At the start of 2019, after a year of rising redemptions from Jupiter Fund Management’s (JUP) fixed income and multi-asset mandates, hedge fund bets against the asset manager started to mount. In April, it was announced that star equity fund manager Alexander Darwall was to depart, and that net outflows had continued in the first quarter. By mid-May, at least 10 per cent of Jupiter shares were out on loan, according to disclosures to the Financial Conduct Authority.
Over that same period, the shares have gradually tracked higher, broadly mirroring the performance of Jupiter’s funds. In the six months to June, assets under management rose by £4.3bn via a combination of investment outperformance, market growth and foreign exchange movements on non-sterling assets.
Interestingly, the bugbear of 2018 – dynamic bond funds – saw a return to positive flows in the period, as the Fed pressed pause on rising rates and investors poured back into credit. However, this swing failed to offset increased outflows from multi-asset mandates and a sharp rise in redemptions in equities, the latter of which Jupiter blamed on UK investor reaction to the looming departure of Mr Darwall and James Zimmerman, manager of the popular UK Smaller Companies fund. Group net outflows totalled £1.1bn.
Analysts at Numis forecast earnings of 30.4p a share this year, rising to 32.2p in 2020.
| JUPITER FUND MANAGEMENT (JUP) | ||||
| ORD PRICE: | 383p | MARKET VALUE: | £1.75bn | |
| TOUCH: | 382-383p | 12-MONTH HIGH: | 435p | LOW: 266p |
| DIVIDEND YIELD: | 4.5% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 130p* | NET CASH: | £136m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 240 | 96.5 | 17.3 | 7.9 |
| 2019 | 210 | 81.4 | 15 | 7.9 |
| % change | -12 | -16 | -13 | - |
| Ex-div: | 8 Aug | |||
| Payment: | 28 Aug | |||
| *Includes intangible assets of £347m, or 76p a share. | ||||
