- Jupiter Global Value Equity invests in companies that appear to have undervalued share prices
- It has diversified exposure including to markets that look cheap such as the UK and Japan
- Value investing can take time to deliver results so you should have a long-term investment horizon if you invest in this fund
A key factor in making a good return on an investment is to have bought it at a good price. So to position for the beginnings of a possible recovery in 2021 it could be worth holding a fund that invests via a value style.
Options include Jupiter Global Value Equity (GB00BF5DRJ63). Its managers, Ben Whitmore and Dermot Murphy, weigh up the price they pay for a company’s shares against their view of the quality of its business. They assess the strength of a company’s market position in comparison to its competitors, any recent or potential changes in its industry, and the company’s ability to turn profits into cash.
This fund only launched in 2018, so it is not yet apparent from its record if this approach is successful. But Mr Whitmore, who is head of strategy for value equities at Jupiter, has a much longer and successful record with other funds such as Jupiter UK Special Situations (GB00B4KL9F89).
Jupiter Global Value Equity has a wider pool of opportunities than Jupiter UK Special Situations. The UK also faces Covid-19 and Brexit headwinds that might delay or negate a domestic economic recovery.
But there are still potential value opportunities in the UK, as not all companies listed on this market move in sync with the domestic economy, and this fund had 28 per cent of its assets in the UK at the end of November. But it is also well diversified across other regions, and invests in companies listed in countries such as Japan, which also appear to offer value potential.