Jupiter posts £776m outflows as investors shun equities

Jupiter posts £776m outflows as investors shun equities

Jupiter Fund Management saw net outflows of £776m in the three months to March 31 as investors shunned UK and European equities.

The figure followed two consecutive quarters of outflows in the six months to December 31, which saw investors pull £2bn from Jupiter's funds, following a positive Q2.

In the latest three-month period Jupiter reported outflows of £848m from mutual funds, however the group saw positive flows into its bonds and commodities strategies. 

Investment trusts generated net inflows of £221m, which was led by a capital raise by the Chrysalis Investment Trust.

In segregated mandates, NZS Capital generated more than £250m of net inflows. However, this was offset by redemptions in other strategies, primarily UK equities, resulting in total net outflows of £149m.

The group’s assets under management nudged up £60m to £58.8bn in the three months to March 31. Last year the firm acquired Merian Global Investors, adding £17bn to its asset pile.

The move away from UK equities reflected a trend seen in the quarter, with a total of £1bn withdrawn from UK equity funds in February 2021, according to the Investment Association.

However, demand for equities elsewhere was strong, with £969m allocated to global equity funds in February, along with Asian funds receiving £638m.

At the time of the Investment Association’s announcement, Minesh Patel, chartered financial planner and director at EA Financial Solutions, said: “I’m not surprised that equity funds have been stronger because there is decent value perceived to be out there. There is still room for growth given QE and many companies are still profitable.

“With UK equity funds specifically, it has been a disappointing asset class since 2016 and in search of growth and income it is not surprising investors are looking elsewhere.

"I do not ignore the UK but [it] is forming a smaller part of our allocation, I have been looking to other regions for equity exposure.”