Jupiter Fund Management reported a fall in assets under management for the three months to 30 September of 4.3 per cent to £31.7 billion ($50.8 billion), down from £33.1 billion, following the successful sale of its private client operations.

Jupiter Fund Management reported a fall in assets under management for the three months to 30 September of 4.3 per cent to £31.7 billion ($50.8 billion), down from £33.1 billion at the end of June, following the sale of its private client operations.

Jupiter completed the sale of its private client operations to Rathbone Investment Management on 26 September. Gross consideration received will be between £39.4 and £39.6 million, with estimated net proceeds after costs and tax of around £22 million, which will be distributed to shareholders after the 2014 full year results are released, Jupiter said in its interim statement.

The firm reclassified 30 per cent of its assets under management into other categories as these assets remain under management after the sale.

It said that net mutual fund inflows were £231 million in the three months to 30 September 2014, while assets held in mutual funds totalled £26.4 billion. Top selling funds included the Dynamic Bond, Strategic Bond and Income Trust. Overall net inflows for the quarter were £218 million.

Jupiter said the result was held back by £50 million of outflows following its decision to close the Cash and Global Energy unit trusts in the fourth quarter as it believed they would not be profitable. It also confirmed plans to close the 234 million Second Split investment trust in the fourth quarter as it reaches the end of its life.

"This has been a busy period for Jupiter with the completion of the sale of its private client operations, an important strategic step which allows us to increase our focus on our mutual fund franchise. This part of the business continues to be the main driver of growth, contributing a further £0.2 billion of net inflows this quarter,” said chief executive Maarten Slendebroek.

Jupiter expects administrative expenses to increase by £5 million per annum from 2015 onwards following its agreement for a 20-year lease for The Zig Zag Building in Victoria signed on 24 September.