Bonuses rocket for Jupiter staff

STAFF at fund giant Jupiter received average bonuses of just under £150,000 last year as it cashed in despite the stock market turmoil, writes James Salmon.

While nervous investors have withdrawn huge sums of money from rival firms including emerging market specialists Aberdeen and Ashmore, Jupiter bucked the trend with net flows in to its funds of £1.9bn last year.

This, combined with the strong performance of many of its funds, caused assets under management to increase 12pc to £35.7bn. Profits edged up by 2.9pc. Shareholders joined in the firm’s success, with the dividend rising 29pc to 25.5p.

But the big winners were fund managers and staff. In common with its rivals Jupiter keeps what fund managers are paid a closely-guarded secret. But its annual results showed that £66.4m in cash and longterm shares bonuses were distributed among its 450 staff. This equates to £147,555 per person, including £101,111 in cash. One of the highest earners is likely be Alexander Darwall, who runs Jupiter’s successful European Opportunities Trust.

Jupiter generated £14.6m in performance fees last year, compared to £4.9m in 2014. It said this was ‘nearly all earned by a single fund’, the Jupiter European Opportunities Trust.

Performance fees, which are levied on top of annual charges if a fund does particularly well, have been criticised by consumer campaigners.

Gina Miller, founder of the True and Fair Foundation, which campaigns for fairer and more transparent fees, said: ‘The worst thing about them is they don’t work both ways. Savers are not reimbursed if the fund does badly.’

The investment industry has also come under fire for excessive pay, with bosses group the Institute of Directors describing it as ‘ripe for investigation’.