Jupiter proposes merger of Mark Nash bond portfolios
Clients have until 10am on 21 August to vote on the merger, with the extraordinary resolution needing 75% of the votes to pass through.
The firm has proposed folding the Jupiter Flexible Macro fund into the Merian Global Strategic Bond fund, which would be renamed Jupiter Global Macro Bond.
In a letter to the Jupiter Flexible Macro clients, Jupiter laid out the planned chain of events, with the merger timetabled to happen on 29 September 2023, once it receives approval from shareholders and regulators.
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Clients have until 10am on 21 August 2023 to vote on the merger, with the extraordinary resolution requiring 75% of the votes to pass.
According to Jupiter, this latest merger sought to enable a «broader rationalisation of our product range to provide a more focused offering for clients, which enhances clarity and assists them in better understanding how we can serve them».
It said it aimed to provide funds with scale that could meet the «the patterns of demand» it is expecting.
In the correspondence, Jupiter explained that both the Flexible Macro and receiving Merian Global Strategic Bond fund were overseen by Nash, and therefore followed a similar investment approach, with «immaterial differences» in the risk and liquidity levels, although the Merian portfolio was significantly larger at almost £400m versus £31.3m in the former.
According to Jupiter, the Flexible Macro fund has seen a consistent fall in its net asset value year-on-year since 2020, with its NAV dropping 48.6% in 2021 and a further 39.9% in 2022.
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By contrast, the receiving Merian portfolio has experienced consistent NAV growth, increasing 39.8% in 2021
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