Assets, net outflows 'disappointing' for Jupiter Fund Management

Jupiter Fund Management reported assets under management of £48.8bn at the half-year on Friday, down from £60.5bn at the end of December.

The FTSE 250 company said gross inflows in the six months ended 30 June totalled £6.9bn, while net outflows came in at £3.6bn.

Its underlying profit before tax, excluding net performance fees, slid to £53.9m from £79.8m year-on-year, while total underlying profit before tax tumbled to £29.7m from £78.2m.

Statutory profits before tax fell to £18.8m from £57m.

Jupiter said underlying earnings per share before performance fees came in at 7.8p, down from 11.7p in the first half of 2021, while total underlying earnings per share slid to 4.2p from 11.5p.

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

“The first half of 2022 has been particularly challenging for both the industry and Jupiter, as the continued impact of the coronavirus pandemic, the war in Ukraine, and rising inflation have created turbulent markets and heavily impacted investor sentiment,” said chief executive Andrew Formica.

“Our overall assets under management and net outflow position is disappointing, and it remains the board's highest priority to improve the performance of the group, with a particular focus on improving the client flow position.

“Outflows were largely driven by redemptions across our unconstrained fixed income strategy as well as several of our growth-focused funds, against a backdrop of increased risk aversion from investors across both equities and fixed income.”

Formica said he was “encouraged” to see gross flows of £6.9bn were “broadly 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 focus for the business - with both the institutional channel and our sustainable strategies in positive net flows for the period

“Despite the challenging backdrop, Jupiter has maintained its capital position.”

Andrew Formica said it was “prudent” for the company to maintain its focus on cost discipline, particularly while markets remained challenged, adding that it “acted quickly” to reduce discretionary spending where possible.

“While the short-term outlook is set to continue to be driven by geopolitical and macroeconomic events, I am confident as I hand over to my successor Matt Beesley that Jupiter remains financially and structurally well placed to deliver growth and investment outperformance over the longer term.”

At 0917 BST, shares in Jupiter Fund Management were down 7.35% at 119.05p.

Reporting by Josh White at Sharecast.com.