Jupiter Corporate Bond

Fixed interest fund with some international bonds.

  • 59.56p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 61.88p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 4.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.00%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.27%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 1.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 13 December 2019, fund data last updated 01 October 2003

John Hamilton has over twenty years expereince in managing fixed interest assets. He adopts a fairly pragmatic approach and favours a diversified portfolio in terms of sector splits. The fund is primarily UK biased, but Hamilton does take European and North American bonds, adding an extra facet to the portfolio.

Fund summary

Sector £ Corporate Bond
Structure UNIT TRUST
Launched May, 1998
Size £146m
Yield 1.80%
Charging basis Income
Dividends paid 31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.27%

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Investment process

The fund aims to provide high income (although there is no specified target) and the opportunity for capital growth. Hamilton begins his process begins by taking a view on the gilt yield curve and to which area he favours, i.e. short, mid or the long end. A relative value approach to investing within this asset class dominates the proceedings from here. The manager reviews the peer group by looking for anonalies within the same sector or within credit ratings. Once these have been established, then the manager must satisfy himself on that the companies have a robust level of interest cover and that it is a stable growing company.

Manager research

Average monthly relative returns

  • 14/15 0.01%
  • 15/16 -0.50%
  • 16/17 0.03%
  • 17/18 -0.01%
  • 18/19 -0.06%

Bestinvest MRI

  • 3 years -0.01%
  • 5 years -0.11%
  • Career -0.12%
  • 3 years 68.10%
  • 5 years 34.80%
  • Career 24.80%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Rhys Petheram

Petheram joined Jupiter’s Fixed Income team in 2006. Prior to this he was an analyst at Towers Perrin Australia and a Credit Analyst for Utilities at Moody’s Investor Services. Petheram gained a degree in Commerce and a Diploma in Modern Languages from the University of Melbourne. He is CFA qualified.

Track record

Rhys Petheram has 7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.12%. During the worst period of relative performance (from October 2012 - August 2016) there was a decline of 11% relative to the index. The worst absolute loss has been 4%.

Periods of worst performance

Absolute -4.00% (April 2013 - June 2013)
Relative -11.00% (October 2012 - August 2016)

About the MRI

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.

Allocation

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Top 10 holdings

Data accurate as at 30 August 2019

2.4067% United States Of Amer Treas Bonds 2.25% Bds 15/08/46 Usd100
2.2716% United States Of Amer Treas Bonds 5.25% 15/2/2029 Usd1000
2.177% Microsoft Corp 3.3% Bds 06/02/27 Usd2000
2.1588% Royal Bank Of Scotland 5.125% Bonds 13/01/2024
2.0846% Lloyds Bank Plc 4.875% Cvd Bds 30/03/27 Gbp 2012-16
2.0835% United States Of Amer Treas Bills 3% Bds 15/02/47 Usd100
1.8951% Network Rail Infrastructure Finance 4.75% Nts 29/11/35 Gbp50000
1.887% Transport For London 3.625% Nts 15/05/45 Gbp100000
1.7653% Hsbc Hldgs Plc 2.175% Nts 27/06/23 Gbp100000
1.6569% United States Of Amer Treas Bonds 4.50% Bds 15/08/39 Usd1000
Source: Trustnet

Sector breakdown

BBB 44.00%
AAA 19.00%
A 17.00%
AA 11.00%
BB 3.00%
Non-Rated 3.00%
B 2.00%
Money Market 1.00%

Portfolio

Generally quality UK bonds 75%, international bonds 25%.

Constraints

There are no constraints placed upon the manager except those need to qualify for the peer group.

Key Investor Information - Income

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Key Investor Information - Accumulation

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