Jupiter sees continued inflows to institutional arm in Q1 despite retail woes

Jupiter Fund Management has seen the assets under management of the institutional side of its business increase steadily as the firm experiences continued outflows from its retail, wholesale and investment trusts arms.

In a trading update today (25 April), the firm revealed that AUM had increased by £600m in Q1 to £50.8bn, largely due to positive market movement of £1.5bn.

This had been driven by positive market movement of £1.5bn, as well as £100m in net flows from institutional clients, which partially offset the £1bn in outflows from retail, wholesale and investment trusts.

Jupiter revealed that it has now seen outflows from its retail, wholesale and investment trusts divisions across the last five quarters, despite market returns picking up over the last two quarters.

In contrast, institutional clients have returned net positive inflows or flat flows in the last five quarters.

The consequence of this is that institutional clients have slowly become a larger part of the business, making up £5.1bn of Jupiter £55.3bn (9.2%) AUM in Q1 last year, compared to £7.3bn of the firm's £50.8bn in Q1 2023 (14.4%).

In a statement, Jupiter attributed the continued outflows to a ‘risk off' environment, saying that client demand for UK and European equities had "remained muted", while uncertainty still remained in fixed income despite slowing outflows.

The firm explained that its boost in institutional inflows was primarily driven by mandates funding into global equity strategies managed by NZS Capital.

"Our pipeline of late stage opportunities remains strong, and we look forward to increasing scale in this channel over the medium term," the firm concluded.