Jupiter Fund Management (Jupiter) reported statutory pretax profit of £151m ($195m) in 2019, a 16% drop from the £179.2m earned in 2018.
Underlying profit before tax totalled £162.7m, down 11% from £183m. In addition, total dividends per share for Jupiter were valued at 17.1p in 2019, a staggering 40% down from 28.5p in 2018.
However, assets under management (AuM) remained stable with very little change and totalled £42.8bn.
There was strong investment performance as 72% of mutual fund AuM were above median over three years. Furthermore, 14% of segregated mandates and investment trusts were above their benchmarks over three years.
Andrew Formica, chief executive, said: “Jupiter delivered a resilient performance in 2019 despite a challenging backdrop. It was another year of strong investment performance, with 72% of mutual fund assets under management outperforming over three years. It was pleasing to see a strong return to net inflows for our Fixed Income strategy, with the overall net outflows in 2019 being almost entirely the result of the planned departure of a key manager in our European Growth strategy. Our assets under management and net management fee margin remained stable year on year, although a lower average assets under management resulted in a drop in net management fees and also our profitability.”
Jupiter board changes in 2019
Bridget Macaskill, a non-executive director and chairman of the remuneration committee, will step down and not seek re-election as the 2020 AGM.
Roger Yates, also a non-executive director and member of the committee, will be appointed chairman of said committee on 21 May 2020.
Liz Airey, chairman of Jupiter, said: “Bridget has made a huge contribution to the Board and Jupiter’s development over the last five years and we would like to extend our sincere thanks for the wisdom and guidance she has given us as well as her dedication to Jupiter’s business.”
Earlier in February, Jupiter signed an agreement to purchase local rival Merian Global Investors in a £370m deal.
The deal, which awaits shareholder and regulatory nod, is said to lead to the creation of the second-largest retail fund manager in the UK.
The merged entity will have over £65bn in assets and adopt the Jupiter brand.