Jupiter Asset Management plans to extend its SICAV range with a new emerging Europe offering.
The Jupiter New Europe fund, aimed at professional investors, will have a different mandate to the existing Jupiter Emerging Europe Select fund.
While primarily investing in Central and Eastern Europe, Russia, Turkey and non-European former Soviet states, the fund can also invest up to a third of its assets in western European companies.
The fund will be jointly managed by Jupiter's emerging European equities team of Elena Shaftan, Ingrid Kukuljan and Colin Croft.
Domiciled in Luxembourg, the new Europe fund will have a minimum investment of £1,000, €1,000 or $1,000 as well as a 5% initial charge and 1.75% annual management fee.
It also carries a performance fee of 15% of outperformance of NAV per share over its benchmark, the MSCI EM Europe 10/40 Index.
Lead manager Elena Shaftan says Eastern Europe and Russia has experienced rapid economy growth in the past few years.
“Many companies from the region have profited from expanding domestic consumption and infrastructure spending, while EU convergence has brought particular benefits to eastern European businesses,” she says.
"A growing number of companies listed in Western Europe have significant eastern European operations that contribute to their revenue growth and lower costs.
“Having the ability to invest in these companies will broaden our universe and in some cases will allow us to find better value for a similar growth profile."
Jupiter Asset Management executive director international Kevin Scott says demand for high alpha funds in the region is growing internationally.
“Last year, we reached the £100m target capacity on the Jupiter Emerging Europe Select fund within just three weeks and we would expect interest in this fund to be very high, particularly now we have registered the Jupiter Global fund SICAV in seven of our target jurisdictions."
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