Fixed Income  

Hargreaves cuts Jupiter Corporate Bond from Wealth 150 list

Jupiter’s £209.3m Corporate Bond fund has been removed from fund broker Hargreaves Lansdown’s Wealth 150 list of recommended funds.

The fund has been managed by Rhys Petheram since October 2012, who took over from John Hamilton.

Analyst Meera Hearnden said the fund’s performance under Mr Petheram had been “unexciting” relative to both its benchmark and its peer group. Between October 1 2012 and November 8 2013 the fund gained 2.8 per cent, while the IMA Sterling Corporate Bond sector posted an average return of 4.7 per cent. The fund’s benchmark, the iBoxx Sterling Corporate All Maturities index, gained 5.9 per cent in that period.

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Ms Hearnden said: “Our analysis shows Rhys Petherham has struggled to add value through his bond selection since taking over. During this time, the outlook for corporate bonds has also become more challenging.

“In this uncertain environment for corporate bonds, we prefer to invest with managers who have more experience.”

The analyst added that Hargreaves did not have any major concerns about Mr Petherham but said the fund currently “does not warrant a place” on the Wealth 150 list, which now has 94 funds in total. Jupiter has nine products on the list.