Premium yield, core growth
Jupiter’s Japan strategy is managed with an intention to deliver two key characteristics for investors in the fund: a premium yield and core growth opportunities. In most developed stock markets that would barely be possible, because fast-growing companies typically don’t pay high dividends to shareholders, and high dividend-payers are typically mature business growing slowly. But Japan is different, as its stock market is relatively inefficient and an attractive hunting ground for stock pickers.
The fund managers, Dan Carter and Mitesh Patel, can therefore construct a portfolio that in aggregate has faster-growing and higher-income companies than average, without making meaningful sacrifices on other important considerations, such as the financial strength of companies or the valuation of their shares.
A diverse portfolio of high-conviction opportunities
The fund offers investors access to a diverse portfolio of investments, spread across a variety of business sectors, including new economy innovators and traditional global market leaders.
In search of growing intrinsic value and pay-outs
The fund managers operate a fundamental, bottom-up investment approach focused on identifying businesses which are growing in their intrinsic value, with pay-outs expected to rise over time – but where this remains underappreciated by the market.
Active approach to engagement
The fund managers seek to identifying companies with a strong governance culture and a recognition of the benefits of providing sustainable value to shareholders. Jupiter is a signatory to the Japanese Stewardship Code.
Resilience in the face of challenges
One of the strategy’s key features is the desire of the fund managers to build a portfolio that can be resilient to market setbacks. They do this by emphasising the operational defensiveness of investee companies. Operational defensiveness, as they define it, is the robustness of a company’s profits in periods of general economic deterioration.
Meet the team
Jupiter Japan equities team
The Jupiter Japan strategy is managed by Dan Carter and Mitesh Patel. Dan joined Jupiter in 2008 and Mitesh joined in 2016. Before they joined Jupiter, Dan was a fund manager at Odey Asset Management on the Japanese equities team, while Mitesh was a Japanese equity fund manager at Barings Asset Management. Dan and Mitesh can also call upon the skills and experience of their colleagues in Jupiter’s wider investment team. This includes specialists in environmental, sustainability and governance research. These capabilities are sources of additional depth of research, alternative insights and challenge.
Key Fund Literature
Notes from the Investment Floor: Staying positive on US high yield
ESG considerations in fixed income investing
Webcast: Systematic equities Q2 review
How to engage and influence companies for a winning strategy
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.
This fund can invest more than 35% of its value in securities issued or guaranteed by an EEA state.
The Key Investor Information Document, Supplementary Information Document and Scheme Particulars are available from the document library. Click here for important information regarding indices.