The Jupiter UK Growth Fund has been removed from the Wealth 150 list of our favourite funds across the major sectors.
Our research aims to identify fund managers who have demonstrated an ability to add value over and above their benchmark and / or peer group. Importantly, we must also believe they have the skill to repeat this success over the long term.
Steve Davies, the fund’s manager, has shown some ability to perform well in the past by focusing on the prospects for individual companies and investing in a small selection of those he believes have excellent growth prospects. We like fund managers who take this type of approach.
More recently we believe the manager allowed his broader economic and political views to sway his decision making. For example, prior to the EU referendum the fund was positioned to benefit from a ‘remain’ vote and the fund subsequently performed poorly.
All fund managers experience periods of poor performance and we are typically happy to invest with them through these periods. However, allowing the portfolio to be impacted so significantly by a one-off event such as the EU referendum weakened our confidence in the manager.
Furthermore, with an ongoing charge of 1.02% (in addition to the Vantage charge, maximum 0.45% per annum) the fund is priced at a significant premium to other funds in the sector that we feel have better long-term prospects.
Given the fund has not lived up to our expectations, the fact we have higher conviction in other UK managers, and that we do not feel the overall proposition represents good value for money, we have taken the decision to remove the fund from the Wealth 150. Our favourite funds in the sector continue to feature on the Wealth 150+.
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