The Global Levered Absolute Return fund (GLAR) launched earlier this week and aims to double the size of holdings in Clunie’s £1.3bn Jupiter Absolute Return Fund (JARF). It is a sub-fund of the Jupiter Global Fund Sicav.
Clunie will be supported by Ivan Kralj as assistant fund manager.
Magnus Spence, head of alternatives at Jupiter, said: “As interest in James’s investment style has grown, we have been approached by prospective clients including pension funds, family offices and endowments, who would like access to this strategy but have a tolerance for higher volatility.
“This product has been developed to address this demand.”
The holdings in JARF will be used as a foundation to determine which positions are to be held within the new portfolio.
Although it will not mirror JARF exactly, the investment style will also be reflected in the new fund and will use a bottom-up approach, Jupiter said.
Clunie has been managing absolute return strategies for 27 years, including the £1.3bn Jupiter Absolute Return UK unit trust and £142m Jupiter Global Absolute Return fund.
Clunie’s £1.3bn fund has struggled to outperform the IA Targeted Absolute Return benchmark over the last 12 months, yielding -2% against the sector’s 3.4%, according to data from FE Analytics.
However, over three years the fund has fared better, returning 15.2% against the IA sector average return of 9.8%.
Spence added: “James is an exceptionally talented manager, and we believe this is an exciting opportunity for professional investors to gain access to his successful absolute return strategy.”
Jupiter stressed the GLAR fund is only suitable for institutional and professional investors who understand complex investment strategies which make extensive use of derivative instruments.
