Jupiter Asset Management has entered the multi-manager market
with the Jupiter portfolio service.
The three fund of funds each giving investors access to between
15 and 20 funds.
Investors can choose from the worldwide portfolio trust, the growth portfolio trust and the income portfolio trust. The three portfolio trusts have been designed to cater for different investment needs.
The worldwide portfolio focuses capital growth through funds that invest internationally. The income portfolio invests in income-producing funds mainly in UK and the growth portfolio seeks capital growth from European, Far Eastern and US funds although it has a UK bias.
The multi-manager approach has become popular, particularly with the rise of
fund supermarkets. The main advantage for investors is that they are not tied to one fund manager. Investment risk can be diversified through different fund managers as well as region and sector. The administration is also simplified as it is carried out by just one company, Jupiter.
As well as selecting the best performers, the fund manager may choose a fund
which does not have a great track record but has a good fund manager taking it over. In this instance, investors will need to trust the fund manager's judgement, which more sophisticated investors may be unwilling to do.
According to Standard & Poor's, the Jupiter fund of investment trusts s ranked 74 out of 127 funds based on £1,000 invested on a bid-to-bid basis with net income invested over three years to June 4, 2001.