Jupiter Asset Management is to launch a UCITS III fund for investors seeking to capture returns from investing in pan-European equities. The Jupiter European Absolute Return (Sicav), which launches in January, will seek to generate an absolute return independent of market conditions with limited volatility.

The fund, a sub-fund of the Luxembourg-domiciled Jupiter Global Fund, will be managed by Cédric de Fonclare and Stephen Pearson.

Their investment process will be based upon bottom-up stock-picking, looking to build a portfolio of 50-80 long and short positions in individual companies in the European markets.  

The fund will use limited leverage, have daily liquidity and make use of the wider investment powers allowed under UCITS III, for example using exchange traded futures and options for investment and risk management purposes.

In these respects, Jupiter believes, it will retain many of the advantages and flexibility of a hedge fund structure, but offer the additional benefits of daily dealing and a strong regulatory environment, making it more accessible to a wider universe of investors.