The acquisition of Merian brought with it GBP16.6bn of assets under management (AUM). Although Jupiter saw net outflows of GBP4bn in 2020 (versus net outflows of GBP4.5bn in 2019), AUM ended the year 37% higher at GBP58.7bn compared to GBP42.8bn at the end of 2019.
Net management fees in 2020 totalled GBP384.0mln, up 4% from GBP370.0mln in 2019.
Statutory profit before tax, which includes costs related to the Merian acquisition, fell 12% to GBP132.6mln from GBP151.0mln in 2019 while underlying profit before tax rose 10% to GBP179mln.
A final dividend of 17.1p has been proposed plus a special dividend of 3p, making the total dividend for the year 20.1p, equivalent to 70% of the underlying earnings per share for 2020.
Andrew Formica, the chief executive of the fund management firm, said the Merian acquisition had exceeded Jupiter’s expectations, delivering larger than expected synergies.
“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,” Formica said.
“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,” Formica said.
Shares in Jupiter were up 5.4% at 307.8p in early deals.