Jupiter today announces the launch of the Jupiter Global Ecology Bond fund (SICAV), building on the company’s longstanding heritage of environmental investing expertise. A portfolio of global corporate bonds issued by companies that focus on making a positive impact towards environmental and sustainable objectives, the fund will be classified as Article 9 under the EU Sustainable Finance Disclosure Regulation (SFDR).
Managed by Jupiter’s Head of Environmental Solutions, Rhys Petheram, the fund will target robust, long-term investment opportunities in companies whose core economic activities contribute to addressing global environmental sustainability challenges, with a particular focus on climate change mitigation and natural capital and biodiversity restoration.
The fund will have the flexibility to invest in both labelled and unlabelled bonds – including green, sustainability, social, or sustainability-linked/sustainability awareness bonds – and conventional bonds, all assessed using strict sustainability criteria and a rigorous, industry-leading verification process. Under normal market conditions, it is expected that the fund will comprise around 60 to 90 issuers and while it has the flexibility to invest across the credit spectrum, its overall average rating is expected be investment grade.
A recognised thought-leader in environmental fixed income investments with over 20 years’ experience across fixed income and multi-asset portfolios, fund manager Rhys Petheram has been a key player in the development of the green bond market, engaging with industry bodies and issuers in pursuit of a more ambitious and impactful market. As a specialist in the field, Rhys has been a key contributor to CFA Society UK’s new Certificate in Climate & Investing, as part of the authoring team for the chapter on listed investment instruments.
Working alongside equities fund manager Jon Wallace, Rhys has managed the corporate bond segment of the mixed-asset Jupiter Global Ecology Diversified Fund since inception in 2016. In running the Jupiter Global Ecology Bond fund, Rhys will be supported by his team of dedicated thematic environmental investment experts, alongside Jupiter’s 26-strong fixed income team.
Rhys Petheram, Head of Environmental Solutions, commented: “2021 was a record-setting year for green finance with issuance of labelled sustainability bonds topping $1 trillion for the first time. The scale of change required to reverse global warming is creating significant opportunities to support companies which provide products and services critical to achieving sustainability targets, and the growing environmental solutions universe is now setting the pace for policy and regulation.
“Amid increasing global collaboration, we expect these solutions will spread widely to as-yet unpenetrated sectors of the global economy, creating a multi-decade investment opportunity that we believe we are well-positioned to identify and capture in this new fund.”
Warren Tonkinson, Deputy Global Head of Distribution, added: “History and experience really do matter in this space. Jupiter was one of the first companies to launch an environmental fund nearly 35 years ago, and the first to launch a green multi-asset thematic fund in 2016. When the first corporate green bonds were issued in 2012, Rhys was one of the first investors at the table, and in the years since he has been instrumental in shaping the green bond universe as we know it today.
“Rhys and his team have a thematic approach to investing that is truly unique among fixed income funds, and we are delighted to be launching this fund to allow our clients greater access to his unparalleled investment expertise in this field.”
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Notes to Editors
Jupiter is a specialist, high conviction, active asset manager committed to making a positive difference for our clients by helping them achieve their long-term investment objectives. From the origins in 1985, Jupiter now offers a range of actively managed strategies available to UK and international clients including equities, fixed income, multi-asset and alternatives. Jupiter is a constituent member of the FTSE 250 Index and has assets under management of £60.7bn /$81.8bn /€70.7bn as at 30/09/2021.
Independence of thought and individual accountability define Jupiter. The fund managers follow their convictions and seek those investment opportunities that they believe will ensure the best outcome for Jupiter’s clients. They do this through fundamental analysis and research, a clear investment process and risk management framework, with a focus on good stewardship.
Jupiter believes that asset managers have a critical leadership role to play in helping to resolve some of the greatest challenges facing the world. In this spirit, Jupiter is proud of the long-established credentials in the fields of ESG and sustainable investment, and the ongoing commitment to specialism and innovation in these areas. Jupiter is a constituent member of the FTSE4Good Index, and a signatory on a number of key initiatives such as the UN Principles for Responsible Investment.
Jupiter’s values and responsible business practices are aligned with the principles of the UN Global Compact and the 2020 UK Stewardship Code. Having engaged with the Financial Reporting Council (FRC) on the implementation of the 2020 UK Stewardship Code, Jupiter supports this reinvigorated framework and has undertaken further investor outreach with the FRC and the Investment Association (IA). Furthermore, Jupiter obtained the A+ score for strategy and governance in the latest assessment of activities under the Principles for Responsible Investment (PRI) and also maintained the ‘A’ status under the PRI principles for our equities strategies and improved our ranking to an ‘A’ in fixed income. Jupiter is a member of the Investor Forum (IF), the UK body which helps facilitate collective engagement with companies, with Jupiter’s Edward Bonham Carter on the Board of Directors. Jupiter Chief Executive Andrew Formica is a Board member of the IA and a member of the UK Government’s Asset Management Taskforce, which represents the interests of our industry in key decision-making forums.
The information contained in this press release is intended solely for members of the media and should not be relied upon by private investors or any other persons to make financial decisions.
This communication, including any data and views in it, is not a financial promotion as defined in MiFID II. It does not constitute an invitation to invest or investment advice in any way. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.
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. 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. Income distributing share class charges are taken from capital. Should there not be sufficient capital growth in the Fund this may cause capital erosion. The Fund has the ability to use derivatives for efficient portfolio management purposes. Investments in financial derivative instruments used for efficient portfolio management can introduce leverage risks and negatively impact
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