Best In Class  

Best in Class: Jupiter Merlin Income Portfolio

Benchmarks are used as performance targets, rather than restrictions.

The final step sees the team monitor and modify portfolios to ensure ongoing enhanced returns.

When a change is required, they are not afraid to make it; they believe all holdings in a portfolio should be ‘working hard’.

The team holds approximately 150 manager meetings each year and tends to organise these by sector so that, largely, they interview managers who operate in the same market at the same time.

They also ask for full portfolio transparency.

Before interviewing a fund manager, they normally conduct quantitative analysis and combine results with data from Bloomberg and the market place to determine a fund’s characteristics, as well as pinpoint areas for deeper investigation.

The team believes the key risk is future performance.

However, the past performance of each fund manager can provide clues as to how he or she is likely to perform in a given set of circumstances. Portfolios are monitored daily, ensuring that the team always knows where exposures are.

The fund currently has 14 holdings, with fixed interest (39.7 per cent), UK equities (31.9 per cent) and global equities (15 per cent) the largest asset/sector allocations.

The fund also has an historic yield of 2.7 per cent.

The long-term numbers behind this fund are exceptional, and those invested have been rewarded handsomely.

It is an ideal solution for those who want a safe pair of hands managing their money, regardless of whether times are uncertain or not.

Darius McDermott is managing director of FundCalibre