Aggregated fees mean rising margins for Jupiter

Calculating feesJupiter Fund Management’s half-year results this year point to rising margins for the firm, despite the expensive implementation of a “simplified” fee structure. In October last year, the firm announced it intended to introduce aggregate operating expense fees in its Sicav fund range, and the structure was duly implemented in December. Implementation was costly, helping push underlying administrative costs to £54.4 million (€64.7 million) in the first six months of this year, up from £45.6 million year-on-year. The Group’s net management fee margin for the period was 87.6 basis points, up by 0.6 basis points on the second half of 2015. Management fees accounted for 92 per cent of revenue in the first half of 2016, compared with 88 per cent last year. However, Jupiter expects net management fee margins to decline by up to two basis points annually from next year, due to product mix reasons. The new structure also meant net management fees increased to £156.5 million, up from £149.2 million year-on-year. The first six months of this year has been a turbulent period for the UK asset management industry, with some funds posting their highest withdrawals since the financial crisis. Despite this, Jupiter posted modestly positive H1 results, with inflows of £600 million, assets under management increasing to £37.5 billion and pre-tax profit tax rising to £86.6 million – although chief executive Maarten Slendebroek said “heightened volatility” lay ahead. The company also said there could be legal restructuring of continental European operations if a trade deal isn’t reached between the UK and EU. ©2016 funds europe

Executive Interviews

INTERVIEW: ‘It is what it is’

Dec 22, 2016

Jeff Conway, regional chief executive for State Street, talks to David Stevenson about regulation and how the firm will handle the challenge of tech disruption.

MASHREQ CAPITAL INTERVIEW: A new direction

Dec 22, 2016

The new chief executive of Mashreq Capital talks to George Mitton about fund launches, management style and why he is the right person for the job.

Roundtables

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.

EMERGING MARKETS ROUNDTABLE: The re-emergence

Jan 03, 2017

2016 was the year emerging markets returned to the spotlight, as they regained ground since the 2012 sell-off. Funds Europe asked our panel if this appetite will persist in 2017.