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Join us virtually on 12 May 2022 at the Investment Forum Philippines
Company profile
Jupiter Asset Management is a specialist, high conviction, active asset manager. We exist to help our clients achieve their long-term investment objectives. From our origins in 1985, Jupiter now offers a range of actively managed strategies available to UK and international clients including equities, fixed income, multi-asset and alternatives. Independence of thought and individual accountability define us. Our fund managers follow their convictions and seek those investment opportunities that they believe will ensure the best outcome for our clients. They do this through fundamental analysis and research, a clear investment process and risk management framework, with a focus on good stewardship.
Sales contacts
Speaker
Luca Evangelisti
Head of credit research and fund manager, Fixed Income, Jupiter Asset Management
Luca is Head of credit research and a fund manager in the Fixed Income team. He is also manager of a Financials sleeve in the Multi-Asset team. He joined Jupiter in January 2013. Before joining Jupiter, Luca worked at Moody’s Investors Service as an associate credit analyst. Prior to this, he worked at Goldman Sachs as a financial analyst on the Southern European team. He began his investment career in 2008.
Luca has a Bachelor’s degree in Business Management and a Master’s degree in International Corporate Finance.
3:35pm – CoCos: Balancing risks and returns during market volatility
High inflation and rising interest rates mean that investors need to work harder to find attractive real returns, especially during periods of market volatility. Contingent convertible bonds (CoCos) offer appealing potential returns with diversification and relatively low risks. Luca Evangelisti, Portfolio Manager for the Jupiter Financials Contingent Capital Fund, will explain how CoCos has the potential to offer investors higher yields with lower volatility and lower risk than European bank equities and HY corporates. CoCos are also less sensitive to rising rates due to their callable structure with coupon reset at call date. They offer exposure to an improved European financial sector in a growing and liquid market with many investment-grade issuers — including some of the region’s largest banks and insurers.
Strategy profile
The Jupiter Financials Contingent Capital Fund aims to generate a total return through a combination of income and capital growth. To achieve this, it uses fixed and variable rate debt securities issued by financial institutions, such as insurers and banks. The fund combines a long-term value-driven approach to investing, with a robust, structured and repeatable five-stage process that aims to select the highest quality and best value issuers. Through detailed fundamental analysis and asset quality stress testing, the manager seeks to calculate whether issuers will have sufficient capital and reserves in the future to pay coupons.
Factsheet
Terms and Legal notices:
The securities described in this webpage is being offered or sold as an exempt transaction pursuant to Subsection 10.1(l) of the Securities Regulation Code of the Philippines (SRC). Accordingly, the securities have not been registered with the Securities and Exchange Commission of the Philippines under the SRC. Any future offer or sale thereof is subject to registration requirements under the SRC unless such offer or sale qualifies as an exempt transaction.
This webpage provides information relating to Jupiter Financials Contingent Capital Fund (the “Fund”), which is a sub-fund of Jupiter Asset Management Series plc. The net asset value of the Fund may have high volatility due to the nature of the asset class invested. Your attention is drawn to the stated investment policy which is set out in the Fund’s prospectus.
The value of your investment and the income from it can go down as well as up, it may be affected by exchange rate variations, and you may not get back the amount invested. Past performance is no indication of current or future performance. Investment involves risks.
No information in this webpage should be interpreted as investment advice. You are advised to exercise caution. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. This webpage is for information only and is not an offer to sell or an invitation to buy. In particular, it does not constitute an offer or solicitation in any jurisdiction where it is unlawful or where the person making the offer or solicitation is not qualified to do so or the recipient may not lawfully receive any such offer or solicitation. Any holdings and stock examples are used for illustrative purposes only and should not be viewed as investment advice. The views expressed are those of the writer/presenter at the time of preparation and may change in the future. It is the responsibility of any person in possession of this document to inform themselves, and to observe, all applicable laws and regulations of relevant jurisdictions. The information and any opinions contained herein have been obtained from or are based on sources which are believed to be reliable, but the accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss from this information.
- Investment risk – there is no guarantee that the Fund will achieve its objective. A capital loss of some or all of the amount invested may occur.
- Strategy risk – investments in Contingent Convertible bonds may result in material losses to the Fund based on certain trigger events. The existence of these trigger events creates a different type of risk from traditional bonds and may more likely result in a partial or total loss of value or alternatively they may be converted into shares of the issuing company which may also have suffered a loss in value.
- Credit risk – the issuer of a bond or a similar investment within the Fund may not pay income or repay capital to the Fund when due. Bonds which are rated below investment grade are considered to have a higher risk exposure with respect to meeting their payment obligations.
- Interest rate risk – investments in bonds are affected by interest rates and inflation trends which may affect the value of the Fund.
- Liquidity risk – some investments may become hard to value or sell at a desired time and price. In extreme circumstances this may affect the Fund’s ability to meet redemption requests upon demand.
- Derivative risk – the Fund uses derivatives to generate returns and/or to reduce costs and the overall risk of the Fund. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment. Derivatives also involve counterparty risk where the institutions acting as counterparty to derivatives may not meet their contractual obligations.
- Currency risk – the Fund can be exposed to different currencies and may use techniques to try to reduce the effects of changes in the exchange rate between the currency of the underlying investments and the base currency of the Fund. These techniques may not eliminate all the currency risk. The value of your shares may rise and fall as a result of exchange rate movements.
- Capital erosion risk – the Fund takes its charges from the capital of the Fund. Investors should be aware that there is potential for capital erosion if insufficient capital growth is achieved by the Fund to cover the charges. Capital erosion may have the effect of reducing the level of income generated.
For a more detailed explanation of risks, please refer to the “Risk Factors” section of the prospectus.
