Challenge
Credit turmoil triggered by unexpected events such as the COVID-19 pandemic or the US banking crisis in 2023 could potentially hurt performance of fixed income funds as they are always accompanied by a spike in volatility. How do you guard against such a scenario?
Solution
Top-down macroeconomic analysis and careful credit selection backed by in-depth analysis are very important to manage unexpected swings. The Jupiter Dynamic Bond aims to maintain a balance between macro and credit risk, with long-term fundamental research underpinning the active views.
Monthly relative performance vs Morningstar Category* when HY spreads widened by 50 bps or more
The chart above shows, the strategy has been able to outperform the benchmark (Morningstar Global Flexible Bond category EUR hedged) most of the times since the fund was launched whenever the Bloomberg Global High Yield Index spreads widened by 50 basis points or more.
Benefits
- Active management aims to guard against volatility that’s detrimental to performance.
- A consistent track record of outperformance during a credit turmoil.
As of 30/11/2024 | Dec 2014 - Nov 2015 | Dec 2015 - Nov 2016 | Dec 2016 - Nov 2017 | Dec 2017 - Nov 2018 | Dec 2018 - Nov 2019 | Dec 2019 - Nov 2020 | Dec 2020 - Nov 2021 | Dec 2021 - Nov 2022 | Dec 2022 - Nov 2023 | Dec 2023 - Nov 2024 |
|---|---|---|---|---|---|---|---|---|---|---|
| Fund | 3.55% | 3.25% | 3.07% | -4.34% | 9.59% | 5.37% | 0.80% | -14.23% | 0.59% | 6.70% |
Past performance is no indication of current or future performance. Performance data does not take into account commissions and costs incurred on the issue and redemption of shares. Source: Morningstar, Jupiter Asset Management Limited. Share price stated close to close and includes any reinvestment income. NAV per Ordinary Share is the cumulative income NAV with debt at fair value and includes any reinvested income.
Fund specific risks
- Derivative risk - the strategy may use derivatives to generate returns and/or to reduce costs and the overall risk of the portfolio. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
- Contingent convertible bonds - The strategy may invest in contingent convertible bonds. These instruments may experience material losses based on certain trigger events. Specifically these triggers may result in a partial or total loss of value, or the investments may be converted into equity, both of which are likely to entail significant losses.
- Sub investment grade bonds - The strategy may invest a significant portion of its assets in securities which are those rated below investment grade by a credit rating agency. They are considered to have a greater risk of loss of capital or failing to meet their income payment obligations than higher rated investment grade bonds.
Important Information
This document is marketing communication and is intended for investment professionals* and is not for the use or benefit of other persons.
In Hong Kong, investment professionals refer to Professional investors as defined under the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and in Singapore, institutional investors under Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA").
This is a marketing communication. Please refer to the latest sales prospectus of the sub-fund and to the Key Information Document (KID) (for investors in the EU)/ Key Investor Information Document (KIID) (for investors in the UK), particularly to the sub-fund’s investment objective and characteristics including those related to ESG (if applicable), before making any final investment decisions.
An investment constitutes the acquisition of shares in the sub-fund, not in the sub-fund’s underlying assets. We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice. This communication 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. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. Past performance is not a guide to future performance. Company/Holding/Stock examples are for illustrative purposes only and 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. Awards and Ratings should not be taken as a recommendation. Every effort is made to ensure the accuracy of the information provided but no assurance or warranties are given. This is not an invitation to subscribe for shares in the Jupiter Investment Fund (the Company) or the Jupiter Global Fund (the Company), or any other fund managed by Jupiter Asset Management Limited or Jupiter Asset Management International S.A.. The Companies are UCITS funds incorporated as a Société Anonyme in Luxembourg and organised as a Société d’Investissement à Capital Variable (SICAV) with registered office: Citibank Europe plc, Luxembourg Branch, 31 Z.A. Bourmicht L-8070 Bertrange, Grand Duchy of Luxembourg. The Management Company is Jupiter Asset Management International S.A. (JAMI), registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg, authorised and regulated by the Commission de Surveillance du Secteur Financier. The sub fund may be subject to various other risk factors, please refer to the latest Prospectus for further information. Prospective purchasers of shares of the sub fund of the Company should inform themselves as to the legal requirements, exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile. Subscriptions can only be made on the basis of the latest Prospectus and the Key Information Document (KID/ Key Investor Information Document (KIID), accompanied by the most recent audited annual report and semi-annual report. These documents are available for download from www.jupiteram.com. The Manager may terminate marketing arrangements. Information on sustainability-related aspects is available from www.jupiteram.com
Issued in the UK by Jupiter Asset Management Limited (JAM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ is authorised and regulated by the Financial Conduct Authority. Issued in the EU by Jupiter Asset Management International S.A. (JAMI), registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg which is authorised and regulated by the Commission de Surveillance du Secteur Financier. No part of this document may be reproduced in any manner without the prior permission of JAM/JAMI/JAM HK. In Hong Kong, this document is issued by Jupiter Asset Management (Hong Kong) Limited. No responsibility can be accepted for any consequential loss from this information.