Jupiter Fund Management under pressure as first-quarter AuM drop

Jupiter Fund Management was under the cosh on Wednesday as it posted a drop in first-quarter assets under management.

In the three months to the end of March 2018, assets under management fell 6.6% to £46.9bn amid net outflows of £1.3bn, in what the company called a "challenging start" to the year, with negative market returns across all channels.

The majority of the outflows came from the fixed income asset class, where clients withdrew a net £1.1bn of assets. In addition, there was a £0.3bn net outflow from the segregate mandate category, as one "long-standing institutional client" withdrew assets as it rebalanced its portfolio.

Geographically, the UK was broadly flat during the quarter, however all other regions contributed net outflows, with Continental Europe and Asia the most impacted.

Chief executive Maarten Slendebroek said: "We have seen a period of market turbulence together with subdued demand, resulting in net outflows of £1.3bn in the first quarter. As indicated in our financial results presentation on 27 February 2018, this change in the flows trend is not unexpected. The growth of assets sourced from international distribution partners has changed Jupiter's flow profile to being less predictable in the short term. As a result, in future we expect to see continued growth but with higher quarterly differentiation.

"The continuation of our strategy of diversification by product, client type and geography and our approach to active asset management leave us well placed, both internationally and within the UK across a broad range of strategies."

At 0905 BST, the shares were down 4.8% to 444p.