Jupiter takes £48m hit to profit in tough year

Jupiter’s pre-tax revenue fell by £48m in 2023 because the Metropolis’s fund homes proceed to battle macroeconomic headwinds.

Revenue fell from £58m to £9.4m on the again of £2.2bn in internet outflows and a £76.2m impairment on goodwill, in response to the asset supervisor’s annual outcomes revealed on 22 February.

“We have now delivered strong efficiency this yr, regardless of the challenges confronted by our trade,” chief government Matthew Beesley mentioned.

Beesley mentioned there had been a “prevailing sense of warning all year long” from traders given excessive inflation, rising rates of interest and geopolitical uncertainty, weighing significantly closely on energetic managers, however property on the agency nonetheless rose 4%.

However Jupiter has additionally battled its personal inside challenges just lately. The total-year outcomes come after Jupiter introduced in January that considered one of its prime fund managers, Ben Whitmore, was leaving to arrange his personal enterprise.

Whitmore, who has labored at Jupiter since 2006, is ready to depart in July. He manages a few of Jupiter’s largest funds, together with the UK Particular Conditions and Jupiter Earnings belief.

Dermot Murphy, one other fund supervisor at Jupiter, can be leaving to hitch Whitmore’s new enterprise, as is product strategist Claudia Ripley.

READ Jupiter boss says agency can retain prime expertise after Whitmore exit

Alex Savvides, who presently runs the UK Dynamic fund at JO Hambro Capital Administration, will take over administration of Whitmore’s Particular Conditions fund. In the meantime Adrian Gosden and Chris Morrison — two hires Jupiter produced from GAM — will oversee the Jupiter Earnings belief.

Numis analyst David McCann mentioned in January that Whitmore’s exit — which comes virtually 5 years after the departure of fellow star supervisor Alexander Darwall — “as soon as once more opens the controversy about whether or not Jupiter is a gorgeous place to work for prime expertise within the trade”.

Nevertheless, Beesley instructed Monetary Information that regardless of the departure of a excessive profile supervisor, Jupiter was nonetheless capable of appeal to and retain key employees.

“We’re changing nice funding expertise with nice funding expertise. That claims one thing to me concerning the capacity of Jupiter to draw expertise,” Beesley mentioned.

“It’s a people-run enterprise and we expect rather a lot about our succession plans for all our folks. I’m a supervisor of human capital. That’s my job as an asset administration CEO.”

To contact the authors of this story with suggestions or information, electronic mail David Ricketts and Justin Money

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