Jupiter duo misjudged effect of stimulus

Jupiter’s financials fund managers have explained their underperformance this year, saying they underestimated the impact of government stimulus measures.

Philip Gibbs
Philip Gibbs

They have admitted they were too defensive this year with cash positions as high as 50%.

Jupiter’s £1.1 billon Financial Opportunities fund is managed by Philip Gibbs and he was joined by Guy de Blonay on June 1.

“We were right fundamentally but probably underestimated the power of government intervention,” says de Blonay.

“We have come to terms with the fact that governments will do everything that is needed to not only support the financial sector but make sure that credit growth kick starts.”

The managers are now 90% invested in equities to reflect this, focusing on fast-growing Asian markets like China. (article continues below)

Meera Patel, a senior analyst at Hargreaves Lansdown, says: “Philip Gibbs has always pulled through.

“Actually it is healthy for a fund manager to have a period of underperformance as it challenges them more.”

In 2010 so far the fund lost 4.2% compared with a gain of 7.3% from the FTSE All Share Financials index, Morningstar said.

From launch in June 1997 to June 30 this year it delivered an industry-leading 732.6% versus 33.8% from the index.