Jupiter UK Special Situations

Pragmatic value style manager primarily investing in out of favour growth stocks in the UK.

  • 188.13p Price (Inc)
  • 196.38p Price (Acc)
  • 5.25% 0.00% Initial charge
  • 1.50% Annual management charge
  • 1.75% Ongoing charges
  • 2.70% Yield

Prices as at 06 December 2019, fund data last updated 27 February 2018

The fund targets capital growth through investment in a fairly concentrated portfolio of large and mid-cap UK equities. Selected overseas companies are also included. The fund's manager, Ben Whitmore, adopts a contrarian, value, investment style to uncover good companies whose share prices do not reflect their full potential and worth. 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 All Companies
Structure UNIT TRUST
Launched June, 1996
Size £2,048m
Yield 2.70%
Charging basis Income
Dividends paid 31 May, 30 Nov

Charges

Standard initial charge 5.25%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.75%

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Investment process

Ben Whitmore is a bottom-up stock picker who adopts a clear value, contrarian investment style. Investing primarily in large and mid-cap UK equities, he seeks out of favour stocks trading on low valuations. However, he also looks for “quality” characteristics such as a high return on operating assets, a strong balance sheet so they can cope with unfavourable conditions, and profitability that closely mirrors cash flow over time. Companies are discovered through the use of two screens: a Graham & Dodd 10-year P/E measure (value) and a Greenblatt screen (value and quality). The two screens are largely complementary, although stocks from the Greenblatt screen feature more often at times when the dispersion between quality and value is relatively low, indicating quality is relatively cheap. The search for value is, in Whitmore’s view, opportunistic so he has no pre-set size or sector biases, investing wherever he sees value in the broader market, although the bulk of the portfolio is typically made up of larger companies. 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 Special Situations fund is anything but. Since taking on the product in 2006 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.

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.

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Top 10 holdings

Data accurate as at 30 August 2019

5.6902% Bp
5.6109% Glaxosmithkline
4.5221% Wpp Plc
4.4583% Barrick Gold Corp
4.3454% Smiths Group
4.1196% Aviva
3.9888% Pearson
3.9874% Standard Chartered
3.9106% Vodafone Group
3.6104% Imperial Brands Plc
Source: Trustnet

Sector breakdown

Financials 22.00%
Consumer Services 17.00%
Industrials 13.00%
Consumer Goods 10.00%
Money Market 9.00%
Health Care 8.00%
Oil & Gas 8.00%
Basic Materials 7.00%
Telecommunications 6.00%

Portfolio

Normally between 30-50 stocks.

Constraints

Individual holding are generally unlikely to account for more than 7% of the portfolio. +/-10% broader sector constraints

Key Investor Information - Income

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Key Investor Information - Accumulation

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