Jupiter Global Leaders Fund
Please note that on 29 November 2024, the Jupiter Global Sustainable Equities Fund changed its name to the Jupiter Global Leaders Fund. For more information about the context of this change, please see this article: Jupiter Global Sustainable Equities Fund – name change – Jupiter Asset Management
Sustainable investment labels¹ help investors find products that have a specific sustainability goal. This Fund does not have a UK sustainable investment label. This is because while the Fund has sustainability characteristics, it is not managed to meet a sustainability objective.
Investing in companies leading the transition to a more sustainable world
The Jupiter Global Leaders Fund targets global leading companies that in our view are at the forefront of the transition to a more sustainable world through how they behave and the real-world outcome of what they sell. We take a long-term approach to investing and therefore consider quality in the context of how companies balance the considerations of Planet, People and Profit.
Planet – on which we all depend
It is vital that companies manage the environmental footprint of their operations. We want companies to focus on using their resources efficiently and contribute to the global economy’s transition towards decarbonisation.
People – with whom we all co-exist
It is our view that companies that invest in their people, providing a supportive and inclusive working environment and contributing positively to society, will be best placed to thrive.
Profit – that we all require for our savings
Producing resilient profits is crucial for any company’s long-term future in this changing world. We value companies that manage their business for long-term sustainability, not short-term gains.
The fund targets companies that are financially stable, operationally efficient, and have resilient profitability. Strong economic foundations are core to our assessment of leadership, and we believe set the firmest foundation for leadership in environmental and social outcomes as well.
When considering Environmental, Social and Governance (ESG) factors, the investment strategy takes into account what a company sells and how it behaves, focusing on materiality in the context of future cash flows and relevance to economic resilience. For example, if a company keeps the interests of its key stakeholders at the core of its decision-making, in our view it is more likely to have a productive workforce, strong client retention, and more resilient profitability. If a company proactively manages its impact on the planet by using green energy, using less water, creating less waste, and embedding biodiversity considerations, that is an indication of a long-term approach to its future resilience.
We look to understand how companies address key societal imperatives such as gender and social equality, decarbonisation, improving preventative healthcare and broadening access to financial services through analysing how they behave and what they sell.
Aligned to good environmental and social outcomes
How the Fund’s investments perform against their sustainability characteristics is an important part of our conviction in our holdings. As such, the investment team is focussed on how the Fund’s investments align with good environmental and social outcomes, including those real-world outcomes captured by the UN Sustainable Development Goals and the Paris Agreement.
Companies the fund invests in will either:
- provide products or services that are, or operate in a way that is, aligned with the delivery of one or more of the United Nations Sustainable Development Goals (“UN SDGs”) (a blueprint provided by the United Nations, consisting of 17 SDGs to achieve a better and more sustainable future for all. The 17 SDGs address the global challenges faced, including those relating to poverty, inequality, climate change, environmental degradation, peace and justice²); or
- align operationally with the temperature goals of the Paris Agreement (a pledge by world leaders in 2015 to limit the global average temperature increase to well below 2 degrees above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels³).
The fund also will not invest in a company that is assessed as violating the principles of the United Nations Global Compact⁴.
An unconstrained and bespoke approach
This is a high conviction, bottom up, unconstrained global equity fund with economic resilience and stakeholder assessment at the heart of the investment process. We do not solely rely on third parties or ESG ratings. Instead, the investment team’s over four decades of combined experience of investing with stakeholder outcomes as a key focus is used to identify investment opportunities. This detailed work builds the investment case for each company.
Transparency
We integrate ESG considerations throughout the investment process in order to better understand sustainability as an output. By approaching our work in this way, we seek to provide attractive financial returns for our clients by investing in leading companies that in our view align to positive environmental and social outcomes. We offer investors transparency about the extent to which companies in which their savings are invested may be contributing to a more sustainable world through detailed reporting. We will also report progress against the KPIs related to the sustainability characteristics both in our Consumer Facing Disclosures and in our annual sustainability reporting.
What the Jupiter Global Leaders Fund is, and what it isn’t
- The fund seeks resilient companies built to survive and prosper over the long-term. It is not short termist.
- Sustainability characteristics are core to the fund’s high conviction stock selection process. It is not a ‘tick box’ ESG fund
- The fund’s global investible universe includes c.8,000 companies. It is not a thematically restricted fund.
- Active management offers clients diversification and low commonality. The fund is not passive.
Fund specific risks
- 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.
- Currency (FX) Risk – The Fund can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
- 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 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 Equity Data – The Fund uses data from third parties (which may include providers for research, reports, screenings, ratings and/or analysis such as index providers and consultants) and that information or data may be incomplete, inaccurate or inconsistent.
- 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.
For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Scheme Particulars.
Important Information
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. Past performance is no guide to the future. The views expressed are those of the Fund Manager(s) 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 any information provided but no assurances or warranties are given. Holding examples 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. Issued by Jupiter Unit Trust Managers Limited (JUTM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ which 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 JUTM.
Sources
¹https://www.fca.org.uk/consumers/sustainable-investment-labels-greenwashing
²THE 17 GOALS | Sustainable Development
⁵Investment Week Women in investment awards 2017. LAPF Investment Awards 2019, Impact Manager of the Year. ESG Investing Awards 2020 – Best Equity Fund (Highly Commended). 2022 Investment Week Sustainable Investment Awards – Best Sustainable Global Equity Fund (Highly Commended). Awards and ratings should not be taken as a recommendation.
Meet the team
Jupiter Global Leaders Team
A significant proportion of the team have dedicated their entire investment careers to the structural drivers which underpin this investment opportunity of investing with stakeholder outcomes as a key focus. They are recognised as thought leaders and active industry-wide collaborators, with members contributing to the early design of the CFA ESG investing certificate. More recently, the team co-authored the Listed Instruments chapter for the CFA Climate and Investing Certificate (CFA CCI).
Led by Abbie Llewellyn-Waters, investment manager, the strategy is well resourced, with dedicated analysts, Freddie Woolfe, Kristian Herrington and Carli Prewett. The team can also draw upon Jupiter’s central expertise, including Jupiter’s in-house Data Science team and Stewardship teams.
Since joining Jupiter Asset Management in 2006, Abbie has specialised in investing in global leading companies which are at the forefront of the transition to a more sustainable world, and with her team has built and designed a rigorous investment framework.
The team have won multiple awards and received industry recognition for their investment performance, approach to ESG integration, sustainability characteristics reporting and contribution to addressing the structural hurdles that women in investment face.⁵
