Jupiter gains higher inflows

fund inflows increaseJupiter Asset Management saw a large increase in fund inflows last year, reflecting a strong 2017 for the wider European funds industry.

Inflows from Spain and Italy “exceeded” expectations, the company said as it reported its full-year results on Tuesday.

London-based Jupiter saw net inflows rise to £5.5 billion (€6.25 billion), up from £1 billion the year before, as investors placed a record amount into investment funds across the industry in 2017.

The flows helped the company boost its assets under management (AUM) to £50.2 billion, a 24% rise, while profit before tax increased by just over £21 million to £192.9 million.

Maarten Slenderbroek, chief executive, 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.”

These indicators included investment performance above the median over three years for 81% of mutual fund AUM.

The cost-income ratio was 55%, which the CEO described as “steady”.

International distribution accounted for three-quarters of net inflows and was done without the need for “significant additional resources” in other countries. Distribution in the UK also grew as inflows to investment strategies launched in recent years more than offset outflows from the firm’s longstanding fund of funds strategy, Slenderbroek said.

Fixed income, which is 27% of Jupiter’s AUM, was the largest contributor to net inflows and has been for several years.

Jupiter has previously announced that absorbing the costs of securities research onto its balance sheet in line with the trend prompted by capital market reforms will provide a roughly £18 million drag on profits from this year.

Last year, Berenberg, a broker, predicted a “challenging year ahead” for Jupiter, in part due to its decision to pay for broker research.

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