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Principally a global long / short equity mandate targeting 6% pa return after fees. The bias to UK equity reflects the manager's experience and knowledge. Typical gross exposure is in a range of 70-125%, net exposure up to +25%, these figures will depending on idea generation and appetite for risk. The portfolio construction is generally bottom up driven, themes may also be evident. The manager has a distinct investment style, which may at times be sensitive to the prevailing investment regime. Investors should be aware that Targeted Absolute Return funds do not guarantee a positive return and you could get back less than you invested, much like any other investment. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products.
|Sector||Targeted Absolute Return|
|Dividends paid||Acc units only|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.63%|
|Ongoing charges figure||0.86%|
No performance fee
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
James Clunie took over management of the fund in September 2013, having previously experienced success managing the SWIP UK Flexible Strategy fund, a long short equity mandate. Unusually for an absolute return fund it has no performance fee. Investors should note the fund manager has a specific investment style which may at times be challenged by the prevailing market backdrop.
|High yield bonds||0|
Stock selection is predominantly bottom up, although the manager retains an awareness of the macro backdrop. The manager will hold traditional long positions – buying shares he expects to rise in value – as well as short positions – selling companies he does not own in order to benefit from an expected fall in price. Net market exposure for the aggregate portfolio is typically no more than 25%, with an overall beta to equity markets of c.20% . Stock ideas may be drawn from quantitative screens as well as internal and external investment sources. The portfolio is built around a combination of core and more tactical positions. The style of the long book is generally value / quality, the short book consisting of high valued growth stocks which might be prone to disappointment. The manager places a high emphasis on managing risk in his short book, in particular he will look to identify catalysts before entering potential shorts, whilst being aware of risk warnings that will lead him to close existing short positions. The manager expects drawdowns to be approximately a third of that experienced by recognised global equity indices. Generally the manager will not use ETFs on his short book unless driven to do so by the macro picture.
|Fund data updated on||20/09/18|
|High yield bonds||0|
As at: 31/07/2018
3.3028%Etfs Physical Gold Gbp
2.1898%Burford Capital Ltd
1.5456%Ig Group Hldgs
1.2534%Bhp Billiton Plc
1.2355%Royal Dutch Shell
|Oil & Gas||8%|
Typically 50 long positions and 20 short positions. Predominantly large cap cap equities. Bonds may also be held from time to time. Expected VAR 2.5-4%.
Max in this strategy £1-2bn
|Average monthly relative returns||Bestinvest MRI|
|13/14||14/15||15/16||16/17||17/18||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Clunie joined Jupiter in 2013 and took over management of the Jupiter Absolute Return fund at the start of September 2013. Prior to joining Jupiter he worked at SWIP where he managed a long/short equity fund and UK long-only funds for 5 years to 2013. Before SWIP, Clunie was a senior lecturer at Edinburgh University where he taught finance for 4 years. He was also a director on the MSc finance and investment programme. Prior to this, he worked for Aberdeen Asset Management (previously Murray Johnstone) from 1989 until 2002, latterly as head of global equities. Clunie has a BSc in mathematics and statistics and a PhD on indirect short-selling constraints, both from Edinburgh University. He is a CFA charterholder.
The track record of James Clunie in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.
|Periods of worst performance|
|Absolute||-36% (April 2002 - January 2003)|
|Relative||-6% (September 2002 - May 2003)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.