Fund manager Jupiter has reported a return to better financial health after the pandemic with pre-tax profits up 21% to £217m.

The full year figures have been boosted for the first time by its acquisition of rival Merian.

Results out today revealed net revenue increased by 27% during the year to December 2021, to £569 million. Underlying earnings per share were up 10% to 31.7p.

Assets Under Management grew to a record £60.5 billion and the pace of net outflows slowed, at £3.8 billion (2020: £4 billion).

There were record gross flows of £16.5 billion.

The firm said it was “disappointed” to see net outflows in some areas, such as UK and European equities, where client demand was “weak” and client redemptions high. 

Jupiter said fund performance was decent with 68% of mutual fund AUM outperforming the median over five years, 58% over three years and 80% over one year.

The company plans further investment in sustainability hires and sustainable investment products.

Some £17.5 billion of AUM is from clients based outside the UK and an investment office was opened in New York to develop partnerships with NZS in the US and Ping An in China. There are also plans to expand into Australia in 2022.

Andrew Formica, chief executive, 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.

“Furthermore, we are seeing progress in product areas such as sustainable equities, and internationally, in our partnerships with NZS Capital in the US and as we look to enter the Australian market. While it is 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.

“Although the short-term outlook is driven by geo-political events, we are confident that we have the right foundations in place to deliver on our strategy for growth, underpinned by a strong capital base. Our investment is focused on expanding areas of strategic importance, such as our sustainable investment offering, institutional expertise and international footprint."