Jupiter Fund Management on Friday announced a rise in first-half profits as assets under management (AUM) hit an all-time high.
In the six months to the end of June, statutory profit before tax rose to £ 57million, from £ 40.8million in the same period a year ago, with profit before tax under Underlying up 38% to £ 78.2million. Assets under management increased 54% to a record £ 60.3 billion and gross flows “remained strong” to a record £ 9.6 billion.
Nonetheless, total net outflows in the first half of the year reached £ 2.3 billion, up from £ 2 billion in the first half of 2020. This included net mutual fund outflows of £ 1.7 billion and £ 0.6 billion of separate mandates.
Jupiter said cash outflows were concentrated in a few areas, often where performance was strong but the asset class was not in demand by clients. European growth and UK stocks have fallen out of favor and both registered further buybacks.
Managing Director Andrew Formica said: “I am delighted to report a solid set of results and strong investment performance for our clients, who are at the heart of everything we do.
“We achieved record gross inflows for the period, with a number of strategically important products performing very well, highlighting our positive momentum as we enter the second half of the year.
“Having said that, it is disappointing to see net exits over the half year, which focused on a small number of strategies and were primarily driven by a shift in asset allocations. The medium and long term investment performance of these funds remains solid. “