Its shares had fallen close to 3% to 418p at the time of writing on the back of weaker organic growth in assets under management over the period.
While AUM surged to £40.5bn, a 13% increase year-on-year, net inflows over 2016 were only £1bn compared with £1.9bn in 2015.
The growth in AUM was driven chiefly by interest in its market neutral and total return strategies and favourable exchange rate movements, the company reported.
Profit before tax edged up to £171.4m from £164.6m and net revenue was 7% higher at £351.4m, though the asset manager admitted that these movements were driven by higher management fees of £330.2m (+10%).
Coupled with the group’s underlying earnings per share of 29.4 that also fell short of analysts’ consensus, RBC Capital Markets said investors should “expect forecast downgrades based upon higher cost guidance and the standardisation of fund pricing.”
“For 2017, we forecast EPS of 32.2p, versus consensus (per Bloomberg) of 32.7p. Jupiter trades at 13.3x 2017E EPS (sector: 14.0x) and at 9.4x 2017E EBITDA (sector: 10.0x),” the investment bank concluded.
