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Jupiter UK Growth Class I - Accumulation (GBP)

Sell:251.16p Buy:251.16p Change: 3.32p (1.31%)
Prices as at 14 August 2020
Change: 3.32p (1.31%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 14 August 2020
Change: 3.32p (1.31%)
Prices as at 14 August 2020
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

Steve Davies combines his views on the economic environment with an analysis of company prospects to construct this UK-focused portfolio.

He seeks a combination of high-quality companies expected to grow strongly for years to come, and companies that are unloved by other investors, but where a reversal in fortunes could be on the horizon.

The manager has shown some ability to perform well in the past by focusing on the prospects for individual companies and investing in a small selection of those he believes have the best prospects.

However, the fund's performance has been inconsistent over the past few years. We believe this is because the manager deviated from his tried-and-tested approach, placing too much emphasis on positioning the fund according to his broader economic and political views, and not enough on selecting companies with the brightest futures.

Furthermore, the fund is priced at a significant premium to other funds in the sector that we feel have better long-term prospects.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

Steve Davies produced strong returns earlier in his career but his performance has been mixed over the past few years.

The performance chart initially shows Steve Davies' tenure as deputy manager of the Jupiter UK Growth Fund, over which time it performed similarly to the benchmark. He assumed responsibility of the Jupiter Undervalued Assets Fund in 2012, which performed well due to the manager's strong stock-picking ability, according to our analysis.

He was appointed lead manager of the UK Growth Fund in 2015. He initially produced strong returns, although his ability to consistently pick stocks that perform well regardless of what sector they are in has deteriorated, according to our analysis, and the fund's performance has been mixed. Please remember past performance is not a guide to future returns.

Investment Philosophy

Steve Davies is naturally contrarian. He aims to invest in companies he feels have good growth prospects, but which other investors may have overlooked.

The manager invests in a small number of companies which means each investment can have a significant impact on returns, although this is a higher-risk approach. He meets with directors, chairmen and other senior managers to gain additional insights and to ensure shareholders' interests are being looked after.

Process and Portfolio Construction

Jupiter's UK fund management team share ideas, although Steve Davies makes the final decision over which companies make it into the portfolio.

The manager tends to focus on two types of company:

Growth opportunities: companies that are capable of generating an above-average return over the long term, which he can buy at an attractive share price.

Turnaround opportunities (recovery stocks): companies that are unloved and overlooked by other investors, but where there is potential for a reversal in fortunes. The manager attempts to identify a catalyst for change and improvement in the business, such as restructuring or a change of management.

The result is a concentrated portfolio of around 30 - 40 investments. This enables each holding to make a significant impact on performance but this is a higher-risk strategy. The manager makes use of some of the fund's flexibility to invest up to 20% in overseas companies. He can also invest in higher-risk smaller companies although these will generally account for less than 10% of the portfolio.

Before making an investment, Steve Davies considers what he believes could be the potential future share price for each company. If the forecasted share price is significantly above the current price, he is likely to consider the company an attractive investment. When the share price reaches its forecasted level, the manager will sell shares unless he believes the company is capable of further growth.

question mark Manager Track Record Based on HL Quantitative Research

  • Jupiter UK Growth
  • Jupiter Undervalued Assets Acc
  • FTSE All-Share TR

Fund Track Record

14/08/15 to 14/08/16 14/08/16 to 14/08/17 14/08/17 to 14/08/18 14/08/18 to 14/08/19 14/08/19 to 14/08/20
Annual return -12.03% 16.73% 2.70% -14.87% -23.83%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Launched in 1985 as a specialist boutique, Jupiter has grown to be one of the UK's most successful and respected investment management groups. Jupiter currently manages assets spread across a range of UK and offshore mutual funds, multi-manager products, hedge funds, institutional mandates and investment companies. Jupiter has gained a reputation for achieving outperformance across a broad variety of portfolios specialising in different markets, including UK equities, Europe and bonds.

Information about the fund

Fund manager biography

manager photo
Manager Name: Steve Davies
Manager start date: 31 January 2013
Manager located in: TBC

Steve joined Jupiter in 2007. He currently manages the Jupiter UK Growth Fund (Unit Trust). Prior to joining Jupiter, Steve was head of the retail research team at Numis Securities. Steve also worked as a Retail Analyst and Senior Retail Analyst, respectively, for Retail Intelligence before moving to PricewaterhouseCoopers where he was appointed Assistant Director of the Retail and Branded Goods team. Steve gained a degree in PPE from Oxford University.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account