Jupiter is to launch the Jupiter Emerging & Frontier Income Trust, an actively managed portfolio which will aim to achieve capital growth and income over the long term, predominantly through investment in a portfolio of companies exposed directly or indirectly to emerging markets and frontier markets worldwide.
The company will be managed by Ross Teverson (pictured) and assistant fund manager Charles Sunnucks, supported by the wider Jupiter global emerging markets team.
Teverson, who has more than 18 years’ experience of investing in emerging and frontier markets, joined Jupiter in 2014 from Standard Life Investments, where he managed a global emerging markets equity fund. He is currently lead manager on Jupiter’s global emerging markets and China portfolios.
Sunnucks joined Jupiter in 2010 as an analyst, and now specialises in financials, internet companies and utilities.
Teverson, Sunnucks and the team will adopt a multi-cap strategy to managing the company, with small and mid-cap stocks making up a high proportion of the company’s assets. The managers will look to invest in companies enjoying positive change underappreciated by the market, and risk will be managed through diversification across market capitalisation, geography and sector.
The company will have an income focus, and will share the same benchmark unconstrained and bottom-up stock-picking process that characterises Jupiter’s existing global emerging market strategies. A maximum of 25 per cent of the company’s total assets can be placed in frontier markets, which in the managers’ view could offer further risk diversification and the potential for enhanced returns. The company’s portfolio will typically hold between 40 and 45 stocks.
Teverson says: “We believe there is a unique opportunity for this product, which is very much a natural evolution of our existing strategy. Emerging markets remain, in our opinion, structurally attractive, and can offer investors a wealth of opportunities and benefits. This new company will enable us to take on greater exposure to small-cap and frontier companies, many of which we believe offer a compelling combination of significant dividends today, with what we believe to be substantial growth potential in the future.”
John Scott, chairman of Jupiter Emerging & Frontier Income Trust, says: “I believe this is an exciting opportunity for savers and wealth managers to access some of the world’s fastest growing investment markets. We feel there is a growing appetite for emerging and frontier market exposure, particularly when this can provide investors with an attractive yield, and this has been reflected in recent feedback received by Jupiter. Ross Teverson and Charles Sunnucks bring with them a wealth of experience, and a real passion for their markets that we believe should provide a pathway to future success.”