- Stuart Cox became the fund’s manager in July 2018
- He’s shifted the fund’s focus from dividend-paying companies to ones with growth potential
- Performance since then has been good, but it’s still too early to judge
Jupiter Global Managed has seen a lot of changes recently. Stuart Cox took over the fund in July 2018. He’d worked with the previous manager for several years, and has kept the spirit of the fund broadly similar – investing in large, high-quality companies from around the world.
What Cox looks for in companies is different though. He seeks out companies for their long-term growth potential. All the companies in the portfolio must either be global leaders, or have the potential to become one. Previously the fund focused more on companies that could grow their dividends year after year.
The manager also invests in a smaller number of companies. This means each has the potential to have a meaningful impact on the fund’s performance, but it’s a higher-risk strategy.
We like Cox’s high-conviction approach and think he’s a sensible manager. His experience managing a global fund is short though. We prefer managers with longer track records who’ve shown they can deliver strong performance over many years, including both rising and falling markets. That’s why Jupiter Global Managed isn’t part of the Wealth 50 list of our favourite funds. But we will be keeping our eye on Cox as his record builds.
How’s the fund performed?
Before Cox took over the fund it had fallen behind the global benchmark for several years. Much of the recent global stock market gains were driven by technology companies. As many of these pay low or no dividends, the fund invested in few of them so missed out on their growth.
By shifting the fund’s focus to companies with long-term growth potential, Cox has grown the fund more than the FTSE World index. That’s no guarantee of future returns.
Cox only took over the fund around a year ago though. This is a very short period of time over which to judge performance. We think investment performance should be looked at over a minimum of 5 years.
|Annual percentage growth|
| Jul 14 -
| Jul 15 -
| Jul 16 -
| Jul 17 -
| Jul 18 -
|Jupiter Global Managed||10.3%||14.4%||14.8%||8.4%||18.5%|
Past performance is not a guide to the future. Source: Lipper IM to 31/07/2019
How’s the portfolio changed?
As Cox invests differently to the previous manager, there’s been a lot of change in the portfolio over the past year. Cox has replaced many companies that were previously held in the fund. This isn’t likely to happen as much in future years though. The manager expects to stay invested in most companies for around 2 to 3 years.
Around two-thirds of the fund’s companies are based in North America. That’s not because of Cox’s view on the region, rather that’s where he’s found the most opportunities. Outside North America he likes the look of many Asian technology companies. Some of the companies he invests in are from higher-risk emerging markets.
Financial companies make up the biggest part of the fund from a sector point of view. In December 2018 shares in credit card company Visa were valued lower than Cox had ever seen so he took the opportunity to invest. Since then they’ve risen in value to the point where Cox has decided to sell some and take profits.
He’s halved the fund’s investments in healthcare companies. Cox thinks it could be a challenging year ahead for the sector with US elections coming up. That’s because the healthcare industry is often a target for politicians seeking to score points with voters. As many of the fund’s healthcare companies had done well recently he was able to sell many of them for a profit.
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