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Morningstar OBSR downgrades three Jupiter funds

Guy de Blonay

Three of Jupiter Asset Management’s funds have been downgraded by Morningstar OBSR, including the £438m Jupiter Financial Opportunities fund.

The other affected vehicles are the £240m Jupiter Global Managed fund and the £332m Jupiter Ecology fund.

The investment research consultancy has changed its analyst rating on Guy de Blonay’s Jupiter Financial Opportunities fund from silver to bronze.

“Whilst we acknowledge this has been an unprecedented environment for managing a financials fund, we believe a Morningstar OBSR analyst rating of bronze is a more suitable reflection of our conviction in the fund,” Morningstar OBSR says.

“We are however reassured by the increased structure with which the manager is now investing to navigate the exceptional conditions.”

The fund’s factsheet to June 30 shows the portfolio has underperformed the MSCI World Financials Index benchmark over one and three years. However, it has outperformed over five years.

Morningstar OBSR’s analyst rating on the Jupiter Global Managed fund has been set at neutral. The fund was placed under review after lead management responsibilities moved from John Chatfeild-Roberts to Simon Somerville.

“While we have confidence in Mr Somerville’s ability to manage the fund diligently, we believe a neutral rating is more appropriate for the fund in the context of an increasingly competitive global sector,” the consultancy says.

The Jupiter Ecology fund has seen its rating cut from silver to bronze as Morningstar OBSR says this reflects its conviction in the portfolio in a “narrow but competitive” sector. The fund has underperformed the FTSE World Index benchmark over one, three and five years to June 30.

“We continue to believe that fund manager Charlie Thomas can add value over the long term through his focus on investment in companies that are responding positively to and profiting from the challenge of environmental sustainability and have made a positive commitment to social wellbeing,” the analyst adds.


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