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Jupiter CEO says institutional push paying off as outflows slow to £600m

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Jupiter Fund Management’s new chief executive said the company’s strategy of targeting institutional clients had started to pay off, with outflows from the FTSE 250-listed company slowing in the third quarter.

Matthew Beesley, who took over from Andrew Formica in early October, also singled out thematic funds as a potential growth area for the business, with plans to launch a range of products in this sector in early 2023.

Third quarter results announced by Jupiter on October 20 showed the company’s net outflows slowed to £600 million in the three months to the end of September, an improvement from £2 billion. pounds released in the second quarter.

Institutional clients were tasked with generating £500m of fresh money, including a large mandate from a sovereign wealth fund that gave Jupiter a mandate for UK equities.

“The improved net flows picture has been driven by our institutional businesses, and we continue to see strong momentum in this area,” Beesley said. Financial news.

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“What is encouraging here is that we are recognized as a respected player in the institutional market. The flow picture shows that the diversification strategy in this channel is the right one.

Exits on Jupiter’s retail and wholesale channel also slowed, with investors withdrawing £1.1bn in the three-month period, compared to £1.9bn in the previous quarter. .

However, Jupiter’s £47.4bn in assets under management is down more than 20% from the £60.7bn it oversaw at the end of the third quarter of last year. .

Since taking over as CEO, Beesley has taken steps to streamline Jupiter’s fund lineup and restructure the management team, including splitting the chief investment officer role.

Jupiter earlier this year also launched a formal consultation with staff, which could see up to 80 jobs cut. The cuts will come from a combination of removing existing vacancies and making some existing roles redundant.

In addition, around 25% of Jupiter’s funds will be merged or closed, representing around £1.6 billion of the group’s total assets.

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While Beesley had taken steps to streamline Jupiter’s lineup of funds, he identified thematics as an area the firm would focus on in the coming months.

“Customers increasingly want more global or thematic products. We believe we can use some of our existing resources to take advantage of this opportunity,” he said.

Thematics, which emphasize areas such as clean energy, technology and artificial intelligence, have proven to be a significant growth area for asset managers. According to Morningstar data, 589 new funds were launched globally in 2021, more than double the previous year’s record high of 271.

Assets under management for these funds reached just over $800 billion at the end of last year, a nearly three-fold increase in three years.

To contact the author of this story with comments or news, email David Ricketts