Jupiter's European fund manager to set up own business

In a statement late on Monday, Jupiter said that Darwall, who manages its European Opportunities Trust, has taken steps to launch a new investment management company, Devon, in London. It is currently seeking authorisation from the Financial Conduct Authority.

"The board has decided to investigate the possibility of appointing Devon to advise on its investment portfolio and has instructed its professional advisers to assist in a due diligence exercise and to consult with its shareholders," Jupiter said.

"The board is in negotiations with Jupiter regarding the ongoing management arrangements and investment management contract."

The company said Darwall has agreed not to launch a competing open-ended fund for the next two years.

Ryan Hughes, head of active portfolios at AJ Bell, said the news "is a surprise given it was only in April that he was stepping back from his open ended funds to concentrate on his investment trust".

"This was not interpreted at the time as a step to an immediate departure but it seems plans were already afoot for this next step for Darwall to set up his own investment management company.

"With the board of the Jupiter European Opportunities IT immediately announcing their intention to re-appoint Darwall once his new firm is up and running, investors should have confidence in the continuity of the investment approach that has delivered outstanding returns during his 20-year tenure, delivering over three times the index return.

"With Jupiter announcing that Darwall has agreed to not launch a competing open-ended fund for two years, it seems that investors only opportunity to continue to access Darwall’s quality growth investment approach will be through the investment trust which may well create strong demand for it in the coming months."

At 1115 BST, the shares were down 7.2% at 400.80p.