Jupiter launches pension freedoms fund for Gunn and Petheram

Jupiter Asset Management has launched a new mixed-asset income fund to be run by Alastair Gunn and Rhys Petheram.

The Enhanced Distribution fund will invest in stocks and bonds and aims to provide a regular income for investors following retirement or those looking for capital growth.

The new fund “complements” Jupiter’s mixed asset product range, sitting between the lower risk Jupiter Distribution Fund aimed at cautious investors, and the Jupiter High Income Fund, with its higher risk profile due to greater stock exposure. Gunn and Petheram already manage the distribution and high income funds, which combined have just over £1bn in assets. 

Within the Jupiter Enhanced Distribution fund there will be a flexible split between stocks and bonds, although the managers will seek a 40:60 split in favour of bonds.

Compared to the distribution fund, the new fund seeks a higher level of income and will have a higher exposure to equities at launch, a Jupiter spokesperson said.

The fund sits in the IA Mixed Investment 20-60% Shares sector, while the high income and distribution funds are in the Mixed Investment 40-85% and Mixed Investment 0-35% Shares sectors respectively.

Jupiter head of investments Stephen Pearson said: “Jupiter has long acknowledged skills in managing multi-asset funds both through multi-manager solutions and through single funds that invest in mixed assets. With two talented managers at the helm, a competitive fee structure and a monthly income, we believe that the Jupiter Enhanced Distribution Fund should quickly make its mark with advisers and investors.”

The minimum investment for the fund is £500 with an annual management charge of 0.75 per cent.

Jupiter announced the fund’s launch in July but didn’t provide any other details. At that time, the firm also said it was developing its first targeted Asian income fund, which will be launched later this year.

The Asia fund will be managed by former Newton manager Jason Pidcock, who joined Jupiter in May this year.