Jupiter Income Trust I Acc
UK Equity Income
Rated Fund 2017-19. A deep value play
Ben Whitmore, manager since 2013, has a solid track record with this fund, despite periods when his style has been out of favour. The fund yields 4.1% paid half-yearly.
Barclays Wealth and Investments highlights Whitmore as one of the few UK equity managers to run a deep value investment process, and points to his decent performance despite market conditions that aren’t really favourable to him and his style.
Whitmore takes a bottom-up, stockpicking investment approach. On the basis that any weakness is temporary, he buys unloved, low-priced shares in companies that are nevertheless well-run and have sound balance sheets.
He has no pre-set size or sector bias, though his team tends to focus its attention on the biggest 400 UK companies.
He believes investors’ emotions can get in the way of them making the best possible investment decisions, so he uses two investment screens to inform what he should buy and sell.
The first screen looks for shares that are lowly valued on their earnings power across an economic cycle, and the second looks for shares that are both rated lowly and have high returns.
Having narrowed down the investable universe, he aims to identify companies with strong franchises and balance sheets, and a high level of free cash flow as a proportion of after-tax profits, to enable them to maintain dividends. A richer valuation and/or falling dividend yield can trigger a sale.
He targets initial position sizes of at least 2% of the fund’s value and employs a minimum weighting of 1.5% to make his stockpicking count. The portfolio is concentrated in 38 positions.
On the downside, ongoing charges are a tad high at 0.94%.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|BP PLC||6.77 %|
|GlaxoSmithKline PLC||5.56 %|
|WPP PLC||4.75 %|
|Aviva PLC||4.63 %|
|Standard Chartered PLC||4.12 %|
|Vodafone Group PLC||4.09 %|
|BT Group PLC||3.43 %|
|Pearson PLC||3.34 %|
|Imperial Brands PLC||3.26 %|
|BAE Systems PLC||3.13 %|
|United Kingdom||86.48 %|
|United States||8.31 %|
|Financial Services||26.53 %|
|Consumer Cyclical||26.43 %|
|Communication Services||8.33 %|
|Consumer Defensive||5.66 %|
Ben Whitmore joined Jupiter in October 2006. He manages the Jupiter UK Special Situations Fund (Unit Trust) and institutional assets. Prior to joining Jupiter, Ben worked at Schroders, managing both retail and institutional portfolios and some £2bn of assets - including the £281m Schroder Recovery Fund - establishing an excellent track record as a value-driven, contrarian fund manager. Ben gained a degree in Geography from Cambridge University.
Data provided by Morningstar.
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