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Jubilee investors miss out on market upturn

Jubilee Financial Products’ decision to delay the launch of four of its plans in anticipation of a market correction has resulted in clients missing out on the recent market rally.

The company delayed four investment products from August 7 to September 25, predicting that the FTSE 100’s bull run would come to a halt in September.

However, the market continued to rally and rose by 350 index points between the two strike dates, so clients invested with less favourable protection and lower potential upside.

Postponing the launch in August, head of UK distribution Ian Millward said: “We have decided to hold off until next month as we believe there will be a market correction. If we are right, this will ultimately reward investors.

“Trying to call the market is generally a pretty danger- ous game to play but just occasionally there are times when it is the right thing to do.”

But Millward says that when Jubilee made this call, it wrote to all investors explaining its reasons, copying in their IFA, and only proceeded if the investor confirmed that they were happy.

He says: “We do not plan to try and call markets but we do plan to take views and hopefully they will work out more times than they do not.”

Jubilee would not disclose the business volumes or how much money was committed to the four plans but said they were all “well supported”.

City Asset Management investment analyst Stuart Fox says: “I do not think that they should be making a call on what the index is going to do. That is down to their clients.”

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