Sustainable investment labels help investors find products that have a specific sustainability goal.
For more information about the Jupiter Ecology Fund’s sustainability goal, approach, and relevant metrics, please see its Consumer Facing Disclosure.
Overview
The Jupiter Ecology Strategy has been investing since 1988 in companies focused on solving environmental challenges such as climate change and natural capital depletion. These companies help support the transition to a more sustainable world.
Our longstanding philosophy is that as environmental issues become more ever more pivotal to global development, so too do environmental solutions in their marketplaces, providing a potential source of long-term investment returns.
Ecology: the relationship of living things to their environment and each other
The strategy follows six environmental themes and is managed by Jon Wallace and Nicole Guo.
Clean Energy
Green Buildings & Industry
Sustainable Agriculture & Land Ecosystems
Circular Economy
Sustainable Oceans & Freshwater Systems
Green Mobility
Why environmental solutions investing?
Finding solutions
The organisations we invest in seek to address the profound challenges of climate change and natural capital depletion. The economy is embedded in the biosphere and our biosphere is facing severe degradation.
- Climate change
- Natural capital
- Growing opportunity
The scale of change required to reverse climate change is creating significant investment opportunities in environmental solutions companies, which provide critical products and services to help businesses achieve sustainability targets. These solutions are likely to spread widely to as-yet unpenetrated sectors.
- Companies: Around 20% of Forbes Global 2000 companies, generating sales of $14 trillion, have committed to net zero carbon emission
targets. The most sophisticated of these commitments – Scope 3 – covers suppliers, end users and product disposal - Countries: National net zero pledges cover 68% of global GDP, 56% of global population and include US, China, UK, EU and Japan
Source: Black, R., Cullen, K., Fay, B., Hale, T., Lang, J., Mahmood, S., Smith, S.M. (2021). Taking Stock: A global assessment of net zero targets, Energy & Climate Intelligence Unit and Oxford Net Zero. Note: Scope 1 emissions are direct greenhouse (GHG) emissions from sources controlled or owned by a company. Scope 2 are indirect GHG emissions associated with the purchase of electricity, heat or cooling. Scope 3 are all indirect emissions not included in Scope 2 that occur in the value chain, including upstream supply and logistics, and downstream activities such as the use and disposal of sold products.
Why Jupiter Ecology Strategy?
Active, specialist, collaborative, long-term horizon
*Fund Manager limits, not fund limits and may be subject to change.
Strategy holdings examples
Green Mobility
Solution
Automotive technologies
Aptiv is a global technology company focussing on the solutions needed to make vehicles safer, greener and more connected, such as solutions to accommodate larger battery packs and faster charging for electric vehicles, while protecting battery performance.
Circular Economy
Solution
Sensor-based sorting machines for recycling
Tomra is a Nordic-based global leader in technologies that enable the Circular Economy such as ‘reverse vending’ solutions that encourage recycling.
Sustainable Agriculture & Land Ecosystems
Solution
Biomaterials
Borregaard enables the substitution of oil-based chemicals with natural alternatives derived from wood waste for a wide range of materials.
Green Buildings & Industry
Solution
Electrification & automation efficiencies
Schneider Electric’s products and services operate in and at the intersection of energy management and industrial automation. Described as “the world’s largest invisible brand”, Schneider Electric’s products and services help promote the smarter and more efficient use of energy in buildings and industry.
Examples are for illustrative purposes only and are not a recommendation to buy or sell. The views expressed are those of the fund manager at the time of publication and may change in the future. Source: company data as at 01.05.23.
Strategy specific risks
- Currency (FX) Risk – The strategy can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
- Pricing Risk – Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
- Derivative risk – the strategy may use derivatives to reduce costs and/or the overall risk of the strategy (this is also known as Efficient Portfolio Management or “EPM”). Derivatives involve a level of risk, however, for EPM they should not increase the overall riskiness of the strategy.
- Counterparty Risk – the risk of losses due to the default of a counterparty e.g. on a derivatives contract or a custodian that is safeguarding the strategy’s assets.
- ESG (thematic) – Investments are selected or excluded on both financial and nonfinancial criteria, adopting an environmental solutions thematic approach to sustainable investment. The strategy’s performance may differ from the broader market or other strategys that do not utilize sustainable investment criteria when selecting investments. The strategy’s investments are required to meet this criteria and the strategy may sell a security for reasons related solely to its sustainable investment criteria.
- ESG Data – The strategy uses data from third parties (which may include providers for research, reports, screenings, ratings and/or analysis such as index providers and consultants) and that information or data may be incomplete, inaccurate or inconsistent.
For a more detailed explanation of risk factors, please refer to the "Risk Factors" section of the Scheme Particulars.
Important Information
This document is intended for investment professionals and is not for the use or benefit of other persons, including retail investors. This document is for informational purposes only and is not investment advice. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. Past performance is no guide to the future. The views expressed are those of the Fund Manager(s) at the time of writing, are not necessarily those of Jupiter as a whole and may be subject to change. This is particularly true during periods of rapidly changing market circumstances. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. Holding examples are not a recommendation to buy or sell. Quoted yields are not a guide or guarantee for the expected level of distributions to be received. The yield may fluctuate significantly during times of extreme market and economic volatility. Issued by Jupiter Unit Trust Managers Limited (JUTM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ which is authorised and regulated by the Financial Conduct Authority. No part of this document may be reproduced in any manner without the prior permission of JUTM. 28032