Jupiter saw £3.8bn of outflows in 2021, the first full-year results since its acquisition of Merian, however its assets under management increased 3% to reach a record year-end level of £60.5bn.

Andrew Formica, pictured above, chief executive of Jupiter, said it was "disappointing" to report net outflows.

"These remain focused in strategies in which there is ongoing weaker client demand across the market, such as UK and European equities, and within areas with more structural issues," he said in a stock exchange statement.

Net outflows were down from 2020, when the asset management business experienced £4bn of outflows.

The company noted that strong investment performance in rising markets enabled it to benefit from market returns in excess of these flows, at £5.6bn.

As at 31 December 2021, 58% of the firm's mutual fund assets outperformed their peer group over a three-year period, down from 70% the previous year.  

The decline from the prior year was "due to two funds which marginally moved into the third quartile at the very end of December 2021," Jupiter said.  

The company also noted it had earned "significant gross performance" fees in £113.0m in 2021, up from £73.6m the year before.

"These were predominantly generated through strong performance in the Chrysalis Investment Trust, which specialises in late-stage private asset positions, along with a number of smaller contributions from other funds," the statement said.

However, the average net management fee margin reduced from 79bps in 2020 to 76bps for 2021. This reduction was "due to the change in business mix, driven by the full-year impact of the acquisition of the Merian business, which had a lower average margin".

Profit before tax and exceptional items increased 21% to £216.7m, with statutory profit before tax of £183.7m after the deduction of exceptional items of £33.0m.

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The board announced an unchanged final dividend of 9.2p per share, bringing its total dividend for the year to 17.1p per share.

Formica said: "In another challenging year, Jupiter has delivered strong growth in both revenues and profits. Our first full-year results following the acquisition of Merian demonstrate the strength of the combined business - both in diversifying our offering and positively impacting profits.

"We have reported another year of strong gross sales. Delivering for our clients remains a key priority and it is encouraging to see continued inflows into newly launched products, demonstrating that we are taking the right actions as we continue to adapt to client needs, supported by strong long-term investment performance."

He added that "although the short-term outlook is driven by geo-political events," the firm has the "right foundations in place".  He concluded that Jupiter's "investment is focused on expanding areas of strategic importance, such as our sustainable investment offering, institutional expertise and international footprint".

In a media call this morning, Formica said 2021 was a year of "significant progress" for these strategic priorities.