Jupiter’s assets fall after disposal

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JUPITER Fund Management’s assets under management fell in the third quarter after the sale of its private client business, while the pace of new money entering its funds also slowed, sending its shares down to the lowest level in more than a year.

Assets under management dropped to £31.7bn in the September quarter from £33.1bn at the end of June, it said in a statement, after £2.2bn of funds left the company with the sale of its private client and charity investment business to wealth manager Rathbone Brothers.

Jupiter completed the sale to Rathbones in September and said it intends to distribute estimated net proceeds of about £22m as a special dividend after the 2014 results, equivalent to about 4.8 pence a share, according to data.

Jupiter’s chief executive Maarten Slendebroek said that the completion of the sale was an important strategic step which allows the firm to focus on its mutual fund operations.

“This part of the business continues to be the main driver of growth,” he said in a statement.

About 83 per cent of Jupiter’s assets under management were in its mutual fund products at the end of September, up from 78 per cent during the same period last year.

But net inflows into its mutual funds fell to £231m in the quarter from £410m three months earlier, and £278m in the same quarter last year.