What is Jupiter Japan Income Fund?
A premium-yielding, core-growth Japanese equity fund.
Strong fundamental focus – seeking businesses with the ability and willingness to increase pay-outs.
Multi-cap strategy – able to capitalise upon opportunities across the market capitalisation spectrum.
The Fund's objective is to achieve long term capital growth. The Fund will invest primarily in the shares of companies which have their registered office or exercise the predominant part of their economic activities in Japan. Up to 20% of the Fund's assets may be invested in the shares of companies based elsewhere in Asia.
Designed to exploit market inefficiency
The Japanese market is highly inefficient…
Japan has c.3,800 listed securities, but analyst coverage is relatively poor and a third of the market is held for strategic, not economic reasons.
… which creates opportunities for active investors.
Through careful stock selection it is possible to build a portfolio with characteristics superior to, or at least comparable with, the wider Japanese equity market on multiple axes, such as yield, valuation, quality, dividend growth, earnings growth and financial stability.
Investment process
Core investment focus
In a marketplace where funds are often firmly polarised into growth or value styles, Jupiter Japan Income Fund is positioned in the middle, as a core Japanese equity product.
The balance of value and growth within the portfolio has stayed consistent over time, with no material style drift.
The bulk of the portfolio is invested in companies which the investment team believes can deliver either a high yield while still growing, or high growth companies that nevertheless offer a yield to shareholders.
Sustainability principles and approach
The Jupiter Japan Income Fund has no explicit ESG mandate, although it does integrate stewardship and sustainability analysis into its investment process.
Fund specific risks
- 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.
- 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.
- Counterparty Default Risk - The risk of losses due to the default of a counterparty on a derivatives contract or a custodian that is safeguarding the Fund's assets.
- 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.
- Charges from capital - 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 Scheme Particulars.
