The team, which runs in excess of £9bn across its five fund of fund products, said the US economy is in far better shape than those dealing with the challenging environments in Europe, and to a lesser extent the UK.
While the Jupiter multi-managers concede this optimism has been priced in by the market already this year, with the dollar rallying strongly versus sterling and against the euro – the team remains comfortable with its significant weighting to US equities and the US dollar.
At the end of last year the team upped its exposure to Europe as it backed policymakers’ commitment to keeping the single currency together.
The graph below shows Chatfeild-Robert’s three-year performance versus his peers:
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Favoured US funds
The Jupiter team holds a number of US equity products across its portfolios, with the Hermes US SMID Equity Fund – managed by Robert Anstey – recently added to the range. It also has exposure to Sebastian Radcliffe’s Jupiter North American Income and North American Equities vehicles – as well as Stephen Kelly’s Axa Framlington American Growth Fund and the Findlay Park American Fund.
“One particular bright spot we have favoured previously, and still believe is set to shine for some time to come, is the United States,” the Jupiter Merlin team said.
“Having let the housing market plummet and ?nd clearing prices, it has now regained traction having risen over 7% in aggregate during 2012. This increase in house prices has a multiplier effect, bringing many out of negative equity, increasing con?dence and spurring on housebuilding, which itself increases employment, stimulates credit growth and creates consumer demand.
“Add into the melting pot cheap energy from shale reserves, a recapitalised banking system ready to provide ?nance and a culture of entrepreneurialism, and we can see scope for growth.”
Last year Jupiter launched a cautious fund in the Merlin range, its first new fund for Chatfeild-Roberts and his team in a decade. The graph below shows its outperformance of the mixed investment 0-35% shares sector over the past six months.
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