Jupiter’s Assets Shrink by £2.3 Billion Amid Tariff War Turmoil

The global tariff war of 2025 has left its mark on investors, fund managers, and markets alike. For Jupiter Fund Management, the fallout has been stark: a £2.3 billion decline in assets under management (AUM) by mid-April . While the firm’s institutional business provided a lifeline, retail investors fled en masse as trade tensions fueled uncertainty. This article dissects how Jupiter navigated the storm—and why its long-term prospects may still shine through.

The Tariff War’s Ripple Effect

The U.S. “Reciprocal Tariffs” announced in early April 2025—imposing blanket duties proportional to trade deficits—ignited a chain reaction. For Jupiter, the timing could not have been worse. The policies exacerbated inflationary pressures while stifling global growth, creating a “stagflationary” environment that spooked risk-averse investors.

The immediate impact? Retail outflows surged, with £1.5 billion fleeing Jupiter’s unconstrained fixed income and Indian equity strategies. Meanwhile, the U.S. dollar, typically a haven during trade disputes, weakened—a paradox that further rattled markets.

Breaking Down the Financial Fallout

Jupiter’s Q1 2025 results revealed a stark divide between institutional confidence and retail skepticism:
- Inflows of £1.0 billion came from mandates in systematic equities and the high-performing Jupiter Origin team.
- Outflows of £1.5 billion from retail and investment trusts, driven by fears over inflation and geopolitical instability.

By mid-April, AUM had fallen a further £1.0 billion to £43 billion, as markets whipsawed. Negative market movements contributed another £0.5 billion drag, underscoring the dual challenge of client sentiment and macroeconomic headwinds.

Tesla’s volatility—a proxy for supply chain disruption—peaked in April 2025, down 15% from its 2024 high.

Jupiter’s Strategic Playbook

Amid the chaos, Jupiter leaned into its active management ethos. Two pillars emerged:
1. Fixed Income Fortitude: Dynamic Bond and Strategic Bond funds ranked in the top decile of peers as of March 31, demonstrating resilience in volatile conditions.
2. Geopolitical Reallocation: With investors fleeing U.S. markets, Jupiter’s focus on UK and European equities positioned it to capitalize. The Bank of England’s warning of a 1.1% UK growth slowdown in 2025 highlights the stakes—but also the opportunity.

The firm also emphasized risk mitigation:
- Quality Over Quantity: Portfolios prioritized low-leverage, durable businesses, a strategy that historically thrives in uncertainty.
- Active Repositioning: Managers snapped up mispriced assets during panic selling, particularly in undervalued sectors.

Looking Ahead: Risks and Opportunities

The path forward remains fraught. A full U.S.-China trade cessation could trigger further market shocks, while inflationary pressures threaten bond markets. Yet Jupiter’s strengths are undeniable:
- Structural Tailwinds: If capital continues to shift from the U.S. to Europe and Asia, Jupiter’s regional equity focus could attract inflows.
- Crisis-Proof Funds: Its top-tier bond strategies and gold allocations provided ballast in April’s turmoil.

Bond yields plummeted in early April before rebounding—a snapshot of investor confusion amid conflicting inflation signals.

Conclusion: Navigating the Storm

Jupiter’s £2.3 billion AUM decline underscores the toll of 2025’s tariff war. But the firm’s resilience is not to be underestimated. Its top-performing strategies, active management discipline, and focus on European markets align with emerging trends: investors fleeing U.S. overexposure and seeking stability.

While near-term risks linger—geopolitical spillovers, supply chain bottlenecks, and central bank missteps—the data tells a story of adaptability. With £43 billion in AUM and a track record of outperforming peers in crises, Jupiter is not just surviving the tariff war—it’s preparing to profit from it.

The next chapter hinges on whether the trade clouds clear, or if Jupiter’s active managers must weather another storm. Either way, their playbook is ready.