View more on these topics

BlackRock bets against Jupiter over asset management study

stock-stockmarket-ftse-index700x450

BlackRock has bet against the share price of rival Jupiter as analysts point to Jupiter as being most exposed to the fallout from the FCA’s asset management study.

The Financial Times reports BlackRock began shorting Jupiter in October, and increased its short position from 0.88 per cent to 0.94 per cent last month when the regulator published its interim report into the fund management sector.

The FCA has criticised the practice of high active fees for low returns, and proposed an all-in fund management fee and greater clarity on communicating fund charges.

Jupiter has the highest number of retail clients of the UK-listed fund groups, with individual investors accounting for about three-quarters of the firm’s £40bn assets under management.

Broker Liberum analyst Justin Bates told the newspaper: “The FCA is quite clearly focused on pricing. One of the bear bets on Jupiter is that it will bear the brunt of the [FCA’s proposals] more than anyone else, given its higher revenue margin.”

A total of 15 analysts covering Jupiter have either a buy or hold recommendation, compared with three who have a sell recommendation.

BlackRock and Jupiter declined to comment.

Recommended

25

Tip of the iceberg: FCA sets its sights on adviser charges

The FCA plans to shake up the investment industry after its long-awaited interim report on fund charges found active management fails to justify high fees for lacklustre returns. The watchdog has put forward a number of reforms for the market, including an “all-in fee” for funds, greater clarity on fund charge communication, better identification of underperformance, and easier […]

Andrew-Bailey-PRA-2013-500x320.jpg

FCA chief attacks managers keeping £100bn in ‘partially active’ funds

Financial Conduct Authority chief executive Andrew Bailey has hit out at fund managers for keeping more than £100bn in funds that are only “partially active.” The FCA is “not saying passive management is better than active”, Bailey says, but cites “strong and consistent margins” and unwavering charges in active funds compared to falling passive costs […]

Introducing Trevor Greetham

Ryan Medlock, Investment Proposition Manager, Royal London Royal London Asset Management’s (RLAM) new head of multi-asset is officially up and running. I want to look at what expertise Trevor brings to the table and how this affects the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs). Trevor Greetham joined RLAM in April 2015 from […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment