Strong inflow boosts assets 9pc at Jupiter

THE FUND management group run by Edward Bonham Carter, the brother of actress Helena Bonham Carter, has beaten analysts’ expectations for the final quarter of last year.

Jupiter Fund Management saw its assets under management (AUM) grow nine per cent to £24.1bn for the three months to 31 December.

The firm experienced stronger than predicted net inflows of £772m across its business lines during the period, driven by inflows into mutual funds and segregated mandates.

Analysts at Credit Suisse had forecast a rise to £23.5bn, with net inflows of £600m.

Bonham Carter, chief executive of Jupiter, said: “Jupiter had a strong end to 2010. It was encouraging to see the group maintain our track record of continued net inflows, assisted by the benefit of new product launches and international distribution.”

Mutual funds contributed £529m in net inflows for the fourth quarter, boosted by the launch of two new funds.

British consumers have flocked to invest in mutual funds as an alternative to traditional bank savings accounts, due to the low Bank of England interest rate, according to analysts.

Shore Capital analyst Danielle James said: “There have been relatively few options outside of mutual funds for investors, meaning the entire industry is likely to do well.”

However, she warned investors could return to high street savings accounts should the interest rate be lifted above its current 0.5 per cent level.

“Once the interest rate starts getting back to somewhere where investors can get reasonable returns leaving cash in bank accounts there will be less impetus to place capital in funds.”