Jupiter UK Growth Fund

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Jupiter UK Growth Fund
Ian McVeigh Fund Manager
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Jupiter UK Growth

• An unconstrained portfolio

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Growth Funds
No active stock selection
Large capdominated
Passive Tracker
Blue Chip (Quasi-Tracker)
Limited stockselection fromamong small list
Biased towards larger companies
Active stockselection acrosswhole market
Flexible Actively Managed Growth Fund
Broad market mix
Wide selection of companies including smaller
niche businesses
Smaller Companies/Special Situations
Biased towardsmid small companies
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Jupiter UK Growth performance
Source SP Micropal, bid to bid, net income
reinvested, performance to 01.10.06
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Jupiter UK Growth performance
- Ian McVeigh was appointed manager of this fund
in April 2003
Source SP Micropal, bid to bid, net income
reinvested, performance to 01.10.06
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Investment Process

• Three stages to process
• Define Stock
• growth
• value
• recovery
• Identify Catalyst for change
• Set price target

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Investment ProcessGrowth, Value, Recovery

• Definitions
• Growth
• two years of 10 earnings growth
• Value
• as a 10 PE discount on 12 month forward
  earnings
• Recovery
• is where profits have fallen very sharply

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Top 5 Active Positions

• Xstrata
• mining (value)
• Charter
• engineering (recovery/value/growth)
• RSA
• insurance (recovery/value)
• Reed
• electronic publishing (growth)
• Inmarsat
• global mobile franchise (growth)

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Risk Management

• Aware of Aggregate Risk
• The spirit and the letter of Unit Trust rules
• Position sized at 2-3 at purchase
• Live portfolio beta
• Live monitoring of portfolio

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The derating of equities

• Profits have grown strongly since 1999 Market
  Peak
• 50
• EPS growth
• Market forward P/E of 23x at end of 1999
• Current Forward P/E is 12-13x to end 2007

Source DataStream February 2006
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Current Portfolio
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UK Growth Fund

• Portfolio Split
• Growth 55
• Value 29
• Commodity 15
• Other Cash 1

Source Jupiter as at 01.10.2006
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Summary

• An unconstrained portfolio
• A major advantage
• Strong one and three year performance
• A core holding within client portfolios

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