Jupiter posts best inflows in over a year

Jupiter Fund Management has reported inflows of £1.4bn in the first three months of the year with diversification strategies leading to the best quarter of inflows in more than a year.

In a quarterly trading update, published today, the £40bn firm reported “significant flows” into its fixed income, absolute return, multi-asset and global emerging markets strategies.

This compares with net inflows of £1bn for the whole of 2016, although Jupiter said last year international diversification had compensated for “a tough year in the UK”.

Geographically, inflows were the strongest in Asia and continental Europe, including “positive contributions” from Italy and Spain where Jupiter recently opened offices.

Jupiter declined to comment on the flows coming from the UK for the period.

The new flows brought assets under management to a total £43.5bn in the three months to 31 March, increasing by 7.4 per cent from the previous quarter.

However, segregated mandates and investment trust flows were negative for the period, with £93m and £3m outflows respectively.

Jupiter chief executive Maarten Slendebroek says: “We are pleased to report a strong start to 2017, driven by our mutual fund franchise which saw net inflows of £1.4bn.

“The continued strategy to diversify our business by product, client type and geography and delivery of strong investment performance after fees across a broad range of strategies has resulted in good inflows both internationally and within the UK.”

In March, Slendebroek rejected suggestions the firm is in the market for a merger with another asset management group. He said while an acquisition would be possible, the firm is capable of growing organically for years to come.

Research firm Liberum argues Jupiter’s “impressive inflows” are the firm’s strongest quarterly result since the company listed in 2010. The new inflows make up more than half of net inflow Liberum forecast for the full year of £2.4b.

Research analyst Justin Bates says: “Based on the strong first quarter result, our 2017 forecasts look well underpinned. Nonetheless, we caution that quarterly results can exhibit volatility, and that the majority of Jupiter’s fiscal year is yet to run. Therefore, we maintain our forecasts for now”.