Jupiter Asset Management (Jupiter) has launched the Jupiter Flexible Macro Fund, boosting its multi-asset capabilities.
The fund will target long-term returns, with low correlations to traditional assets. It will aim to consistently find gains across the market cycle by investing in a wide range of securities that its management team believes will benefit from macroeconomic themes and secular trends. Its scope will include equities, fixed income and financial derivatives globally, including in emerging markets.
It will be managed by the Jupiter Multi-Asset team. This team is led by Talib Sheikh, who joined Jupiter in June 2018 from JP Morgan Asset Management.
The team’s aim is to deliver a return in excess of cash (1m Euribor) over a three-year rolling period through a combination of capital growth and income. Jupiter also considers a 5 percent return in cash over a three-to-five-year period to be achievable.
Mr Sheikh will be supported by Jupiter’s broader multi-asset team who will assist with the macro decisions and drive tactical allocation decisions made by the fund. The team will also work with Jupiter managers across equities, fixed income and alternatives by sharing ideas and accessing stock selection expertise.
Stephen Pearson, chief investment officer, spoke positively about the launched fund, believing it catered for the needs of the current market, while also expressing full confidence in Mr Sheikh’s capabilities.
He said: “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.”
Mr Sheikh added: “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.”
