Bloomberg News

Jupiter’s Assets Decline 10% After August Stock Market Rout

October 14, 2011

(Updates with analyst’s comment in third paragraph.)

Oct. 14 (Bloomberg) -- Jupiter Fund Management Plc, the U.K. fund manager that first sold shares to the public last year, said assets under management dropped 10 percent after the August stock market rout.

Assets under management dropped to 22.3 billion pounds ($35 billion) in the three months to Sept. 30, the London-based firm said in a statement today. That beat the 21.9 billion-pound estimate of analysts at Numis Securities Ltd. because clients added 295 million pounds of new money, more than expected.

This was “a credible performance in the core U.K. mutual fund business, which saw positive net flows, representing a decent outperformance versus most U.K. peers over this period,” David McCann, a London-based analyst at Numis, wrote in a note to clients today.

Jupiter’s fall in assets under management was smaller than the 14 percent decline in the FTSE 100 Index of leading U.K. companies, which had its worst quarter for nine years as the European debt crisis worsened and concern increased that global growth is slowing. Jupiter has three-quarters of its assets in mutual funds that are predominately invested in equities.

“Volatile markets continue to impact on investor confidence and flows across the asset management sector, particularly in Europe,” Jupiter said in the statement. “Despite this, we continue to believe in the long-term growth prospects for the savings market.”

The stock climbed as much as 4.8 percent in London trading and was up 0.2 percent at 206.1 pence as of 8:55 a.m. The shares were first sold to the public in June 2010 for 165 pence.

Jupiter also said it intends to pay down 60 million pounds of a bank loan facility on Oct. 31, reducing the outstanding balance to 143 million pounds.

--Editor: Edward Evans, Stephen Taylor.

To contact the reporter on this story: Kevin Crowley in London at kcrowley1@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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