Jupiter fees skyrocket as fund managers pocket £60m

Thursday 27 January 2022 11:07 am

Two-stockpickers at fund manager Jupiter have pocketed £60m in fees from investment trust Chrysalis Investments after the value of their portfolios soared last year.

Chrysalis revealed yesterday it was paying Jupiter performance and management fees of more than £117m, of which £60.5m will go to fund managers Nick Williamson and Richard Watts, The Times first reported.

Jupiter will also take a £51.1m performance fee, up from £34.7m in the previous year, and equivalent to 85 per cent of Jupiter’s entire operating profits.

Chrysalis has said it will now review the £51.5m fee, which is equivalent to 11 per cent of its entire £1.1 billion market value.

Williams and Watts have generated stellar returns for the firm in the past year with a 57 per cent increase in net asset value per share, after backing firms including fintech darlings Wise and Starling Bank.

They have reportedly opted to take their fees in shares because they wanted to align themselves closer with Chrysalis shareholders, the Times reported.

A Jupiter spokesperson said: “The performance fee, as in any year, is reflective of the significant value that has been created for shareholders by the investment management team over the course of the year. The calculation for the fee is consistent year-on-year, and fully set out in the company’s prospectus.

“Jupiter, alongside the board of the trust, is committed to ensuring continued alignment with the company’s shareholders and keeps all fee arrangements under constant review.”