Jupiter Merlin Monthly Income Select Fund I Inc


March 2026
 
  • Opinion
    Square Mile rating
  • Performance
    3 years annualised returns
    8.08%
    % of time met performance objective over 5 years
    67.2%
  • Risks
    Risk of asset class
    1 2 3 4 5 6 7 8 9 10
    Risk of fund within asset class
    1 2 3 4 5
  • Costs
    Ongoing charges
    0.77%
    Transaction costs
    0.28%
    Total cost of investment
    1.05%
  • Responsible
    What type of investor are you?

Source: Square Mile and LSEG Lipper (all rights reserved), Data as at: 31st January 2026.

Overview

The managers aim to deliver long-term capital accumulation as well as providing a sustainable and rising level of income. Distributions will be made on a monthly basis and an attempt is made to pay a consistent level of income each month. However this is not guaranteed and payments may fluctuate.

The managers are aware of the conservative investor base and general risk appetite of the unitholders of the fund. Avoiding a permanent loss of capital is very much at the forefront of their minds when constructing the portfolio. This means that the fund will not overreach for income and introduce higher levels of risk when market yields are at low levels. Consequently, the fund, at times, may deliver a lower level of income than some of its competitors.

 

Square Mile’s Expected Outcome

The manager looks to outperform the IA Mixed Investment 0%-35% Shares Sector over rolling three and five year periods.

Square Mile’s Opinion

Following the news that co-manager on the strategy, Alastair Gunn, will be leaving Jupiter at the end of the year, we have suspended the fund's A rating. Responsibility for the equity portion of the portfolio will move to the multi-asset team lead by Talib Shiekh in 2021. We intend to meet with the new management team in the coming weeks to understand how the fund will be managed going forward.

Although essentially run as two separate sub-portfolios, the managers' integrated approach helps inform their respective investment processes and leads to a deeper understanding of overall portfolio risk. This is implemented within the bond portfolio by investing in the debt of reliable businesses which have sensible longer-term strategies and where the manager feels comfortable holding each issue for the duration of its term. On the equity side, the emphasis is on higher quality dividend paying companies which are trading below their perceived fair value. This valuation discipline can also provide some downside protection. Whilst the fund is only likely to invest the majority of the portfolio in investment grade corporate bonds and high yielding UK equities, and therefore in some respects may appear less diversified than other multi-asset offerings, we feel the collegiate approach of the managers, the integrated manner within which they work and their understanding of the investor base are a compelling combination for a fund such as this. The fund's target benchmark has recently changed from the IA 0-35% Shares sector to a composite benchmark. Against this new benchmark, the fund has historically underperformed. However, relative to a combined benchmark, which represents the sector up until September 2019 and the composite benchmark thereafter, the fund has demonstrated consistent delivery of its expected outcome.

Fund Manager’s Formal Objective

To provide income with the prospect of capital growth, in order to provide a return, net of fees, higher than that provided by the composite benchmark (25% FTSE All Share, 37.5% BAML GBP 1-10 year corporate bond index, 37.5% BAML GBP 10-15 year corporate bond index) over the long term (at least five years).

Capital Accumulation, Income UK
Active None Stated
Multi Asset IA Mixed Investment 0-35% Shares
4.55% £246M
Joseph Chapman, Rhys Petheram, Talib Sheikh January, February, March, April, May, June, July, August, September, October, November, December
0.6 Pounds Monthly
GBP 19/09/2011
0.6 Pounds 31/03/2025
0.00% -
- -

Source: Square Mile and LSEG Lipper (all rights reserved), Data as at: 31st January 2026
 
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Jupiter Merlin Monthly Income Select Fund I Inc
 
 

Asset Manager Overview

The fund has been designed to appeal to the more risk averse investor, seeking a steady and regular yield with the potential for modest capital gains. It aims to outperform on a total return basis, a composite benchmark of equities and corporate bonds over at least a 5 year period. It is co-managed by Rhys Petheram and Alastair Gunn. Mr Petheram is a member of Jupiter's multi-asset team. He joined the group in 2006 as a fund manager, having previously worked as a credit analyst at Moody's Investor Services and Towers Perrin. He is a CFA Charterholder. Mr Gunn joined Jupiter in 2007 and is a member of the UK equities team. His career started in 1986 as a trainee real estate analyst and he has worked as an analyst and fund manager for a number of investment banks including Credit Lyonnais and Chase Manhattan Bank.

The starting point for portfolio construction is the risk profile of the underlying investors; the managers then look to optimise income within this framework. The pair work very closely when building the portfolio however selection of underlying securities is very much the individual responsibility of each manager. Mr Petheram is responsible for the fund's fixed income component and manages this in a conservative manner seeking strong companies which he believes are likely to be able to pay the coupon over the full term of the bond. In order to deliver good risk adjusted returns he is acutely aware of the portfolio's sensitivity to interest rate moves and the credit quality of the underlying issues. Mr Gunn runs the equity element and invests in attractively valued, high-quality businesses which pay, or are likely to start paying, dividends. His approach is long term and he looks for companies where he expects there to be dividend growth on a multi-year basis.

The fund will be split broadly 70%:30% between fixed income and equities. Although the managers will adjust this asset mix to reflect their views of investment conditions and opportunities, active asset allocation will not be the primary driver of returns. Individual stock selection is the core concern for both managers. The aim is to provide a sustainable level of income which is expected to grow over time. Income payments will be made on a monthly basis and the managers attempt to pay a consistent level of income each month, however this is not guaranteed and payments may fluctuate.

 
 
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Jupiter Merlin Monthly Income Select Fund I Inc
 
 

ESG Integration

Fund ESG Integration

There are no explicit environmental, social and governance (ESG) considerations stated in the objective and the managers do not explicitly screen investments based on these factors. However, as a business, Jupiter Asset Management is highly active in corporate governance and engage heavily with companies to try and shape future remuneration and incentivisation policies to ensure the alignment of shareholder and management interests. The management company is a signatory to the UN PRI.

 
 
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Jupiter Merlin Monthly Income Select Fund I Inc
 
 

Risk Summary

The fund invests predominantly in high quality corporate bonds and UK equities. Compared to some funds with a similar risk profile the stated investment universe is much narrower. Should these asset classes suffer a period of short term negative sentiment the fund may lack the diversification to mitigate such an episode as successfully as its peers.

 

Additional Information

8.08%
5.22%
-4.57%
5.01%
-3.42%
1.32
1.25

(3 years data to last month end unless otherwise stated)

Qualitative Risk Assessment

Significant Potentially Significant Not Significant

For the full summary of the risks, click here
 
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Jupiter Merlin Monthly Income Select Fund I Inc
 
 
 

Calendar Year Performance To Quarter End

Period Fund (%) Sector (%)
2025 12.1 7.9
2024 4.4 4.4
2023 - 6.0
2022 - -11.1
2021 - 3.0

Source: Square Mile and LSEG Lipper (all rights reserved), Data as at: 30th March 2026

Value for Money

Transaction costs are slightly above peer group median but the ongoing charge figure is low compared to the peer group median. The fund's Total Cost of Investing is one of the lowest in the sector. This is in part because the fund follows a relatively simple strategy and invests directly in UK equities and bonds. It does not invest in more esoteric securities which can carry higher costs. We think the fund offers reasonable value for money.

OCF v Peer Group

0.77%
Transaction Costs v Peer Group

0.28%
TCI v Peer Group

1.05%

Source: Square Mile and LSEG Lipper (all rights reserved), Data as at: 31st January 2026.
 
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Jupiter Merlin Monthly Income Select Fund I Inc
 
 

Rating Changes

The Square Mile ratings are reviewed every 6 months. For full details on the methodologies, click here.
For a full list of all Square Mile rated funds, click here.

Rating Changes over last 12 months Time & Date rating changed
 

Disclaimer

This document is issued by Square Mile Investment Consulting and Research Limited which is registered in England and Wales (08791142) and is a wholly owned subsidiary of Titan Wealth Holdings Limited (Registered Address: 101 Wigmore Street, London, W1U 1QU).

Unless otherwise agreed by Square Mile, this factsheet is only for internal use by the permitted recipients and shall not be published or be provided to any third parties. This factsheet is for the use of professional advisers and other regulated firms only and should not be relied upon by any other persons. It is published by, and remains the copyright of, Square Mile Investment Consulting and Research Ltd (“SM”). SM makes no warranties or representations regarding the accuracy or completeness of the information contained herein. This information represents the views and forecasts of SM at the date of issue but may be subject to change without reference or notification to you. SM does not offer investment advice or make recommendations regarding investments and nothing in this factsheet shall be deemed to constitute financial or investment advice in any way and shall not constitute a regulated activity for the purposes of the Financial Services and Markets Act 2000. This factsheet shall not constitute or be deemed to constitute an invitation or inducement to any person to engage in investment activity. Should you undertake any investment activity based on information contained herein, you do so entirely at your own risk and SM shall have no liability whatsoever for any loss, damage, costs or expenses incurred or suffered by you as a result. SM does not accept any responsibility for errors, inaccuracies, omissions, or any inconsistencies herein. Unless indicated, all figures are sourced by LSEG Lipper (all rights reserved). Past performance is not a guide to future returns.

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