Hilary Blandy outlines the objective and investment philosophy of the Jupiter Monthly Income Bond fund, as well as where she and the team get an investment edge.
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.
- Contingent convertible bonds - The fund may invest in contingent convertible bonds. These instruments may experience material losses based on certain trigger events. Specifically, these triggers may result in a partial or total loss of value, or the investments may be converted into equity, both of which are likely to entail significant losses.
- Credit risk - The issuer of a bond or a similar investment within the fund may not pay income or repay capital to the fund when due.
- 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 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.
- 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.
- Sub investment grade bonds - The fund may invest a significant portion of its assets in securities which are those rated below investment grade by a credit rating agency. They are considered to have a greater risk of loss of capital or failing to meet their income payment obligations than higher rated investment grade bonds.
- Charges from capital - Some or all of the fund’s charges are taken from capital. Should there not be sufficient capital growth in the fund this may cause capital erosion.
For a more detailed explanation of risks, please refer to the "Risk Factors" section of the scheme particulars.
The value of active minds: independent thinking
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
Marketing communication. This document is intended for investment professionals and is not for the use or benefit of other persons, including retail investors. The value of investments and income may go down as well as up and investors may not get back amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.
The views expressed are those of the author(s) at the time of preparation, are not necessarily those of Jupiter as a whole and may be subject to change. An investment is designed to be held over a longer-term. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. Quoted yields are not a guide or guarantee of the expected level of distributions to be received. The yield may fluctuate significantly during times of extreme market and economic volatility. No part of this document may be reproduced in any manner without the prior permission of Jupiter.
The fund is authorised and regulated by the Financial Conduct Authority.
Please refer to the latest Prospectus and to the Key Investor Information Document (KIID) before making any investment decision. Particularly to the fund/sub-fund investment objective, characteristics including those related to ESG (if applicable), and additional risk factors. These documents are available for download from www.jupiteram.com or can be obtained free of charge upon request.
An investment is an acquisition of shares in the fund/sub-fund, not in the fund/sub-fund’s underlying assets.
The fund is subject to product governance rules under MiFID II and is intended only for specified target market categories.
Issued by Jupiter Unit Trust Managers Limited and Jupiter Asset Management Limited which are both authorised and regulated by the Financial Conduct Authority and their registered address is The Zig Zag Building, 70 Victoria Street, London SW1E 6SQ.