Jupiter Fund Management Experiences Worse-Than-Expected Net Outflows

London, UK - Jupiter Fund Management shares took a hit after the group announced that its net outflows for 2023 were more severe than initially anticipated. As of 0809 GMT, shares had dropped by 11.0 pence, or 12%, to 77.5 pence.

In a statement released on Tuesday, the London-listed money manager revealed that net outflows for the year ended December 31 are projected to reach £2.2 billion ($2.80 billion). Although the company had previously warned of modest net outflows, it experienced a larger-than-expected blow due to a delay in institutional mandates funding and weakened retail sentiment in October and November.

Despite these challenges, the company's assets under management at the year-end stood at £52.2 billion, compared to £50.2 billion at the end of 2022. This increase was attributed to a £4.2 billion gain from market and other movements during the 12-month period.

Jupiter Fund Management also reported that it expects to earn over £10 million in performance fees for 2023, surpassing previous guidance. The significant performance fee was propelled by one specific fund mandate. Additionally, the group highlighted that aggregate investment performance was more positive in the fourth quarter.

However, in line with accounting rules, the company stated that the revaluation of its intangible assets at the end of the year may result in some impairment of goodwill on its balance sheet. It explained that "current economic conditions and the associated increase in the cost of capital, combined with lower market valuations, have led to a lower valuation of the business as a whole in the short term."