Citywire A-rated manager Cedric de Fonclare (pictured) has stepped back from management of the Jupiter European Absolute Return fund as part of wider merger plans.

The move comes after Jupiter received shareholder approval to merge the offshore Jupiter Europa hedge fund with the Luxembourg-domiciled absolute return fund. The new offering will bear the Jupiter Europa name but operate within the Ucits framework.

The investment policy and charging structure of the original hedge fund will be used for the newly formed fund. And, once the transfer of assets to the new vehicle is completed the hedge fund will be formally closed.

De Fonclare has been at the helm of the fund since it's launch in January 2010 alongside co-manager Stuart Pearson, who will now take over lead management of the merged fund. He will be assisted by Michael Buhl-Nielsen.

Despite stepping back from the absolute return fund, De Fonclare retains management of four funds across the European and European excluding UK equities market. He is also one of 10 managers mandated to work on the Skandia European Best Ideas fund.

Discussing the fund strategy, Pearson said it will remain focused on bottom up stock picking able targeting the full spectrum of European markets.

He said: ‘I am delighted we are able to make this investment strategy available to investors in a more liquid, transparent and regulated form with minimal impact on our strategy.’

The fund merger comes shortly after Philip Gibbs handed over control of the fund’s financials portfolios in order to focus more closely on the firm's absolute return offerings.

Over the past year, the Jupiter European Absolute Return fund has lost 4.52% compared to its benchmark, the LIBOR EUR 3 Months, which rose by 0.6% over the same period.