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Jupiter Fund Management shares surge 8.8% on inflows

Economy & businessEconomy
Key Points
  • Jupiter shares rose 8.8% after reporting £1.3bn net inflows and 19% AUM growth.
  • Revenue increased 18% to £431m, profit before tax rose to £131.9m.
  • CEO Matthew Beesley cited improved client sentiment; analyst Rae Maile warned about 'wonder funds'.

The asset manager generated £1.3bn in net inflows, compared to outflows of £10.3bn the prior year, driven mainly by the Institutional channel (£1.0bn), while Retail and Wholesale contributed £0.3bn. Revenue jumped 18% to £431m, and profit before tax rose from £88.3m to £131.9m. The Board recommended a final ordinary dividend of 2.3 pence per share and announced a £30m share buyback programme.

Jupiter completed the acquisition of investment management company CCLA. Chief Executive Matthew Beesley credited the performance to improved client sentiment and investors shifting away from large-cap tech stocks. According to City AM, analyst Rae Maile warned of 'wonder funds' that perform well for a few years then fail to keep momentum, noting that past performance is no guarantee for the future.

It is the latter point which remains arguably most relevant for Jupiter, as the history of 'wonder funds' is that past performance is no guarantee of for the future.

Rae Maile, Analyst at Panmure Liberum

Performance fees quadrupled from £31.2m to £120.3m, while average assets under management dipped slightly to £48.1bn from £50.7bn.

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Jupiter Fund Management shares surge 8.8% on inflows | Reed News