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Jupiter slashes cash weightings across £6.8bn Merlin range

Jupiter’s multi-manager team has significantly cut the cash weightings across its £6.8bn Merlin range.

The team, headed by John Chatfeild-Roberts, has cut the cash weighting on its income, balanced and growth portfolios by a third, with the cash allocation to its worldwide portfolio more than halved.

Despite lowering the cash weighting on its £3.2bn income portfolio from 12.5 per cent to 8.1 per cent, the team has also removed its exposure to both the £3.3bn Invesco Perpetual monthly income plus and £401m tactical bond funds managed by Paul Causer and Paul Read. The team has added exposure through the £930m Newton Asian income fund managed by Jason Pidcock.

On the removal of the Invesco pair, a Jupiter spokeswoman says: “The Merlin team took the decision to minimise the underlying fund exposure to financial corporate debt over this period. The team remain confident in corporate debt as an asset class but, from a risk/reward perspective, has seen fit to reduce exposure where they can.”

The cash weighting on the £1.5bn growth portfolio has been cut from 11.2 to 7.4 per cent, while the £1.2bn balanced portfolio cut cash from 12.3 to 7.8 per cent. The firm has added to its Far East equities exposure as well as its alternative products stable, which includes BlackRock world energy fund and the ETF Securities – physical gold ETF.

The £762m worldwide fund has had its cash exposure more than halved from 10.2 to 4.8 per cent. The Merlin team has introduced the Jupiter global energy fund to this portfolio. The fund, managed by Derek Pound, was launched last month.

Whitechurch Securities managing director Gavin Haynes says: “I think the sell-off is an opportunity as it has been magnified in some areas. The Invesco bond fund sell-off is no surprise as they have a position in financials, which is an unpredictable area of the market.”

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