A new way to invest across the world
Our latest suggestion for global investment, run by a proven manager.
Important - The value of investments can fall as well as rise, so you could get back less than you invest, especially over the short term. The information shown is not personal advice, if you are unsure of the suitability of an investment for your circumstances please contact us for personal advice.
Why invest in Jupiter Global Value Equity?
- A new way to invest in value opportunities across the world
- A small and agile fund, with a focus on individual companies
- A fund manager with a superb 17-year track record
- Exclusively low ongoing fund charge for HL clients
Jupiter Global Value Equity
We’re always on the lookout for the next investment opportunity, so we can help you make more of your money.
Our focus is on finding talented fund managers who have the potential to outperform their peers. We think we’ve found one in Jupiter’s Ben Whitmore.
You might know him as manager of Jupiter’s Income Fund. He’s a value investor, looking for companies which are out of favour. This means he can buy their shares below what he thinks is their true worth.
These companies might've been through a tough time, but have the potential to turn their fortunes around.
To be different is rarely comfortable though. There will be long periods when a lot of people think you’re wrong. But history has shown that the greatest long-term gains are often made by going against the herd.
The global opportunity
Ben Whitmore‘s UK track record is superb.
Now he’s extending his focus with the Jupiter Global Value Equity Fund, which he’ll co-manage alongside Dermot Murphy. We think it has great potential – though it’ll perform differently from his previous ventures.
They’ll invest in relatively few companies, so each can contribute significantly to performance, though this also increases risk. So does the flexibility to invest in smaller companies and emerging markets.
As you can see from the chart below, Ben Whitmore has proved his skill over almost two decades. Since 2001 he’s grown investors’ money by more than 370%, turning £10,000 invested into over £47,000. As ever though, this isn’t a guide to the future and investors should remember this is a new venture for him.
Ben Whitmore - track record
Past performance isn’t a guide to the future. Source: HL to 30/04/2018
Opinion in investing often polarises – and this can create opportunity.
Over the past few years the market has favoured companies with obvious growth potential. As such the ‘turnaround’ companies Ben Whitmore looks for have been left behind.
Recently, there have been some signs of this trend reversing. If we’ve reached a turning point, this fund could be well-placed to capitalise. As ever though, there are no guarantees and like all investments its value can fall as well as rise, so you could get back less than you put in.
If you’re looking for a way to invest in undervalued companies right across the world, with a proven manager at the helm, we think it’s well worth considering.
This article isn’t personal advice. So if you’re not sure an investment is right for you, you should seek advice.
The fund launched in March 2018 so past performance isn’t available.
I'm in Jupiter's office joined by Ben Whitmore of the Jupiter Global Value Fund. Hi Ben
Can we maybe start with the name of the fund I think most people can work out what the global bit means but what does value mean to you?
Value can be thought of almost as the opposite of growth, the companies we're looking at tend to have a few issues they're not growing or they might be growing slowly there might be difficulties and consequently the stock market is very cautious on them which leads to them being very lowly valued in the stock market.
So does lowly valued just mean other investors aren't interested in buying that company at the time?
Primarily. The general consensus is that people tend to shy away from companies with issues, where they're not growing so fast or where they're dealing with an economic downturn, or where things aren't going so well. But the process of that means that those shares can often be very very lowly valued in the stock market and hence a good hunting ground for future investment returns
So you've used this investment approach for a long time in the UK very successfully what makes you think that you can take this approach and use it on a global stage?
So value as style of investing has been proven to work over long periods of time in all major markets around the world. It doesn't work every year but over long periods of time it does work. You get a premium for investing in lowly valued shares, so we fundamentally see the evidence. And then secondly we've been investing overseas for our UK fund since 2011 so we've got that shorter time period of seeing the benefits of that in action as well.
And obviously being able to invest across the world means you can invest in any one of hundreds of thousands of companies. Does that mean the fund will have a lot of companies in it?
Well what we tend to think is that you only ever have so many good ideas. So the fund is likely to have 35-45 companies and what we want to be is as fussy as possible. The companies we’re investing in are lowly valued with good balance sheets and where we think we've got a very out of favour business - but one only temporarily out of favour.
And as I said you've done this there are a long time in the UK why is now a good time to to do that globally?
So we think now is a good time for investors because value as a style has had three very poor ten-year returns in the last hundred years. The first one was in the Great Depression of America in the 30s, the second one was the tech bubble in the late 1990s, and the third one is now, since the great financial crisis or recession of a 2008/09. Financial historians haven't agreed why that's been the case but relative to growth investing, value investing has done very poorly. We think if the evidence is there to be believed the next 10 years should be much better than the last 10 years.
And can you give me an example of a company that fits this value approach that you take?
So one example might be Ericsson. It's the world leader in the provision of mobile telephone equipment to companies like Verizon or Vodafone and the company made a series of missteps in the last five years. They've signed up poor contracts with their customers, they've diversified into areas which are outside their core competency, and that has led to series of problems - profits falling and the chairman and chief executive leaving - but notwithstanding that, the balance sheet is very strong, they've got a lot of cash the business is the world leading market franchise and what we believe is that if the business is run sensibly you should make a good investment return from this point because the people are so nervous about that company.
As a global fund you can obviously invest wherever you like but are there any particular areas or countries that you like at the moment?
We try to be led by where we see value. One of those examples at the moment is Japan. There are a lot of companies there where not only are their balance sheets very strong but the price you have to pay for the companies is very low - they're in stark contrast to some companies in the Western world which have got a lot of borrowings. We're always reading about companies that have borrowed too much money, it's the reverse in Japan the balance sheets are very strong and the valuations are very low, so that is an attractive area for us.
And any areas in particular that you don't find as attractive?
So the one broad area we don't find as attractive is America. The American economy has been very strong compared to a lot of other economies and the valuations are higher than average. So we do have some investments in America, because it's a very broad market there are always some businesses out of favour, but in general that would be an area we're not so keen on.
Thank you very much Ben
Thank you Heather