Five fund picks for pension investors
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Jupiter Merlin Balanced
Jupiter Merlin Balanced is a multi manager fund which can have between 40-85% in equities and aims to provide capital growth and a decent level of income. The team seeks to take advantage of short-term market movements that create opportunities and also take defensive measures where appropriate.
Our opinion
If a manager is good enough for one portfolio, they are good enough for all in the eyes of the Jupiter Independent funds team, so there can be some overlap between Merlin funds. There are subtle differences, however, and we think the Jupiter Merlin Balanced fund is great for investors wanting growth and income - both are achieved without too much compromise.
Company description
Founded in 1985, Jupiter Asset Management has grown from a specialist investment boutique to a global fund management company. It provides a range of products from bond and equity funds to multi-asset strategies for both retail and institutional clients. Jupiter is a strong proponent of active management and therefore gives its managers the freedom to run their funds their way, without having to adhere to a 'house' view. In July 2020, Jupiter completed its acquisition of Merian Global Investors.
Fund manager
The Jupiter Independent funds team is headed by John Chatfeild-Roberts and also includes Algy Smith-Maxwell, Amanda Sillars, David Lewis, Alastair Irvine and George Fox. The team manages the fund collectively rather than dividing up responsibilities, although John has the final say. John joined Jupiter in 2001 and is currently Head of Strategy, Independent Funds. He was appointed as Jupiter’s Chief Investment Officer in 2010, but stood down from this role in September 2015 to focus on running the portfolios.
If you think about life, it’s about people. As with schoolteachers – there were good ones and bad ones. The good ones really inspired you, imparted an enthusiasm for their subject and increased your understanding; in classes with the bad ones, you never learned a thing. It’s the same in fund management.
John Chatfeild-RobertsFund manager
Investment process
The team believes asset allocation is a moral obligation and that it is vital not only to capture opportunities but also to avoid pitfalls. The investment process can be summarised in four steps. Firstly, the team analyses the macroeconomic environment, using research from a variety of sources. Secondly, it identifies fund managers most likely to perform in a given macroeconomic environment, using ongoing quantitative and qualitative analysis. Thirdly, it uses this analysis to construct high conviction portfolios, based on what it foresees in terms of macroeconomic conditions going forward. The final step sees the team monitor and modify the portfolio to ensure ongoing enhanced returns. When a change is required, the team is not afraid to make it as it believes all holdings in a portfolio should be ‘working hard’.
ESG
ESG - Limited
The Jupiter Independent Funds team encourages the managers of funds in which it invests to exercise their duties as asset owners or financiers to best effect. This includes considering ESG factors and incorporating stewardship principles when investing and engaging with companies.
The team employs numerous structural drivers which form the backbone of its stewardship profile. This includes its strong focus on active management, as the team feels active stewardship has been a huge component in delivering value. The team also conducts 1-2-1 interviews with all of their underlying managers every six months – something they feel provides unique insight into each fund, including their engagement at a company level.
As a company, Jupiter also has dedicated resources devoted to stewardship – such as the Jupiter ESG Hub, a proprietary data science led platform which synthesises MSCI Analytics and Rep Risk data, delivering a dashboard of pertinent ESG data at the stock level for funds.
Risk
It's in the team’s DNA to protect investors when markets are falling, so it endeavours to minimise losses and to make the most of gains. With 40-85% in equities at any one time, the Jupiter Merlin Balanced fund's risk profile can vary greatly.
Read more about this fund
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