Jupiter profits rise 56% in H1 amid cost-cutting drive

investmentweek.co.uk:

Jupiter CEO Matthew Beesley

In its half-year results published today (27 July), the asset manager said underlying profit before tax increased 56% to £46.4m from the same period last year and statutory profit before tax grew 85% to £34.8m. 

Total assets under management increased by 2% to £51.4bn on the positive net flows and investment performance of £1.2bn.

Following positive net inflows in the second half of 2022, this is the first 12-month period of net inflows since 2017. The firm reported «slightly positive» inflows in H1, although these were almost offset by outflows in the retail channel.

The institutional channel was the driver behind these positive flows, with £1.7bn of net inflows in the first half, and a total of £3.5bn over the last 12 months.

Jupiter AM's CEO and investment chiefs on share price woes, active management and the rebirth of absolute return

With net outflows from funds of £1.7bn, the retail channel continued to see outflows as demand was once again hampered by the uncertain macroeconomic climate. 

Most outflows came mainly from sectors that still did not meet client demand, namely UK and European equities and the Merlin fund of funds lineup, while its range of global strategies collected over £600m and Dynamic Bond returned to small positive flows.

Although AUM increased over the period, average AUM fell 7.3% to £50.9bn, which led to net revenue being 11% lower at £181m, including £0.4m of performance fees, down from £0.7m in the same period last year. 

«As the shape of our business changes, with greater weighting towards institutional clients, we have seen a three basis point decline in the net management fee margin to 71 bps over the first half,» said CEO Matthew Beesley.

«Our focus remains