Jupiter Fund Management shares slide despite 'strong start' to year

(Sharecast News) - Shares in Jupiter Fund Management were sliding on Friday despite an improvement in assets under management rising 4% to £47.1bn at the end of June, from £45.3bn at the end of 2024, supported by a return to net inflows during the second quarter. Net flows for the six months were marginally negative at £0.2bn, improving significantly from outflows of £3.4bn in the first half of 2024.

The FTSE 250 firm said net revenue fell to £153.9m from £173.7m a year earlier, while underlying profit before tax declined to £30.4m from £47.9m.

Statutory profit before tax was £27.5m, compared with £38.7m in the prior-year period.

Total operating costs decreased to £125.4m from £129.1m, but the cost-to-income ratio rose to 82% from 74%.

The company declared an interim dividend of 2.1p per share, down from 3.2p in the first half of 2024.

"Jupiter has delivered a strong start to 2025, with growing momentum in the first half of the year," said chief executive Matthew Beesley.

"Direct management actions over previous periods are driving meaningful changes, and we are beginning to see the tangible benefits come through in our results."

Beesley noted that the institutional channel remained strong and retail demand improved over the period, leading to net positive flows in the second quarter and so far in July.

"Alongside our efforts to increase scale, our focus on cost discipline remains resolute and we have announced further efficiencies as we work towards our target of a 70% cost-to-income ratio.

"Our operating model remains efficient and scalable, and we are excited to welcome our new colleagues at CCLA in due course."

The firm recently announced the agreed acquisition of CCLA Investment Management, subject to regulatory approvals, as part of its strategy to drive efficiency and scale.

"With a marked recovery in client sentiment across both channels, improving investment performance across all time periods and the strongest investment line-up we have ever had, there are good reasons to be optimistic that we can continue to build on this momentum going forward," Beesley said.

At 0945 BST, shares in Jupiter Fund Management were down 7.39% at 125.2p.

Reporting by Josh White for Sharecast.com.