Jupiter Asset Management has shuttered two emerging market debt strategies after they “failed to gain sufficient traction” with institutional clients, according to a spokesperson for the firm.
The $511m (£382m) Emerging Market Corporate and $202m (£151m) Emerging Markets Short Duration funds will close, pending regulatory approval. Both strategies launched in 2017.
The move follows former head of EMD Alejandro Arevalo’s exit from Jupiter earlier this month. Reza Karim, who was appointed as head of EMD following Arevalo’s departure, will also exit alongside fellow fund manager Alejandro Di Bernardo once the strategies have closed.
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Matthew Morgan, head of fixed income at Jupiter, said: “Despite building solid track records, our Emerging Market Corporate and Emerging Markets Short Duration funds have failed to gain sufficient traction with our clients, notably in the institutional marketplace, which is a key focus for Jupiter. After careful consideration, we have decided to close both of these funds, subject to regulatory approvals.
“Jupiter’s focus is on building scaled businesses each with differentiated investment approaches and the closure of these two funds is consistent with this strategy,” he added.
“We believe in the structural growth opportunities and diversifying appeal of Emerging Market Debt (EMD) as an asset class. Our aim is to build an Emerging Markets franchise with a broader appeal to institutional as well as retail clients and we are committed to doing so.
“There is no impact on any of Jupiter’s other fixed income strategies, which continue to be supported by our broad and deep team of credit analysts, who provide sector-based coverage across developed and emerging markets.”
Both strategies are top quartile performers in the FO Fixed Interest – Emerging Markets sector over five years, according to FE fundInfo data.
