Jupiter Fund Management announced a record high for assets under management (AuM) of £58.7bn ($81.63bn) across 2020, according to the firm’s annual results for the year ended 31 December 2020.
Of the firm’s mutual fund assets under management, 70% performed above the median for the last three years.
Underlying profit before tax also increased by 10% to £179m, whilst statutory profits before tax decreased by 12% to £132.6m. However, this fall was attributed to an increase in costs following the firms acquisition of Merian Global investors.
Commenting on the acquisition, which introduced £16.6bn of AuM on 1 July 2020, CEO Andrew Formica, said: “This transformational deal has expanded our product and geographic offering while reinforcing our position as a market leader in UK retail.
“Financially it has exceeded our expectations, delivering greater than expected synergies and already making a significant contribution to Group profits.
“While more time is needed to stabilise flows from certain products, these near-term challenges were well-anticipated and factored into the terms of the deal, giving substantial protection to our shareholders.”
Turning to the impact of the pandemic, Formica explained: “Market volatility weighed heavily on investor sentiment resulting in net outflows for the year, gross inflows were robust at £16.5 billion, and, pleasingly, Jupiter branded strategies recorded three consecutive quarters of positive net flows.
Internally, Formica said he was “acutely aware of the impact of the pandemic on our people’s mental and physical wellbeing”. Subsequently, Jupiter launched several initiatives to support colleagues, including financial support to improve home working and for those with caring responsibilities.
In response to the increasing engagement with the climate crisis and a green recovery, Jupiter also expanded its ESG investment capabilities and bolstered its product range.
Formica concluded: “This is a year where we made significant progress against our strategic objectives and laid strong foundations for future growth, despite the disruptive impact on financial markets and businesses brought by Covid-19.
“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.”