Jupiter launches ‘alternative’ income fund

Inocme fundJupiter has launched a flexible income fund that targets traditional and non-traditional income assets, the firm said.

The Jupiter Flexible Income Fund managed by Talib Sheikh will look to create income across various asset classes globally and has an initial yield estimated to be 4-6% with the prospect of capital growth over three to five years.

The fund will invest in a variety of income generating assets across capital structures in both traditional and non-traditional asset classes, Jupiter said.

Sheikh joined Jupiter in June this year from JP Morgan Asset Management. 

Sheikh, who is also head of strategy, multi-asset, 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.”

He also said that the ten biggest global multi-asset income funds today make up 65% of assets in this segment with combined assets of €96 billion, compared with 53% and €10 billion in 2009. Sheikh said this presented a need for alternative options.

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