The Jupiter European Income fund is set to close on 8 November 2022 as a result of shrinking assets.
In a letter to investors seen by International investment's sister brand Investment Week, Jupiter said the fund "has continued to reduce in size year on year and believes it is unlikely to attract new investors in the future".
It added that it believes "the closure is in the best interests of investors as they no longer consider the fund to be commercially viable".
Portfolio manager of the fund Greg Herbert also co-manages the firm's Global Equity Income fund and Global Equities fund. A spokesperson for Jupiter said that Herbert would be leaving the firm.
"After 17 years with Jupiter, Greg leaves with our thanks and best wishes for the future," said the spokesperson.
The fund will stop accepting new investments from 21 October 2022.
The fund has seen poor performance in recent months, down 13.2% year-to-date, compared to a growth of 3.7% among its peers and 1.6% growth in the benchmark, according to Morningstar.
A spokesperson added: "Amid a rapidly changing investment landscape, it is important that we retain a clear focus on growing and developing our core strategies and design our range accordingly. While the restructure of our product offering is ongoing, we believe we now have the right fund management teams in place across the range to address our clients' needs."
Jupiter said that the transaction costs for implementing the closure will be borne by the funds and are estimated to be approximately 0.11% of the fund value.
The news comes following the closure of the Jupiter Emerging European Opportunities fund in July, following the Russian invasion of Ukraine.
