Jupiter reports poor retail sales environment despite AUM growth

Jupiter Fund Management has revealed assets under management (AUM) increased quarter-on-quarter to £22.8 billion in the final quarter of 2011, despite outflows of £225m.

Edward Bonham Carter
Edward Bonham Carter

Outflows in the three months to December 31 2011 were related to the loss of “a single segregated mandate from an institutional client” and poor environment for retail sales.

The asset manager says mutual fund outflows had reached £93m during the final quarter of 2011.

Edward Bonham Carter, chief executive at Jupiter, says: “As we had announced previously, volatile market conditions and reduced investor confidence have led to a considerable worsening of the retail net flow environment during the second half of 2011 in both Europe and the UK, and particularly for equity products.

“Combined with the loss of a segregated mandate, this resulted in modest net outflows in the final quarter.

“However, positive market movements resulted in our total AUM increasing during Q4 to £22.8 billion at 31 December.”

Although, AUM grew from £22.3 billion in the third quarter fo the year to £22.8 billion in the final quarter, the figure was still lower than the £24.8 billion reported in the second quarter of 2011.

The asset manager reported cumulative net inflows of £746m in the year to December 31 2011.

Bonham Carter adds: “We also continued to strengthen our balance sheet through operating cashflows, and it is pleasing to have traded into a positive net cash balance by the end of 2011.”

Jupiter also revealed a £1m charge in the 2011 full-year results will be made following the closure of its Bermuda office. The office was closed in December as a result of reduced scale of its hedge funds.

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