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Jupiter launches multi-asset income fund for Tailb Sheikh

Jupiter has launched a flexible income fund for Tailb Sheikh, the multi-asset veteran who joined from JP Morgan earlier this year.

Jupiter launches multi-asset income fund for Tailb Sheikh

Jupiter has launched a flexible income fund for Talib Sheikh, the multi-asset veteran who joined from JP Morgan earlier this year.

The mandate will target a yield of 4-6% and have an ongoing charges figure of 0.76% for institutional clients.

The fund size at launch is €55 million (£48.7 million). It does not have a stated benchmark.

Sheikh will focus on four areas of yield: fixed income, equities, ‘flexible’ assets such as currencies, futures and options, and alternatives such as real estate investment trusts and convertibles.

Sheikh (pictured), head of multi-asset strategy at Jupiter, said there was ‘a clear need for alternative options’ for investors in multi-asset income, with the 10 biggest global mandates holding £85.3 billion, equivalent to 65% of sector assets.

Sector concentration had worsened in recent years as the sector had expanded, he pointed out. In 2010 the top ten mandates held £8.8 billion, or just over half of the cash invested in the sector.  

He said: ‘While interest rates are starting to rise across Europe, the real yield accounting for inflation is actually falling. Investors’ purchasing power is being eroded faster than at any time since the great financial crisis.

‘The need for progressive income generation is a theme that is only growing in importance as life expectancies continue to increase in the developed world.

Sheikh officially joined Jupiter in June having decided to quit JP Morgan in February after almost two decades with the investment giant.

Sheikh was named on seven funds in the Citywire database covering mixed and multi-asset approaches which at the time of his departure had combined assets in excess of €30 billion (£26.6 billion).

In market commentary alongside the fund launch, Sheikh said he is eyeing up America and expects US economic growth to hold up despite quantitative tightening continuing to affect emerging markets.

He said the US economy is ‘an embarrassment of riches’ and that ‘investors like what they see’ as US president Donald Trump’s pro-growth policies, including $1.5 trillion worth of tax cuts, take effect.

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