Jupiter profit rises as AuM, net inflows grow

FTSE 250 asset manager Jupiter Fund Management reported a rise in full-year profit on Tuesday as net inflows and assets under management grew.

In the year to the end of December 2017, pre-tax profit was up 13% to £192.9m, while net inflows increased to £5.5bn from £1bn the year before, helping to push assets under management to £50.2bn from £40.5bn.

Meanwhile, net revenues were up 17% on the year to £409.5m as net management fees rose to £392.4m from £330.2m and underlying earnings per share came in at 34.2p from 29.4p.

The company declared a total dividend of 32.6p per share, up 20% on the previous year and including a special dividend of 15.5p per share for 2017, compared to 12.5p in 2016.

Chief executive Maarten Slendebroek said: "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 £5.5bn, helping us to boost our assets under management by 24% in the year to £50.2bn.

"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."

Liberum said this was "a strong set of results", slightly ahead of its forecasts. The brokerage had pencilled in AuM of £48.7bn, pre-tax profit of £189.4m and adjusted EPS of 34.1p. The dividend per share was also ahead of its forecast of 28.3p

"We believe it is one of the best positioned asset managers in the UK, with 26% upside to our target price (ETR 32%) and therefore remains a buy," it said.

At 1000 GMT, the shares were down 0.5% to 524.40p.