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Jupiter: net flows fall 70% due to IFA ‘hiatus’

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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 after the 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 Q1.

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 the RDR at the start of 2013.”

Jupiter’s total assets under management increased by 11 per cent in Q1 from £26.3bn to £29.1bn.

Meanwhile, Jupiter is also set to receive £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.

Bloomsbury Financial Planning partner Jason Butler says: “More investors and advisers are becoming wise to overpriced retail funds and that would explain some of the drop in Jupiter’s inflows.”

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