Change to sustainability approach - Jupiter European Growth Funds

"Sustainability Approach

The Fund promotes environmental and social characteristics on an ongoing basis within the scope of article 8 of SFDR but does not have as its objective a sustainable investment.

The environmental and social characteristics promoted by the Fund include but are not limited to the transition to a low carbon economy and the pursuit of a positive stakeholder agenda (the “ESG Characteristics”). Such ESG Characteristics may develop over time.

The investment strategy follows a bottom-up quantitative and qualitative analysis of individual companies, aiming to select those with a good record and a proven product and business model, combined with evidence of entrepreneurial endeavour and the prospect of above average growth opportunities.

In selecting investments to attain the ESG Characteristics, the Investment Manager will include a restriction on companies where the main business activity is linked to controversial weaponry or to coal or tobacco. These elements of the investment strategy are binding on the Investment Manager. In addition, the Investment Manager may, over time add further restrictions or prohibitions on other industries or sectors which it feels are not consistent with or appropriate for the Sustainability Approach of the Fund. In such a case, the prospectus will be amended accordingly at the occasion of the first update that will follow. Details of any further such restrictions will be available from the Investment Manager upon request.

The strategy is implemented through fundamental security analysis in line with the Fund’s active management approach, including pre-investment research, ongoing monitoring and corporate engagement on areas of improvement.

The policy to assess good governance practices of the investee companies requires active engagement by the Investment Manager and demonstration of stewardship through an approach to company dialogue and analysis in accordance with the Stewardship Policy.

At least 50% of the Fund’s net assets are expected to meet the Fund’s ESG Characteristics.

A minimum of 90% of the Fund’s investments will be analysed using the Investment Manager’s ESG Characteristics. With the exception of the binding restrictions in respect of companies linked to controversial weaponry, coal and tobacco, investments are not necessarily ruled out on the grounds of ESG Characteristics provided there is a view that the company is driving positive change in this area.

Further information about the ESG Characteristics is available on request or online on www.jupiteram.com.

The integration of material sustainability risks is a fundamental part of the investment decision making process and risk management process and a crucial element to the generation of long-term returns. The active ownership approach considers material ESG factors (such as environmental, or social considerations) which strengthens the ability to assess risks and opportunities that drive long-term value. These measures are believed to enhance investment decision making leading to better client outcomes by selecting companies that have greater alignment to securityholder and stakeholder interests.

These risks are considered through the investment process and form part of the ongoing monitoring of companies in which the Fund is invested. The Investment Manager will utilise a combination of any of the following to meet these goals or as indicators to measure attainment of ESG Characteristics:

A minimum of 90% of the Fund’s investments will be analysed using the Investment Manager’s ESG Characteristics. With the exception of the binding restrictions in respect of companies linked to controversial weaponry, coal and tobacco, investments are not necessarily ruled out on the grounds of ESG Characteristics provided there is a view that the company is driving positive change in this area. Further information about the ESG Characteristics is available on request or online on www.jupiteram.com.
 

The integration of material sustainability risks is a fundamental part of the investment decision making process and risk management process and a crucial element to the generation of long-term returns. The active ownership approach considers material ESG factors (such as environmental, or social considerations) which strengthens the ability to assess risks and opportunities that drive long-term value. These measures are believed to enhance investment decision making leading to better client outcomes by selecting companies that have greater alignment to securityholder and stakeholder interests.

These risks are considered through the investment process and form part of the ongoing monitoring of companies in which the Fund is invested. The Investment Manager will utilise a combination of any of the following to meet these goals or as indicators to measure attainment of ESG Characteristics:

i) Primary research;

ii) Third party ESG risk data (including climate analysis);

iii) Proxy voting research;

iv) Direct and collaborative engagement with companies and other investors / industry bodies;

v) Company engagement;

vi) Commitment to responsible investment codes; and

vii) Alignment with United Nations Global Compact Principles.

With the exception of the restrictions and minimum thresholds stated above in relation to the promotion of ESG Characteristics, there are no other sustainability risk-related limits or ESG investment restrictions applicable to the Fund, save for such restrictions as may arise in line with regulatory requirements. Low ranking or negative third-party scores from third party ESG data providers will not automatically prohibit investment, but these matters will be given due consideration through internal review. The Investment Manager retains discretion to divest or engage with a company when considering adverse sustainability risks or events. The above activities are conducted by the Investment Manager because it is responsible for the integration of sustainability risks within the investment decision-making process.

In the Investment Manager’s view, the integration of material sustainability risks in the investment process informs investment decisions and contributes to the stronger risk adjusted returns over the long-term. The assessment of the likely impact of sustainability risks on returns involves both quantitative and qualitative judgments. The outcomes in accordance with the Stewardship Policy can be realised in the short term or achieved over multiple periods. Impact may also be influenced by market conditions.

The Fund uses data from third parties (which may include providers for research, reports, screenings, ratings and/or analysis such as index providers and consultants) and that information or data may be incomplete, inaccurate or inconsistent.

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All other key features of the Sub-Fund will remain the same.