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Jupiter’s Assets Climb as Fund Performance Outweighs Inflows

Jupiter Fund Management Plc (JUP), the U.K. money manager run by Edward Bonham Carter, said assets under management grew 11 percent in the first quarter as its funds outperformed rising equity markets.

Funds rose to 29.1 billion pounds ($44.4 billion) in the first three months of the year, helped by 2.7 billion pounds of investment gains and 209 million pounds of inflows, mostly into mutual funds, London-based Jupiter said today in a statement. The firm had 688 million pounds of net inflows in the fourth quarter of 2012.

The implementation this year of the retail distribution review, a U.K. regulatory ruling that bans financial advisers from accepting commissions from fund firms, has caused inflows to stall while advisers instead begin charging up-front fees to clients. Jupiter mitigated the impact of the changes because its fund managers outperformed the market, according to Peter Lenardos, a London-based analyst at Royal Bank of Canada.

“We believe that our 2013 forecasts are likely to be achieved, with stronger investment performance compensating for weaker net inflows,” said Lenardos, who has a hold rating on the stock.

Jupiter achieved 10.1 percent returns on its funds in the first quarter, compared with an 8.7 percent gain in the FTSE 100 Index, he said.

The fund manager, whose biggest market is the U.K., said the European debt crisis is continuing to have an impact on clients’ risk appetite.

“While financial markets have made progress during the year to date, consumer confidence across Europe remains fragile and industry flows vulnerable to any perceived increase in stock market volatility,” the firm said in the statement.

The stock slipped 0.2 percent to 326.8 pence at 9:30 a.m. in London trading, valuing the firm at about 1.5 billion pounds.

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