Factsheet: Jupiter Income Trust I Acc
UK Equity Income
Rated Fund 2017-2018. A deep value play
A newcomer in 2017, Jupiter Income has retained its Rated Fund status this year, despite underperforming its benchmark and peer group over the past year on account of manager Ben Whitmore's deep value style being out of favour. Longer-term, his contrarian approach has paid off, with the fund performing well since he became lead manager in January 2013. It yields 3.7 per cent and pays income half-yearly.Whitmore takes a bottom-up, stock-picking investment approach. On the basis that any weakness is temporary, he buys unloved, lowly priced shares in companies that are nevertheless well-run and have sound balance sheets.He has no pre-set size or sector bias, but his team tends to focus on the biggest 400 UK companies.He believes that investors' emotions can get in the way of making the best possible investment decisions, so 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 lowly rated 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 maintain dividends. A rich valuation and/or falling dividend yield can trigger a sale.Barclays Wealth and Investments highlights Whitmore as one of the few UK equity managers to run such a deep-value investment process. As and when the style returns to favour, this fund should outperform.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|BP PLC||6.24 %|
|HSBC Holdings PLC||5.28 %|
|Aviva PLC||4.65 %|
|Pearson PLC||4.14 %|
|Smiths Group PLC||3.81 %|
|Cisco Systems Inc||3.79 %|
|Standard Chartered PLC||3.36 %|
|GlaxoSmithKline PLC||3.28 %|
|Imperial Brands PLC||3.22 %|
|LM Ericsson Telephone Co B||3.21 %|
|United Kingdom||82.51 %|
|United States||9.62 %|
|Financial Services||23.94 %|
|Consumer Cyclical||19.01 %|
|Consumer Defensive||8.18 %|
|Basic materials||5.69 %|
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.
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