Jupiter Fund Management saw its shares climb 0.8% on Tuesday following the release of first-quarter figures showing a record level of assets under management (AUM) and positive net client flows.
At the end of March, Jupiter reported total AUM of ?68.4 billion, a 27% increase from the prior reporting point. Management attributed the rise primarily to the completion of its acquisition of CCLA Investment Management and to net inflows of ?1.5 billion recorded during the quarter.
The company completed the purchase of CCLA on February 2, which added ?15 billion to its AUM balance. Over the reporting quarter, Jupiter's AUM rose by ?14.4 billion to reach the ?68.4 billion reporting-period high.
Client-channel performance contributed to the inflows: combined Retail & Wholesale and Institutional channels generated net inflows of ?1.7 billion. Within that total, the Retail & Wholesale channel delivered ?1.4 billion of net inflows, while the Institutional channel returned to positive territory with ?0.3 billion in net inflows. These inflows were partly offset by small net outflows from CCLA-managed strategies when excluding Money Market Funds.
On the investment capability side, four of Jupiter's core capabilities posted positive net inflows during the quarter. Demand persisted for Systematic equities and for Global equities, with flows supported by the firm's Gold & Silver strategies. UK equities attracted investor interest via the firm's UK Dynamic strategies, and European equities moved back into positive net flow territory for the first time since 2018.
Jupiter also flagged market impacts from geopolitical events in the Middle East. Management said those events materially affected markets and dampened client risk appetite during March. Despite that volatility, the company maintained positive net inflows across both the Retail & Wholesale and Institutional channels in March.
Overall, the quarter combined an inorganic uplift from the CCLA acquisition with continued client demand across multiple equity strategies, producing a record AUM figure even as markets were unsettled by geopolitical developments.
Key points
- Jupiter's AUM rose 27% quarter-on-quarter to ?68.4 billion, driven by the CCLA acquisition and ?1.5 billion of net inflows.
- Retail & Wholesale and Institutional channels together produced ?1.7 billion of net inflows; Retail & Wholesale contributed ?1.4 billion and Institutional ?0.3 billion.
- Several equity strategies - Systematic equities, Global equities (including Gold & Silver), UK Dynamic, and European equities - attracted positive flows.
Risks and uncertainties
- Market volatility linked to geopolitical events in the Middle East materially affected markets and client risk appetite in March, representing a potential headwind for flows and asset values.
- Small net outflows in CCLA-managed strategies, excluding Money Market Funds, partially offset channel inflows and may signal pockets of client redemptions within the acquired business.