Jupiter Fund Management’s underlying profits spiked 56% in the firm’s first half as the asset manager continues on its cost-cutting mission.
Underlying pre-tax profit in the six months to 30 June rose to £46.4m, compared to £29.7m in H1 of 2022, which the firm attributed to “continued rigorous focus on cost control”.
The asset manager has undergone a series of changes following the departure of chief executive Andrew Formica in early October 2022 and appointment of his successor, Matthew Beesley (pictured), who has wasted no time rolling out plans to make Jupiter a leaner company.
At the beginning of the year, Jupiter outlined a range of fund closures, mergers, and changes in investment objective as part of a 12-point plan to overhaul the firm’s offerings. Most recently, it proposed the merger of the £399m Jupiter Merian Global Strategic Bond Fund and the £31m Jupiter Flexible Macro Fund.
See also: Jupiter shutters dwindling European small-cap fund
AUM growth despite modest inflows
Assets under management (AUM) ticked up 2% to £51.4bn due to positive market movements after starting the year at £48.8bn.
The firm’s strategies recorded £23m positive net flows for the first half. However, this was driven by the institutional side of the business, which pulled in a net £1.7bn, cancelling out the £1.7bn net outflows from its retail, wholesale and investment trust offerings.
Beesley said retail investor appetite had been ‘muted’ over the six months.
Following positive net inflows in the second half of 2022, it is the first 12-month period of net inflows for Jupiter since 2017.
Beesley added: “We continue to diversify our client base, with institutional AUM now accounting for 18% of group assets and international AUM at 36%. We have nearly completed the fund rationalisation programme and have identified higher than expected cost savings during the period.
“Our strong capital position allows us to invest for growth and we plan to launch our range of thematic funds by the end of the year. In addition, we are returning capital to our shareholders through a special dividend.
It’s clear from these results that our strategic focus is generating positive outcomes and we are confident that continuing to deliver on the strategy will help to return Jupiter to sustained growth.”
Jupiter has announced a total dividend of 6.4p per share.
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