Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Jupiter Green. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
JGC provides diversified exposure to exciting companies leading the charge to a more sustainable future…
Overview

Jupiter Green (JGC) has shifted its investment focus towards targeting smaller and more innovative companies (see Portfolio), arguably making it a more interesting proposition for all kinds of long-term investors. The new lead manager, Jon Wallace, has been working on the trust since 2014, ensuring a smooth transition when he took the reins in January 2021.

Jon is using JGC’s ability to be nimble (net assets of £63m) by investing at the smaller end of the market cap spectrum to access the most exciting companies developing environmental solutions. Many of these fast-growing and innovative companies are likely too small for most generalist investors or those with larger funds.

Jon has been finding most opportunities this year in the ‘accelerator’ bucket. Accelerators are those companies that have proven and scalable solutions and are gaining market share from established players. As a result, accelerators now represent 60% of the portfolio. Jon commented recently that COP26 illustrates the urgency of scaling up existing technologies so that they can start to have an impact in reducing carbon emissions as soon as possible, which he thinks should be a strong tailwind for the sort of companies he owns.

By investing in companies below the radar of most investors, JGC offers a differentiated proposition. When combined with the manager’s specialist knowledge and experience in this relatively niche area, as well as now having drawn down a modest level of gearing for the first time, we think JGC is well-positioned to benefit from the many changes that the global economy will make over the next decade.

Kepler View

COP26 highlighted the variety of secular growth opportunities resulting from the need to decarbonise the global economy. JGC invests across six themes that reflect the manager’s view of the most attractive opportunities from sustainability. These include the circular economy, clean energy, water and sustainable agriculture, nutrition and health.

The change in the mandate to focus on ‘accelerators’ and ‘innovators’ will mean higher exposure to mid and small-cap companies worldwide. The impact of the change has already been seen in both the portfolio, but also the risk (as measured by volatility) and returns. JGC had a challenging period in the first half of the year, with market sentiment turning against growth stocks. That said, it’s encouraging that Jon kept confidence in his convictions, adding to holdings that had seen share prices fall. This has helped the trust recover strongly over the second half of the year so far.

JGC has traded on an average discount of c. 4% over the past five years. Enthusiasm for the new mandate and sustainability-themed funds has seen the discount narrow, the shares at times trading at a premium. Share issuance has allowed the trust to grow, which is encouraging, although it retains the ability to be nimble. We think JGC should appeal to all sorts of investors in that it provides a differentiated exposure to a high conviction portfolio of innovative and high-growth companies, which together are helping the transformation of the global economy to a more sustainable footing.

bull bear
Differentiated investment proposition makes JGC unique amongst funds and trusts offering a sustainable theme
Smaller and more innovative companies tend to be higher-risk propositions than ‘established leaders’
Long track record and experience of management team
Gearing will exacerbate the downside (as well as enhance the upside)
Discount has narrowed, and further share issuance means liquidity and OCF should continue to improve
Discount could widen, perhaps significantly
Continue to Portfolio

Fund History

22 Jul 2022 Results analysis: Jupiter Green
JGC’s wide discount suggests investors may have oversold after a tough few months for the trust…
30 Mar 2022 You say tomato…
Do it yourself or put it into a global fund and leave it to the experts - our analyst debate the merits of each approach...
17 Dec 2021 Results analysis: Jupiter Green
JGC has experienced some short-term NAV volatility, but the long-term attractions remain…
08 Dec 2021 Fund Analysis
JGC provides diversified exposure to exciting companies leading the charge to a more sustainable future…
24 Nov 2021 Holding back the tears
While the final text of COP26 fell short of what many had hoped for, the writing is on the wall for fossil fuels and, from an investment perspective, the age of sustainability has only just begun…
27 Oct 2021 Gone with the wind
One of our analysts looks at the implications of the shocking rise in energy prices and the opportunities it highlights for investment trusts...
15 Sep 2021 Bargains galore
We review our discounted opportunities portfolio, with one constituent rallying more than 30% in just two months…
10 Jun 2021 Green is good!
2021 will see billions dedicated to sustainable initiatives, which brings with it a host of possible investment opportunities...
19 May 2021 Fund Analysis
JGC’s focus on mid/small caps seems to have been well-timed, and is now regularly issuing shares…
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
04 Mar 2021 Slides and Audio: Jupiter Green
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 03 March...
24 Feb 2021 Dire Straits or Money for Nothing?
With the sector having seen discounts narrow like never before – our analysts debate whether a premium is a price worth paying…
04 Feb 2021 Eurovision 2021
Eight charts to guide investors through Europe...
29 Jan 2021 Flash update: Jupiter Green
Jon Wallace is promoted to lead manager…
16 Dec 2020 My haven’t you grown!
How sustainability has gone from zero to hero in 2020…
15 Dec 2020 Results analysis: Jupiter Green
The team behind the newly revamped Jupiter Green believe the COVID crisis has sharpened the focus on sustainability, creating a multi-decade opportunity for companies in the portfolio…
04 Dec 2020 Slides and Audio: Jupiter Green
Our research team at Kepler Trust Intelligence hosted a 30 minute webinar update with Charlie Thomas, Head of Strategy, Environment & Sustainability at Jupiter Asset Management...
10 Nov 2020 Fund Analysis
JGC is now focussing on mid & small caps, which we see as a positive for its prospects…
View all

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.