With 28.2% of the Jupiter Merlin Income Portfolio held in cash, you could never describe manager John Chatfield-Roberts as blindly bullish on markets.
But no matter how ugly things get, the Durham University graduate believes you have to take big bets to reap rewards. “If you have a good idea, you must back your convictions to truly see the benefits of your call. Even in difficult markets, you have got to back your calls.”
That’s why the fund of funds sticks to about 14 holdings, with the top three each comprising more than 9% of the portfolio. One sector that definitely isn’t there is property. “Six or seven years ago we were keen,” Chatfield-Roberts tells The Mail on Sunday. “But now we think the reality of the commercial property market is that values will go down,” he says, pointing to the poor performance of the New Star Property and Norwich Property Trust funds.
He likes Asia, however, where improved balance sheets and greater inter-regional trade have helped one of his biggest holdings, First State. “We have known [manager] Angus Tulloch for a long time and like what he’s doing,” he tells Financial Adviser.
The fund has been one of the best performers in a portfolio that’s returned 70% in the past five years. “All of Jupiter’s managers have been around the block,” Mark Dampier of Hargreaves Lansdown tells the Daily Mail. But even by their standards, Chatfield-Roberts has “a wealth of experience and is one of the best fund of fund managers around”.
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Jupiter Merlin Income Portfolio top ten holdings
Name of holding, % of assets
Artemis Income Fund, 9.79%
Invesco Perpetual Income Inc, 9.53%
Jupiter Income Trust Fund, 9.47%
First State Asia Pacific Fund, 7.39%
Rathbone Income Fund, 5.02%
Royal London Sterling Extra Yield Bond A, 5.02%
Thames River High Income GBP, 4.85%
Jupiter UK Growth Fund, 4.68%
Axa Framlington Equity Income Fund, 3.89%
Old Mutual Corporate Bond Inc, 3.69%