Jupiter begins share buyback despite the "subdued" demand for equity products
After seeing a $13.3 billion reduction in assets under management (AUM) year over year, Jupiter Fund Management announced on Monday, October 24, that it will begin a share repurchase program.
The UK company's goal to return at least 70% of underlying profits per share for 2021 and 2022 includes the £10 million share repurchase program.
Its AUM finished the third quarter of this year at £47.4 billion, down more than a fifth from the £60.7 billion it had at the same time last year. The retail and wholesale businesses accounted for the vast bulk (94%) of the loss.
However, its institutional division had net inflows of £0.5 billion during the third quarter, and Jupiter anticipates momentum to continue into the fourth.
Client demand for UK and European equity products "remained subdued," according to Jupiter CEO Matthew Beesley, and the firm has experienced net withdrawals from its unrestricted fixed-income strategies.
"I have sought to take decisive actions to ensure we have the optimal operating model to succeed in a competitive environment," he continued.
"This includes reducing our cost base, streamlining the fund range, and restructuring our management team."
"We have made a good start, and this combined with the success of our existing strategies and new growth opportunities, gives me confidence Jupiter is well placed for a return to sustainable growth."
The AUM of fund manager Schroders has also decreased as a result of uneasy investors' reactions to geopolitical unpredictability and economic threats.
From £773 billion at the end of June to £752.4 billion on September 30, the British corporation saw a decline.
The funds under administration at wealth manager St. James's Place also decreased by more than 3% on September 30 to £143 billion from £148 billion the previous year.
The UK company claims that despite the difficult environment, it is satisfied with its full-year success.
We anticipate 2022 to be another year of solid progress toward the 2025 targets we have set since our firm has demonstrated its strength over time, CEO Andrew Croft said.
By fLEXI tEAM