Jupiter Fund Management on Friday reported an increase in full-year earnings as assets under management increased, but net outflows continued.
In the year to end December, underlying pre-tax profit rose 21% to £216.7m, with statutory pre-tax profit 39% higher at £183.7 million pounds. Assets under management edged up 3% to a record high of £60.5bn at year-end and gross flows “remained strong”, unchanged at £16.5bn.
However, net outflows were £3.8bn, down from £4bn in 2020. Jupiter said that was disappointing. Client buyouts came mostly from those strategies that are currently in areas where client demand is lower, he said.
This included UK equities, which saw £1.6 billion in net outflows, and European growth, which saw £0.9 billion in net outflows. The Merlin range continued to see cash outflows of £0.6bn and the Systematic range saw £1.3bn of net redemptions, mostly from the North American fund.
Underlying earnings per share increased by 10% to 31.7 pence and statutory EPS increased by 30% to 27.6 pence
Managing Director, Andrew Formica, said: “In another challenging year, Jupiter delivered strong revenue and profit growth. Our first full year results after the acquisition of Merian demonstrate the strength of the combined business – both diversifying our offering and positively impacting earnings.”
He said the group was seeing progress in product areas such as sustainable and international equities, in its partnerships with NZS Capital in the US and as it considered entering the Australian market.
“While it is disappointing to report sharp outflows, these remain focused on strategies where client demand is still weaker in the market, such as UK and European equities, and in areas of greater concern. structural,” he said.