Jupiter chief banks on growth to revive fund manager’s fortunes
Matthew Beesley wants to expand overseas and widen product range in bid to stem outflows
Expenses and the “bloated” range of funds were chopped, 80 employees let go and the executive committee shrunk. Just a few months on and Beesley now has his sights set on growth: expanding in overseas markets and offering funds in specialist areas such as the environment.
He has his work cut out. Jupiter has not had an easy ride in recent years. Its share price has dropped more than 75 per cent from its peak in 2017, costs are still high and it has reported four years of net outflows.
Rae Maile, analyst at Panmure Gordon, is sceptical about the plans for expansion. “Given the market conditions and the recent history, a strategy based on rapid growth is unlikely to convince anyone,” he said.
“There needs to be a very level-headed explanation of which funds, which strategies and which geographies can be made to work, but also a recognition that costs are just too high for what should be a simple business.”
Full Article here: https://www.ft.com/content/05b8f163-c18d-4aa1-be4e-4be5f2991320
Author: Emma Dunkley, Financial Times
Managing Director, Research Analyst, Financials & Tobacco