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Jupiter European confirms manager change

JEO : Jupiter European pays £13m performance fee

Jupiter European confirms manager change – Since the announcement on 1 July 2019 regarding Alexander Darwall’s intention to establish a new investment management company, Devon Equity Management Limited, the board of Jupiter European Opportunities has undertaken a consultation with major shareholders and also appointed a firm of specialist professional advisers to conduct a due diligence exercise on both Devon and also on a proposed new Alternative Investment Fund Manager (“AIFM”), FundRock Management Company. Subject to satisfactory completion of the due diligence exercise, regulatory approval and signing of contracts, the management contract will move over from a date in November 2019.

FundRock is a UCITS Management Company and AIFM, offering solutions for UK, Luxembourg and Ireland based funds. They manage over 500 funds with assets under management of more than GBP80 billion. The team who would be responsible for acting as AIFM to the company are based in London.

Small fee overlap to 31 May 2020

Under the terms of the existing management arrangements, Jupiter is entitled to a quarterly base management fee of 0.1875 per cent (equivalent to 0.75 per cent a year) of total assets (including drawn down borrowings) plus an annual performance fee equal to 15 per cent of the outperformance of the benchmark, the Europe ex UK Total Return Index (subject to a high water mark and an annual cap). Under the early termination arrangements agreed with Jupiter, the base management fee will continue to accrue and be payable to Jupiter after termination but only up until 31 May 2020. It has also been agreed that Jupiter will waive any entitlement to a performance fee from the termination date.

Under the proposed new management arrangements, Devon and FundRock will be paid aggregate management fees of 0.90 per cent a year of net assets (i.e. excluding drawn down borrowings) up to GBP1 billion and 0.80 per cent on any net assets over this amount. No performance fee will be payable. These new fee arrangements will commence with effect from 1 June 2020.

In the period from the date of their appointment up to and including 31 May 2020, in addition to the quarterly management fee continuing to be paid to Jupiter, the board has agreed to pay a fee of 0.03 per cent a year of net assets to Fundrock with effect from its appointment as AIFM and also a base management fee of 0.10 per cent of net assets to Devon with effect from the date of its appointment up until 31 May 2020. Neither Devon nor Fundrock will be entitled to receive a performance fee during this period. From 1 June 2020, the fee due to Jupiter will cease and the management fee due to Devon will be as set out above (with FundRock’s fee being deducted from amounts due to Devon).

There will be no change in the  depositary, custodian, administrator, fund accounting or registrar arrangements.

The investment objective and policy stay the same and Alexander Darwall should manage the trust throughout the handover period and beyond.

JEO : Jupiter European confirms manager change

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