Jupiter Fund Management is set to overhaul its fee structure as investors withdrew £1bn in the three months to September.
In a trading update published today (October 17) Jupiter revealed it will be reviewing its pricing and is set to implement a tiered fee structure for clients investing in the unit trust and OEIC ranges.
It claims this will “create a better alignment” with the firm’s clients as a fund’s assets grow.
From early 2024 discounts are expected to be applied as a fund reaches a certain amount of assets.
This will start at £500mn of assets at which point a discount of two basis points would be applied.
Jupiter's update said: "Although we cannot forecast client flows and business mix, at our current AUM this would result in an additional decline in the overall net revenue margin through 2024 of between 1.5 basis points and 2 basis points.”
Elsewhere, the business saw assets under management drop to £50.8bn at the end of September from £5.4bn at the end of June.
The firm added despite the challenging outlook it will continue to invest in its technology infrastructure and workforce.
Matthew Beesley, chief executive, said: “Despite the challenging market environment, we expect our financial performance for the current year to be in line with expectations.
"During my first year as CEO, we have continued to make progress against our previously stated strategic objectives and I believe the continued investment in our clients, our technology and our people will deliver long-term value.
“The future of the asset management industry will not be through the traditional model of simply 'distributing' products, but in forming deeper relationships with our clients. We have rationalised our fund range and right-sized the business and are investing to ensure the company is aligned with clients' requirements which are fundamentally changing.
"Whilst progress will not be linear, the growth of our institutional and international businesses are encouraging indications of our ability to increase scale and grow our appeal to a broader range of clients".
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com.
