Jupiter has promoted Huw Davies to assistant fund manager in its strategic absolute return bond team.
Davies (pictured) joined the FTSE 250 asset manager in the summer of 2020 following its acquisition of rival fund house Merian Global Investors. He has spent the last four years working with Merian’s strategic absolute return bond team in his capacity as investment director of fixed income.
In his new role, Davies will work alongside head of fixed income alternatives Mark Nash and fellow assistant manager James Novotny on the team’s flagship $294.5m (£217.3m) Jupiter Strategic Absolute Return Bond fund.
The legacy Merian fund, which aims to deliver positive returns uncorrelated to bond and equity market conditions with stable volatility, is Jupiter’s sole alternative fixed income fund.
It has returned 15.4% over three years, more than double the IA Target Absolute Return average of 7.7%, according to Trustnet. But over the past year it has lagged peers, delivering 2.8% against the sector’s 5.9%, and has lost 0.4% in six months, while the average fund has risen 1.6%.
Nash said that the Jupiter Strategic Absolute Return Bond fund’s flexible approach would help in navigating an increasingly challenging monetary and fiscal environment.
“Since the onset of the Covid pandemic, the policymaking landscape has dramatically changed. Fiscal spending is unlikely to disappear anytime soon as inequality and global warming issues are addressed. Central banks will remain supportive but will take more of a backseat, while ensuring that banking systems are in good health to support the recovery. This reflationary environment will see higher growth and higher inflation, with yields rising,” Nash said.
“In my view, a more ‘absolute return’ approach will be needed to achieve positive returns from fixed income, and I am pleased to be welcoming Huw to the team at this important time for the strategy.”
Alongside Davies’ appointment, Jupiter has promoted Matthew Morgan to investment director of fixed income and multi-asset. Morgan, who has been working as a product strategy in Talib Sheikh’s multi-asset team since 2019, will lead a team of strategy specialists across Jupiter’s £15.3bn fixed income and £1.1bn multi-asset ranges.
In September Jupiter overhauled its own absolute return fund, previously run by James Clunie, which had shed most of its assets in 2020 following a period of torrid performance and heavy redemptions.
