* Value of assets under management rises to 32.2 bln stg
* Takes in 547 mln sterling in net new money
* Repeats aim to "share rewards of growth with investors"
* Shares lag in market selloff
(Updates with share price move, adds comment, dividend
By Joshua Franklin and Simon Jessop
LONDON, April 11 Jupiter Fund Management
met market expectations with its trading update on Friday,
posting fresh cash inflows and reaffirming the prospect of
future payouts, though this failed to lure buyers in a broad
The UK-based group said it took in 547 million pounds to
boost total assets under management to 32.2 billion pounds
($54.02 billion), with inflows to bond and equity funds from
both UK and international clients.
In a statement accompanying the results, Jupiter said
inflows were spread across its fixed income funds, such as
Strategic Bond and Dynamic Bond, and top-performing equity
funds, such as UK Special Situations and UK Growth.
"Jupiter delivered a further 0.5 billion pounds of net
inflows in the first quarter as we continue to expand our
distribution network and product set," said Chief Executive
Maarten Slendebroek in a statement.
"These flows came predominantly from our mutual fund
franchise, which will continue to be the main driver of growth
going forward following the recently announced disposal of our
private client operations."
Jupiter was one of the main share price winners from last
month's UK Budget, when changes to rules around pensions and
savings led some in the market to expect even more money to join
its funds as retirees would have more control over their money.
A gain of 5.5 percent in the weeks after that had all been
lost by mid-session on Friday, however, as a global stock market
retreat hit the growth-focused financials sector hard.
"The market's getting increasingly demanding, looking for
positive surprises and what we got was a very in line
statement," said RBC Capital Markets analyst Peter Lenardos.
With the bulk of analysts covering the stock, nine, holding
a "strong buy" or "buy" recommendation, an inline report was not
enough to counter the market weakness.
At 1240 GMT, shares in mid-cap Jupiter were trading down 4.4
percent in a 1.7 percent weaker FTSE mid-cap index and
against a median fall in its peer group of 2.3 percent, Thomson
Reuters data showed.
"I think it's just sentiment-led. The headline numbers look
OK but they're just getting dragged lower by the broader market
sell-off," said Prime Wealth Group senior trader Dafydd Davies.
At the start of April, Jupiter sold its private client and
charities operations to UK wealth manager Rathbone Brothers
in a deal valued at 43 million pounds.
On Friday, Jupiter said the deal would likely complete in
the third quarter and that around 30 percent of the private
client assets are held in collective vehicles run by Jupiter.
After the announcement of the Rathbones deal, analysts said
the likelihood of Jupiter returning money to shareholders had
In its statement, the firm, which is looking to expand its
business overseas, said it was confident on the growth outlook
and repeated the line from previous statements to "share the
rewards" with investors.
Lenardos forecast in a note to clients that Jupiter would
pay out a dividend of 16 pence per share in 2014 and there would
likely be a special dividend in early 2015.
($1 = 0.5961 British pounds)
(Additional reporting by Sudip Kar-Gupta; Editing by Laura
Noonan, Matt Scuffham and Andrew Roche)