15th Apr 2020 09:54
(Alliance News) - Jupiter Fund Management PLC on Wednesday reported a weaker performance over the first quarter of 2020, with a decline in managed assets amid challenging market conditions.
The FTSE 250 fund manager closed the first quarter ended March 31 at GBP34.99 billion in assets under management, down 18% from GBP42.83 billion at the end of December. On a year-on-year basis, Jupiter's managed assets were 21% lower.
In the three months, Jupiter recorded net outflows of GBP2.32 billion, compounded by negative market movements of GBP5.53 billion during the period.
The fund manager attributed the weaker performance to a tough environment caused by the Covid-19 pandemic, which has had a significantly negative effect on the economy and global financial markets.
Jupiter noted that Merian Global Investors - which back in February the company proposed to acquire for GBP370 million in February - reported a decline in the same period by 30% to GBP15.66 billion at March 31 from GBP22.41 billion from December 31.
Despite the market volatility experienced by both firms, Jupiter said the strategic and financial rationale of the Merian acquisition remains "compelling". Therefore, the company still intends to convene a general meeting in due course, to propose the acquisition to shareholders.
"In this uncertain environment, the group's commitment to maintaining an appropriate cost base remains as important as ever, and we continue to review and challenge costs within the business, making reductions to costs where we are able to without affecting our ability to deliver the investment returns and high standards of service our clients expect from us. The group notes the swift and decisive measures taken by the UK government to support businesses during this difficult time but confirms that it has no current intention to furlough any staff or to take advantage of any such government scheme during this period," Jupiter said.
Jupiter Fund Management will publish its interim results on July 29.
Shares in Jupiter Fund Management were down 6.7% at 201.09 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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