Jupiter profits jump despite inflows shrinkage

Asset manager Jupiter has announced pre-tax profits of £70.3m for 2011, as assets under management slipped to £22.8 billion from £24.1 billion in 2010.

Edward Bonham-Carter
Edward Bonham-Carter

The pre-tax profit represented a significant rise from the £42.4m reported during 2010.

Edward Bonham-Carter, chief executive of Jupiter, said it had been a “positive” year despite “significant headwinds”.

Bonham-Carter noted a “marked retrenchment in fund sales” during the second half as the company reported net outflows in the final quarter of the year.

The firm saw a rise in net management fees in 2011, increasing from £204.7m to £226m, but warned future fees could be impacted by distributors taking an increasing share and by the retail distribution review (RDR).

Jupiter reported inflows had shrunk from £2.3 billion in 2010 to £700m in 2011, with the loss of a single segregated mandate from an institutional client.

The asset manager saw mutual fund sales slip to £528m from the £1.9 billion reported in 2010.