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Jupiter Merlin Growth cuts cash for developed markets

John Chatfeild-Roberts Jupiter 2012

The £1.7bn Jupiter Merlin Growth fund has cut its cash holding from just over 11 per cent to less than 1 per cent and piled into developed market equities.

According to FE Analytics, the Merlin team reduced the fund’s cash exposure to less than 1 per cent and increased its exposure to UK, Europe and US equities.

The team increased its UK exposure from 29 per cent to 34 per cent between the end of August and the end of September, and increased its North America exposure from 21 per cent to 24 per cent.

There was a significant rise in European exposure, up from 2 per cent to 7 per cent, while exposure to the international and Pacific Basin equities regions was also increased.

The team says: “At some point the Fed will have to withdraw liquidity and remove the punchbowl, but there is no sign of this happening until 2015 at the earliest.

“We have therefore reduced cash to low levels and have increased our exposure to equities and corporate and emerging market bonds where appropriate.”

Skerritt Consultants head of investments Andrew Merricks says: “Managers are making the move now because the risk of bad news happening has reduced and holding money in cash now makes less sense.”

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