Jupiter Asset Management is to launch two Ucits III funds for fund manager Philip Gibbs.
The two unit trust funds, which have been authorised by the FSA, will be launched in the next two to three months.
The Jupiter Absolute Return Fund will seek to generate an absolute return independent of market conditions by investing on a global basis. The fund will use the full Ucits III powers and use investment tools such as cash and derivatives in order to enable Gibbs (pictured) to respond to changing market conditions. The fund, which will be benchmarked against three month Libor, will be managed in a similar style to Gibbs’ hedge fund, albeit with the aim of less leverage and lower volatility.
The Jupiter International Financials Fund will seek to achieve long term capital growth principally through investing in financial companies on an international basis. Unlike the Jupiter Financial Opportunities Fund, Gibbs will be able to make use of the wider investment powers allowed under Ucits III i.e. to use derivatives for investment purposes, which will include the ability to short individual financial stocks and indices. The fund, which will be benchmarked against the FTSE Global Financials Index, will have a similar investment style to Gibbs’ offshore Sicav, the Jupiter Global Financials fund.
Gibbs says: “The combination of the huge global fiscal stimulus and low interest rates has resulted in the global economy avoiding a depression and this has led to a strong rally for equity markets. I expect stock markets will be able to make further progress while this stimulus remains in place. However, longer term, governments will need to tackle ballooning budget deficits and economic recovery will ultimately force interest rates higher.”
