Jupiter Asset Management has hit back at Hargreaves Lansdown’s criticism of its performance fees after the £742m Jupiter Absolute Return fund, managed by Philip Gibbs (pictured) was dropped from its Wealth 150 fund buy-list.
A Jupiter spokewoman says no performance fee has been levied on the Absolute Return fund since its launch in 2009.
She says: “The fund is designed to generate an absolute return and we cannot simply change the fee as any changes would require us to seek unitholder approval.
“Given that we would have to increase the annual fee as a result, it is by no means certain that investors would agree. Futhermore, given that a performance fee has not been charged since the fund’s launch, investors have simply been charged a 1.25 per cent annual fee, 0.25 per cent less than if we had a higher annual fee instead.”
Hargreaves Lansdown dropped the Jupiter Absolute Return fund from its Wealth 150 buy-list after criticising performance fees. The performance fee was a contributing factor for the fund’s departure from the buy-list.
The spokeswoman added: “The fund’s charging structure is one of the most competitive in the sector and while measures to stimulate the economy have depressed Libor below the rates of inflation in the short term we do not feel it is appropriate to be chopping and changing the fund’s charging structure for what we believe is a unique, temporary situation in markets.”