Jupiter Strategic Bond I Acc

Sterling Bonds

Rated Fund 2013-20. A conservative and flexible fund choice      

Jupiter Strategic Bond was highly commended in the Best Sterling Bond Fund category of Money Observer's 2017 fund awards. It outperformed its peer group over the short, medium and long term. Often this was only marginally, but this is a good result for a fund whose remit is to avoid losses. This emphasis makes it a decent low-risk option.

Ariel Bezalel, head of fixed income at Jupiter, has been at the helm since 2008. He says a defensive strategy remains prudent in a market vulnerable to unforeseen shocks. He can invest in the best opportunities globally, across a range of fixed-interest securities, including high-yield bonds, investment-grade bonds, government bonds and convertibles.

He can use derivatives to mitigate the risk of falling bond prices. The fund yields 3% and pays income quarterly. Bezalel picks investments based on his view of the global economy. He works out how much risk is appropriate to take and which sectors and countries offer the best opportunities, taking into account factors such as inflation, interest rates and economic growth. When he is feeling more risk-averse, he typically has more investment-grade bonds in the portfolio. At the end of 2019, 36% was in AAA-rated bonds. Since avoiding losses is his top priority, when investing in high-yield bonds, he prefers the most senior bonds in a company's capital structure. These are typically secured on company assets. He also likes firms that are paying down their debts, which helps improve their creditworthiness and pushes their bond prices higher.

Narrative and ratings content all as of January 2020.

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Jupiter Strategic Bond I Acc
Jupiter Unit Trust Managers Ltd
Unit Trust
£ Strategic Bond
0.73 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3.1 %
IA £ Strategic Bond
To provide income with the prospect of capital growth to provide a return, net of fees, higher than the IA £ Strategic Bond Sector average over the long term (at least five years). At least 70% of the fund is invested in global fixed interest securities denominated in sterling or hedged back to sterling. Up to 30% of the fund may be invested in other assets, including shares of companies (which may be based anywhere in the world), open-ended funds (including funds managed by Jupiter and its associates), cash and near cash. The fund may also enter into derivative transactions for investment (i.e. speculative) purposes.
Holding %
Australia (Commonwealth of) 3.25% 4.92 %
United States Treasury Notes 2.25% 3.96 %
Australia (Commonwealth of) 3.75% 3.62 %
United States Treasury Bonds 2.25% 3.24 %
United States Treasury Notes 2.75% 3.22 %
United States Treasury Notes 2% 2.86 %
United States Treasury Bonds 3% 2.15 %
United States Treasury Notes 1.62% 2.08 %
Australia (Commonwealth of) 3% 1.77 %
Virgin Media Receivables Financing I DAC 5.5% 1.69 %
Region %
United Kingdom 100.00 %
Sector %
Financial Services 100.00 %
Jupiter Unit Trust Managers Ltd
SW1E 6SQ, London, United Kingdom
Legal Structure
Unit Trust


Ariel Bezalel
Joined 06/02/2008

Ariel Bezalel joined Jupiter in 1998 and is currently Fund Manager for the Fixed Interest Team with responsibility for co-managing Jupiter Monthly Income Fund (Unit Trust – fixed interest component), Jupiter High Income Fund (Unit Trust – fixed interest component) and Jupiter Global Managed Fund (Unit Trust – fixed interest component). He has a BA (Hons) Economics from Middlesex University.

Data provided by Morningstar.

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