Assets under management at Jupiter Fund Management rose from £25 million (about $41 million) to £26.3 million in the three months to 31 December 2012.

The firm said the AuM increase was driven primarily by £490 million in mutual fund inflows, although this figure is down from £795 million logged in the previous quarter.

AuM is up year-on-year from £22.8 million, having increased steadily each quarter in 2012 with the exception of Q2, when it declined slightly from £24.2 million to £23.4 million.

Private client assets remained roughly the same at approximately £1.9 million, while investment trusts ended the quarter at £601 million, up from £587 million.

Cumulative overall net inflows totalled £966 million for the full year of 2012, up from a cumulative net total of £278 million for the nine months ended September 2012.

“While we have seen strong mutual funds flows in the second half of 2012, we remain cautious on the short-term outlook due to continued market uncertainties,” Jupiter said in its Q4 trading update. “Although industry conditions remain challenging, investor sentiment appears to have improved towards the end of the year.”