Jupiter Fund Management suffered a £3.4bn net outflow in six months following the announced exits of the Chrysalis Investment Trust and members of the firm’s value team, led by fund manager Ben Whitmore.
Whitmore will exit the firm in October alongside fellow value manager Dermot Murphy and investment director Claudia Ripley to set up Brickwood Asset Management.
Meanwhile, the Chrysalis board announced in November 2023 that it would part with Jupiter following concerns around “the provision of sufficient dedicated resources for the management team”.
Excluding those changes, however, underlying net outflows for the six months to 30 June stood at £0.2m, with positive flows recorded by the firm’s retail, wholesale and investment trust divisions.
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The firm said it had seen particular demand for Indian equities, Asian Income and both equity and fixed income absolute return strategies. Gross flows from retail clients were up £2bn from the previous half, hitting £7.5bn.
Underlying profit before tax increased 3% to £47.9m, up from £46.4m in the first half of 2023, while statutory profit before tax grew 11% to £38.7m.
Matthew Beesley (pictured), chief executive officer, said the firm had delivered a “solid” set of results despite the outflows.
“Our underlying profit before tax increased by 3%, supported by a continuous focus on cost management which saw total operating costs continue to fall,” he said.
“I believe we have a business and a structure which positions us well for success given our work to date to right-size our business, invest in strategic growth drivers, and bring in highly regarded investment talent.”
Beesley added: “As we look forward, like other market participants, we are beginning to see early signs of client sentiment shifting more favourably in the UK where we have deep client relationships and leading investment capabilities.
“Markets have responded positively to the increased political stability in the UK that comes with the incoming government and if this improvement in sentiment is sustained, Jupiter is likely to be a strong beneficiary.”
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