Jupiter’s pre-tax profit surged by 55% in 2013, despite its funds’ performance waning and margins tightening.
Profit before tax at the group climbed to £114.1 million for 2013, up from £73.6 million the year earlier.
However, Jupiter’s net management fee margin for the period was 90 basis points, below the 93 basis points recorded in 2012.
The firm attributed this to a higher proportion of its assets sitting in lower-margin Sicav and fixed income products, citing particularly strong flows into Ariel Bezalel’s Citywire Selection Strategic Bond fund and offshore Dynamic Bond fund.
Jupiter’s Sicav business now contains £3 billion, with the group’s total assets under management at a record £31.7 billion. Net inflows for 2013 hit £1.2 billion, up from £1 billion in the prior year.
Yet set against this Jupiter acknowledged that a lower proportion of its funds were outperforming. Through the three years ending 2013, 30 of the firm’s open-ended funds – representing 69% of its mutual funds by assets under management – had delivered an above-average investment performance. For the period ending 2012, 33 funds accounting for 79% of assets had been ahead of their peer group average.
On a one-year view, 32 funds were above average in 2013, representing 45% of mutual fund assets under management. In 2012, 28 funds outperformed, equivalent to 56% of assets.
Jupiter’s chief executive Edward Bonham Carter (pictured) hands over to Maarten Slendebroek on 17 March, and has left him £160 million of net cash on the balance sheet.
‘Maarten has been a key architect of [Jupiter’s] strategic direction,’ said Bonham Carter, ‘and this is the right time for him to take over as chief executive. I am delighted to be able to continue serving the business in the newly created role of vice chairman and helping Maarten grow Jupiter further in the future.’
The firm made no mention of the sale of its wealth arm in its results, and also raised its dividend per share by 43% to 12.6p.