Jupiter Asset Management struggles with massive outflows

Jupiter Asset Management is facing significant outflows that were accelerated ahead of the departure of renowned portfolio manager Ben Whitmore. Within just three months, investors withdrew £1.6 billion from the company's value funds. Over the entire year, withdrawals amount to £5 billion, with further redemptions already announced. The asset manager reported that the majority of the outflows came from institutional mandates, indicating the preparation for Whitmore’s departure. Whitmore is set to leave at the end of the month to start his own firm, Brickwood Asset Management. Jupiter warned that further redemptions are likely, particularly from institutional mandates. It is expected that by the end of the year, 'most if not all' of the remaining £2.3 billion from these mandates will be withdrawn. To counter the outflows, Jupiter is now relying on Alex Savvides, who recently joined the company from JO Hambro Capital Management. Savvides will take over the UK Special Situations Fund, which had previously been managed by Whitmore. In addition, Jupiter has poached a team of fund managers from London's Origin, which manages £800 million in global stocks, including emerging markets, to reduce reliance on UK equities. The total value of assets managed by Jupiter fell to £50.1 billion, compared to £52.6 billion in March. Pressure on mid-sized asset managers continues as clients keep withdrawing funds. Similarly, Premier Miton reported a net outflow of £133 million in the third quarter, impacted by uncertainty ahead of the UK budget at the end of the month. Mike O’Shea, CEO of Premier Miton, hopes for a return of investor confidence once the fiscal implications of the budget are announced. Liontrust CEO John Ions also recently expressed concern that uncertainties over potential tax hikes have negatively affected investor sentiment and caused fund outflows. Speculation and uncertainty over tax changes have impacted investor confidence and fund flows across the industry. Meanwhile, Jupiter managed to record net inflows despite the challenges, excluding the withdrawals from the value team and the loss of the Chrysalis Investment Trust, which separated from Jupiter this year.