Jupiter sees net Q3 inflows but volatility weighs on AUM

Jupiter reported overall net inflows of £77m for the third quarter of the year, it said on Monday.

Jupiter sees net Q3 inflows but volatility weighs on AUM

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The bulk of the flows came from the firm’s mutual funds business, which reported Q3 net flows of £196m. These were weighed down by segregated mandate outflows of £142m. This the firm said was the result of “top-slicing” on mandates where significant outperformance was delivered.

Investment trusts reported inflows of £23m. According to the firm, its European equity strategies and its dynamic bond fund were the top sellers.

Despite this, overall assets under management fell from £34.3bn to £33.5bn during the quarter on the back of negative market movements, largely from within the mutual funds business.

On the cost front, Jupiter said it plans to simplify the fee structure on its SICAV range, in order to align it with Luxembourg market practice.

In the final quarter of the year, Jupiter will introduce an aggregated operating expense fee to replace the current variable operating expense it currently charges. The change will mean that clients will now receive a fixed basis point rate that is standardised across similar funds. From Jupiter’s point of view, it will mean both a higher revenue yield on the funds and a higher operating costs. 

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