Wednesday, 29 July 2020 12:05
Pre-tax profits dive 50% at Jupiter in first half
Interim figures from Jupiter today underlined the impact of the Coronavirus pandemic as pre-tax profits plunged by 50% to £40.8m and Assets Under Management declined from £45.9bn June 2019 to £39.2bn in June 2020.
The company, which recently bought rival Merian, said despite the decline in profits and assets many funds did well with 80% outperforming over three years and there was some sign of a return to fund inflows in Q2.
Net fund outflows were £2bn in the first half compared to £1.1bn in H1 2019.
The interim dividend per share is unchanged at 7.9p.
|
|
Six months ended 30 June 2020 |
Six months ended 30 June 2019 |
Year ended 31 December 2019 |
|
AUM (£bn) |
39.2 |
45.9 |
42.8 |
|
Net outflows (£bn) |
2.0 |
1.1 |
4.5 |
|
Net management fees (£m) |
161.4 |
182.9 |
370.0 |
|
PBT (£m) |
40.8 |
81.4 |
151.0 |
|
Basic EPS (p) |
6.5 |
15.1 |
27.5 |
|
Underlying PBT (£m) |
56.6 |
88.8 |
162.7 |
|
Underlying EPS (p) |
10.0 |
15.7 |
28.8 |
|
Interim dividend per share (p) |
7.9 |
7.9 |
7.9 |
|
Operating margin (before exceptional items) |
36% |
47% |
43% |
Source: Jupiter
Andrew Formica, chief executive, said: "For the first half of the year, in common with the wider asset management industry, Jupiter has faced challenging market conditions, largely brought about by the global coronavirus (Covid-19) pandemic.
“Although we suffered a significant fall in AUM due to both outflows and markets in the first quarter of the year, the second quarter has seen a return to moderate inflows and a partial recovery in asset prices. Despite market volatility, our investment teams have delivered strong investment outperformance reinforcing our commitment to high-conviction active management."
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