Join our community of smart investors

Jupiter saved by a good first half, reassures on flows

Jupiter Fund Management continued to grow in 2015, driven by a good start to the financial year.
March 1, 2016

It has been a rough six months for investment managers, especially those focused on the equity markets. Jupiter Fund Management (JUP) managed £1.9bn of net inflows during 2015, but £1.4bn came in the first half, and the majority of that in the first quarter. Overall, assets under management (AUM) rose by 12 per cent in the year to £35.7bn at the end of December.

IC TIP: Buy at 397p

The group saw £2.1bn of net inflows into its mutual funds, offset by a £0.2bn outflow from segregated mandates. The former now account for 87 per cent of AUM, and have been enlivened by an increase in overseas investors, who provided half of gross inflows. European equity strategies again proved particularly popular. The group is planning to add to its international growth with the opening of offices in Italy and Spain in 2016.

The group's investment performance improved, too, with 68 per cent of assets outperforming their benchmarks over a three-year period, after fees. That was up from 51 per cent at December 2014. Jupiter also realised £14.6m of performance fees in the year (from £9.7m in 2014), primarily due to the performance of a single fund.

Broker Peel Hunt expects adjusted pre-tax profit of £168m for 2016, giving EPS of 29.2p, compared with £165m and 29.2p in 2015.

JUPITER FUND MANAGEMENT (JUP)
ORD PRICE:397pMARKET VALUE:£1.82bn
TOUCH:397p-398p12-MONTH HIGH:481pLOW: 360p
DIVIDEND YIELD:3.7%PE RATIO:14
NET ASSET VALUE:132p*NET CASH:£259m

Year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
20113477015.67.8
20123467414.98.8
201338911421.112.6
2014**38816028.413.2
2015**40416529.414.6
% change+4+3+4+11

Ex-div: 10 Mar

Payment: 8 Apr

*Includes intangible assets of £348m, or 76p a share

**Excludes special dividends of 11.5p in 2014, and 10.9p in 2015