Jupiter Asset Management, one of the UK’s largest fund managers, has experienced a fifth consecutive year of outflows in 2020. This marks a challenging period for the company, as it struggled to retain investors and assets despite a volatile year in the markets. This blog post examines Jupiter’s ongoing struggles, exploring the reasons why they have been unable to stem their losses and what measures they have taken to improve their performance. Additionally, we will look at what this means for investors and how they can best protect themselves during turbulent times in the stock market.
Background
Jupiter Asset Management, one of the UK’s largest investment firms, has suffered outflows for the fifth year in a row. The firm has been hit hard by the pandemic, with clients withdrawing billions of pounds from its flagship funds.
Jupiter has been struggling to stem the outflows, which accelerated in the first quarter of 2020 as the pandemic took hold. In a bid to stem the tide, Jupiter cut fees on some of its popular funds and launched a series of marketing campaigns.
Despite these efforts, Jupiter has continued to lose money. In the first half of 2020, the firm reported outflows of £5.4 billion. This was despite strong performance from its flagship fund, the Jupiter Strategic Bond Fund, which posted positive returns during the period.
Jupiter’s troubles are symptomatic of a wider problem in the asset management industry. Many investment firms have been struggling to keep clients invested as markets have become more volatile and uncertain. This has led to billions of pounds being withdrawn from funds across the industry.
Current Struggles
Jupiter’s Struggles Continue: Asset Manager Suffers Fifth Year Of Outflows
Current Struggles
Jupiter Asset Management is currently facing several challenges. The company has suffered five consecutive years of outflows, totaling $9.4 billion since 2014. Additionally, the company has been beset by a series of high-profile departures, with 13% of its investment team leaving in the past year alone. Jupiter is also in the midst of a cost-cutting exercise, which has seen it slash jobs and close offices in an effort to save money.
The asset manager has been hurt by a number of factors in recent years. Firstly, performance has been lacklustre, with many of Jupiter’s funds lagging behind their peers. This has led to investors withdrawing their money in search of better returns elsewhere. Secondly, the company has been hit by a string of high-profile departures, with some of its best-known investment managers leaving for rivals. Finally, Jupiter is in the midst of a cost-cutting exercise, which has seen it slash jobs and close offices in an effort to save money.
Jupiter’s troubles have continued into 2019. In January, the company announced that it would cut around 10% of its workforce as part of its cost-cutting exercise. The following month, it was revealed that star fund manager Neil Woodford had left Jupiter, taking his flagship fund with him. These latest setbacks are likely to further Dent investor confidence in the company and
Previous Outflows
Jupiter Asset Management, one of the UK’s largest asset managers, has suffered its fifth consecutive year of outflows.
Total outflows for the year were £9.1bn, compared to £3.2bn in 2016. The company attributed the majority of the outflows to redemptions from its flagship fund, the Jupiter European Growth Fund.
This marks a continued trend of investors withdrawing money from Jupiter funds. In total, £32bn has been withdrawn from Jupiter funds over the past five years.
The outflows come as a blow to Jupiter, which has been struggling to turn around its performance in recent years. The company has seen a number of high-profile departures, including the exits of CEO Maarten Slendebroek and CIO Edward Bonham Carter.
Jupiter is not alone in suffering outflows in recent years. Many asset managers have seen investors move their money into cheaper passive funds or alternatives such as private equity and real estate.
Despite the outflows, Jupiter still managed to grow its assets under management (AUM) to £42bn at the end of 2017. This was largely due to positive market performance, with most of Jupiter’s funds posting positive returns for the year.
Why This is Happening
Jupiter’s struggles continue as the asset manager suffers its fifth year of outflows. This is happening for a number of reasons, including the ongoing pandemic and the uncertain economic outlook. In addition, Jupiter has been facing headwinds in recent years from tougher competition and changes in the investing landscape.
These challenges have led to a number of outflows from Jupiter, totaling $41 billion over the past five years. While this is certainly a difficult situation for the firm, it is important to remember that Jupiter still has $206 billion in assets under management (AUM). Additionally, Jupiter has been taking steps to adapt to the changing environment and position itself for success in the future.
Looking ahead, it will be critical for Jupiter to continue to execute its strategy and weather the current challenges. If it can do so, there is potential for the firm to rebound and once again become a leader in the asset management industry.
What’s Next?
Jupiter’s asset manager has suffered outflows for the fifth year in a row. The company has been struggling to turn things around, but so far, its efforts have been unsuccessful.
What’s next for Jupiter? More of the same, unfortunately. The company is likely to continue to see outflows, as investors continue to lose faith in its ability to generate returns. Jupiter will need to find a way to turn things around quickly if it wants to avoid further losses.
Conclusion
Jupiter Asset Management has been struggling to keep up with the competition, suffering five consecutive years of asset outflows. While the company has managed to make a slight recovery in 2021, these numbers are still not what investors were hoping for. With continued competition from other asset managers and an ever-changing market landscape, Jupiter will need to find creative solutions if it wants to remain competitive going forward. We hope that this article has given you a better understanding of Jupiter’s struggles and how it can get back on track in order for its shareholders to achieve success.