Jupiter draws in net cash for first time since 2017

JUPITER Asset Management has won its first spell of net new business in five years as it seeks to expand into Europe.

The FTSE 250 fund manager reported a net £100m of inflows into its funds during the second half of 2022, a marked improvement on previous years. Net inflows occur when more money goes into a company’s funds than is withdrawn during a period.

The better than expected performance caused shares to jump by 8pc to 144.8p, valuing the asset manager at £789m. Matthew Beesley, who became Jupiter’s chief executive last October, said: “Jupiter had a stronger second half, recording positive net flows for the last six months of the year and for the first time since 2017.”

He added: “The past year has clearly been difficult, with macro-economic events significantly impacting investor sentiment and asset valuations.”

Despite the stronger performance between July and December, Jupiter still suffered total outflows of £3.5bn for the whole of last year.

Mr Beesley, who was previously the company’s chief investment officer, has embarked on a significant restructuring programme, which has involved cutting dozens of jobs. He has also said he wants to expand the company’s presence overseas and widen product range in an attempt to reverse outflows.

His job has been made harder by volatile markets that have put further pressure on Jupiter’s investments, also hitting some of the firm’s biggest funds.

The outflows coupled with negative investment performance dragged assets under management down 17pc to £50.2bn at the end of 2022. Pre-tax profits for the full year also slumped by more than two thirds to £58m.

Jupiter has struggled in recent years, with its share price falling by more than half during the tenure of Mr Beesley’s predecessor between 2019 and 2022.