Jupiter urged to remove performance fee on its Absolute Return Fund as manager changes

16th July 2013

Broker Hargreaves Lansdown has called on fund firm Jupiter to remove the performance fee in its Jupiter Absolute Return fund as the fund changes managers.

James Clunie will become manager of the Jupiter Absolute Return Fund with effect from 1 September 2013.

The current manager Philip Gibbs will retire from fund management in 2014. He is best known for his management of the Jupiter Financial Opportunities fund from 1997 until 2011. which he co-managed with Guy de Blonay since 2010.

Gibbs will remain as the manager of the Jupiter Second Split Investment Trust until October 2014 when the trust will wind up.

Prior to this appointment, Clunie has been managing the Scottish Widows Investment Partnership equity long/short SWIP Flexible Strategy fund and has a 24 year career in fund management and academia. Among other things he has a PHD in short selling.

Hargreaves Lansdown senior investment manager Adrian Lowcock says: “Philip Gibbs has an impressive long term track record managing the Jupiter Financial Opportunities fund and the Jupiter Hyde Park hedge fund.  However since the launch of the Jupiter Absolute Return Fund we have been extremely disappointed with his performance. His negative outlook on the global economic recovery has not rewarded investors.

“Philip’s retirement gives Jupiter an opportunity to wipe the slate clean and start fresh with the Jupiter Absolute Return Fund.  We see the appointment of James Clunie as a positive move. James is an experienced manager and has a proven track record in managing absolute return strategies and he has delivered some strong performance whilst at Scottish Widows Investment Partnership (SWIP).  This also provides Jupiter with a good opportunity to review the fee structure of the fund with a view to removing the performance fee.

“Jupiter have given advisers and investors plenty of notice of the planned changes and with Gibbs remaining at Jupiter until 2014 the transition from one fund manager to the other should be smooth.  We will look to meet the new manager and conduct a detailed analysis of James Clunie’s ability to add value, before advising investors what to do.”

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