If existing investors do switch some or all of their investment into the Jupiter absolute return and international financials funds, this will not trigger a capital gains tax liability.
The two new funds will make Gibbs’ skills in long/short investing available to retail investors for the first time.
Absolute return will have a global mandate, using derivatives and cash to achieve its aim of outperforming in all market conditions. The fund will be managed along similar lines to Gibbs’ existing hedge fund, but will be less leveraged and aim for lower volatility. It will be benchmarked against three-month Libor.
International financials will differ from Gibbs’ financial opportunities in its Ucits III structure, which will allow the manager to short individual stocks and indices. It will have a similar investment style to the global financials fund, an offshore Sicav also managed by Gibbs.
It will be benchmarked against the FTSE Global Financials index.
Jupiter has written to direct clients and IFAs who have invested, or have clients invested in Jupiter financial opportunities, informing them of the switching facility.
Those who have invested through the Cofunds, Fidelity FundsNetwork and Hargreaves Lansdown fund supermarket platforms will also be able to participate in the switching facility.
Earlier this week Jupiter announced that Guy de Blonay is to take on joint management of the Jupiter financial opportunities fund.
He will manage the £1.4 billion fund alongside Philip Gibbs, the head of the financials team, from summer 2010.