Investments  

Bonham-Carter: We must tread carefully with clean fee shares

Jupiter’s chief executive Edward Bonham-Carter has cautioned against hasty decisions on bespoke share prices for platforms.

Mr Bonham-Carter said there was “a very real tension” in the market regarding so-called ‘superclean’ share classes, which platforms such as Standard Life are attempting to secure. They are designed to reflect the rebates platforms were previously able to negotiate before kickbacks to investors was outlawed the the regulator.

“We don’t want to make rash decisions,” Mr Bonham-Carter said. “Platforms are as important to us as we are to them - we won’t make any hasty decisions, we have to make hay slowly.

Article continues after advert

“It is a minefield out there - there is a need to tread carefully.”

The FTSE 250-listed fund management group reported a net inflow of £426m into its open-ended funds in the first half of 2013, down from the previous six months’ inflow of £1bn primarily due to the effects of the RDR.

In spite of the fall in flows the company’s share price has climbed nearly 11 per cent today as investors focused on the 40 per cent increase in its interim dividend.

Elsewhere Mr Bonham-Carter said Ben Whitmore, who took over the Jupiter Income fund from retiring Tony Nutt in January, had already begun to make progress on improving the product’s short term performance. But the chief executive added that it would take time to turn around the flows into the Income fund, which has fallen in size by roughly £500m since the start of 2011, according to FE Analytics estimates.