Page 14 - DIY Investor Magazine | Issue 32

CONCLUSION
Our change-based investment approach targets long-term capital appreciation by investing in companies where positive change is not currently reflected in share prices. There are clearly a number of major structural changes playing out globally driven by technological innovation, and we look for exposure to these changes without overpaying.
Investors who bought into the ‘obvious’ beneficiaries of technological change during the late 1990’s/early 2000 boom without paying sufficient attention to competitive challenges and valuations serve as a cautionary tale.
21 years on we argue that little has changed – while it remains hard to predict which providers of products and services will be the ultimate winners as technology evolves, the strong long- term shareholder returns delivered by ‘technology enablers’ suggests investors may do better to look beyond the headline names to the key players in the supply chain. We believe
those companies enabling change – the makers of ‘picks and shovels’ in the technology gold rush - offer investors an attractive risk-reward proposition.
Please bear in mind that all investments involve risk and the value of, and any potential income from, your investment may fluctuate and are not guaranteed. The company examples mentioned above are for illustration only and not a recommendation to buy or sell or investment advice.
We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice. The views expressed are those of the authors at the time of writing and are not necessarily those of Jupiter as a whole and may change in the future. This is particularly true during periods of rapidly changing market circumstances.
Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. Past performance is no guide to future performance.
The Jupiter Emerging and Frontier Income Trust can borrow money and use it to invest, also known as ‘gearing’ or ‘leveraging’. The risk with gearing is that when the borrowed money has to be repaid the value of the Company’s investments may not be enough to repay it and any interest and the Company will make a loss.
If the value of the Company’s investments falls, any invested borrowings will increase the value of this loss. Investors may get back nothing at all if the fall in value is sufficiently large.
The Company invests in developing geographical areas and there is a greater risk of volatility due to political and economic change, fees and expenses tend to be higher than in western markets.
These markets are typically less liquid, with trading and settlement systems that are generally less reliable than in developed markets, which may result in large price movements or losses to the Company.
The Company invests in smaller companies, which can be less liquid than investments in larger companies and can have fewer resources than larger companies to cope with unexpected adverse events.
As such price fluctuations may have a greater impact on the Company. This Company invests mainly in shares and it is likely to experience fluctuations in price which are larger than Companies that invest only in bonds and/or cash.
IMPORTANT INFORMATION
The value of active minds – independent thinking: A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class.
As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals.
Investment trust companies are traded on the London stock exchange, therefore the ability to buy or sell shares will be dependent on their market price, which may be at a premium or discount to their net asset value.
Before making an investment decision, please read the PRIIPS Key Information Document which is available from Jupiter on request and at www.jupiteram.com.
Click here for more information on Jupiter Emerging and Frontier Income Trust >
DIY Investor Magazine · Feb 2022 14