Jupiter unveils Merlin Conservative for jittery investors
Group outlines details of fifth fund for successful Jupiter Merlin fund of funds range managed by John Chatfeild-Roberts.
Jupiter has outlined details of its forthcoming Jupiter Merlin Conservative Portfolio, saying the fund is for “nervous” investors who may have been burned by past equity market collapses.
John Chatfeild-Roberts, who manages the Merlin funds and is also Jupiter’s chief investment officer, said the fund is being launched due to adviser demand.
“It is the sort of thing that people who are nervous might go for to start with,” he said.
“What we are not saying is this is the absolute time to buy Merlin Conservative. We are doing it because you asked us to do it.”
The fund’s launch date will be September 28.
Merlin Conservative will be characterised by a high weighting in fixed income. It will be housed in the IMA’s Mixed Investment 0-35% Shares sector - the mixed-asset sector with the most stringent cap on funds’ total equity exposure.
In addition to a 35 per cent cap on its permitted equity weighting, the fund will be obliged to hold at least 45 per cent in investment grade bonds and an 80 per cent weighting in hard currency, including a minimum of 40 per cent in sterling.
The fund will carry a retail annual management charge of 1.25 per cent and the group said the fund’s OFC - the new term for total expense ratio - is forecast to be roughly 1.99 per cent.
The fund’s annual charges are 25 basis points cheaper than the standard rate of 1.5 per cent on the Merlin fund range, to reflect its high weighting in fixed income.
Mr Chatfeild-Roberts added that the Conservative portfolio is expected to initially hold funds from managers including Invesco Perpetual’s Neil Woodford, Newton’s Jason Pidcock and M&G’s Richard Woolnough.
Projected initial fund holdings for Jupiter Merlin Conservative
UK Equities - 16%
Invesco Perpetual Income
Jupiter UK Special Situations
Other Equities - 18%
M&G Global Dividend
Morgan Stanley Global Brands
Newton Asian Income
Fixed Interest - 61%
CG Dollar
Jupiter Corporate Bond
Kames High Yield Bond
M&G Strategic Corporate Bond
Jupiter Strategic Bond
Threadneedle Emerging Market Bond
Gold - 4%
Cash - 1%