The asset manager ended 2016 with AUM of £3.7bn after “significant outflows” from its funds in the first half of the year ate away at the AUM of £4.5bn reported at the end of 2015.
Operating profits fell to £690,000 by 31 December 2016 according to results published on Friday, as opposed to £2.79m in 2015, with the firm pointing to an “exceptionally challenging year” for fund firms.
Overall, Neptune made an operating loss of £62,000 after the payment of a deferred bonus scheme and a one-off charge of £752,000 to deal with the impairment of intangible assets acquired several years ago.
However, Neptune said the first half of 2017 had seen operating profits recover and increase 443% on the same period last year at £675,000.
Founder and chief executive Robin Geffen (pictured) said: “2016 was a challenging year for the active management industry, Neptune included.
“However, I am pleased by the significant progress we have made in 2017. So far this year profitability is much stronger with first half profits up over fivefold compared to the same period in 2016, and we are on course for similarly robust growth in the second half.”
Sales have improved so far this year due to stronger performance, Neptune claimed, as well as changes made to its distribution team and structure to deal with “profound changes” hitting the industry, Geffen added.
“Looking forward, we’re committed as always to providing our clients with truly high conviction active management based on real world research and believe that we have the talent backed up by the track record to produce strong outperformance and flourish over the next decade.”
Dividends paid out were reduced from 45p in 2015, to just 20p last year.
The tough year for the firm was coupled with the loss of several high profile managers, including James Hackman and Felix Wintle.
In August, Neptune also confirmed it would close its £0.5m US mid cap fund due to low demand from investors, its manager Patrick Close also resigned marking the fourth manager to leave Neptune in the past 18 months.
