Jupiter expands multi-asset strategy with Flexible Macro Fund
Jupiter has expanded its multi-asset offering with the launch of the Jupiter Flexible Macro fund. The fun, which follows the successful launch of Jupiter Flexible Income in 2018, will target long-term returns with low correlations to traditional assets using a top-down macroeconomic approach.
The Jupiter Flexible Macro fund will look to generate consistent risk-adjusted returns across the market cycle by investing in a range of securities that the management team believes will benefit from major macroeconomic themes and secular trends.
Managed by the Jupiter Multi-Asset team led by Talib Sheikh, who joined Jupiter in June 2018 from JP Morgan Asset Management, the unconstrained fund will invest in a combination of equities, fixed income and financial derivatives globally, including emerging markets. Highly diversified and with a differentiated return stream, the fund will aim to provide a total return in excess of cash (1m Euribor) over a three-year rolling period through a combination of capital growth and income. Alongside this, the manager believes a return of cash +5% over a three-to-five-year period with volatility around half that of equities is achievable. It will look to realise this while working within Jupiter’s established risk management framework, providing a liquid and transparent option for investors seeking the potential of strong risk-adjusted capital growth.
Talib will be supported on the fund by Jupiter’s broader multi-asset team who will contribute macro Sheikh and drive tactical allocation decisions. The team will also work collaboratively with Jupiter managers across equities, fixed income and alternatives by sharing ideas and accessing stock selection expertise.
Stephen Pearson, Chief Investment Officer, says: “In today’s market environment, generating meaningful returns without excessive risk will require an active, unconstrained and flexible approach. Sheikh has a history of strong performance in this space and today’s launch demonstrates our commitment to providing a range of products to suit our clients’ needs. The team continues to grow and develop: following the hiring of Mark Richards as Multi-Asset Strategist from JP Morgan in January, the team recently hired Matthew Morgan from BlackRock as Product Specialist, joining Joseph Chapman, Assistant Fund Manager. We are pleased to offer investors another way to access Talib and the team’s expertise and experience.”
Sheikh, Head of Strategy, Multi-Asset, adds: “The need for liquid strategies that provide a return that is uncorrelated with traditional asset classes remains strong. Unlike many investors we do not forecast a more volatile environment going forward, but we do believe total returns are going to be lower given current starting valuations in equities and (especially) in fixed income. The Sharpe ratio or risk adjusted returns in traditional asset classes are likely to degrade over the coming years, and therefore the alpha that an investment manager can bring will be ever more important.
We feel now is an important time to offer clients access to a product such as this. Jupiter is renowned for its active, high-conviction philosophy, which we believe gives this portfolio the ability to be truly nimble in its approach. As market conditions chop and change this flexibility will be increasingly important in seeking meaningful returns.”