Overview
Our longstanding philosophy is that as environmental issues become more ever more pivotal to global development, so too do environmental solutions in their marketplaces, providing a potential source of long-term investment returns.
Ecology: the relationship of living things to their environment and each other
Why environmental solutions investing?
Finding solutions
The organisations we invest in seek to address the profound challenges of climate change and natural capital depletion. The economy is embedded in the biosphere and our biosphere is facing severe degradation.
The scale of change required to reverse climate change is creating significant investment opportunities in environmental solutions companies, which provide critical products and services to help businesses achieve sustainability targets. These solutions are likely to spread widely to as-yet unpenetrated sectors.
- Companies: Around 20% of Forbes Global 2000 companies, generating sales of $14 trillion, have committed to net zero carbon emission
targets. The most sophisticated of these commitments – Scope 3 – covers suppliers, end users and product disposal - Countries: National net zero pledges cover 68% of global GDP, 56% of global population and include US, China, UK, EU and Japan
Source: Black, R., Cullen, K., Fay, B., Hale, T., Lang, J., Mahmood, S., Smith, S.M. (2021). Taking Stock: A global assessment of net zero targets, Energy & Climate Intelligence Unit and Oxford Net Zero. Note: Scope 1 emissions are direct greenhouse (GHG) emissions from sources controlled or owned by a company. Scope 2 are indirect GHG emissions associated with the purchase of electricity, heat or cooling. Scope 3 are all indirect emissions not included in Scope 2 that occur in the value chain, including upstream supply and logistics, and downstream activities such as the use and disposal of sold products.
Why Jupiter Ecology Fund?
Active, specialist, collaborative, long-term horizon.
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Automotive technologies
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Sensor-based sorting machines for recycling
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Biomaterials
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Electrification & automation efficiencies
Examples are for illustrative purposes only and are not a recommendation to buy or sell. The views expressed are those of the fund manager at the time of publication and may change in the future. Source: company data as at 01.05.23.
Reporting on the impact of our investments
Jupiter Ecology Fund seeks to invest in companies whose core products and services address global sustainability challenges. Our annual Impact Report sets out our thinking on how they affect the planet and society.
COP26
Is investor sentiment nudging the overall regulatory picture or is it the other way round? Jupiter’s Jon Wallace talks on the efficacy of political input and the legacy of COP26 with Citywire.
Jupiter Ecology Fund risks
- 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.
- 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.
- ESG (thematic) – Investments are selected or excluded on both financial and nonfinancial criteria, adopting an environmental solutions thematic approach to sustainable investment. The Fund’s performance may differ from the broader market or other funds that do not utilize sustainable investment criteria when selecting investments. The Fund’s investments are required to meet this criteria and the Fund may sell a security for reasons related solely to its sustainable investment criteria.
- ESG Data – The Fund uses data from third parties (which may include providers for research, reports, screenings, ratings and/or analysis such as index providers and consultants) and that information or data may be incomplete, inaccurate or inconsistent.
Meet the team
Experienced and well-resourced investment team
Latest insights from the team
35 years on: the compound effect of environmental solutions
US and EU ‘IRA’: made in China?
Outlook 2023: Environmental solutions are crossing a watershed
Notes from the Investment Floor: The mood music is starting to lift
Important information
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(s) 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. Holding examples 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. 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. 28032