Jupiter AM has issued a note to its clients regarding its emerging market debt funds following the departure of the management team, assuring that their strategies will continue to be supported by their global team, according to an official document from the asset manager accessed by Funds Society.
Regarding the impact of the emerging markets team’s departure on the rest of the fixed income segment, Jupiter states: “No impact should be expected on the investment processes or performance of the other teams. The impact is limited to the team’s input in relation to secondary discussions and opinions on some specific credits, which are also present in other strategies. Jupiter has a global credit analyst team that covers both developed and emerging markets. All our funds are backed by the global team, as they have been and will continue to be. We are very proud of our credit team’s success over the years.”
The asset manager emphasizes that the Dynamic Bond and Global High Yield funds “have never relied on the EMD team. The Dynamic Bond holds a relatively small amount of emerging market credits, which are long-term investments very well known by the existing team. Both the Dynamic Bond and Global High Yield funds continue to be supported by the global credit team, and we will ensure that all funds receive adequate credit coverage in the future.”
Regarding the continuity and status of the team, Jupiter AM notes that Reza Karim and Alejandro di Bernardo have resigned to pursue other opportunities: “Despite building strong track records, our funds failed to generate sufficient traction among clients, mainly institutional ones. After careful consideration, we decided to close the entire spectrum of EMD funds,” the note states.
What will happen next with the two SICAVs of the EMD strategies? Will the funds be closed? Jupiter AM responds affirmatively: “The strategies will close in the old-fashioned way, following market standards. Once regulatory approval is obtained, clients will be notified with at least 30 days’ notice.”
The asset manager adds that, for now, it will maintain its investment and risk/return philosophy, and the current team will continue to manage the funds until their closure.
Jupiter states that “it has created a work environment that allows investment professionals to operate with independence and invest with a high degree of autonomy. We constantly assess our retention rates and incentive structures and believe they are highly competitive. We have demonstrated that this culture and structure has attracted and retained highly qualified professionals – evidenced, for example, by the recent hiring of Alex Savvides and Adrian Gosden along with their respective teams.”
For Funds Society
For Sofia Cisneros