The FSA Spy market buzz – 13 December 2024
M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.
HEAD-TO-HEAD: Jupiter versus Syz
FSA compares two European equity funds: the Jupiter Growth Fund and the Oyster European Selection Fund.
Investment process
Both the Jupiter and Syz funds invest in the European (including UK) equity markets and look for quality companies with a strong competitive edge and solid balance sheets. However, the products differ in terms of their investment style, according to McDermott.
The Jupiter fund has a growth bias, while the Syz fund is more valuation conscious and prefers companies that could be turnaround stories.
“Like the Jupiter fund, the Syz product likes companies that do one thing and do it well, but their share price may reflect short-term pressures. The Syz fund’s manager is actively looking for companies that are currently struggling but are expected to turn around,” McDermott explained.
Growth and value measures
|
Jupiter |
Syz |
|
| Price-to-earnings |
19.24 |
12.8 |
| Price-to-book |
3.51 |
1.65 |
| Dividend Yield% |
2.12 |
4.06 |
| Long-term earnings % |
11.65 |
9.51 |
| Sales growth % |
6.67 |
1 |
| Cash-flow growth % |
-0.14 |
-7.41 |
Source: Morningstar Direct
The differences in styles have led to different country bets, he added. For example, the Jupiter fund’s three largest allocations are in Germany, the UK and France, while the Syz fund’s top three countries are France, the UK and the Netherlands.
Country allocation
|
Jupiter |
Syz |
||
| Country |
% |
Country |
% |
| Germany |
29.4 |
France |
21.5 |
| UK |
19.1 |
UK |
17.7 |
| France |
14 |
Netherlands |
13.6 |
| Denmark |
9.3 |
Germany |
9.9 |
| Netherlands |
8.8 |
Denmark |
6.5 |
| Spain |
8.6 |
Switzerland |
5.9 |
| Norway |
1.6 |
Italy |
3.5 |
| Switzerland |
0.9 |
Sweden |
3.2 |
| Belgium |
0.8 |
Ireland |
3 |
| Sweden |
0.8 |
Cash |
15.2 |
| Italy |
0.6 |
||
Source: Fund factsheets
Sector allocations also reflect the differing investment styles
Sector allocation
| Equity sectors |
Jupiter |
Syz |
| Defensive |
26.61 |
10.41 |
| Consumer defensive |
3.8 |
6.68 |
| Healthcare |
22.81 |
3.73 |
| Utilities |
– |
– |
| Sensitive |
27.97 |
42.55 |
| Communication services |
1.98 |
– |
| Energy |
– |
5.36 |
| Industrials |
7.39 |
22.58 |
| Technology |
18.6 |
14.6 |
| Cyclical |
45.43 |
47.05 |
| Basic materials |
0.95 |
– |
| Consumer cyclical |
19.14 |
19.28 |
| Financial services |
25.34 |
21.33 |
Source: Morningstar Direct
Related Stories
Promoted Content
-
Unmasking the dividend opportunity
-
China bonds: plugging the yield gap
-
Driving decarbonisation: how to access new forms of alpha
-
Investors turn to real estate for alternative income
-
Exciting opportunities in AI & Robotics outside of traditional tech
-
Healthcare’s innovation shifts into high gear
-
Fixed income – making ground in ESG as ETFs see rapid growth in AUM
-
Step up your portfolio by doubling down on sectors set for long-term growth
-
Dynamism is the name of the game for this global macro strategy
-
Tap into Japan’s post-pandemic growth trends
