Jupiter says demand for equities products is ‘subdued’ as it initiates share buyback

Jupiter Fund Management is launching a share buyback scheme on Monday (Oct 24) after its assets under management (AUM) showed a £13.3 billion year-on-year drop.

The £10 million share buyback programme is part of the UK firm’s target to return at least 70% of underlying earnings per share for 2021 and 2022.

Its AUM ended this year’s third quarter at £47.4 billion, over a fifth down on the £60.7 billion in the same period last year, with the vast majority (94%) of the loss in their retail and wholesale business.

But its institutional business had a positive quarter with net inflows of £0.5 billion, and Jupiter expects momentum to continue into the fourth quarter.

Jupiter CEO Matthew Beesley revealed that client demand for UK and European equities products “remained subdued” and that it has seen net outflows from its unconstrained fixed-income strategies.

Jupiter reaches record AUM driven by acquisition and sustainable strategies

He added: “I have sought to take decisive actions to ensure we have the optimal operating model to succeed in a competitive environment.

“This includes reducing our cost base, streamlining the fund range, and restructuring our management team.

“We have made a good start, and this combined with the success of our existing strategies and new growth opportunities, gives me confidence Jupiter is well placed for a return to sustainable growth.”

Fund manager Schroders has also reported a drop in its AUM after nervous investors responded to geopolitical uncertainty and recession risks.

Schroders adds manager to €4.5bn sustainable fund

The British company saw a drop from £773 billion at the end of June to £752.4 billion on September 30.

And wealth manager St James’s Place’s funds under management fell more than 3% to £143 billion on September 30, compared with last year when it was £148 billion.

The UK firm says it is comfortable with its full-year performance despite the challenging backdrop.

CEO Andrew Croft added: “Our business has proven its strength over time and this – together with our resilient financial model – means we expect 2022 to be another year of good progress towards the 2025 goals we have set.”