Jupiter has nabbed Mark Nichols from Columbia Threadneedle as Alexander Darwall prepares to step back on the £5.3bn Jupiter European fund and the £2.4bn Jupiter European Growth Sicav.
Nichols has been the co-manager of the £4bn European Select strategy at Columbia Threadneedle since July 2016.
At Jupiter he will join the £9.5bn European equities team. Darwall (pictured) is stepping back on both the European and European Growth funds to focus on the £853.3m European Opportunities Trust and his segregated institutional mandates.
Prior to Columbia Threadneedle, Nichols was lead manager of the European Growth & Income franchise at F&C, now rebranded as BMO, before joining the US asset management giant in 2015. He started his career in the European equities team at Invesco Perpetual.
Jupiter highlighted Nichols’ experience running large-scale funds in a press release announcing his appointment. It said he will join the firm later this year.
‘Investors have been very loyal to Darwall’
The transition is significant for Jupiter given Darwall has been on the onshore fund since 2001, said Fundcalibre managing director Darius McDermott, adding: “investors have been very loyal to him and his distinct style of management.”
However, McDermott said Nichols “is probably among the best Jupiter could have found”.
Although Threadneedle European Select, which Nichols co-managed with David Dudding, is an Elite rated fund, Fundcalibre has dropped the Elite rating from the Jupiter European fund. “We like Mark, but will want to see how he settles in post the move and if the fund retains its concentrated mandate going forward,” he said.
Nichols has a similar investment style focused on quality growth companies, but Jupiter European is a lot more concentrated and larger than Threadneedle European Select, he said. The the top-10 holdings on the former account for 61% of assets while the top-10 of the latter account for 45%.
Jupiter European the largest fund in the sector
Jupiter CIO Stephen Pearson said: “We are delighted to attract a manager of Mark’s pedigree and experience to this important role in our European Growth team. For some time we have been developing a succession plan for Alexander Darwall who has managed funds for more than 18 years at Jupiter.
“Since taking on the Jupiter European Fund in 2001, Alexander has produced outstanding returns for clients and built the unit trust to be the largest fund in its sector. He has also played a leading role in the development of Jupiter’s international business through the launch of the Jupiter European Growth Sicav in 2007.
“When Alexander approached us with his desire to focus on Jupiter European Opportunities Trust and the segregated institutional mandates, our priority was to ensure continuity of process and a smooth transition for clients in this important franchise.
“In Mark we have identified a bottom-up stock-picking investor with experience across the market capitalisation range in Europe and a conviction-based approach to portfolio construction. We are confident that he will fit the culture of active management at Jupiter and sustain the strong record of returns delivered over a long period by our European Growth team.”
Darwall said: “I have worked closely with Stephen and the Jupiter team to ensure a seamless transition for investors in our open-ended funds as I look to focus the whole of my continuing fund management effort on the investment trust and our segregated institutional mandates. I am fully committed to delivering the best possible investment outcomes for these continuing clients in the years to come. I look forward to welcoming Mark to Jupiter and feel confident he will be a strong addition to the investment team.”
