Jupiter Distribution

Invested in fixed interest and equities for sustainable income and growth.

  • 58.64p
    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.

  • 107.56p
    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?

  • 4.50% 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!

  • 1.25%
    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).

  • 1.39%
    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.

  • 2.10%
    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 26 November 2020, fund data last updated 19 February 2009

Invests in both fixed interest and equities with the objective of achieving a sustainable income with capital growth over the long-term. Management responsibilities are split between John Hamilton for fixed interest, accounting for circa 60%-65% of the fund and Anthony Nutt for equity investments. With regards the equity portion a pragmatic view to stockpicking is taken, typically focusing on growth stocks with strong fundamentals.

Fund summary

Sector Mixed Investment 0-35% Shares
Structure UNIT TRUST
Launched March, 2002
Size £568m
Yield 2.10%
Charging basis Capital
Dividends paid 27th day of each month

Charges

Standard initial charge 4.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.39%

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Investment process

The corporate bonds elimant of the fund provides the majority of the income while the UK equity holdings are intended to provide some yield and the majority of capital growth. John Hamilton manages the corporate bond portion, which is dominated with UK issues, although there are some European and North American holdings. He targets relative value anomalies and prefers a broadly diversified portfolio. Anthony Nutt takes a pragmatic view to stock picking, focusing upon fundamentals and could be considered as a Growth At a Reasonable Price (GARP) investor. He targets companies with sustainable business models, which generally tend to be larger cap stocks.

This fund is an alternative to an equity income portfolio and follows a more balanced approach towards enhancing income, whilst aiming to reduce the volatility of underlying capital. The fund is suitable for those looking for above average income, with some growth potential and benefits from the experience of two highly respected managers. However, our favoured fund in this space is Invesco Perpetual Distribution.

Manager research

Average monthly relative returns

  • 15/16 -0.28%
  • 16/17 -0.11%
  • 17/18 -0.32%
  • 18/19 -0.12%
  • 19/20 0.45%

Bestinvest MRI

  • 3 years 0.01%
  • 5 years -0.08%
  • Career 0.01%
  • 3 years 61.30%
  • 5 years 43.30%
  • Career 79.70%

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

Rhys Petheram / Alastair Gunn

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. Gunn joined the UK equities team at Jupiter in 2007, specialising in the Transport and Property sectors. He joined from Arbuthnot Securities where he had been Director of Equity research since 2003. Before this Gunn was Managing Director of Equity Research for Bear Stearns International. He is a registered representative of the London Stock Exchange.

Track record

Rhys Petheram / Alastair Gunn has 8.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.01%. During the worst period of relative performance (from December 2015 - September 2019) there was a decline of 12% relative to the index. The worst absolute loss has been 8%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 80%.

Periods of worst performance

Absolute -8.00% (January 2020 - March 2020)
Relative -12.00% (December 2015 - September 2019)

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 31 July 2020

2.493% United States Of Amer Treas Bonds 4.5% Bds 15/02/36 Usd1000
2.4271% Wisdomtree - Physical Silver
2.3067% Us Treasury 2.875% 15/11/46
2.0337% United States Of Amer Treas Bonds 4.375% Tb 15/02/38 Usd1000
1.8147% Metropolitan Life Global Funding 2.625% 05/12/22
1.7937% Next Group Plc 3.625% Bds 18/05/28 Gbp100000
1.7453% Vena Energy Capital 3.133% 26/02/25 (Green Bond)
1.6893% Bupa 6.125% 31/12/99
1.6706% Glaxosmithkline
1.559% Welltower 4.8% 20/11/28
Source: Trustnet

Sector breakdown

Others 73.00%
Money Market 5.00%
Health Care 5.00%
Financials 4.00%
Consumer Services 3.00%
Industrials 3.00%
Consumer Goods 2.00%
Oil & Gas 2.00%
Basic Materials 2.00%
Technology 1.00%

Portfolio

Approximately 65% of the fund invests within corporate bonds, convertibles and other fixed interest securities. The remaining 35% is invested largely within high yielding UK equities.

Constraints

The underlying managers are not set any house rules regarding their funds, but are constrained by the standard IA rules for inclusion to the peer group.

Key Investor Information - Income

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Key Investor Information - Accumulation

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