Big potential in small and mid-sized companies
Jupiter’s UK small and mid-cap equities investment team, led by Tim Service, seek to generate strong, sustainable returns by investing in the shares of companies with growth and/or upgrade potential and/or possible inflection points (an event or significant change). They use a disciplined, pragmatic and repeatable stock-picking process to build high conviction, concentrated share portfolios.¹
The team believe that macroeconomic factors are currently supportive² for markets, and that UK equities are undervalued versus their historic average and versus equity markets in other parts of the world. Over the long term, UK small and mid-cap shares have outperformed their larger peers and delivered higher rates of earnings growth. The companies are generally less well researched than larger companies, which can result in share price inefficiencies and potential opportunities to generate alpha (i.e. returns that exceed the market’s returns).
The fund range includes Jupiter UK Mid Cap Fund, Jupiter UK Smaller Companies Fund, Jupiter UK Smaller Companies Equity Fund and Jupiter UK Specialist Equity Fund.
¹High conviction, concentrated portfolios use a smaller number of stocks in an effort to maximise performance compared with larger, more diversified share portfolios
²Supportive macroeconomic factors include easing inflation, the potential for central banks to cut interest rates and modest but steady global economic growth
Jupiter UK Mid Cap Fund
The Jupiter UK Mid Cap Fund uses a disciplined stock picking process to build a high conviction, concentrated portfolio of mostly mid cap companies. The fund is looking for companies that can deliver well-underwritten profits growth, durable upgrade potential and/or possible inflection points, including special situations. It is macro-aware but not macro-led (ie they monitor macroeconomic conditions but don’t base investment decisions solely on this).
Objective: To achieve capital growth. In seeking to achieve its investment objective the fund will aim to deliver a return, net of fees, greater than that of the FTSE 250 ex Investment Trust over rolling 3-year periods.
Investment Manager: Tim Service and James Gilbert.
Jupiter UK Smaller Companies Fund
The Jupiter UK Smaller Companies Fund uses a disciplined stock picking process to build a high conviction, concentrated portfolio of mostly smaller cap companies. The fund is looking for companies that can deliver well-underwritten profits growth, durable upgrade potential and/or possible inflection points, including special situations. It is macro-aware but not macro-led.
Objective: To provide a return, net of fees, higher than that provided by the Deutsche Numis Smaller Companies plus AIM (Excluding Investment Companies) Index over the long term (at least five years).
Investment Manager: Matt Cable.
Jupiter UK Specialist Equity Fund
The Jupiter UK Specialist Equity Fund aims to deliver steady, positive returns throughout the market cycle by taking long and short positions mainly in UK equities with a focus on small and medium sized companies. A long position is one that expects the share price to rise, while a short position is a bet that the share price will fall. The fund is managed broadly neutral to UK equity markets, and the aim is to generate returns from investment ‘alpha’ (capturing above-market returns) rather than market ‘beta’ (volatility). This provides the potential to deliver positive returns in both rising and falling markets, and with less volatility than traditional long-only equity funds. The fund follows the same stock-picking philosophy as the team’s long-only strategies.
Objective: To achieve capital growth by investing in company shares (equities) and similar investments mainly in companies outside the FTSE 100 index. The fund also aims to deliver an absolute return (above zero performance, irrespective of market conditions) over rolling 12-month periods.
Investment Manager: Tim Service.
Meet the team
The UK small and mid-cap equity team is recognised as an industry leader. The team believes its size, scale, experience and industry reach provides a relative advantage.
Important information
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 article 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 individuals mentioned 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, but no assurance or warranties are given. Holding examples are for illustrative purposes only and are not a recommendation to buy or sell. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. For definitions, please see the glossary at jupiteram.com.
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 rate changes may cause the value of overseas investments to rise or fall.
This communication is issued by Jupiter Investment Management Limited, The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ, United Kingdom. Jupiter Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 171847).
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.
Jupiter uses all reasonable skill and care in compiling the information in this communication which is accurate only on the date of this communication. You should not rely upon the information in this communication in making investment decisions. Nothing in this communication constitutes advice or personal recommendation. An investor should read the Key Investor Information Document(s) (“KIID”) before investing in the Fund. The KIID and the prospectus can be obtained from www.jupiteram.com in English and other required languages.