Jupiter sees £1bn inflows despite ‘a tough year’ for the UK

Jupiter Fund Management has seen net inflows of £1bn in 2016 as international diversification compensated for “a tough year in the UK”, the group says.

In its full year result as of 31 December, the asset manager says inflows were strongest in the first and third quarters of last year, contributing to a 13 per cent increase in assets under management.

Assets under management surged to £40.5bn in 2016 from £35.7bn the previous year.

The group attributes positive flows to its neutral and total return strategies as well as lower sterling movements, mostly helped by the firm’s international distribution, which contributed to half of gross inflows and 100 per cent of net inflows. However, the firm’s inflows halved from 2015 when they were closer to £2bn.

Profits before tax also saw a “healthy growth” of 4 per cent to £171.4bn from £164.6bn in 2015, the group says.

Net revenue increased by 6.6 per cent to £351m, while operating costs rose by 11.2 per cent to £182m.

Jupiter chief executive Maarten Slendebroek says: “In a year which many have described as challenging, I am pleased that Jupiter continued to deliver growth for shareholders and value for clients. Investor sentiment was affected by a number of macro events, but against this backdrop we saw inflows alongside healthy growth in profits.

“We continue to execute on our strategy, successfully launching new funds and products and opening two new international offices. In 2017 we will build on this through our ongoing investment in the people, systems and infrastructure which will help underpin our future growth.”

Separately, Jupiter has also decided to take “a consistent approach” to the way it pays for research, passing all the cost to the firm from 2018 and with no change in the management fee. It estimates research will add £5m to its costs from 2018.

Elsewhere, Slendebroek says 2017 will be a year of “operational heavy lifting” but says objectives at the group will not change.

He says: “Our first objective, to beat the benchmark and competition after all fees, is unchanged. This resonates with clients and with extraordinary investment talent. Our investment in 2017 will ensure we can continue to grow in the UK and internationally for years to come.”