Jupiter high/growth/income funds?

butterfly72

I've just been having a browse on H&L and have come across a few funds that I find interesting. They are Jupiter Income and Jupiter High Income. There is a vast difference in the price but similar holdings. Then theres the Jupiter Growth and Income Income units!!! I was just wondering what peoples thoughts were on these funds and how one would choose one over the other. Is there some fundamental difference I'm missing? I'm just starting to learn about investing so be nice!

thanks

Mr_Mumble

butterfly72 wrote: »

I've just been having a browse on H&L and have come across a few funds that I find interesting. They are Jupiter Income and Jupiter High Income. There is a vast difference in the price but similar holdings.

The price per unit/share is usually irrelevant. The reason for the difference in pricing here is that Jupiter Income was launched nearly a decade earlier ('87 vs '96) and at twice the initial offer price (100p vs 50p).

Then theres the Jupiter Growth and Income Income units!!! I was just wondering what peoples thoughts were on these funds and how one would choose one over the other. Is there some fundamental difference I'm missing? I'm just starting to learn about investing so be nice!

thanks

The main difference between Jupiter Income & Jupiter High Income, both managed by Anthony Nutt, is the High Income fund having 20% in fixed income (gilts and corporate bonds) while the Income fund has none. If you check the Investment Managers Association (IMA) sector listings you'll find Jupiter Income is in the "UK equity income" sector and Jupiter High Income is in the "UK equity and bond income" sector. Roughly the asset allocation is:

Jupiter Income
95% equity
5% cash

Jupiter High Income
75% equity
20% fixed income
5% cash

Despite the top 10 shares looking similar and having the same fund manager performance can differ substantially amongst the equities. BP is Jupiter Income's largest holding and High Income's 2nd largest holding. However, the difference between the size of these holdings is large at 2.60% (6.75-4.15, based on end of August numbers), more than the size of many other top ten holdings.

Jupiter Income is more of a "conviction" portfolio with a higher percentage in financials, industrials and oil & gas and less in healthcare and technology than the High Income fund and the benchmark (FTSE All-share).

Jupiter Income is going to be more volatile but if the manager's assumptions are correct will outperform Jupiter High Income. On the flipside, if equities are depressed and/or the fund manager picks the wrong shares then Jupiter High Income will perform better.

Jupiter Growth & Income is an entirely different kettle of fish, different fund manager and also invests in mid and and small cap stocks.

Jake'sGran

I have a PEP which is bought in Aug '98 for £6000 and in april this year the value was £11407. I used a discount broker but not HL, the company I would use now. Your message prompted me to look at the initial contract and it looks like it is one I should move to the HL Vantage system. With them I would get a small refund on the annual charge.

Jake'sGran

Just a PS, I should have said that I take the income from mine. This has to be considered when calculating the value I quoted.