March 8 (Reuters) -

UK's Jupiter Asset Management is considering

offloading 1 billion pounds ($1.28 billion) of its funds as one

of its star managers prepares to leave the firm later this year,

the Financial Times reported on Friday.

David Lewis, a manager of Jupiter's Merlin portfolio said

during an investor roadshow this week that the firm was

considering pulling the money from Ben Whitmore's mandates when

he leaves Jupiter in July, FT reported, citing people familiar

with the situation.

Jupiter did not immediately respond to a Reuters request for

comment.

The Merlin range has nearly a fifth of its equity assets -

or 1 billion pounds - in two funds managed by Whitmore, FT said,

adding that Merlin team receives a discount on fees for

investing in-house.

Merlin's team is discussing all potential options for the

portfolio, which will include staying with Jupiter's funds or

following Whitmore to his new company.

In January, the fund said that veteran portfolio manager

Whitmore, who joined in 2006 and manages around 10 billion

pounds in assets, would leave the group to launch an independent

boutique.

Jupiter had then said that Whitmore and the firm have

agreed that his new boutique, once established, would not

compete with Jupiter for a period of two years from his leaving

date.

($1 = 0.7809 pounds)