Jupiter Merlin Portfolios
The Jupiter Merlin Portfolios is a range of eight multi-manager funds of funds. Unlike traditional funds, which invest directly in stocks, bonds, or other instruments, a fund of funds invests in other mutual funds.
Our highly experienced investment managers allocate across both Jupiter funds and those managed by other asset managers, following a disciplined and consistent investment approach.
The value of investments and income may go down as well as up and investors may not get back amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.
1. Research and selection
- Selection from more than 4,500 funds available to UK investors.
- Specialist expertise used to identify the right investments for each portfolio.
- Extensive experience in choosing top fund managers across asset classes and regions.
- Detailed assessment of managers’ skills, style, and fund characteristics.
- Preference for active managers over passive funds.
It’s a fund where a fund manager actively selects investments for a portfolio typically with the goal of performing better than a benchmark index.
An investment strategy that aims to match the performance of a stock market index through tracking its progress by buying and selling shares in the same proportions as the index. These funds are also known as tracker funds or index funds.
2. Asset allocation
- Regular assessment of the market environment.
- A long-term, patient approach with flexibility to make tactical adjustments.
- Willingness to exploit short-term opportunities.
- Defensive positioning where appropriate.
In investing, defensive positioning is when a portfolio manager adjusts the mix of investments to reduce risk and protect investors’ money during times of uncertainty or expected market downturns. It’s about playing it safe rather than trying to chase the highest possible returns.
3. Portfolio construction
- High conviction: selecting funds based on detailed study.
- Use of both quantitative and qualitative analysis.
- Blending of investment styles to navigate different market conditions.
- Diversification across strategies to help manage overall risk.
- Scale provides access to funds not typically available to private investors.
- Scale also allows negotiation of reduced annual fees.
Quantitative analysis (often called “quant” analysis) is the use of numbers, data, and mathematical models to make investment decisions. Instead of relying mainly on opinions, stories, or intuition, it tries to find patterns in data that can help identify opportunities or risks.
Unlike quantitative analysis, which involves analysing numbers, qualitative investment decisions are based on looking at the story behind a company, industry, or economy and the people who run it.
The spread of different types of investment within a portfolio in order to reduce risk.
4. Portfolio maintenance
- Daily monitoring to maintain awareness of exposures.
- Ongoing analysis of the global economic backdrop to identify key turning points.
- Active response to potential opportunities or threats.
- Adjustments to fund positions based on manager performance and skill.
- Meetings with underlying fund managers at least every six months.
- Continuous scrutiny of performance data, with questions raised on an ongoing basis.
What are the differences between the funds in the Merlin range?
Each fund is designed to align with different investor goals and risk appetites.
- The equity/bond mix varies across funds.
- Levels of exposure to Jupiter-managed assets also differ.
(See our Factbook booklet for more details.)
What we offer
We recommend you discuss any investment decision with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice.
The Jupiter Independent Funds team (from left): Venetia Campbell, Alastair Irvine, John Chatfeild-Roberts, Amanda Sillars, David Lewis and George Fox
Meet the team
The Jupiter Merlin Select portfolios are managed by the Jupiter Independent Funds Team, the same highly experienced, award-winning team that have stewarded the Jupiter Merlin range since it began.
Under the leadership of John Chatfeild-Roberts and David Lewis, these expert investors are completely focused on generating outperformance for their clients using a multi-manager approach, diligently researching the breadth of the fund universe in a relentless search for investment excellence.
An important factor in the team’s success has been their unparalleled access to the rest of the investment talent at Jupiter, benefiting from the expertise and exchange of ideas with other highly skilled individuals. The Jupiter Merlin Select portfolios bring this advantage to the fore, increasing the typical allocation to in-house managed Jupiter funds to help bring down the cost.
Fund Specific Risks
For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Scheme Particulars.
All of the Jupiter Merlin portfolios carry the following fund risks:
- Currency (FX) Risk - The Fund can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
- Pricing Risk - Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
- Derivative risk - the Fund may use derivatives to reduce costs and/or the overall risk of the Fund (this is also known as Efficient Portfolio Management or “EPM”). Derivatives involve a level of risk, however, for EPM they should not increase the overall riskiness of the Fund.
- Counterparty Risk - the risk of losses due to the default of a counterparty e.g. on a derivatives contract or a custodian that is safeguarding the Fund’s assets. Additionally, Jupiter Merlin Conservative Select, Jupiter Merlin Monthly Income Select, Jupiter Merlin Moderate Select, Jupiter Merlin Income Portfolio, Jupiter Merlin Balanced Portfolio and Jupiter Merlin Income & Growth Select have the following fund risk:
- Interest Rate Risk - The Fund can invest in assets whose value is sensitive to changes in interest rates (for example bonds) meaning that the value of these investments may fluctuate significantly with movement in interest rates e.g. the value of a bond tends to decrease when interest rates rise.
- Credit Risk - The issuer of a bond or a similar investment within the Fund may not pay income or repay capital to the Fund when due. Furthermore, Jupiter Merlin Conservative Select, Jupiter Merlin Monthly Income Select, Jupiter Merlin Income Portfolio, Jupiter Merlin Balanced Portfolio and Jupiter Merlin Income & Growth Select have the following fund risk:
- Charges from capital - Some or all of the Fund’s charges are taken from capital. Should there not be sufficient capital growth in the Fund this may cause capital erosion.
Important Information
This document is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice. Past performance is no guide to the future. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. The views expressed are those of the authors at the time of writing are not necessarily those of Jupiter as a whole and may be subject to change. This is particularly true during periods of rapidly changing market circumstances. For definitions please see the glossary at jupiteram.com. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. Company examples are for illustrative purposes only and not a recommendation to buy or sell. Jupiter Unit Trust Managers Limited (JUTM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ are authorised and regulated by the Financial Conduct Authority. No part of this document may be reproduced in any manner without the prior permission of JUTM.