Jupiter Fund Management net inflows halve, though profit and AUM rise

Jupiter Fund Management pre-tax profit and assets under management increased in 2016, although net inflows halved due to what it said was a challenging market environment for funds.

For 2016, profit before tax increased 4% to £171.4m, compared to the previous year, although there was a slight 0.42% fall in revenue to £401.8m.

Net inflows nearly halved to £1bn, which Jupiter said was “encouraging” given the challenging market environment and against “a backdrop of variable markets and dampened investor sentiment” and many active managers seeing net outflows.

The FTSE 250 company said that these market conditions, which benefited its market-neutral and total return strategies, alongside favourable exchange rate movements, contributed to a 13% rise in assets under management to £40.5bn.

Meanwhile, net management fees increased 10% to £330.2m and the company declared a total dividend of 27.2p, up 7%.

Chief executive Maarten Slendebroek said: "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."