 0.98 -20.79 -0.16


5

Performance attribution

Source: J.P. Morgan Asset Management, MSCI, FactSet, gross of fees in GBP. Data for Total Attribution shown (stock selection plus country/sector allocation). Attribution may not match official returnsdue to differences in systems, rounding. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the InvestmentManager without notice. Past performance is not an indication of current and future performance.

JPMorgan Asian Investment Trust Quarter ending 31st December 2019

0.41

0.31

0.29

0.21

0.06

0.05

-0.12

-0.20

-0.26

-0.31

-0.36

-0.69

-0.04

-1.0 -0.5 0.0 0.5 1.0

Information Technology (o)

Consumer Staples (u)

Utilities (u)

Health Care (o)

Industrials (u)

Real Estate (o)

Materials (u)

Consumer Discretionary (o)

Communication Services (u)

Managed Funds (o)

Energy (o)

Financials (o)

Cash

Asset allocation Stock selection

Country attribution (%)

Attribution summary Stock: -1.04Sector: 0.38


Sector attribution (%)

Attribution summary Stock: -0.53Country: -0.12


0.24

0.22

0.19

0.10

0.02

-0.00

-0.05

-0.15

-0.20

-0.29

-0.31

-0.40

-0.04

-1.0 -0.5 0.0 0.5 1.0

Thailand (u)

Taiwan (u)

Malaysia (u)

Philippines (u)

Singapore (u)

Pakistan (u)

Hong Kong (o)

Indonesia (o)

India (o)

Korea (o)

Vietnam (o)

China (o)

Cash

Asset Allocation Stock Selection

Investment Process

7

Investment philosophy

…fundamental, pragmatic, disciplined.

Our strategy combines bottom-up stock selection and top-down asset allocation to deliver a portfolio that aims to consistently add value over multiple market cycles.

We believe investing in core franchises that can deliver compounded growth over the long term, quality growth and restructuring or cyclical earnings recovery should produce superior returns over time.

Expert local knowledge supplemented by regional and global sector research produces a broad research platform, from which the portfolio managers can identify high conviction stock ideas that meet the above criteria.

We believe that buying attractively valued countries and currencies differentiates us from the average manager and our proprietary multi-factor based model provides discipline to the asset allocation process.

8

Sustainable Investing – Emerging Market & Asia Pacific Equities

Source: J.P. Morgan Asset Management. March 2019. ESG = Environmental, Social, Governance*per annum, relative to team’s coverage **Quintiles are based on total number of stocks, not market capitalization. The companies above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. ROE = Return on Equity

We seek companies that run their businesses in a sustainable way, treating minority shareholders fairly and engaging in practices likely to enhance the company’s reputation, not compromise it

Research Approach

Engagement

Portfolio Construction

Strategic Classification is our assessment of a business’s potential for long-term value creation

98-question Risk Profile assesses multiple factors, including ESG, with a heavy tilt to Governance

A commitment to proxy voting, with elections proposed by our analysts and approved by PMs

>5,000 company meetings annually to enhance our understanding of issues and encourage best practices

Position sizing informed by Strategic Classification and Risk Profile

Target companies rated Premium or Quality

Representative Example – ESG in action

Excess return* by Risk Profile quintile (Jan-12 to Mar -19)

We aim to reinforce positive behaviour through engagement Samsung Electronics – Addressed capital allocation and

dividend policies, which have depressed ROEs Lukoil – Raised concerns about management of oil spills and

the need to replace aged pipelines.

Businesses with strong governance and few red flags tend to outperform over time

Businesses with numerous red flags tend to underperform significantly over time

Risk Profile

Few red flags Many red flags

Alpha by Quintile**2.1%

0.7%

-0.8%-1.9%

-0.2%-4.0%-2.0%0.0%2.0%4.0%

Q1 Q2 Q3 Q4 Q5

Current Portfolio

10

Sector and country positions

Source: J.P. Morgan Asset Management. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice.

JPMorgan Asian Investment Trust plc as of 31st December 2019

Relative to benchmark (%)

Relative to benchmark (%)

5.8 4.52.5

-1.2

2.6 1.8 0.8

-0.1 -0.5 -0.9 -1.9 -3.1 -3.4 -3.5

0.1

-5.0

0.0

5.0

10.0

Financials Insurance Banks DiversifiedFinancials

ConsumerDiscretionary

RealEstate

InformationTechnology

Energy HealthCare

CommunicationServices

Materials Utilities Industrials ConsumerStaples

Cash

Portfolio Weight (%) 28.8 10.6 16.8 1.4 17.8 7.7 19.2 3.9 2.6 10.7 2.4 0.0 3.3 1.7 0.1

Active and absolute sector positions

Portfolio Weight (%) 16.8 1.8 11.0 11.0 2.8 0.0 40.8 3.0 0.0 1.6 0.0 11.3 0.1

3.01.8 1.3 0.8 0.5

0.0 -0.1 -0.7 -1.1 -1.5 -2.1 -2.4

0.1

-4.0-2.00.02.04.0

KoreaSouth

Vietnam HongKong

India Indonesia Pakistan ChinaMain

Singapore Philippines Thailand Malaysia Taiwan Cash

Active and absolute country positions


11

Top 10 holdings Portfolio weight (%)

Alibaba Group Holding Ltd 7.8

Tencent 7.5

TSMC 7.2

Samsung Electronics 7.0

AIA 4.7

HDFC Bank 3.3

Ping An Insurance 3.3

China Construction Bank 3.1

China Resources Land 2.6

China Overseas Land 2.3

Portfolio positionsJPMorgan Asian Investment Trust plc as of 31st December 2019

Top 5 overweights Fundweight (%)

Relative position (%)

HDFC Bank 3.3 3.3

AIA 4.7 2.3

China Resources Land 2.6 2.3

Tencent 7.5 2.2

TSMC 7.2 2.0

Top 5 underweights Fundweight (%)

Relative position (%)

Reliance Industries 0.0 -1.1

ICBC 0.0 -1.0

Hon Hai Precision 0.0 -0.7

ICICI Bank 0.0 -0.7

Bank of China 0.0 -0.7


Source: J.P. Morgan Asset Management. The investment trust is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the Investment Manager without notice.

12

Market outlook

13

Key Issues for 2020

Source: J.P. Morgan Asset Management, MSCI, Standard & Poor’s. EM growth alpha: Consensus Economics . Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. REER = Real effective exchange rate.Ranges: last 20 years, as of end December 2019

Issues 2017 2018 2019 2020

Late Cycle Mid Cycle Late Cycle Late Cycle Extended cycle

USD Cycle (USD REER Index) Falling Rising Rising in 1HFalling in 2H Moderating

Emerging Markets Growth Alpha Improving Stable Stable Improving

Earnings Strong Flat Weak Improving

Valuation: Price to Book Attractive Average Below average Average

Research signal: Expected Return High Low High Average

Macro risk, growth and valuation

14

Central bank actions turned supportive since beginning of 2019

-60

-50

-40

-30

-20

-10

0

10

20

30

40

'05 '08 '11 '14 '17

39 cumulative cuts over the past 6 months

Number of rate hikes / cuts

Rolling count of last 6 months (34 DM & EM countries)

Source: Bloomberg, National Central Banks, Markit, J.P. Morgan Asset Management. DM = Developed Markets, EM = Emerging Markets.Data as of 31 December 2019. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met.

15

US Dollar strength remains a key driver for equity performance

Source: FactSet, MSCI, J.P. Morgan Asset Management. REER = Real Effective Exchange Rate* Based on MSCI total return index in U.S. dollar terms. Data reflect most recently available as of 31/12/19

Relative APxJ / DM equity performance and USD REER

Index, rebased 1995 = 100 Index, inverted scale

MSCI AC APxJ / MSCI The World (DM)* USD REER

The “US Dollar Smile”

US Recession& Risk-off

US growth outperformance

Global growth still positive, but US underperforms

Stronger USD

Source: J.P. Morgan Asset Management.For illustrative purposes only.

90

95

100

105

110

115

120

125

13020

40

60

80

100

120

'95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19

USD depreciation and Asian equity outperformance

USD appreciation and Asian equity underperformance

16

Are earnings revisions turning the corner?

Source: JPMorgan Asset Management. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Data reflect most recently available as of 31st December 2019. Forecasts are not a reliable indicator of future performance.

Earnings Revisions: MSCI Asia Pacific ex Japan (USD)

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19

Up

Dow

n R

atio

(x)

MSCI AC APxJ revision (U-D)/(U+D)

17

Valuations in-line with long term average

Source: MSCI, J.P. Morgan Asset Management. Indices do not include fees or operating expenses and are not available for actual investment. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Data reflect most recently available as of 31st December 2019

MSCI Asia ex Japan Trailing PB

1.6

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

04 06 08 10 12 14 16 18

-1sd 1.4

+1sd 2.1

x

Avg 1.8

18

Where do we see the most attractive expected returns?Five year expected return (ER): Forecast earnings, dividends, change in valuation and currency

Sector ER vs. MSCI AC Asia ex Japan Average (%) Country ER vs. MSCI AC Asia ex Japan Average (%)

10.0

10.1

10.2

10.7

11.0

11.9

12.5

13.5

13.8

14.8

8 10 12 14 16 18

Thailand

Philippines

Taiwan

Malaysia

Singapore

India

Hong Kong

Indonesia

China

Korea

9.2

10.0

10.8

11.2

11.5

11.5

12.1

12.5

12.7

13.0

15.9

8 10 12 14 16 18

Health Care

Consumer Staples

Utilities

Industrials

Communication Services

Materials

Real Estate

Information Technology

Consumer Discretionary

Energy

Financials

Source: MSCI, J.P. Morgan Asset Management. Index coverage for Five Year Expected Return may not be 100%Indices do not include fees or operating expenses and are not available for actual investment. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Data reflect most recently available as of 31st December 2019Forecasts are not a reliable indicator of future performance.

19

Volatility is inherent in Asian Equities

MSCI AC Asia ex Japan intra-year declines vs. calendar year returns

Despite average intra-year drops of -22% (median: -17%), annual returns are positive in 21 of 32 years

26% 28%

-10%

27%18%

99%

-18%

2%8%

-42%

-10%

62%

-36%

-6% -10%

43%

14%19%

30%37%

-54%

68%

17%

-19%

19%

1% 2%

-11%

3%

39%

-16%

15%

-11%-20%

-29%

-11%-12%-5%

-26%

-14%-11%

-46%-46%

-15%

-40%-38%-30%

-15%-21%

-9%-20%-18%

-63%

-20%-16%

-30%

-16%-15%-10%

-27%

-13%-5%

-26%

-14%

-80%

-60%

-40%

-20%

%

20%

40%

60%

80%

100%

'88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19

Source: FactSet, MSCI, J.P. Morgan Asset Management.Returns are price returns based on MSCI AC Asia ex Japan Index in U.S. dollar terms. Intra-year decline is the largest peak to trough decline during the respective year. Data reflect most recently available as of 31/12/19.

Calendar year returnIntra-year decline

20

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 of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy.

Investment is subject to documentation. The Investor Disclosure Document, Key Features and Terms and Conditions and Key Information Document can be obtained free of charge from JPMorgan Funds Limited or www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.

Material ID: 0903c02a824ca018

jpmorgan asian investment trust plc investment manager

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