A solid investment performance and net inflows of £1.2bn helped lift assets under management to a record £31.7bn at Jupiter Fund Management (JUP). Strong cash flow also left the group with just £11m of debt at the end of the year, which was subsequently paid off in February.
The strong increase in earnings per share also prompted a big increase in the dividend payout, and while some of the cash generated will be used for selective reinvestment, chief executive Edward Bonham Carter confirmed that the board will look to return excess cash to shareholders where appropriate. In fact, analysts at Numis believe that without any major investment opportunity, the ordinary payout ratio of 50 per cent (of dividend to earnings per share) could rise to as much as 80-90 per cent.