Jupiter Fund Management shares tumbled to a five-year low as it reported retail investors pulled £1 billion from its funds in the past three months.
The FTSE 250 group also unsettled investors with a new lower fee structure for unit trusts based on the size of a fund.
Assets under management at the end of September were £50.8 billion, down from £51.4 billion in June and were helped by institutional funds rising £500 million to £9.8 billion. Retail funds dropped to £41 billion from £42.1 billion.
Matthew Beesley, chief executive, said the performance had been in line with expectations, but added that "the future of the asset management industry will not be through the traditional model of simply 'distributing' products, but in forming deeper relationships with clients".
As part of this, Beesley said Jupiter was introducing a tiered fee structure for its UK Unit Trust and OEIC ranges.
From early 2024, discounts will be applied as a fund reaches various levels of assets under management starting at £500 million of assets, at which point a discount of 2 basis points (bps) will be applied.
“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 bps and 2 bps.”
Shares fell 13% to 76.1p.