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Jupiter Fund Management profits rise as AUM hit record high

By Michele Maatouk

Date: Friday 30 Jul 2021

Jupiter Fund Management profits rise as AUM hit record high

(Sharecast News) - Jupiter Fund Management reported a jump in first-half profit on Friday as assets under management (AUM) hit a record high.
In the six months to the end of June, statutory pre-tax profit rose to £57m from £40.8m in the same period a year ago, with underlying pre-tax profit up 38% at £78.2m. AUM increased 54% to a record £60.3bn and gross flows "remained strong", growing to a record £9.6bn.

Nevertheless, total net outflows in the first half were £2.3bn compared to £2bn in H1 2020. This comprised net outflows from mutual funds of £1.7bn and from segregated mandates of £0.6bn.

Jupiter said outflows were concentrated in a few areas, often where performance has been robust but the asset class has not been in client demand. European Growth and UK equities remained out of favour and both saw further redemptions.

Chief executive Andrew Formica said: "I am pleased to report a resilient set of results and strong investment performance for our clients, which is central to everything we do.

"We have reported record gross inflows for the period, with a number of strategically important products performing very well, which highlights our positive momentum going into the second half of the year.

"That said, it is disappointing to see net outflows for the half year, which were concentrated in a small number of strategies and have been driven primarily by a shift in asset allocations. The medium to long term investment performance of these funds remains strong."


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