Jupiter Financial Innovation
Important Information
- Jupiter Financial Innovation (the “Fund”) invests at least 70% of its Net Asset Value in a global portfolio consisting of: (i) equity and equity related securities (including preference shares, warrants, participation notes and depositary receipts) which may be issued by issuers located in any country and which the Investment Manager believes drive or benefit from (or have the potential to drive or benefit from) financial innovation, including but not limited to payments technology, digital financial services, mobile banking and blockchain; and (ii) financial derivative instruments (“FDI”), with the aim to achieve capital growth in the long-term.
- The Fund’s investment portfolio may subject to strong price fluctuations and fall in value with no guarantee of the repayment of principle. Its investment in equities is subject to market risks influenced by various factors. In particular, investment in (i) above may have an adverse impact on the value of the Fund’s investments, including but not limited to the associated concentration risk, the risk of obsolescence, negative impact by the change of governmental policies, and risks associated with dramatic and unpredictable changes to growth rates and personnel, and the loss or impairment due to the heavy dependant on patent and intellectual property rights and/or licenses. In addition, the Fund’s investment is also generally subject to volatility, liquidity, currency, default, price and foreign exchange risks. It could deteriorate significantly should there be any adverse credit events occurred in any particular investment in a country or region.
- The Fund may make use of any one or a combination of the following instruments for investment, hedging or efficient portfolio management purposes: futures, options and swaps and other FDIs. The Fund has the power to use FDI extensively for investment purposes and will be directly exposed to the risks of the FDIs, including but not limited to significant leverage risks, counterparty/credit risks, basis risks, liquidity risks, valuation risks, over-the-counter transaction risk, risks of failing to meet margin calls and the risks of total/significant loss. The Fund can use gearing, which is a method used to increase the exposure of the portfolio to financials markets through the use of loans or FDI. Gearing may lead to large and sudden movements in the value of the portfolio.
- This investment involves risks which may result in loss of part or the entire amount of your investment. Investors should not base their investment decision on this document alone and must refer to the Hong Kong offering documents of the Fund for further details (including risk factors) prior to investing.
The evolutionary power of financial innovation
It’s no secret that technological innovations have transformed the way people communicate, shop and perform banking transactions.
These advancements are often accelerated by environmental factors, such as the coronavirus crisis, and as such the near future looks radically different to today. The Jupiter Financial Innovation invests in innovative and dynamic companies riding these waves of change, providing investors with a way to maximise the opportunity of these long-term structural trends.
The last decade has seen dramatic change for the financials sector. While the large banks and insurers still have a critical role to play, technological developments, new regulations and the growing need to digitalise have combined in recent years to catalyse an irreversible trend towards financial innovation across the sector. As disruptors have emerged and established players have invested in new technologies, the pool of potential investment opportunities has significantly expanded.
The fund manager seeks out the leading ‘users’ and ‘enablers’ that are set to benefit from long-term structural changes in the financial sector, particularly in areas such as digitalisation, payment solutions, data analytics, and security.
These advancements are often accelerated by environmental factors, such as the coronavirus crisis, and as such the near future looks radically different to today. The Jupiter Financial Innovation invests in innovative and dynamic companies riding these waves of change, providing investors with a way to maximise the opportunity of these long-term structural trends.
The last decade has seen dramatic change for the financials sector. While the large banks and insurers still have a critical role to play, technological developments, new regulations and the growing need to digitalise have combined in recent years to catalyse an irreversible trend towards financial innovation across the sector. As disruptors have emerged and established players have invested in new technologies, the pool of potential investment opportunities has significantly expanded.
The fund manager seeks out the leading ‘users’ and ‘enablers’ that are set to benefit from long-term structural changes in the financial sector, particularly in areas such as digitalisation, payment solutions, data analytics, and security.
An unconstrained approach
The fund’s experienced manager, Guy de Blonay, has a track record of generating returns in a variety of market conditions. He believes in opportunistic and effective investing across geographies, sub-sectors, growth, yield and special situations categories.
He combines top-down analysis of macroeconomic and structural growth trends with bottom-up analysis of individual stocks. The aim is to generate long-term returns for the fund’s investors by identifying underappreciated companies which the manager believes will drive, enable or benefit from structural change ongoing within the financial sector.
He combines top-down analysis of macroeconomic and structural growth trends with bottom-up analysis of individual stocks. The aim is to generate long-term returns for the fund’s investors by identifying underappreciated companies which the manager believes will drive, enable or benefit from structural change ongoing within the financial sector.
Disruptive technology and financial innovation
“Innovation is the ability to see change as an opportunity not a threat.”
– Steve Jobs
Financial institutions need to leverage modern technologies to compete successfully, so the fund invests in the leading ’users’ and ‘enablers’ of sustainable and efficient financial innovations. To do so, the fund manager considers financial innovation quite broadly, including areas such as mobile payments, artificial intelligence and electronic money.
A resilient investment opportunity
A weaker post-Covid global economy may disappoint growth expectations in some places, but the digital transformation theme remains a strong investment opportunity, pushing consumers and businesses to transform the way they communicate, shop and perform banking transactions.
A diverse set of opportunities
The global financial technology universe is large and diverse, and correlation between its different sub-sectors is low, meaning that the fund’s investors gain access to a diversified selection of stocks that can complement each other to add value in different market conditions. Some areas where we have been identifying leading companies and enablers of financial innovation recently include, digital banking, digital payments, data and security, and IT infrastructure and software.
Strong ESG Engagement
Supported by a dedicated ESG team at Jupiter, the fund manager has ESG (Environmental, Social, Corporate Governance)* at the core of his decisions; during H1 he voted in 100% of shareholder meetings and voted down at least one resolution in almost half of meetings (42%).
*Environmental, social and corporate governance are the three central factors of importance when assessing the sustainability and societal impact of a company or business.
*Environmental, social and corporate governance are the three central factors of importance when assessing the sustainability and societal impact of a company or business.
Jupiter Financial Innovation
Learn more about how this strategy invests in companies benefitting as digital innovation transforms the global fintech and financial services sectors.
Meet the team
Jupiter Global Financials Team
Guy de Blonay, Fund Manager, is a financial sector specialist. Over 25 years of experience provide him with a key advantage in understanding the dynamics of a sector that continues to evolve and transform. Guy is supported in managing the strategy by Antoine Hucher (Equities Analyst) and Jenna Zegleman (Product Specialist).
Literature
Click the button below to download all fund literatures of Jupiter Financial Innovation.