Jupiter’s assets up under new boss as outflows begin to slow
Jupiter Fund Management has seen a modest first-half improvement under new chief executive Andrew Formica, but the company is still recovering from the loss of a star fund manager earlier in the year.
The company’s half year results showed an 8 per cent increase in assets under management, but outflows of client cash continued in the wake of the recent announcement that Alex Darwall was leaving to launch his own company.
Jupiter had £45.9bn assets under management at the end of July, up from £42.7bn at the end of December.
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Net outflows were £1.1bn, down from £2.3bn from the same period last year. The majority of this year’s first half outflows, £700m, came from two of Jupiter’s larger European equities funds following news of Darwall’s departure.
Analysts at UBS had previously warned that £3bn could leave Jupiter as a result of the loss.
Formica, who took over as head of the company in March, said the results represented a “resilient first half performance in the face of challenging industry conditions.”
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“My first few months in this role have served to reinforce the view I held of Jupiter from the outside. This company has a great many strengths: we have talented people; a client-centric culture dedicated to delivering superior performance; and a commitment to active, high-conviction investment management,” he added.
Paul McGinnis, an analyst at Shore Capital, said Jupiter’s results represented “solid interim results in a tough market”.
Jupiter’s shares rose modestly following the results, and were up 0.76 per cent to 383.50 by midday.