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Jupiter, the asset manager, has recruited a team of fund managers overseeing £800 million in global equities from a smaller competitor in an effort to reduce its dependence on UK stocks, which have seen declining interest in recent years.
The FTSE 250 asset manager has onboarded the investment team from Origin, a London-based investment firm specializing in global equities, including those in emerging markets. As part of this agreement, approximately £800 million in assets will be transitioned to Jupiter.
This strategic move comes as Jupiter seeks to reduce costs and expand its asset offerings. Similar to its mid-sized UK competitors, Jupiter’s business model has been challenged by the growing trend of cheaper, passive investing and the desire of UK investors to diversify beyond the London market.
The £800 million in assets Jupiter is acquiring from Origin includes funds from institutional clients in Europe, Canada, and Australia.
The team joining Jupiter from Origin is led by Tarlock Randhawa and manages strategies focused on global emerging markets as well as global smaller companies and international stocks. Origin was acquired in 2011 by US firm Principal, which oversees more than $500 billion in assets.
Kiran Nandra, head of UK equities at Jupiter, noted that this acquisition enables Jupiter to begin offering funds that target global smaller companies while enhancing its exposure to emerging markets. Randhawa from Origin stated that “the transition for our current clients will be seamless.”
The recruitment of the Origin team coincides with the planned departure of Nick Payne, Jupiter’s lead investment manager for global emerging market equities.
Matthew Beesley, Jupiter’s CEO, shared with the Financial Times over the summer that he intends to pursue “bolt-on” acquisitions, while dismissing the prospect of larger mergers.
Jupiter currently manages around £50 billion in assets, with £42 billion held on behalf of individual investors.
This asset management firm, which counts Silchester among its significant shareholders, acquired Merian Global Investors in 2020 for £370 million during the tenure of its former CEO, Andrew Formica.
Additionally, one of Jupiter’s prominent fund managers, Ben Whitmore, is set to leave by the end of the month. Whitmore, who managed approximately £10 billion for Jupiter, is venturing out to establish his own firm.
In another move, Jupiter has secured Alex Savvides from JO Hambro Capital Management to oversee Jupiter’s UK Special Situations fund.