Jupiter Absolute Return to scrap performance fee

Caroline Rookes
Philip Gibbs

Jupiter will remove the 15 per cent performance fee on Philip Gibbs’ £482m Jupiter Absolute Return fund, as the manager prepares to hand over the portfolio to James Clunie.

The performance fee, which is activated on outperformance above the 3-month sterling Libor hurdle rate, subject to a high water mark, will be scrapped on 1 November.

Clunie will take over the fund on 1 September, ahead of Gibbs’ planned retirement in 2014.

Last year, Hargreaves Lansdown dropped Jupiter Absolute Return from its Wealth 150 list of favourite funds, citing the performance fee as one of the contributing factors behind the move.

Jupiter Absolute Return’s performance fee has only been paid out once in its history – and this was applied to the institutional share class rather than the retail.

The move brings the fund into line with the bulk of Jupiter’s range. Guy de Blonay and Robert Mumby’s £38.9m Jupiter International Financials fund is the only open-ended fund at the group that carries a performance fee.