Jupiter is to close its money-market fund as changes to banking regulation have shrunk the pool of assets in which it could invest.
‘The reason we are closing the fund is that the regulatory environment will be changing, with a series of measures designed to make the global financial system more robust,’ a spokesperson for the firm told Wealth Manager.
‘One of the measures will be to place additional capital requirements on banks. As a consequence, it is likely there will be less appetite for issuance or deposits of a short-term nature, which would reduce the pool of investments available to money-market funds, including the fund.’
The £73 million Jupiter Cash fund will therefore liquidate next month. It has outperformed its sector average over one, three and five years.
Its manager Caroline Horsford has also decided to retire following a career in the financial services industry spanning four decades, including 14 years at Jupiter.
Horsford joined the firm in 2000, having previously worked at J Henry Schroder & Co and Samuel Montagu & Co.