A range of flexible fixed income solutions
Jupiter Dynamic Bond
Falling inflation has led investors to increasingly expect central bank rate cuts in 2024, leading to strong performance across fixed income. While uncertainty prevails about what the future holds, there are various scenarios in which government bond yields could trade lower from the current elevated levels. The economy might stay resilient but inflation might come back to target, allowing central banks to bring back rates to neutral. Alternatively, the economy might weaken and push rates below neutral level. In both scenarios funds like the Jupiter Dynamic Bond might benefit. The investment management team for the fund currently supports a view of much slower growth in the coming months but believes the allocation should perform well also in an environment of stable growth and lower inflation.
Interest Rate Risk – The Fund can invest in assets whose value is sensitive to changes in interest rates (for example bonds) meaning that the value of these investments may fluctuate significantly with movement in interest rates. e.g. the value of a bond tends to decrease when interest rates rise.
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.
Derivative risk – the Fund may use derivatives to reduce costs and/or the overall risk of the Fund (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 Fund.
Share Class Hedging Risk – The share class hedging process can cause the value of investments to fall due to market movements, rebalancing considerations and, in extreme circumstances, default by the counterparty providing the hedging contract.
Contingent convertible bonds – The Fund 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 fund 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.
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.
Counterparty Default 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 Fund’s assets.
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.
Charges from capital – Some or all of the Fund’s charges are taken from capital. Should there not be sufficient capital growth in the Fund this may cause capital erosion.
For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Prospectus.
This fund can invest more than 35% of its value in securities issued or guaranteed by an EEA state.
Jupiter Strategic Absolute Return Bond Fund
Macro uncertainty has undoubtedly increased in recent years and that uncertainty around the future path of inflation and interest rates looks set to continue. Traditional fixed income exposures have struggled to diversify investment portfolios both in terms of returns and volatility – this strategy provides an alternative. The strategy aims to deliver more consistent and positive returns within fixed income with a controlled level of volatility, seeking to deliver strong risk adjusted returns. The strategy uses a purely macro driven process, which feels more important now than ever. The portfolio is constructed following a thorough assessment of interest rates, global growth, inflation, and global politics, looking to position the fund to deliver returns whether interest rates are rising or falling. The focus is on government bonds, although the strategy is ‘unconstrained’ and can go anywhere, either long or short. This additional flexibility could be highly beneficial as it can allow the strategy to not just potentially weather the uncertainty but thrive.
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. Currency risk – the Fund is denominated in USD but holds assets denominated in other currencies. The value of your shares may rise and fall as a result of exchange rate movements.
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 – these investments may be subject to regulatory intervention and/or specific trigger events relating to regulatory capital levels falling to a prespecified 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.
Sustainability Article 8 – Investments are selected or excluded on both financial and non-financial criteria. The Fund’s performance may differ from the broader market or other Funds that do not utilize ESG criteria when selecting investments. For a more detailed explanation of risks, please refer to the “Risk Factors” section of the prospectus.
This fund can invest more than 35% of its value in securities issued or guaranteed by an EEA state.
Jupiter Strategic Absolute Return Bond Fund
Macro uncertainty has undoubtedly increased in recent years and that uncertainty around the future path of inflation and interest rates looks set to continue. Traditional fixed income exposures have struggled to diversify investment portfolios both in terms of returns and volatility – this strategy provides an alternative. The strategy aims to deliver more consistent and positive returns within fixed income with a controlled level of volatility, seeking to deliver strong risk adjusted returns. The strategy uses a purely macro driven process, which feels more important now than ever. The portfolio is constructed following a thorough assessment of interest rates, global growth, inflation, and global politics, looking to position the fund to deliver returns whether interest rates are rising or falling. The focus is on government bonds, although the strategy is ‘unconstrained’ and can go anywhere, either long or short. This additional flexibility could be highly beneficial as it can allow the strategy to not just potentially weather the uncertainty but thrive.
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. Currency risk – the Fund is denominated in USD but holds assets denominated in other currencies. The value of your shares may rise and fall as a result of exchange rate movements.
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 – these investments may be subject to regulatory intervention and/or specific trigger events relating to regulatory capital levels falling to a prespecified 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.
Sustainability Article 8 – Investments are selected or excluded on both financial and non-financial criteria. The Fund’s performance may differ from the broader market or other Funds that do not utilize ESG criteria when selecting investments. For a more detailed explanation of risks, please refer to the “Risk Factors” section of the prospectus.
This fund can invest more than 35% of its value in securities issued or guaranteed by an EEA state.
Jupiter Emerging Market Debt Fund
In an environment where economic growth remains resilient, inflation subsides and interest rates fall, one asset class that could perform well is Emerging Market Debt. These conditions, coupled with stable commodity prices and a weaker US dollar would attract investors seeking higher yields compared to debt in developed markets. The asset class offers diversification through the cycle as it encompasses a diverse range of countries in varying stages of economic development.
Currency risk – the Fund is denominated in USD but holds assets denominated in other currencies. The value of your shares may rise and fall as a result of exchange rate movements.
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.
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 (less liquid securities) – some investments may be 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.
Capital erosion risk – the Fund takes its charges from the capital of the Fund. Investors should be aware that there is potential for capital erosion if insufficient capital growth is achieved by the Fund to cover the charges.
For a more detailed explanation of risks, please refer to the “Risk Factors” section of the prospectus.
Jupiter Financials Contingent Capital Fund
If inflation subsides enough and economies are able to ward off the effect of high interest rates on growth without slipping into recession, the Jupiter Financials Contingent Capital Fund may benefit. The strategy invests in CoCos, which are a type of security issued by banks and insurance companies. They were first issued after the financial crisis to ensure that financial institutions remained well-capitalised. In the last 10 years, banks have seen a significant improvement in their fundamentals, with reduced leverage, better asset quality and much stronger capital positions.
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.
Strategy risk – investments in contingent convertible bonds may result in material losses to the Fund based on certain trigger events. The existence of these trigger events creates a different type of risk from traditional bonds and may result in a partial or total loss of value or alternatively they may be converted into shares of the issuing company which may also have suffered a loss in value.
Currency risk – the Fund is denominated in USD and may use hedging 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 currency risk. The value of your shares may rise and fall as a result of exchange rate movements.
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.
Interest rate risk – investments in bonds are affected by interest rates and inflation trends which may affect the value of the Fund.
Liquidity Risk (less liquid securities) – some investments may be 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.
Capital erosion risk – the Fund takes its charges from the capital of the Fund. Investors should be aware that there is potential for capital erosion if insufficient capital growth is achieved by the Fund to cover the charges.
For a more detailed explanation of risks, please refer to the “Risk Factors” section of the prospectus.
Jupiter Global High Yield Bond
High yield bonds typically provide a higher income than bonds that are considered less likely to default on their principal payment. Reduced demand in the economy or a recession could expose such bonds to higher risks as the revenue of companies issuing such bonds may suffer. Conversely an environment of stable or higher growth might be supportive for high yield companies and bonds issued by such companies. In any case, investments in such bonds call for thorough research, which means sifting through the profile of thousands of companies operating in a range of geographies and sectors. Selection of assets that are most likely to maximise profits and minimize losses is crucial. The Jupiter Global High Yield Bond aims to achieve income and capital gain over a medium to long term by investing in such bonds.
Interest Rate Risk – The Fund can invest in assets whose value is sensitive to changes in interest rates (for example bonds) meaning that the value of these investments may fluctuate significantly with movement in interest rates .e.g. the value of a bond tends to decrease when interest rates rise.
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.
Derivative risk – the Fund may use derivatives to reduce costs and/or the overall risk of the Fund (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 Fund.
Share Class Hedging Risk – The share class hedging process can cause the value of investments to fall due to market movements, rebalancing considerations and, in extreme circumstances, default by the counterparty providing the hedging contract.
Contingent convertible bonds – The Fund 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 fund 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.
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.
Counterparty Default 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 Fund’s assets.
Charges from capital – Some or all of the Fund’s charges are taken from capital. Should there not be sufficient capital growth in the Fund this may cause capital erosion. For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Prospectus.
This fund can invest more than 35% of its value in securities issued or guaranteed by an EEA state.
Jupiter Dynamic Bond ESG
Many investors are looking for income in a turbulent world without losing sight of their responsibility to society at large. Issues such as climate change and boosting equality and diversity in society are critical focus areas for governments and corporates alike. Addressing these issues through a credible investment strategy in our view calls for specialised skills and deep knowledge of the markets. The Jupiter Dynamic Bond ESG fund aims to achieve a high income with the prospect of capital growth over the long term by investing in a portfolio of investments in global debt securities in respect of which consideration is given to certain environmental, social and governance (“ESG”) characteristics. The Investment Manager’s investment process includes consideration of the following two environmental and social characteristics, support of the transition to a low carbon economy and upholding of responsibilities to people and planet.
Interest Rate Risk – The Fund can invest in assets whose value is sensitive to changes in interest rates (for example bonds) meaning that the value of these investments may fluctuate significantly with movement in interest rates e.g. the value of a bond tends to decrease when interest rates rise.
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.
Derivative risk – the Fund may use 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.
Share Class Hedging Risk – The share class hedging process can cause the value of investments to fall due to market movements, rebalancing considerations and, in extreme circumstances, default by the counterparty providing the hedging contract.
Contingent convertible bonds – The Fund 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 fund 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.
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.
Counterparty Default 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 Fund’s assets.
ESG and Sustainability – Investments are selected or excluded on both financial and non-financial criteria. The Fund’s performance may differ from the broader market or other Funds that do not utilise ESG/Sustainability criteria when selecting investments.
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.
Charges from capital – Some or all of the Fund’s charges are taken from capital. Should there not be sufficient capital growth in the Fund this may cause capital erosion. For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Prospectus.
This fund can invest more than 35% of its value in securities issued or guaranteed by an EEA state.
This is a marketing communication. Please refer to the latest sales prospectus/scheme particulars of the funds and to the Key Information Documents (KIDS), particularly to the funds’ 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 a fund, not in the 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 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. The views expressed are those of the author 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 the information provided but no assurance or warranties are given.
Investment risk – while the Funds 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 Funds 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.
Credit risk – the issuer of a bond or a similar investment within the Funds may not pay income or repay capital to the Funds when due. Bonds which are rated below investment grade are considered to have a higher risk exposure with respect to meeting their payment obligations.
Liquidity risk – some investments may become hard to value or sell at a desired time and price. In extreme circumstances this may affect the Funds’ ability to meet redemption requests upon demand.
The Funds 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 Funds’ prospectus/Scheme Particulars.
CoCos and other investments with loss absorbing features – the Funds 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.
Interest rate risk – investments in bonds are affected by interest rates and inflation trends which may affect the value of the Funds.
The Jupiter Dynamic Bond ESG Fund is a sub fund of the Jupiter Global Fund SICAV, a UCITS fund 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 Jupiter Strategic Absolute Return Bond Fund is a sub fund of Jupiter Asset Management Series PLC 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.
The Key Investor Information Document (KIID), Supplementary Information Document and Scheme Particulars for the Jupiter Corporate Bond Fund, Jupiter Strategic Bond Fund, Jupiter Monthly Income Bond Fund and the KIID and Prospectus for the Jupiter Dynamic Bond ESG Fund and the Jupiter Strategic Absolute Return Bond Fund are available for download from www.jupiteram.com. A summary of investor rights in English can be found in the Document Library at www.jupiteram.com. The Management Company may terminate marketing arrangements.
No part of this document may be reproduced in any manner without the prior permission of JUTM and/or JAMI/JAMEL.