Jupiter is product testing an income producing fund among intermediaries which, when launched, will ...
Jupiter is product testing an income producing fund among intermediaries which, when launched, will invest in a split between corporate bonds and yield-generating equities.
The fund, which will not be on offer until next year and has not yet been submitted to the FSA for approval, would be split between roughly 60% corporate debt and 40% equities.
The split will be actively managed by Jupiter and the portfolio will aim to offer a yield of around 5% to 5.5%, orienting it towards risk averse investors. The relative lack of correlation between the capital growth characteristics of corporate bonds and equities reduces the potential for capital to be eroded, Jupiter believes.
The equity income element of the fund is likely to be managed by Tony Nutt, manager of Jupiter's £1.37bn Equity Income fund. The corporate bond element would be run by John Hamilton, who currently manages the group's £44.3m Corporate Bond fund, ranked 30 and 53 out of 58 and 77 funds over the one and three years to 6 November respectively.
The fund is not the first to invest in a split between equities and corporate bonds. The Invesco Perpetual Monthy Income Plus fund invests up to 20% in equities.
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