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Jupiter appoints Chinese company to run fund

Jupiter appoints Chinese company to run fund

Jupiter has outsourced the management of one of its funds to the asset management arm of China's largest insurance company.

The Jupiter China fund will be managed by Ping An of China Asset Management, which will take over from Ross Teverson who had been managing the £78m fund on an interim basis.

Teverson, Jupiter's head of strategy for global emerging markets, had been managing the fund since last summer when Charlie Sunnucks left the company.

Ping An already manages the Jupiter China Equity fund - which was brought over to Jupiter as part of the acquisition of Merian Global Investors.

Andrew Formica, Jupiter's chief executive, said: "We are delighted to cement our relationship with Ping An through this agreement. Having completed a thorough due diligence process, we see this appointment as a natural next step for the strategy following our acquisition of Merian Global Investors last year.

"We believe that, as a specialist Chinese asset manager with extensive local research teams, Ping An is ideally positioned to deliver on this fund’s investment objective for our UK-based clients. Merian’s existing strategic relationship with Ping An was one of the many benefits afforded by the integration of the two companies, and we look forward to working with them in this new capacity."

Over the past three years and five years the Jupiter China fund has been the absolute worst performer in its sector - the IA China/Greater China sector.

It has gained 19.2 per cent over the past five years while its sector has gained 82.3 per cent.

More recently its relative performance has improved - placing it in its sector's second quartile. Though this has been during a period in which Chinese funds have generally performed poorly amid a stock market slump and regulatory crackdown, with the IA China/Greater China sector the worst performing sector over the past six months and three months.

Over the past six months the Jupiter China fund has lost 15.4 per cent while its sector has lost 18.6 per cent.

Chi Kit Chai, head of capital markets and chief investment officer at Ping An, said: “Capitalising on the geographic advantage of Hong Kong, [Ping An] connects China with the rest of the world.

"We are very delighted in working with the Jupiter team to provide investors in Europe with opportunities to invest in China. The strengthening of our partnership with Jupiter is based on a lot of hard work, dedicated professionalism and trust.  We definitely look forward to growing this partnership together with them."

damian.fantato@ft.com