Clients fleeing the fixed income funds run by Jupiter contributed to the firm suffering a decline in assets under management for the the quarter to 31 March 2018.
Jupiter has reported outflows of £1.3bn in the first three months of the year, with £900m of that coming as a result of clients pulling money from open ended funds, £15m of the decline came from the investment trusts, and £306m from segregated mandates.
The company said the bulk of the withdrawls, around £1.1bn, came from clients taking money from the fixed income mandates run by the company.
Higher interest rates in the US and UK have sparked fears among many investors that a bond market sell-off is imminent.
The company said one particular institutional client, who had deployed capital with the firm for a long time, had withdrawn their cash in the first quarter of 2018 in order to rebalance their portfolio.
Jupiter’s assets under management at the start of 2018 were £50.1bn, at the end of the quarter it was £46.8bn, with investment performance also contributing to the decline.
Maarten Slendebroek, chief executive of Jupiter, said 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."
David.Thorpe@ft.com
