Challenge
How to balance the considerations of people, planet and profit
Every investor wants to receive a return on their investment, but for many people that is not the only consideration. Many investors also want to direct their money towards companies that are at the forefront of the transition to a more sustainable world. Sometimes these goals may seem at odds, but how can investors allocate to companies that are economically strong and resilient without compromising on environmental and social principles?
Solution
A fund with sustainability characteristics – but with economic stability at its heart
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.
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 Goals1; or align operationally with the temperature goals of the Paris Agreement2. The fund also will not invest in a company that is assessed as violating the principles of the United Nations Global Compact3.
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.
Benefits
- The fund seeks global leading companies built to survive and prosper over the long-term.
- Sustainability characteristics are core to the fund’s high conviction stock selection process.
- The fund’s global investible universe includes c.8,000 companies. It is not a thematically restricted fund.
Fund specific risks
For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Scheme Particulars.
- 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 Data – The Fund uses data from third parties (which may include providers for research, reports, screenings 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.
Targeting companies that are financially stable, operationally efficient, and have resilient profitability
Important Information
This marketing communication is intended for investment professionals and is not for the use or benefit of other persons, including retail investors. This communication 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 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. 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 are not a recommendation to buy or sell. 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.