Jupiter has launched a levered version of James Clunie's £1.3 billion Absolute Return fund, Wealth Manager can reveal.
The Jupiter Global Levered Absolute Return (GLAR) fund launched earlier this week and is a sub-fund within the Jupiter Global fund Sicav. Ivan Kralj serves as assistant manager on the new fund.
Through the use of leverage, the fund will aim to hold approximately double the size of holdings in Clunie's existing UK-domiciled Jupiter Absolute Return fund (JARF).
While the fund does not have a specific return target, it will levy a performance fee on returns above 5% subject to a high water mark. Investors will also be subject to a 1.25% annual charge.
Jupiter Global Levered Absolute Return will use the holdings in JARF as a foundation for positions in the new portfolio.
While GLAR will not be an exact mirror of JARF, it will employ the same investment style Clunie has honed during his 27-year career in investment management.
This approach sees him take an unconstrained bottom-up approach to constructing a global equities portfolio.
Clunie uses a combination of quantitative and fundamental analysis for his portfolio construction, using quantitative screens to identify potential long and short stock ideas.
While he monitors the macroeconomic environment and uses top-down analysis to help mitigate risk, his process is not driven by macro considerations.
This process has served Citywire+ rated Clunie well on JARF, with the fund returning 12.4% in three years to the end of September versus a peer group average of 11.6%.
Clunie, who joined the firm from Scottish Widows Investment Partnership in 2013, has also run the £142 million Jupiter Global Absolute Return fund since June 2016.
'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,' said Jupiter head of alternatives Magnus Spence.
'Jupiter’s client base is growing and diversifying, and we are pleased to evolve our product offering in line with this. 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.'