The Jupiter Global Sustainable Equities Fund has changed its name to the Jupiter Global Leaders Fund
The Jupiter Global Sustainable Equities Fund has changed its name to the Jupiter Global Leaders Fund (the “Fund”), with effect from 29 November 2024. It is important to note, however, that there has been no change to the investment objective, active approach, portfolio, or risk profile – and the same investment team remains in place managing the strategy.
If much is staying the same, then why is the name changing?
The introduction of sustainability disclosure requirements (SDR) in the UK requires funds that use certain terms (e.g. ‘sustainable’) to adopt an SDR label or cease using the term in their name. Jupiter took the decision not to adopt an SDR label and therefore need to change the Fund’s name. From 29 November 2024 the newly named Jupiter Global Leaders Fund will be categorised as an unlabelled fund with sustainability characteristics, measuring and reporting on Key Performance Indicators (“KPIs”) against the progress of those sustainability characteristics.
Aligned to sustainability disclosure requirements
The new name aligns to the requirements of SDR and is consistent with the investment focus of the Fund, which invests in equities across the world that demonstrate long term leadership. When considering leadership, the fund looks for those companies that have high quality economic characteristics, strong competitive positioning with affordable levels of borrowing, and generate long term cash flow through an economic cycle. Once this is established, the fund considers the environmental and social outcomes of the business. Jupiter has taken this opportunity to update the Fund’s investment policy and investment strategy to provide further clarity as to how assets for the Fund are selected.
Aligned to good environmental and social outcomes
How the Fund’s investments perform against their sustainability characteristics is an important part in the manager’s conviction in its Fund holdings. As such, KPIs will be focussed on how the Fund’s investments align with good environmental and social outcomes, including those real-world outcomes captured by the UN Sustainable Development Goals and the Paris Agreement.
Companies will either:
provide products or services that are, or operate in a way that is, aligned with the delivery of one or more of the United Nations Sustainability Development Goals (“UN SDGs”) (a blueprint provided by the United Nations, consisting of 17 SDGs to achieve a better and more sustainable future for all. The 17 SDGs address the global challenges faced, including those relating to poverty, inequality, climate change, environmental degradation, peace and justice¹);
or
align operationally with the temperature goals of the Paris Agreement (a pledge by world leaders in 2015 to limit the global average temperature increase to well below 2 degrees above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels²).
The Fund will also not invest in a company that is assessed as violating the principles of the United Nations Global Compact (“UNGC”).
Jupiter has previously published reports that provide transparency on how they consider alignment of the holdings to planet, people and profit – the latest version can be found in their website’s Document Library – and they will continue to publish similar reports on an ongoing basis.
¹ https://www.un.org/sustainabledevelopment/sustainable-development-goals/
² www.un.org/en/climatechange/paris-agreement
Consumer Facing Disclosures (CFDs)
In line with the SDR rules for funds which use sustainability criteria in their marketing, Jupiter has produced a Consumer Facing Disclosure (CFD) document which provides you with information on the fund’s sustainability goals and strategy. This can be viewed on our website (please visit the individual fund details page and click on ‘Sustainability Disclosures’) and includes a brief statement explaining why the fund does not have a label.
Some background to SDR
The SDR regime, which came into force on 31st July 2024, allows asset managers to apply to use one of four distinct labels to denote a fund’s sustainable investment credentials. Please note that labels are for use by UK domiciled funds only, are optional and not compulsory, and ethical/responsible strategies are not in scope.
To adopt a label, as specified in the FCA rules, the asset manager must set out the sustainability objectives of a fund i.e. what it is trying to achieve and how it intends to meet these objectives, and ensure they meet the qualifying criteria on an ongoing basis.
The aim of the labels is to help individuals navigate the sustainable investment market and identify which funds are best aligned to their preferences. In addition, anti-greenwashing rules (to ensure sustainability-related claims must be fair, clear and not misleading) reinforce the FCA’s clear intention that financial products marketed as sustainable should do as they claim and have the evidence to back it up.
The Big Exchange welcomes the SDR labels which we believe complement our own methodology for assessing funds. TBE’s investment ethos is to follow the Sustainable Development Goals (SDGs) developed by the United Nations. You can read more about our methodology and process here. Although the labels are not currently applicable to the overseas funds we offer, consultations are under way to potentially bring them in scope in the future.
You can read more about the rules and who they apply to here.
Please remember that when investing, making money is not guaranteed and your capital is at risk. The value of your fund can go down as well as up. Tax treatment depends on an individual’s circumstances and may be subject to change.
This communication does not constitute investment advice. If you are unsure whether an investment is suitable for your circumstances, you should contact an independent financial advisor.
The Big Exchange (TBF) Limited is a wholly owned subsidiary of The Big Exchange Limited. The Big Exchange (TBF) Limited is an Appointed Representative of Resolution Compliance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN: 574048). (CaRA: 8814)
