Jupiter Dynamic Bond ESG
Jupiter Dynamic Bond
The team ensures credit research captures environmental, social and governmental risks and opportunities. They also engage on ESG issues
Jupiter Dynamic Bond ESG
The fund promotes environmental and social characteristics including the transition to a low carbon economy and the upholding responsibilities to people and planet. Stricter ESG criteria are employed to determine security eligibility
Jupiter Dynamic Bond
This fund will be part of the next stage of Jupiter’s Net Zero Asset Managers initiative at a future date
Jupiter Dynamic Bond ESG
Jupiter Dynamic Bond
- Controversial weapons
While not formally restricted from investing in the following sectors by the fund’s Prospectus, the managers have elected to adopt the following voluntary restrictions:
- Tobacco
- Thermal coal
Please note that these restrictions will be subject to periodic review and may change
Jupiter Dynamic Bond ESG
- Controversial weapons
- Tobacco
- Alcohol
- Gaming
- Adult content
- Thermal coal
While not formally restricted from investing in the following sectors/instrument types by the fund’s Prospectus, the managers have elected to adopt the following voluntary restrictions:
- Oil and gas (company unable to transition)
- Sovereign and FX (which do not meet sustainability criteria)
- Credit (that fails to met sustainability criteria)
Please note that these restrictions will be subject to periodic review and may change
Jupiter Dynamic Bond
Fundamental to process
Jupiter Dynamic Bond ESG
Fundamental to process
Jupiter Dynamic Bond
- The Bloomberg engagement tool
- ESG Double materiality template
Jupiter Dynamic Bond ESG
- The Bloomberg engagement tool
- ESG Double materiality template
Internal evaluation under Jupiter’s proprietary methodology which includes qualitative and quantitive measures including:
- Stewardship
- Transparency
- Climate
- Integration into Security Selection
Jupiter Dynamic Bond
2 Morningstar Global Flexible Bond – EUR hedged sector.
Jupiter Dynamic Bond ESG
Investors are looking for income in a turbulent world marked by low interest rates without losing sight of their responsibility to society at large. Tackling the climate emergency and boosting equality and diversity in society are critical focus areas for governments and corporates alike.
Addressing these issues through a credible investment strategy calls for specialised skills, deep knowledge of the markets and active management to maximise value and minimize risks.
As a high-conviction, active fund management house, ESG considerations have long been integral to Jupiter’s investment process. In common with all of the company’s investment portfolios, Jupiter Dynamic Bond ESG will be aligned with Jupiter’s stated commitment to achieving net carbon neutrality across its own operations and the funds that it manages on behalf of clients by no later than 2050. Stricter ESG criteria are employed to determine security eligibility for the portfolio. Read more >
Please note that a decision to invest in Jupiter Dynamic Bond ESG should take into account all the characteristics of the fund, as outlined in its Prospectus. For further information on the sustainability-related aspects of the fund, please click here.
1 Source: Jupiter, as at 31.12.2021.
Why Jupiter Dynamic Bond ESG?
The building blocks of the existing Jupiter Dynamic Bond process comprise a top-down approach, involving the formulation of a medium to long term macro outlook which drives key fund characteristics, as well as bottom up analysis that seeks to uncover a wealth of deleveraging credit stories with attractive relative value. Read more >
Research from a host of sell-side companies, independent agencies and proprietary Jupiter research are scoured to identify opportunities. This is combined with ndependent credit analysis and engaging companies through regular meetings to increase value for stakeholders and manage downside risk.
The Fund is dependent upon ESG information and 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.
Dynamic Bond ESG – How our proprietary ESG work drives this process further
Our ESG blueprint: key characteristics
Leadership
i) net zero
ii) aligned to net zero by 2040. Signatory to the Net Zero Asset Managers initiative and UN Global Compact.
Investment
- Collaborate with companies to solve shared problems
- Share thought leadership and best in class practise
- Achieve real change to protect the future of society and the planet
Process
- Invest time in ESG analysis and engage to decarbonise
- Work back from a future vision. Make the difficult investment calls – there will be many.
Client focus
- Report regularly on a set of robust metrics, provide real time updates on how we are making a difference and align goals with those of our clients.
Jupiter Dynamic Bond ESG – How we implement the regulation
Regulatory requirement
Under SFDR, the categorisation of a fund as Article 8 requires that the portfolio manager:
- integrates sustainability risks into the investment decision making process
- manages the fund with a view to the promotion of environmental or social characteristics (but does not require the fund to be invested primarily in sustainable investments)
Key ESG characteristics
The fund promotes two fundamental ESG characteristics:
- transition to a low carbon economy
- upholding responsibilities to people and planet
Implementation
A potential investment is not necessarily ruled out if it does not currently meet the Key ESG characteristics, provided that there is evidence that:
- the company is capable of change in this area; and
- the company’s leadership is committed to changing and has set measurable and time-bound goals which are consistent with the Key ESG characteristics; and
- tangible progress is being made to attain these goals
Where the existing Jupiter Dynamic Bond fund fully embeds ESG considerations as part of its long-established investment process, the Jupiter Dynamic Bond Fund ESG will actively promote environmental and social characteristics, including the transition to a low carbon economy and the upholding responsibilities to people and planet, targeted at those investors looking for an Article 8-compliant solution to their global fixed income requirements. Read more >
High level asset allocation, as well as key risk characteristics, are expected to remain consistent across the two funds. Jupiter Dynamic Bond ESG will use stricter ESG criteria, including certain sector and sovereign exclusions, data science and sustained engagement work, alongside thorough qualitative research, to determine security eligibility for the portfolio. The measurement requirements associated with Article 8 funds will lead to long-term sustainability targets for investee companies and governments across the fund, against which progress will be tracked, monitored and shared.
In terms of the yield on the ESG vehicle relative to the existing fund, the managers will seek to minimise the differential to the extent possible. However, the characteristics that the fund promotes will not be compromised in order to achieve this goal. As an example, the stage of the investment cycle may impact the yield differential between the two funds – it could narrow when the asset allocation to government bonds is higher and grow further apart if high yield names take precedence as many of them may not qualify under our selection criteria.
Please note that the fund can invest a significant portion of the portfolio in high yield bonds and bonds which are not rated by a credit rating agency. While such bonds may offer a higher income, the interest paid on them and their capital value is at greater risk of not being repaid, particularly during periods of changing market conditions.
While our proprietary sovereign bond framework will aid in asset selection, it’s not a mechanical process driven by just quantitative metrics and backward-looking messages. Perception about the direction of travel as well as the ability to engage and drive change are all important, which can only be achieved by an active fund like ours. Although a permitted investment according to the Prospectus, Chinese sovereign bonds will initially be a noteworthy exclusion from Jupiter Dynamic Bond ESG. Asset allocation to specific sovereigns will be evaluated and reviewed on an ongoing basis.
1 Regional allocation will be dependent on sovereign exclusions based on our stricter ESG criteria.
What is different between Dynamic Bond and Dynamic Bond ESG?
Jupiter Dynamic Bond
The team ensures credit research captures environmental, social and governmental risks and opportunities. They also engage on ESG issues
Jupiter Dynamic Bond ESG
The fund promotes environmental and social characteristics including the transition to a low carbon economy and the upholding responsibilities to people and planet. Stricter ESG criteria are employed to determine security eligibility
Jupiter Dynamic Bond
This fund will be part of the next stage of Jupiter’s Net Zero Asset Managers initiative at a future date
Jupiter Dynamic Bond ESG
Jupiter Dynamic Bond
- Controversial weapons
While not formally restricted from investing in the following sectors by the fund’s Prospectus, the managers have elected to adopt the following voluntary restrictions:
- Tobacco
- Thermal coal
Please note that these restrictions will be subject to periodic review and may change
Jupiter Dynamic Bond ESG
- Controversial weapons
- Tobacco
- Alcohol
- Gaming
- Adult content
- Thermal coal
While not formally restricted from investing in the following sectors/instrument types by the fund’s Prospectus, the managers have elected to adopt the following voluntary restrictions:
- Oil and gas (company unable to transition)
- Sovereign and FX (which do not meet sustainability criteria)
- Credit (that fails to met sustainability criteria)
Please note that these restrictions will be subject to periodic review and may change
Jupiter Dynamic Bond
Fundamental to process
Jupiter Dynamic Bond ESG
Fundamental to process
Jupiter Dynamic Bond
- The Bloomberg engagement tool
- ESG Double materiality template
Jupiter Dynamic Bond ESG
- The Bloomberg engagement tool
- ESG Double materiality template
Internal evaluation under Jupiter’s proprietary methodology which includes qualitative and quantitive measures including:
- Stewardship
- Transparency
- Climate
- Integration into Security Selection
Jupiter Dynamic Bond
2 Morningstar Global Flexible Bond – EUR hedged sector.
Jupiter Dynamic Bond ESG
Engagement reports
ESG in Fixed Income - why do it?
Engagement summary: Organon Q3 2022
The Jupiter Fixed Income team have engaged with Organon on a range of topics, from diversity to their carbon emissions. Find out what other points were raised and how Organon responded in the full engagement study.
Engagement summary: PeopleCert Q3 2022
The Jupiter Fixed Income team have engaged with PeopleCert on a range of topics, from climate risk to their gender pay gap and carbon emissions. Find out what other points were raised and how PeopleCert responded in the full engagement study.
Engagement summary: Lifepoint Health Q3 2022
The Jupiter Fixed Income team have engaged with Lifepoint Health on a range of topics, from how they report their carbon emissions to representation on their board. Find out what other points were raised and how Lifepoint Health responded in the full engagement study.
Engagement summary: HSBC Q3 2022
The Jupiter Fixed Income team have engaged with HSBC on a range of topics, from their gender pay gap to carbon emissions. Find out what other points were raised and how HSBC responded in the full engagement study.
Engagement summary: Center Parcs Q1 2023
The Jupiter Fixed Income team have engaged with Center Parcs on a range of topics, from their Scope 3 emissions to biodiversity. Find out what other points were raised and how Center Parcs responded in the full engagement study.
Engagements in Fixed Income: Barclays
The Jupiter Fixed Income team have extensively engaged with Barclays on a range of topics, from the reduction of greenhouse gas emissions within the companies they invest, to the gender pay gap and diversity and inclusion at board level. Find out what other points were raised and how Barclays responded in the full engagement report.
Engagement summary: Tesco Q2 2022
The Jupiter Fixed Income team have engaged with Tesco on a range of topics, from how their carbon footprint to using their scale to link innovators with farmers and suppliers. Find out what other points were raised and how Tesco responded in the full engagement study.
Engagement summary: NatWest Q3 2022
Anna Karim describes our recent engagement with NatWest, in which we discussed their progress against a variety of ESG metrics.
Jupiter Fixed Income Engagement Review – September 2022
In 2022, the Jupiter Fixed Income team have engaged with over 40 companies within their portfolios on ESG issues.
Engagement summary: TP ICAP Q1 2023
The Jupiter Fixed Income team have engaged with TP ICAP on a range of topics, from the gender pay gap to their carbon emissions. Find out what other points were raised and how TP ICAP responded in the full engagement study.
Why should companies care about diversity…and why we do
Anna Karim underscores the importance of diversity within the workforce and examines the various positive effects a diverse workforce creates for companies and their shareholders.
Fund specific risks
- Investment risk – 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, even if the share class is hedged against the main currency of the Fund.
- High Yield bond risk – The fund can invest a significant portion of the portfolio in high yield bonds and bonds which are not rated by a credit rating agency. While such bonds may offer a higher income, the interest paid on them and their capital value is at greater risk of not being repaid, particularly during periods of changing market conditions.
- Interest rate risk – Bonds are very sensitive to interest rate changes and it is possible that issuers of bonds will not pay interest or return the capital promised. Bonds may also be downgraded by rating agencies. These events can reduce the value of bonds and have a negative impact on performance.
- Liquidity risk – In difficult market conditions, reduced liquidity in bond markets may make it harder for the manager to sell assets at the quoted price. This could have a negative impact on the value of your investment. In extreme market conditions, certain assets may become hard to sell in a timely manner or at a fair price. This could affect the Fund’s ability to meet investors’ redemption requests upon demand.
- Derivative risk – The Fund may use derivatives for investment purposes which under certain market conditions may cause the Fund to significantly fall in value. Investments in financial derivative instruments can introduce leverage risks which can amplify gains or losses in the Fund. Derivatives also involve counterparty risk where the institutions acting as counterparty to derivatives may not meet their contractual obligations.
- Counterparty risk – There is a risk that any company providing services such as safe keeping of assets or acting as counterparty to derivatives may become insolvent, which may cause losses to the Fund.
- Capital Erosion risk – All the share class charges are taken from income. Should there not be sufficient income charges will be taken from capital.
- Third party data risk – The Fund is dependent upon ESG information and 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.
The fund may be subject to other risk factors, please see the Prospectus for further information.
This is a marking communication. Please refer to the latest sales prospectus of the fund and to the Key Investor Information Document (KIID) or Key Information Document (KID), particularly to the fund’s investment objective and characteristics including those related to ESG (if applicable), before making any final investment decisions. These are available from the document library.
Jupiter Strategic Bond Fund
A flexible and unconstrained approach designed to maximise returns in different macro environments.
About the ‘climate stripes’: The climate warming stripes graphic depicts annual mean global temperatures (1850-2018, from World Meteorological Organization data), said to have been produced for the World Meteorological Organisation (WMO) provisional State of the Climate report. The use of the graphic represents Jupiter’s firm-wide, public commitment to playing its part in actively addressing one of the greatest challenges facing our planet. Source/credit: Climate scientist Ed Hawkins, University of Reading, UK. Data values are visualised using colour rather than locations of points on a graph. Horizontal scale is time, from 1850 (left) to 2018 (right). Data is global (not for a locality). Use of the graphic does not imply endorsement of any product or service by its creator. Graphic used under licence: Creative Commons — Attribution-ShareAlike 4.0 International — CC BY-SA 4.0
Meet the team
Jupiter Fixed Income Team
Investors in the fund can benefit from the expertise and experience of our fund managers and credit analysts, who optimise exposure to all parts of the global bond market in any environment. The team is headed by Ariel Bezalel, Head of Strategy, Fixed Income, who has over 20 years of experience in sovereign and credit markets, along with Fund Manager Harry Richards, Fund Manager Vikram Aggarwal, a team of dedicated credit analysts led by Luca Evangelisti, Head of Credit Research, with additional expertise provided by Matthew Morgan, Investment Director, Fixed Income. The whole team is based in London, with the single location fostering strong team interaction, communication, and agility of active fund management.
Literature
Click the button below to download all fund literature of Jupiter Dynamic Bond ESG.
Latest insights from the team
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Strong tailwinds
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This is a marketing communication. Please refer to the latest sales prospectus of the sub-fund and to the Key Investor Information Document (KIID), particularly to the sub-fund’s investment objective and characteristics including those related to ESG (if applicable), before making any final investment decisions.
This communication is intended for investment professionals and is not for the use or benefit of other persons, including retail investors.
This communication 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.
The views expressed are those of the Fund Manager(s) at the time of writing/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 Global Fund (the Company), or any other fund managed by Jupiter Asset Management Limited or Jupiter Asset Management International S.A.. The Company is a UCITS fund incorporated as a Société Anonyme in Luxembourg and organised as a Société d’Investissement à Capital Variable (SICAV).
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The sub fund(s) may be subject to various other risk factors, please refer to the latest sales prospectus for further information.
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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 Investor Information documents. The Management Company 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.
Denmark: Skandinaviska Enskilda Banken, Denmark, branch of Skandinaviska Enskilda Banken AB (PUBL), Sweden, acting through its entity Investor Services, Large Corporates & Financial Institutions, Denmark (Danish representative) Bernstorffsgade 50, 1577 Copenhagen V, Denmark.
France: CACEIS Bank France (Centralising Agent), 1/3 Place Valhubert, 75013 Paris, France.
Germany: ACOLIN Europe AG (Information Agent), Reichenaustrasse 11 a – c, 78467 Konstanz, Germany.
Liechtenstein: Liechtensteinische Landesbank AG (Paying Agent), Städtle 44, 9490 Vaduz, Liechtenstein.
Italy: Allfunds Bank, S.A.U., Milan Branch, Via Bocchetto 6, 20123 Milano, Italy. CACEIS Bank, Italy Branch Via Piazza Cavour 2,20121 Milano, Itlay. Société Générale Securities Services, Via Benigno Crespi 19, 20159 Milano, Italy. 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: the Company’s registered office: 31 Z.A. Bourmicht L-8070 Bertrange, 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 1253, 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.
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 Company’s representative and paying agent in Switzerland, BNP Paribas Securities Services, Paris, Zurich branch, Selnaustrasse 16, 8002 Zurich, Switzerland.
United Kingdom: Jupiter Asset Management Limited (the Investment Manager and UK Facilities Agent), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ, United Kingdom, authorised and regulated by the Financial Conduct Authority.
Issued by Jupiter Asset Management International S.A. (JAMI, the Management Company and Facilities Agent), registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg which is authorised and regulated by the Commission de Surveillance du Secteur Financier.
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