Jupiter Merlin joins outflows from funds hit by manager exits

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Merlin Jupiter have led outflows from the Artemis Income fund following the departure of fund manager Adrian Gosden last month, as well as Kames High Yield Bond funds, which also saw a fund manager exit last month.

The £6bn Artemis Income fund saw £369m of outflows in June, according to Morningstar data, with Jupiter Merlin, headed by John Chatfeild-Roberts, likely accounting for a significant proportion. The latest Jupiter Merlin Income fund shows it has sold its entire £238m holding.

The fund also sold its £135m position in the £1.1bn Kames High Yield Bond fund, which saw £207m of outflows – almost a fifth of the fund’s assets – in the same month co-manager Claire McGuckin’s departure was revealed.

Following the fund manager departures, Morningstar confirmed it had reduced the Kames fund from a silver rating to neutral, while the Artemis fund has moved from gold to bronze.

In a note accompanying its rating decision on the Artemis Income fund, Morningstar said that it had a high regard for senior co-manager Adrian Frost and the consistency of the approach”, but that the loss of Gosden presented challenges over the short term. Combined with a trend of disappointing performance lowered their conviction in the fund.

As of 30 June, the Jupiter Merlin Income fund had 45.2 per cent allocated to UK equity income, including Invesco Perpetual Strategic Income and Woodford Equity Income, and 32 per cent in fixed income, including the M&G Strategic Corporate Bond.

Gosden’s former co-manager Adrian Frost, who leads the Artemis Income team, now runs the fund and a number of institutional income mandates.

At Kames, David Ennett joins in September to takeover the High Yield Bond and High Yield Global Bond fund, which had been managed by McGuckin. He is expected to be joined by Philip Milburn later in the year, who has taken a leave of absence due to health reasons.

In a rating note issued in late June, Morningstar said the appointment of Ennett and Milburn was reassuring, it needed to asset time to assess how they would work as a pair.