Assets, net outflows “disappointing” for Jupiter Fund Management


Jupiter Fund Management on Friday said assets under management were £48.8 billion in the half, up from £60.5 billion at the end of December.

The FTSE 250 company said gross inflows in the six months to June 30 totaled £6.9bn, while net outflows were £3.6bn.

Its underlying profit before tax, excluding net performance fees, slipped to £53.9m from £79.8m year-on-year, while total underlying profit before tax fell to £29. £78.2m from £78.2m.

Pre-tax statutory profit fell to £18.8m from £57m.

Jupiter said underlying earnings per share before performance fees was 7.8p, from 11.7p in the first half of 2021, while total underlying earnings per share slipped to 4.2p from 11, 5p.

Statutory earnings per share dipped to 2.6p from 8.7p, while the board left the interim dividend unchanged at 7.9p per share.

“The first half of 2022 was particularly challenging for industry and Jupiter, as the continued impact of the coronavirus pandemic, the war in Ukraine and rising inflation created turbulent markets and significantly affected investor sentiment. “said general manager Andrew Formica. .

“Our overall assets under management and net outflows position is disappointing, and the board’s main priority is to improve the group’s performance, with particular emphasis on improving the cash flow position. clients.

“Outflows were largely driven by redemptions in our unconstrained fixed income strategy as well as several of our growth-oriented funds, amid heightened risk aversion in the share of investors, both in equities and in fixed income securities.

Formica said it was “encouraged” to see gross flows of £6.9bn were “largely in line” with the same period last year, despite the difficult market conditions.

“There continue to be signs of positive momentum in areas that have been a strategic priority for the business – with both the institutional channel and our sustainable strategies showing positive net flows for the period.

“Despite the difficult context, Jupiter maintained its capital position.”

Andrew Formica said it was “cautious” for the company to maintain its focus on cost discipline, particularly as markets remained difficult, adding that he “moved quickly” to reduce discretionary spending in the possible.

“While the near-term outlook is expected to continue to be determined by geopolitical and macroeconomic events, I am confident, passing the baton to my successor Matt Beesley, that Jupiter remains financially and structurally well positioned to deliver growth and outperformance of long-term investments.”

As of 09:17 BST, shares of Jupiter Fund Management were down 7.35% at 119.05 pence.

Reporting by Josh White on Sharecast.com.

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