* Assets under management up 7.4 pct to 43.5 bln stg
* Net mutual fund inflows 1.4 bln stg
* Shares up 3.4 pct, leading FTSE mid-cap gainers
(Adds analyst quote, share reaction, background)
By Simon Jessop
LONDON, April 26 Jupiter Fund Management
said market gains and net inflows of new money from clients
across its range of funds helped the British firm raise its
total assets under management by 7.4 percent in the first
The strong start to the year mirrors quarterly asset gains
for rivals Man Group and Ashmore, although the
market backdrop remains tough amid rising competition from
index-tracking funds and pressure on fees from investors.
Net mutual fund inflows amounted to 1.4 billion pounds ($1.8
billion) in the three months to March 31, with overall net
inflows of 1.3 billion, it said in a statement.
Combined with a 1.7 billion-pound boost from market and
currency movements, that helped raise total assets under
management to 43.5 billion pounds from 40.5 billion at the end
of December, with the news sending Jupiter's shares up 3.7
percent to 482 pence in early trading on Wednesday.
"The continued strategy to diversify our business by
product, client type and geography and delivery of strong
investment performance after fees across a broad range of
strategies has resulted in good inflows both internationally and
within the UK," Chief Executive Maarten Slendebroek said.
Jupiter said it had seen significant flows into its Fixed
Income, Absolute Return, Multi Asset and Global Emerging Market
strategies. Demand from clients in Asia and continental Europe
had been particularly strong, it said.
KBW analyst Jonathan Richards said Jupiter's strong net
inflows were 3 percent better than expected, while total assets
under management was 2 percent better.
Given a 10 percent run-up in Jupiter's share price over the
previous month, Richards said the valuation was fair and so
reiterated a 'market perform' rating.
($1 = 0.7800 pounds)
(Reporting by Simon Jessop; Editing by Greg Mahlich)