Jupiter expands EMD offering with Short Duration Bond fund launch

Jupiter has launched the Jupiter Global Emerging Markets Short Duration Bond fund, a sub-fund of the Jupiter Global Fund SICAV. The Fund will be managed by Alejandro Arevalo, broadening out Jupiter’s newly-established emerging market debt (EMD) offering following the launch of the Jupiter Global Emerging Markets Corporate Bond fund in March this year.

An actively managed, unconstrained portfolio, the Jupiter Global Emerging Markets Short Duration Bond fund aims to achieve long term income and capital growth by investing primarily in short duration bonds exposed directly or indirectly to emerging market (EM) economies worldwide.

The fund will adopt a total return approach, with the flexibility to allocate between sovereigns, corporates and local currency, while keeping average fund duration under three years.

Alejandro Arevalo, who joined Jupiter in 2016, has more than 18 years’ experience of investing in emerging markets. His investment process combines top-down and bottom-up insights and is designed to identify long term opportunities that could benefit from macro and/or specific events at a sector or company level.

Alejandro will be supported in running the fund by two dedicated EMD analysts, Nachu Chockalingam and Reza Karim, who joined the company earlier this year as part of Jupiter’s broader credit research team. The dedicated EMD capability is fully integrated into Jupiter’s Fixed Income team, enabling an active exchange of ideas between fund managers and analysts across sectoral and regional specialisms.

Alejandro Arevalo, manager of the Jupiter Global Emerging Markets Short Duration Bond Fund, said: “Emerging market economies continue to benefit from record lows in inflation, increased world trade volumes and strong drivers of domestic growth. As U.S economic data continues to recover and expectations of rate normalisations grow, this Fund offers an opportunity for investors to benefit from the improving fundamentals in EM, while targeting total return with limited interest rate risk.”

Katharine Dryer, Head of Investments, Fixed Income and Multi-Asset, said: “This new fund will further enhance Jupiter’s range of fixed income strategies, enabling new and existing clients to access this important asset class through products designed to suit different market environments and investor objectives.”