Jupiter Strategic Bond I Acc

Sterling Bonds

Rated Fund 2013-19. A flexible ‘go anywhere’ fund

Jupiter Strategic Bond was highly commended in the Best Sterling Bond Fund category of Money Observer’s 2017 fund awards. Its performance has waned recently, but its remit to avoid losses as a top priority makes this a decent low-risk option in the sector.

Its veteran manager, Ariel Bezalel, says a defensive strategy remains prudent in a market that is vulnerable to unforeseen shocks, rising interest rates and draining liquidity. Our investment committee tends to agree.

This ‘go anywhere’ fund seeks to invest in the best opportunities globally, across a range of fixed-interest securities, including high-yield bonds, investment-grade bonds, government bonds and convertibles. It can use derivatives to mitigate the risk of falling bond prices. It yields 3.6%, paid quarterly.

Bezalel, head of fixed income at Jupiter, has been at the helm of the strategy since its inception in 2008. He 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 his team is feeling more risk-averse, it will typically have more investment-grade bonds in the portfolio. At the end of 2018, 36.5% was in AAA-rated bonds – the highest quality.

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 the company’s assets. He also likes companies that are paying down their debts.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Jupiter Strategic Bond I Acc
Manager
Jupiter Unit Trust Managers Ltd
Type
Unit Trust
ISIN
GB00B4T6SD53
Sector
£ Strategic Bond
Launched
19/09/2011
OCF
0.74 %
Risk Rating
3
3 Year Sharpe
1.68
3 Year Alpha
3.33
Yield
3.9 %
Benchmark
Markit iBoxx GBP NonGilts TR
To attain the objective by seeking out the best opportunities within the fixed interest universe globally. The Fund invests in higher yielding assets including high yield bonds, investment grade bonds, government bonds, preference shares, convertible bonds and other bonds. The Fund may invest in derivatives and forward transactions for investment purposes. The Manager may also enter into derivative transactions for the purpose of efficient management of the portfolio (including, but not limited to, forward currency transactions to hedge exposure in Euro denominated bonds back into sterling).
Holding %
Icee: (Itraxx.Xo.30.V2) 12/20/2023 6.31 %
United States Treasury Bonds 3% 5.65 %
Australia (Commonwealth of) 3.25% 5.20 %
United States Treasury Notes 2.25% 4.34 %
Australia (Commonwealth of) 3.75% 3.92 %
United States Treasury Notes 2.75% 3.60 %
United States Treasury Notes 2% 3.09 %
United States Treasury Bonds 2.25% 3.01 %
Cds: (Cdx.Na.Hy.31.V1) 12/20/2023 2.40 %
Barclays Bank plc 14% 1.95 %
Region %
United Kingdom 100.00 %
Sector %
Financial Services 100.00 %
Name
Jupiter Unit Trust Managers Ltd
Address
SW1E 6SQ, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

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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