The £6.8m Jupiter UK Opportunities fund will close on 20 September, according to a letter sent to shareholders, due to “limited demand from clients” and its small size.
The derivatives-based fund, which resides in the IA Targeted Absolute Return sector and has been managed by James Bowmaker since January 2019, has been falling in assets under management since July 2020.
It has underperformed its Bank of England Base Rate benchmark over one, three, five and 10 years, according to data from FE Fundinfo, with the fund having returned 2.9% over three years while its benchmark gained 9.6%. It has lost 5.5% over the last decade, while the base rate has risen by 13%. The fund aims to achieve a positive absolute return in relation to the Bank of England base rate over rolling three-year periods.
See also: “Jupiter: Chrysalis and Whitmore exits cause £3.4bn outflow“
While Jupiter had considered merging the fund into a different vehicle, it concluded there were no appropriate or relevant funds in the company’s stable to combine it with. The closure will cost Jupiter approximately four basis points.
If investors take no action, their invested cash will be returned to them via bank transfer or cheque. However, they have until 11.59am on the 19 September to choose to reinvest in an alternative Jupiter mandate.
Manager James Bowmaker will remain at the firm. A spokesperson from Jupiter said: “We confirm that James Bowmaker is staying at Jupiter and will continue in his capacity as an investor following closure of the UK Opportunities fund.”
