Jupiter Fund Management assets hit record high, interim profit swells

(Alliance News) - Jupiter Fund Management PLC on Friday reported a record performance in its ...

Alliance News 30 July, 2021 | 10:24AM
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(Alliance News) - Jupiter Fund Management PLC on Friday reported a record performance in its assets under management as they exceeded GBP60 billion for the first time.

The London-based fund management group said it had record assets under management of GBP60.3 billion on June 30, up 54% year-on-year from USD39.2 billion.

Pretax profit lifted 40% to GBP57 million for the six months ended June 30, from GBP40.8 million a year previously. Revenue of GBP247.7 million improved 36% year-on-year.

Shares were down 7.5% to 267.80 pence each in London on Friday morning.

Jupiter declared an interim dividend of 7.9 pence per share, unchanged from the prior year.

Net inflows from operating activities more than doubled to GBP102.2 million while net outflows widened by 15% to GBP2.3 billion from GBP2.0 billion a year prior.

"Outflows were concentrated in a few areas, often where performance has been robust but the asset class has not been in client demand. European Growth and UK equities remained out of favour and both saw further redemptions. Systematic strategies, excluding the Global Equity Absolute Return fund also saw outflows, along with the Merlin range," the firm said.

"Despite the headwinds facing the business, we have delivered a robust set of results. Investment performance remains strong and we continue to deliver increasing levels of gross flows. Although we saw net outflows in the first half, we have a number of key products with strong investment performance and we are hopeful given performance and compelling market valuations that sentiment will change," said Chief Executive Andrew Formica.

In February 2020, the fund management firm acquired Merian Global Investors in a GBP370 million all-share deal.

"With Merian now fully integrated, cost synergies have been achieved and significantly exceeded our original expectations. We also have a number of key funds reaching their three-year track record which, along with our successful focus on cost management, mean we continue to be well positioned to return to growth," Formica added.

By Amrit Sahota; newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Jupiter Fund Management PLC 79.00 GBX -2.47 -

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