Tipped by Charlie Morris at ByteTree25 Jun 2025 20:16
“Our purpose is clear – we create a better future for our clients with our active investment excellence. This fundamental purpose is embedded throughout our culture and is the basis of all our decisions. We firmly and passionately believe in the value of active management and how it can improve outcomes for our clients over time. Conviction is at the heart of how we invest. When it comes to achieving the best outcomes for our clients, we have no house view to dictate positions. Instead, we allow our fund managers the autonomy and freedom to form their own opinions and follow their own convictions, always with support from dedicated sustainability and risk management specialists. This active, high-conviction approach applies equally across our product range. We look to ensure that our client offering is always differentiated and appropriate for our clients’ needs.”
The bear case is well established. That is, JUP has seen funds under management fall, as investors opted for lowest cost passive mangers. Then last year, the UK head Ben Whitmore, left to set up his new firm Brickwood. His departure saw funds under management fall, but they didn’t go to Brickwood where the UK fund manages £72m, and the global fund £14m. That shows how difficult it is to succeed in active management these days. Still, JUP assets have continued falling. There were £60 billion of assets under management in 2020, and now £45 billion.The price to sales (in this case fees) says it all. Sales used to rise, only to peak in 2021, when performance fees were high, and have fallen back to earth since. This is the established bear case.
On closer examination, a large part of the drop in assets came from fixed income, and one particular fund, the Global Equity Absolute Return Fund. This was the star until 2017, when it performed well (blue) and saw assets grow to £16bn (red). After a rough patch in 2018/19, it turned that around and today has seen assets rise from £1.3bn at the low in 2022, to £4.4bn today.
Other JUP funds doing fine include the European, Indian, and Asian Income funds, and don’t forget Ned Naylor-Leyland’s Gold and Silver Fund which is growing nicely. The point is that JUP have great funds, and a healthy fund management culture. If the environment changes, encouraging asset allocators to return to active management, they are in a good position.
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