(Alliance News) - Jupiter Fund Management PLC on Friday hiked its dividend and said its Merian Global Investors acquisition had helped assets under management reach a new record in 2020.
The FTSE 250-listed fund manager said its AUM hit a "record high", rising 37% to GBP58.7 billion as at December 31 from GBP42.8 billion the year before after its GBP370 million acquisition of Merian at the start of July 2020, introducing GBP16.6 billion of AUM.
Net outflows shrank 11% to GBP4.0 billion from GBP4.5 billion.
"Market volatility weighed heavily on investor sentiment resulting in net outflows for the year, gross inflows were robust at GBP16.5 billion, and, pleasingly, Jupiter branded strategies recorded three consecutive quarters of positive net flows," said Chief Executive Andrew Formica.
Pretax profit for 2020 was GBP132.6 million, down from GBP151.0 million in 2019. Although net revenue was higher at GBP457.8 million from GBP379.1 million, administrative expenses rose to GBP312.1 million from GBP228.5 million and hurt profit.
Jupiter Fund Management paid dividends totalling 20.1 pence per share in 2020, including a 17.1p ordinary dividend and 3.0p special dividend, up 18% from the 17.1p per share dividend the year before.
Formica said: "We have selectively added to our product range and expanded our environmental, social and governance investment capabilities, where we have a strong heritage. We have also made progress with our international reach through developing our partnership with NZS Capital in the US and building upon Merian's relationship with Ping An in China, deepening our access to the largest and fastest growing investment markets in the world.
"Against a backdrop of strengthening investor sentiment and improved momentum as we turn the corner in the battle against Covid-19, I am confident that Jupiter is strongly positioned for future growth."
Additionally, Jupiter Fund Management said its senior independent director, Jonathon Bond, will not seek re-election at its 2021 annual general meeting. He will be succeeded in the role by Roger Yates. Yates is a current non-executive director at the company and chair of the remuneration committee.
Shares in Jupiter Fund Management were up 2.4% at 299.00p in London on Friday morning.
By Anna Farley; annafarley@alliancenews.com
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Jupiter Fund Management (JUP)
