Jupiter enters energy fund arena

Jupiter has become the latest group to offer an energy fund, a global mandate run by Derek Pound.


The all-cap fund invests mainly in the equity of companies engaged in the exploration, production, transmission or distribution of energy, and companies involved in the development and exploitation of new energy technologies. Although not an environmental portfolio, Pound is free to invest in new technologies such as renewables and fuel cells, drawing on the expertise of Jupiter’s environmental investment team.

Typically hold between 30 and 60 stocks, Pound says at launch he is moving to the upper end of his planned range. Considering the sharp rally equities has experienced over the past two weeks, he notes he is watching the market closely as he moves to fully invest the portfolio.

In periods of high conviction Pound says he will move to around 30 positions and away from the benchmark’s weightings, while in periods of volatility he will be more in line with the MSCI, adding alpha at the edges. In line with that premise, Pound has already added a few Aim-listed names to his portfolio, Dominion Petroleum and Cove Energy. He has also invested in Ophir Energy, which has just moved to the main UK market. 

Believing the new floor for oil prices is likely $90 to $100 Pound says energy stocks are a solid long-term story, for both the traditional players and alternatives. “The landscape for energy prices has changed,” he says. “The world has moved on and there is a tremendous desire and need for energy security. This backdrop along with society’s fundamental need for energy will create compelling opportunities’ for investors over the coming decades.”

Pound, co-manager of Jupiter Primadona Growth Investment Trust, has worked at the group since 1995, specialising in the mining, oil and gas and chemicals sectors. Between 2005 and 2008 he helped managed a resources portfolio for the group’s Global Managed fund. In 2008 that portfolio was merged into the UK portion, which he continues to manage.

Initial charge on the new energy fund is 5.25% while the annual fee is 1.50%. Jupiter Global Energy is listed in the IMA Specialist peer group.