Jupiter Merlin Income

Jupiter Merlin Income fund is managed by one of the most respected multi-manager teams in the industry. It has been designed to provide an immediate and growing income, with the potential for capital growth too.

Our opinion

The success of Jupiter’s Merlin range of multi-manager funds comes down to the strength and stability of the team running them. The Jupiter Merlin Income fund has the added income element, which is so important for many investors today. It makes for a good core holding for income seekers looking to have the hard work done for them.

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.

Finding good fund managers is art, not science, although a robust framework helps!

John Chatfeild-RobertsFund manager

Investment process

The investment process can be summarised in four steps. Firstly, the team analyses the macroeconomic environment, using research from a variety of sources. There is a particular focus on identifying key turning points (such as a turn in the interest rate cycle) in an accurate and timely manner. Secondly, the team identifies fund managers most likely to perform in a given macro environment, using ongoing quantitative and qualitative analysis. Thirdly, the team uses this analysis to construct high-conviction portfolios, based on what the members foresee in terms of macroeconomic conditions going forward. Benchmarks are used as performance targets, rather than restrictions. Fourthly, the team monitors and modifies portfolios to ensure ongoing enhanced returns. When a change is required, the members are not afraid to make it; they believe 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

Jupiter Merlin Income's investment mandate allows for a considerable allocation towards bonds and cash, which will lower its risk profile. As it is a multi-manager fund, there are a large number of underlying holdings to help diversify risk. This results in the fund being about one third as volatile as the UK stock market.

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