Emerging Markets  

Jupiter adds short duration fund to EMD suite

Jupiter adds short duration fund to EMD suite

Jupiter has launched a second fund for emerging market bond manager Alejandro Arevalo, making a foray into the short duration space.

The fund group has joined its peers in launching new strategies for duration-conscious investors. This comes as rate rises in the US, and expected tightening in Europe, have made fixed income investors more defensive with fund buyers and managers alike cutting down interest rate risk.

The Luxembourg-domiciled Jupiter Global Emerging Markets Short Duration Bond Fund will invest in short-dated debt either issued by EM corporates or governments, or indirectly exposed to the regions. This will cover both local and hard currency. Duration will be kept under three years. Mr Arevalo's recently launched emerging market corporate bond fund currently runs a duration of five years.

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Its marks Jupiter's first dedicated short-duration vehicle and is its second EM debt vehicle launch this year. Mr Arevalo joined from Pioneer in late 2016 with a view to building up the firm's EMD capabilities via both single asset funds and in Ariel Bezalel's Strategic Bond strategy. The corporate bond fund launched in March already has close to £80m in assets under management.

Mr Arevalo said: "As US economic data continues to recover and expectations of rate normalisations grow, this offers investors [a chance] to benefit from the improving fundamentals in emerging markets, while targeting total return with limited interest rate risk."

Charges for the fund were not disclosed.