As the COVID-19 crisis continues to test the world, financial markets included, we have retained our focus on companies run for the long-term, specifically long-term structural drivers that underpin the transition to a more sustainable world. We like companies with product suites that offer not only potential for long-term growth but also resilience during market downturns.
Through these unprecedented times, it has become clear that we are at a precipice of change. The status quo has been shattered and there is an opportunity to reconsider a new normal. This applies to capital markets as well and underpins the secular need to deliver a more regenerative approach to investing and how we build our economies back to become structurally more sustainable.
More than ever, the global pandemic has unveiled the urgent opportunity of a sustainable investing framework. Companies that are responsible with the impact of their business, such as with conservative financial risk, treating employees and customers well and managing their environmental impact carefully, are better positioned to deliver sustainable returns.
A long standing structural theme in the strategy is ‘preventative healthcare’ which has been a key contributor to outperformance and has formed the bedrock of the portfolio exposure since inception. Our initial thesis was to identify and invest in companies that enhance patient outcomes and lower individual healthcare costs. Preventative healthcare includes companies which make vaccines, disinfectant, diagnostics and testing as well as hospital and laboratory equipment manufacturers. There is clear market support for companies that are in some way helping towards the elimination of the coronavirus. For example, CSL, which is one of the fund’s largest holdings produces viral vaccines and the share price has been particularly resilient during the market turmoil year to date. Ecolab, is the global supplier of hospital disinfectant, Omron manufactures thermometers and Danaher, Mettler Toledo and Agilent are diagnostic, testing and equipment companies. Other companies which fall under the Preventative Healthcare theme include hygiene product suppliers: Kao, Hengan, Essity and Unilever.
A crisis often reveals the companies that are run for the long term. During this chapter, we continue to believe that durable businesses with strong capital foundations are favourably positioned to survive challenging market conditions and to recover well when crises have passed. Our focus remains ever more resolute, investing in high-quality companies that are leading the transition to a more sustainable world will enhance client outcomes.
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. The Key Investor Information Document, Supplementary Information Document and Scheme Particulars are available from Jupiter on request.
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. Past performance is no guide to the future. The views expressed are those of the Fund Manager 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.