Jupiter Financial Opportunities

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.

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.

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 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.