10th Oct 2014 06:56
LONDON (Alliance News) - Jupiter Fund Management PLC Friday said its assets under management fell to GBP31.66 billion at the end of September after it sold its private client operations, but it scored GBP231 million of net mutual fund inflows in the third quarter, bringing the total for the first nine months of 2014 to GBP1.1 billion.
"This has been a busy period for Jupiter with the completion of the sale of its private client operations, an important strategic step which allows us to increase our focus on our mutual fund franchise. This part of the business continues to be the main driver of growth, contributing a further GBP0.2 billion of net inflows this quarter," Chief Executive Maarten Slendebroek said in a statement.
Jupiter completed the sale of its private client operations to Rathbone Investment Management Ltd on September 26, leaving it focused mainly on its mutual fund operations. It intends to distribute the net proceeds of about GBP22 million to its shareholders through a special dividend after it releases its 2014 full-year results.
It had GBP26.39 billion in mutual funds under management at the end of September, up from GBP25.76 billion at the end of June, as the inflows and a GBP474 million increase resulting from the private client deal were partly offset by a GBP79 million market movement loss.
Its segregated mandates assets rose to GBP4.25 billion, from GBP4.20 billion at the end of June, as a GBP126 million increase resulting from the private clients sales was partly offset by a third-quarter net outflow of GBP12 million and a market movement loss of GBP61 million.
Total assets under management rose to GBP31.66 billion, from GBP33.11 billion.
"The previously notified loss of a large segregated mandate remains pending and is still within this total. During the fourth quarter, the GBP234 million Second Split investment trust will also be closed as it reaches the end of its life," it said.
It re-classified 30% of its assets under management into its mutual funds and segregated mandates categories after the sale of the private client operations, reflecting the assets that are still managed by Jupiter after the sale.
"Top selling funds included Dynamic Bond, Strategic Bond and Income Trust. The overall result was held back by GBP50 million of outflows following our decision to close the Cash and Global Energy unit trusts in the fourth quarter, as we believed these funds would not reach profitable scale," it said.
By Steve McGrath; [email protected]; @stevemcgrath1
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