# Jupiter India Select
## Schedule of Investments as at 30 September 2020 (continued)
| Forward Currency Exchange Contracts |
| --- |
| Currency Purchased | Amount Purchased | Currency Sold | Amount Sold | Maturity Date | Counterparty | Unrealised Gain/(Loss) USD | % of Net Assets |
| EUR | 8,206 | USD | 9,595 | 01/10/2020 | J.P. Morgan | 14 | (0.01) |
| USD | 417 | EUR | 355 | 02/10/2020 | J.P. Morgan | 1 | – |
| Total Unrealised Gain on Forward Currency Exchange Contracts - Assets	15	(0.01) |
| EUR | 1,892 | USD | 2,224 | 02/10/2020 | J.P. Morgan | (8) | 0.01 |
| USD | 2,444 | EUR | 2,090 | 01/10/2020 | J.P. Morgan | (4) | – |
| USD | 171 | GBP | 134 | 01/10/2020 | J.P. Morgan | – | – |
| USD | 275 | GBP | 215 | 02/10/2020 | J.P. Morgan | – | – |
| Total Unrealised Loss on Forward Currency Exchange Contracts - Liabilities | (12) | 0.01 |
| Net Unrealised Gain on Forward Currency Exchange Contracts - Assets | 3 | – |

The accompanying notes form an integral part of these financial statements.
| Jupiter Japan Select |  |
| --- | --- |
| Review of Portfolio as at 30 September 2020 |
| Performance |  |  |  |
| NAV | 30 September 2020 | 30 September 2019 | % Change |
| Class D EUR Acc | €13.38 | €13.28 | 0.75 |
| Class D USD Acc | $16.25 | $15.03 | 8.12 |
| Class I JPY Acc | JPY 10,995 | JPY 10,384 | 5.88 |
| Class L EUR Acc | €24.59 | €24.59 | - |
| Class L GBP A Inc | fi25.34 | fi24.81 | 2.82+ |
| Class L USD Acc | $20.78 | $19.37 | 7.28 |
| Benchmark in Fund base currency Topix Index |  |  | 7.40 |

+ Performance takes into consideration dividend distributions during the year.

## Market Review
The closing months of 2019, which seem much longer than a year ago given everything that has happened since, saw markets generally buoyed by optimism about the path of US-China trade talks, while the market was supported by continued buy backs from corporates and various group restructurings, which clearly showed the dynamism prevailing amongst Japanese corporates.
In 2020, however, news flow and sentiment soon came to be utterly dominated by one topic: the emergence of a new strain of coronavirus, now known as Covid- 19. In March the Covid-19 outbreak was upgraded to pandemic status and governments around the world put their citizens into lockdown to slow the spread of the disease. Equity markets around the world went into freefall before partly rebounding following a robust response from governments and central banks.
Japan’s proximity to and commercial connections with China, where the outbreak originated, ensured that the market would not be spared as investors’ appetite for risk waned. Yet, versus other major global markets, Japanese equities were reasonably resilient. One supportive factor for Japan is that the virus so far appears to have weighed less heavily upon Japan than it has other countries. That said, we would continue to urge against complacency, as we’ve seen already that the situation can change rapidly and that the virus has a habit of coming back in second and perhaps even third waves.
Japan’s ranking among other major markets year-to-date, in which it beats the UK and Europe but lags behind the US, can partly explained by the ongoing investor preference for more richly priced growth stocks, especially those with asset-light business models and non-cyclical earnings streams versus asset- heavy, more cyclically exposed but cheaper value stocks. As the home of the highly-valued technology companies like Apple, Facebook and Amazon the US market is particularly driven by the former whilst Japan, where more than half of companies have traded below the value of their tangible equity this year, is mostly exposed to the latter.
At a press conference on 28th August, Prime Minister Abe declared his resignation from office. Over the course of Abe’s second stint as Prime Minister, Japan’s TOPIX index (TSE 1st Section) appreciated some 90% so it is unsurprising that to many he became emblematic of the Japanese stock market’s post- Global Financial Crisis, post-earthquake renaissance. However, despite an immediate intraday sell-off in reaction to the news the market soon stabilised and ended the month marginally higher than just before the announcement was made.
If the news of Abe’s departure was taken in the market’s stride, the emergence of Yoshihide Suga as his successor was not – or at least not by the telecom sector about which Suga has been outspoken in the past. All of the major mobile telecom network operators slumped at the end of the month, led by KDDI, as investors struggled to assess the likely impact of a Suga premiership given his well-known views on the price of mobile phone services. This is a delicate situation and a relevant one for us given the exposure to the sector in the fund and, although the risks here do not keep us awake at night, we are very cognisant that its something we need to keep a close eye on.

## Policy Review
Technology related businesses featured heavily in the fund’s top performers over the year – chip manufacturing hardware makers Tokyo Electron and Lasertec as well as automation company Daifuku, which has a strong semiconductor business, contributed significantly to performance.
Another positive was JMDC, a company focused upon the monetisation of medical data, which continues to find favour much as other non-cyclical, asset-light, data-driven businesses have over recent months. Other contributors included home renovator Katitas and HR and media conglomerate Recruit.
Turning to the negatives, it is perhaps unsurprising given the market preferences noted above, that the funds’ largest detractors included asset heavy, lower valuation, higher yielding stocks like real-estate investment trust Star Asia, megabank SMFG and global insurance major Tokio Marine.

Translation (ENFR, 2020-09-30):
# Jupiter India Select
## Liste des placements en date du 30 septembre 2020 (suite)
| Contrats de change à terme |
| --- |
| Devise | Montant | Devise | Montant | Date |  | Plus-value/ (moins-value) non réalisée | % de |
| achetée | acheté | vendue | vendu | d'échéance | Contrepartie | USD | l’actif net |
| EUR | 8 206 | USD | 9 595 | 01/10/2020 | J.P. Morgan | 14 | (0,01) |
| USD | 417 | EUR | 355 | 02/10/2020 | J.P. Morgan | 1 | – |
| Plus-value totale non réalisée sur contrats de change à terme - Actif	15	(0,01) |
| EUR | 1 892 | USD | 2.224 | 02/10/2020 | J.P. Morgan | (8) | 0,01 |
| USD | 2 444 | EUR | 2 090 | 01/10/2020 | J.P. Morgan | (4) | – |
| USD | 171 | GBP | 134 | 01/10/2020 | J.P. Morgan | – | – |
| USD | 275 | GBP | 215 | 02/10/2020 | J.P. Morgan | – | – |
| Moins-value totale non réalisée sur contrats de change à terme - Passif | (12) | 0,01 |
| Plus-value nette non réalisée sur contrats de change à terme - Actif | 3 | – |

Les notes annexes font partie intégrante des présents états financiers.