Jupiter Fund Management inflows increased five-fold in 2017, despite outflows from the Merlin portfolios, a trading update published this morning shows.
The quarterly update revealed net inflows to 31 December were £600m taking 2017 total inflows to £5.5bn. That compares to £1bn net inflows in 2016.
Mutual funds attracted £458m over the quarter, taking AUM in that category to £43.7bn. Total group AUM increased 24 per cent year-on-year to £50.2bn.
Chief executive Maarten Slendebroek says inflows into absolute return, fixed income and multi-asset were partially offset by outflows in the fund of funds range, which is led by John Chatfeild-Roberts and known as the Merlin range.
Jupiter’s investment trust business also saw net outflows in Q4 following the closure of the Dividend & Growth Trust in November.
Slendebroek says a “proportion” of its investors chose to transfer into the £65.3m UK Growth Trust. The investment trust’s share price and net asset value have underperformed the IA Global sector over one, three and five years, according to FE data.
Across products, all regions delivered net inflows with most flows coming from Continental Europe. Slendebroek says they attracted new inflows from Thailand and Latin America.
He adds that they have been diversifying their client base for their absolute return strategy.
The asset manager launched four funds over 2017: the Global Emerging Markets Corporate Bond fund in March; Emerging and Frontier Markets Income trust in May; Global Emerging Markets Short Duration Bond fund in September; and the Global Levered Absolute Return fund in October.
Slendebroek says Jupiter’s investment outperformance underpins positive net inflows for the group.
He says: “In 2018 we aim to build on the momentum we have seen in 2017 with further business diversification alongside investment in maintaining our operating model, supported by a strong and sustainable balance sheet.
“This approach provides resilience to our business and leaves us well-placed to deliver positive outcomes for our clients and value for our shareholders.”