​Jupiter AUM up 10% as flows exceed £400m in ‘quiet’ post-RDR H1

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Edward Bonham Carter

The amount of money run by Jupiter Fund Management grew by more than 10 per cent in the opening half of 2013 as the group overcame the “quiet” post-RDR environment to capture over £400m in new business.

According to the firm’s half year results, assets under management amounted to £29bn at the end of June – up 10.3 per cent from the £26.3bn seen at the start of the year.

Net inflows over the six-month period were £426m. This is down from the £1bn seen over the final six months of 2012 but an improvement on the £300m net outflow recorded halfway through last year.

Jupiter chief executive Edward Bonham Carter says: “Retail fund flows in the UK remained resilient on the back of the market rally early in the year, although the overall environment has been quiet as distributors adapt to RDR.

“While bond funds saw net redemptions in the early stages of the year, demand for these products, together with absolute return funds, recovered into the second quarter, indicating that the widely predicted ‘great rotation’ out of bonds is not yet underway.”

The firm also posts a £59.1m profit before tax for the six months and says net cash has risen to £113.3m, up from £69m at the start of 2013. The interim dividend has been lifted from 2.5p to 3.5p.

Bonham Carter says: “Jupiter continues to attract healthy inflows while delivering consistently strong investment performance. We have also made excellent progress in developing a strengthened and sustainable balance sheet.

“This performance, together with confidence in our prospects, has allowed us to increase our interim dividend by 40 per cent.”