Jupiter Strategic Bond I Acc

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Trading AccountISAJISASIPP

Fund Info

  • Yield History3.05%
  • 3 Year sharpe0.86
  • 3 Year alpha-0.54
  • Distribution Typeaccumulation
  • BenchmarkIA £ Strategic Bond
  • Legal StructureUnit Trust
  • Fund Size (month end)Unit Trust
  • OCF0.73%
  • IA Sector£ Strategic Bond
  • Manager GroupJupiter
  • DomicileUnited Kingdom
  • ISINGB00B4T6SD53

Investment Strategy

The Fund aims to provide income with the prospect of capital growth to provide a return, net of fees, higher than the IA £ Strategic Bond Sector average over the long term (at least five years). At least 70% of the Fund is invested in global fixed interest securities denominated in sterling or hedged back to sterling. Up to 30% of the Fund may be invested in other assets, including shares of companies (which may be based anywhere in the world), open-ended funds (including funds managed by Jupiter and its associates), cash and near cash. The Fund may enter into derivative transactions for investment (i.e. speculative) purposes.

ii Super 60 selected

This Fund is a member of our ii Super 60 rated list

Jupiter Strategic Bond has the freedom to invest across the bond market. Other fund types are restricted to buying a particular variety of bond or those issued in a certain region.

Ariel Bezalel, head of fixed income at Jupiter, has been at the helm of the strategy since its inception in 2008. Bezalel invests in the best opportunities globally, across a range of fixed interest securities including high-yield bonds, investment-grade bonds, government bonds and convertibles. He can also use derivatives to mitigate the risk of falling bond prices. The fund yields 2.9% and pays income quarterly.

Bezalel picks investments based on his view of the global economy, working out how much risk is appropriate to take, and which sectors and countries offer the best opportunities, considering factors such as inflation, interest rates and economic growth. When he is feeling more risk-averse, he typically has more investment-grade bonds in the portfolio.

Since avoiding losses is his top priority, when investing in high-yield bonds he prefers the most senior bonds in a company’s capital structure. These are typically secured on the company’s assets. He also likes companies that are paying down their debts over time, which helps to improve their creditworthiness and pushes their bond prices higher. Given the fund’s flexibility and the way Bezalel invests this may be a good option for lower risk profile investors.

September 2020

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