The Jupiter Global Fund - Jupiter Asset Management

More documents

Recommendations

Info

the jupiter global fund Jupiter New Europe ■■Jupiter New Europe Review of Portfolio as at 30 September 2012 Performance NAV 30.09.12 30.09.11 % Change Class L US Dollar Shares USD 6.75 USD 5.96 13.26% Class L Euro Shares EUR 7.30 EUR 6.17 18.31% Class L Sterling Shares GBP 8.36 GBP 7.67 9.00% Market Review Regional markets were heavily influenced by external factors in the period under review, in particular by the eurozone crisis. While share prices have been pressured by weak sentiment, the largest economies in our region and the operational results of the companies in our portfolio have shown considerable resilience. The Russian economy has largely recovered from the recession of 2008-09 and recent statistics suggest that Russian consumers are in a good position. Unemployment is at its lowest level since 1999, while real wage growth is allowing for increasing levels of spending, helping to drive real annual retail sales growth. However, Russian equities have not performed as strongly as might have been expected during the year to 30th September 2012.In Turkey, the government has enjoyed some success in rebalancing the economy and preventing it from overheating following an 8.5% surge in GDP in 2011. Growth moderated to3.2% year on year in the first quarter of 2012, while the current account deficit narrowed to 8.6% of GDP in May, down from10% at the end of 2011. Policy Review For the year to 30 September 2012, the Fund has returned 18.3% compared to 23.8% for its benchmark the MSCI Emerging Markets Europe 10/40 index. The underweight position in central Europe has weighed on performance, particularly in the last nine months or so, as central bank measures to increase liquidity coupled with tentative signs of progress in resolving the eurozone crisis caused these markets to rally in spite of weakening fundamentals. The main stock-specific factor working against performance has been the Fund’s position (3.6% as at 30 September 2011) in Russia vodka producer Synergy (-21% in GBP in the 12 months to 30 September 2012), which suffered from unfavourable regulatory developments, including a sharp increase in excise duty, causing results to disappoint. The Fund has an overweight stance in Russia and Turkey. In Russia, key positions include consumerfocused stocks such as food retailer Okey, and infrastructure plays such as Russia’s largest transport construction company Mostotrest. In Turkey, we hold significant positions in banks, which provide exposure to the underleveraged consumer and underpenetrated mortgage market. The Fund has almost no positions in central Europe (other than a small holding in Polish insurer PZU) as these economies have suffered a sharp slowdown in recent months due to their greater exposure to the crisis in the Eurozone. Investment Outlook The success of Turkish policymakers in reducing macroeconomic volatility has allowed investors to increase their focus on the country’s long-term growth drivers: favourable demographics, rising productivity and improved governance. Following a recent research trip, we have increased the Fund’s Turkish exposure by around 10% on the view that corporate earnings are set to surprise positively, creating scope for the market to continue performing strongly. We believe that Turkey currently offers better opportunities than central European markets to which we currently have no exposure on the view that those countries will be badly affected by the slowdown in the eurozone. After 18 years of negotiations, Russia finally joined the World Trade Organisation this summer. While the gains from membership are mostly of a long-term nature, it is an important signal of the government’s commitment to liberalise the economy. Russian equities look increasingly attractive from a dividend perspective following encouragement from the government to increase payout ratios. As a result, the dividend yield for the Russian market – which historically was lower than in other markets – has now caught up with emerging market peers and stands at around 3.2%. Long term structural growth drivers, macroeconomic strength and low valuations combine to create compelling investment opportunities in Russia and Turkey. Elena Shaftan, Ingrid Kukuljan and Colin Croft 30 October 2012 58
the jupiter global fund Jupiter New Europe ■■Jupiter New Europe Schedule of Investments as at 30 September 2012 Quantity Description Fair Value € Fair Value as a Percentage of Net Assets % Transferable securities and money market instruments admitted to an official exchange listing Equities Austria 2,608,208 4.78 80,000 Do & Co Restaurants & Catering 2,608,208 4.78 Poland 569,693 1.04 6,500 PZU Group 569,693 1.04 Russia 40,101,589 73.51 24,513 Bashneft 1,149,139 2.11 145,000 Cherkizovo Group GDR 1,303,279 2.39 430,000 Etalon Group GDR 2,091,336 3.83 50,000 Eurasia Drilling GDR 1,227,694 2.25 800,000 Gazprom 3,140,536 5.76 89,000 Globaltrans Investment GDR 1,427,019 2.62 405,000 Hydraulic Machines & Systems GDR 1,488,671 2.73 106,500 Lukoil ADR 5,117,894 9.38 365,000 M Video 2,344,750 4.30 195,000 Mobile Telesystems 1,107,303 2.03 340,000 Mostotrest 1,578,765 2.89 160,000 Nomos Bank GDR 1,540,247 2.82 75,081 Norilsk Nickel ADR 933,966 1.71 17,263 Novatek GDR 1,602,384 2.94 180,000 Okey Group GDR 1,329,879 2.44 406,232 Rosneft Oil GDR 2,114,056 3.87 2,105,615 Sberbank of Russia 4,763,786 8.73 1,450,000 Surgutneftegaz Preferred 750,386 1.38 189,600 Synergy 2,158,484 3.96 695 Transneft 995,640 1.82 60,000 Uralkali GDR 1,936,375 3.55 The accompanying notes form an integral part of these financial statements. 59
Page 1:
The Jupiter Global Fund Société d
Page 4 and 5:
the jupiter global fund Investment
Page 6 and 7:
the jupiter global fund Management,
Page 8 and 9: the jupiter global fund Directors
Page 10: the jupiter global fund Report of t
Page 14 and 15: the jupiter global fund Statement o
Page 30 and 31: the jupiter global fund Statistical
Page 38 and 39: the jupiter global fund Jupiter Asi
Page 40 and 41: the jupiter global fund Jupiter Asi
Page 42 and 43: the jupiter global fund Jupiter Cli
Page 44 and 45: the Jupiter global fund Jupiter Cli
Page 46 and 47: the jupiter global fund Jupiter Eur
Page 54 and 55: the jupiter global fund Jupiter Glo
Page 60 and 61: the jupiter global fund Jupiter New
Page 62 and 63: the jupiter global fund Jupiter Ind
Page 64 and 65: the jupiter global fund Jupiter Ind
Page 66 and 67: the jupiter global fund Jupiter Jap
Page 72 and 73: the jupiter global fund Jupiter Nor
Page 74 and 75: the jupiter global fund Jupiter Nor
Page 76 and 77: the jupiter global fund Jupiter Chi
Page 82 and 83: the jupiter global fund Jupiter Str
Page 84 and 85: the jupiter global fund Jupiter Str
Page 94 and 95: the jupiter global fund Jupiter Dyn
Page 100 and 101: the jupiter global fund Notes to th
Page 108 and 109:
the jupiter global fund Notes to th
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
the jupiter global fund Additional
Page 117:
the jupiter global fund Form of Pro
show all

The Jupiter Global Fund - Jupiter Asset Management

Create successful ePaper yourself

Delete template?

Save as template?