OBSR has cut its rating on the £1bn Jupiter financial opportunities fund managed by Philip Gibbs to AA, citing the fact co-manager Guy de Blonay has an “increasing influence on the product”.
The investment research firm says the fund, which invests in financials-sector equities around the world, has lost its top AAA rating following a ratings meeting with the managers on October 14.
Jupiter hired bottom-up star de Blonay from Henderson in January this year. He became co-manager on the financial opportunities fund on June 1 alongside top-down star Gibbs, who has run the fund since 1997.
The fund suffered performance issues in recent months and in August de Blonay spoke out telling Money Marketing the managers had underestimated the impact of government stimulus measures.
An OBSR statement says: “The fund previously held an AAA Rating, which was a reflection of our conviction in Philip Gibbs’ ability to generate attractive long-term returns through his individual management style.
“It is our assessment that co-manager Guy de Blonay has increasing influence on the product and while we have a high opinion of his portfolio management skills, we believe that an AA Rating is at this stage a more appropriate reflection of our comfort in the long-term risk-reward profile that we expect him to deliver.”
From launch in June 1997 to end-June this year the fund delivered an industry leading 732.6 per cent return versus 33.8 per cent from its benchmark index.