Jupiter to launch Strategic Bond Fund

Investment manager Jupiter is to launch its Jupiter Strategic Bond Fund on June 2nd - the fund aimed at investors with a medium to long term outlook and who are seeking income with the potential for capital growth.

With a target yield of 7% it will offer a wide spectrum in terms of appetite for risk, with the ability to switch from a conservative to aggressive stance depending on circumstances.

It will be managed as a 'go-anywhere' fund, aiming to achieve long term capital growth from investing in all areas of the credit ratings market.

Manager of the new vehicle will be Ariel Bezalel, who has 10 years experience working in credit markets at Jupiter. He currently manages the fixed interest components of three unit trusts - Jupiter Global Managed, Jupiter High Income and Jupiter Monthly Income.

Bezalel, who will hold around 60 instruments in the portfolio, with a focus on European credit, believes credit markets present a potentially historic opportunity regarding valuations, particularly in the investment grade space.

He said: "The investment grade market is pricing in a severe recession and the high yield market is pricing in a sharp rise in defaults. Whilst I am cautious on the economic outlook, current valuations seem to offer potentially handsome rewards for the risk. This situation, in my view, presents the most compelling investment opportunity in credit we have seen for many years."

Minimum investment is £500 lump sum or £50 a month - charges coming in at 4% initial, 1.25% annual.

08 May 2008 © Moneyextra.com

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