Jupiter CEO Matthew Beesley
Jupiter has been hit by £2.2bn in outflows during the 2023 financial year, driven by "weaker than anticipated retail sentiment".
The firm suffered £4bn outflows from its retail, wholesale and investment trusts division throughout the year, while its institutional arm attracted £1.8bn inflows over the period, according to a trading update published this morning (9 January).
Jupiter said the "weaker than anticipated" retail sentiment in October and November 2023 led to an "incrementally more negative flow outcome than we had anticipated".
However, despite the high level of outflows, its assets under management grew last year from £50.2bn at the end of 2022 to £52.2bn as of 31 December 2023.
JO Hambro's Savvides to take on Jupiter UK special sits as Ben Whitmore departs to launch boutique
The increase was also aided by positive market movements throughout the year, which added £2.8bn from the retail division and £1.4bn from the institutional arm, with performance trending "more positively" in the last three months of the year.
Jupiter said it expects to report performance fees earned in 2023 of more than £10m, above its previously released guidance. Most of the strong performance experienced last year was attributed to "one performance fee-generating fund mandate", which was left unnamed.
Jupiter said: "Within the current market context of lower asset valuations, muted demand for risk assets from retail clients and a higher cost of capital, we are required by accounting rules to consider these impacts on the valuation of intangible assets as at 31 December 2023.
"We consider it to be likely that this valuation will result in some impairment of the goodwill on our balance sheet. Goodwill impairment affects a non-cash item and will not impact on regulatory capital or the group's ability to distribute capital to shareholders in accordance with our capital allocation framework."
The full year results for 2023 will be published on 22 February 2024, the firm said.
The trading update came alongside today's announcement that JO Hambro's Alex Savvides will join the company to succeed value fund manager Ben Whitmore, who will leave Jupiter in the summer to set up his own boutique.
Following the two announcements, Jupiter's share price is currently down more than 16%, according to data from the London Stock Exchange.
