Jupiter unveils Strategic Reserve fund for Geldard and Manzi

Jupiter has launched the Strategic Reserve fund for multi-asset specialists Miles Geldard and Lee Manzi, aiming to deliver a total return with low volatility.

The fund, an onshore version of the Luxembourg-domiciled Jupiter Strategic Total Return fund, will invest in equities, corporate and convertible bonds, government bonds and currencies.

Geldard (pictured) and Manzi will be agnostic in their approach to asset classes, and will aim to provide a liquid and transparent offering seeking asymmetric investment opportunities.

Geldard said currency positions form a significant part of the fund at present, with two key calls being to short the Japanese yen and the Australian dollar.

The manager said his short duration position in government bonds means he feels little need to “double up” risk appetite by also taking significant positions in other risk assets such as equities.

But he did sound a warning over the dangers of viewing corporate bonds on a relative basis.

“While spreads are good, we should remember what these spreads are over – that is, close to zero in some cases. In relative terms, corporate bonds look cheap, but in absolute terms they may not.

“Another cautionary factor would be the amount of money going into credit in any form is absolutely breaktaking,” he said.

 

This article was first published on Investment Week

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