It’s no secret that UK equities have been unloved in recent years. But we believe that UK stocks deserve a place in a well-diversified portfolio, and that the current environment is supportive of unlocking the potential in UK equities. The economy has healthy underlying fundamentals as it moves on a path of disinflation, with steady yet muted growth and healthy consumer and corporate balance sheets. The July election delivered a decisive result for the new government that we anticipate will provide stability and give companies confidence to invest in their futures. Central banks including the Bank of England are seeking to bring down interest rates as inflation eases, and UK equities tend to respond positively to inflation trending lower.
The UK market is cheap versus history and versus other markets including the US, and this provides ample potential for stock pickers to generate returns. It’s not just about valuation, however. UK plc can offer compelling investment opportunities across a range of sectors from consumer goods to technology to financial services, serving domestic as well as international markets, including global leader large cap companies and fast-growing small- and mid-cap firms.
We see the robust pace of corporate activity, including mergers and acquisitions (M&A), as a sign of market dynamism and of the underlying attractiveness of UK plc. Private equity and overseas businesses are buying UK companies at price premiums that highlight both the quality of the target businesses and their lagging valuations. UK companies are buying back their own shares at a brisk pace, indicating balance sheet strength and a desire to boost valuations.
UK equities are a core part of our business at Jupiter. We offer a broad and deep range of actively managed, high-conviction UK equity funds overseen by experienced portfolio managers. At Jupiter we maintain a relentless focus on generating strong, sustainable, long-term returns for clients, and an investment culture that promotes accountability, independent thought and the autonomy of our fund managers. The selection of funds highlighted here offer solutions across the market cap spectrum for investors seeking growth stocks, value stocks, income growth, and uncorrelated long-short return streams. Capital at risk.
A range of UK equity solutions
Looking for income across the market cap spectrum
Jupiter UK Multi Cap Income Fund
Fund seeks stable, cash generative companies capable of paying progressive dividends.
Objective: To provide income and achieve capital appreciation.
Investment Managers: Adrian Gosden and Chris Morrison
Looking for returns from undervalued companies
Jupiter UK Dynamic Equity Fund
The fund uses a differentiated and consistently applied business transformation investment approach.
Objective: To provide a return, net of fees, higher than that provided by the FTSE All Share Index over the long term (at least five years).
Investment Manager: Alex Savvides
Looking for returns across the mid cap range
Jupiter UK Mid Cap Fund
Fund seeks well-underwritten growth with upgrade potential and inflection points.
Objective: To achieve capital growth; the fund will aim to deliver a return, net of fees, greater than that of the FTSE 250 ex Investment Trust over rolling 3-year periods.
Investment Manager: Tim Service
Looking for returns from high-quality growth compounders
Jupiter UK Growth Fund
Seeks high-quality companies exposed to structural growth at low valuations.
Objective: To provide a return, net of fees, higher than that of the FTSE All Share Index over the long term (at least 5 years).
Investment Manager: Chris Smith
Looking for uncorrelated returns in a long/short strategy
Jupiter UK Specialist Equity Fund
Seeks alpha-driven absolute returns using a long and a short book.
Objective: Capital growth by investing in company shares (equities) and similar investments mainly in companies outside the FTSE 100 index. The fund also aims to deliver an absolute return (above zero performance, irrespective of market conditions) over rolling 12-month periods.
Investment Manager: Tim Service
Fund specific risks
- Interest Rate Risk – The Fund can invest in assets whose value is sensitive to changes in interest rates (for example bonds) meaning that the value of these investments may fluctuate significantly with movement in interest rates, e.g. the value of a bond tends to decrease when interest rates 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.
- 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.
- 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.
- Smaller Companies – The Fund invests in smaller companies, which can be less liquid than investments in larger companies and can have fewer resources than larger companies to cope with unexpected adverse events. In less favourable market conditions these companies may therefore under-perform larger companies and the Fund may under-perform funds that invest predominantly in larger companies.
For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Scheme Particulars.
- Investment risk – there is no guarantee that the Fund will achieve its objective. A capital loss of some or all of the amount invested may occur.
- Geographic concentration risk – a fall in the UK market may have a significant impact on the value of the Fund because it primarily invests in this market.
- Company shares (i.e. equities) risk – the value of Company shares (i.e. equities) and similar investments may go down as well as up in response to the performance of individual companies and can be affected by daily stock market movements and general market conditions. Other influential factors include political, economic news, company earnings and significant corporate events.
- Smaller companies risk – smaller companies are subject to greater risk and reward potential. Investments may be volatile or difficult to buy or sell.
- Liquidity risk – some investments including those in unlisted companies may be hard to value or sell at a desired time and price. In extreme circumstances this may affect the Fund’s ability to meet redemption requests upon demand.
- Currency risk – the Fund can be exposed to different currencies. The value of your shares may rise and fall as a result of exchange rate movements.
- Concentration risk (number of investments) – the Fund may at times hold a smaller number of investments, and therefore a fall in the value of a single investment may have a greater impact on the Fund’s value than if it held a larger number of investments.
- Derivative risk – the Fund may use derivatives to reduce costs and/or the overall risk of the Fund (i.e. Efficient Portfolio Management (EPM)). Derivatives involve a level of risk, however, for EPM they should not increase the overall riskiness of the Fund. Derivatives also involve counterparty risk where the institutions acting as counterparty to derivatives may not meet their contractual obligations.
For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Scheme Particulars.
- 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.
- 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.
- 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.
- Currency risk – the Fund can be exposed to different currencies. The value of your shares may rise and fall as a result of exchange rate movements.
- 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.
- 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.
- 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.
Important information
Jupiter UK Multi Cap Income Fund, Jupiter UK Mid Cap Fund, Jupiter UK Growth Fund, Jupiter UK Dynamic Equity Fund
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
Jupiter UK Specialist Equity Fund
This is a marketing communication. Please refer to the latest sales prospectus of the sub-fund and to the Key Information Document (KID) (for investors in the EU)/ Key Investor Information Document (KIID) (for investors in the UK), particularly to the sub-fund’s investment objective and characteristics including those related to ESG (if applicable), before making any final investment decisions. An investment constitutes the acquisition of shares in the sub-fund, not in the sub-fund’s underlying assets.
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. 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. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. 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 is not an invitation to subscribe for shares in the Jupiter Asset Management Series plc (the Company). The Company is an investment company with variable capital established as an umbrella fund with segregated liability between sub-funds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended. Registered in Ireland under registration number 271517. Registered office: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland. The sub fund may be subject to various other risk factors, please refer to the latest Prospectus for further information. Prospective purchasers of shares of the sub fund of the Company should inform themselves as to the legal requirements, exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile. Subscriptions can only be made on the basis of the latest Prospectus and the Key Information Document (KID/ Key Investor Information Document (KIID), accompanied by the most recent audited annual report and semi-annual report. These documents are available for download from www.jupiteram.com. The Manager may terminate marketing arrangements. Information on sustainability-related aspects is available from www.jupiteram.com.