Jupiter has put off plans to introduce a global version of Anthony Nutt’s £3.7bn income trust for at least a year.
The fund firm said last month that it was considering a launch early next year but has postponed plans until at least the end of 2007.
Nutt says it is difficult to find good value investment opportunities in current market conditions and although the fund has benefited from exposure to merger and acquisition activity, this means the number of stocks he likes is shrinking. He is also concerned that the high level of private equity dealings could be storing up future problems.
Nutt says: “Value has had much stronger performance than growth in the last few years but it is getting more difficult now. The companies being bought out are good quality businesses so this reduces the spectrum of stocks in which I invest.
“The hotter parts of private equity will eventually blow over and leave parts of the UK market decimated, leaving a harsher market of unattractive areas.”
A Jupiter spokesman says: “We would rule out launching a global income fund in the short term and are not in any hurry to launch one although we are still mulling it over.”