Jupiter has launched the Jupiter Flexible Income fund, a sub-fund of the Jupiter Global fund Sicav.
Managed by head of Strategy, Multi- Asset, Talib Sheikh, the fund will look to harvest a sustainable level of regular income across multiple asset classes on a global basis. Initial yield is estimated to be 4-6% with the prospect of capital growth over the long term (three to five years).
The fund looks to offer clients a comprehensive, transparent and consistent investment solution. With a global remit, it will invest in a variety of income generating assets across the capital structure in both traditional and non-traditional asset classes.
It will be fully unconstrained and high conviction in style. Leveraging the breadth of Jupiter’s expertise across asset classes, the portfolio will incorporate the established skills of Jupiter’s regional equity specialists and fixed income credit research team to achieve strategic asset allocations. Integrated into Jupiter’s wider investment and risk framework, the multi-asset team (Talib Sheikh, Lee Manzi, Rhys Petheram and Joseph Chapman) will drive all macro views and tactical allocation decisions.
The size of the fund at launch is of €55m. It’s estimated yield range is between 4–6%, based on model portfolio as at 31 August 2018. It does not have a stated benchmark, in line with its stated flexibility.
Talib Sheikh, head of Strategy, Multi-Asset, said: “While interest rates are starting to rise across Europe, the real yield accounting for inflation is actually falling. Investors’ purchasing power is being eroded faster than at any time since the great financial crisis.
“The need for progressive income generation is a theme that is only growing in importance as life expectancies continue to increase in the developed world. Additionally, when looking at the global multi-asset income space, the 10 biggest funds today make up 65% of assets in the segment with combined AUM of €96bn, compared with 53% and €10bn in 2009.”