Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Chatfeild-Roberts buys property for first time in more than 10 years

Chatfeild-Roberts buys property for first time in more than 10 years

John Chatfeild-Roberts has bought property for the first time in more than 10 years in the latest round of changes across his Merlin fund range.

In an update to investors, Chatfeild-Roberts said he was drawn to property for its income qualities. To tap into this he has bought the Mayfair Capital Commercial Property Trust through his Jupiter Merlin Income and Merlin Balanced Portfolios.

'We have a high conviction in the strength of the fund management team at Mayfair and believe that in the current environment, selected property exposure is a potential alternative for investors seeking diversification away from equities and bonds for income generation,' Chatfeild-Roberts said.

Japan cut

Meanwhile, Chatfeild-Roberts expressed concern about the impact of the sales tax increase following a disappointing first quarter, which saw the Nikkei fall by around 9%.

'A member of the Jupiter independent funds team spent a week in Tokyo in February, accompanying managers at company meetings and attending a regional conference,' he said. 

'It was quite apparent that the 3% sales tax increase (VAT equivalent) in April has prompted consumers to accelerate their retail purchases and that the public resent tax rises when their wages are lower (in real terms).'

Chatfeild-Roberts added that while the job market is indicating a more reassuring picture against the backdrop of ongoing stimulus, the political uncertainty gives cause to be wary.

'Investors question whether the Third Arrow of deregulation is dying a slow death in Japan’s labyrinthine and somewhat dysfunctional political system,' he said.  

'Furthermore, Japan’s net exports have yet to expand, despite a weaker yen. Exposure to Japan has been reduced to a more neutral stance across the board.'

Life insurers

Analysts have suggested the government's decision to scrap the requirement to buy an annuity on retirement could present an opportunity for wealth and fund management firms offering multi-asset income propositions. 

While Chatfeild-Roberts did not explicitly describe the pensions revolution as an opportunity for firms like Jupiter, he indicated the move potentially opens up a whole new client base.   

'From our perspective, new legislation allowing pensioners to invest their own pension pot rather than purchase an annuity, impacted those of our equity managers who owned UK life insurance companies, as these share prices fell sharply,' Chatfeild-Roberts said.

'Longer term, we believe it is likely that pensioners will seek income-producing assets for their pension savings.'

   

 

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
When Brewin's Gutteridge met BlackRock's easy Rieder

When Brewin's Gutteridge met BlackRock's easy Rieder

Following Federal Reserve chair Janet Yellen’s testimony, Ben Gutteridge, head of fund research at Brewin Dolphin, grills Rick Rieder, CIO of fundamental fixed income at BlackRock.

Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

Your Business: Cover Star Club

Profile: meet the man building Towry into an £11bn giant

Profile: meet the man building Towry into an £11bn giant

As a former engineer who worked on Hong Kong International Airport, Rob Devey is not afraid of taking on major projects

Wealth Manager on Twitter