Jupiter's investment approach revolves around one concept: 'Seeking to optimise performance over the medium to long term without exposing our investors to unnecessary risk'.
We capitalise on the fact that our fund management teams are small and focused and have short internal lines of communication, unlike some companies that are encumbered by lengthy committee driven processes. This approach gives us the necessary flexibility to make informed and timely decisions based on three core principles:
- Individual fund manager accountability: We believe that the best way to achieve this aim is through active fund management, where managers are given the freedom to manage their portfolios in the way they see fit. Our managers are not constrained by rigid core stock lists, thereby avoiding the drawbacks often associated with a consensus driven committees. We encourage our managers to exercise their flair and judgement and to take full responsibility for their stock decisions within an information-sharing team structure
- A fundamental approach: We believe long-term company fundamentals are ultimately reflected in share prices and the best way to identify opportunities is through strong proprietary research and an investment process differentiated from our main competitors. Our view is that there is a close relationship between the analyst and fund manager roles which we believe are complementary. As a result all our managers are generalist in terms of their skill base
- A focus on companies: Our efforts are concentrated on understanding certain key business characteristics which we believe are common to most companies. We build portfolios from the bottom up through examining company reports and news flow, and vital face-to-face meetings with the senior management of the companies in which we invest. This enables the manager to work out the upside potential and whether the company management is capable of successfully implementing their strategy
Risk Management
Jupiter firmly believes that managers should be responsible for their own performance and risk. We choose to monitor, rather than manage and have in place a strong process to alert us to any warning signs of underperformance, unjustifiable risk or unsuitable style bias for any particular fund. We use ex-post and ex-ante measures, reports from which are readily available to the fund managers.
- Funds are monitored on a monthly basis by the Performance and Portfolio Analytics team, who use BARRA risk software
- Attribution reports are produced monthly or adhoc using BARRA Performance Analyst and Factset Portfolio Analysis 2
- The Jupiter Portfolio Review Committee meets quarterly to discuss the entire fund range from a performance and risk perspective
- All transactions are executed using our electronic order management system Charles River, which aids compliance and stores a full transaction history
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