Bestinvest cuts rating on Gibbs’ Jupiter Absolute Return fund

Philip Gibbs 480

Bestinvest has downgraded Philip Gibbs’ £536.4m Jupiter Absolute Return fund following a period of flat returns.

The fund’s rating has been cut from four stars to two stars in the downgrade and it has been taken off Bestinvest’s Premier Selection list of rated funds.

Bestinvest senior research analyst Robert Harley says: “The Jupiter Absolute Return fund has now delivered flat returns since launch in 2009. Over this period the manager has restricted his positions mainly to currency bets, with limited exposure to equity and bonds markets.”

According to FE Analytics, the fund is ranked fourth quartile in the IMA Targeted Absolute Return sector over six month, one year and three years to 25 June 2013. Over three years to that date, it has returned just 0.04 per cent compared with the 9.27 per cent gain in its peer group.

Harley says: “The manager has stated he is struggling to find high conviction opportunities, whilst at the same time he has been wary of more illiquid market conditions in other asset classes.

“The manager has a strong longer-term track record but we question whether the current market backdrop is suited to his skill set.”

Jupiter Absolute Return’s cumulative returns to 25 June 2013

 
Fund -1.55% -0.98% -2.16% 0.04%
-0.19% 2.48% 5.67% 9.27%
-1.36% -3.37% -7.40% -8.44%
  49 / 66 58 / 64 60 / 63 40 / 47
3 4 4 4

Source: FE Analytics