Jupiter launches real return fund

UK fund manager Jupiter has launched the Jupiter Merlin Real Return, an actively managed multi-manager portfolio that aims to deliver a 3% return over inflation.

The fund is a UK domiciled version of Luxembourg listed UCITS fund. Its objective is to return 3% net of fees over the Consumer Price Index over rolling three-year periods. It will have a strong bias to long-short equity absolute return strategies and will also invest in selected equity funds and physical gold, with the flexibility to also invest in fixed interest, commodities and property. At present the UCITS version of the fund is allocated 63% to absolute return funds, 27% to equity funds, 5% physical gold and 5% cash.

The fund will be managed by the Jupiter Independent Funds team led by John Chatfeild-Roberts, which has over 18 years’ experience in investing in long-short portfolios. The Luxembourg domiciled version of the fund has produced an average annual return of 7.2% since 2013, against a benchmark return of 2.7%, with a beta of 0.33, volatility of 5.36 and a Sharpe ratio of 1.35.
Jupiter global head of distribution, Nick Ring, commented: “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.”