Jupiter Income Trust

A contrarian, value conscious approach to UK equity income investing.

  • 547.49p
    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.

  • 585.09p
    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?

  • 5.00% 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!

  • 1.50%
    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).

  • 1.69%
    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.

  • 4.30%
    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 27 February 2018

The Fund’s objective is to produce a high income, increasing at least in line with inflation on a 3-5 year view, from a managed portfolio invested primarily in UK equities, although the fund may have some overseas exposure. Manager Ben Whitmore is a bottom-up contrarian investor and favours stocks with good prospects that are out of favour or are mispriced in the market. Unusually for a value manager he also looks for quality characteristics such as strong balance sheets, aiming to reduce the risks associated with value investing.

Fund summary

Sector UK Equity Income
Structure UNIT TRUST
Launched August, 1987
Size £1,825m
Yield 4.30%
Charging basis Capital
Dividends paid 28 Feb, 31 Aug

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.69%

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Investment process

Ben Whitmore is a bottom-up stock picker who adopts a clear value, contrarian investment style. Whitmore seeks out of favour stocks trading on low valuations, which are typically able to demonstrate high return on operating assets, a strong balance sheet to enable the business to cope with unfavourable conditions, and profitability, that closely mirrors cash flow over time. Undervalued companies are discovered through the use of two screens: a Graham & Dodd 10-year P/E measure and a Greenblatt screen. The two screens are largely complementary, although in practice, the stocks from the Greenblatt screen feature more often within the fund at times when dispersion between quality and value is relatively insignificant, introducing an element of quality into the process.The search for value is, in the manager’s view, opportunistic so he has no pre-set size or sector biases, investing wherever he sees value in the broader market, although the fund typically has a bias to larger companies. Despite value investing typically associated with significant levels of volatility and considerable drawdowns, Whitmore’s approach is anything but. Whitmore seeks portfolio investments to be as uncorrelated as possible, not only at the fund level but also at the sector level in order to mitigate the risk of any particular sector being a ‘value trap’.

Value investing is typically associated with significant levels of volatility and considerable drawdowns, but the Jupiter Income fund is anything but. Since taking on the product in 2013 manager Ben Whitmore has consistently achieved levels of volatility significantly lower than the broader market and other managers operating in the UK value space, whilst having offered protection during stressed market environments. Solid stock picking, controlling for factor exposures with the portfolio and opportunistic use of cash have all added considerable value over time. This is a dividend-focused version of the UK Special Situations fund that Whitmore has successfully run since 2006.

Manager research

Average monthly relative returns

  • 14/15 0.21%
  • 15/16 0.05%
  • 16/17 0.16%
  • 17/18 0.14%
  • 18/19 -0.24%

Bestinvest MRI

  • 3 years 0.02%
  • 5 years 0.07%
  • Career 0.27%
  • 3 years 64.40%
  • 5 years 80.00%
  • Career 99.90%

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

Ben Whitmore

Whitmore holds a geography degree from Cambridge and joined Schroders in 1994, initially working as an assistant to a UK Pension Fund. After a year he moved to the UK Research department as an insurance analyst. He became a UK Equity Fund Manager in 1999. In October 2006 he joined Jupiter and he now is a Director of the UK equities team.

Track record

Ben Whitmore has 17.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.27%. During the worst period of relative performance (from August 2001 - September 2001) there was a decline of 10% relative to the index. The worst absolute loss has been 35%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -35.00% (October 2007 - February 2009)
Relative -10.00% (August 2001 - September 2001)

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

6.8187% Bp
5.6473% Glaxosmithkline
4.662% Wpp Plc
4.063% Smiths Group
3.9699% Vodafone Group
3.9585% Aviva
3.9072% Pearson
3.8857% Standard Chartered
3.713% Imperial Brands Plc
3.1146% Bae Systems
Source: Trustnet

Sector breakdown

Financials 23.00%
Consumer Services 19.00%
Consumer Goods 13.00%
Industrials 11.00%
Money Market 10.00%
Oil & Gas 9.00%
Health Care 6.00%
Telecommunications 6.00%
Basic Materials 3.00%

Portfolio

Around 30-50 holdings. The manager may hold up to 10% in cash.

Constraints

+/-10% at a sector level

Key Investor Information - Income

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Key Investor Information - Accumulation

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