View more on these topics

Jupiter’s Chatfeild-Roberts raises exposure to Latin America and Asia

Jupiter’s multi-manager head John Chatfeild-Roberts has ventured further into Asia and the emerging markets space in a bid to take advantage of what he believes will be a sustained market rally.

Chatfeild-Roberts has bolstered his investments into First State Pacific leaders as well as both Findlay Park’s Latin America and US smaller companies funds’ across the four-strong fund of funds range.

At the beginning of April the £2.3bn Merlin range held cash positions ranging from 15 per cent in the growth portfolio to 21.9 per cent in the balanced portfolio.

The cash weighting across the funds now stand between 3 and 5 per cent.

Chatfeild-Roberts says: “It does not surprise us that the best performing areas of the world have been among the emerging markets. Some of these sold off heavily in recent months, due to acute risk aversion, rather than any significant changes to the long term investment case. Emerging markets tend to be underpinned by strong domestic demand, a growing middle class and supportive demographics.

“There is also evidence of the earnings downgrade cycle bottoming out. We have begun to re-invest in specific geographical areas that, we believe, are structurally sound and where valuations have become extremely attractive. These include Latin America and Asia. We favour countries in these regions where national debt, household debt and inflation are under control.”

Chatfeild-Roberts says that few believe in the recent rally in markets while analyst forecasts have been overly pessimistic this year, having been optimistic in 2008.

He says: “Every time company results or bank losses are not as bad as feared – often because the 2008 comparator figures were worse -the market ticks up.

“At the same time, economic fundamentals remain weak and earnings’ visibility is poor. Unemployment is rising -US unemployment hit almost 9 per cent in April – and banks expect to post more loan losses. Nonetheless, given the huge amount of investor cash sitting on the sidelines and the need for hedge funds to cover their short positions, there is a good chance of this rally being sustained further than many think possible. We expect the market to become more discerning from here on in and for our underlying managers to benefit.”


Rally round

Equity markets have rallied hard from extreme pessimism and oversold levels in early March and there has been some recovery in the credit markets, with prices hardening and spreads narrowing as liquidity returns. The turn-round has been remarkable but have investors cast aside their pessimism too quickly?

Planning now for the residence nil-rate band

Graeme Robb, senior technical manager at Prudential, writes about the residence nil-rate band and the advice opportunities it presents for you when tax year-end planning with your clients. On our Planning Matters hub, we considered a widow, Margaret, and a married couple, John and Anne, for whom the residence nil-rate band (RNRB) is influencing planning […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm