Jupiter Absolute Return fund - new launch

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pauldreed
pauldreed Posts: 222 Forumite
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in Savings & investments
H-L speak very positively about this new launch. Is H-L's enthusiasm usually well balanced, or fuelled by over eager marketing?
I have never bought into a new launch before, and I suppose with no fund analysis, you have to judge the fund by the fund manager?
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  • Ian_W
    Ian_W Posts: 3,778 Forumite
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    THIS 2 page thread discusses the new fund etc quite extensively.

    As for HL - always very enthusiastic about new funds (Heart of Africa Fund anyone?) if they can get NEW MONEY out of you! Having said that Gibbs has an outstanding track record both with his Financial Ops fund and a Hedge Fund he runs. Depends whether/how Absolute Return funds fit within your thinking?
  • sunnyyorkshire
    sunnyyorkshire Posts: 33 Forumite
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    Thanks, it makes interesting reading.
    I am tempted though...
  • gryphon
    gryphon Posts: 80 Forumite
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    While i was getting ready to invest in this new fund during the week i came across this article which thows up a couple of interesting points.

    http://www.ft.com/cms/s/2/d9fa6056-d609-11de-b80f-00144feabdc0.html
  • sue.b_2
    sue.b_2 Posts: 105 Forumite
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    That article makes very interesting reading. I was planning to invest in the Jupiter fund but will need to do a bit more research now. Thanks.
  • Rollinghome
    Rollinghome Posts: 2,677 Forumite
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    NickyDee wrote: »
    "The hurdle is the 3 month LIBOR." Does anyone happen to know what this figure looks like?
    Do you mean what is LIBOR currently? It's just 0.60% pa so hardly the sort of "hurdle" that warrants a reward.
    • What are considered cheaper/better alternatives?
    Would depend what you're looking for. If it's a steady low risk return you might consider some of the better low cost balanced managed funds such as those run by CF Miton etc.
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
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    NickyDee wrote: »
    It is a difficult one, isn't it?! A bit of a double edge sword as you could argue that this gives them even more incentive to make a larger profit.
    Mmm. That's a good idea. So if we pay bankers large bonuses, that gives them even more incentive to make a larger profit!
    plus ça change, plus c'est la même chose.
  • Gymgenius
    Gymgenius Posts: 208 Forumite
    edited 10 December 2009 at 11:16AM
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    gryphon wrote: »
    While i was getting ready to invest in this new fund during the week i came across this article which thows up a couple of interesting points.

    http://www.ft.com/cms/s/2/d9fa6056-d609-11de-b80f-00144feabdc0.html


    Anyone know what Absolute funds Barclays Wealth are punting with the low AMC and Performance Bonus rates?

    Lots of information here .... not!
  • Rollinghome
    Rollinghome Posts: 2,677 Forumite
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    edited 10 December 2009 at 6:01PM
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    NickyDee wrote: »
    A bit of a double edge sword as you could argue that this gives them even more incentive to make a larger profit.

    If I'd already been charged the estimated TER of 1.56% for a return of just 0.70% I don't think I'd be saying "Well done Mr Gibbs you deserve far more than that, help yourself to another 15% of that magnificent return".



    .
  • Rollinghome
    Rollinghome Posts: 2,677 Forumite
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    edited 10 December 2009 at 1:20PM
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    The difficulty with performance fees/bonuses, as shown by Nick Leeson, Fred Goodwin et al, is that if they're tempted to put your money on the equivalent of the 3.30 at Sandown they can earn a tasty bonus if it comes up and its only your money if it goes down. Heads they win and tails you lose.

    Some "absolute returns" can be less absolute than others. This is the UBS Absolute Return Bond, down over 30% since launch: http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/u/ubs-absolute-return-bond-accumulation/charts

    That's not an opinion of the Jupiter fund btw which might turn out to be a fabulous investment that keeps throwing double sixes.. or not.
  • pressuredrop_2
    pressuredrop_2 Posts: 311 Forumite
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    Rollinghome wrote: »
    The difficulty with performance fees/bonuses, as shown by Nick Leeson, Fred Goodwin et al, is that if they're tempted to put your money on the equivalent of the 3.30 at Sandown they can earn a tasty bonus if it comes up and its only your money if it goes down. Heads they win and tails you lose.

    Mr Gibbs has stated that he will be investing in the fund, so the comparison with Mr Leeson and Mr Goodwin may not be valid.

    I hope "investing in the fund" means a reasonable amount of money, as I assume Mr Gibbs has a pleasant salary. And by pleasant, I mean GBP millions per annum.
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