Many investors remain wedded to a traditional 60%-equity 40%-bond allocation. But this traditional form of portfolio construction exposes them to significant risks, we believe.

The motivation behind the 60-40 portfolio is to seek diversification: the hope is that when equities fall, bonds, as a separate asset class, may be uncorrelated and compensate. Seeking diversification is always sound, but allocation to only two asset classes (long-only equities and long-only bonds) does not deliver enough diversification, we suggest. Expecting a 60-40 allocation to protect investors from downturns is like trying to sit on a stool with only two legs: unsurprisingly, it falls over fairly often.

The simultaneously poor performance of equities and bonds in 2022 – a year in which they were positively correlated – has raised doubts about 60-40 in many investors’ minds. Yet what some may not fully appreciate is how often in history portfolios based on this traditional allocation have had negative returns.

Looking back almost a century, from 1928 to 2022, a portfolio allocated 60% to the S&P 500 index, and 40% to the return of the 10-year US Treasury bond, had a negative overall return in 21 separate calendar years. That’s between a quarter and a fifth of the total number of calendar years. If a stool fell over every four or five times you sat on it, you might be inclined to conclude it was poorly designed.
Traditional asset allocation is failing investors
2022 was the third worst year for traditional 60-40 portfolios (S&P 500/US 10-Year Treasury) (Total Returns, 1928-2022)
Traditional asset allocation is failing investors

2022 was the third worst year for the 60-40 portfolio in that lengthy period. The worst three years were 1931, 1937 and 2022. The worst two years were encompassed by the Great Depression (which began with the Wall Street Crash of 1929 and lasted until 1939). In 1931 the S&P 500 tumbled and the 10-year Treasury fell slightly, while in 1937 the 10-year Treasury was modestly positive, but was utterly unable to make up for that year’s large fall in equities. 1974 (when there was an oil crisis) was a similar story: although the 10-year Treasury was up, it nowhere near compensated for the large loss in equities. 2008, the year of the Great Financial Crisis, was rather different: there was a flight to government bonds and the 10-year US Treasury gained 20.1%, offsetting the losses of the S&P 500 (-36.6%), although there was still a substantial loss for a 60-40 portfolio, its fifth worst performance on our list.

It is perhaps surprising that 2022 was the third worst year on our list, because the economic situation in 2022 was nowhere near as desperate as that of the Great Depression of 1930s, or the mortgage loan and banking crisis of 2008. There were two main reasons why the 60-40 portfolio did so badly in 2022. Firstly, equity prices became very frothy during the second half of 2020 and the whole of 2021. Secondly, in spring 2022, the US Federal Reserve suddenly reversed course in order to fight soaring inflation by hiking interest rates, and this shocked the bond market, as it came after a long period of very low rates. Bonds failed in providing any diversification. The equity market fall in 2022 was accompanied by the worst calendar year return (-17.8%) in the 10 year US Treasury in the whole of the period from 1928-2022. (Most of worst falls in the US 10-year have been in recent decades: 2009, 2013. 1999, 1994; prior to the 1970s it was less volatile.)

Between 1928 and 2022, there were six calendar years in which the 60-40 portfolio suffered double digit losses, and another 15 years in which it posted single-digit losses. Were these drawdowns only temporary? No. About half (10) of the 21 down calendar years for the 60-40 portfolio were not isolated years. All clusters of down years lasted only two calendar years, however, except the four-year cluster of 1929-1932, the aftermath of the Wall Street Crash.

Below is the same annual data as in the 1928-2022 table above but sorted from worst (on the left) to best calendar year return. Although the 60-40 portfolio has a positive (black) return in most years, and is on average positive (+8.9%, the grey line), it nevertheless exhibited the potential for severe drawdowns (the down years shown in red to the left).

Sting in the tail
Over almost 100 years, a 60-40 portfolio has often failed to protect investors
Sting in the tail Over almost 100 years, a 60-40 portfolio has often failed to protect investors
Increasing stability
The problem with the 60-40 portfolio, we suggest, is that it does not include enough sources of diversification. Investors could instead consider including in their portfolios a wider range of asset classes than just long-only equities and long-only bonds. The Jupiter Merian Global Equity Absolute Return Fund (GEAR) is a market neutral equity fund. Since its inception 30 June 2009, its annualised return (I USD Acc share class) has been 4.9% and its annualised volatility has been only 5.2% (as at 31 December 2022). That volatility is around three times lower than equity markets, which suggests that GEAR is materially different from the long-only equities asset class. Correlation data confirms this: since its inception GEAR has had a very low correlation both with global equities and with global bonds. As at 31.12.2022, the correlation since inception of GEAR (USD I) with the MSCI World NR USD index, and index of global equities, is -0.10. Interestingly, GEAR has also had low correlation with bonds: its correlation with the JPM GBI Global Total Return Hedged USD index (from 1.07.2009 to 31.12.2022) is -0.09. (Correlation is a measure that ranges from +1 to -1, so figures near zero indicate uncorrelated assets.)

GEAR has therefore offered a good additional source of diversification to equities and bonds. Adding GEAR to an equity-bond portfolio is rather like giving that portfolio a third dimension.

Of course, adding GEAR to a 60-40 portfolio might only mitigate a very severe equities market fall, rather than completely reversing it. But, based on the 13 year track record of the fund, it has helped, as the chart below illustrates.
Equity Bond Portfolios vs Equity Bond +10% GEAR
The graph above shows the return (vertical axis) and risk (volatility) (horizontal axis) for various portfolios (the dots). The portfolios in blue are composed from various proportions of equities (represented by the MSCI World index), and bonds (represented by the Bloomberg Global Aggregate IG Debt (Unhedged) index). The leftmost blue dot is allocated 90% to bonds and 10% to equities; the rightmost blue dot is 20% to bonds and 80% to equities. The 60% equities 40% bonds portfolio is labelled (the white circle). As would be expected, both the returns and risks are higher for portfolios with greater equities allocation. The date range is 30 June 2009 to 31 December 2022. During this period as a whole, adding bonds to an equity portfolio did reduce the risk, although it also reduced the return.

The green line shows the effect of including just a 10% allocation to GEAR, with the remaining 90% split between equities and bonds in various proportions. The leftmost green dot is 80% bonds, 10% equities, 10% GEAR. The rightmost green dot is 10% bonds, 80% equities, 10% GEAR. The green line is further to the left (less risk) and higher (more return) than the blue line, showing the beneficial effect.

Adding 25% GEAR to a portfolio with 50% in equities and 25% in bonds is shown as a large orange circle (here we have not shown the entire line).
How does GEAR achieve this?

The chart below helps us to understand why GEAR has been able to improve the returns and risk of the 60-40 portfolio. The grey and red lines show monthly returns of a portfolio invested 60% in the MSCI World index and 40% in the Bloomberg Global Aggregate index, from 30 June 2009 to 31 December 2022, and these returns are sorted from worst, on the left, to best, on the right. The return of GEAR for the same months are shown in dark blue. As can be seen, in many months when the 60-40 portfolio was down, GEAR was up. Indeed, the GEAR returns seem to bear no obvious relation to the 60 40 returns at all. Their correlation is low. Adding GEAR to the portfolio therefore increases diversification.

Mitigating the sting in the tail
GEAR compared to down and up months of the 60 40 portfolio
Source: Bloomberg, Jupiter as at 30.12.2022. Annualised returns and (monthly data) from 30.06.2009 (inception of GEAR) to 31.12.2022. 60-40 portfolio is 60% equities (represented by MSCI World index) and 40% bonds (represented by the Bloomberg Global Aggregate index). Sorted from worst (left) to best of 60-40 portfolio. GEAR returns are I USD Acc.

In the majority of the months when the 60-40 portfolio was down (the lines in red on the left part of the chart), GEAR was up. The 60-40 portfolio was down in 64 months, and GEAR was up 45 of those months (70.3%). In 20 of those down months for the 60-40 portfolio, the positive return from GEAR fully compensated, or more, for the loss in the 60-40 portfolio, while in the other 44 months it partly compensated. 

Market neutrality
If GEAR does not derive its returns from the equity market’s direction, where does it obtain them? How does it deliver returns with a low correlation to global equities, when it is constructed … from global equities? The reason is in part that that GEAR, as a market neutral fund, holds a long book and a short book in balance.

Think of a seesaw moving up and down (to the delight or fear of those seated at each end). It is also possible to sit just at the middle, the point at which the see saw balances. Sitting there, you do not travel up and down with the see saw’s arms: you have found a still point. Market neutral funds similarly find a still point, by holding their long and short books in balance. Market neutral equity funds are properly understood, we suggest, as a different kind of asset class from long-only equities. Market neutral fund hold a long book and a short book designed not to have their returns affected by equity market moves. If they have positive returns, it is from some other source, such as factors playing out orthogonally to markets. GEAR is designed not to be influenced by equity market moves, but to extract alpha from five proprietary stock selection criteria, which incorporate intuitive investment factors such as value, quality, growth, and momentum. Why five criteria? Because the GEAR process seeks diversification … not only from equity markets as a whole, but also between each of the ways in which we select stocks – but the full explanation of how we do that is a story for another time.
Performance

Jupiter Merian Global Equity Absolute Return Fund (I USD ACC)

Performance Jupiter Merian Global Equity Absolute Return Fund (I USD ACC)

Fund risks

  • 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. Furthermore, the Fund may exceed its volatility limit. A capital loss of some or all of the amount invested may occur.
  • 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.
  • Derivative risk – the Fund uses derivatives to generate returns and/or to reduce costs and the overall risk of the Fund. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment. Derivatives also involve counterparty risk where the institutions acting as counterparty to derivatives may not meet their contractual obligations.
  • Currency risk – the Fund can be exposed to different currencies and may use techniques to try to reduce the effects of changes in the exchange rate between the currency of the underlying investments and the base currency of the Fund. These techniques may not eliminate all the currency risk. The value of your shares may rise and fall as a result of exchange rate movements.
  • Stock connect risk – the Fund may invest in China A-Shares through the China-Hong Kong Stock Connect (“Stock Connect”). Stock Connect is governed by regulations which are untested and subject to change. Trading limitations and restrictions on foreign ownership may constrain the Fund’s ability to pursue its investment strategy.
  • The fund may be more than 35% invested in Government and public securities. These can be issued by other countries and Governments. Your attention is drawn to the stated investment policy which is set out in the Fund’s prospectus. 
  • The fund may be subject to various other risk factors, please refer to the latest sales prospectus for further information. The KIID and Prospectus are available from Jupiter on request. 

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A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class. As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals.

Important Information

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), or Key Investor Information Document (KIID) (for investors in the UK), particularly to the sub-fund’s investment objective and characteristics, before making any final investment decisions.

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. 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. The views expressed are those of the Fund Manager(s) / author(s) at the time of preparation, 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 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) or any other fund managed by Jupiter Asset Management (Europe) Limited or Jupiter Investment Management Limited. 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.

This information is only directed at persons residing in jurisdictions where the Company and its shares are authorised for distribution or where no such authorisation is required.

The sub fund(s) may be subject to various other risk factors, please refer to the latest sales prospectus for further information. Prospective purchasers of shares of the sub fund(s) 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 sales prospectus and the 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 or can be obtained free of charge upon request from any of:

EU/EEA countries in which the Company is registered for distribution: Unless otherwise specified in this document, Citibank Europe plc (the Company’s Administrator) is responsible for processing subscription, repurchase and redemption orders and making other payments to Shareholders. Citibank Europe plc, 1 North Wall Quay, Dublin 1, Ireland, email: [email protected].

The following information and documents are available from www.eifs.lu/jupiteram: Information on how orders (subscription, repurchase and redemption) can be made and how repurchase and redemption proceeds are paid; Information and access to procedures and arrangements related to investors’ rights and complaints handling; Information in relation to the tasks performed by the Company in a durable medium; The latest sales prospectus, the articles of association, the annual and semi-annual reports and the Key Information documents. The Manager may terminate marketing arrangements. Information on sustainability-related aspects are available from jupiteram.com.

Austria: Erste Bank der oesterreichischen Sparkassen AG (Austrian Facilities Agent), Am Belvedere 1, 1100 Vienna, Austria.

France: BNP Paribas Securities Services, Les Grands Moulins de Pantin, 9 rue du Debarcadère 93500 Pantin, France.

Germany: GerFIS – German Fund Information Service UG (Haftungsbeschränkt), Zum Eichhagen 4, 21382 Brietlingen, Germany.

Hong Kong: Jupiter Asset Management (Hong Kong) Limited, Suite 1706, Alexandra House, 18, Chater Road, Central, Hong Kong.

Italy: Allfunds Bank S.A.U., Milan Branch, Via Bocchetto, 6, 20123 Milano, Italia; Societe Generale Securities Services S.p.A, Via Benigno Crespi 19A – MAC2, Milan. The sub-fund has been registered with the Commissione Nazionale per le Società e la Borsa (CONSOB) for the offer in Italy to retail investors.

Luxembourg: BNP Paribas Securities Services, Luxembourg Branch, 60, avenue J-F Kennedy L-1855 Luxembourg Grand-Duchy of Luxembourg.

Spain: Allfunds Bank, C/ La Estafeta 6, Edificio 3, 28109 Alcobendas, Madrid, Spain. For the purposes of distribution in Spain, the Company is registered with the Spanish Securities Markets Commission – Comisión Nacional del Mercado de Valores (“CNMV”) under registration number 301, where complete information, including a copy of the marketing memorandum, is available from the Company authorised distributors. Subscriptions should be made through a locally authorised distributor. The net asset value is available on www.jupiteram.com.

Sweden: Skandinaviska Enskilda Banken AB (“SEB”), Kungsträdgårdsgatan 8, SE-106 40, Stockholm, Sweden.

Switzerland: Copies of the Memorandum and Articles of Association, the Prospectus, KIIDs and the annual and semi-annual reports of the Company may be obtained free of charge from the Swiss representative First Independent Fund Services Ltd., Klausstrasse 33, CH-8008 Zurich. BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich is the Swiss paying agent.

Taiwan: Capital Gateway Securities Investment Consulting Enterprise, 9F/9F-1, No. 171, Songde Road, Xinyi District, Taipei City, Taiwan, R.O.C.

United Kingdom: Jupiter Investment Management Limited (UK Facilities Agent), The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ, United Kingdom. The Fund is recognised by the FCA.

Issued by Jupiter Asset Management (Europe) Limited (JAMEL, the Manager), The Wilde-Suite G01, The Wilde, 53 Merrion Square South, Dublin 2, D02 PR63, Ireland which is registered in Ireland (company number: 536049) and authorised and regulated by the Central Bank of Ireland (number: C181816).

No part of this document may be reproduced in any manner without the prior permission of JAMEL.

For professional investors in Hong Kong only

Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.


This communication provides information relating to Jupiter Merian Global Equity Absolute Return Fund (the “Fund”), which is a sub-fund of Jupiter Asset Management Series plc. Jupiter Asset Management Series plc 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.


This communication has been prepared for general information only. It does not purport to be all-inclusive or contain all of the information which a proposed investor may require in order to make a decision as to whether to invest in the Fund. Nothing in this communication constitutes a recommendation suitable or appropriate to a recipient’s individual circumstances or otherwise constitutes a personal recommendation. No investment decisions should be made without first reviewing the offering document (including the risk factors) and the key fact statement of the Fund (if applicable) which can be obtained from www.Jupiteram.com. This communication has not been reviewed by the SFC.


This communication is issued by Jupiter Asset Management (Hong Kong) Limited.


The Fund is not authorised by the Securities and Futures Commission (“SFC”) in Hong Kong. and is not available to retail investors in Hong Kong. This document is distributed to professional investors only and has not been reviewed by any regulatory body in Hong Kong. It is for reference only and for those persons or entities in any jurisdiction or country where the information in this document and use thereof is not contrary to local law or regulation. It is intended solely for the use of the person to whom it has been addressed and delivered and shall not be reproduced in any form or transmitted to any other third party. In particular: (i) no offer or invitation to subscribe for shares in the Fund may be made to the public in Hong Kong; (ii) this document has not been approved by the SFC or any other regulatory authority in Hong Kong and accordingly shares in the Fund may not be offered or sold in Hong Kong by means of this document or any other document other than in circumstances which do not constitute an offer to the public for the purposes of the Hong Kong Securities and Futures Ordinance (“SFO”), as may be amended from time to time. If you are in doubt, please consider seeking independent professional advice.


The Fund may be more than 35% invested in Government and public securities. These can be issued by other countries and Governments. Your attention is drawn to the stated investment policy which is set out in the Fund’s prospectus.

For Accredited & Institutional investors in Singapore only


Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.


The document is prepared for the use of existing investors of the Fund for information purposes only.

 

Please make sure that this document is included as part of the Information Memorandum of the Fund and distributed in a bundle if it is intended to be used as an offering document to new investors of the Fund.


If you did not obtain this document through your relationship manager, please dispose of it immediately as the information contained in this document may not be up to date, and it may not be legal for you to be provided this document or to subscribe for shares in the Fund. Please contact your relationship manager for further assistance.


This communication provides information relating to a fund known as Jupiter Merian Global Equity Absolute Return Fund (the “Fund”), which is a sub-fund of Jupiter Asset Management Series plc. Jupiter Asset Management Series plc 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.


This document is issued by Jupiter Asset Management Series plc.


The Fund is notified as a restricted scheme by MAS and is not allowed to be offered to the Singapore retail public. This marketing document is not a Prospectus as defined in the Securities and Futures Act, Cap. 289 of Singapore (the “SFA”) and accordingly, statutory liability under the SFA in relation to the content of Prospectuses would not apply. This communication shall be construed as part of an information memorandum for the purposes of section 305(5) of the SFA.

 

Accordingly, this communication must not be relied upon or construed on its own without reference to the information memorandum. Please refer to the first two pages of the information memorandum for the complete selling restrictions applicable for offers of the Fund to investors in Singapore.


No information in this document should be interpreted as investment advice and it is not an invitation to subscribe for shares of the Fund. If you are unsure of the suitability of this investment please contact your Financial Adviser. Prospective purchasers of Shares should inform themselves as to the legal requirements, exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile. Please ensure you read the Prospectus (including the Singapore Addendum) for this Fund before making an investment decision. These documents contain important information including risk factors, details of charges and selling restrictions.


The Fund may be more than 35% invested in Government and public securities. These can be issued by other countries and Governments. Your attention is drawn to the stated investment policy which is set out in the Fund’s prospectus.

For professional investors in US Offshore only

Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.


The Jupiter Merian Global Equity Absolute Return Fund has not been registered under the United States Investment Company Act of 1940, as amended, nor the United States Securities Act of 1933, as amended. None of the shares may be offered or sold, directly or indirectly in the United States or to any US Person, unless the securities are registered under the Act, or an exemption from the registration requirements of the Act is available. A US Person is defined as (a) any individual who is a citizen or resident of the United States for federal income tax purposes; (b) a corporation, partnership or other entity created or organized under the laws of or existing in the United States; (c) an estate or trust the income of which is subject to United States federal income tax regardless of whether such income is effectively connected with a United States trade or business.


This presentation 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 no guide to the future. Company 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.


The views expressed are at a point of time and are subject to change. This is particularly true during periods of rapidly changing market circumstances. Every effort is made to ensure the accuracy of the information provided but no assurance or warranties are given.


Issued by Jupiter Asset Management Limited (JAM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ is authorised and regulated by the Financial Conduct Authority.


No part of this presentation may be reproduced in any manner without the prior permission of JAM.

 

For professional investors in LATAM only

Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cause the value of overseas investments to rise or fall.

 

Legal Notice for Residents in the Republic of Argentina: This document includes a private invitation to invest in securities. It is addressed only to you on an individual, exclusive, and confidential basis, and its unauthorised copying, disclosure, or transfer by any means whatsoever is absolutely and strictly forbidden. Jupiter Asset Management (Europe) Limited, will not provide copies of this document, or provide any kind of advice or clarification, or accept any offer or commitment to purchase the securities herein referred to from persons other than the intended recipient. The offer herein contained is not a public offering, and as such it is not and will not be registered with, or authorised by, the applicable enforcement authority. The information contained herein has been compiled by Jupiter Asset Management (Europe) Limited, who assumes the sole responsibility for the accuracy of the data herein disclosed.

 

Legal Notice for Residents in Brazil: The Funds may not be offered or sold to the public in Brazil. Accordingly, the Funds have not been and will not be registered with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários, the “CVM”), nor have been submitted to the foregoing agency for approval. Documents relating to the Funds, as well as the information contained therein, may not be supplied to the public in Brazil, as the offering is not a public offering of Funds in Brazil, nor used in connection with any offer for subscription or sale of Funds to the public in Brazil.

 

Aviso Legal para Residentes en Chile: ESTA OFERTA PRIVADA SE INICIA EL DÍA SEGUN LO ESTABLECIDO EN EL TITULO Y SE ACOGE A LAS DISPOSICIONES DE LA NORMA DE CARÁCTER GENERAL Nº 336 DE LA SUPERINTENDECIA DE VALORES Y SEGUROS, HOY COMISIÓN PARA EL MERCADO FINANCIERO. ESTA OFERTA VERSA SOBRE VALORES NO INSCRITOS EN EL REGISTRO DE VALORES O EN EL REGISTRO DE VALORES EXTRANJEROS QUE LLEVA LA COMISIÓN PARA EL MERCADO FINANCIERO, POR LO QUE TALES VALORES NO ESTÁN SUJETOS A LA FISCALIZACIÓN DE ÉSTA; POR TRATAR DE VALORES NO INSCRITOS NO EXISTE LA OBLIGACIÓN POR PARTE DEL EMISOR DE ENTREGAR EN CHILE INFORMACIÓN PÚBLICA RESPECTO DE LOS VALORES SOBRE LOS QUE VERSA ESTA OFERTA; ESTOS VALORES NO PODRÁN SER OBJETO DE OFERTA PÚBLICA MIENTRAS NO SEAN INSCRITOS EN EL REGISTRO DE VALORES CORRESPONDIENTE.

 

Legal Notice for Residents of Mexico: The securities have not been and will not be registered with the National Registry of Securities, maintained by the Mexican National Banking and Securities Commission and, as a result, may not be offered or sold publicly in Mexico. The fund and any underwriter or purchaser may offer and sell the securities in Mexico on a private placement basis to Institutional and Accredited Investors pursuant to Article 8 of the Mexican Securities Market Law.

 

Legal Notice for Residents of Paraguay: The Shares have not been registered with the Commision Nacional de Valores of Paraguay (CNV), neither with the Stock Exchange of Asuncion (BVPASA) and are being placed by means of a private offer. CNV nor BVPASA has not reviewed the information provided to the investor. This document is only for the exclusive use of specific investor in Paraguay and is not for public distribution.

 

Legal Notice for Residents of Peru: The funds have not been registered before the Superintendenciadel Mercado de Valores(SMV) and are being placed by means of a private offer. SMV has not reviewed the information provided to the investor. This document is only for the exclusive use of institutional investors in Peru and is not for public distribution.

 

Legal Notice for Residents of Uruguay: The sale of the securities qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627. The securities must not be offered or sold to the public in Uruguay, except in circumstances which do not constitute a public offering or distribution under Uruguayan laws and regulations. The securities are not and will not be registered with the Financial Services Superintendency of the Central Bank of Uruguay. The securities correspond to investment funds that are not investment funds regulated by Uruguayan law 16,774 dated September 27, 1996, as amended.