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Jupiter launches global value fund

Jupiter launches global value fund

Jupiter has launched a value fund aimed at finding undervalued global companies.

The Jupiter Global Value Equity fund will be co-managed by Jupiter’s head of strategy for value equities, Ben Whitmore, and by Dermot Murphy, and will invest in 30 to 50 stocks.

It will look to achieve capital growth over the long term by investing in a portfolio of global companies viewed by the managers to be "undervalued", meaning their intrinsic value is not reflected in their share price.

Mr Whitmore, already the manager of the £1.8bn UK Special Situations and the £2.4bn Jupiter Income Trust, said: "We see a clear opportunity in this environment to construct a globally diversified portfolio of companies.

"Value as a style of investing has had its worst period of relative under-performance versus growth investing since the late 1990s, therefore we think this is an opportune starting point at which to launch a fund."

Mr Murphy was appointed assistant fund manager on the UK Value Strategies in April 2016, having supported the funds as an analyst since 2014.

He said: "We are very excited about this fund. We have been managing global mandates since August 2016 and investing globally has allowed us to construct a portfolio with a diverse range of companies by geography and industry, which have low valuations, strong balance sheets and good franchises."

The team’s global portfolios are run with the same process, philosophy and value style as their UK strategies, but with the ability to select from a broader global universe. When investing globally, the team considers securities with a market capitalisation of $1bn (£707m) or more for inclusion in their portfolios.

Minesh Patel, from London-based EA Financial Solutions, said picking undervalued stocks was back in vogue as the market retreated.

"It’s not an area Jupiter has been in much before, but I think it’s a good choice, especially since they are looking globally. That’s a wise option given the Brexit uncertainty," he said.