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Investment Times

Do something different

| 19 September 2017 | A A A
Do something different

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

In uncertain times it’s easy to be pessimistic. But letting uncertainty deter you from investing could prove a costly mistake.

At present, Brexit negotiations are in full swing, but it will be years before we can assess the true economic impact. Investors should remember that good companies don’t stop being good companies because of political machinations. The UK is home to thousands of firms making products consumers want and need, regardless of what’s going on in the wider economy.

Furthermore, companies that survive turbulent times often come out more efficient and stronger than ever. Successful management teams adapt and innovate when faced with a more challenging environment. All this presents opportunities for investors with the skill to unearth these survivors.

How to approach uncertainty

In uncertain times, you can give into the temptation to sell and watch from the sidelines. But with interest rates below inflation, holding cash is guaranteed to erode the spending power of your savings – though your capital won’t fall in nominal terms. Alternatively, if you are willing to see past the uncertainty, there are plenty of large, high-quality companies able to survive in tougher conditions.

However, there is another approach that can yield even better results – seeking to profit from overlooked opportunities. Ben Whitmore, of the Jupiter Income Trust, excels at identifying these types of businesses. As a value investor and natural contrarian, he looks for businesses with healthy balance sheets, disciplined management, and sound franchises, which have fallen on hard times and are trading on depressed valuations, but where he sees recovery potential.

Why invest in this fund?

  • Combines an attractive level of income with the potential for capital growth
  • Ben Whitmore has a superb track record of identifying opportunities others have missed
  • Yield of 3.7% (not a reliable indicator of future income)

Ben Whitmore - career track record

Past performance is not a guide to future returns *Source: HL, Aug 01 - Aug 17

Annual Percentage Growth
Aug 12 -
Aug 13
Aug 13 -
Aug 14
Aug 14 -
Aug 15
Aug 15 -
Aug 16
Aug 16 -
Aug 17
Jupiter Income 16.4 9.7 -2.0 19.9 8.9
FTSE All-Share 18.9 10.3 -2.3 11.7 14.3

Past performance is not a guide to future returns. Lipper IM to 31/08/17

Learn more about Jupiter Income, including charges and how to invest

Jupiter Income Key Investor Information Document

A recent example is outsourcing services firm Capita. The business issued profit warnings in September and December last year. Since then, the CEO has announced his departure, while the new chairman has reduced debt and given the finance director three months to turn things around. Ben Whitmore believes that by tackling its problems head-on, Capita can exceed the market’s low expectations. The share price has risen almost 50% since its December low, and the investment has already contributed positively to the fund’s performance.

Ben Whitmore has had a long and successful career. His style means he naturally favours dividend-paying companies, and he has successfully applied his approach to the management of the Jupiter Income Trust since 2013. Over his career, Ben Whitmore has generated returns of 346.1%, compared with 167.4% for the comparable index*. Remember past performance is not a guide to future returns. Like all investments the fund can fall as well as rise in value so you could get back less than you invest.

To beat the market, you must invest differently from your peers. Ben Whitmore’s contrarian, value-orientated approach offers something different from most UK equity income funds. We believe it’s a great investment in its own right, and also an excellent way to diversify an existing income portfolio. For those looking to invest in the UK, we think entrusting your capital to Ben Whitmore will pay dividends over the long term.

Learn more about Jupiter Income, including charges and how to invest

Jupiter Income Key Investor Information Document

Prefer to invest overseas? – Dominic Rowles looks at the Schroder Small Cap Discovery Fund

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.