Podcast Summary: The Master Investor Podcast with Wilfred Frost

Episode: Playing Asia Without China: Inside Jason Pidcock’s High-Conviction Portfolio
Guest: Jason Pidcock (Manager, Jupiter Asian Income Fund)
Date: November 26, 2025

Overview

In this engaging episode, Wilfred Frost hosts Jason Pidcock, a veteran Asia fund manager known for his “Asia without China” high-conviction investing approach. Pidcock shares the philosophy, construction, and evolution of the Jupiter Asian Income Fund. The discussion covers why the fund has zero exposure to China, its concentrated bets on Taiwan, India, Australia, Singapore, and South Korea, the nuanced case for Asian tech over US giants, and deep dives on current themes in global macroeconomics, US-China rivalry, India’s rise, and the burgeoning appeal of gold. The conversation is practical, philosophical, and rich with market insights.

Key Discussion Points & Insights

1. The Jupiter Asian Income Fund: High-Conviction and Discipline

• Fund Structure & Philosophy

  • 25 equally-weighted, large-cap holdings
  • No derivatives, currency hedging, or fixed income
  • Portfolio is “fully invested” and aims for robust, resilient returns (03:41)
  • Stresses capital growth (over half total returns) and income via higher earnings/dividends

• Portfolio Resilience

  • Preference for companies with strong balance sheets
  • 10 out of 25 holdings are net cash; others have low leverage
  • Historically lower drawdowns than the market (04:41)

• Performance Snapshot

  • Five-year outperformance: +80% vs. benchmark’s +40%
  • One-year underperformance due to China's rebound—which the fund missed due to zero China exposure (05:17)

2. Why Zero Allocation to China and Hong Kong

• Pidcock’s Rationale

  • “Investing in China is an unnecessary risk. There are plenty of other markets in the region where risks are lower, where we think returns will be higher. Communism is not conducive to satisfactory shareholder returns.” (10:10)
  • Political system and wealth distribution haven't translated into strong EPS growth/shareholder returns over decades

• Long-Term Data

  • Since 1993: MSCI China up 38% in USD, Australia up 1,800% in same timeframe (10:10)
  • Prefers indirect exposure via foreign companies selling into China

3. Macro Context: US Policy, Market Dynamics, Global Correlations

• US Monetary & Fiscal Policy Impact

  • Expectations for imminent rate cuts (Dec 2025, into first half of 2026)
  • “Fiscal policy is still quite lax... the budget deficit's enormous and that's one of the reasons why the gold price has been very, very strong.” (07:02)
  • More state capitalism, government involvement due to US/China rivalry (07:02)

• Global Equity Correlations

  • Major US sell-offs contagiously impact global equities but “markets can recover quicker if they’re not too expensive” (08:43)
  • Sees Asia valuations—especially tech—much more reasonable than US counterparts

4. Asia Portfolio Breakdown: Five-Market Focus

• Markets: Taiwan, Australia, Singapore, India, South Korea (09:48)
• Notable Absences: China, Hong Kong, and most other EMs (10:08)
• Tech Overweight: 37% of portfolio, mostly Taiwanese/South Korean firms (21:03)

Taiwan: The Asian Tech Hub (18:51)

• Concentrated exposure—main way to play AI hardware; companies like TSMC, Hon Hai, MediaTek, Samsung Electronics
• “If we want to play the theme that we’re currently playing in tech, particularly tech hardware, with a bias towards AI, the best place to do that right now is Taiwan.” (19:07)
• Acknowledges geopolitical risk from China but highlights a discount in valuations reflecting this (19:07)
• Taiwanese tech valuations at a 40%+ discount to US; dividend yields much higher (3.4% vs US “under 0.5%”) (22:06)

India: The Most Attractive Developing Market (22:12)

• “India just dwarfs all other emerging markets ... The population is still growing. GDP per capita is growing. We've got five companies that we feel are very well managed, and we're playing domestic consumption.” (22:25)
• Five Indian stocks, diversified across business models
• Governance has improved; remains selective (23:38)
• Valuations normalized after a period of overvaluation, starting to look attractive again (24:07)

Australia: The Gold (and Energy) Case (25:04)

• Significant portfolio weight in commodity/energy and gold companies
• “It would be irresponsible not to have exposure to gold ... It has served its purpose as a store of value.” (25:04)
• Central banks and investors increasingly receptive to gold amidst loose fiscal/monetary policy
• Gold miners are “hugely profitable … free cash flow generation is enormous” (25:04)
• Two large-cap gold miners represent ~8.5% of the fund (25:04–27:08)

5. China’s Geopolitics & Technology Race

• China vs. US: Innovation & Decoupling

  • “There is this race going on between the US and China ... you see a decoupling and different technology standards, or you get to a point where one country has clearly exceeded the other.” (12:00)
  • China leads in certain patents, energy costs, robotics—yet struggles with demographics and inefficient economy (13:45)

• China–Russia “Friendship”

  • “It is a pact of convenience ... Russia’s leaning very heavily on China ... it’s going to be a very distorted or lopsided partnership.” (16:29)

• US Approaches to China

  • Balancing engagement and security concerns (“the US is taking China very, very seriously as a political foe, but they're sort of hedging their bets on how to deal with that” [17:38])
  • Rare earth dependence likely keeps relations ambivalent until new supply alternatives are developed (17:38)

6. Philosophical and Career Advice

• Career Moves

  • Pidcock reflects on the decision to leave Newton for Jupiter, valuing autonomy and absence of a “house view” (29:34)
  • “I have a franchise within a business and I love that.” (29:34)

• Investment Principles

  • “Do what feels right for you. Trust your gut feeling. Don't just follow other people or take other people's advice because it's been given.” (32:22)
  • “If you're a very emotional person, don't do it. It'll drive you crazy. You have to be fairly level headed ... I would invest in what you know … Don't overly diversify and do take a long-term view.” (32:22)

Notable Quotes & Memorable Moments

On China’s Investment Case:
“Communism is not conducive to satisfactory shareholder returns. It’s the political system which has meant that a lot of wealth that’s been generated in China ... hasn’t translated efficiently into EPS growth and shareholder returns.”
— Jason Pidcock [10:10]

On US Monetary Policy:
“We are expecting interest rates to come down probably next month, December, from the Fed cutting rates. And in the first six months of next year when the new Fed chair joins ... I wouldn’t be surprised if one of their first actions is to cut rates further.”
— Jason Pidcock [07:02]

On Asian Tech Valuations:
“More than a 40% discount to a lot of the richly valued names in the US ... average yield of about 3.4% from our tech stocks; I think the average of the MAG7 is probably less than about half a percent.”
— Jason Pidcock [22:06]

On Gold Exposure:
“It would be irresponsible not to have exposure to gold in any portfolio ... At current spot prices, many gold companies are hugely profitable. Their free cash flow generation is enormous, allowing them to either raise their share buyback programs or pay higher dividends or think about expansion.”
— Jason Pidcock [25:04]

On Investment Advice:
“My overall bit of advice was do what feels right for you. Trust your gut feeling. Don’t just follow other people or take other people’s advice because it’s been given. ... If you’re a very emotional person, don’t do it. It’ll drive you crazy.”
— Jason Pidcock [32:22]

Important Segment Timestamps

• [03:41] – Fund construction, philosophy, and selection discipline
• [05:17] – Multi-year performance analysis and missteps
• [07:02] – US macro outlook and global liquidity
• [09:48] – Current portfolio market breakdown
• [10:10] – Zero allocation to China explained, historic China returns
• [12:00] – China/US tech rivalry and robotics future
• [13:45] – China’s demographic headwinds
• [16:29] – China–Russia relationship and geopolitical shifts
• [18:51] – Case for high Taiwan tech allocation and geopolitical risks
• [21:03] – Detailed sector allocations (Tech, India, Australia)
• [22:12] – India as top emerging market pick, corporate governance
• [25:04] – Gold thesis and Australian gold miners
• [29:34] – Career reflections and fund management philosophy
• [32:22] – Pidcock’s investment advice and life philosophy

Tone and Language

The conversation is candid, practical, sometimes contrarian (especially on China), and marked by over 30 years of Asia investment wisdom. Pidcock’s advice is grounded, unsentimental, and encourages independent critical thinking for listeners at all experience levels.

This summary captures the episode’s essential insights and moments, offering a thorough guide for investors and business enthusiasts alike.