Jupiter Merlin Portfolios

Transcription

1 Multi-manager Funds Jupiter Merlin Portfolios May Overview Emerging markets where to next? The only way is up for interest rates Superpowers remain the key to global growth How to exploit secular growth Team Awards HONOURS 2011 Market Commentary From left to right: Peter Lawery, John Chatfeild-Roberts, Algy Smith-Maxwell 5088_ _11.31 For many years we have been quizzed by investors on the opportunities and challenges facing the emerging regions of the world. On a long term secular view, with their massive and dynamic populations, the benefits of investing in these regions has seemed clear to all. However, no great investment theme is ever a straight line to riches and emerging market investing is no different. How and when investors choose to participate in the growth potential of the burgeoning opportunities will define their ultimate portfolio outcomes. The attraction of these markets is due to their high risk/return nature; fortunes can be made, if you get it more right than wrong. Obviously the inverse is also true. It is fairly clear that we are close to, maybe even beyond, an inflection point in a number of global themes that have been in place for many years, if not decades. Primarily, the economic world has benefitted for over 25 years from a disinflationary tailwind resulting in a trend of declining interest rates. With interest rates at effectively zero in the Western world and Japan, they can fall no further, although in depression-hit Europe there is certainly scope for interest rates to go negative in the not too distant future. With the tidal waves of money printing battering the shores of every country around the world, inflation, of the real, not the politically convenient measured variety, is a present danger. This is not to say that interest rates are in imminent danger of rising, and bond yields following suit, as financial repression has so far kept these constrained, but declining interest rates are a thing of the past. The distortions created by Western monetary policy, mimicked by many emerging markets via mercantilist currency manipulation, have seen all boats rise. As the benefits of continued monetary intervention wane, we will soon discover which are seaworthy. At this cyclical point in emerging market development, three countries will define their fortunes, Japan, the US and China. In China, a nation that has thrived from being the outsourcing capital of the world, one quote suffices to highlight the current situation. From 2000 to 2010, wages in the Yangtze Delta, a manufacturing hotbed, jumped from 72 cents an hour to $8.62.* It is thus immediately apparent why the new Chinese leadership is so keen to re-orientate their economy towards a more domestically-biased one; their labour cost advantage has clearly gone. What Japan (or more specifically the yen) does from here is the key for many export-orientated emerging economies, as well as countries such as Germany. How do you compete with superior Japanese exports that are becoming more competitively priced by the day? And the US, the ultimate export destination, is not out of the woods yet, but she has cleansed many of her past ills. America is growing, but the cheap and available labour force, the potentially plentiful supply of energy (if indeed their shale reserves are the bonanza that many hope) and falling input costs, will be crucial for momentum to build. An improving current account balance (aided by the fledgling shale gas revolution) and talk of tapering quantitative easing, have all served to strengthen the US Dollar of late. This strong dollar poses an interesting conundrum for all emerging markets and is the source of one of our greatest concerns for them, that of the original sin of being over-exposed to it. We hope that companies and countries have avoided the temptation of excessive borrowing in the cheapto-service and consistently declining dollar; there is nothing like a change in a currency trend to spoil the party. It has happened numerous times before. Due to their size and secular growth, emerging markets should not be overlooked. Latin American domestic investments look attractive, but the index is dominated by a few major exporters which are best avoided. Asia is home to some of the world s great companies and selectively the most well-managed and financially secure are always worthy of consideration. The Russian market should be cheap, and it is, very, WINNER Best Multi Asset Provider but in the absence of a clear catalyst, it is hard to see what unlocks that value. With all the uncertainties at present and the stated intentions of the Chinese leadership, would the best way to exploit the long term development of the world s emerging regions be via the very largest global consumer brand companies? Furthermore, looking over the next five years would it not be somewhat ironic, and certainly contrarian, to suggest that the best performing emerging market might just be middle America? Though if Japan really does pull off the reflation of its economy, then middle Japan might just grab this accolade! *Source: originally from Reuters, via Cornerstone Macro, May 9th 2013 Outlook In this ever changing world, where long term trends fade and flourish, we believe active asset allocation and pragmatic investment principles are critical to capture the strongest investment themes and avoid the mean-reversion of yesterday s winners. Thus, flanked by our underlying fund managers who have similar long term philosophies, we stand ready to face the challenges and embrace the opportunities of the future. Thank you for your continued support. Jupiter Independent Funds Team

2 Fund Value: 4,810m Launch Date Jupiter Merlin Income Portfolio Objective To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. IMA Sector* Mixed Investment 20-60% Shares Sedol codes (Acc) (Inc) B4N2L74 (I Acc) B6QMDC4 (I Inc) Historic yield (Inc) 3.1% Historic yield (Acc) 3.1% Historic yield (I Inc) 3.1% Historic yield (I Acc) 3.0% XD date 16/1 16/4 16/7 16/10 Payment date 15/3 15/6 15/9 15/12 UK Equities 31.7% Artemis Income Invesco Perpetual High Income Invesco Perpetual Income Jupiter Income Trust Jupiter UK Special Situations Fixed Interest 35.4% Jupiter Strategic Bond Kames High Yield Bond Liontrust Global Strategic Bond M&G Strategic Corporate Bond Threadneedle Emerging Market Bond Other 31.4% ETF Securities - Physical Gold ETF First State Asian Equity Plus M&G Global Dividend Newton Asian Income Cash 1.5% The Historic Yield reflects distributions paid or declared over the past twelve months as a percentage of the mid-market unit price as at the date shown. It does not include any initial charge and investors may be subject to tax on their distributions. All of the Fund s expenses are charged to capital. This has had the effect of increasing the distributions paid on an annualised basis on Retail Units by up to 1.72% of the class average Net Asset Value and constraining the class capital performance to an equivalent extent. Ratings/Awards For further explanations of terms and ratings please also visit the glossary in the help section of our website: Performance 5 year percentage change and sector ranking to Position in Percentage Quartile sector growth ranking Performance 6/ % 1 5 year performance vs IMA Mixed Investment 20-60% Shares sector average 50% 40% Jupiter Merlin Income Portfolio IMA Mixed Investment 20-60% Shares Year on Year % Growth ending Percentage Growth -8.4% 22.8% 8.1% 0.8% 19.0% Rank 27/90 8/ /127 17/142 30/152 Percentage Change 30% 20% 10% 0% -10% All performance in this factsheet is based on accumulation units in GBP. With effect from 17th July Past performance should not be seen as a guide to future performance. -20% May 08 May 09 May 10 May 11 May 12 May 13 Source: FE, bid to bid, net income reinvested.

3 Fund Value: 1,595m Launch Date Jupiter Merlin Balanced Portfolio Objective To achieve long-term capital growth with income by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and property. IMA Sector* Mixed Investment 40-85% Shares Sedol codes (Acc) (Inc) B4351D9 (I Acc) B3X5X81 (I Inc) Historic yield (Inc) 2.1% Historic yield (Acc) 2.1% Historic yield (I Inc) 2.1% Historic yield (I Acc) 2.1% XD date 01/6 01/12 Payment date 31/7 31/1 UK Equities 25.8% Artemis Income AXA Framlington UK Select Opps Invesco Perpetual Income Jupiter Growth & Income US Equities 9.5% Findlay Park American European Equities 5.0% Threadneedle European Select Japanese Equities 5.5% CF Morant Wright Nippon Yield B Jupiter Japan Income Far East Equities 15.0% First State Asian Equity Plus Prusik Asian Equity Income Fixed Interest 11.7% JGF - Jupiter Dynamic Bond Jupiter Strategic Bond Kames High Yield Bond Threadneedle Emerging Market Bond Other 25.6% ETF Securities - Physical Gold ETF Findlay Park Latin American Fundsmith Equity Jupiter Global Equity Income M&G Global Dividend Cash* 1.9% * This includes an unrealised loss of -0.02% made from positions hedging exchange rate fluctuations. Ratings/ Awards For further explanations of terms and ratings please also visit the glossary in the help section of our website: The Historic Yield reflects distributions paid or declared over the past twelve months as a percentage of the mid-market unit price as at the date shown. It does not include any initial charge and investors may be subject to tax on their distributions. With effect from 1 December 2005 all of the Fund s expenses have been charged to capital. This has had the effect of increasing the distributions paid on an annualised basis on Retail Units by up to 2.41% of the class average Net Asset Value and constraining the class capital performance to an equivalent extent. Performance 5 year percentage change and sector ranking to year performance vs IMA Mixed Investment 40-85% Shares sector average Position in Percentage Quartile sector growth ranking Performance 10/ % 1 Year on Year % Growth ending Percentage Growth -12.6% 25.0% 7.9% -2.1% 22.2% Rank 11/97 6/ /127 12/134 64/143 Percentage Change 50% 40% 30% 20% 10% 0% -10% -20% Jupiter Merlin Balanced Portfolio IMA Mixed Investment 40-85% Shares All performance in this factsheet is based on accumulation units in GBP. With effect from 17th July Past performance should not be seen as a guide to future performance. -30% May 08 May 09 May 10 May 11 May 12 May 13

4 Fund Value: 1,932m Launch Date Jupiter Merlin Growth Portfolio Objective To achieve long-term capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and property, with a core in the UK. IMA Sector* Sedol codes Flexible Investment (Acc) (Inc) B6QGLF5 (I Acc) B8K5LH4 (I Inc) XD date 01/3 01/9 Payment date 30/4 31/10 UK Equities 34.0% AXA Framlington UK Select Opps Cazenove - UK Opportunities Invesco Perpetual Income Jupiter Growth & Income Jupiter UK Special Situations US Equities 25.3% Findlay Park American Hermes US SMID Equity Jupiter North American Income European Equities 7.7% Threadneedle European Select Japanese Equities 8.4% CF Morant Wright Japan B Jupiter Japan Income Far East Equities 10.9% First State Asia Pacific Leaders B Other 13.4% ETF Securities - Physical Gold ETF Findlay Park Latin American Morgan Stanley Global Brands Cash* 0.3% Ratings/ Awards For further explanations of terms and ratings please also visit the glossary in the help section of our website: * This includes an unrealised loss of -0.09% made from positions hedging exchange rate fluctuations. Performance 5 year percentage change and sector ranking to Position in Percentage Quartile sector growth ranking Performance 10/ % 1 Year on Year % Growth ending Percentage Growth -14.0% 26.3% 11.3% -4.3% 21.9% Rank 17/90 13/106 86/111 27/124 78/131 All performance in this factsheet is based on accumulation units in GBP. With effect from 17th July Past performance should not be seen as a guide to future performance. 5 year performance vs IMA Flexible Investments sector average Percentage Change 50% 40% 30% 20% 10% 0% -10% -20% -30% Jupiter Merlin Growth Portfolio IMA Flexible Investment -40% May 08 May 09 May 10 May 11 May 12 May 13

5 Fund Value: 866m Launch Date Jupiter Merlin Worldwide Portfolio Objective To achieve long-term capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and property. IMA Sector* Sedol codes Global (Acc) (Inc) B53LG95 (I Acc) B8D78Y3 (I Inc) XD date 01/6 Payment date 31/7 US Equities 32.3% Findlay Park American Hermes US SMID Equity JGF - Jupiter North American Equities European Equities 12.1% JGF - Jupiter European Opportunities Threadneedle European Select Japanese Equities 13.6% CF Morant Wright Japan B JGF - Jupiter Japan Select Far East Equities 12.4% First State Asia Pacific Leaders B Other 29.3% Blackrock Gold & General Findlay Park Latin American Fundsmith Equity Jupiter Global Energy Cash* 0.3% * This includes an unrealised loss of -0.01% made from positions hedging exchange rate fluctuations. Ratings/ Awards For further explanations of terms and ratings please also visit the glossary in the help section of our website: Performance 5 year percentage change and sector ranking to Position in Percentage Quartile sector growth ranking Performance 71/ % 2 Year on Year % Growth ending Percentage Growth -16.1% 28.6% 9.0% -5.4% 22.1% Rank 31/183 59/ /211 64/ /242 5 year performance vs IMA Global sector average Percentage Change 40% 20% 0% -20% Jupiter Merlin Worldwide Portfolio IMA Global All performance in this factsheet is based on income units in GBP. With effect from 17th July Past performance should not be seen as a guide to future performance. -40% May 08 May 09 May 10 May 11 May 12 May 13

6 Fund Value: 25m Launch Date Jupiter Merlin Conservative Portfolio Objective To achieve long term capital growth with income by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups (where the underlying funds invest in fixed interest stocks, equities, commodities and property internationally); and directly in international fixed interest securities (including investment grade bonds, high yield bonds, government bonds, preference shares and convertible bonds), together with cash deposits and money market instruments. IMA Sector* Mixed Investment 0-35% Shares Sedol codes B8GDMB3 B8GDMD5 B8GDLS3 (I Acc) B8GDLV6 (I Inc) Historic yield (Inc) 3.5% Historic yield (Acc) 3.5% Historic yield (I Inc) 3.5% Historic yield (I Acc) 3.5% XD date 01/12 01/03 01/06 01/09 Payment date 31/01 30/04 31/07 31/10 UK Equities 16.7% Invesco Perpetual High Income Jupiter UK Special Situations Fixed Interest 61.6% CG Dollar Portfolio Jupiter Corporate Bond Jupiter Strategic Bond Kames High Yield Bond Liontrust Global Strategic Bond Threadneedle Emerging Market Bond Other 20.1% ETF Securities - Physical Gold ETF M&G Global Dividend Morgan Stanley Global Brands Newton Asian Income Cash 1.6% Ratings/ Awards For further explanations of terms and ratings please also visit the glossary in the help section of our website: The Historic Yield reflects distributions paid or declared over the past twelve months as a percentage of the mid-market unit price as at the date shown. It does not include any initial charge and investors may be subject to tax on their distributions. All of the Fund s expenses are charged to capital. This will have the effect of increasing the distributions paid on an annualised basis on Retail Units by up to 2.00% of the class average Net Asset Value and constraining the class capital performance to an equivalent extent. Important Information: Due to the Jupiter Merlin Conservative Portfolio s recent launch, past performance data will not be available until the fund has been running for a year.

7 Multi-manager Funds Jupiter Merlin Portfolios Charges Initial charge Initial charge I Classes AMC AMC I Classes OCF OCF I Classes Jupiter Merlin Balanced5.25% 0.00%1.50% 0.75% 2.41% 1.66% Jupiter Merlin Conservative5.25% 0.00% 1.25% 0.50% 2.00% 1.25% Jupiter Merlin Growth5.25% 0.00%1.50% 0.75% 2.56% 1.81% Jupiter Merlin Income5.25% 0.00%1.50% 0.75% 2.36% 1.61% Jupiter Merlin Worldwide5.25% 0.00%1.50% 0.75% 2.56% 1.81% Minimum Investments* Lump sum Top-up Monthly Unit Trust ISA investment Initial Investment I Classes 5,000,000 * RWF not available under 5,000 for investments in the Jupiter Merlin Portfolios. For more information visit Fund Management Team John Chatfeild-Roberts is head of the Jupiter Independent Funds Team and is a Main Board Director of Jupiter. Peter Lawery joined John in 1997 and Algy Smith-Maxwell completed the team in Risks Enhanced Reporting We provide in-depth reporting to keep you informed, not confused. Portfolio statements include Manager s Commentary as at 5 April and 5 October plus six monthly Manager s Reports. Regular withdrawal facility This is available for all the Jupiter Merlin Portfolios with a minimum lump sum investment of 5,000 per portfolio. You can choose the amount paid to you each month or quarterly. Any such withdrawals which exceed investment returns will result in an erosion of capital. Past performance should not be seen as a guide to future performance. The value of an investment and the income from it may fall as well as rise and may be affected by exchange rate variations and you may not get back the amount invested. Charges tend to be higher than for conventional Unit Trusts to allow for a portion of the charges applicable to underlying funds. On average this works out at around 0.7% of the net asset value per annum. These funds can invest more than 35% of their value in securities issued or guaranteed by an EEA state. The NURS Key Investor Information Document (KIID), Supplementary Information Document (SID) and Scheme Particulars are available from Jupiter on request. 3rd Party Links The Jupiter Merlin Portfolios are available via a wide range of platforms, wraps, and Life and Pension companies both onshore and offshore. redefining WEALTH standards The outlook expressed in this factsheet represents the views of the fund manager at the time of preparation and are not necessarily those of the Jupiter Group as a whole. They may be subject to change and should not be interpreted as investment advice. The manager has the power to use derivatives but it is intended that these will only be used for the purpose of efficient portfolio management and not for investment purposes. Jupiter Unit Trust Managers Limited is authorised and regulated by the Financial Conduct Authority whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS. Registered address: 1 Grosvenor Place, London SW1X 7JJ. Quoted yields are not guaranteed. Current tax levels and reliefs will depend on your individual circumstances. For your security we may record or randomly monitor all telephone calls. If you are unsure of the suitability of this investment please contact your Financial Adviser. Copies of the half-yearly and annual reports may be obtained from Jupiter Asset Management Ltd., 1 Grosvenor Place, London SW1X 7JJ. NURS Key Investor Information Document (KIID) and Supplementary Information Document (SID) may also be obtained from that address. Customer Services Telephone: Freephone: Fax: Website: Broker Sales Team Telephone: brokerdesk@jupiter-group.co.uk

8 In need of advice? If you do not have a financial adviser (IFA), we have included the details below of two organisations that can help you find one. Findanadviser.org The Personal Finance Society provide a free search service designed to help you find a local professional financial adviser. Website: Address: Personal Finance Society 20 Aldermanbury London, EC2V 7HY Unbiased.co.uk You can confidentially search for details of local IFAs by using the online Find an IFA search facility. Website: Address: Unbiased Ltd 2nd Floor 117 Farringdon Road London, EC1R 3BX Contact us Please do not hesitate to contact us if you require more information or would like to be sent further literature. Tel: (0) Fax: (0) Web: Jupiter Customer Services Department PO Box Chelmsford, CM99 2BG Further details and downloadable literature (including application forms) can be found by visiting: Web: Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Conduct Authority whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS. The registered address of JAM and JUTM is 1 Grosvenor Place, London, SW1X 7JJ. The group is collectively known as Jupiter. Jupiter Asset Management Limited acts as Investment Adviser to the Jupiter range of unit trusts which are managed by Jupiter Unit Trust Managers Limited. For your security we may record or monitor all telephone calls. 5088_ _11.31