When safe havens are hard to find
Traditional portfolios allocated only to equities and bonds may not always provide the diversification needed. A permanent allocation to alternatives with low correlation can help.
A notable feature of markets in 2022 is that not only equities but also bond markets have fallen. By the end of August, the MSCI World Index had lost 17.8%, and the Bloomberg Global Aggregate index, an index of investment grade government and corporate bonds, had shed an alarming 15.6%. Investors who had sought diversification by the traditional approach of combining equities with only bonds in their portfolio (in the belief that if equities fell, bonds would remain solid) found themselves lacking a safe haven.
In 2022 bonds have failed to provide diversification
Source: Morningstar, Jupiter, as at 31.08.2022.
The root cause of the cross-asset class turmoil so far this year was the volte face by the US Federal Reserve (Fed). Having been slow to raise interest rates when inflation was a threat rumbling in the distance, the Fed then changed its mind and hiked rates suddenly as the storm broke. The suddenness of the shift sent both bonds and equities into a tailspin.
Yet some alternative assets have remained positive, and investors who included these in their portfolios enjoyed true diversification and better outcomes. The Jupiter Merian Global Equity Absolute Return (GEAR) and the Jupiter Strategic Absolute Return Bond (SARB) strategies both performed very differently from equity and bond markets. Both are market neutral strategies, holding a long book and a short book in balance. Both have low volatility targets.
GEAR and SARB provided diversification
Past performance is no indication of current or future performance.
Cumulative return, YTD, of Jupiter Merian Global Equity Absolute Return (GEAR) (I USD Acc) and Jupiter Strategic Absolute Return Bond (SARB) (I USD Acc).
Source: Morningstar, Jupiter, as at 31.08.2022.
Don’t put all your eggs …
Market downturns are of course always difficult to predict. The best time to establish a truly diversified portfolio is not after a sharp market fall, but before it. Although we cannot predict when the next downturn will occur, it is reasonable to expect further turmoil over the long term. Inflation, for example, is notoriously difficult for central banks to control, and aggressive attempts to do so can cause recession.
Notwithstanding the economic backdrop, we should be forewarned that financial markets are volatile, and often defeat expectations. There is a growing body of academic research1 emphasising that financial markets are not in a state of equilibrium but are highly dynamic, complex systems, prone to volatile behaviour. A complex system is one where a small change in current circumstances can lead to large deviations in the future: the well-known butterfly effect. Research has shown that equity market returns are statistically “fat tailed” (leptokurtic), suffering extreme losses more often than would be the case were they normally distributed (Gaussian) systems. In this case, the academic research chimes with common sense: market participants know intuitively that prices can easily spin out of control.
Uncorrelated returns
Correlation, a statistical relationship between two securities, measures how much they have moved together. Highly correlated securities (near to 100%), have moved up and down together. Securities with low correlation (near to 0%), have moved independently: one sometimes up when the other is down. Two securities that are negatively correlated (near to -100%) have moved in opposite directions, one up when the other is down. Adding uncorrelated and negatively correlated assets to a portfolio increases the benefit of diversification, tending to reduce overall risk.
Both the Jupiter Merian Global Equity Absolute Return (GEAR) and the Jupiter Strategic Absolute Return Bond (SARB) strategies have historically offered a good source of diversification. Both have had low correlation to both equities and bonds markets. In the 13 years since GEAR’s inception, the strategy has had a low correlation with the MSCI World index. In the eight years since SARB’s inception, it has mostly had a low correlation to the Bloomberg Global Aggregate index.
Past performance is no indication of current or future performance. GEAR is the Jupiter Merian Global Equity Absolute Return Fund (I USD Acc).
Three month rolling correlation of the Fund against the MSCI World NR index since inception of the Fund, which was 30.06.2009.
Source: Jupiter, as at 31.08.2022.
Past performance is no indication of current or future performance. SARB is the Jupiter Strategic Absolute Return Bond Fund (I USD Acc).
Three month rolling correlation of the Fund against the Bloomberg Global Aggregate index, since the inception of the Fund, which was 30.05.2014.
Source: Jupiter, as at 31.08.2022.
The graphs above show rolling correlation: taking three-month periods of daily returns from the strategy and the index, measuring their correlation, rolling the data forward one day, measuring the correlation again, and so on, to produce a time series. Correlation can also be calculated as an average over the whole period, as in the two matrices below, where some other indices are also shown. The upper matrix is from the inception date of GEAR, and the lower from that of SARB.
Date range: 30.06.2009-31.08.2022. GEAR is Jupiter Merian Global Equity Absolute Return Fund (I USD Acc). SARB is Jupiter Strategic Absolute Return Fund (I USD Acc). Correlation with monthly frequency. Source: Morningstar, Jupiter, as at 31.08.2022.
Date range: 30.05.2014-31.08.2022. SARB is Jupiter Strategic Absolute Return Fund (I USD Acc). GEAR is Jupiter Merian Global Equity Absolute Return Fund (I USD Acc). Correlation with monthly frequency. Source: Morningstar, Jupiter, as at 31.08.2022.
A more resilient portfolio
What is the effect of adding assets with low correlation to a portfolio of equities and bonds? The chart below shows the cumulative returns over three years to 31 August 2022 of three portfolios. The poorest performing was the ‘traditional’ portfolio, shown in dark blue, a 60%-40% allocation to the MSCI World index and the Bloomberg Global Aggregate index. The other two portfolios show the effect of adding the GEAR and SARB strategies, in one case entirely substituting them for bonds. Both portfolios that included GEAR and SARB outperformed the traditional 60-40 portfolio.
Past performance is no indication of current or future performance. Three-year period to 31.08.2022. Source: Jupiter, Morningstar as at 31.08.2022.
Different investment processes
GEAR and SARB have quite different investment processes. The GEAR team’s systematic model analyses the fundamentals of thousands of stocks every day, looking at several aspects of each stock such as its value, quality and growth. The GEAR team does not undertake macroeconomic analysis. SARB, by contrast, is a macro fund. The SARB team digs deeply into major economic trends, such as GDP growth, inflation and central bank policy, forming judgments about prospects for currencies, bonds, and interest rates. The difference between the two processes is partly due to the personal background of each team, but it is worth noting that large amounts of data are easier to obtain in the equities than the bond market. A systematic (computer-driven) approach is easier to implement in equities (GEAR) than in bonds (SARB).
Although they have different investment processes, both strategies have achieved positive returns, including in down markets. The low correlation of these returns with equity and bond markets suggests their long-term addition to portfolios could have a beneficial diversifying effect.
Jupiter Merian Global Equity Absolute Return Fund (I USD Acc)
01 Sep ’12 to 31 Aug ’13 | 01 Sep ’13 to 31 Aug ’14 | 01 Sep ’14 to 31 Aug ’15 | 01 Sep ’15 to 31 Aug ’16 | 01 Sep ’16 to 31 Aug ’17 | |
|---|---|---|---|---|---|
Jupiter Merian Global Equity Absolute Return Fund I USD Acc | 11.4 | 6.3 | 4.9 | 2.9 | 10.5 |
US Federal Reserve Funds Base Rate | 0.1 | 0.1 | 0.1 | 0.3 | 0.8 |
01 Sep ’17 to 31 Aug ’18 | 01 Sep ’18 to 31 Aug ’19 | 01 Sep ’19 to 31 Aug ’20 | 01 Sep ’20 to 31 Aug ’21 | 01 Sep ’21 to 31 Aug ’22 | |
|---|---|---|---|---|---|
Jupiter Merian Global Equity Absolute Return Fund I USD Acc | 2.3 | -9.0 | -7.7 | 15.6 | 7.8 |
US Federal Reserve Funds Base Rate | 1.5 | 2.3 | 0.9 | 0.1 | 0.5 |
3 Months | 1 Year | 3 Years | 5 Years | 10 Years | |
|---|---|---|---|---|---|
Jupiter Merian Global Equity Absolute Return Fund I USD Acc | -0.1 | 7.8 | 15.1 | 7.1 | 51.3 |
US Federal Reserve Funds Base Rate | 0.4 | 0.5 | 1.6 | 5.5 | 6.9 |
Past performance is no indication of current or future performance, and does not take into account commissions and costs incurred on the issue/redemption of shares. Returns may increase or decrease as a result of currency fluctuations.
Source: Morningstar, NAV to NAV, gross income reinvested, net of fees, in USD, to 31.08.22.
Portfolio features
Jupiter Merian Global Equity Absolute Return Fund
Fund objective: Capital growth, while closely controlling risk. The fund also aims to deliver an absolute return (above zero) performance, irrespective of market conditions) over rolling 12 month period.
Structure: UCITS
Fund risks
- Investment risk – there is no guarantee that the Fund will achieve its objective. A capital loss of some or all of the amount invested may occur. Furthermore, the Fund may exceed its volatility limit. A capital loss of some or all of the amount invested may occur.
- Company shares (i.e. equities) risk – the value of Company shares (i.e. equities) and similar investments may go down as well as up in response to the performance of individual companies and can be affected by daily stock market movements and general market conditions. Other influential factors include political, economic news, company earnings and significant corporate events.
- Derivative risk – the Fund uses derivatives to generate returns and/or to reduce costs and the overall risk of the Fund. 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. Derivatives also involve counterparty risk where the institutions acting as counterparty to derivatives may not meet their contractual obligations.
- Currency risk – the Fund can be exposed to different currencies and may use techniques to try to reduce the effects of changes in the exchange rate between the currency of the underlying investments and the base currency of the Fund. These techniques may not eliminate all the currency risk. The value of your shares may rise and fall as a result of exchange rate movements.
- Stock connect risk – the Fund may invest in China A-Shares through the China-Hong Kong Stock Connect (“Stock Connect”). Stock Connect is governed by regulations which are untested and subject to change. Trading limitations and restrictions on foreign ownership may constrain the Fund’s ability to pursue its investment strategy.
- The fund may be more than 35% invested in Government and public securities. These can be issued by other countries and Governments. Your attention is drawn to the stated investment policy which is set out in the Fund’s prospectus.
- The fund may be subject to various other risk factors, please refer to the latest sales prospectus for further information. The KIID and Prospectus are available from Jupiter on request.
Source: Jupiter.
Synthetic Risk Reward Indicator (SRRI) is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund.
The lowest category does not mean ‘no risk’. Please see the KIID for further information. Synthetic Risk Reward Indicator (SRRI) as per the most up to date KIID (10.02.22).
Performance
Jupiter Strategic Absolute Return Bond
YTD | 3 Months | 1 Year | 3 Years | 5 Years | Since Inception** | Since FM Start*** | |
|---|---|---|---|---|---|---|---|
Jupiter Strategic Absolute Return Bond I USD Acc | 3.7 | 2.5 | 3.4 | 16.4 | 23.6 | 22.0 | 24.9 |
Benchmark* | 0.5 | 0.4 | 0.5 | 1.6 | 5.5 | 3.5 | 3.5 |
01 Sep ’14 to 31 Aug ’15 | 01 Sep ’15 to 31 Aug ’16 | 01 Sep ’16to 31 Aug ’17 | 01 Sep ’17 to 31 Aug ’18 | 01 Sep ’18 to 31 Aug ’19 | 01 Sep ’19 to 31 Aug ’20 | 01 Sep ’20 to 31 Aug ’21 | 01 Sep ’20 to 31 Aug ’22 | Since Inception* | Since FM Start*** | |
|---|---|---|---|---|---|---|---|---|---|---|
Jupiter Strategic Absolute Return Bond I USD Acc | -5.5 | 5.0 | 0.7 | 1.1 | 5.1 | 9.9 | 2.4 | 3.4 | 22.0 | 24.9 |
Benchmark* | -0.7 | 7.9 | -1.7 | 1.5 | 2.3 | 1.0 | 0.1 | 0.5 | 3.5 | 3.5 |
Past performance is no indication of current or future performance, and does not take into account commissions and costs incurred on the issue/redemption of shares. Returns may increase or decrease as a result of currency fluctuations.
Source: Morningstar, NAV to NAV, gross income reinvested, net of fees, in USD, to 31.08.22.
This shareclass has an extended track record based on the F1 USD Acc shareclass. Performance since 18.04.18 is for the I USD Acc shareclass. Performance since 30.05.14 and until 17.04.18 is for the F USD Acc shareclass. The benchmark since 25.05.17, the fund’s benchmark changed from the JP Morgan Global Government Bond Index USD hedged, to cash (USD Fed Funds Effective Overnight Rate). On 01.05.15 the fund’s benchmark changed from the Intercontinental Exchange Bank of America US Dollar one month deposit bid rate, to the JP Morgan Global Government Bond Index USD hedged. **Since inception: 30.05.14. ***Since FM start: 01.08.16.
Portfolio features
Jupiter Strategic Absolute Return Bond Fund overview
Fund objective The objective of the Jupiter Strategic Absolute Return Bond Fund is to seek to deliver positive total returns on a rolling twelve month basis with stable levels of volatility uncorrelated to bond and equity market conditions. Investors should be aware that their capital is at risk and that there is no guarantee that the positive total returns will be achieved over the rolling twelve months or any time period.
Benchmark Federal Funds Effective Overnight Rate
Structure ICVC
Fund risks
- Investment risk – while the Fund aims to deliver above zero performance irrespective of market conditions, there can be no guarantee this aim will be achieved. Furthermore, the actual volatility of the Fund may be above or below the expected range and may also exceed its maximum expected volatility. A capital loss of some or all of the amount invested may occur.
- Emerging markets risk – less developed countries may face more political, economic or structural challenges than developed countries.
- Credit risk – the issuer of a bond or a similar investment within the Fund may not pay income or repay capital to the Fund when due. Bonds which are rated below investment grade are considered to have a higher risk exposure with respect to meeting their payment obligations.
- CoCos and other investments with loss absorbing features – the Fund may hold investments with loss-absorbing features, including up to 20% in contingent convertible bonds (CoCos). These investments may be subject to regulatory intervention and/or specific trigger events relating to regulatory capital levels falling to a pre-specified point. This is a different risk to traditional bonds and may result in their conversion to company shares, or a partial or total loss of value.
- Bond Connect Risk – The rules of the Bond Connect scheme may not always permit the Fund to sell its assets and may cause the Fund to suffer losses on an investment.
- Interest rate risk – investments in bonds are affected by interest rates and inflation trends which may affect the value of the Fund.
- Liquidity risk – some investments may become hard to value or sell at a desired time and price. In extreme circumstances this may affect the Fund’s ability to meet redemption requests upon demand.
- Derivative risk – the Fund uses derivatives to generate returns and/or to reduce costs and the overall risk of the Fund. 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. Derivatives also involve counterparty risk where the institutions acting as counterparty to derivatives may not meet their contractual obligations.
- Currency risk – the Fund can be exposed to different currencies. The value of your shares may rise and fall as a result of exchange rate movements.
- The Fund may be more than 35% invested in Government and public securities. These can be issued by other countries and Governments. Your attention is drawn to the stated investment policy which is set out in the Fund’s prospectus
- The fund may be subject to other various risk factors, please see the Prospectus for more information. The KIID and Prospectus are available from Jupiter on request
Synthetic Risk Reward Indicator (SRRI) is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The lowest category does not mean ‘no risk’. Please see the KIID for further information. Synthetic Risk Reward Indicator (SRRI) as per the most up to date KIID (10.02.22).
Latest Insights
The value of active minds: independent thinking
A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class. As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals.
Important Information
This is a marketing communication. Please refer to the latest sales prospectus of the sub-fund and to the Key Investor Information Document (KIID), particularly to the sub-fund’s investment objective and characteristics, before making any final investment decisions.
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. 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. The views expressed are those of the Fund Manager(s) / author(s) at the time of preparation, 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 the information provided but no assurance or warranties are given.
This is not an invitation to subscribe for shares in the Jupiter Asset Management Series plc (the Company) or any other fund managed by Jupiter Asset Management (Europe) Limited or Jupiter Investment Management Limited. The Company is an investment company with variable capital established as an umbrella fund with segregated liability between sub-funds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended. Registered in Ireland under registration number 271517. Registered office: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland.
This information is only directed at persons residing in jurisdictions where the Company and its shares are authorised for distribution or where no such authorisation is required.
The sub fund(s) may be subject to various other risk factors, please refer to the latest sales prospectus for further information.
Prospective purchasers of shares of the sub fund(s) 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 sales prospectus and the 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 or can be obtained free of charge upon request from any of:
EU/EEA countries in which the Company is registered for distribution: Unless otherwise specified in this document, Citibank Europe plc (the Company’s Administrator) is responsible for processing subscription, repurchase and redemption orders and making other payments to Shareholders. Citibank Europe plc, 1 North Wall Quay, Dublin 1, Ireland, email: [email protected].
The following information and documents are available from www.eifs.lu/jupiteram: Information on how orders (subscription, repurchase and redemption) can be made and how repurchase and redemption proceeds are paid; Information and access to procedures and arrangements related to investors’ rights and complaints handling; Information in relation to the tasks performed by the Company in a durable medium; The latest sales prospectus, the articles of association, the annual and semi-annual reports and the Key Investor Information documents. The Manager may terminate marketing arrangements. Information on sustainability-related aspects are available from jupiteram.com.
Austria: Erste Bank der oesterreichischen Sparkassen AG (Austrian Facilities Agent), Am Belvedere 1, 1100 Vienna, Austria.
France: BNP Paribas Securities Services, Les Grands Moulins de Pantin, 9 rue du Debarcadère 93500 Pantin, France.
Germany: GerFIS – German Fund Information Service UG (Haftungsbeschränkt), Zum Eichhagen 4, 21382 Brietlingen, Germany.
Hong Kong: Jupiter Asset Management (Hong Kong) Limited, Suite 1706, Alexandra House, 18, Chater Road, Central, Hong Kong.
Italy: Allfunds Bank S.A.U., Milan Branch, Via Bocchetto, 6, 20123 Milano, Italia; Societe Generale Securities Services S.p.A, Via Benigno Crespi 19A – MAC2, Milan. The sub-fund has been registered with the Commissione Nazionale per le Società e la Borsa (CONSOB) for the offer in Italy to retail investors.
Luxembourg: BNP Paribas Securities Services, Luxembourg Branch, 60, avenue J-F Kennedy L-1855 Luxembourg Grand-Duchy of Luxembourg.
Spain: Allfunds Bank, C/ La Estafeta 6, Edificio 3, 28109 Alcobendas, Madrid, Spain. For the purposes of distribution in Spain, the Company is registered with the Spanish Securities Markets Commission – Comisión Nacional del Mercado de Valores (“CNMV”) under registration number 301, where complete information, including a copy of the marketing memorandum, is available from the Company authorised distributors. Subscriptions should be made through a locally authorised distributor. The net asset value is available on www.jupiteram.com.
Sweden: Skandinaviska Enskilda Banken AB (“SEB”), Kungsträdgårdsgatan 8, SE-106 40, Stockholm, Sweden.
Switzerland: Copies of the Memorandum and Articles of Association, the Prospectus, KIIDs and the annual and semi-annual reports of the Company may be obtained free of charge from the Swiss representative First Independent Fund Services Ltd., Klausstrasse 33, CH-8008 Zurich. BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich is the Swiss paying agent.
Taiwan: Capital Gateway Securities Investment Consulting Enterprise, 9F/9F-1, No. 171, Songde Road, Xinyi District, Taipei City, Taiwan, R.O.C.
United Kingdom: Jupiter Investment Management Limited (UK Facilities Agent), The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ, United Kingdom. The Fund is recognised by the FCA.
Issued by Jupiter Asset Management (Europe) Limited (JAMEL, the Manager), The Wilde-Suite G01, The Wilde, 53 Merrion Square South, Dublin 2, D02 PR63, Ireland which is registered in Ireland (company number: 536049) and authorised and regulated by the Central Bank of Ireland (number: C181816).
For qualified investors in Switzerland only
Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.
This communication provides information relating to funds known as Jupiter Merian Global Equity Absolute Return Fund and Jupiter Strategic Absolute Return Bond Fund (the “Funds”), which are sub-funds of Jupiter Asset Management Series plc. Jupiter Asset Management Series plc is an investment company with variable capital established as an umbrella fund with segregated liability between sub-funds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended. Registered in Ireland under registration number 271517. Registered office: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland.
This communication is issued by Jupiter Asset Management (Switzerland) AG (“Jupiter”), Löwenstrasse 16, 8001 Zurich, Switzerland, a distributor of Jupiter Asset Management Series plc.
This communication has been prepared for general information only. It does not purport to be all-inclusive or contain all of the information which a proposed investor may require in order to make a decision as to whether to invest in the Funds. Nothing in this document constitutes a recommendation suitable or appropriate to a recipient’s individual circumstances or otherwise constitutes a personal recommendation. No investment decisions should be made without first reviewing the prospectus and the key investor information document of the Funds which can be obtained from www.jupiteram.com in English and other required languages.
The Funds have not been approved for offering to non-qualified investors in or from Switzerland by the Swiss Financial Market Supervisory Authority FINMA (“FINMA”). First Independent Fund Services Ltd., Klausstrasse 33, CH-8008 Zurich is the Swiss representative and BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich is the Swiss paying agent in relation to the shares of the Funds (“Shares”) distributed, offered or marketed in or from Switzerland. Accordingly, the Shares and the relevant fund documents and any offering material relating to the Funds and/or the Shares may only be distributed, offered or marketed in or from Switzerland to qualified investors as defined in art. 10 para. 3 of the Federal Act on Collective Investment Schemes of 23 June 2006 and its implementing ordinances, as amended from time to time, and the most current practice of the FINMA and the competent courts. In respect of the Shares distributed in or from Switzerland, the place of jurisdiction is at the registered office of the Swiss representative.
The net asset value of the Funds may have high volatility due to the nature of the asset class invested. Your attention is drawn to the stated investment policy which is set out in the Funds’ prospectuses.
For professional investors in Hong Kong only
Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.
This communication provides information relating to Jupiter Merian Global Equity Absolute Return Fund and to Jupiter Strategic Absolute Return Bond Fund (the “Funds”), which are sub-funds of Jupiter Asset Management Series plc. Jupiter Asset Management Series plc is an investment company with variable capital established as an umbrella fund with segregated liability between sub-funds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended. Registered in Ireland under registration number 271517. Registered office: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland.
This communication has been prepared for general information only. It does not purport to be all-inclusive or contain all of the information which a proposed investor may require in order to make a decision as to whether to invest in the Funds. Nothing in this communication constitutes a recommendation suitable or appropriate to a recipient’s individual circumstances or otherwise constitutes a personal recommendation. No investment decisions should be made without first reviewing the offering document (including the risk factors) and the key fact statement of the Funds (if applicable) which can be obtained from www.Jupiteram.com. This communication has not been reviewed by the SFC.
This communication is issued by Jupiter Asset Management (Asia Pacific) Limited which is licensed to carry out Type 1 regulated activity in Hong Kong.
The Funds are not authorised by the Securities and Futures Commission (“SFC”) in Hong Kong. and is not available to retail investors in Hong Kong. This document is distributed 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 document 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 the Funds 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 shares in the Funds may not be offered or sold in Hong Kong by means of this document or any other document 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.
The net asset value of the Funds may have high volatility due to the nature of the asset class invested. Your attention is drawn to the stated investment policy which is set out in the Funds’ prospectuses.
For Institutional investors in Singapore only
Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.
This communication provides information relating to funds known as Jupiter Merian Global Equity Absolute Return Fund and Jupiter Strategic Absolute Return Bond Fund (the “Funds”), which are sub-funds of Jupiter Asset Management Series plc. Jupiter Asset Management Series plc is an investment company with variable capital established as an umbrella fund with segregated liability between sub-funds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended. Registered in Ireland under registration number 271517. Registered office: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland.
This communication is issued by Jupiter Asset Management Series plc.
The Funds are only notified as a restricted scheme by MAS and is not allowed to be offered to the Singapore retail public. This marketing document shall be construed as part of an information memorandum for the purposes of section 305(5) of the Securities and Futures Act, Cap. 289 of Singapore (the “SFA”). Accordingly, this marketing document must not be relied upon or construed on its own without reference to the information memorandum. This marketing document is not a prospectus as defined in the SFA and accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply.
This document has not been registered as a prospectus by MAS, and the offer of the shares is made pursuant to the exemptions under Sections 304 and 305 of the SFA. Accordingly, the shares may not be offered or sold, nor may the shares be the subject of an invitation for subscription or purchase, nor may this marketing document or any other document or material in connection with the offer or sale, or invitation for subscription or purchase of the shares be circulated or distributed, whether directly or indirectly, to any person in Singapore other than under exemptions provided in the SFA for offers made (a) to an institutional investor (as defined in Section 4A of the SFA) pursuant to Section 304 of the SFA, (b) to a relevant person (as defined in Section 305(5) of the SFA), or any person pursuant to an offer referred to in Section 305(2) of the SFA, and in accordance with the conditions specified in Section 305 of the SFA or (c) otherwise pursuant to, and in accordance with, the conditions of any other applicable provision of the SFA.
The net asset value of the Funds may have high volatility due to the nature of the asset class invested. Your attention is drawn to the stated investment policy which is set out in the Funds prospectuses.
For professional investors in US Offshore only
Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.
The Jupiter Merian Global Equity Absolute Return Fund and the Jupiter Strategic Absolute Return Bond Fund (the “Funds”) have not been registered under the United States Investment Company Act of 1940, as amended, nor the United States Securities Act of 1933, as amended. None of the shares may be offered or sold, directly or indirectly in the United States or to any US Person, unless the securities are registered under the Act, or an exemption from the registration requirements of the Act is available. A US Person is defined as (a) any individual who is a citizen or resident of the United States for federal income tax purposes; (b) a corporation, partnership or other entity created or organized under the laws of or existing in the United States; (c) an estate or trust the income of which is subject to United States federal income tax regardless of whether such income is effectively connected with a United States trade or business.
This presentation 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 no guide to the future. Company 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.
The views expressed are at a point of time and are subject to change. This is particularly true during periods of rapidly changing market circumstances. Every effort is made to ensure the accuracy of the information provided but no assurance or warranties are given.
Issued 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.
No part of this presentation may be reproduced in any manner without the prior permission of JAM.
For professional investors in LATAM only
Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.
Legal Notice for Residents in the Republic of Argentina: This document includes a private invitation to invest in securities. It is addressed only to you on an individual, exclusive, and confidential basis, and its unauthorised copying, disclosure, or transfer by any means whatsoever is absolutely and strictly forbidden. Jupiter Asset Management (Europe) Limited, will not provide copies of this document, or provide any kind of advice or clarification, or accept any offer or commitment to purchase the securities herein referred to from persons other than the intended recipient. The offer herein contained is not a public offering, and as such it is not and will not be registered with, or authorised by, the applicable enforcement authority. The information contained herein has been compiled by Jupiter Asset Management (Europe) Limited, who assumes the sole responsibility for the accuracy of the data herein disclosed.
Legal Notice for Residents in Brazil: The Funds may not be offered or sold to the public in Brazil. Accordingly, the Funds have not been and will not be registered with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários, the “CVM”), nor have been submitted to the foregoing agency for approval. Documents relating to the Funds, as well as the information contained therein, may not be supplied to the public in Brazil, as the offering is not a public offering of Funds in Brazil, nor used in connection with any offer for subscription or sale of Funds to the public in Brazil.
Aviso Legal para Residentes en Chile: ESTA OFERTA PRIVADA SE INICIA EL DÍA SEGUN LO ESTABLECIDO EN EL TITULO Y SE ACOGE A LAS DISPOSICIONES DE LA NORMA DE CARÁCTER GENERAL Nº 336 DE LA SUPERINTENDECIA DE VALORES Y SEGUROS, HOY COMISIÓN PARA EL MERCADO FINANCIERO. ESTA OFERTA VERSA SOBRE VALORES NO INSCRITOS EN EL REGISTRO DE VALORES O EN EL REGISTRO DE VALORES EXTRANJEROS QUE LLEVA LA COMISIÓN PARA EL MERCADO FINANCIERO, POR LO QUE TALES VALORES NO ESTÁN SUJETOS A LA FISCALIZACIÓN DE ÉSTA; POR TRATAR DE VALORES NO INSCRITOS NO EXISTE LA OBLIGACIÓN POR PARTE DEL EMISOR DE ENTREGAR EN CHILE INFORMACIÓN PÚBLICA RESPECTO DE LOS VALORES SOBRE LOS QUE VERSA ESTA OFERTA; ESTOS VALORES NO PODRÁN SER OBJETO DE OFERTA PÚBLICA MIENTRAS NO SEAN INSCRITOS EN EL REGISTRO DE VALORES CORRESPONDIENTE.
Legal Notice for Residents of Mexico: The securities have not been and will not be registered with the National Registry of Securities, maintained by the Mexican National Banking and Securities Commission and, as a result, may not be offered or sold publicly in Mexico. The fund and any underwriter or purchaser may offer and sell the securities in Mexico on a private placement basis to Institutional and Accredited Investors pursuant to Article 8 of the Mexican Securities Market Law.
Legal Notice for Residents of Paraguay: The Shares have not been registered with the Commision Nacional de Valores of Paraguay (CNV), neither with the Stock Exchange of Asuncion (BVPASA) and are being placed by means of a private offer. CNV nor BVPASA has not reviewed the information provided to the investor. This document is only for the exclusive use of specific investor in Paraguay and is not for public distribution.
Legal Notice for Residents of Peru: The funds have not been registered before the Superintendenciadel Mercado de Valores(SMV) and are being placed by means of a private offer. SMV has not reviewed the information provided to the investor. This document is only for the exclusive use of institutional investors in Peru and is not for public distribution.
Legal Notice for Residents of Uruguay: The sale of the securities qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627. The securities must not be offered or sold to the public in Uruguay, except in circumstances which do not constitute a public offering or distribution under Uruguayan laws and regulations. The securities are not and will not be registered with the Financial Services Superintendency of the Central Bank of Uruguay. The securities correspond to investment funds that are not investment funds regulated by Uruguayan law 16,774 dated September 27, 1996, as amended.