Jupiter moves to widen Bezalel's derivative powers on Strategic Bond fund

Jupiter has written to unitholders in Ariel Bezalel's £1.6bn fund, asking them to vote on plans which would give the manager wider powers to use derivatives to take short positions.

Currently, Bezalel (pictured) can only use derivatives for efficient portfolio management and to hedge currency risks, but the new powers would help him manage inflows and also mitigate liquidity risks, the group said. The proposals would mean the fund - the top performer in the Strategic Bond sector over five years - would also be able to take advantage of market sell-offs via short positions, meaning he could protect the portfolio by reducing exposure to credit markets. Unitholders will vote on the proposals this month and, if approved, they will come in to effect on 19 December. ...