A 15% return over the past year from a global fund? You might have thought that was impossible given the harsh environment in 2022 but Jupiter Global Value Equity L Acc (BF5DRF2) delivered this gift to investors.
It was one of 14 open-ended global funds to rise above difficult market conditions and generate a positive return for investors this year, according to analysis of FE Fundinfo data by Shares.
Co-managed by Ben Whitmore and Dermot Murphy, Jupiter Global Value Equity looks for stocks whose share price does not reflect the true value of the company.
It has benefited from recent share price strength in motorbike specialist Harley Davidson (HOG:NYSE) which pleased the market at its half-year results by saying everything was on track.
Normally something like that wouldn’t trigger any market reaction, but in a world where companies are downgrading guidance, maintaining profit forecasts is deemed worthy of celebration.
Jupiter Global Value Equity’s top holdings, as of 30 September, were real estate-to-beverages conglomerate Swire Pacific and two financial stocks, AIB and Standard Chartered (STAN).
WHICH OTHER FUNDS DID WELL?
The second best performing open-ended global equity fund over the past year was MI Thornbridge Global Opportunities (B5TP8W8), delivering a 10.3% return. It looks for capital and income growth from investments across the equity and bond markets.
As of 31 October, the portfolio was heavily exposed to financial services (21%), basic materials which is mining and packaging companies (20%), money markets (12%) and tech, media and telecoms (12%).
‘We seek to invest in attractively priced companies which identify some or all of the following characteristics: a history of generating free cash flow; are forecast to grow earnings in the medium to long-term; have an above average return on assets; a strong balance sheet,’ says Thornbridge.
Unlike the typical global fund, MI Thornbridge Global Opportunities has much less exposure to the US and much more exposure to Europe.
‘Going against the crowd is difficult, especially when the crowd is having fun and making money. That’s why so few fund managers have the stomach to do so. But the sad reality is we all know every party eventually ends, so unless our research demonstrates a high probability of us making a real return for clients with limited downside, we are happy to “dance alone”,’ says the asset manager.
