A multi-income journey into the emerging high-yield potential
Income investors like us have stayed the course as we ride through the four seasons. Where do we see income opportunities?
Q1. What are the megatrends in the digital revolution?
Megatrends in tech1
Source: Shutterstock, J.P. Morgan Asset Management. Provided for information only to illustrate generic market trends, not to be construed as research or investment advice.
Q2. What are the future trends in healthcare?
Q3. How is the digital revolution transforming Asia?
e-commerce penetration in Asia4
Source: Company data. J.P. Morgan Asset Management. Data as of end-August 2020. For illustrative purposes only. Forecasts, projections and other forward looking statements are based upon current beliefs and expectations. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated. Provided for information only to illustrate generic market trends, not to be construed as research or investment advice.
Q4. How important is environmental, social and governance (ESG) for tech investing?
Q5. Is a repeat of the tech bubble likely?
Current upcycle vs tech bubble7
MSCI AC Asia Pacific Information Technology Index (sources of total return breakdown in US dollars)
Past performance is not indicative of future performance.
Conclusion
To ride the wave for future growth, it is critical to identify an enduring growth franchise instead of focusing on certain economies, or looking to time the market. Focusing on the mega trends, alongside an active approach, could help long-term investors better capture quality opportunities.
Provided for information only based on market conditions as of date of publication, not to be construed as investment recommendation or advice. Forecasts/ estimates may or may not come to pass.
1. Source: Shutterstock, J.P. Morgan Asset Management. Provided for information only to illustrate generic market trends, not to be construed as research or investment advice.
2. ERP stands for enterprise resource planning; SaaS stands for software as a service; PaaS stands for platform as a service.
3. Source: Frost & Sullivan, Gartner, Bernstein analysis, J.P. Morgan Asset Management. Data as of 31.08.2020 or most recently. Forecast numbers reflect the estimated data in 2020. For illustrative purposes only. Forecasts, projections and other forward looking statements are based upon current beliefs and expectations. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated. Provided for information only to illustrate generic market trends, not to be construed as research or investment advice.
4. Source: Company data. J.P. Morgan Asset Management. Data as of end-August 2020. For illustrative purposes only. Forecasts, projections and other forward looking statements are based upon current beliefs and expectations. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated. Provided for information only to illustrate generic market trends, not to be construed as research or investment advice.
5. Dividend rate is not guaranteed. Past performance is not indicative of future performance.
6. Source: S&P Global Ratings, FTSE Russell, MSCI. Data as of 31.08.2020. Information technology represented 28.7% of the S&P 500 Index, 16.9% of the MSCI AC Asia Pacific ex Japan Index and 0.9% of the FTSE 100 Index.
7. Source: Bloomberg. J.P. Morgan Asset Management. Data as of end August 2020. Forecasts, projections and other forward looking statements are based upon current beliefs and expectations. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. J.P. Morgan Asset Management may or may not hold positions on behalf of its clients in any or all of the aforementioned securities. Provided for information only to illustrate generic market trends, not to be construed as research or investment advice. Indices do not include fees or operating expenses and are not available for actual investment.
Investment involves risk. Not all investments are suitable for all investors. Past performance is not a reliable indicator of current or future results. Please refer to the offering document(s) for details, including the risk factors. Investors should consult professional advice before investing. Investments are not similar to or comparable with fixed deposits. The opinions and views expressed here are as of the date of this publication, which are subject to change and are not to be taken as or construed as investment advice. Estimates, assumptions and projections are provided for information only and may or may not come to pass. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.