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Jupiter: Net flows down 70% due to ‘hiatus’ in IFA market post-RDR

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Jupiter chief executive Edward Bonham-Carter

Jupiter has reported a 70 per cent fall in net flows in the first quarter of 2013, which it blames on a “hiatus” in the IFA market post-RDR.

The firm’s net flows fell from $688m in the fourth quarter of 2012 to £209m in Q1.

Jupiter says the predicted hiatus resulted in a slow start to the year with the majority of its flows coming from its international and wealth manager channels.

Some £247m of fund inflows were offset by the loss of £56m of assets through a segregated mandate. The group also saw £9m of net flows from both its private client and investment trust businesses in the first quarter.

Jupiter chief executive Edward Bonham-Carter says: “Our increasingly diverse distribution presence enabled us to deliver net mutual fund inflows of £247m despite a hiatus in the UK IFA market following the implementation of RDR at the start of 2013.”

Jupiter’s total assets under management rose 11 per cent in the first quarter from £26.3bn to £29.1bn.

Meanwhile, Jupiter is also set to recieve £16.5m after selling its stake in Cofunds to Legal & General. The assets are likely to be received in the second quarter and will go towards reducing the group’s gross debt.

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  1. One of the biggest sectors to contribute to GDP is FS and the first provider to state the slow down is due to RDR comes forth. Interesting to see how many more start to admit the same. By the end of the year, when Tax receipts from our sector have plummeted and thousands more advisers are forced out of business or go bankrupt tryingto stay in it reduces more tax to HMRC, maybe, just maybe someone will make a decision to do something about it before the entire industry is decimated for all eternity.

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