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Key Points:
- Total Net Outflows: Jupiter reported £1.6 billion in net outflows for Q3 2024, totaling £5.0 billion year-to-date.
- Positive Underlying Flows: Despite net outflows, the firm achieved slightly positive underlying inflows, particularly in Asian and emerging market equities, with Indian equities seeing £0.4 billion in inflows.
- Strategic Acquisition: Jupiter announced an agreement to acquire a team and approximately £0.8 billion in AUM from Origin Asset Management, aimed at enhancing its institutional client base and capabilities in Global Emerging Markets.
Jupiter Fund Management plc (LSE:JUP) has released its trading update for the three months ending September 30, 2024. The update highlights the ongoing challenges in the market, marked by net outflows, but also emphasizes some positive underlying trends in certain investment strategies.
Key Highlights
Despite the ongoing challenges in client sentiment, Jupiter’s overall flows have remained consistent with expectations set at the beginning of the year. The company reported total net outflows of £1.6 billion during the third quarter, bringing total net outflows to £5.0 billion year-to-date. However, it is notable that Jupiter achieved slightly positive underlying flows in the quarter, excluding specific impacts from the Value team and changes in management of the Chrysalis Investment Trust.
Trading Performance
In the third quarter, Jupiter experienced £1.6 billion of net outflows from strategies managed by its Value desk, which included £1.1 billion in net outflows from segregated mandates. Currently, the Value desk manages £4.9 billion in assets under management (AUM), with £2.3 billion in segregated mandates. The firm anticipates that most, if not all, of these segregated mandates will be redeemed by the end of the year.
Notably, the slight positive net inflows in the third quarter were driven by strong performance in sectors experiencing robust client demand, particularly in Asian and emerging market equities. The firm's Indian equities products attracted £0.4 billion in net inflows during the quarter, raising their total AUM to £2.9 billion. Additionally, the Asian Income strategies garnered over £0.2 billion in net inflows, increasing total AUM in the Asian and emerging markets equities capability from £6.2 billion to £6.9 billion.
Further demonstrating its commitment to strategic growth, Jupiter recently announced an agreement to acquire a team and approximately £0.8 billion of AUM from Origin Asset Management, pending the usual approvals. This acquisition will bolster Jupiter’s position in the Global Emerging Markets and enhance its appeal with capabilities in International ex-US and Global Smaller Companies, focusing on institutional clients.
The company’s Systematic equities capability also maintained consistent positive net flows, largely driven by sustained demand for its Global Equity Absolute Return fund. Furthermore, Jupiter experienced £0.3 billion in underlying positive net inflows from institutional clients, notably from a UK-based client increasing their allocation to the global sustainable equity strategy.
Despite these positive developments, Jupiter faced challenges from the anticipated closure of two funds within its Emerging Market Debt capability, which led to just under £0.3 billion in net outflows.
