Jupiter Fund Management sees AuM jump as mutual fund flows improve

FTSE 250 group Jupiter Fund Management has posted a significant rise in assets under management (AuM) after a marked improvement in net mutual fund flows in the third quarter, despite the fact that industry conditions remained challenging.

Mututal funds rose from £18.1bn at June 30th 2012 to £19.7bn at September 30th, pushing total AuM from £23.4bn to £25bn over the same period.

"Our strong investment performance, recognised brand and international distribution reach helped drive this improvement in both the UK and Europe," the group said. "Inflows 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.

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"Overall net inflows for the quarter were £579m, held back by the loss of a UK equity segregated mandate and the remainder of a large private client portfolio, following the withdrawal in the first quarter of the first half of their assets. Driven by mutual funds, cumulative overall net flows have now moved positive for the year to date and total £277m for the nine months to September 30th."

The company remains cautious in its forward outlook, saying consumer confidence is fragile and industry flows remain vulnerable to any increase in stock market volatility, however, it does believe there are long-term growth prospects for the savings market.

NR