Jupiter Merlin Income Portfolio I

A well managed income focused fund of funds investing predominantly in equities and bonds.

  • 140.90p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 329.67p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.48%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 28 May 2020

This is an income focused fund of funds, which also has the potential for capital growth, investing mainly in equities and bonds. Manager John Chatfeild-Roberts distinguishes himself from other fund of fund managers by aiming to achieve returns primarily through asset allocation. His main role is to determine the direction of markets and then to identify those fund managers that can best exploit the predicted conditions. Whilst investments are predominantly in the UK there is some overseas exposure.

Fund summary

Sector Mixed Investment 20-60% Shares
Structure UNIT TRUST
Launched September, 2011
Size £1,949m
Yield 2.80%
Charging basis Capital
Dividends paid 15 Mar, 15 Jun, 15 Sep, 15 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 1.48%

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Investment process

The fund's objective is to achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest mainly in equities and fixed interest stocks, although there is likely to be some exposure to commodities and property with a bias to the UK. The manager and his two experienced analysts determine their view on the direction of the economy and markets, which is then reflected within the managers they chooses for the fund. Chatfeild-Roberts subscribes to the view that the majority of added value from fund of fund products comes from having a view as to “what will happen next”. Historically he has moved aggressively into cash during adverse market conditions. Fund selection includes both quantitative and qualitative analysis, with around 100 fund manager meetings taking place each year. Funds are selected for the portfolio on a majority team basis.

Jupiter's fund of funds team have proven themselves to be one of the best in the industry over a long period of time. The team have been together for over a decade and have proven astute judges of the economic environment during that time, participating in rising markets but perhaps more importantly providing some protection for investors' capital during times of trouble.

Manager research

Average monthly relative returns

  • 15/16 -0.30%
  • 16/17 -0.49%
  • 17/18 0.14%
  • 18/19 -0.30%
  • 19/20 -0.25%

Bestinvest MRI

  • 3 years -0.14%
  • 5 years -0.24%
  • Career 0.00%
  • 3 years 53.20%
  • 5 years 24.50%
  • Career 92.80%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

John Chatfeild-Roberts

Chatfeild-Roberts studied Economics at Durham University before attending Sandhurst and undertaking a Short Service Commission in the Army. From 1989 to 1995 he was Head of Portfolio Management Services for Henderson Global Investors, before moving to Lazard to set up their multi-manager team. In 2001 he moved to Jupiter with his team, Algy Smith-Maxwell and Peter Lawery, to head their fund of funds operation. In February 2010 he became Jupiter’s CIO. Chatfeild-Roberts is a Fellow of the Securities Institute.

Track record

John Chatfeild-Roberts has 22.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +00%. During the worst period of relative performance (from February 2009 - January 2020) there was a decline of 35% relative to the index. The worst absolute loss has been 35%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is

Periods of worst performance

Absolute -35.00% (August 2000 - January 2003)
Relative -35.00% (February 2009 - January 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 October 2019

14.9351% Tb Evenlode Income C Inc
11.9841% Fundsmith Equity I Inc
9.7021% Jupiter Strategic Bond Inc
9.4649% Jupiter Uk Special Situations Inc
9.3694% M&G Strategic Corporate Bond A Inc Gbp
8.5594% Hermes Multi - Strategy Credit F Hedged Dis Gbp
6.2743% Mayfair Capital Commercial Property
5.9591% Jupiter Income Trust Inc
5.7274% Wisdomtree Metal Securities Limited Wt Physical Gold Usd
4.6666% Twentyfour Dynamic Bond M Gr Inc Gbp
Source: Trustnet

Sector breakdown

Financials 86.00%
Others 12.00%
Money Market 2.00%

Portfolio

The manager prefers a tight portfolio, taking meaningful positions in 10-20 funds.

Constraints

No more than 20% of the portfolio can be invested in any one fund, with a self-imposed limit of no more than 25% of the portfolio to be invested in Jupiter funds.

Key Investor Information - Income

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Key Investor Information - Accumulation

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