TIDMJUP
RNS Number : 0182Z
Jupiter Fund Management PLC
09 January 2024
Alex Savvides to join Jupiter; Ben Whitmore to leave the
Company. Trading Update.
Jupiter announces it has recruited Alex Savvides. He will join
from JO Hambro Capital Management where he currently manages the
GBP1.3bn UK Dynamic Fund (the "Fund") as well as approximately a
further GBP1bn in segregated mandates. Alex Savvides has managed
the strategy since its inception in June 2008 and has consistently
delivered strong performance. The Fund is ranked top decile over 1
and 3 years and top quartile over 5 and 10 years [1] . Since
inception, the Fund also has top decile performance and is ranked
6(th) in the Lipper all Company universe (as at the end of December
2023). Alex Savvides is expected to join Jupiter by the Autumn of
2024 and, upon arrival, will assume management of the GBP2.1bn
Jupiter UK Special Situations Fund.
Ben Whitmore, the current manager of the Jupiter UK Special
Situations Fund (AUM GBP2.1bn), Jupiter Income Trust (AUM
GBP1.6bn), Jupiter Global Value Unit Trust (AUM GBP1.0bn) and
Jupiter Global Value SICAV (AUM GBP0.5bn), and segregated mandates
with a further GBP4.8bn of AUM, has informed the company of his
intention to leave in order to pursue his ambition of establishing
an independent value equities boutique in due course, subject to
obtaining the necessary regulatory approvals. He will remain with
Jupiter until at least the end of July 2024, during which time
there will be an orderly and collaborative transition process with
his successors in relation to the Jupiter assets he currently
manages.
On 20 November 2023, Jupiter announced the appointment of Adrian
Gosden and Chris Morrison (who have since joined the company) and
that they would assume management responsibilities for the Jupiter
Income Trust (AUM GBP1.6bn) during the course of this year. At GAM,
Adrian Gosden's UK Equity Income Fund has recorded top quartile
performance over the last three years, returning 33.0% versus the
FTSE All Share benchmark of 24.5%. [2] Prior to his time at GAM,
Adrian Gosden co-managed the GBP10bn UK Equity Income franchise at
Artemis.
Alongside a number of industry standard covenants, Jupiter and
Ben Whitmore have agreed that his new boutique, once established,
will not compete with Jupiter for a period of two years from his
leaving date in relation to both the UK Equity Income sector and
the non-UK open-ended UCITS market.
Jupiter is also in discussions with Ben Whitmore to establish
whether, subject to due diligence and broader governance
considerations, it would be in the best interests of clients of the
Jupiter Global Value Unit Trust for that fund to be managed by
Ben's new boutique, once established, as a delegated investment
manager of Jupiter.
Matthew Beesley, CEO, Jupiter Asset Management, said: "Jupiter
has always been a good home for outstanding talent and, since I
joined Jupiter in January 2022, we have been working very hard to
ensure that we have a pipeline of new hires which can both broaden
our range of truly differentiated strategies and ensure orderly
succession. I am thrilled that Alex is joining us. His performance,
delivery of excellent client outcomes and asset growth track record
over a long period of time mark him out as one of the truly
exceptional UK equity investors.
Having worked at Jupiter since 2006, Ben informed me of his
ambition to set up a new independent value equities boutique which
has been a long-term personal aspiration for him. I would like to
thank him sincerely for his contribution to the company and, after
he leaves Jupiter, wish him well for the future. Naturally,
delivering the best outcomes for clients and ensuring a seamless
succession remain our collective focus at this time. Alex's
recruitment means that we have an excellent succession plan in
place for the UK Special Situations strategy and our clients. The
recent announcement that Adrian Gosden and Chris Morrison have
joined Jupiter and will assume management of the GBP1.6bn Jupiter
Income Trust means that our clients in that strategy are already
set to benefit from the experience and expertise of a well-known
and highly-regarded investment team. Between Alex, Adrian and
Chris, I feel that the future of these Jupiter strategies could not
be in better hands.
Indeed, the fact that our recruitment has meant that clients
will benefit from a seamless transition was a consideration in the
timing of Ben informing us of his intention to leave and set up his
own boutique."
Alex Savvides said: "I am very excited to be joining Jupiter at
this important time in its evolution. Jupiter has an illustrious
history in developing and nurturing active investment talent and is
one of the most well-respected names in UK asset management.
Special situations and value investing underpin my investment
philosophy. Whilst my approach to investing is not dissimilar to
the strategy's current investment approach - a highly disciplined
and active style focused on undervalued UK companies - I believe we
can build on this strategy's legacy by blending in the proven stock
selection, stewardship and engagement approach that I have employed
successfully for clients over many years. The UK market offers
considerable opportunities for patient, motivated and disciplined
investors to produce good investment returns. I am committed to
delivering to the best of my abilities for Jupiter's clients."
Trading Update
At the start of the year we stated that our internal forecasts
were for 'modest net outflows' for 2023. While we reaffirmed this
expectation with the trading update in October 2023, a delay in the
funding of some institutional mandates combined with weaker than
anticipated retail sentiment in October and November 2023 has led
to an incrementally more negative flow outcome than we had
anticipated. Total net outflows for 2023 are expected to be
GBP2.2bn. All numbers below are non-audited and subject to
revision.
GBPbn AUM at FY 2023 FY 2023 AUM at
31 December 2022 net flows market and other movements 31 December 2023
====================================== ================= ========== =========================== =================
Retail, wholesale & investment trusts 43.4 (4.0) 2.8 42.2
Institutional 6.8 1.8 1.4 10.0
====================================== ================= ========== =========================== =================
Total 50.2 (2.2) 4.2 52.2
====================================== ================= ========== =========================== =================
On an indicative basis, aggregate investment performance has
trended more positively in the fourth quarter. Jupiter expects to
report performance fees earned of more than GBP10 million for the
year ended 31 December 2023, which is higher than previous
guidance. This principally reflects strong performance throughout
the year in respect of one performance fee generating fund
mandate.
Within the current market context of lower asset valuations,
muted demand for risk assets from retail clients and a higher cost
of capital, we are required by accounting rules to consider these
impacts on the valuation of intangible assets as at 31 December
2023. We consider it to be likely that this valuation will result
in some impairment of the goodwill on our balance sheet. Goodwill
impairment affects a non-cash item and will not impact on
regulatory capital or the Group's ability to distribute capital to
shareholders in accordance with our capital allocation
framework.
Goodwill was recognised on the acquisition of Knightsbridge
Asset Management Limited in 2007 (GBP341.2m) and Merian Global
Investors Limited in 2020 (GBP229.4m) which, as required by IFRS,
form part of Jupiter's single cash generating unit. Significant
value has already been realised by the Group from those
acquisitions. However, current economic conditions and the
associated increase in cost of capital have, combined with lower
market valuations, resulted in the lower valuation of the business
as a whole in the short term.
Full details will be published with our full year 2023 results
on 22 February 2024.
For further information please contact:
Media
Edelman Smithfield
Andrew Wilde
Andrew.wilde@edelmansmithfield.com / +44 (0)7786 022 022
Latika Shah
Latika.shah@edelmansmithfield.com / +44 (0)7950 671 948
Investors
Alex.james@jupiteram.com / +44 (0)20 3817 1636
[1] Source: Trustnet
[2] Source: Trustnet
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