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UK asset manager Jupiter said investors pulled more money than feared from its funds last year and announced the exit of a high-profile fund manager, sending the group’s shares down by more than 10 per cent.
The London-based company said on Tuesday that £2.2bn was withdrawn from its funds last year, as sentiment among retail investors soured in the fourth quarter. The outcome was “incrementally more negative” than it had expected, Jupiter added.
Chief executive Matthew Beesley, who has led Jupiter since succeeding Andrew Formica in October 2022, has embarked on a cost-cutting programme and revamped its range of funds in a bid to revive the group’s performance.
The company also said that Ben Whitmore is leaving to set up his own firm. Whitmore, whose funds include the £2.1bn Jupiter UK Special Situations Fund and the £1.6bn Jupiter Income Trust, will stay with the company until at least the end of July.
The UK Special Situations Fund will be managed by Alex Savvides, who will join from J O Hambro Capital Management, Jupiter said.
“Alex’s recruitment means that we have an excellent succession plan in place for the UK Special Situations strategy and our clients,” Beesley said in a statement.
Adrian Gosden and Chris Morrison, who manage GAM’s UK Equity Income fund, will join Jupiter this month and will take over the management of the Jupiter Income Trust.
Shares in Jupiter dropped 12 per cent in early trading in London on Tuesday.
David McCann, analyst at Numis, said: “Whilst it is encouraging to see that Jupiter have taken some steps to mitigate Ben’s departure, we note the scale of assets under management involved and the likelihood of at least some attrition.
“Moreover, it once again opens the debate about whether Jupiter is an attractive place to work for top talent in the industry.”
Beesley sought to allay those fears, saying that the group is a “magnet for talent. We are still a great place for independently-minded investment talent to come and work”.
