Davies is currently manager of the £1.6bn Jupiter UK Growth fund and will take the reins of the trust following approval at an 18 April shareholder meeting.
The new manager will be tasked with implementing a changed strategy tilted towards the UK rather than being global. The fund will invest in “a high conviction UK portfolio of 30-35 stocks, unconstrained by index weightings.” It will have an all cap mandate although the emphasis will be on large cap FTSE 100 stocks.
Reflecting this, the trust’s name is being changed to Jupiter UK Growth IT and its benchmarked switched to the FTSE All Share Index.
The base fee will be reduced from 0.8% per annum of total assets to 0.5% per annum of adjusted net assets, reducing to 0.45% for assets over £150m and 0.4% over £250m.
The annual performance fee will also be revised, and will be based on 15% of NAV total returns in excess of the FTSE All Share Index plus a hurdle of 2%.
The dividend policy will also change. The trust currently pays an annual yield of 2.3% via quarterly dividends. Under the new mandate with its emphasis on capital growth and there will be a single annual dividend paid starting 1 July 2016.
Tom Bartlam, chairman of the Jupiter Global Trust PLC said: “The company’s current mixed mandate has served us well in recent years as both a source of benchmark-beating returns and a differentiating factor within the investment company classifications. It has become increasingly clear to us, however, that the market for investment companies is evolving rapidly and we believe these proposed changes will enable us to reach a new market of shareholders while maintaining the potential for capital growth”.
