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Jupiter nets £5.5bn 2017 inflow in surge to £50bn

Jupiter nets £5.5bn 2017 inflow in surge to £50bn

Jupiter Fund Management breached the £50 billion assets mark on the back of a healthy rise in inflows.

According to the fund firm’s full-year results, the asset manager saw a net inflow of £5.5 billion in 2017 versus £1 billion in the previous year.

This helped fuel a rise in assets under management from £40.5 billion to £50.2 billion.

Net revenue rose 17% to £409.5 million, with management fee income increasing from £330.2 million to £392.4 million. This contributed to a rise in pretax profit from £171.4 to £192.9 million. The firm raised the dividend 20% to 32.6p.    

Jupiter highlighted that 81% of its assets under management performed above median over three years.

It noted that all regions contributed to net inflows of the year, with offices in Italy and Spain exceeding expectations for the year.

In total its international distribution platform contributed to 75% of inflows, while UK inflows also increased with money into recently launched strategies offsetting outflows from its longstanding fund of funds strategy.

Once again fixed income was a major contributor to Jupiter’s performance as the largest source of inflows, with assets under management now standing at £13.4 billion, accounting for 27% of total assets.

Jupiter also highlighted ‘meaningful demand’ for a range of other strategies, including absolute return and global emerging markets.

Growth in the firm’s absolute return, India and Distribution funds, means Jupiter now has 13 funds with assets of more than £1 billion.

‘This has been a very strong year for Jupiter with continued growth in the business and delivery across a range of activities and all key performance indicators. Three-year investment performance reached 81% and we experienced exceptional net inflows of £5.5 billion, helping us to boost our assets under management by 24% in the year to £50.2 billion,’ Jupiter chief Maarten Slendebroek (pictured) told the market.

‘These achievements support our belief that a strategy of continued diversification drives value creation for our clients and shareholders alike. Jupiter's straightforward, agile operating model and resilient balance sheet means we are well-placed to deliver continued growth as our clients' investment needs change and grow.’

While Slendebroek expects the increase in assets under management to give the firm a good platform to build on this year, he warned of headwinds facing profit.

‘The previously announced changes to our unit trust pricing and our decision to bear all the costs of research will result in a profit headwind of around £18 million from 2018,’ he said. 

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