Shares in Jupiter Fund Management (JUP) fell by as much as 9 per cent on Tuesday, after the group confirmed that the outgoing manager of its £5.5bn European and £2.4bn European growth funds is to set up his own investment management business.
In April, Alexander Darwall informed the fund manager he wanted to step down from managing the open-ended funds. Along with a team from Jupiter, Mr Darwall is now in the process of launching his own boutique, Devon Equity Management, having made an application to the Financial Conduct Authority to seek regulatory approval.
However, his exit still left a question over the management of the highly-rated closed-ended Jupiter European Opportunities (JEO) fund, which currently manages £990m of net assets. This week, the fund’s board announced it would “investigate the possibility of appointing Devon to advise on its investment portfolio”. It has also hired advisers to assist in a due diligence exercise and to consult with its shareholders, and is negotiating with Jupiter on the investment management contract, although Mr Darwall’s agreement to not compete with Jupiter in the UCITS markets for two years, suggests a reappointment is likely.
