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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
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Overview

Jupiter Green (JGC) has a relatively flexible mandate to invest in companies of all sizes which are providing solutions to environmental challenges, such as climate change. This is expected to be an area with strong structural growth trends and JGC aims to capture them through six environmental themes designed to identify the key opportunities. These companies will be at various stages of development, which lead manager, Jon Wallace, defines as innovators, accelerators and established leaders.

Jon assumed full control in January 2021, having worked on the trust since 2014. He is able to invest meaningful positions in smaller companies due to the relatively small size of the trust, being just c. £55m in net assets. This gives him the flexibility to invest globally and across the market cap spectrum, enabling the trust to hold smaller, fast-growing companies which larger or more generalist investors often overlook (see Portfolio).

Market volatility has had an impact on performance in 2022 and JGC has slipped to a wide Discount as investors have rotated away from the growth style of companies in which the trust invests. However, Jon believes that the macroeconomic backdrop has reinforced the drivers for his companies, for example as the world continues to seek better energy efficiency and security. Jon is remaining watchful, though, and has toned down the more nascent names in the portfolio by reducing the so-called ‘innovators’ bucket, and has established a net cash position (see Gearing). This positioning, as well as the nimbleness afforded by the trust’s size, may allow Jon to take advantage should there be a turnaround in market sentiment.

Analyst's View

Energy security has been one of the hot topics of 2022 for politicians and we believe this trust is set to benefit from it, especially through the manager’s ‘Clean energy’ and ‘Green Buildings & Industry’ themes, the latter focussing on energy efficiency (see Portfolio). And yet the trust has marginally underperformed both its closest peer and the wider market in the year, as investors have focussed on the impact of rising interest rates on the growth type of companies held by JGC. To us, there seems to be a disconnect between the market’s short-term reaction to rising interest rates and the underlying long-term drivers of these businesses. This disconnect may offer an attractive entry point for long-term investors.

The opportunity is also reinforced by the wide Discount which JGC is currently trading at, especially compared to its closest peer. Much of this discount came about in a short period in early 2022, showing how quickly sentiment can impact the trust. We believe that this could reverse just as quickly, should macro fears subside and investors start to recognise the benefits to the structural growth story.

JGC has undoubtedly a growth bias which has impacted performance this year. However, we believe that the trust offers a very pure exposure to the long-term growth runways that environmental themes offer. The nimble size of the trust means that it offers investors a very authentic investment vehicle for those looking to benefit from climate change solutions.

Bull

  • Trust is trading at a very wide discount
  • Underlying themes have been strengthened by geopolitical issues
  • Net cash position enables manager to take advantage of weakened valuations

Bear

  • Growth bias could lead to further weak performance if interest rate rises continue
  • Smaller company focus which may mean more economic sensitivity
  • Relatively short track record under new approach
Continue to Portfolio

Fund History

19 Dec 2023 Results analysis: Jupiter Green
Despite challenging market conditions this year, JGC sees a brighter outlook ahead…
26 Jul 2023 Fund Analysis
JGC’s fundamental story continues to show resilience, but the discount remains wide…
13 Jul 2023 Results analysis: Jupiter Green
JGC delivered positive share price returns, despite a very volatile year…
21 Dec 2022 Reasons to be cheerful
We find reasons to be cheery this Christmas in the long-term trends which are going to transform society and generate returns…
08 Dec 2022 Results analysis: Jupiter Green
JGC’s nimbleness may be able to exploit the disconnect between the environmental story and the market volatility...
08 Dec 2022 Fund Analysis
Macro events have boosted JGC’s story, but pulled down valuations leaving a potential opportunity...
04 Oct 2022 How US investment in clean energy could help Jupiter Green
The trust is trading at a wide discount but stands to gain from the Inflation Reduction Act…
21 Sep 2022 Jolly green giant
There could be a solution to economic troubles on the horizon, and one where the UK is a world leader...
22 Jul 2022 The mother of invention (and returns?)
Finding companies that cater to an urgent need is easier than figuring out who the next Bill Gates is going to be…
22 Jul 2022 Results analysis: Jupiter Green
JGC’s wide discount suggests investors may have oversold after a tough few months for the trust…
16 Jun 2022 Have green stocks been over sold?
Jupiter Green is trading at a steep discount, despite many of its holdings continuing to perform well…
18 May 2022 Energy shock: looking at both sides of the coin
Jon Wallace and Noelle Guo say the energy shock faced by consumers now is reminiscent of the 1970s, which may boost usage of existing energy efficient technologies and spawn new ones...
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…
10 Nov 2021 A fair wind
As the world grapples with the challenge of climate change, we examine a fund which aims to generate growth for its shareholders via companies which can deliver a cleaner future…
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…
14 Jul 2021 Building back greener
As governments turn their focus towards the COVID-19 economic recovery, they are increasingly incorporating sustainability goals into their efforts. For sustainable investors, this presents a clear opportunity…
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…
23 Apr 2021 Reuse, recycle and rethink sustainability
Over the last three years, sustainability has gone from being something of an investment trend to an imperative for many investors...
10 Mar 2021 A true original
ESG has become a buzzword in recent years but Jupiter Green, which has forged a successful track record in socially responsible investing since launch in 2006, was into it before it was ‘cool’…
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?
As discounts reach historically narrow levels across the board – our analysts debate whether a premium is a price worth paying…
04 Feb 2021 Eurovision 2021
We highlight potential opportunities within the European investment trust space…
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

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