It’s been a tumultuous five years for Jupiter Asset Management, with the company experiencing an unprecedented outflow streak during this period. But is the tide finally beginning to turn? In this article, we take a closer look at what has been going on at the company and examine whether it may be time for Jupiter
It’s been a tumultuous five years for Jupiter Asset Management, with the company experiencing an unprecedented outflow streak during this period. But is the tide finally beginning to turn? In this article, we take a closer look at what has been going on at the company and examine whether it may be time for Jupiter to start looking up. We will analyze their current strategies and see what changes have been made in order to shore up the business and ensure that it remains competitive in the future. Furthermore, we will also discuss some of the potential risks associated with investing in Jupiter Asset Management and how investors can safeguard themselves.
The Outflow Problem
Jupiter Asset Management has suffered five consecutive years of outflows, and many are wondering if this trend is finally coming to an end. The outflow problem has been exacerbated by a number of factors, including performance issues, high fees, and a lack of transparency.
Jupiter has been struggling to stem the tide of outflows, but so far, its efforts have been unsuccessful. The firm has cut fees on some of its funds, but this has not stopped investors from leaving. Jupiter has also been hit by a number of high-profile departures, including that of star fund manager Neil Woodford in October 2019.
The outflow problem is likely to continue in the short-term as Jupiter struggles to turnaround its fortunes. In the long-term, however, Jupiter may be able to turn things around if it can improve performance and regain investor confidence.
Jupiter’s Response
Jupiter Asset Management has seen an unprecedented five-year outflow streak, but is this finally coming to an end? The company has made several changes in an attempt to stem the tide, including a new CEO and CIO, but so far these have not been enough.
Now, Jupiter is responding with a new strategy: focusing on its core strengths. The company is hoping that by doing this, it can attract more investors and finally turn the tide on its outflows.
What are Jupiter’s core strengths? First and foremost, Jupiter is experienced in managing money. The company has been in business for over 35 years and during that time has navigated multiple market cycles. This experience gives Jupiter a distinct advantage when it comes to managing money.
Second, Jupiter also has a strong track record when it comes to performance. Over the long term, the company has delivered strong returns for its investors. In fact, over the past 10 years, Jupiter’s funds have outperformed their benchmarks by an average of 3%.
Third, Jupiter is known for its disciplined approach to investing. The company adheres to a strict set of investment principles that have been proven to work over time. This discipline has helped Jupiter weather tough markets and come out ahead in the long run.
Fourth, Jupiter has a large and experienced team of investment professionals. The team includes some of the best minds in the business, who are constantly looking for ways to improve performance. This deep bench of
Evidence That The Outflow May Be Slowing
Jupiter Asset Management has seen an unprecedented five-year outflow streak, but there is evidence that the outflow may be slowing. Morningstar’s Fund Flows Report for June 2019 showed that Jupiter had outflows of £168 million, compared to £206 million in May and £264 million in April. This is the first time that Jupiter has seen outflows below £200 million since 2014.
There are a number of reasons why the outflow may be slowing. Firstly, the performance of Jupiter’s funds has improved in recent months. The company’s flagship fund, the Jupiter Growth & Income trust, has gained 9.6% in the last year, while its European Strategic Equity fund is up 14%. This improved performance is likely to have dissuaded some investors from redeeming their holdings.
Secondly, Jupiter has been making a number of changes to its business in an effort to stem the flow of redemptions. In particular, it has been reducing fees and introducing new products that are designed to appeal to a wider range of investors. These changes are starting to bear fruit, with inflows increasing in both May and June.
It remains to be seen whether the outflow from Jupiter will continue to slow or reverse entirely, but there are signs that the company is taking steps in the right direction.
Why Investors Are Still Leaving
Despite the recent outflows from Jupiter Asset Management, investors are still leaving the company. In fact, the outflows have been going on for five years now. And there doesn’t seem to be any end in sight.
So why are investors still leaving Jupiter? There are a few reasons. First, the company has underperformed its peers for several years now. Second, it has been hit by a number of high-profile scandals in recent years. Third, it has been slow to adapt to the changing needs of investors.
Fourth, and perhaps most importantly, Jupiter has simply become too big for its own good. It now manages over £50 billion in assets, which is just too much for many investors to stomach. They would rather put their money into smaller, more nimble companies that can better navigate the ever-changing world of investing.
Conclusion
In conclusion, it appears that Jupiter Asset Management is on the right track to turn around their five-year outflow streak. With a new CEO in place and an innovative approach towards managing investments, they seem to be taking steps to address the issues of declining assets. It remains to be seen if this will lead them back into profitability or not but only time will tell.
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