Jupiter has today launched the Jupiter NZS Global Equity Growth Unconstrained fund SICAV, a global portfolio of companies that can adapt and thrive in a world dominated by disruption. Managed by Brad Slingerlend and Brinton Johns, portfolio managers at Jupiter’s US-based strategic partner, NZS Capital, the fund invests in companies that maximize Non-Zero-Sum, or win-win, value for the benefit of all stakeholders, including customers, employees, society, and the environment.
With extensive expertise gained from a combined total of 70 years of investment experience, the NZS team has a track record of generating significant outperformance for investors. Based on the science of Complex Adaptive Systems, the NZS investment philosophy seeks adaptable and innovative companies that will successfully navigate the increasing pace of disruption as the global economy transitions from analogue to digital.
While the technology sector is driving innovation today, in the coming years, the wave of disruption will impact every sector across the economy including industrials, consumers, financials, energy, and healthcare, and weightings in the strategy will evolve over time to reflect these changing dynamics. The team believes that the Information Age affords an unprecedented level of transparency, and companies still using the traditional methods of high barriers, wide moats, and information hoarding to extract value from customers are losing ground to adaptable companies that maximize Non-Zero-Sum, or win-win outcomes.
At the heart of the NZS Complexity Investing philosophy is constructing a portfolio that balances two sets of companies the team calls Resilient and Optionality. In this context, Resilient companies are those able to adapt and evolve to disruption and changing conditions, while Optionality companies are adaptable, but earlier in their lifecycles with high asymmetry. The fund will hold 50-70 stocks: the Resilient portion will typically comprise 10-20 companies with a position size greater than 2.5% each, and the Optionality component will have 30-50 names that are each less than 1.5% of the overall portfolio. The fund’s holdings will typically have market capitalizations above US$5bn.
“As the global economy moves from the analogue-based Industrial Age to the digital-based Information Age, a vastly different set of characteristics are needed for success. We believe that the two things that matter most as the world makes this switch from analogue to digital are adaptability in the face of an uncertain future and a company’s ability to create more value than it takes – what we call Non-Zero Sum, or NZS. Investing in a world shaped by disruption and free-flowing information requires a new approach, and we have carefully honed our Complexity Investing framework over the last decade for success in this new investing frontier. We are delighted to share this strategy with Jupiter’s clients in the shape of this new fund.”
Brad Slingerlend, Co-founder and investor at NZS Capital, LLC
“Brad and Brinton are talented fund managers with a carefully constructed process that has the potential to deliver long-term returns. Their approach is clearly aligned with Jupiter’s culture and focus on high conviction, active fund management, centred around client outcomes. We have already seen a real client interest and strong early growth in the strategy since confirming the partnership with NZS, and the launch of this fund will bring the company’s total assets over $1bn while offering a further opportunity for our clients to access this exciting new strategy, a key strategic priority for Jupiter.”
Andrew Formica, Jupiter’s CEO