Jupiter assets reach new record, despite investors pulling £4bn

Jupiter Fund Management suffered net outflows of £4bn last year, despite the FTSE 250 group posting an increase in profits and a fresh record for assets under management.

Jupiter, which published its full year results on 26 February, said investor withdrawals from funds were heavily concentrated during the first three months of 2020 — a period which coincided with the onset of the Covid pandemic. After a three month period of outflows, Jupiter-branded investment strategies went on to gather new money over the next three consecutive quarters.

However funds liked to Merian, the asset management business it acquired in February last year, were responsible for outflows during the second half of the year.

READ Merian funds drag Jupiter outflows to £1bn as pandemic clobbers industry

Despite investors pulling money from funds during the year, the Merian acquisition boosted overall assets under management to £58.7bn at the end of 2020 — a 37% increase from the end of the previous year.

Pre-tax profit increased 10% to £179m, while performance fees of £73.6m were well ahead of analyst expectations.

“This is a year where we made significant progress against our strategic objectives and laid strong foundations for future growth, despite the disruptive impact on financial markets and businesses brought by Covid 19,” said Andrew Formica, chief executive of Jupiter.

READ Jupiter shake-up leads to trio of fund manager exits as Clunie, Gunn and Buhl-Nielsen head for the door

He added: “Throughout this period we also successfully completed the acquisition of Merian on time. This transformational deal has expanded our product and geographic offering while reinforcing our position as a market leader in UK retail. Financially it has exceeded our expectations, delivering greater than expected synergies and already making a significant contribution to group profits.”

To contact the author of this story with feedback or news, email David Ricketts

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