Significant volatility and risks remain for investors during 2009, according to Philip Gibbs, manager of the top performing Jupiter Financial Opportunities Fund.

Philip produced a positive return of 7.25% during 2008 against the backdrop of the worst equity markets since 1973-1974, and a period during which the FTSE Financials Index returned -47.9%. This return places the Fund 125th out of all 2,427 unit trusts/Oeics. Since launch, the Jupiter Financial Opportunities Fund has returned 699.19%, compared with 8.84% for the FTSE Financials Index. Since launch in 1997, the Fund has produced a compound annual return of 19.65% against 0.73% for the FTSE Financials Index. This places the Fund 1st out of the 740 unit trusts/Oeics in existence for that period.*

Philip has produced such a return in 2008 by acting quickly to changing economic circumstances. He has been wary of companies with exposure to the US and UK for several years due to high levels of household borrowing and his growing caution on the outlook for financials in the face of a slowing economic environment led to him raising cash in the portfolio in early 2007.

In November 2007, Philip took further tactical steps to protect the value of the portfolio. This included positions in long dated government bonds and a high cash balance. The majority of investments have been outside the UK, thereby benefiting from Sterling's weakness.

Gibbs believes that the financial sector continues to be a challenging area in which to invest and that the risk of profit warnings remains very high. He said: "The market and government policy makers have consistently underestimated the depth of the banking crisis and its effects on the global economy. We are still at the early stages of the global recession, with the implications of rising unemployment and falling house prices only just being felt.

"Credit conditions are far from normal, with interest rate spreads remaining significantly above historic levels. This implies that banks are unwilling or, more likely, unable to extend credit in an environment where personal and corporate bankruptcies are on the rise and rebuilding balance sheets remains a priority. It is quite possible that banks will require further government assistance during the year as the economic environment deteriorates.

"Despite the poor economic backdrop, some opportunities for investors remain. Valuations appear cheap, for example, in some parts of the insurance sector where companies are not far from or at discounts to their net asset values. However, there are few stocks that are able to truly be relied upon during the continuing credit squeeze and economic slowdown."

-ENDS-

 
Notes to Editors

* Source Financial Express, bid to bid. Figures for one year return from 31.12.2007 to 31.12.2008. Figures for since launch return from 2.6.1997 to 31.12.2008

FUND FACTS
UK authorised unit trust
Launch date: 2 June 1997
Managed by Philip Gibbs since launch
Benchmarked against FTSE Financials Index
Fees: 5.25% initial and 1.5% annual management charge
Minimum investment: Lump sum = £500, Monthly saving = £50
Sterling denominated

PHILIP GIBBS BIOGRAPHY
Joined Jupiter in 1997
More than 11 years experience as a fund manager; over 15 years experience analysing financial stocks
Manager of Jupiter Financial Opportunities; Jupiter Global Financials Select (Sicav); Jupiter Second Split Investment Company; Jupiter Hyde Park Hedge Fund

NOTE

Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Services Authority and their registered address is 1 Grosvenor Place London SW1X 7JJ. The group is collectively known as "Jupiter". The above commentary represents the views of the Fund Manager at the time of preparation and may be subject to change, and this is particularly likely during periods of rapidly changing market circumstances. They are not necessarily those of Jupiter and should not be interpreted as investment advice. Past Performance should not be seen as a guide to future returns, the value of an investment and the income from it can fall as well as rise and may be affected by exchange rate variations. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.