Jupiter is flying high after investors flock in

Jupiter Fund Management, which floated on the stock market two months ago, saw its shares hit a high today as it reported very strong first-half results.

Chief executive Edward Bonham Carter said: "Given the backdrop of falling equity markets and continuing volatility, a rise of 64% in underlying earnings and £814 million of net new money is pretty good."

Aimed mainly at retail punters, Jupiter saw good demand in particular for Chinese and Indian funds and for its Fund of Funds as investors saw little reason to hold cash while interest rates remain so low.

Six out of 10 of Jupiter's unit trusts and mutual funds are above their benchmarks over the past three years. Bonham Carter is cautious about investment prospects.

He said: "In the medium term markets look pretty range bound but with some significant bouts of volatility along the way.

"In the short term they look quite frankly schizophrenic, swinging between the total optimists and the pessimists who are almost ready to slit their wrists."

There is no interim dividend with Jupiter set to declare its maiden payout alongside its final results in the spring.

Jupiter's staff, most of whom are also shareholders, saw their bonus pool almost double to £17 million on the back of the first-half strong earnings.

Shares in the group, which were offered for sale at 165p in mid-June, rose 3¾p to 205¾p.

The flotation was run by JPMorgan Cazenove and Numis, who were today appointed as joint brokers to the company.