The fund, which has received approval from the FSA, is aimed at investors with a medium to long-term outlook seeking income with potential for capital growth.

It has a target yield of seven per cent, will offer a wide spectrum of investments in terms of risk tolerance, with the ability to switch from a conservative to aggressive stance depending on circumstances.

Managed as a ‘go anywhere’ fund, it aims to achieve long-term capital growth from investing in all areas of the credit ratings market.

It will be managed by Ariel Bezalel, who has ten years' experience working in credit markets at Jupiter, currently managing the fixed interest components of three unit trusts – Jupiter Global Managed, Jupiter High Income and Jupiter Monthly Income.

The Fund will have a minimum of 20 per cent in high-yield instruments, with the manager seeking to invest in areas that offer the opportunity for good capital growth and in government bond markets in times of stress.

Bezalel says, ‘The investment grade market is pricing in a severe recession and the high-yield market is pricing in a sharp rise in defaults. While I am cautious on the economic outlook, current valuations seem to offer potentially handsome rewards for the risk. This situation, in my view, presents the most compelling investment opportunity in credit we have seen for many years.’

Due to launch on 2 June 2008, minimum investment in the fund is £500, the initial charge is four per cent and the annual management charge is 1.5 per cent. For more information visit www.jupiteronline.co.uk