Jupiter is to launch three fund of funds products at the end of May but has delayed the launch of ...
Jupiter is to launch three fund of funds products at the end of May but has delayed the launch of its fund of hedge funds until later in the year, writes Kira Nickerson
John Chatfeild Roberts and his colleagues Algy Smith-Maxwell and Peter Lawrey, who joined Jupiter from Lazards two months ago, intend to launch an International fund of funds unit trust, a UK Growth portfolio and a Cautious Managed Income product, subject to regulatory approval.
The International fund will be benchmarked against the FT World index and as such have a high weighting in the US market. The growth fund will have a UK core strategy at 50% and 50% invested overseas and will be managed similarly to the Lazard Growth portfolio.
Chatfeild Roberts said: "There is likely to be a fair degree of cross over in the funds we held in that trust and this one but we are also looking at some new funds. The markets have changed quite a bit, where two months ago value was the best place to be, over the past week the top performers have been growth."
The Managed Income portfolio will contain a substantial weighting in fixed income funds but it will also have some exposure to overseas vehicles.
The unit trusts will hold between 15 and 20 funds.
The group intends to launch a fund of hedge funds product into Europe but a separate vehicle for UK investors will be looked at later, he said.
Jupiter has decided not to offer a segregated portfolio service in its fund of funds offering.
Chatfeild Roberts said the capital gains tax implications were better on straight fund of funds products rather than a service.
Taper relief was more likely to be gained on the fund rather than through portfolio services and under a fund of funds VAT is not applicable to the annual management charge, which it is under a portfolio service, he said.
While the charging structure of the funds has yet to be finalised, the group is intending to keep with the market standard of offering trail commission to IFAs.
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