Jupiter UK Dynamic Equity I

  • 591.84p
    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.

  • -
    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?

  • 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).

  • 1.07%
    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.

  • 1.00%
    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 09 April 2021, fund data last updated 09 March 2015

The fund targets capital growth through investment mainly in small and mid-cap UK equities. This is a best ideas fund, with manager Luke Kerr forming the portfolio from the highest conviction ideas held elsewhere on the Old Mutual UK mid and small cap team. Kerr favours fast-growing companies and also includes a number of “short” positions in the fund where he expects prices to fall. Typically these are limited, but market exposure can be reduced to as low as 30% when the manager is bearish.

Fund summary

Sector UK All Companies
Structure OFFSHORE FUND
Launched
Size £410m
Yield 1.00%
Charging basis Income
Dividends paid 31 Jul

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.07%

Allocation

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Investment process

Stocks are selected entirely from those bought elsewhere on the UK mid and small cap team and will consist predominantly of medium and small-sized UK companies, though some FTSE 100 companies may also feature. The bulk of the portfolio will be in traditional “long” positions (buying equities the manager expects to rise in price). However, the manager also takes some short positions, which give negative exposure to shares he believes are overvalued, enabling him to benefit from falling share prices. With the long positions the manager looks for companies that have 1) Potential for above average growth, 2) Potential for profit upgrades and 3) Potential for re-rating. These criteria are reversed when looking for short positions. The process also includes top-down analysis, which is aimed at identifying sectors and styles that are likely to outperform and underperform the market - this helps set the overall balance of the portfolio. Shorting can be used more generally when the market is overvalued – combined with the use of cash this can reduce market exposure to as low as 30%.

Luke Kerr has run this fund and its predecessor since 2005 and has outperformed the FTSE 250 benchmark on both. The funds have also provided defensive characteristics in falling markets, aided by their ability to short. The manager used this ability to great effect ahead of the 2008 financial crisis, but in more normal markets shorting is limited so volatility is likely to be broadly similar to equity markets as a whole. Kerr benefits from being part of a strong team, but investors should be aware that the fund will have overlap with Old Mutual’s UK Mid Cap and UK Smaller Companies funds, and the desk’s success means it now has significant assets under management.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

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Relative 0.00% ()

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.

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Portfolio

60 - 100% of portfolio invested in longs (40-60 holdings); 0-30% of portfolio invested in shorts (0-40 holdings). Long positions via CFDs and shares, short positions via CFDs.

Key Investor Information

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