The UK Investment Co Jupiter Fund Management reported that it suffered asset losses exceeding $13 billion last quarter. As a result of this, a 5% drop in share price of the company was witnessed. Jupiter now has £45.3 billion in assets under management, down 13% from a year earlier.
Impact of Management Changes on Client Retention
The asset manager started to encounter issues after the exit in January last year of star manager Ben Whitmore. Client withdrawals followed Whitmore’s departure to set up his own independent boutique investment firm. For over a year, Jupiter Fund Management has been suffering from client attrition due to competitive pressure from others.
Financial Decline and Tough Market Conditions
Jupiter also announced a 7% drop in annual profit alongside the asset outflows. For the year ending 31 December, company reported profit before tax was £97.5 million and it was £105.2 million the year before. The problems at the company reflect wider trends affecting mid-sized asset managers, and the difficulties they increasingly face in holding on to clients.
According to Barclays analysts there were some outflows expected but the loss in the final quarter was worse than thought. Jupiter Fund Management’s shares took earlier a hit but then shared some recovery and were down 3.7% at 10:20 GMT. The company’s stock has fallen approximately 10% since the beginning of 2025.
A Comparison with Competitors
On the other hand, other UK-based asset managers like St James’s Place (SJP.L) have done better. St James’s Place beat analysts’ forecasts as a 14% rise in its post-tax cash result for the full-year. The company’s strong results show that some firms are doing well despite the global economic turmoil.
Mark FitzPatrick, CEO of St James’s Place, said that clients were focusing more on financial planning because of increasing uncertainty in the global geopolitical and economic arena. FitzPatrick said people need advice more than ever.
St James’s Place’s post-tax underlying cash result for the year to December 2024 was £447.2 million, up from £392.4 million. This positive result has helped lift the firm’s shares, which have gained 25% since the start of 2025.
Brooks Macdonald Also Sees Positive Growth
The funds under management at Brooks Macdonald, another UK wealth manager, rose to £15.7 billion as at 31 December 2024 from £15.1 billion earlier. Some wealth management firms appear to be more resilient and tackling the ongoing tough market better than others.
Outlook for the Asset Management Industry
Jupiter’s recent difficulties reveal the continuing struggles of the asset manager and in particular, mid-sized firms, as clients flee amid turbulence. Given the uncertainty in financial markets, Jupiter Fund Management will have to modernize its strategies to attract investors back.
