Jupiter Global Value Equity Strategy
Disciplined in the pursuit of value
Jupiter’s Value Equities strategy is focused on identifying lowly valued securities with resilient balance sheets and good businesses in an attempt to capture the value premium. The team does not attempt to make forecasts at either the company or macro level, instead aiming to understand where a company’s current earnings sit within the broader historical context.
There is a significant amount of evidence showing that shares purchased at a low valuation have historically delivered above-average returns over time. However, clearly not all lowly-valued shares will make good long-term investments, so the investment team carefully weigh up the price they pay for a share against their view of the quality of the company’s business. They also pay great attention to the broader ESG characteristics of companies, seeking firms that can balance a variety of stakeholder interests and thereby achieve attractive sustainable returns.
There is a significant amount of evidence showing that shares purchased at a low valuation have historically delivered above-average returns over time. However, clearly not all lowly-valued shares will make good long-term investments, so the investment team carefully weigh up the price they pay for a share against their view of the quality of the company’s business. They also pay great attention to the broader ESG characteristics of companies, seeking firms that can balance a variety of stakeholder interests and thereby achieve attractive sustainable returns.
Thorough screening and detailed company analysis
The team’s investment process starts with a thorough filtering of the investment universe using two methods: a Graham & Dodd screen and a Greenblatt screen. Then the detailed stock-specific analysis can begin, looking in depth at a stock’s financial history and franchise quality, with an emphasis on balance sheet strength, strong conversion of profits into free cash, and high standards of corporate governance.
Effecting change through ESG engagement
The team take a serious and proactive approach to ESG engagement with companies. There is no one-size fits all approach, but over the years their efforts have focused on analysing the interests of the three major stakeholder groups in any company: employees; customers (including society more broadly); and shareholders. The team believe that for a company to succeed over the long term, the interests of all three stakeholder groups need to be in alignment. If one of these stakeholders is dominant at the expense of the others, performance may be strong in the short term but tends to be unsustainable.
Focused on absolute measures of risk
When it comes to managing the risk to which investors in the strategy’s funds are exposed, the team believe that relative measures of risk such as Beta, Tracking Error and VaR encourage momentum investing and cause investors to be overly aware and reliant on the benchmark. They instead manage the strategy with a benchmark agnostic approach that is focused on absolute, rather than relative, measure of risk. For this reason, they focus on investing in companies that can demonstrate both strong balance sheets and low valuations, while ensuring that the strategy has a diverse set of uncorrelated risks.
True exposure to the Value style
The strategy rigorously follows its Value investment style. Value as a style has been out of favour for many years, as growth and momentum factors have come to dominate the market, but the team have not wavered in their adherence to sound Value principles. Their goal is to make sure the portfolio is positioned in the most robust and attractive lowly-valued opportunities in the global equity market so that, if and when market sentiment shifts back in favour of Value, investors in the strategy’s funds will be well placed to capitalise.
Important Information
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 invests mainly in shares and it is likely to experience fluctuations in price which are larger than funds that invest only in bonds and/or cash. Quarterly income payments will fluctuate. All of the fund’s expenses are charged to capital, which can reduce the potential for capital growth.
The Key Investor Information Document, Supplementary Information Document and Scheme Particulars are available from the document library.
Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.
Meet the team
Jupiter Value Equities team
The Jupiter Value Equities strategy is led by Ben Whitmore, who co-manages the Jupiter Global Value Equity Fund alongside Dermot Murphy. They are supported by equity analysts Brian McCormick and Ellen Mann, as well as investment director Claudia Ripley.
Ben joined Jupiter in 2006, prior to which he worked at Schroders, managing both retail and institutional portfolios and around £2 billion of assets. Dermot joined Jupiter in 2014 from Fidelity, where he was a Building Materials Analyst. Brian and Ellen both joined Jupiter in 2020, while Claudia joined in 2016 from BlackRock.
Ben joined Jupiter in 2006, prior to which he worked at Schroders, managing both retail and institutional portfolios and around £2 billion of assets. Dermot joined Jupiter in 2014 from Fidelity, where he was a Building Materials Analyst. Brian and Ellen both joined Jupiter in 2020, while Claudia joined in 2016 from BlackRock.
Literature
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