Manager Research

During 2020, Jupiter Fund Management acquired Merian Global Investors and in February undertook a rebranding following the acquisition.

Merian Global Investors

Merian Global Investors was formed in June 2018 when global private equity firm TA Associates bought the single-strategy investment capabilities of Old Mutual Global Investors (OMGI). OMGI was part of Old Mutual Plc before it was broken up into JSE-listed Old Mutual Ltd, LSE- and JSE-listed Quilter, Nedbank and the US asset management business. In February 2020 Jupiter Fund Management announced the buyout of 100% of the share capital of Merian, which was to be financed with new shares in Jupiter to existing Merian shareholders. During February 2021, the transaction was finalized and Merian has been fully integrated into Jupiter with the old Merian branding falling away.

Jupiter Fund Management

Jupiter Fund Management was founded in 1985 as a specialist boutique asset manager focusing on UK equites, managing money on behalf of investment trusts and private clients. Subsequently, the business successfully expanded into the institutional fund management space and then into the retail market which eventually drove the company’s growth. Today the manager’s product range has expanded and it offers a variety of different portfolios. With the Merian acquisition, Jupiter has become one of the largest asset managers in the UK retail market.

Merian World Equity Fund and Old Mutual Global Equity Fund

This is a global equity fund that is run by Merian (now Jupiter but still the Merian team) with the Old Mutual Global Equity Fund being the ZAR version of this fund. The team uses a quantitative approach that is designed to be all weather – to provide alpha returns consistently through most market and style cycles. We awarded both funds a Tier 2 rating before the acquisition, which is positive. For the full rating report on the Old Mutual Global Equity Fund, click here.

Changes following the acquisition:

• All Merian funds were renamed as Jupiter and the Merian umbrella structures and investment management entities were also renamed as Jupiter
• The Jupiter logo and website have been relaunched and the Merian website has been retired. Users of the Merian website will be redirected to the new Jupiter website.
• The Merian World Equity Fund (USD denominated) has changed its name to the Jupiter Merian World Equity Fund and the Old Mutual Global Equity Fund (ZAR denominated offshore fund) which is managed by Merian has retained its name.

We had some minor concerns on the acquisition which mainly centered around the effect that it would have on team dynamics, where the Merian team became employees of Jupiter after being owner-managers in Merian and the impact of significant outflows from the business. However, we were able to gain a level of comfort on these factors and we have kept the Tier 2 ratings on the funds. At this stage, we do not feel the acquisition will have a material impact on how the fund is managed.

We will continue to monitor Jupiter and note any more changes as and when they occur. We have not made any changes to the ratings on the funds: