HEAD-TO-HEAD: JGF-Jupiter versus Pictet

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Source: FE Fundinfo. Three-years cumulative returns in US dollars.

Performance

The JGF Jupiter Global Ecology Growth fund has fallen “a disappointing” 2.06% in US dollar terms during the past three years and has also generated a negative five-year return,” said McDermott.

Its strongest calendar year performances were in 2017 (24.42%) and 2019 (30.33%), according to FE Fundinfo data, although in each of those years returns failed to match its benchmark FTSE ET100 Index.

Its worst year was 2018, when it dropped 19.78%, and it is already down 15.05% so far this year.

“The Jupiter fund has a mid-cap focus, and a blended growth and value investment style”, which makes it vulnerable if it gets the mixture wrong when market sentiment favours one style over the other, according to McDermott.

“Nevertheless, good stock-picking should mitigate risk and volatility,” he said.

Turning to the Pictet fund, which was launched in 2010, McDermott noted it has been “a solid performer”.

It has posted a 24.21% three-cumulative return, outperforming its MSCI World index benchmark (9.29%) and its international equity fund peers (6.31%).

Most of those returns were garnered in 2017 and 2019, when the fund’s value grew by 39.9% and 33% respectively, but “like many funds, it suffered in the final quarter of 2018, causing a full-calendar year loss of 17.1%, according to McDermott.

“The Pictet fund has a strong bias in favour of secular growth with a mid-cap bias, but valuations remain important, so it is more a case of growth at a reasonable price,” said McDermott.

It also tends to have a large weighting to US equities, which has helped performance relative to the Jupiter fund, he added.

“Both funds have a natural aversion to companies in oil & gas, mining and most chemicals and heavy industry sectors, so they will out- or under-perform at times when these sectors are strong or weak,” said McDermott.

“But, again, good stock selection can help make up for missing out on sectors that are enjoying short-term popularity.”

Discrete calendar year performance

Source: FE Fundinfo. Annual returns in US dollars.

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