27th Feb 2014 11:44
LONDON (Alliance News) - Jupiter Fund Management PLC Thursday reported a 55% increase in 2013 pretax profit and raised its dividend, after stronger net inflows boosted revenues to make sure outgoing Chief Executive Edward Bonham Carter departs the fund manager on a high after 14 years in charge.
Jupiter Fund Management reported GBP114.1 million pretax profit for 2013, compared with GBP73.6 million in 2012, boosted by an 18% increase in net revenue which outpaced the 11% increase in administrative expenses to GBP142.1 million. The higher increase in pretax profit was also a result of lower finance costs and the GBP6.7 million gain made from the sale of Jupiter's holding in Cofunds to co-investor Legal & General Group PLC.
The total 2013 dividend was raised by 43% to 12.6 pence.
Assets under management, which directly benefits revenues, rose to GBP31.7 billion, up from GBP26.3 billion, after strong net inflows of GBP1.2 billion over the year.
Bonham Carter said Jupiter's growing distribution network drove net inflows.
"Our position in international markets has continued to strengthen, with a growing proportion of fund sales being sourced from our distribution networks across Europe and Asia. During 2013, we actively built this local presence, adding strength to our capabilities in Germany and Hong Kong and hiring sales resource for the Nordics. We now have offices in Frankfurt, Munich, Zurich, Singapore, Sweden and Hong Kong, with additional markets, such as France, covered by third party relationships," the departing chief executive said in a statement.
"In the 14 years I have been chief executive, Jupiter has delivered consistent investment outperformance, increased its distribution capabilities and, since the initial public offering in June 2010, created significant value for shareholders," Bonham Carter said in a statement.
Bonham Carter, who is the brother of actress Helena, led Jupiter through its management buyout in 2007 and the subsequent initial public offering in 2010.
Maarten Slenderbroek was announced as Jupiter's new boss back in December, and will take over on March 17. He joined Jupiter from BlackRock in September 2012 as distribution and strategy director.
Jupiter shares were Thursday quoted up 3.7% at 416.80 pence, one of the biggest rises on the FTSE 250.
By Samuel Agini; [email protected]; @samuelagini
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