Jupiter hit by £225m outflow in Q4

Jupiter Fund Management reported "modest" net outflows of £225m for the fourth quarter of 2011 as a combination of flagging investor confidence and the loss of a segregated mandate impacted flows.

The firm said redemptions from a segregated mandate from an institutional client was the main driver behind the outflow, while poor investor sentiment also weighed on sales.

This is the first time the group has posted outflows on a quarterly basis since Jupiter floated on the stock exchange in June 2010.

Mutual funds reported outflows of £93m during the quarter as the impact of the eurozone crisis continued to affect demand for equities.

However, despite the final-quarter outflows, the group saw overall net inflows of £746m for the full year to end of December.

The group's AUM for Q4 2011 also climbed, increasing by over £500m to £22.8bn at 31 December, due to positive market movements.

Edward Bonham Carter, the group's chief executive, said: "Volatile market conditions and reduced investor confidence have led to a considerable worsening of the retail net flow environment during the second half of 2011 in both Europe and the UK, and particularly for equity products.

"Combined with the loss of a segregated mandate, this resulted in modest net outflows in the final quarter."

Elsewhere, the group also moved to close its Bermuda office as it seeks to strengthen its balance sheet.

Bonham Carter added: "We also continued to strengthen our balance sheet through operating cashflows, and it is pleasing to have traded into a positive net cash balance by the end of 2011."