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By Kevin White | Published May 09, 2012

Jupiter unveils multi-asset Strategic Reserve fund

The unit trust is a global multi-asset portfolio and is an onshore version of the Luxembourg-based Jupiter Strategic Total Return fund. Its aim is to deliver a total return objective with an emphasis on capital growth and low volatility, its managers said.

Jupiter will levy a 1.3 per cent annual management charge to the retail market in addition to an initial charge of 5 per cent. The minimum investment is £500 followed by a monthly investment of £50.

According to Jupiter, the fund aims to be cost effective and to meet investors’ requirements in difficult and volatile times - investing directly in liquid tradable securities, including equities, corporate and convertible bonds, government bonds and currencies.

To achieve this the fund managers will use a flexible and agnostic asset allocation policy, aiming to reduce the impact of any major downturn, selecting assets considered to offer the best risk/reward trade-off, and generally avoiding structured products and third-party funds.

Charlie Crole, institutional director for Jupiter Asset Management, said: “The launch of the fund reaffirms Jupiter’s commitment to the UK institutional market in general and the pensions market in particular.

“Its emphasis on generating absolute returns meets a growing need from institutional and pension fund investors for cautiously-managed funds, offering the prospect of a lower-risk positive outcome.

“The fund also provides a solution for the defined contribution pensions market, an area we expect to grow strongly in coming years.”

Edward Bonham Carter, chief executive of Jupiter Asset Management, said: “The issue of adequate retirement provision is one of the most significant challenges we currently face as a nation. Changing demographics in the UK mean that most people will have to work harder for longer. It also means that the way people invest is likely to change, with investors, consultants and other intermediaries increasingly looking for strategies that can provide capital growth with lower volatility. We believe the Jupiter Strategic Reserve fund has the potential to meet these objectives.”

Philip Church, proprietor of Glasgow-based Pension Investment Management, said: “Jupiter is a good investment house, a big player with respected fund managers. I use them a lot. This fund looks all right, but perhaps the initial charge is a little high at 5 per cent.”

Claiming the counterpart Luxembourg-based total return fund had yet to perform, Mr Church added: “It’s not a huge problem, as it has only been a short period of time since it launched in 2010. My only concern with this new fund though would be whether it issues a bankers’ bonus? The Luxembourg fund pays out 10 per cent, but its not clear if the UK-based fund does the same.”

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