Jupiter Fund Management suffered £10.3bn in outflows last year as investors removed money from funds formerly managed by Ben Whitmore and his value team, who exited the firm last year.
Whitmore left the firm in October to set up Brickwood Asset Management alongside fellow value manager Dermot Murphy and investment director Claudia Ripley.
Their exit coincided with the loss of the Chrysalis investment trust and its managers Nick Williamson and Richard Watts, which Jupiter also credited as a reason for the jump in outflows last year.
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Outflows for 2024 would have been three times lower at £3.3bn when excluding the outflows from Whitmore’s former strategies and the exit of Chrysalis, Jupiter said.
The £10.3bn outflow was a sizable increase from the £2.2bn loss it reported in 2023, prior to Whitmore and Chrysalis’ exit.
Chief executive Matthew Beesley said: “Although we saw net outflows, these were predominantly driven by redemptions from strategies formerly managed by the Value team, which are now complete.
“Short-term outflows inevitably follow management changes, but we are confident this sets us up well for long-term growth.”
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Nevertheless, Jupiter Fund Management ended the year with a pre-tax profit £97.5bn, a 7% decrease from the £105.2bn it made in 2023.
Beesley highlighted the strategic changes the company made over the past year to “explore new methods of delivery,” most recently entering the active ETF market for the first time.
“The actions we took during the last year, together with improving performance and encouraging early signs this year, give us confidence that we will see near-term growth in the majority of our investment capabilities,” Beesley added.
“Although not all of these achievements can be seen in our financial results today, they all position Jupiter better for future growth.”