Jupiter FM upbeat on 'improved flow picture' in third quarter

Jupiter Fund Management said in an update on Thursday that net outflows slowed in its third quarter to £0.6bn.

The FTSE 250 company said net inflows from institutional clients totalled £0.5bn in the three months ended 30 September, driven by a large mandate from a sovereign wealth fund.

Net redemptions in the retail and wholesale channel, meanwhile, slowed to £1.1bn.

Assets under management ended the quarter at £47.4bn, driven by net outflows and £0.8bn of negative market movements.

The board said a “worsening” macroeconomic backdrop, continued geopolitical challenges and inflationary concerns - particularly in the UK - again weighed on investor sentiment in the period.

Despite that, it said it was “pleased” to report a “much improved” flow picture, with the net inflows from institutional clients put down to the funding of a UK equity mandate from a “sophisticated” sovereign wealth fund client.

Jupiter said that momentum had continued into the early parts of the fourth quarter, with the funding of another mandate from a “high-quality” institutional client.

Outflows in the retail and wholesale channel continued to slow quarter-on-quarter, meanwhile, although client demand for UK and European equities products remained subdued.

Although the firm also saw net outflows from unconstrained fixed-income strategies, it said those were “much reduced” from the first half.

The outflows were partially offset by positive net inflows into the Strategic Absolute Return Bond fund, as well as into NZS Capital's global equity strategies.

“I am encouraged by the improved flow picture in the third quarter, despite continued market volatility,” said chief executive officer Matthew Beesley.

“This flow momentum has continued into the fourth quarter with the funding of further Institutional mandates in excess of £500m in the first week of October alone.

“While we saw net outflows overall, retail outflows have slowed as we continue to focus on delivering a differentiated product set, which both meets our clients' increasingly complex needs and demonstrates the value of high-conviction, active investment management.”

Beesley said that since his appointment, he had sought to take “decisive actions” to ensure the company had “the optimal operating model” to succeed in a competitive environment.

“This includes reducing our cost base, streamlining the fund range and restructuring our management team.

“Although this work is ongoing, we have made a good start and this, combined with the success of our existing strategies and new growth opportunities ahead of us, gives me confidence that Jupiter is well placed for a return to sustainable growth.”

At 1046 BST, shares in Jupiter Fund Management were up 5.04% at 92.7p.

Reporting by Josh White at Sharecast.com.