By ADRIAN LOWCOCK 27/11/2009
Jupiter are launching two new funds on the 14th December; Jupiter Absolute Return and Jupiter International Financials. Both funds will be managed by Philip Gibbs.
Jupiter are offering investors in the Jupiter Financial Opportunities funds free switches into either of the new funds. Under the terms of this facility, investors will be able to make the switch under a Scheme of Arrangement, which will defer payment of Capital Gains Tax and will not incur the usual switching costs. This offer is available through Cofunds and FundsNetwork and both groups have written out to holders with the form of election. Cofunds require the completed form to be in their offices by 4th December, whilst FundsNetwork need the form by 7th December.
Philip Gibbs record
Jupiter fund manager, Philip Gibbs, is one of our top rated managers having earned a five star rating by our Research Team for his management of the Jupiter Financial Opportunities fund. Since launch in June 1997, his fund has returned 825%* for investors and has been the Best performing fund in the UK, beating over 740 other funds in the process.
The new funds will utilise UCITS III legislation giving Gibbs a wider investment mandate, greater investment choice, by being able to buy or sell individual stocks through derivative instruments.
Our view
Jupiter International Financials – Similar to the Jupiter Financial Opportunities fund, but the new fund has a more flexible mandate, allowing Gibbs to invest in other asset types when he feels it more appropriate to do so. The fund is benchmarked against the FTSE Global Financials Index but has UCITS III powers to use derivatives for investment purposes (long/short) which should assist the manager to preserve and grow capital in down markets. It is planned to be a much smaller fund, which means it has the potential to be more responsive. The use of UCITS III could add risk to the fund.
Jupiter Absolute Return – a strictly ‘absolute return’ fund, which will be much less directional and aims to provide a constant positive return regardless of market conditions. This fund is likely to have a significant exposure to financials and therefore should not be considered a core absolute return fund.
Should you switch?
We continue to rate Jupiter Financial Opportunities fund 5 stars and the addition of Guy De Blonay adds to the strength of the team. In this instance the fund is a non-core holding and the new launches will also be non-core investments. We therefore do not recommend existing investors in the Jupiter Financial Opportunities fund switch to the new funds.
If there is anything you wish to discuss regarding this article, please call one of our Advisers on 020 7189 9999.
*Source: Financial Express, Bid to bid, net income reinvested as at 31.10.09