Jupiter's profits up against drop in inflows
Joe McGrath, 24 August 2010
Jupiter Fund Management today unveiled pre tax profits of £14.6 million for the six months to 30 June despite fund inflows dropping £103 million on the same period last year.
Assets under management increased to £19.8 billion from £15.5 billion at this time last year which the company related to a successful new business generation programme.
Edward Bonham Carter, chief executive of Jupiter, said the newly listed investment house had overcome a volatile market in order to achieve satisfactory results.
He explained, ‘This was drive by £873 million of net flows into our mutual fund range, particularly from our fund of fudns and absolute return products and an increased presence within European distribution channels.
‘Against a challenging backdrop of falling equity markets and continued volatility, Jupiter has had a strong first half of the year culminating in the Group’s successful IPO and the end of June.’
Despite the drop in fund inflows, Bonham Carter said investment performance across the fund range remained strong.
He added, ‘Net revenue for the period was £111.7 million, 40 per cent ahead of the same period in 2009. This was mainly due to an increase of £29 million in net management fees.
'The net management fee margin for the period was 99 basis points. Net initial charges and commissions increased by £2.3 million to £11.0 million, reflecting increased levels of gross sales and redemptions, as compared to the first half of 2009, driving both higher front end fees and higher box profits.'
The asset manager said performance fees of £1 million continue to be modest, at just under one per cent of net revenues, although the calculation dates on relevant funds are biased towards the second half of the year.
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