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
Name
Jupiter Income Trust I Acc
Manager
Jupiter Unit Trust Managers Ltd
Type
Unit Trust
ISIN
GB00B5VXKR95
Sector
UK Equity Income
Launched
19/09/2011
OCF
0.94 %
Risk Rating
3
3 Year Sharpe
0.44
3 Year Alpha
-1.67
Yield
4.2 %
Benchmark
FTSE AllSh TR GBP
To provide income together with the prospect of capital growth, to achieve a return, net of fees, higher than that provided by the FTSE All Share Index, over the long term (at least five years). At least 70% of the fund is invested in shares of companies based in the UK (i.e. companies domiciled, headquartered or which conduct a majority of their business activity, in the UK). Up to 30% of the fund may be invested in other assets, including shares of other companies based anywhere in the world, open-ended funds (including funds managed by Jupiter and its associates), cash and near cash.
Holding %
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 %
Region %
United Kingdom 86.48 %
United States 8.31 %
Sector %
Financial Services 26.53 %
Consumer Cyclical 26.43 %
Industrials 11.74 %
Energy 10.41 %
Communication Services 8.33 %
Healthcare 7.22 %
Consumer Defensive 5.66 %
Name
Jupiter Unit Trust Managers Ltd
Address
SW1E 6SQ, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Ben Whitmore
Joined 01/01/2013

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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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.