27th Nov 2023 09:20
(Alliance News) - Chrysalis Investments Ltd on Monday said it has reached agreement with Jupiter Investment Management Ltd on new arrangements that will see Chrysalis's portfolio managers leave Jupiter but continue to work for Chrysalis from a new entity.
Jupiter, part of Jupiter Fund Management PLC, is both a shareholder in Chrysalis, with a 12.9% stake as of September, and its investment adviser, taking on that role with its acquisition in 2020 of Merian Global Investors.
Chrysalis said its two lead portfolio managers, Richard Watts and Nick Williamson, will leave Jupiter to provide advisory services from a new entity. Jupiter has agreed to release the pair effective from March 31 next year.
Chrysalis and Jupiter have agreed to end their own advisory contract from April 1. In the meantime, Jupiter has agreed to reduce its management fee to 15 basis points of net asset value per annum from 50, which will save Chrysalis GBP1.4 million. This was agreed on the basis of "likely limited investment activity in the current market environment pending the continuation vote", Chrysalis said. The vote will be held at the Chrysalis annual general meeting in the first quarter of next year.
Chrysalis said it will enter a new three-way contract with the entity of Watts and Williams for investment advisory services and with G10 Capital Ltd, part of the IQ-EQ group, for alternative investment fund manager services. Chrysalis will pay an investment advisory fee of 50 basis points of NAV per annum. It will pay an additional AIFM fee of 5 basis points up to the first GBP1 billion of NAV per annum, and 3 basis points thereafter.
Chrysalis Investment shares were up 0.9% to 68.60 pence early Monday in London. This gives the company a market capitalisation of GBP408.3 million. Jupiter Fund Management shares were up 0.7% at 84.70p in the FTSE 250 index.
By Tom Waite, Alliance News editor
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