Jupiter UK Income Class U1 - Accumulation (GBP)

Gosden and Morrison have built a strong track record. During their time managing the GAM UK Equity Income fund they outperformed the FTSE All Share and the average fund in the IA UK Equity Income sector. The Jupiter UK Income fund has also outperformed since they took over in April 2024. As always past performance isn’t a guide to future returns.

While Jupiter UK Income is a different fund, it follows the same investment philosophy and a similar process to the GAM fund. Differences in the way the fund’s invested and changing market conditions mean performance won’t be identical, but both funds take a value-focused approach and have exposure to medium and smaller-sized companies, so they can be influenced by similar market drivers.

Performance will vary at times depending on market conditions and investor sentiment towards different types of companies. In particular, periods when value investing or medium and smaller-sized companies are out of favour could affect returns.

Our analysis suggests that stock selection has been the driver of long-term returns. This is positive as it suggests the managers’ company analysis has added value, rather than performance being dominated by investing in the right sectors

Over the long term the managers have delivered a yield above the FTSE All-Share and have grown income payments over time. Income is not guaranteed though, and yields can rise and fall. Please note the fund takes charges from capital, which could boost the income, but reduces the potential for capital growth.

The fund aims to pay an income and grow your investment by investing in UK dividend-paying companies. The managers look to invest in companies whose share prices they believe don’t fully reflect their long-term prospects – a style known as value investing. While some UK equity income funds mainly invest in larger companies, Gosden and Morrison also have the flexibility to invest in medium-sized and smaller companies. This can give investors a broader range of income opportunities than funds focused mainly on the largest dividend-paying companies, though investing in smaller companies increases risk.

The managers take a straightforward approach to income investing. They look for companies they believe are undervalued, but which can generate the cash needed to pay dividends, reinvest in the business and support future growth. We like the simplicity of the process. They’re not trying to do anything overly complicated, but instead focus on whether a company can generate sustainable cash flows and return some of that cash to shareholders over time.