Fact sheet: Jupiter Strategic Bond

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
STERLING BONDS
Sector
UT Sterling Strategic Bond
Fund type
Unit Trust
Primary aim
INCOME
Why Money Observer Rates Jupiter Strategic Bond

Rated Fund 2013-2017. Aiming to chart a steady course

This fund is a 'go-anywhere' bond fund that seeks to invest in the best opportunities globally, across a range of fixed interest securities including high-yield bonds, investment-grade bonds, government bonds and convertibles. It can also use derivatives to mitigate the risk of falling bond prices.

The distribution yield on its 'clean' share classes is over 4 per cent and it pays income quarterly. Manager Ariel Bezalel is supported by a team of several analysts. Their investment process typically begins with their views on the economic outlook. Then they move on to analysing the companies.

The team's economic views influence how much interest rate sensitivity and risk Bezalel takes in the fund. When they are feeling more risk-averse he will typically have more investment grade bonds in the portfolio, but when they are more bullish there will be more high yield bonds. His economic considerations also help him to decide on the best regions to invest in.

Meeting company managements are a key part of the investment process. Bezalel looks particularly for those that are deleveraging - paying down their debts over time, which leads to an improvement in their creditworthiness and pushes their bond prices higher.

Avoiding any losses is a top priority, so when he is investing in high-yield bonds he prefers the most senior bonds in a company's capital structure, which are typically secured on the company's assets. With the fund's flexibility, Bezalel is confident he can steer a steady course through various market conditions.

3 Year Performance
Fund Performance13.5%
Average of Rated Funds Group20.7%
Sector Performance12.2%
Fund information
Fund name
Jupiter Strategic Bond I Acc
Fund manager company
Jupiter Unit Trust Mgrs Ltd
Fund type
Unit Trust
Fund manager
  • Ariel Bezalelsince 01/06/2008
Accolades
Highly Commended - Large Fund - UK Bonds
Fund objective
The Fund aims to achieve a high income with the prospect of capital growth by seeking out the best opportunities within the fixed interest universe globally. The Fund invests in higher yielding assets including high yield bonds, investment grade bonds, government bonds, preference shares, convertible bonds and other bonds. The Fund may invest in derivatives and forward transactions for investment purposes (including, but not limited to, forward currency transactions to hedge exposure in Euro denominated bonds back into Sterling).
Benchmark
  • iBoxx Sterling Non Gilts All Maturities Index
Investment style
Strategic Investment
Investment method
Fixed Interest
Quick stats
1 Year return
4.7%
1 Year rank in sector
52/83
Sector
UT Sterling Strategic Bond
Yield
3.4%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.73%
Fund size
£3,846m (£3,199m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
19
Bid price
102.33
Offer price
102.8
Top in this sector
Fund name1 Year
GAM Credit Opportunities GBP13.5%
Man GLG Stgc Bd10.8%
Artemis High Income10.3%
Baillie Gifford Corp Bd10%
Henderson FxIntMtlyInc10%
...more in UT Sterling Strategic Bond

Performance snapshot

Holdings snapshot

  • UK25.1%
    Asia Pacific ex Japan20.8%
    North America14.1%
    Europe ex UK7.5%
    European Emerging Markets3.5%
  • BB22.9%
    AAA22.6%
    B19.5%
    Non-Rated16.4%
    BBB8.5%
  • Global Corporate Fixed Interest46.1%
    Global Government Fixed Interest34.4%
    Money Market12.3%
    Convertibles2.8%
    Others0.5%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund0.3%0.4%1.4%4.7%13.5%28.3%
Sector-0.1%-0.2%0.9%5.3%12.2%23.3%
Rank within sector8 / 8529 / 8434 / 8352 / 8337 / 7523 / 66
Quartile1st2nd2nd3rd2nd2nd
Calendar performance
 YTD - 20172016201520142013
Fund4.2%7.4%1.2%4.3%6.7%
Sector3.9%7.3%-0.3%6.8%2.6%
Rank within sector37 / 8340 / 7817 / 7559 / 7413 / 68
Quartile2nd3rd1st4th1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
1.74
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.65
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.39
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
2.66
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
1.9
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.15
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.68
Price movement
52 week high102.87
52 week low97.36
Current bid price102.33
Current offer price102.8
Current mid price-
Region
1UK25.15%
2Asia Pacific ex Japan20.81%
3North America14.1%
4Europe ex UK7.55%
5European Emerging Markets3.5%
6Latin America3.33%
7Middle East1.58%
8Japan1.24%
9Africa0.43%
Industry sector
1BB22.86%
2AAA22.64%
3B19.52%
4Non-Rated16.39%
5BBB8.46%
6CCC2.83%
7AA2.58%
8A0.57%
9CC0.28%
Asset type
1Global Corporate Fixed Interest46.12%
2Global Government Fixed Interest34.42%
3Money Market12.28%
4Convertibles2.77%
5Others0.52%
6Alternative Investment Strategies-8.24%
7Futures-10.25%
Individual holdings
1UNITED STATES OF AMER TREAS BILLS 3% BDS 15/02/47 USD1005.23%
2UNITED STATES OF AMER TREAS NOTES 2.25% BDS 15/02/27 USD10004%
3AUSTRALIAN GOVT LOANS(CMNWLTH OF) 3.75% LN STK 21/04/37 AUD1003.52%
4UNITED STATES OF AMER TREAS BONDS 2.25% BDS 15/08/46 USD1002.79%
5AUSTRALIAN GOVT LOANS(CMNWLTH OF) 4.25% LN STK 21/04/26 AUD1002.54%
6 HELLENIC REPUBLIC 0% 05/01/181.37%
7TELECOM ITALIA SPA(NEW) 7.375% MTN 15/12/17 GBP500001.21%
8HELLENIC REPUBLIC 0% 12/01/181.18%
9AUSTRALIA(COMMONWEALTH OF) 3.25% BDS 21/06/39 AUD10001.11%
Management
Fund manager group
Jupiter
Fund manager company
Jupiter Unit Trust Mgrs Ltd
Fund type
Unit Trust
Fund objective
The Fund aims to achieve a high income with the prospect of capital growth by seeking out the best opportunities within the fixed interest universe globally. The Fund invests in higher yielding assets including high yield bonds, investment grade bonds, government bonds, preference shares, convertible bonds and other bonds. The Fund may invest in derivatives and forward transactions for investment purposes (including, but not limited to, forward currency transactions to hedge exposure in Euro denominated bonds back into Sterling).
Benchmark
  • iBoxx Sterling Non Gilts All Maturities Index
Investment style
Strategic Investment
Investment method
Fixed Interest
Fund manager
NameSinceBiography
Ariel Bezalel01/06/2008Ariel Bezalel started his career at Jupiter and has been a member of the Fixed Interest & Multi-Asset Team since 1998 and a fund manager since 2000. He currently manages the Jupiter Strategic Bond Fund (Unit Trust) and the Jupiter Dynamic Bond fund (SICAV). Ariel has a degree in Economics from Middlesex University.
Compliance
IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
Jupiter Strategic Bond Acc
Initial charge4%
Annual charge1.25%
Min single investment£500
Min regular saving£50
Available in ISAYes
Ongoing charge (OCF)1.48%
Total expense ratio (TER)1.51%
Bid price98.67
Offer price103.18
Mid price-
CurrencyGBX
Price updated17/11/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeBUF6
Jupiter Strategic Bond I Acc
Initial charge5.25%
Annual charge0.5%
Min single investment£5,000,000
Min regular saving£50,000
Available in ISANo
Ongoing charge (OCF)0.73%
Total expense ratio (TER)0.76%
Bid price102.33
Offer price102.8
Mid price-
CurrencyGBX
Price updated17/11/2017
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi code09Q3
Jupiter Strategic Bond I Inc
Initial charge5.25%
Annual charge0.5%
Min single investment£5,000,000
Min regular saving£50,000
Available in ISANo
Ongoing charge (OCF)0.73%
Total expense ratio (TER)0.76%
Bid price66.23
Offer price66.64
Mid price-
CurrencyGBX
Price updated17/11/2017
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi code09Q4
Jupiter Strategic Bond Inc
Initial charge4%
Annual charge1.25%
Min single investment£500
Min regular saving£50
Available in ISAYes
Ongoing charge (OCF)1.48%
Total expense ratio (TER)1.51%
Bid price65.85
Offer price69.01
Mid price-
CurrencyGBX
Price updated17/11/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeBUF7
Jupiter Strategic Bond Z Acc
Initial charge5.25%
Annual charge0.48%
Min single investment£125,000,000
Min regular saving£250,000
Available in ISANo
Ongoing charge (OCF)0.71%
Total expense ratio (TER)-
Bid price102.34
Offer price102.82
Mid price-
CurrencyGBX
Price updated17/11/2017
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeKK2H
Jupiter Strategic Bond Z Inc
Initial charge5.25%
Annual charge0.48%
Min single investment£125,000,000
Min regular saving£250,000
Available in ISANo
Ongoing charge (OCF)0.71%
Total expense ratio (TER)-
Bid price66.23
Offer price66.65
Mid price-
CurrencyGBX
Price updated17/11/2017
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeKK2G
Data provided by

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.