Fund manager Jupiter, which recently announced plans to buy rival Merian, has reported an 11% decline in annual pre-tax profits to £162.7m.

Net outflows in 2019 totalled £4.5bn with £4.3bn of this from European Growth funds after the manager announced he would be stepping down in April.

Net management fees fell 6% to £370m. Average Assets Under Management were 7% down during the year.

The company blamed a “challenging year for the industry and Jupiter” for the decline in profits.

The company said: “The decline in profits was largely due to lower management fees as a result of lower average assets under management and lower performance fees, partially offset by a reduction in administrative expenses before exceptional items.

“Our average AUM was 7% down on 2018, with the impact of lower market levels in the last quarter of 2018 providing a headwind into 2019.”

Chief executive Andrew Formica, Chief Executive, said Jupiter deliver a “resilient” 2019 performance despite a “challenging backdrop.”

He highlighted strong fund performance as a sign of Jupiter’s resilience with 72% of mutual fund assets under management outperforming over three years.

He has made numerous executive changes to “refresh” Jupiter’s leadership team and believes these will pay off.

Referring to the results, he said: “Our assets under management and net management fee margin remained stable year on year, although a lower average assets under management resulted in a drop in net management fees and also our profitability.

"We announced earlier this month that we are proposing to acquire Merian Global Investors. We believe this acquisition will both strengthen our existing business and support our future growth, which in turn will improve client outcomes and ultimately deliver stronger returns to shareholders.”

Due to the acquisition of Merian no special dividend will be paid.

• The company also announced that Bridget Macaskill, a non-executive director and chairman of the remuneration committee will stand down to be replaced by Roger Yates, a non-executive director and member of the remuneration committee.