JupiterFeb 24 2023

Jupiter posts £3.5bn outflows in ‘clearly difficult’ year

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Jupiter posts £3.5bn outflows in ‘clearly difficult’ year
Jupiter saw another year of outflows in 2022, though its fortunes turned in the second half of the year (Pexels/Pixabay)

Jupiter Fund Management saw its fifth consecutive year of outflows in 2022 after poor investor sentiment and challenging market conditions.

The fund manager said today (February 24) it saw net outflows of £3.5bn in 2022, a slight improvement from the £3.8bn a year before.

The group’s flows turned positive in the second half of the year, driven by strength in its institutional client channel which saw £2bn in net inflows. 

Assets under management dropped 17 per cent to £50.2bn and pre-tax profit dropped 68 per cent to £58mn.

It is too early to say definitively that flows have turned the cornerPeel Hunt

Matthew Beesley, chief executive of Jupiter, said the past year has “clearly” been difficult.

“Although gross inflows remained strong, we again saw net outflows…although this is not where we want to be, we are encouraged by a strong turnaround in the second half.”

Jupiter's share price rose nearly 12 per cent this morning. 

Analysts at Peel Hunt said Beesley is taking some "sensible steps" in addressing the cost base and rationalising funds.

"Clearly flows have improved, albeit it is too early to say definitively that they have turned the corner given the natural lumpiness of institutional mandates."

The group is trading at a price to earnings ratio of 6.4 times.

The company also announced the departure of Chris Parkin, a non-executive director.

Parkin sat on the board as a representative of TA Associates, a major shareholder in Jupiter following the acquisition of Merian from TA in 2020. 

Parkin will not be replaced. 

Jupiter is currently undergoing a restructuring where a third of its funds will be closed, merged or reconfigured, as well as changes to the chief investment officer role.

Around 15 per cent of the company’s workforce will be made redundant as part of the changes.

Earlier this month it turned away from private assets in its open-ended funds, selling its entire exposure to Starling Bank.

Beesley was promoted to CEO in September last year after the departure of Andrew Formica, who had been the target of criticism by a former board member who said the fund house had “lost its way” and its share price drop was “self inflicted”.

Market commentators have said the outflows make it vulnerable to a takeover, despite Formica saying earlier this year that Jupiter does not see itself being part of the current wave of consolidation in the sector.

sally.hickey@ft.com