Jupiter’s Merlin multi-manager team has bought into direct commercial property for the first time in more than 10 years.
The team, led by chief investment officer John Chatfeild-Roberts, has added a position in the Mayfair Capital Commercial Property fund in both the £4.7bn Jupiter Merlin Income and the £1.6bn Jupiter Merlin Balanced portfolios.
In the funds’ monthly commentary Mr Chatfeild-Roberts said: “We have a high conviction in the strength of the fund management team at Mayfair and believe that in the current environment, selected property exposure is a potential alternative for investors seeking diversification away from equities and bonds for income generation.”
The Merlin team has been hunting for exposure to property for more than a year, with Merlin funds co-manager Algy Smith-Maxwell stating in April 2013 that he and his colleagues were “beginning to do some digging” in order to assess how a property investment would fit into their portfolios.
Elsewhere in the Merlin funds the team has added holdings in the Market Vectors Gold Miners exchange-traded fund in both the Balanced and Growth portfolios, as well as a position in the Market Vectors Junior Gold Miners ETF in the Worldwide portfolio. This is the third ETF position in the five Merlin portfolios, alongside a long-standing physical gold tracker and the Powershares Buyback Achievers ETF, which was added last year.
