Jupiter Fund Management AuM drop in third quarter

Jupiter Fund Management posted a drop in third-quarter assets under management on Thursday.

In the three months to 30 September, assets under management fell to £47.7bn from £48.2bn in the previous quarter, as net outflows of £800,000 were partially offset by positive investment performance/market movements of £300,000. Jupiter said that £600,000 of the outflows were from its fixed income strategy, mostly in Continental Europe.

The fund manager also saw negative flows in its European Opportunities and Fund of Funds strategies, partially offset by positive flows in its European Growth, Value Equities and Absolute Return strategies.

Shore Capital said this is a relatively weak update and the brokerage expects to cut its full-year forecasts by 3-4%.

"However, given the level of underperformance in the shares, and a further likely drop this morning, we sense an opportunity may be emerging," it said.

Meanwhile, Numis said assets under management were in line with its forecast, but net outflows were above its £551m estimate.

"Overall, we think that Jupiter shares are unlikely to significantly recover in the short term until Dynamic Bond shows consistent signs of flow improvement and/or other funds see larger net inflows.

"At the moment we are not seeing this. We also believe that the group would need to demonstrate some near-term stability in the management fee margin, demonstrate more moderation in the growth of operating costs and also update the market on its ability to pay a special dividend in light of the lower expected surplus capital due to new lease accounting standards.

"Long term, however, we continue to regard the group favourably."

At 0940 BST, the shares were down 5.1% to 357.95p.