Struggling fund manager Jupiter has reported significant net outflows of £1.6bn for the first quarter of the year, th third quarter in a row it's published net outflows

Despite that, AUM climbed to £52.6bn from £52.2bn, with the figure driven higher by positive market movements of £2bn.

The outflow figure included £800m lost following the change in arrangements of the management of the Chrysalis Investment Trust.

The change wad that the investment company led by fund managers Richard Watts and Nick Williamson split from its parent this spring. The Chrysalis Investment Trust had been brought under Jupiter’s control through its acquisition of Merian in 2020.

Jupiter’s institutional arm also lost £800m, because of strategies managed by Jupiter’s value team. Institutional clients pulled £700m from the strategies.

The firm’s institutional AUM fell by £0.5bn to £9.5bn over the period.

The company was also hit in the quarter by the news that long-serving Jupiter fund manager Ben Whitmore, who looks after around £10bn, is leaving the firm to start his own boutique fund management business. Mr Whitmore has been with Jupiter since 2006 after joining them from Schroders.

That news saw shares in the fund manager fall nearly 15% in a day as the market looked unkindly at the company’s long-term growth potential.

Five years ago the shares topped 400p but have fallen almost 80% since then to around 78p. In the last year they’ve fallen 40% and are down 12% in the last month.

Statutory pre-tax profit at Jupiter slumped by 84% to £9.4m for the year ended 31 December 2023, compared to £58m in 2022.

Announcing the results Jupiter chief executive Matthew Beesley said investment performance at Jupiter had improved over the period and the firm had made progress on its key strategies.

He said: “We have delivered robust performance this year, despite the challenges faced by our industry. Our strong capital position means that we are well-placed to invest for the future. The market outlook continues to be uncertain but I am confident that we have a strong underlying business and a strategy that can deliver growth over the medium term.”

Investors have pulled money from Jupiter in four out of the last five quarters. Outflows were £1.2bn in the last quarter of 2023, and £1bn in the previous quarter. The group posted net inflows of £0.9bn in the second quarter of the year but that followed outflows of £0.9bn in the first quarter of 2023.

Jupiter will be issuing its next interim results for the three months to 30 June on 26 July.