Jupiter reaches for the stars with record rise

Michael Bow
Follow Michael
MONEY manager Jupiter Fund Management beat analysts’ expectations yesterday to deliver its best quarterly inflows for two years, sending its assets under management to a record high, figures showed yesterday.

The FTSE 250 listed manager breached the £26.3bn asset barrier after attracting £688m more cash from punters in the last three months of 2012. This is the highest quarterly inflow since the end of 2010.

The increase will underscore the recent surge in demand for equities from investors in the so called great rotation away from low yielding bonds towards stocks.

Inflows into equity funds hit a five-year high during the first week of January, according to figures, continuing a trend seen in the last months of 2012.

But Jupiter’s stellar performance failed to quell a sell off in its shares yesterday, as they tumbled nearly 3.5 per cent in London.

This corrected a short spike of nearly four per cent on Tuesday in anticipation of the results.

Chief executive Edward Bonham Carter said: “While we have seen strong mutual funds flows in the second half of 2012, we remain cautious on the short-term outlook due to continued market uncertainties.

“The long-term growth prospects for the savings market remain promising and we will continue to focus on delivering outperformance for our clients and investing in our distribution capabilities.”

Jupiter, which went public in 2010, is primarily an equities house, with close to 80 per cent of the money it runs invested in the asset.

Its most popular funds last quarter were its flagship mutual funds, but a surprise leap in segregated mandates helped outpace analysts’ consensus estimates of £25.9bn of assets managed.