Jupiter third-quarter AuM drop; new charging structure announced

Jupiter Fund Management tumbled on Tuesday as it announced a new charging structure and posted a decline in third-quarter assets under management, as macroeconomic uncertainty continued to dent demand for risk assets, particularly with retail clients.

In the three months to 30 September, AuM fell to £50.8bn from £51.4bn at the end of June.

Since the start of the year, the company saw net outflows of £1bn, all of which came through in the third quarter.

Jupiter said flows from institutional clients were marginally positive in the third quarter, bringing the total year to date net flows to £1.7bn. The retail, wholesale and investment trust channel saw net outflows of £1bn over the three months.

Assets from institutional clients grew to £9.8bn and net flows were positive for the fifth consecutive quarter, albeit marginally.

"We have previously stated that the profile of fundings from Institutional clients would not be linear and that we would not expect to see significant mandates funding through each discrete reporting period," it said. "However, our late-stage institutional pipeline remains strong and we are confident that we will see further mandates funding over subsequent reporting periods."

There were outflows from retail and wholesale clients of £1bn in Q3, which Jupiter said was broadly consistent with both the first half of 2023 and wider market trends.

"The areas of client demand remained relatively unchanged from the first half, with inflows into Asian Income and Japanese Equities not enough to offset outflows from unconstrained fixed income and UK and European equities," it said.

Despite the challenging macro backdrop and ongoing market uncertainty, Jupiter said it remains confident in its previously-stated expectations of "modest outflows" for the full year.

Jupiter also said on Tuesday that it will be implementing a new tiered fee structure for clients investing in its UK Unit Trust and OEIC ranges. The new model will be implemented from early next year, with basis point discounts taking effect as a fund reaches various levels of assets under management.

The first threshold will be when a fund reaches £500m of assets, at which point a 2 basis point discount will be applied.

Jupiter said that at its current AuM, this would result in an additional decline in the overall net revenue margin through 2024 of between 1.5 and 2 basis points.

At 0900 BST, the shares were down 12% at 76.92 p.