Lessons from a decade of FundCalibre
As FundCalibre celebrates its 10th anniversary, it’s a moment to reflect on how far we̵...
Jupiter Merlin Growth
Jupiter Merlin Growth is a high-conviction, multi-manager fund of funds run by one of the most respected teams in London. The majority of the portfolio is often held in the top five fund holdings, although underlying stocks remain plentiful and diversified.
Our opinion
The team has a simple process and share our bias towards fund managers who are resilient in tough times. This means there tends to be a high number of Elite Rated funds in its portfolios. We like the fact that the team is willing to back underlying managers with conviction.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 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.
The most important lesson I have learnt is that people are what makes the difference in fund management. In the final analysis, there is no substitute for seeing the whites of someone’s eyes.
John Chatfeild-RobertsFund manager
Investment process
The investment process is simple: the team assesses the macroeconomic environment, identifies the best people, constructs the portfolio, then monitors and modifies. The team uses its collective expertise to select who it believes are the best fund managers in each area, with the aim of producing the best possible returns in any given macroeconomic environment. It strives to buy the right quantities of the right fund manager at the right time.
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
Jupiter Merlin Growth fund is less volatile than the UK stock market. As it is a multi-manager fund, it will hold a number of underlying investments that will diversify the portfolio and significantly reduce any single company risk. Investors should also be aware of the currency risk.
Read more about this fund
The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.