Jupiter Asset Management is set to close its £50 million Strategic Reserve Fund as part of a wider review of its multi-asset strategy, New Model Adviser® has learned.
Jupiter said the fund will be wound up on 23 May with investments in the fund, then liquidated. Investors have been offered the chance to exchange units to another Jupiter fund, redeem their units in the fund or switch to a new fund run by a different manager.
The Jupiter Strategic Reserve fund has been managed by Lee Manzi since 2017 and is currently ranked 10 out of 13 in the Global Macro sector over the past three years, according to Citywire ratings (see graph below).
Before Manzi was made the sole manager for the fund, he co-managed it alongside veteran manager Miles Geldard, who was Citywire A-rated in 2017. Geldard is currently a senior adviser at Jupiter
A spokesman for Jupiter said the fund closure, which is for all share classes, was due to waning inflows and an expectation it would further decrease in size. Currently the fund has £48.8 million assets.
‘The decision to close the fund is the outcome of a broader review of Jupiter’s strategy and product offering in the multi-asset area. The sub-fund has been reducing in size over the last year and we believe the it is unlikely to attract new investors in the future.
‘Given we expect the fund to continue to reduce in size, we believe the liquidation of the fund is in the best interests of its shareholders.’
However, the spokesman stressed Jupiter’s commitment to the multi-asset sector.
‘We have been broadening our expertise in this area and developing new product ideas to meet the evolving needs of our clients,’ he said.
The fund closure comes weeks after Jupiter announced star manager Alexander Darwall would be stepping down from running the £5.3 billion Jupiter European fund, with Columbia Threadneedle's Mark Nichols taking over.
It also comes following a period of heavy outflows from many absolute return funds, with the sector seeing £756 million withdrawn last November alone, according to data from the Investment Association.