2nd Oct 2019 18:31
(Alliance News) - Jupiter European Opportunities Trust PLC on Wednesday said it has appointed advisers to conduct due diligence on Devon Equity Management Ltd and a proposed new alternative investment fund manager, FundRock Management Co.
Shares in Jupiter European closed down 3.7% at 803.00 pence in London.
Devon Equity is being launched by former Jupiter European Fund manager Alexander Darwall.
The plan is for FundRock, which manages "over 500 funds with assets under management of more than GBP80 billion", to act as Jupiter's alternative investment fund manager. Devon Equity, meanwhile, would be Jupiter European's delegated investment manager.
These changes would take effect in November.
It has been agreed with current manager Jupiter Fund Management PLC for the current agreement to be terminated. If Devon Equity and FundRock are not hired than Jupiter European will " engage with Jupiter and negotiate fees to be paid thereafter".
Under the current deal, Jupiter Fund Management is entitle to a quarterly base management fee of 0.1875% of total assets plus a 15% performance fee if the firm beats its benchmark.
With the new deal, Devon and FundRock will be paid aggregate management fees of 0.90% per annum on net assets and up to GBP1 billion and 0.8% per annum on any net assets over that amount with no performance fee.
By Anna Farley; [email protected]
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