Further expansion planned as Jupiter reports strong full year inflows 29 February 2016

Further expansion planned as Jupiter reports strong full year inflows

A more than 100% increase in net inflows for the full year to 2015, saw Jupiter Fund Management report a rise in total assets under management to £35.7bn from £31.9bn.

According to the fund manager the increase in inflows was driven by the build-out of its international network, in particular the establishment of a distribution footprint in both Asia and Europe, that saw overseas clients responsible for more than half of the firm’s mutual fund gross inflows for the year.

Jupiter’s mutual fund business saw £2.1bn in inflows, up from £1.4bn in 2014, with flexible fixed income and European equity the most popular strtaegies.

The firm plans to continue this expansion in 2016, said Maarten Slenderbroek, Jupiter CEO.

Not only does it plan to open offices in Italy and Spain, it is also launching an Asian Income Fund in March for recent hire Jason Pidcock and, later in the year, will launch an international version of its Absolute Return Fund.

“We also have plans to launch a diversified global environmental/ecology fund, building on Jupiter's long-established record in socially responsible investing,” said Slenderbroek.

For the year, Jupiter reported net revenues of £329.5m, up 9% year-on-year. On the back of higher management fees on on its mutual funds business, which more than outweighed the loss of revenues from the sale of its private client contracts.

Performance fees rose£9.7m to £14.6m, primarily due to excellent performance in a single fund, the firm said.

Net management fee margin for the year was steady at 88 basis points. But, the firm said: “This was distorted by the loss of lower margin assets, the closure of several sub-economic funds, and the sale of private client contracts and a segregated mandate loss in 2014.”

And, it added, it expects this margin to continue to decline slowly over time, “due to the continued expansion of both our international presence and the fixed income component of our AUM”.