Savers with­draw £2bn from Jupiter As­set Man­age­ment

The Daily Telegraph - Business - - Business - By

Michael O’Dwyer

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.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.