Jupiter suffers some outflows but assets rise

FUND manager Jupiter yesterday reported its first quarter of net outflows since returning to the London Stock Exchange in June 2010,

The group said it lost £225m in assets in its fourth quarter, after a worsening environment for its core UK customer base and the loss of an institutional mandate hit its flows.

The redemptions included £93m from its mutual funds, the largest part of Jupiter’s business, the firm said in a trading statement yesterday

The London-based funds house, which invests the bulk of its assets in equities, said positive markets offset the loss of client money. Assets rose to £22.8bn at 31 December, up 2.2 per cent from three months earlier.

However the fund group, which is run by Edward Bonham Carter, warned of a tough outlook for the industry.

“Given economic headwinds and deteriorating public and household finances across the Eurozone and the UK, financial markets are likely to remain volatile and flows subdued,” the group said.

Investors, rattled by volatile markets, have shirked riskier investments across the fund management industry, often plumping instead for cash or passive products.