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Mutual fund flows push Jupiter's AUM to a record £25bn
by Sarah Miloudi on Oct 18, 2012 at 08:11
Jupiter's assets under management (AUM) have hit a record £25 billion, sending shares in the company up by 3%.
Speaking to investors, chief executive Edward Bonham Carter said flows into mutual funds had played a dominant role, helping Jupiter Fund Management to navigate what was a choppy quarter for the broader asset management industry.
While Jupiter's AUM increased to £25 billion in the three months to 30 September, net mutual fund inflows hit £795 million and cumulative net mutual fund inflows totalled £1.1 billion for the nine months ended 30 September.
'During the difficult flow environment in the first half of the year, we continued to position the business for growth. It was therefore pleasing to see an acceleration in mutual fund inflows in the third quarter, resulting in record AUM of £25 billion,' Bonham Carter (pictured) said.
The results posting saw shares in Jupiter gain 3.07% shortly before 9.30am, taking them to 271.9p.
The recovery in Jupiter's mutual fund flows represents a significant improvement, the firm said, adding that its 'strong investment performance, recognised brand and international distribution reach' helped drive this trend both in the UK and Europe.
Inflows at Jupiter were predominantly into funds positioned towards the cautious end of the risk spectrum, such as Merlin Income , Strategic Bond and Global Convertibles , supported by several large deals.
These flows, together with improved market levels, led to mutual funds AUM increasing to £19.7 billion at 30 September.
Overall, net inflows for the quarter totalled £579 million, with the firm acknowledging these were held back by the loss of a UK equity segregated mandate and the remainder of a large private client portfolio, following the withdrawal in quarter one of the first half of their assets.
Again driven by mutual funds, cumulative overall net flows at Jupiter have now moved into positive territory for the year to date and total £277 million for the nine months to the end of September.
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