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
Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Wealth Manager on Twitter