InvestmentsDec 9 2020

Jupiter loses US trust as Siddles retires

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Jupiter loses US trust as Siddles retires

The Jupiter US Smaller Companies trust is set for a change of investment manager as Robert Siddles retires from the helm of the trust after 19 years. 

In a market announcement this morning (December 9) the trust confirmed it had appointed Brown Advisory as its new investment manager. 

Brown Advisory invests primarily in the shares of small US companies and is expected to take control of the trust on or before April 1 next year. 

The trust was formally managed by Jupiter Asset Management and fund manager Mr Siddles since 2001. 

But at the beginning of October Jupiter confirmed he would be retiring for family reasons as of April 2021.  

The change is the latest shake-up for Jupiter, which earlier this month announced its £32m Jupiter UK Growth investment trust would be wound down and "rolled over" to Brown Advisory Funds. 

FundRock Partners, which has been appointed as the alternative investment fund manager and the company secretary, will work alongside the new investment manager. 

The trust said shareholders would benefit from a lower management fee structure as a result of the change.

Each year Brown Advisory and FundRock are set to be paid 0.7 per cent of the trust's net assets on the first £200m, reducing to 0.6 per cent on the next £300m and 0.5 per cent above £500m.

Brown Advisory's appointment is for an initial term of 12 months and can then be terminated with six months' notice.

Gordon Grender, chairman of the Jupiter US Smaller Companies, said: "The board undertook a very comprehensive manager selection process and we believe that the Brown U.S. Small Cap Growth Strategy, with an impressively long track record and annualised returns of 14.5 per cent over 10 years stood out in a highly competitive field.

"We believe that the appointment of Brown should lead to strong performance, a narrower discount and ultimately the ability to grow the company over time."

rachel.mortimer@ft.com 

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