Bestinvest says
Despite the large size of the portfolio, the manager is prepared to diverge markedly from the index in the search for above average returns, which can lead to periods of underperformance, whilst his view is out of tune with the market as a whole. Unfortunately this has generally been the case in recent years with performance proving to be disappointing. Consequently we have higher conviction in other managers within the peer group and the fund now has a one star rating. Note the bond component is chosen in conjunction with Jupiter's fixed interest team.
The equity portfolio is run along similar lines to the Jupiter Income fund (also managed by Nutt) with the bond component, chosen in conjunction with Jupiter's fixed interest team, typically kept to the 20% minimum required by the sector guidelines.
The use of convertibles and fixed interest stock allows the manager to hold lower yielding equities, including smaller companies and the fund can invest across the market capitalisation spectrum. This can lead to a small and mid cap bias for the fund compared to the benchmark. In terms of selecting stocks the manager tends to prefer out of favour or recovery situations although he is pragmatic. Company valuation is generally kept simple and stocks are usually evaluated on the basis of their relative value compared to peers in their industry. The Jupiter UK team's sector views and other points arising from internal discussion will also affect portfolio strategy.