Jupiter Financial Opportunities

lemon26

I've just read a letter on Fidelity stating that holders of the Jupiter Financial Opportunities Fund will have the ability to either: stick totally with the fund or move a proportion (or all) of their holdings to one or both of the new Jupiter Funds being launched in December: the Jupiter Absolute Return Fund and Jupiter International Financials Fund.

I've currently got 22% of my portfolio in the Financial Opportunites fund and have been disappointed recently but anticipate growth in the long term - would taking half of this holding into the International Financials Fund (12.5% of portfolio) be a good idea? I'm only young so up for risk at present but the only thing I'm a bit wary of is the 15% performance fee.

Any thoughts on what would be best?

LongTermLurker

lemon26 wrote: »

I've just read a letter on Fidelity stating that holders of the Jupiter Financial Opportunities Fund will have the ability to either: stick totally with the fund or move a proportion (or all) of their holdings to one or both of the new Jupiter Funds being launched in December: the Jupiter Absolute Return Fund and Jupiter International Financials Fund.

I've currently got 22% of my portfolio in the Financial Opportunites fund and have been disappointed recently but anticipate growth in the long term - would taking half of this holding into the International Financials Fund (12.5% of portfolio) be a good idea? I'm only young so up for risk at present but the only thing I'm a bit wary of is the 15% performance fee.

Any thoughts on what would be best?

Since May it's up about 18 or 19%, 28% since last November and 35% over the last 18 months. 3 years is +30% and 5 years is about 108% - past performance, of course...

You must have bought at a bad time, because I've been quite pleased with mine for quite a few years. Remember that the fund took a hit last year for being heavily into financials!

I haven't see the letter you mention or the new funds, but the biggest thing against them in my mind would be that they are new - no track record, unlike the Financial Opps.

As far as performance fees go, I don't like them but they are usually only applied if the manager exceeds his target - which means he must have done a good job; and the fees will only be applied to the growth/income over that so it's like people saying they'd rather take a pay cut than find themselves having to pay 40% income tax - it just doesn't work that way.

The thing to remember is that if you are currently making a loss on Financial Opps you would only be realising that loss by selling now, so the idea is to sell when you've made a profit. However, 22% in one specialist fund is quite high, but your suggestion would still keep yourself with a high holding in financials. Personally, I would hold on to it and wait for it to rise - once you're making a profit, sell some and diversify out of financials.

cloud_dog

lemon26 wrote: »

I've currently got 22% of my portfolio in the Financial Opportunites fund and have been disappointed recently but anticipate growth in the long term

How can you be dissapointed in Phillips Gibbs, in the investment world he's one of the top managers - spoken about in hushed tones like Patrick Evershed and Neil Wooford.

Jupiter Financial Opps may have been slightly lagging the growth during this recent period but, my man Phil was one of the few who successfully managed to move to a high cash position before the credit crunch.

lemon26 wrote: »

- would taking half of this holding into the International Financials Fund (12.5% of portfolio) be a good idea?

Well, you need to understand what is happening and make a decision. Guy De Blonay, the EX manager of New Start Global Financials is comming back to the fold (Jupiter), where he used to work along side Phil. Guy, also has an excellent track record and was Phil's prodigee so doesn't have as long a track record.

I don't think everythings been completely published yet but...... I think Guy will come in and run the Global Financials fund and Phil will concentrate on the Absolute fund.

lemon26 wrote: »

I'm only young so up for risk at present but the only thing I'm a bit wary of is the 15% performance fee.

Any thoughts on what would be best?

Not sure about this 15% performance fee, unless it is over and above a fairly high target. I've never got particularly het up over management fees; its the returns you need to focus on.

Ian_W

I agree with cloud_dog, wouldn't hear a word said against my mate Phil.

First invested in Jupiter FO in June 2008 and even when the market (particularly banks) fell off a cliff in the October he suffered so little that my holding was still in the blue - a comfort given that most others were well and truely in the RED - and by some margins. 18 months later his fund is still showing a 30% gain since I bought 18 months ago - he may not have caught all the gains since March but he didn't lose much to start with, unlike many other managers.

It's no wonder he's highly rated wherever you look but I'm not so sure about de Bloney.

ses6jwg

Only invested in Jupiter Financial Opps in about July of this year - read quite a few good things about the Manager and it was one of thisismoney's top picks.

Currently showing a 21% and quite happy to stick with it.

It was one of the first Trusts I've bought into

lemon26

Sorry, to clarify, to say I'm disappointed was maybe out of order, having read his track record (which is why I invested) I was expecting immediate gains - however, I've not lost anything, just pretty much stagnated over the last 2 months so that's not actually bad whereas someof my funds have nosedived, especially recently.

I've read about De Blonay and it would appear that, from 2010, he will be joitn manager of the FO fund, allowing Gibbs to concentrate on the two new offerings - I'd imagine that eventually De Blonay will takeover the FO fund as his own. I like the exposure to the financial sector so will probably take 50% into the Intl Financials as I've not lost anything, just not made anything either.

What would the effect be on the FO fund if people jump ship to the new funds - would it make any difference to the valuation?

Here's the links by the way:

https://www.fidelity.co.uk/investor/research-funds/fund-launches-changes-mergers/jupiter-offer.page?

Old_Slaphead

cloud_dog wrote: »

How can you be dissapointed in Phillips Gibbs, in the investment world he's one of the top managers - spoken about in hushed tones like Patrick Evershed and Neil Wooford.
QUOTE]

Patrick Evershed ? Hushed tones ?

Shouldn't think so after his last few years at NS Select Opps.

LongTermLurker

lemon26 wrote: »

I was expecting immediate gains - however, I've not lost anything, just pretty much stagnated over the last 2 months

I think if you're expecting to see growth in your first 2 months you will get a reality check as you continue investing - and that's not a bad thing and certainly not criticism.

Realism dictates that you will see climbs but will also probably see falls, which in the short term should be ignored, and after a while (probably a couple of years or so) you'll stop looking every day/week and will leave the fund mangers to it, revisiting your portfolio every few months or once a year to re-assess the situation - not looking at the value will help you ignore the short-term falls without feeling the inevitable pangs of doubt.

lemon26

I know it's not criticism, it's just that investing is totally new to me so I have been looking every day and I know that it's stupid to expect immediate returns - it's just me!! Once the novelty of it has worn off I will probably only look once a month but I'm in the process of building my portfolio at present too so do have a look at it for balances etc quite regularly. Over the long-term this fund should be a good one as banks are pretty low at the moment in my opinion.

StevieJ

lemon26 wrote: »

I've just read a letter on Fidelity stating that holders of the Jupiter Financial Opportunities Fund will have the ability to either: stick totally with the fund or move a proportion (or all) of their holdings to one or both of the new Jupiter Funds being launched in December: the Jupiter Absolute Return Fund and Jupiter International Financials Fund.


Any thoughts on what would be best?

I have only just moved some funds from Newstar financial to Jupiter because the old Newstar manager De Blonay has moved over there.

boogienights

The performance of financials funds depends more than most on underlying economic prospects - bank stocks are often the first to prosper/suffer on good/bad economic news.

If you're confident re: a global recovery then I'd stick with the financials fund, although the new version does give Gibbs a bit more freedom to use derivatives etc, so might be the better option.

I wouldn't go for the Absolute return fund as don't think Gibbs has a track record of running one of these?