Talking factsheet: Jupiter UK Dynamic Equity Fund
Alex Savvides gives an overview of the strategy, how the investment process works, and how the team seek to generate alpha.
Why consider Jupiter UK Dynamic Equity?
The fund uses a differentiated and consistently applied business transformation investment approach as it seeks to provide investors with long-term returns in excess of the UK index from a combination of:
Why UK equities?
We believe the UK stock market offers investors a compelling valuation opportunity, as it remains priced at a discount versus its own history and other regional markets. We see a supportive market backdrop of relative political stability, modest yet steady economic growth, lower inflation vs the immediate post-Covid period, an improving consumer outlook and less restrictive policy from central banks. This may help to bring about a change in sentiment that has weighed on the UK stock market in recent years, providing support to valuations moving forward.
Creating value through change
The team follow a strong and repeatable investment process focused on change. They look for businesses in need of transformation that have been mis-managed and are underperforming financially. They support strategies focused on improvements that can create better businesses. Typically, these changes are led by a new executive team.
Jupiter UK Dynamic Equity investment philosophy
Fund characteristics
Meet the team
In October 2024, the fund changed name from UK Special Situations to UK Dynamic Equity, under a new investment team of Alex Savvides and Stephanie Geary, investment managers, and Siddharth Sukumar, investment analyst. They are supported by the Jupiter resources in areas such as stewardship, data science and risk and performance. The strategy and investment process was initially introduced by Alex Savvides in 2008 and has been tested in a range of market conditions.
Fund risks
- 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.
- Market Concentration Risk (Geographical Region/Country) – Investing in a particular country or geographic region can cause the value of this investment to rise or fall more relative to investments whose focus is spread more globally in nature.
- 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.
- Liquidity Risk (general) – During difficult market conditions there may not be enough investors to buy and sell certain investments. This may have an impact on the value of the Fund.
- Counterparty 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.
For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Scheme Particulars.
Literature
Click the button below to download all fund literature of Jupiter UK Dynamic Equity Fund
Important Information
This document is for informational purposes only and is not investment advice. 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. Past performance is no guide to the future. 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 authors 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. For definitions please see the glossary at jupiteram.com. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. Company examples are for illustrative purposes only and not a recommendation to buy or sell. Investors should read the Key Investor Information Document (KIID) before investing in the Fund. Issued in the UK by Jupiter Asset Management Limited, 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 document may be reproduced in any manner without the prior permission of JAM.