Active asset allocation to navigate market cycles

Since quantitative easing and negative interest rates, financial markets have changed radically. The result: lower returns and less income, but at least as much risk.


Investors need to find ways to work their assets harder. But which strategy is the right one? We are convinced that focus and flexibility are key. The Jupiter Flexible Income fund gives investor exposure to a dynamic, actively managed portfolio of different asset classes, seeking to generate steady income while also delivering long-term capital growth.


A truly unconstrained approach and a broad investment universe allows the fund management team to exclude assets that are too expensive in favour of better opportunities and to be dynamic as markets evolve, guiding the fund’s investors towards the parts of the market the team consider most attractive.

Proven track record with a disciplined approach to risk

Talib Sheikh, an experienced multi-asset portfolio manager with over 22 years’ industry experience, has an extensive and well proven track record of managing multi-asset strategies.

 

The Fund aims to combine Talib’s vast experience with a strategy designed to deliver results in today’s markets and in future, focusing on delivering a sustainable income with the prospect of capital growth.

 

The Fund aims to deliver returns with significantly reduced volatility relative to equities: estimated 6-8%, under half the risk of equity.

 

Risk management is focussed on duration and downside protection.

Past track-record of managing multi-asset1

 

The Fund vs. peer group average performance (%)2

An active, high conviction approach to multi-asset income investing

In an environment of lower returns with higher volatility, active returns will play a vital part in meeting growth and income targets. Talib and the team has full discretion in managing asset allocation based on his conviction levels and cyclical views to add growth and reduce downside risk.

 

The team’s macro views are built on proprietary and external macro research. Talib also partners with carefully chosen investors from Jupiter’s range of active managers, allocating capital to access market leading security selection expertise.

A high conviction approach – typical ranges3

An unconstrained approach to income generation

Yield is scarce: investors need to take income from the broadest possible sources. The Fund can invest in both traditional asset classes (equities, investment grade, high yield), and alternative areas such as emerging markets, specialist financial debt, infrastructure and REITS.

 

A truly unconstrained approach and broad opportunity set allows the manager to exclude assets that are too expensive in favour of better opportunities, and be dynamic as markets evolve.

 

The Fund uses flexible assets to hedge the portfolio and actively manages the FX exposure.

Flexibility to look for the best sources of income4

Active currency management

Currency hedging costs can be a significant detractor of total returns. An active approach to currency management provides the opportunity to enhance risk adjusted returns by reducing hedging costs, which typically comes out of NAV.

 

Talib has a proven record in active currency management, which allows him to make conscious assessment and decisions about the degree of hedging as part of the overall macro framework.

Cost of Hedging USD into EUR5
Yield Pick-up over EUR6

1 Source: Morningstar, gross dividend reinvested, net of fees, in EUR, from 11.12.2008 to 31.12.2017. Peer group average refers to EUR Moderate Allocation – Global.
2 Source: Morningstar, net of fees, in EUR, from 19.09.2018 to 31.05.2020. Peer group average refers to EUR Moderate Allocation – Global.
3 Source: Jupiter. Quoted yields are not guaranteed and may change in the future. *Typical currency exposure outside of base currency.
4 Source: Jupiter.
5 Source: Bloomberg as at 05.06.2020, Jupiter.
6 Source: Bloomberg, as at 31.05.2020.

Meet the team

Jupiter Multi-Asset Team

Talib Sheikh is an experienced multi-asset portfolio manager with over 22 years’ industry experience. He has an extensive and well-proven track record of managing multi-asset strategies with a disciplined approach to risk. He is supported in managing the strategy by Mark Richard (Strategist), Joseph Chapman (Assistant Fund Manager) and Matthew Morgan (Product Specialist).

 

The Multi-Asset team’s macroeconomic views are built on proprietary and external macro research. Talib also partners with carefully chosen investors from Jupiter’s range of active managers, allocating capital to access market-leading security selection expertise.