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Jupiter Asset Management is strengthening its European equities division by acquiring a seasoned team from GAM Investments, aiming to recover from recent asset outflows.
What does this mean?
This move comes as European investment firms, Jupiter included, struggle with underwhelming performance in their equities strategies, driving investors towards US firms with better earnings prospects. By bringing in three seasoned managers from GAM, who manage around £1.4 billion (or $1.77 billion) in assets, Jupiter aims to improve outcomes for both institutional and retail investors. This isn't just about increasing assets under management; it's about leveraging a team known for achieving top quartile results and maintaining positive inflows in a tough market. Jupiter's shares saw a 2.4% uptick, reflecting investor confidence in this strategic direction, set against a backdrop of £100 billion outflows from European funds.
As European fund managers fight to retain investors amid mediocre returns, Jupiter's strategic acquisition could indicate a shift. Success here might lead to a broader trend of consolidation and specialization, potentially sparking renewed interest in European equities.
For markets: A ray of hope for European equities.
With European equity funds experiencing major outflows, the addition of a high-performing team to Jupiter could revitalize the ailing sector. Should these managers replicate their earlier achievements, they could attract renewed investor interest, balancing the strong pull of the US market.