Jupiter increases dividend on improved pre-tax profit

Jupiter Fund Management saw pre-tax profits jump in 2011 despite falls in both AUM and net inflows, and has hiked the dividend on its shares by 13%.

The group has also moved to a net cash position on its balance sheet as it makes progress paying down its IPO-related debt.

Jupiter saw net inflows of £700m, a significant fall from the £2.3bn seen the previous year.

However, pre-tax profit jumped 66% from £42.4m to £70.3m, beating analysts’ expectations of £69.4m. John Chatfeild-Roberts’ Merlin multi-manager range saw inflows, as did the Global Convertibles offering.

Funds under management fell 5% from £24.1bn for the year ended December 2010 to £22.8bn.

The group will pay a 5.3p dividend per share for 2011, up from 4.7p for 2010, representing a 13% increase.

The asset manager reported net revenues of £248.5m for the year to December 2011, an increase of 8% compared to the £230.5m recorded in 2010, and in line with analysts’ forecasts.

Management fees contributed the majority of net revenues, but the group said it expects net management fee margins to decline slowly over time as distributors look to take an increasing share of fees and the effects of RDR take shape.

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