Jupiter to put back float plan

David Hellier
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JUPITER, the fund management group headed by Edward Bonham-Carter, has decided to put its flotation plans on hold following the crisis that has engulfed its rival Gartmore.

Sources say the group recently decided on advisers for an “imminent” flotation of the firm on the stock market but events at Gartmore, where one of its star managers has been suspended, has derailed plans, at least temporarily.

Gartmore’s share price performance has disappointed investors since its flotation last December when its shares were priced at 220p. The shares have underperformed from the start but their performance has been wretched in recent weeks following the suspension of star fund manager Guillaume Rambourg.

Rambourg and his boss Roger Guy account for 40 per cent of the fund manager’s revenues, leading to investor concerns about how reliant fund management groups might be on one or two star traders.

Those close to Jupiter argue that it is not as dependent on such stars as its rival. Even so there has been a healthy debate about whether the group might benefit from letting the Gartmore situation fade before putting itself and its management team in front of potential investors.

The group, which has never confirmed plans to float, said last night it had no comment to make to City A.M.