Jupiter Asset Management
Discussion
I have a small amount of money in one of their funds (India)
I note their own share price took a dive through the week, cannot see any real reason why.
If an Asset Management company fails, whether it be Jupiter, or Hargeeaves Lansdown, Woodford, whoever, what happens to their funds which are invested in various companies depending on the fund type?
The funds are separate legal entities and are bankruptcy remote from the asset manager.
Probable scenario would likely be that the fund's assets are liquidated (potentially at a small loss from current asset values depending how big the fund easy in the markets it's invested in), and the liquidating value is returned to its shareholders, I.e. You.
In other words, bar a Ponzi scheme/Madoff scenario, you should me made good on most if not all of your investment.
Probable scenario would likely be that the fund's assets are liquidated (potentially at a small loss from current asset values depending how big the fund easy in the markets it's invested in), and the liquidating value is returned to its shareholders, I.e. You.
In other words, bar a Ponzi scheme/Madoff scenario, you should me made good on most if not all of your investment.
In reality Jupiter is one of the strongest asset management companies around, but this is really irrelevant. The funds are, as has been said, completely separate legal entities with all assets held by a third party custodian.
In the highly unlikely event of the asset manager being in financial difficulty (which Jupiter are not) then another asset manager would step in and take over (rather then the funds actually being liquidated) giving you the option to stay put or transfer out.
An example of this is Henderson taking over New Star.
So in short, the share price of an asset manager has no impact on the funds they manage. The fund values are connected only to the value of the assets the fund holds.
In the highly unlikely event of the asset manager being in financial difficulty (which Jupiter are not) then another asset manager would step in and take over (rather then the funds actually being liquidated) giving you the option to stay put or transfer out.
An example of this is Henderson taking over New Star.
So in short, the share price of an asset manager has no impact on the funds they manage. The fund values are connected only to the value of the assets the fund holds.
JulianPH said:
In reality Jupiter is one of the strongest asset management companies around, but this is really irrelevant. The funds are, as has been said, completely separate legal entities with all assets held by a third party custodian.
In the highly unlikely event of the asset manager being in financial difficulty (which Jupiter are not) then another asset manager would step in and take over (rather then the funds actually being liquidated) giving you the option to stay put or transfer out.
An example of this is Henderson taking over New Star.
So in short, the share price of an asset manager has no impact on the funds they manage. The fund values are connected only to the value of the assets the fund holds.
This. An accurate and succinct response.In the highly unlikely event of the asset manager being in financial difficulty (which Jupiter are not) then another asset manager would step in and take over (rather then the funds actually being liquidated) giving you the option to stay put or transfer out.
An example of this is Henderson taking over New Star.
So in short, the share price of an asset manager has no impact on the funds they manage. The fund values are connected only to the value of the assets the fund holds.
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