Investing in companies leading the transition to a more sustainable world
The Jupiter Global Leaders Strategy targets global leading companies that in our view are at the forefront of the transition to a more sustainable world through how they behave and the real-world outcome of what they sell. We take a long-term approach to investing and therefore consider quality in the context of how companies balance the considerations of Planet, People and Profit.
Planet, on which we all depend
Companies who manage the environmental footprint of their revenue/operations.
People, with whom we all co-exist
Companies that invest in people, in our view, offer a proxy for operational excellence.
Profit, required for our long-term savings
Companies managing their business for long-term economic sustainability through a cycle, not short-term sentiment.
A strategy with economic stability at its heart
The strategy targets companies that are financially stable, operationally efficient, and have resilient profitability. Strong economic foundations are core to our assessment of leadership, and we believe set the firmest foundation for leadership in environmental and social outcomes as well.
When considering Environmental, Social and Governance (ESG) factors, the investment strategy takes into account what a company sells and how it behaves, focusing on materiality in the context of future cash flows and relevance to economic resilience. For example, if a company keeps the interests of its key stakeholders at the core of its decision-making, in our view it is more likely to have a productive workforce, strong client retention, and more resilient profitability. If a company proactively manages its impact on the planet by using green energy, using less water, creating less waste, and embedding biodiversity considerations, that is an indication of a long-term approach to its future resilience.
We look to understand how companies address key societal imperatives such as gender and social equality, decarbonisation, improving preventative healthcare and broadening access to financial services through analysing how they behave and what they sell.
Aligned to good environmental and social outcomes
How the strategy’s investments perform against their sustainability characteristics is an important part of our conviction in our holdings. As such, the investment team is focussed on how the strategy’s investments align with good environmental and social outcomes, including those real-world outcomes captured by the UN Sustainable Development Goals and the Paris Agreement.
Companies the strategy invests in will either:
- provide products or services that are, or operate in a way that is, aligned with the delivery of one or more of the United Nations Sustainable Development Goals (“UN SDGs”) (a blueprint provided by the United Nations, consisting of 17 SDGs to achieve a better and more sustainable future for all. The 17 SDGs address the global challenges faced, including those relating to poverty, inequality, climate change, environmental degradation, peace and justice2); or
- align operationally with the temperature goals of the Paris Agreement (a pledge by world leaders in 2015 to limit the global average temperature increase to well below 2 degrees above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels3).
The strategy also will not invest in a company that is assessed as violating the principles of the United Nations Global Compact4.
An unconstrained and bespoke approach
This is a high conviction, bottom up, unconstrained global equity strategy with economic resilience and stakeholder assessment at the heart of the investment process. We do not solely rely on third parties or ESG ratings. Instead, the investment team’s over four decades of combined experience of investing with stakeholder outcomes as a key focus is used to identify investment opportunities. This detailed work builds the investment case for each company.
Transparency
We integrate ESG considerations throughout the investment process in order to better understand sustainability as an output. By approaching our work in this way, we seek to provide attractive financial returns for our clients by investing in leading companies that in our view align to positive environmental and social outcomes. We offer investors transparency about the extent to which companies in which their savings are invested may be contributing to a more sustainable world through detailed reporting. We will also report progress against the KPIs related to the sustainability characteristics both in our Consumer Facing Disclosures and in our annual sustainability reporting.
What the Jupiter Global Leaders Strategy is, and what it isn’t
Important information
- Company shares (i.e. equities) risk: The value of investments can go down as well as up as a result of stock market movements and general market conditions. Other influential factors include political, economic news, company earnings and significant corporate events.
- 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.
- 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.
- 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.
- ESG and sustainability: Investments are selected or excluded on both financial and non-financial criteria. The strategy's performance may differ from the broader market or other strategies that do not utilise ESG/Sustainability criteria when selecting investments.
- ESG equity data: The strategy uses data from third parties (which may include providers for research, reports, screenings and/or analysis such as index providers and consultants) and that information or data may be incomplete, inaccurate or inconsistent.
- 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.
Meet the team
Jupiter Global Leaders Team
A significant proportion of the team have dedicated their entire investment careers to the structural drivers which underpin this investment opportunity of investing with stakeholder outcomes as a key focus. They are recognised as thought leaders and active industry-wide collaborators, with members contributing to the early design of the CFA ESG investing certificate. More recently, the team co-authored the Listed Instruments chapter for the CFA Certificate in Climate and Investing (CFA CCI).
Led by Abbie Llewellyn-Waters, investment manager, the strategy is well resourced, with dedicated analysts, Freddie Woolfe, Kristian Herrington and Carli Prewett. The team can also draw upon Jupiter’s central expertise, including Jupiter’s in-house Data Science team and Stewardship teams.
Since joining Jupiter Asset Management in 2006, Abbie has specialised in investing in global leading companies which are at the forefront of the transition to a more sustainable world, and with her team has built and designed a rigorous investment framework.
The team have won multiple awards and received industry recognition for their investment performance, approach to ESG integration, sustainability characteristics reporting and contribution to addressing the structural hurdles that women in investment face.⁵
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. The views expressed are those of the Investment Managers 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. Issued in the UK by Jupiter Asset Management Limited, registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ is authorised and regulated by the Financial Conduct. No part of this document may be reproduced in any manner without the prior permission of JAM.
Hong Kong: This document is intended only for “professional investors” as defined under the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and is not available to retail investors in Hong Kong. This document is made available to professional investors only and has not been reviewed by any regulatory body in Hong Kong. It is for reference only and for those persons or entities in any jurisdiction or country where the information in this website and use thereof is not contrary to local law or regulation. It is intended solely for the use of the person to whom it has been addressed and delivered and shall not be reproduced in any form or transmitted to any other third party. In particular: (i) no offer or invitation to subscribe for shares in any strategy mentioned in the website that may be made to the public in Hong Kong; (ii) this document has not been approved by the SFC or any other regulatory authority in Hong Kong and accordingly any strategy or investment products mentioned in the document may not be offered or sold in Hong Kong by means of this website other than in circumstances which do not constitute an offer to the public for the purposes of the Hong Kong Securities and Futures Ordinance (“SFO”), as may be amended from time to time. If you are in doubt, please consider seeking independent professional advice.
Singapore: No information in this document should be interpreted as investment advice. Any holdings and stock examples are used for illustrative purposes only. The views expressed are those of the presenter at the time of preparation and may change in the future. If you are unsure of the suitability of this investment please contact your Financial Adviser. This document has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this document nor any other document or material in connection therewith may not be circulated or reproduced, directly or indirectly, to persons in Singapore other than to an institutional investor under Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”). Prospective purchasers should inform themselves as to the legal requirements, exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile.
Japan: This document is provided solely in connection with the provision of discretionary investment management services to licensed discretionary investment management companies in Japan. It should not be used for any other purpose or distributed to any other private investors or persons. However anyone in possess of this document should bear in mind that the value of an investment and income can go down as well as up. It may be affected by exchange rate variations and you may not get back the amount invested. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. Quoted yields are not guaranteed. Past performance should not be seen as a guide to future performance. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Jupiter Asset Management Limited (‘JAM’) is registered in England and Wales (company number 2036243). The registered office is The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ. JAM is authorised and regulated by the Financial Conduct Authority in the UK whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS.
Taiwan: This communication is intended only for the use of Capital Gateway internally, and should not be distributed externally. It is for educational purposes only and not an offer to invest. Viewers of this website should bear in mind that the value of an investment in a strategy and the income from it can go down as well as up. It may be affected by exchange rate variations and you may not get back the amount invested. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. Quoted yields are not guaranteed. It is only directed at persons residing in jurisdictions where the Jupiter Asset Management and its shares are authorised for distribution or where no such authorisation is required. We recommend that you obtain professional advice before taking any investment decision. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. It is not an invitation to subscribe in any strategy managed by Jupiter Asset Management Limited. If you are unsure of the suitability of an investment please contact your financial advisor. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given.
Sources
1https://www.fca.org.uk/consumers/sustainable-investment-labels-greenwashing
2THE 17 GOALS | Sustainable Development
3The Paris Agreement | UNFCCC
4Homepage | UN Global Compact
5Investment Week Women in investment awards 2017. LAPF Investment Awards 2019, Impact Manager of the Year. ESG Investing Awards 2020 – Best Equity Fund (Highly Commended). 2022 Investment Week Sustainable Investment Awards - Best Sustainable Global Equity Fund (Highly Commended). Awards and ratings should not be taken as a recommendation.
