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Jupiter fund takes dollar bets as sterling flounders

Jupiter strategic bond fund manager Ariel Bezalel has introduced dollar currency exposure to the fund as he feels sterling has further to fall.

The £447m fund has taken an 8 per cent position in US dollars. This is only the second time it has taken currency bets.

Bezalel says: “There is more downside to be had in sterling as the Bank of England comes round to quantitative easing, putting more pressure on sterling. The UK outside of London is in recession and I fear London will get there as well.”

Bezalel says as half of the UK’s exports go to Europe, Britain will feel the pinch as the European crisis continues. He adds that UK consumers are already suffering high inflation and low income growth.

If the volatility in Europe continues, Bezalel will further increase his dollar exposure.

JP Morgan international chief investment officer of fixed income Nick Gartside sold down the 10 per cent emerging market currency exposure in the £80.8m strategic bond earlier this year and put part of it in dollar exposure.

Gartside says: “We were concerned about a flare-up of risk and emerging market foreign exchange is very sensitive to risk. Dollar is the real beneficiary in any environment where you have risk-aversion. In that environment, you can expect the dollar to perform strongly.”

Dennehy Weller & Co managing director Brian Dennehy says: “In extremes, it is the US dollar and short-dated US treasuries that are the safe havens. In the sort of environment we are in now, we are likely to see dollar strength particularly versus the euro.

“I would be comfortable with a bond manager heavily increasing dollar exposure.”


Castlestone confirms UK closure

Castlestone Management has confirmed that it is to wind down its UK operations, after announcing the closure of its Dublin-domiciled fund range earlier this year. A spokesman for the company confirmed that the UK business will be wound down as there was “no need” to keep it open. The remaining non-Ucits funds managed by Castlestone […]


Ford hits out at Lifemark loan deal delays

Keydata founder Stewart Ford has hit out at Lifemark provisional administrator Eric Collard of KPMG Luxemburg for failing to progress a loan facility of up to £91m aimied at taking Lifemark out of administration. Money Marketing revealed in August that Ford (pictured) had arranged the facility with a US bank prepared to offer up to […]

Lighthouse profits hit by Falcon costs as adviser numbers fall

Lighthouse posted a £2.4m loss for the first half of 2011, compared to a £117,000 profit in the first half of 2010, after incurring costs of almost £3m for the winding down of Falcon. Lighthouse put the £2.9m non-recurring charge down to a £2.5m provision for closure costs and other potential liabilities, added to £400,000 […]

Cofunds appoints Paul Miller as risk and compliance director

Cofunds has appointed Paul Miller as risk & compliance director, subject to FSA approval.   Miller joins on October 3, and will be in charge of overseeing the risk and compliance functions.  Miller was previously chief risk and compliance officer at Skandia. Cofunds chief executive Martin Davis says: “Paul has a wealth of industry experience […]

Europe 2017: Value, large-caps & liquidity

Joshua Ausden, Head of Client Investment Strategy, Neptune Read more here Important Information – for Investment Professionals Only. Not for Retail Clients.Investment risksNeptune funds may have a high volatility rating and past performance and forecasts are not a guide to future performance. These are Neptune’s views and as such this document is deemed to be […]


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