Jupiter’s Merlin team drops Odey

Jupiter’s Merlin team drops Odey

Jupiter’s Merlin multi-manager team has dropped Odey’s European Focus fund from the range following a period of severe underperformance.

Manager Oliver Kelton had been tipped as a rising star in the industry by the Merlin team, but it has now been removed from the Merlin Balanced, Growth and Worldwide portfolios in February, according to an update for the range.

On a one-year basis the fund has underperformed its offshore Europe inc UK sector peer group, returning 1 per cent versus a sector average of 10.8 per cent.

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According to FE Analytics it had some €1.1bn (£881m) in assets at the end of 2016, but Odey fund literature indicates this had fallen to €592m at the end of February. 

The Merlin team had around £200m in the portfolio as of the final quarter of last year, according to annual accounts.

John Chatfeild-Roberts (pictured) and his Merlin team replaced the fund with the Schroder European Alpha Income product run by James Sym. It returned 30.8 per cent over the last year, beating the 23.5 per cent average from its IA Europe excluding UK cohort.

The team had expressed concerns about political risk in Europe and the change follows on from another recent rejig of their European equity exposure.

Late last year, the team removed David Dudding’s Threadneedle European Select fund from two of its portfolios, shifting allocations towards a more international approach via M&G’s Global Dividend strategy.