Jupiter Fund Management beats on first half revenues and profits

Jupiter Fund Management saw its assets under management grow over the first half of the year, despite bigger than expected outflows, which helped the firm to deliver higher than expected earnings, its dividend payout underwhelmed.

For the six months to the end of June, the outfit saw AuM jump by roughly 8.0% versus a year ago to hit £45.9bn, even as it registered net outflows of £1.1bn (UBS: £0.6bn).

In parallel, profits before tax declined by 16% compared to a year earlier to £81.4m - as net management fees dropped 8% to £182,9m - and basic earnings per share at 15.1p were down by 13% (UBS: 13.9p), while net revenues delcined by 11% to £187.0m (UBS: £190.8m).

Newly arrived boss, Andrew Formica, highlighted what he saw the fund manager's core strengths, despite "challenging" industry conditions, including its top quartile investment performance over the past three years, higher AuM, and the "sharp" slowdown seen in outflows.

"Looking forward, we have a new management team in place with the ambition to get on the front foot and grow the business, without compromising our reputation for financial discipline," Formica said.

"This is underpinned by a clear five-year strategy which gives us renewed confidence in our future prospects."

Also on the outlook, the company said that "Jupiter has a robust capital position which supports the needs of its business and its dividend pay-out policy.

"We anticipate continued progression on cost reduction, but not at the expense of investment, which could ultimately deliver higher returns to our shareholders. Delivering growth through investment excellence remains our priority."

As of 0828 BST, shares of Jupiter Fund Management were 0.16% higher to 381.20p, after reaching an intra-session high of 388.0p.