Jupiter Japan Income Fund I Acc

Japanese Equities

New for 2020. Seeks undervalued growth opportunities to produce rising dividends    

Jupiter Japan Income takes a place in our Rated Funds for 2020 as our preferred option for those seeking to diversify their sources of income. It is one of the few Japan funds with an income orientation and pays income half-yearly. At 2.3%, its yield is slightly lower than that of the fund it has dethroned, LF Morant Wright Nippon Yield, but its total returns are superior by a good margin.

Dan Carter, manager of Jupiter Japan Income since 2016, believes shares are valued according to their potential for future dividend payments. If they are large or likely to increase, the value of shares is generally high. If they are small or likely to decrease, their value is low. He seeks to invest in companies he believes are able to grow their dividends more rapidly than the overall market.

In running a fairly concentrated portfolio of 40-50 shares, he seeks financially strong, well-managed, growing businesses with powerful competitive advantages. He looks for four key attributes: financial stability in the form of robust balance sheets; strong management with a track record of maximising long-term returns; potential to generate higher earnings that can be supported or defended by a powerful competitive advantage; and valuation. He is careful to avoid overpaying for growth opportunities, and considers the value of a share both on its own terms and in relation to similar businesses in the market.

Carter’s focus on undervalued growth potential gives the fund a natural bias towards small and medium-sized companies. The portfolio holds companies of all sizes.

Narrative and ratings content all as of January 2020.

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Name
Jupiter Japan Income Fund I Acc
Manager
Jupiter Unit Trust Managers Ltd
Type
Unit Trust
ISIN
GB00B5TGB445
Sector
Japan
Launched
17/09/2012
OCF
0.98 %
Risk Rating
3
3 Year Sharpe
0.65
3 Year Alpha
3.50
Yield
2.3 %
Benchmark
TOPIX TR JPY
The Fund aims to provide income together with the prospect of capital growth in order to provide a return, net of fees, higher than that provided by the TOPIX Index over the long term (at least five years). At least 70% of the Fund is invested in shares of companies based in Japan. Up to 30% of the Fund may be invested in other assets, including shares of companies based anywhere in the world, open-ended funds (including funds managed by Jupiter and its associates), cash and near cash.
Holding %
Toyota Motor Corp 7.09 %
Nippon Telegraph & Telephone Corp 5.25 %
KDDI Corp 5.21 %
Sumitomo Mitsui Financial Group Inc 5.18 %
ORIX Corp 5.04 %
Tokio Marine Holdings Inc 4.46 %
Sony Corp 4.29 %
Takeda Pharmaceutical Co Ltd 3.67 %
Sekisui House Ltd 3.62 %
HAZAMA ANDO Corp 3.51 %
Region %
Japan 100.00 %
Sector %
Financial Services 17.63 %
Industrials 16.51 %
Consumer Cyclical 16.48 %
Technology 14.94 %
Communication Services 11.04 %
Healthcare 9.34 %
Basic materials 7.56 %
Name
Jupiter Unit Trust Managers Ltd
Address
SW1E 6SQ, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Mitesh Patel
Joined 01/01/2020

Mitesh started his career in 2006 as an Equities Analyst at BlackRock Investment Management. He joined Baring Asset Management in 2009 and worked for 7 years as an Investment Manager in Japanese equities. He joined the Japanese equites team at Jupiter in 2016 and became co-manager of the Jupiter Japan funds in January 2020. Mitesh has a BSc in Investment & Financial Risk Management from CASS Business School. He is also a CFA Charterholder.

Dan Carter
Joined 06/30/2016

Dan joined Jupiter in 2008 and is a fund manager specialising in Japanese equities as part of the Global team. He manages the Jupiter Japan Income Fund (Unit Trust) and the Japan Select fund (SICAV). Before joining Jupiter, Dan was a fund manager at Odey Asset Management on the Japanese equities team and before that was at Baillie Gifford & Co, where he was an investment analyst for both the Japanese equities and UK Large-Cap Equities teams. Dan has a degree in Economics and Economic History from Warwick University and is a CFA charterholder.

Data provided by Morningstar.

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