Bezalel doubles Jupiter fund exposure to banks
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Ariel Bezalel, manager of the Jupiter Strategic Bond fund, has nearly doubled his exposure to banks in the last few months.
Bezalel now has 14% of the £607.5m Jupiter Strategic Bond fund invested in banks, up from 8% in September, and says UK and US banks are offering the best opportunities.
He says: “We think the US is far ahead of the curve in recapitalising the banking system than Europe.”
Bezalel now has 2% of the fund in Royal Bank of Scotland subordinated debt, 2.5% in Lloyds convertibles and just over 1% in senior secured debt in Citigroup.
He says: “The tier-two notes in RBS are yielding around 11%, which is very attractive. The bank has done well in shrinking its balance sheet. Funding for 2012 has almost been sorted out. Similarly, we are getting equity-like returns from the Lloyds convertibles. Lloyds equities and bonds have been battered unfairly because of managemen turmoil and that turmoil seems to have settled down.”
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