Jupiter Fund's assets fall as UK budget uncertainty unsettles investors
Corrects to make clear in paragraph 8 that the outflow figure for the Value team was for the third quarter
Third quarter AUM of 50.1 bln stg vs 51.3 bln stg in second quarter
Shares down about 1.6%
Oct 11 (Reuters) -British asset manager Jupiter Fund Management JUP.L reported a drop in assets under management in the third quarter, with outflows of 1.6 billion pounds ($2.09 billion), in a sign that uncertainties around potential tax changes in the UK budget later this month is affecting investor confidence.
Finance minister Rachel Reeves has flagged that some taxes will increase in the budget and this has overshadowed hopes the government can revive growth and investment to fix the economy.
"Overall flows remain consistent with our expectations as set at the start of the year, despite no material improvement in client sentiment," Jupiter said on Friday.
Jupiter reported assets under management of 50.1 billion pounds, as of Sept. 30, down from 51.3 billion pounds at the end of June.
Analysts at Panmure Liberum had expected assets under management of 49.7 billion pounds.
Jupiter's shares were down 1.6% at 86.2 pence in early trade, having fallen nearly 7% so far this year.
Another UK asset manager Liontrust Asset Management LIO.L also flagged client uncertainty ahead of the new budget as it reported lower second-quarter assets under management and advice (AuMA) on Thursday.
Jupiter said it had had 5 billion pounds of overall net outflows in 2024 year to date. In the third quarter, 1.6 billion pounds of net outflows came from Jupiter's Value Equities team, where star manager Ben Whitmore announced his departure at the start of the year.
Whitmore is staying on until at least Oct. 31 to ensure a smooth handover, Jupiter had said in June.
Panmure Liberum analyst Rae Maile said the company enjoyed an "Indian Summer", attracting 400 million pounds in inflows from its Indian equities products in the quarter.
"The question is the degree to which Indian and Asian equities can continue to carry the group with respect to overall flows into the new year," Maile added.
($1 = 0.7665 pounds)
Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and Jane Merriman
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