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By Nyree Stewart | Published Aug 01, 2012

Jump in Jupiter Q2 net inflows helps boost AUM

Jupiter Fund Management has reported its assets under management (AUM) has increased by £600m in the first half of the year to £23.4bn helped by exposure to overseas equity assets and growth in its fixed income products, although this is still £1.4bn lower than at June 30 2011.

In its interim results the company noted second quarter mutual fund net inflows reached £210m, up from £55m in Q1, driven primarily by the Merlin fund of funds range, Strategic Bond and Global Convertibles funds.

However, the previously notified loss of a £560m lower margin segregated mandate meant the company recorded an overall net outflow for the second quarter of £189m and a total net outflow of £302m for the first six months of the year.

Profit before tax for the first half fell to £31.2m compared with £37.3m in June 2011, while the company also reported an 8 per cent fall in net revenue in the first half to £117.7m, which it said reflected a 4 per cent drop in net management fees, which continue to contribute the majority of its net revenues at 93 per cent.

Jupiter noted in spite of the challenging market backdrop it has continued to position the business for growth in the medium term, extending its fixed income offering, which together with the multi-asset team runs £1.8bn of total assets, and confirming it is seeking FSA approval for the launch of the Jupiter Merlin Conservative fund in the second half of the year.

Edward Bonham-Carter, chief executive of Jupiter, said: “Our financial position remains robust with a further repayment of £33 million from our bank facility and operating margins remaining above 50 per cent. Although the economic outlook remains uncertain, we believe we are well placed to capitalise on long-term structural drivers and remain confident of delivering value across the cycle.”

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