Alastair Gunn has taken over as lead manager of the Jupiter High Income Fund from Anthony Nutt.
Gunn (pictured) will be managing the equity portion of the fund, alongside Ariel Bezalel who will continue to manage the bond element, having been appointed to the role in 2006.
Nutt, who is retiring in 2014, appointed Gunn to the UK equities team in 2007 on the back of his expertise as a transport analyst. He has worked closely with Nutt since then.
Gunn has over 20 years’ experience as a sell-side investment analyst covering a number of industry sectors on a UK and pan-European basis.
“Although an exit from QE is rightly being debated we believe this will be a gradual transition, which can only begin once economic growth is more entrenched. Lead indicators in both the US and UK are encouraging and consumer confidence is at a three year high,” says Gunn.
The Jupiter High Income Fund, which aims to achieve a high and rising income with capital growth, holds the majority of its assets in shares and the remainder in fixed interest and cash. It has been managed by Nutt since its launch in February 1996 and has delivered a return of 399.8 per cent compared with 185.4 per cent for the IMA UK Equity & Bond Income sector average, placing it first in its sector over this period.
Like Nutt, Gunn believes that long term outperformance may be generated by companies that deliver sustainable and growing dividends over time. They have very similar investment styles and are both “value-orientated” investors who look for companies that generate cash with solid balance sheets and pricing power. He will run a fairly concentrated portfolio of equity stocks with a bias towards mid/large caps and a strong income discipline.
Gunn will remain co-manager (with Rhys Petheram) of the Jupiter Distribution Fund.
Gunn says: “I am looking forward to my new role as lead manager on a fund that has established a strong track record under Anthony’s tenure. I hope to build on his success with the fund and would like to thank him for his support and guidance over the past six years.
Nutt says: “Having worked alongside Alastair for many years, I am confident in his ability to continue to deliver long term returns for investors in the Fund. This new role recognises the hard work and skill that Alastair has applied in running his portfolios, particularly the Jupiter Distribution Fund which has achieved excellent results through an equity/bond mix. I look forward to following his career.”