Jupiter today announces the launch of the Jupiter Dynamic Bond ESG fund (SICAV), a bespoke version of its flagship Jupiter Dynamic Bond fund(SICAV) with a core focus on sustainability. The new fund will actively promote environmental and social characteristics and will be classified as Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR).
Sitting alongside the €9.96bn Jupiter Dynamic Bond fund, Jupiter Dynamic Bond ESG will be run by the same industry-leading management team: Ariel Bezalel, Jupiter’s Head of Strategy, Fixed Income, and Harry Richards, Fixed Income Fund Manager.
Where the existing Jupiter Dynamic Bond fund fully embeds ESG considerations as part of itslong-established investment process, Jupiter Dynamic Bond ESG will actively promote environmental and social characteristics, including the transition to a low carbon economy and the promotion of a positive stakeholder agenda, targeted at those investors looking for an Article 8-compliant solution to their global fixed income requirements.
High level asset allocation, as well as key risk characteristics, are expected to remain consistent across the two funds. Jupiter Dynamic Bond ESG will use strict ESG criteria, including certain sector and sovereign exclusions, data science and sustained engagement work, alongside thorough qualitative research, to determine security eligibility for the portfolio. The measurement requirements associated with Article 8 funds will lead to long-term sustainability targets for investee companies and governments across the fund, against which progress will be tracked, monitored and shared.
The Jupiter Dynamic Bond fund will remain classified as Article 6 under SFDR for the time being, and will continue to offer its established rigorous focus on ESG both as part of bottom-up credit selection and top-down asset allocation.
As a high-conviction, active fund management house, ESG considerations have long been integral to Jupiter’s investment process. In common with all of the company’s investment portfolios, Jupiter Dynamic Bond ESG will be aligned with Jupiter’s stated commitment to achieving net carbon neutrality both across its own operations and the funds that it manages on behalf of clients by no later than 2050.
Anna Karim appointed Fixed Income ESG Director
In line with the launch of Jupiter Dynamic Bond ESG, Jupiter is pleased to announce the appointment of Anna Karim as ESG Director, Fixed Income. Annajoined Jupiter in October from Federated Hermes, where her focus was on product innovation and AUM growth for the company’s ESG-focused funds. Prior to taking on that roleshe sent 20 years in investment banking, at companies including Bank of America Merrill Lynch and Citi Group.
In her new role Anna will work across Jupiter’s broad range of fixed income funds, with a particular focus on Dynamic Bond ESG, looking to promote strong stewardship practices within the team’s approach across the range.
“Our long experience of credit markets across Jupiter’s fixed income team has taught us how easily weak governance and environmental and social risks can derail seemingly strong or improving credit stories.Our ability to manage downside risk relies on rigorous consideration of potential ESG risks alongside traditional financial analysis, and we are pleased to be formalising and promoting this process within the new fund.”Ariel Bezalel, Head of Strategy, Fixed Income
“As a high conviction, active manager, we believe that our clients are best served by investments which will make a positive impact with their money, environmentally, socially, and financially. This is true not just of the funds within our Sustainability suite, but across our entire fund range.
“SFDR, alongside a growing acknowledgment among investors of the urgency to address the environmental challenges impacting our world, has strongly accelerated demand for investments which help to make this positive impact. We are delighted, therefore, to offer this additional fund to clients looking to access our successful and established strategy with specific ESG objectives in mind.”Warren Tonkinson, Deputy Global Head of Distribution