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‘Fund selection is key rather than allocation’

Individual fund selection rather than asset allocation is the driver for returns in the current economic climate, according to Jupiter’s multi-manager team.

With no major moves in the stockmarket, Jupiter believes the themes it identified at the start of the year, such as natural resources, are still in place. In the current environment it expects the best returns to come from managers who think differently to the rest of the pack.

One example is Morant Wright Management’s CF Morant Wright Japan fund, which Jupiter says has performed well despite the uninspiring performance of the Japanese market. Buying natural resources funds has also contributed to Jupiter’s returns this year. Jupiter head of independent funds John Chatfeild-Roberts says: “Our fund sel- ection has made a bigger contribution to our returns this year than asset allocation. This is a completely different situation to 2003, when asset allocation had a bigger influence on returns.

“In 2003, we made two major asset allocation dec- isions, both of which had a very positive impact on returns. This year, we have not needed to make these kind of funda- mental decisions as equity markets have not been as volatile and the themes we favoured at the start of the year remain in place today. Instead, finding fund managers that are prepared to think outside the box has been crucial.”


Hitching a lift

Norwich Union head of public relations James Evans got some impromptu and rather unwelcome training in for a marathon he is about to run when checking into the Tower Thistle ahead of last week’s Money Marketing 20th anniversary bash. An unsympathetic receptionist told Evans that the lift was out of order and his room was […]

Turner says he is caught in a compulsion conundrum

Pension Commission chairman Adair Turner used his speech at the Trades Union Conference in Brighton last week to emphasise the arguments against pension compulsion without ruling out the controversial policy. He told the conference delegates – many of whom advocate compulsion – that the weight of public opinion is firmly against compelling people to save […]

Whose case to answer?

As a DBS/Sesame member, I sold only a few NDF guaranteed income bonds in 2000/01. The products were on the DBS highly recommended panel. The risk rating of this product changed from cautious to highly risky and we as advisers are being sued for misselling. However, in a recent claim which went against me, Sesame […]

Concern over special sits split

Skandia is in discussions with Morgan Stanley over concerns that clients in a structured product linked to Fidelity special situations could be disadvantaged by the portfolio being split. Morgan Stanley underwrites the capital guarantee on the Skandia protected portfolio, which took in millions of pounds and gives exposure to a basket of funds, including Anthony […]

Martin Foden discusses how convenience is affecting the construction of fixed income portfolios

In this short video, Martin Foden, head of credit research at Royal London Asset Management, discusses how convenience is affecting the construction of fixed income portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]


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