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Jupiter duo misjudged effect of stimulus

Jupiter’s financials fund managers have put their underperformance this year down to underestimating the impact of government stimulus measures.

They have admitted they were too defensive this year with cash positions as high as 50 per cent.

Jupiter’s £1.1bn financial opportunities fund is managed by Philip Gibbs and he was joined by Guy de Blonay on June 1.

De Blonay says: “We were right fundamentally but probably underestimated the power of government intervention.

“We have come to terms with the fact that governments will do everything that is needed not only to support the financial sector but also to make sure that growth kickstarts.”

The fund is now 90 per cent invested in equities to reflect this, focusing on fast-growing Asian markets such as China.

Hargreaves Lansdown senior analyst Meera Patel says: “Philip Gibbs has always pulled through. It is healthy for a fund manager to have a period of underperformance as it challenges them more.”

In 2010 so far, the fund has a negative performance of -4.2 per cent compared with a gain of 7.3 per cent from the FTSE all share financials index, according to Morningstar.

From launch in June 1997 to June 30 this year, it has delivered an industry-leading 732.6 per cent versus 33.8 per cent from the index.

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