Jupiter  

Jupiter launches absolute return-focused fund

Jupiter launches absolute return-focused fund

Jupiter has launched a UK domiciled unit trust fund which will invest in long and short equity absolute return strategies.

The Jupiter Merlin Real Return is a UK-domiciled NURS version of the Jupiter Merlin Real Return Portfolio (SICAV).

It is an actively managed multi-manager portfolio that aims to deliver a return of 3 per cent net of fees above the consumer price index over three-year rolling periods.

Nick Ring, Jupiter’s global head of distribution, said: “We have seen clear demand from existing and prospective clients for us to extend this strategy into a unit trust product, offering exposure to the growing universe of absolute return funds, while leaving fund selection in the hands of an experienced team of investors.”

The fund will be managed by Jupiter’s independent funds team and will be biased towards investing in long and short equity absolute return strategies.

The team will also invest in selected equity funds and physical gold, while retaining the flexibility to invest in fixed interest, commodities and property.

Jupiter said it plans to invest the fund in a similar manner to SICAV, and is looking to hold about 63 per cent in absolute return funds, 27 per cent in equity funds, 5 per cent in physical gold and 5 per cent in cash.

Algy Smith-Maxwell, fund manager in the Jupiter independent funds team, said : “We are very proud of the track record that we have delivered in the Jupiter Merlin Real Return Portfolio (SICAV), and we think that Jupiter Merlin Real Return should be very well placed at a time when equity and bond markets have enjoyed a 9-year bull run.”

Mel Kenny, chartered financial planner at London-based Radcliffe & Newlands, said: “Jumping on the back of good performance with the Sicav version, it looks like Jupiter are looking to make hay whilst the sun shines.”

aamina.zafar@ft.com