Challenge
Seeking exposure to a collection of undervalued companies across the market cap spectrum and across sectors, fundamental risk factors and geographies.
Solution
Jupiter Global Value is an all-cap value equities strategy with a high active share, meaning the fund’s holdings and sector weightings differ considerably to those of the benchmark.1 In periods of extreme market concentration, the Jupiter Global Value strategy offers a different kind of equities exposure. The fund manager looks to identify stock-specific opportunities, rather than to forecast macro-economic conditions. The fund manager follows a disciplined investment process that emphasises buying high-quality assets at low prices.
The strategy doesn’t follow the market when asset prices exceed fair value. The portfolio is broadly diversified across geography, currency and sector. Investment risk is spread across business models so that a company-specific shock won’t derail the strategy.
Jupiter Global Value is underweight US stocks versus the benchmark and underweight technology stocks. The fund manager has a preference for family-run businesses and companies with strong balance sheets, and has the ability to invest across the market cap spectrum, with a bias toward investing in mid-cap funds.
Benefits
- Equities exposure that differs from the benchmark
- All cap global value investing, mid cap bias
- Seeks lowly valued businesses capable of high returns
- Disciplined investment process, diversified portfolio
Fund specific risks
- Currency (FX) Risk - The strategy 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.
- Derivative risk - the strategy 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 strategy.
- 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 strategy's assets.
- Charges from capital - Some or all of the strategy's charges are taken from capital. Should there not be sufficient capital growth in the strategy this may cause capital erosion.
For a more detailed explanation of risk factors, please refer to the "Risk Factors" section of the Scheme Particulars or the Fund Prospectus.
Footnotes
1Benchmark index is MSCI AC World
Important Information
This is a marketing communication is intended for investment professionals and is not for the use or benefit of other persons.
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 not a guide to future performance. Company/Holding/Stock examples are for illustrative purposes only and 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. Awards and Ratings should not be taken as a recommendation. Every effort is made to ensure the accuracy of the information provided but no assurance or warranties are given. This communication 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. An investor should read The Key Investor Information Document (KIID) before investing in the Fund. The KIID, Supplementary Information Document and Scheme Particulars for the fund are available for download from www.jupiteram.com
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.
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