The group also announced a 11.5p per share special dividend, which took the total dividend for the year of 24.7p per share, almost doubling last year’s 12.6p per share.
In the commentary to the group’s results, Jupiter said it intends, going forward, to maintain an ordinary dividend payout ratio of 50% across the cycle.
“The Board then expects to retain up to 10%. of pre-variable compensation earnings for investment and growth, for example to fund the new London office fit-out in 2015. The remaining balance, after taking account of any specific events, will be returned to shareholders.”
In a note out this morning, Numis anayst David McCann said: “While we acknowledge that the outlook for short term earnings growth is lower than many in the sector at present (reflecting relatively modest net flows currently, revenue margin decline, some underlying fixed cost pressures and the lack of a contribution from the disposed private client business in FY15 vs. FY14 EPS), we still believe that there is an excellent long term structural growth story in the retail savings market.
He added: “we anticipate a long term c.12% p.a. asset growth and c.5-10% p.a. profit growth opportunity for Jupiter and with a 6%+ yield you are paid well to wait for better times to return in our view.”
For the year, the group reported a jump in mutual fund inflows from £1.16bn to £1.42bn, but this was somewhat offset by the increase in segregated mandate outflows which rose from £129m in 2013, to £488m in 2014.It also saw a drop in private client flows after the sale of the business.
Total inflows fell to £860m, from £1.2bn in 2013.
Assets under management, however, rose marginally, to £31.9m
In terms of fund specifics, the group said: that as of year end, 25 funds that accounted for 51% of total mutual fund AU had delivered above-median performance over the key three year period, this was down from 30 funds in 2013.
But, it said: “This was impacted by the relatively weaker performance of the Merlin fund strategy, which represents 2% of AUM. Performance across the rest of our fund range was strong, with 67% of mutual fund AUM above median over three years.
