Jupiter has reported a 13 per cent increase in pre-tax profits for 2017, taking its yearly total to nearly £193m.
The asset manager raked in a total of £410m in revenues, with a net management fee margin of 85 basis points on average assets under management across the year of £46.2bn.
Jupiter paid out £42m in cash bonuses to staff.
Fixed income was the largest contributor to net inflows, which offset outflows from the firm’s fund of funds strategy.
However, the firm notes that changes to its unit trust pricing, combined with the decision to absorb the cost of research under Mifid II, with put a dent of around £18m in profits from this year.
Jupiter Merlin portfolios hit by £223m outflows
The results show Jupiter currently makes £13.6m in so-called ‘box profits’, which result from the bid-offer spread between units, intended to cover transaction costs in dual-priced funds. Jupiter announced it would be giving these up ahead of a potential ban the FCA is consulting on as part of its asset management market study.
The FCA study showed that, based on a sample of asset managers, average profit margins in the industry remain around 35 per cent, compared to a 16 per cent average for the FTSE as a whole.
Jupiter chief executive Maarten Slendebroek says: “The resilience of our current operating model and balance sheet strength mean that, despite the continued disruptions and uncertainties that exist around us, we are well placed to continue our growth trajectory and look for new areas of opportunity.”
