Savers withdraw £2bn from Jupiter Asset Management
INVESTORS pulled a total of £2bn from money manager Jupiter in the first half of the year as a slump in the value of its assets hit fee income.
First-half pre-tax profits were halved to £41m and management fees dropped to £161m, nearly 12pc lower than the same period last year. Andrew Formica,
Jupiter’s chief executive, said the past six months had been tough for the whole industry.
He said: “Although we suffered a significant fall in assets under management due to both outflows and markets in the first quarter of the year, the second quarter has seen a return to moderate inflows and a partial recovery in asset prices.”
Jupiter now has £39.2bn of assets under management compared to £45.9bn a year ago.
The figures do not include Merian Global Investors, which became part of
Jupiter on July 1 following a £390m swoop for the business.
Merian, which has been plagued by outflows, lost a further £4.3bn of net business in the six months to June.
A loss of £1.4bn on the value of its investments took assets under management to £16.7bn.
Assets under management also dipped at Rathbone Brothers, falling 2pc to £49.4bn in the first half of the year. The firm enjoyed inflows of £1.3bn and reported pre-tax profits of £27m, up from £20m in the first half of 2019. Rathbones, which specialises in advising high net worth individuals and charities, maintained its 25p interim dividend.
Meanwhile, Perpetual Income and Growth Investment Trust (PIGIT) announced it has found a new investment manager after the high-profile firing of Mark Barnett in April.
Invesco and Mr Barnett, the former protégé of fallen stock picker Neil Woodford, were dismissed after a run of poor performance.
PIGIT announced that it will merge with Murray Income Trust to create an investment trust with more than £1bn under management.
The combined entity will be managed by Charles Luke at Aberdeen Standard Investments, who is Murray Income Trust’s current manager.