Jupiter revamps charging structure as it suffers £1bn net outflows

investmentweek.co.uk:

Matthew Beesley (pictured), CEO Jupiter

Inflows into Asian income and Japanese equities were «not enough» to offset outflows from unconstrained fixed income and UK and European equities, Jupiter said in a stock exchange update.

The outflows in the three months to September were «broadly consistent» with both the first half of 2023 and wider market trends, it added, with «ongoing macroeconomic uncertainty» weighing on retail demand.

Jupiter AM's CEO and investment chiefs on share price woes, active management and the rebirth of absolute return

Jupiter finished the period with retail, wholesale and investment trust assets totalling £41bn, while total assets under management sat at £50.8bn.

This was an overall decline from the summer's H2 results, when the firm's AUM sat at £51.4bn.

In the trading update Jupiter also provided detail of its pricing structure review, which included basis point discounts taking effect as a fund reaches various levels of assets under management.

The changes are set to be implemented from «early 2024» and the first threshold, for clients investing in the firm's UK unit trust and OEIC ranges, will be met when a fund reaches £500m of assets, at which point a two basis point discount will be applied. 

At Jupiter's current AUM this would result in an additional decline in the overall net revenue margin through 2024 of between 1.5bps and 2bps, the fund management firm calculated.

Jupiter also confirmed its long-touted range of thematic funds would be «launched shortly», following a year long fund rationalisation process that has seen it shutter and merge less popular products as a way to streamline its product offering. It did not comment on whether the funds would also be available in an active