jupiter merlin portfolios -...

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June 2013

Multi-manager Funds

Jupiter Merlin Portfolios

Market Commentary

For many years we have been quizzed by investors on the opportunities and challenges facing the emerging regions of the world. On a long term secular view, with their massive and dynamic populations, the benefi ts of investing in these regions has seemed clear to all. However, no great investment theme is ever a straight line to riches and emerging market investing is no diff erent. How and when investors choose to participate in the growth potential of the burgeoning opportunities will defi ne their ultimate portfolio outcomes. The attraction of these markets is due to their high risk/return nature; fortunes can be made, if you get it more right than wrong. Obviously the inverse is also true.It is fairly clear that we are close to, maybe even beyond, an infl ection point in a number of global themes that have been in place for many years, if not decades. Primarily, the economic world has benefi tted for over 25 years from a disinfl ationary tailwind resulting in a trend of declining interest rates. With interest rates at eff ectively zero in the Western world and Japan, they can fall no further, although in depression-hit Europe there is certainly scope for interest rates to go negative in the not too distant future. With the tidal waves of money printing battering the shores of every country around the world, infl ation, of the real, not the ‘politically convenient’ measured variety, is a present danger. This is not to say that interest rates are in imminent danger of rising, and bond yields following suit, as fi nancial repression has so far kept these constrained, but declining interest rates are a thing of the past. The distortions created by Western monetary policy, mimicked by many emerging markets via mercantilist currency manipulation, have seen all boats rise. As the benefi ts of continued monetary intervention wane, we will soon discover which are seaworthy.At this cyclical point in emerging market development, three countries will defi ne their fortunes, Japan, the US and China. In China, a nation that has thrived from being the outsourcing capital of the world, one quote

From left to right: Peter Lawery , John Chatfeild-Roberts , Algy Smith-Maxwell

May Overview

Emerging markets – where to next?

The only way is up for interest rates

Superpowers remain the key to global growth

How to exploit secular growth

suffi ces to highlight the current situation. “From 2000 to 2010, wages in the Yangtze Delta, a manufacturing hotbed, jumped from 72 cents an hour to $8.62”.* It is thus immediately apparent why the new Chinese leadership is so keen to re-orientate their economy towards a more domestically-biased one; their labour cost advantage has clearly gone. What Japan (or more specifi cally the yen) does from here is the key for many export-orientated emerging economies, as well as countries such as Germany. How do you compete with superior Japanese exports that are becoming more competitively priced by the day? And the US, the ultimate export destination, is not out of the woods yet, but she has cleansed many of her past ills. America is growing, but the cheap and available labour force, the potentially plentiful supply of energy (if indeed their shale reserves are the bonanza that many hope) and falling input costs, will be crucial for momentum to build. An improving current account balance (aided by the fl edgling shale gas revolution) and talk of ‘tapering’ quantitative easing, have all served to strengthen the US Dollar of late. This strong dollar poses an interesting conundrum for all emerging markets and is the source of one of our greatest concerns for them, that of the ‘original sin’ of being over-exposed to it. We hope that companies and countries have avoided the temptation of excessive borrowing in the cheap-to-service and ‘consistently declining’ dollar; there is nothing like a change in a currency trend to spoil the party. It has happened numerous times before. Due to their size and secular growth, emerging markets should not be overlooked. Latin American domestic investments look attractive, but the index is dominated by a few major exporters which are best avoided. Asia is home to some of the world’s great companies and selectively the most well-managed and fi nancially secure are always worthy of consideration. The Russian market should be cheap, and it is, very,

but in the absence of a clear catalyst, it is hard to see what unlocks that value. With all the uncertainties at present and the stated intentions of the Chinese leadership, would the best way to exploit the long term development of the world’s emerging regions be via the very largest global consumer brand companies? Furthermore, looking over the next fi ve years would it not be somewhat ironic, and certainly contrarian, to suggest that the best performing ‘emerging market’ might just be ‘middle America’? Though if Japan really does pull off the refl ation of its economy, then ‘middle Japan’ might just grab this accolade! *Source: originally from Reuters, via Cornerstone Macro, May 9th 2013

Outlook

In this ever changing world, where long term trends fade and fl ourish, we believe active asset allocation and pragmatic investment principles are critical to capture the strongest investment themes and avoid the mean-reversion of yesterday’s winners. Thus, fl anked by our underlying fund managers who have similar long term philosophies, we stand ready to face the challenges and embrace the opportunities of the future.Thank you for your continued support.Jupiter Independent Funds Team

Team Awards

Best Multi Asset ProviderWINNER

HONOURS 2011

5 year percentage change and sector ranking to 31.05.2013

Position in Percentage Quartile sector growth ranking

Performance 6/90 45.9% 1

Performance – As at 31.05.2013

All performance in this factsheet is based on accumulation units in GBP.† With e� ect from 17th July 2006.Past performance should not be seen as a guide to future performance.

Source: FE, bid to bid, net income reinvested.

Year on Year % Growth ending 31.05.2013

08-09 09-10 10-11 11-12 12-13 Percentage Growth -8.4% 22.8% 8.1% 0.8% 19.0%

Rank 27/90 8/114 101/127 17/142 30/152

5 year performance vs IMA Mixed Investment 20-60% Shares sector average

May 08 May 09 May 10 May 11 May 12 May 13-20%

-10%

0%

10%

20%

30%

40%

50% Jupiter Merlin Income PortfolioIMA Mixed Investment 20-60% Shares

Per

cent

age

Cha

nge

Source: FE , bid to bid, net income reinvested.

As at 31.05.2013

Fund Value: £4,810 m

Launch Date 14.09.92

June 2013

Multi-manager Funds

Jupiter Merlin Income Portfolio

Objective†

To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fi xed interest stocks, commodities and property, principally in the UK.

Fund Facts

IMA Sector* Mixed Investment 20-60% Shares

Sedol codes 0362937 (Acc) 0362948 (Inc) B4N2L74 (I Acc) B6QMDC4 (I Inc)

Unit type Income & Accumulation units

Quoted spread max (Inc/Acc) 6.25%

Historic yield (Inc) 3.1%

Historic yield (Acc) 3.1%

Historic yield (I Inc) 3.1%

Historic yield (I Acc) 3.0%

XD date 16/1 16/4 16/7 16/10

Payment date 15/3 15/6 15/9 15/12

Holdings – As at 31.05.2013

UK Equities 31.7%Artemis IncomeInvesco Perpetual High IncomeInvesco Perpetual IncomeJupiter Income TrustJupiter UK Special SituationsFixed Interest 35.4%Jupiter Strategic BondKames High Yield BondLiontrust Global Strategic BondM&G Strategic Corporate BondThreadneedle Emerging Market BondOther 31.4%ETF Securities - Physical Gold ETFFirst State Asian Equity PlusM&G Global DividendNewton Asian IncomeCash 1.5% 100%

*Investment Management AssociationThe Historic Yield refl ects distributions paid or declared over the past twelve months as a percentage of the mid-market unit price as at the date shown. It does not include any initial charge and investors may be subject to tax on their distributions. All of the Fund’s expenses are charged to capital. This has had the e� ect of increasing the distributions paid on an annualised basis on Retail Units by up to 1.72% of the class’ average Net Asset Value and constraining the class’ capital performance to an equivalent extent.

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Ratings/Awards

For further explanations of terms and ratings please also visit the glossary in the help section of our website:www.jupiteronline.com

As at 31.05.2013



June 2013

Jupiter Merlin Balanced Portfolio

Objective†

To achieve long-term capital growth with income by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in international equities, fi xed interest stocks, commodities and property.

Fund Facts


Sedol codes 3184514 (Acc) 3191075 (Inc) B4351D9 (I Acc) B3X5X81 (I Inc)







XD date 01/6 01/12

Payment date 31/7 31/1

*Investment Management Association


UK Equities 25.8%Artemis IncomeAXA Framlington UK Select OppsInvesco Perpetual IncomeJupiter Growth & IncomeUS Equities 9.5%Findlay Park AmericanEuropean Equities 5.0%Threadneedle European SelectJapanese Equities 5.5%CF Morant Wright Nippon Yield B Jupiter Japan IncomeFar East Equities 15.0%First State Asian Equity PlusPrusik Asian Equity Income Fixed Interest 11.7%JGF - Jupiter Dynamic BondJupiter Strategic BondKames High Yield BondThreadneedle Emerging Market BondOther 25.6%ETF Securities - Physical Gold ETFFindlay Park Latin AmericanFundsmith EquityJupiter Global Equity Income M&G Global DividendCash* 1.9% 100%

Multi-manager Funds




08-09 09-10 10-11 11-12 12-13 Percentage Growth -12.6% 25.0% 7.9% -2.1% 22.2%

Rank 11/97 6/113 126/127 12/134 64/143

5 year performance vs IMA Mixed Investment 40-85% Shares sector average


-20%

-10%

0%

10%

20%

30%

40%

50% Jupiter Merlin Balanced PortfolioIMA Mixed Investment 40-85% Shares

Per

cent

age

Cha

nge






The Historic Yield reflects distributions paid or declared over the past twelve months as a percentage of the mid-market unit price as at the date shown. It does not include any initial charge and investors may be subject to tax on their distributions. With effect from 1 December 2005 all of the Fund’s expenses have been charged to capital. This has had the effect of increasing the distributions paid on an annualised basis on Retail Units by up to 2.41% of the class’ average Net Asset Value and constraining the class’ capital performance to an equivalent extent.

Ratings/ Awards


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* This includes an unrealised loss of -0.02% made from positions hedging exchange rate fluctuations.





Rank 17/90 13/106 86/111 27/124 78/131

5 year performance vs IMA Flexible Investments sector average


-30%

-20%

-10%

0%

10%

20%

30%

40%

50% Jupiter Merlin Growth PortfolioIMA Flexible Investment

Per

cent

age

Cha

nge


As at 31.05.2013



June 2013

Multi-manager Funds

Jupiter Merlin Growth Portfolio

Objective†

To achieve long-term capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in international equities, fi xed interest stocks, commodities and property, with a core in the UK.

Fund Facts

IMA Sector* Flexible Investment

Sedol codes 0362926 (Acc) 0362915 (Inc) B6QGLF5 (I Acc) B8K5LH4 (I Inc)



XD date 01/3 01/9

Payment date 30/4 31/10







UK Equities 34.0%AXA Framlington UK Select OppsCazenove - UK OpportunitiesInvesco Perpetual IncomeJupiter Growth & IncomeJupiter UK Special SituationsUS Equities 25.3%Findlay Park AmericanHermes US SMID EquityJupiter North American IncomeEuropean Equities 7.7%Threadneedle European SelectJapanese Equities 8.4%CF Morant Wright Japan BJupiter Japan IncomeFar East Equities 10.9%First State Asia Pacific Leaders BOther 13.4%ETF Securities - Physical Gold ETFFindlay Park Latin AmericanMorgan Stanley Global BrandsCash* 0.3% 100%


Ratings/ Awards

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* This includes an unrealised loss of -0.09% made from positions hedging exchange rate fl uctuations.


All performance in this factsheet is based on income units in GBP.† With e� ect from 17th July 2006.Past performance should not be seen as a guide to future performance.




Rank 31/183 59/194 176/211 64/226 206/242

5 year performance vs IMA Global sector average


-20%

0%

20%

40% Jupiter Merlin Worldwide PortfolioIMA Global

Per

cent

age

Cha

nge


As at 31.05.2013

Fund Value: £866 m


June 2013

Multi-manager Funds

Jupiter Merlin Worldwide Portfolio

Objective†

To achieve long-term capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in international equities, fi xed interest stocks, commodities and property.

Fund Facts

IMA Sector* Global

Sedol codes 3166783 (Acc) 0369983 (Inc) B53LG95 (I Acc) B8D78Y3 (I Inc)



XD date 01/6

Payment date 31/7






US Equities 32.3%Findlay Park AmericanHermes US SMID EquityJGF - Jupiter North American EquitiesEuropean Equities 12.1%JGF - Jupiter European OpportunitiesThreadneedle European SelectJapanese Equities 13.6%CF Morant Wright Japan BJGF - Jupiter Japan SelectFar East Equities 12.4%First State Asia Pacific Leaders BOther 29.3%Blackrock Gold & GeneralFindlay Park Latin AmericanFundsmith EquityJupiter Global EnergyCash* 0.3% 100%

Ratings/ Awards


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* This includes an unrealised loss of -0.01% made from posi-tions hedging exchange rate fl uctuations.

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Multi-manager Funds

Jupiter Merlin Conservative Portfolio

Objective

To achieve long term capital growth with income by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups (where the underlying funds invest in fi xed interest stocks, equities, commodities and property internationally); and directly in international fi xed interest securities (including investment grade bonds, high yield bonds, government bonds, preference shares and convertible bonds), together with cash deposits and money market instruments.

Fund Facts


Sedol codes B8GDMB3 B8GDMD5 B8GDLS3 (I Acc) B8GDLV6 (I Inc)







XD date 01/12 01/03 01/06 01/09

Payment date 31/01 30/04 31/07 31/10


UK Equities 16.7%Invesco Perpetual High IncomeJupiter UK Special Situations Fixed Interest 61.6%CG Dollar PortfolioJupiter Corporate BondJupiter Strategic Bond Kames High Yield BondLiontrust Global Strategic BondThreadneedle Emerging Market BondOther 20.1%ETF Securities - Physical Gold ETFM&G Global DividendMorgan Stanley Global BrandsNewton Asian IncomeCash 1.6% 100%


Ratings/ Awards

*Investment Management AssociationThe Historic Yield refl ects distributions paid or declared over the past twelve months as a percentage of the mid-market unit price as at the date shown. It does not include any initial charge and investors may be subject to tax on their distributions. All of the Fund’s expenses are charged to capital. This will have the e� ect of increasing the distributions paid on an annualised basis on Retail Units by up to 2.00% of the class’ average Net Asset Value and constraining the class’ capital performance to an equivalent extent.

As at 31.05.2013

Fund Value: £25 m


June 2013

Important Information:

Due to the Jupiter Merlin Conservative Portfolio’s recent launch, past performance data will not be available until the fund has been running for a year.

Customer ServicesTelephone: 0844 620 7600Freephone: 0500 0500 98Fax: 0844 620 7603Website: www.jupiteronline.com

Broker Sales TeamTelephone: 020 7314 7699Email: [email protected]

June 2013

Multi-manager Funds

Jupiter Merlin Portfolios

3rd Party Links

The Jupiter Merlin Portfolios are available via a wide range of platforms, wraps, and Life and Pension companies both onshore and off shore. www.Jupiteronline.com

standardsredefining

WEALTH

The outlook expressed in this factsheet represents the views of the fund manager at the time of preparation and are not necessarily those of the Jupiter Group as a whole. They may be subject to change and should not be interpreted as investment advice. The manager has the power to use derivatives but it is intended that these will only be used for the purpose of effi cient portfolio management and not for investment purposes. Jupiter Unit Trust Managers Limited is authorised and regulated by the Financial Conduct Authority whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS. Registered address: 1 Grosvenor Place, London SW1X 7JJ. Quoted yields are not guaranteed. Current tax levels and reliefs will depend on your individual circumstances. For your security we may record or randomly monitor all telephone calls. If you are unsure of the suitability of this investment please contact your Financial Adviser. Copies of the half-yearly and annual reports may be obtained from Jupiter Asset Management Ltd., 1 Grosvenor Place, London SW1X 7JJ. NURS Key Investor Information Document (KIID) and Supplementary Information Document (SID) may also be obtained from that address.

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Minimum Investments*

Lump sum Top-up Monthly

Unit Trust £500 £250 £50 ISA investment £500 £250 £50

Initial Investment I Classes £5,000,000

* RWF not available under £5,000 for investments in the Jupiter Merlin Portfolios. For more information visit www.jupiteronline.com

Regular withdrawal facility

This is available for all the Jupiter Merlin Portfolios with a minimum lump sum investment of £5,000 per portfolio. You can choose the amount paid to you each month or quarterly. Any such withdrawals which exceed investment returns will result in an erosion of capital.

Risks

Past performance should not be seen as a guide to future performance. The value of an investment and the income from it may fall as well as rise and may be aff ected by exchange rate variations and you may not get back the amount invested. Charges tend to be higher than for conventional Unit Trusts to allow for a portion of the charges applicable to underlying funds. On average this works out at around 0.7% of the net asset value per annum. These funds can invest more than 35% of their value in securities issued or guaranteed by an EEA state. The NURS Key Investor Information Document (KIID), Supplementary Information Document (SID) and Scheme Particulars are available from Jupiter on request.

Fund Management Team

John Chatfeild-Roberts is head of the Jupiter Independent Funds Team and is a Main Board Director of Jupiter. Peter Lawery joined John in 1997 and Algy Smith-Maxwell completed the team in 1999.

Charges

Initial charge

Initial charge I Classes AMC AMC I Classes OCF OCF I Classes

Jupiter Merlin Balanced 5.25% 0.00% 1.50% 0.75% 2.41% 1.66%Jupiter Merlin Conservative 5.25% 0.00% 1.25% 0.50% 2.00% 1.25%Jupiter Merlin Growth 5.25% 0.00% 1.50% 0.75% 2.56% 1.81%Jupiter Merlin Income 5.25% 0.00% 1.50% 0.75% 2.36% 1.61%Jupiter Merlin Worldwide 5.25% 0.00% 1.50% 0.75% 2.56% 1.81%

Enhanced Reporting

We provide in-depth reporting to keep you informed, not confused. Portfolio statements include Manager’s Commentary as at 5 April and 5 October plus six monthly Manager’s Reports.

Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Conduct Authority whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS. The registered address of JAM and JUTM is 1 Grosvenor Place, London, SW1X 7JJ. The group is collectively known as Jupiter. Jupiter Asset Management Limited acts as Investment Adviser to the Jupiter range of unit trusts which are managed by Jupiter Unit Trust Managers Limited. For your security we may record or monitor all telephone calls.

Contact usPlease do not hesitate to contact us if you require more information or would like to be sent further literature.

Tel: 0844 620 7600 +44 (0)1268 448 642

Fax: 0844 620 7603 +44 (0)1268 448 419

Web: www.jupiteronline.com

Jupiter Customer Services Department

PO Box 10666Chelmsford, CM99 2BG

Further details and downloadable literature (including application forms) can be found by visiting:

Web: www.jupiteronline.com

If you do not have a financial adviser (IFA), we have included the details below of two organisations that can help you find one.

Findanadviser.orgThe Personal Finance Society provide a free search service designed to help you find a local professional financial adviser.

Website: www.findanadviser.orgAddress: Personal Finance Society

20 AldermanburyLondon, EC2V 7HY

Unbiased.co.ukYou can confidentially search for details of local IFAs by using the online ‘Find an IFA’ search facility.

Website: www.unbiased.co.ukAddress: Unbiased Ltd

2nd Floor117 Farringdon RoadLondon, EC1R 3BX

In need of advice?

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