A pair of Gam managers are set to move to Jupiter with their equity fund in the new year.
In an announcement today, (November 20), Adrian Gosden and Chris Morrison said they will take the £400mn Gam UK Equity Income Fund with them in the move.
Jupiter will manage the fund under a subadvisory agreement until it is transferred to Jupiter’s platform sometime in 2024, subject to approval.
The duo are due to join Jupiter in January 2024 and are expected to take on management of the £1.5bn Jupiter Income Trust, currently managed by Ben Whitmore, at some point next year.
Gosden will report to Kiran Nandra, head of equities while Morrison will report to him.
Gosden co-managed the £10bn UK equity income franchise at Artemis and previously held roles at Societe Generale Asset Management and Fleming Investment Management.
Morrison joined Gam in 2011 and previously worked at Bank of Tokyo Mitsubishi UFJ Asset Management where he managed European equity portfolios.
Gosden said: “[Jupiter’s] ethos of high conviction, truly active management is closely aligned with the way that Chris and I have invested over our careers and which we continue to believe can deliver the best outcomes for clients. UK equities have not been in favour with investors in recent years but the United Kingdom is home to many companies which are leaders in their field, with strong balance sheets and resilient business models.
“Valuations are low and, with the combination of strong dividends and enhanced share buybacks, I believe we will see increased appetite for the asset class from both domestic and international investors.”
Over three years, the GAM UK Equity Income Fund recorded top quartile performance, returning 27.7 per cent versus the FTSE Allshare benchmark of 24.3 per cent.
Nandra added: “Since I joined Jupiter in the early part of this year, we have been looking closely at our equity range of funds, including UK equities, and it is our intention to continue to develop and grow this part of our business, ensuring our clients have access to the best investment talent and a compelling mix of high quality, differentiated active investment strategies.”
The move has been called “inevitable” by Fundcalibre’s Darius McDermott in the wake of the failed Liontrust bid for Gam.
He said: “Since the failed Liontrust bid, it was inevitable some big names would leave Gam. Thus, it is not entirely surprising to see Adrian Gosden and Chris Morrison leave the firm and bring the Elite Rated GAM UK Equity Income fund to Jupiter's growing stable of funds.
“The duo will join the UK-based asset manager from January 2024, and as part of the agreement, Gosden and Morrison will retain responsibility for the Gam UK Equity Income fund, initially on a sub-advisory basis. Hence, this looks like potentially the best outcome for all parties, given the complex backdrop.”
