Jupiter sees £1bn of outflows in third quarter as ‘macro uncertainty’ persists

Firm will implement fee changes from early 2024

Matthew Beesley chief executive Jupiter Asset Management
Matthew Beesley


Jupiter Fund Management has reported a £1bn net outflow for the third quarter.

The asset manager pointed to ‘ongoing macroeconomic uncertainty’ weighing on retail demand as the driver. Despite the related fall in assets, the firm stated it is performing in line with expectations of ‘modest outflows’ over the full year.

Assets under management sat at £50.8bn as the quarter closed.

In contrast to the retail and wholesale channels, flows from institutional clients were marginally positive in the quarter, bringing the total year-to-date net flows to £1.7bn.

See also: Jupiter distribution head departs amid wider restructure

Jupiter said areas of client demand were ‘relatively unchanged’ from the first half of the year, with inflows into Asian income and Japanese equities outweighed by outflows from unconstrained fixed income and UK and European equities.

The firm is working toward four key strategic objectives outlined at the start of the year; increasing scale, decreasing undue complexity, broadening appeal to clients and deepening relationships with all stakeholders.

As part of this, it will implement fee changes from early 2024. Basis point discounts will apply as a fund reaches various levels of assets under management. The first threshold will be £500m of assets, at which point a 2 basis point discount will be applied.

Chief executive Matthew Beesley commented: “Despite the challenging market environment, we expect our financial performance for the current year to be in line with expectations.

See also: Rising bond yields: A one-off adjustment, or a warning light for investors?

“During my first year as CEO, we have continued to make progress against our previously stated strategic objectives and I believe the continued investment in our clients, our technology and our people will deliver long-term value.”

“The future of the asset management industry will not be through the traditional model of simply ‘distributing’ products, but in forming deeper relationships with our clients,” he continued. “We have rationalised our fund range and right-sized the business and are investing to ensure the company is aligned with clients’ requirements which are fundamentally changing.”

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