PORTFOLIOS. The Jupiter Merlin Portfolios ON THE PLANET TO PERFORM. On the planet to perform

Transcription

1 PORTFOLIOS The Jupiter Merlin Portfolios ON THE PLANET TO PERFORM On the planet to perform

2 CONTENTS Welcome to Jupiter 1 An Introduction to multi-manager funds 2 Why choose a multi-manager fund? 3 Jupiter Independent Funds Team 4 The Jupiter Merlin Portfolios 5 How to invest 6 Investing in the Jupiter Merlin Portfolios 7 Contact us Please do not hesitate to contact us if you require more information. Tel: (0) (if calling from outside the UK) Fax: (0) (if calling from outside the UK) Web: ACTIVE INVESTING

3 WELCOME We are delighted that you are interested in finding out more about Jupiter s range of unit trust funds. In this brochure we have provided you with information on the Jupiter Merlin Portfolios and the award-winning Jupiter Independent Funds Team who manage them. Multi-manager expertise The Jupiter Independent Funds Team consists of fund managers John Chatfeild-Roberts, Algy Smith-Maxwell, Amanda Sillars, David Lewis and product specialist Alastair Irvine. Together, the team members are completely focused on generating outperformance for their clients using the multi-manager concept. Our investment strategy At Jupiter our multi-manager funds operate on an unfettered basis. This means the Jupiter Independent Funds Team is not restricted to investing in only Jupiter s own funds as is the case with many other multi-manager funds in the market. Instead they are allowed to invest in what they consider to be the best funds from across the entire market with the aim of providing returns over and above those available from both competitors and the main market indices. Our history Jupiter was founded in 1985 with the aim of delivering strong performance for investors through active fund management. Welcoming you We look forward to welcoming you as a Jupiter investor very soon. Please remember that your investment decisions should be based not only on your investment objectives but your attitude to risk of losses too. Once you have invested you should also regularly monitor your selected investments. At Jupiter we believe it may be worth consulting a financial adviser to help you select and review your investments as Jupiter is not authorised to give advice. Please remember that 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. John Chatfeild-Roberts Head of the Jupiter Independent Funds Team It is a principle we have continued to adhere to and has helped us become one of the most respected fund management groups in the UK. We currently manage some 33.5bn (as at ) of both personal and institutional money. In 2007 Jupiter became majority owned by its employees and in June 2010 Jupiter s holding company, Jupiter Fund Management plc, was listed on the London Stock Exchange. The majority of our fund managers invest their own money into Jupiter funds. We believe that this creates a stable environment in which our fund managers are committed to the business for the long term, with their interests aligned with those of our customers. Important: Please ensure you read the Scheme Particulars, the NURS Key Investor Information Documents (KIIDs) and the Supplementary Information Document (SID) before making an investment decision. These documents contain important information including risk factors and details of charges. These documents and the fund factsheets are available from Jupiter on request. JUPITERAM.COM 1

4 AN INTRODUCTION TO MULTI-MANAGER FUNDS With around 2,000 funds in the UK alone to choose from, researching and making your own investment decisions is no easy task. To make things even more complicated, you will no doubt have read about the importance of creating a well-diversified portfolio. In other words why, when it comes to your investments, you shouldn t put all your eggs in one basket. With such an array of funds available, the first problem is to go about choosing the right funds. When you choose an investment fund it will usually have very specific aims and in striving to achieve these, the fund manager will be required to operate within certain parameters. For example, which asset classes (e.g. equities, bonds, property or cash) must the fund manager invest in? In which geographical region will your money be invested? Does the fund only specialise in a particular sector (e.g. financial or technology companies)? You will, of course, find that there are some funds available that aim for a broader and more balanced investment approach, but even these are unlikely to spread your investment across a wider range of assets than if you held a number of separate funds. What is a multi-manager fund? As the name suggests, a multi-manager fund predominantly invests in a number of other underlying funds, i.e. multiple fund managers. Unlike other traditional funds which invest directly in stocks and shares, these funds invest into other funds including unit trusts, open ended investment companies (OEICs), exchange traded funds and other collective investment schemes. Fettered or Unfettered? Role of a multi-manager fund manager Selection from available funds The job of a multi-manager fund manager is to know about fund managers in the same way that other fund managers know about equities or bonds. As depicted in the diagram above, they use their expertise to blend the best funds, in their opinion, from across a range of asset classes and geographical regions all into one single fund. Some multi-manager fund managers are also able to invest directly in equities and bonds. Diversification built-in Single investment vehicle Asset classes / geographical regions Why is it so important to spread your investments and how can choosing a multi-manager fund help? It is important to get your fund selection right because being in the right funds at the right time, or conversely the wrong funds at the wrong time, can have dramatic consequences for your returns. Fettered multi-manager funds The manager can only invest in the funds of the investment house that employs them. Spreading your investments across a wide range of asset classes, investment types and fund managers helps reduce your exposure to a specific asset class or fund should it suffer a fall in value during a period of volatility. Unfettered multi-manager funds The manager can invest in the funds which they believe to be the best from across the entire market. 2 ACTIVE INVESTING

5 WHY CHOOSE A MULTI-MANAGER FUND? Maintaining a balanced portfolio can be increasingly difficult for an individual investor, as markets fluctuate over the short term. Key features In volatile market conditions investment opportunities undoubtedly exist if you know where to look and what to look for. It can, however, be very challenging and time consuming for an individual investor to identify and make the most of them. Multi-manager funds are a popular choice amongst investors and financial advisers alike and for good reason, as they offer a number of benefits Diversification: Multi-manager funds offer a one-stop solution to the difficulties of fund selection and diversification. Investment is spread across a range of funds which the multi-manager fund managers believe are likely to be the best performers in the market. Potentially an ideal core holding: A balanced portfolio will usually contain a number of funds giving you access to a broad range of markets and sectors. A multi-manager fund however can be an ideal single core holding providing a diversified portfolio within one easy investment. Actively managed: Jupiter s managers continually research the industry and assess the investment environment on your behalf. This kind of research and fund selection requires a great deal of time and expertise which is not available to most investors. Balance/risk management: By investing in a multi-manager fund, you can spread your investment risk across a broad range of funds, meaning that your portfolio is not dependent on just one fund, asset class or geographical region. The manager will also aim to reduce risk by anticipating and avoiding areas they believe may be n egatively affected by market conditions. Consolidation tool: Over time you may have accumulated a portfolio of funds which are not meeting your investment goals, or may simply be underperforming. Consolidating your investments into a multi-manager fund can bring balance, focus and performance potential back to your portfolio. Tax efficiency: Within a multi-manager fund, the managers can switch underlying funds as often as is necessary without having to pay any Capital Gains Tax (CGT)*. The only time CGT may become a factor is when you come to sell the fund itself and your profits exceed your annual CGT allowance at that time. Risks and charges: In line with other multi-manager funds generally, charges for the Jupiter Merlin Portfolios tend to be higher than for conventional Unit Trusts to allow for a portion of the charges applicable to underlying funds. All of the Jupiter Merlin Income, Jupiter Merlin Balanced and Jupiter Merlin Conservative s expenses are charged to capital, which can reduce the potential for capital growth. These portfolios can invest more than 35% of their value in securities issued or guaranteed by an EEA state. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and your clients may get back less than originally invested. *This is based on our understanding of current tax laws and may be subject to change in the future. JUPITERAM.COM 3

6 JUPITER INDEPENDENT FUNDS TEAM The Jupiter Merlin Portfolios are managed by the award-winning Jupiter Independent Funds Team, consisting of fund managers John Chatfeild-Roberts, Algy Smith-Maxwell, Amanda Sillars, David Lewis and product specialist Alastair Irvine. Team experience With decades of industry experience between them, the Team, is completely focused on generating outperformance for their clients using the multi-manager concept. An important factor of their success is that the team sits with the rest of the investment talent at Jupiter and are able to benefit from the expertise and ideas of other highly skilled individuals. Jupiter Independent Funds Team Open minded investment strategy Unlike some other multi-manager fund managers, Jupiter s Team have an open-minded attitude. They believe that the most important factor in how a fund is likely to perform is the individual who runs it and so they interview managers face-to-face to gain first-hand information. What the Team is interested in... Fund manager tenure From left to right: John Chatfeild-Roberts, David Lewis, Amanda Sillars, Alastair Irvine and Algy Smith-Maxwell. It is my job, along with the team, to put in all the leg-work for our investors, deciding when it makes sense to hold which funds. We aim to provide the best performance over the medium to long term through a diversified selection of funds that should also provide investors with a lower overall level of portfolio risk. John Chatfeild-Roberts Fund management style Performance achieved vs risks taken Likelihood of future success Selection approach Some managers will not look at any fund that does not have a three-year track record, even if the manager running it has many years of experience managing other funds. Others will avoid all funds below a pre-determined size, even though small funds are acknowledged to be more nimble and flexible. However, our managers believe that in their search to provide you with better investment returns, each fund should be looked at on its own merits. They use their expertise to select who they consider to be the best fund managers in each asset class and region, with the aim of producing the best possible returns. 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. 4 ACTIVE INVESTING

7 THE JUPITER MERLIN PORTFLIOS Jupiter offers you a choice of five multi-manager funds, collectively known as the Jupiter Merlin Portfolios. Each portfolio is constructed differently so you can choose one that best matches your attitude to risk and your investment objectives. Five portfolios to meet your objectives The five Jupiter Merlin Portfolios have different geographical weightings, and offer differing mixes of equities, fixed interest assets and other asset classes. The diagram below shows how the Portfolios asset allocations fit together, creating a varied range from the most cautious Jupiter Merlin Conservative Portfolio to the more adventurous Jupiter Merlin Worldwide Portfolio. The Jupiter Merlin Portfolios Jupiter Merlin Conservative Portfolio may be suitable for capital growth and income seeking investors looking to invest in fixed interest, (e.g. bonds) and equities for the first time or alternatively an investor seeking to diversify an existing portfolio of investments. Jupiter Merlin Income Portfolio designed for income investors seeking a well-diversified portfolio. May also suit a growth investor who wants to adopt a more cautious approach by accumulating income. 60% Equities 30% Fixed* Interest Jupiter Merlin Income Portfolio Income Jupiter Merlin Balanced Portfolio potentially suitable for both growth and income investors who want to benefit from stock market growth but don t want to commit entirely to equities. Jupiter Merlin Growth Portfolio a highly diversified portfolio designed for growth investors seeking a fund that invests in the world s major stock markets whilst retaining a UK bias. Jupiter Merlin Worldwide Portfolio blends a truly global strategy with a multi-manager approach and may appeal to investors whose existing portfolio is biased towards a specific region, e.g. the UK. For more information on the Jupiter Merlin Portfolios, please see the fund factsheets that are available on request or at jupiteram.com 85% Equities maximum 100% Equities 100% Equities Jupiter Merlin Balanced Portfolio Jupiter Merlin Growth Portfolio Jupiter Merlin Worldwide Portfolio Income & Growth Growth Worldwide Growth Charges tend to be higher than for conventional Unit Trusts to allow for a portion of the charges applicable to underlying funds. All of the Jupiter Merlin Income, Jupiter Merlin Balanced and Jupiter Merlin Conservative s expenses are charged to capital, which can reduce the potential for capital growth. These portfolios can invest more than 35% of their value in securities issued or guaranteed by an EEA state. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and your clients may get back less than originally invested. Maximum allowed percentage under sector requirements within each fund. Percentages may vary and include cash holdings as part of fixed interest. *Minimum allowed percentage under sector requirements within each fund. The Jupiter Merlin Portfolios also have the option to invest in property. With the exception of the Jupiter Merlin Conservative and Jupiter Merlin Balanced Portfolio which were launched on the and respectively, the Jupiter Merlin Portfolios were managed by John Chatfeild-Roberts and his team at Lazard from until On , the management of these Funds was fully transferred to Jupiter Unit Trust Managers Limited under the same management team. JUPITERAM.COM 5

8 HOW TO INVEST Investing in a Jupiter fund is straightforward. Below we have highlighted four simple steps to remember. 1 Ask Ask yourself what sort of an investor you are Before investing its important to consider how long you wish to invest for and how much risk you are comfortable exposing your money to. Your investment time horizon will also influence the risk you may be willing to take and therefore the return you may receive. For example, an individual 30 years from retirement may be willing to take on more risk for potentially higher returns whereas an individual five years from retirement may look for a lower risk investment to reduce the risk of losing their capital. 2 Decide Decide how and how much you want to invest You can invest a lump sum directly into one of Jupiter s funds. This can be a new investment, a transferred investment from another fund provider or you could choose to shelter your investment from tax by investing via a tax efficient* Stocks & Shares ISA wrapper. Alternatively you could set up a monthly savings scheme and invest as little as 50 on a monthly basis by Direct Debit. You can invest monthly into a Stocks & Shares ISA but the payments cannot exceed the total annual investment limit set by the Government. See the investment limits at a glance table on the following page for further information. 3 Read Read the Key Investor Information Document (KIID) Read the Scheme Particulars, the NURS KIID and the Supplementary Information Document (SID) for the Portfolio you are considering investing in before making an investment decision. These documents contain important information including risk factors and details of charges. These documents and the fund factsheets are available from Jupiter on request. 4 Complete Contact us Please do not hesitate to contact us if you have any questions or if you would like to be sent further information or literature. Tel: (0) (if calling from outside the UK) Fax: (0) (if calling from outside the UK) In need of advice We always recommend you speak to a financial adviser before making an investment decision. If you require financial advice but do not have a financial adviser, we have provided details of two organisations that can help you find one. Please see the back cover of this brochure for contact details. *Jupiter is not permitted to provide tax advice. This is based on our understanding of current tax laws and may be subject to change. The tax benefits of an ISA wrapper depend on the underlying product and your individual situation. Income distributions paid by Stocks & Shares ISAs still suffer a 10% tax deduction. Complete and send us your application form If you need guidance with completing your form(s) please call our Jupiter Customer Services team who are happy to assist. Enclose your cheque made payable to Jupiter Unit Trust Managers Limited, or the completed Direct Debit or Maestro/Delta form with the relevant application form(s) in the pre-paid envelope provided and post them to us. Alternatively you can set up your Direct Debit over the phone. 6 ACTIVE INVESTING

9 INVESTING IN THE JUPITER MERLIN PORTFOLIOS Maintaining a balanced portfolio can be increasingly difficult for an individual investor, as markets fluctuate over the short term. There are multiple ways of investing in the Jupiter Merlin Portfolios. You can invest as much as you wish directly into the Portfolios as a lump sum payment. If you wish to shelter your lump sum investment from tax you could invest via a tax efficient* Stocks & Shares ISA wrapper, however, you must bear in mind you can only invest up to the individual ISA allowance limit in one tax year within an ISA. Alternatively, you can invest on a monthly basis for as little as 50 a month. Just like lump sum payments, you can also invest those monthly payments via an ISA wrapper. However, the individual monthly payments must not exceed the total maximum investment level for the 2015/16 tax year you can invest up to, but no more than, 1,270 per month. The following table gives you a quick overview of the minimum and maximum investment limits should you choose to invest directly or via a Stocks & Shares ISA Investment limits at a glance Jupiter Merlin Portfolios Stocks & Shares ISA 2015/2016 Stocks & Shares ISA 2016/2017 Lump sum (min) 500 ( 250 for top-ups) 500 ( 250 for top-ups) 500 ( 250 for top-ups) Lump sum (max) No Limit 15,240 15,240 Monthly (min) Monthly (max) No Limit 1,270 1,270 The above information is based on our knowledge of current ISA regulations which may be subject to change. Assumes 12 equal monthly payments are made up to the total value of 15,240. Please note taxation rules may change and how this will affect you will depend on your individual circumstances. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and your clients may get back less than originally invested. Income and accumulation units Each Jupiter Merlin Portfolio issues both income and accumulation units and as a unit holder you would be entitled to receive any income arising from them. Before returning your application form please identify which units you wish to invest in. Income Units In respect of income units**, the net income available for distribution, if any, is paid to you. Accumulation Units With accumulation units, the net income, if any, is not paid to you, but is reinvested within the Portfolio and reflected in the price of the units. *Tax rules are dependent on your individual circumstances and are subject to change in the future. Jupiter is not in a position to offer tax advice. **If in the respect of a particular period the average allocation to unit holders is to be less than 25, Jupiter reserves the right to credit the income to capital and this will be reflected in the value of the units. Regular withdrawal facility After making your initial investment you can apply to start receiving fixed monthly or quarterly payments at any time. A minimum investment of 5,000 per fund is required for unit trusts, new ISAs and ISA transfers. Please note that this facility is only available if you have invested in accumulation units of the Jupiter Merlin Portfolios range. It is important to note that if you have selected the regular withdrawal facility, any regular withdrawal in excess of the income yield and/or capitalised appreciation of the Jupiter Merlin Portfolio will lead to capital erosion. In order for the capital value to be maintained, your holding in the Jupiter Merlin Portfolio will have to grow in excess of the amount that you take out under the regular withdrawal facility. More about ISAs For further information on Individual Savings Accounts (ISAs) and personal allowances please visit: JUPITERAM.COM 7

10 In need of advice? We recommend you discuss any investment decisions with your financial adviser as Jupiter is unable to provide investment advice. If you do not have a financial adviser, we have included the details below of two organisations that can help you find one. Findanadviser.org The Personal Finance Society provides a free search service designed to help you find a local professional financial adviser. Website: Address: Personal Finance Society 20 Aldermanbury London, EC2V 7HY 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 Unbiased.co.uk 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: 8 ACTIVE INVESTING

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12 Important information: This document is for informational purposes only and is not investment advice. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Conduct Authority and their registered address is The Zig Zag Building, 70 Victoria Street, London SW1E 6SQ No part of this document may be reproduced in any manner without the prior permission of JUTM and/or JAM. For your security we may record or monitor all telephone calls.