Jupiter Asset Management has decided to hold on to the £616m fund mandate run by star manager Ben Whitmore despite attempts by him to bring the fund with him as he leaves.
Whitmore, who has run the fund since 2018, is set to leave the firm on 1 November after announcing his resignation earlier this year.
Whitmore handled around a fifth of Jupiter’s assets and news of his exit sent shares down nearly 15 per cent in a single day in January.
His flagship fund, the £616m Jupiter Global Value Equity fund has grown 24 per cent over the last three years, compared to a sector average of 14.5 per cent.
Instead of Whitmore, the fund will be managed from tomorrow by Brian McCormick, who manages a Luxembourg-domiciled version of the fund and new hire Alex Savvides, who now manages Jupiter’s UK Dynamic Equity fund.
Jupiter had been “considering whether it would be in the best interests of clients” for the fund to be given over to Whitmore’s new boutique, with many viewing the manager as core to the success of the fund.
However, the firm said in a statement today that it has now decided to maintain control of the fund.
“Having now considered client feedback, noting the strength of the investment expertise within Jupiter, and having also undertaken a thorough assessment of the boutique, it has been concluded by the Jupiter board that it is in the best interests of clients for the fund to be managed by Brian and Alex,” the firm said.
In the group’s half-year results in July, Jupiter said investors had pulled £3.4bn from its funds in the six months to the end of June, up from £2.2bn at the end of last year.
Whitmore, meanwhile, is in the process of setting up his own business, Brickwood Asset Management, with two other former Jupiter employees, including manager Dermot Murphy.