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UK fund managers Schroders and Jupiter’s assets fall on volatile markets
Global Banking & Finance Review®
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(Reuters) -British fund managers Schroders and Jupiter on Thursday reported a decline in assets under management (AUM) while peer St. James’s Place saw a drop in third-quarter net inflows as investors struggled with volatile markets.
(Reuters) -British fund managers Schroders and Jupiter on Thursday reported a decline in assets under management (AUM) while peer St. James’s Place saw a drop in third-quarter net inflows as investors struggled with volatile markets.
After a boost in AUM during the pandemic, global fund managers are now witnessing a fall in managed assets as jitters over the UK’s financial stability and a sharp sell-off in stocks and bonds in recent weeks compound worries about recession.
Schroders said total assets under management dropped 2.7% to 752.4 billion pounds ($843.1 billion) in the three months to Sept. 30 and Jupiter Fund Management said in a separate statement its AUM fell by 1.4 billion pounds to 47.4 billion.
While wealth manager St James’s Place AUM was slightly up compared to the previous quarter, closing funds under management fell more than 3% to 143 billion pounds, compared with last year.
The updates come a day after a quartet of British fund managers — Britain’s largest listed hedge fund firm Man Group, Quilter, Rathbones, and Liontrust Asset Management — said their AUM dropped by $9.8 billion in aggregate in the three months to end-September.
Schroders said the fall in its AUM was partly driven by a decline in its Solutions segment and a 5% decline in its Mutual funds unit. Its liability-driven investment or LDI business sits in its Solutions segment which saw a 9% decrease in its AUM, the biggest among all divisions.
The group did not disclose detail on flows.
Jupiter Fund Management meanwhile reported a smaller than net outflow of 600 million pounds, saying more resilient institutional investors helped it to beat expectations. St. James’s Place net inflows fell 15% to 2.19 billion pounds.
JP Morgan analysts said they expected a further slowdown in St. James’s Place’s growth in the fourth quarter, as the wealth manager undershot consensus expectations for its third quarter net flows.
Shares in Schroders slipped 0.4%, while St. James’s Place down 1.3% and Jupiter up 3.3% as at 0865 GMT.
($1 = 0.8924 pounds)
(Reporting by Sinchita Mitra in Bengaluru and Sinead Cruise in London; editing by Uttaresh.V)
Assets Under Management (AUM) refers to the total market value of the assets that a financial institution manages on behalf of its clients.
Market volatility refers to the rate at which the price of securities increases or decreases for a given set of returns. It indicates the level of risk associated with a particular investment.
Net inflows are the total amount of new investments into a fund or investment vehicle, minus any withdrawals or redemptions made by investors.
A recession is a significant decline in economic activity across the economy that lasts for an extended period, typically visible in GDP, employment, and retail sales.
A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.
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