Jupiter Fund Management (JUP) has been pursuing a strategy of diversification in recent years, looking to grow its number of geographies and asset types in the same way its fund managers do with its funds, and for the same reason. This approach allowed the group to ride out a turbulent 2016 in good shape, and now that the environment looks slightly friendlier, it has helped Jupiter report a strong set of numbers. Assets under management grew 27 per cent on the first half of last year, reaching £46.9bn at the end of June. Net inflows were £3.6bn during the period, up from £0.6bn in last year’s first half, while the group collected net management fees of £186.5m, up from £156.5m.
The headline half-year dividend was also up dramatically, although chief executive Maarten Slenderbroek said this should be read as a rebalancing to pay out earlier, rather than a hike in the overall amount. All of the company’s offices contributed to cash flows, but Mr Slenderbroek singled out the UK for praise, as well as newer offices in Italy and Spain.
The group is abolishing box profit from its unit trust pricing in 2018, which will have an impact on returns. Even so, analysts at Numis are forecasting profits to grow to £194.7m for the year to December 2017, giving EPS of 34.2p, then on to £207.1m and 36.5p in 2018 (from £169.7m and 29.5p in FY2016).
| JUPITER FUND MANAGEMENT (JUP) | ||||
| ORD PRICE: | 552p | MARKET VALUE: | £2.52bn | |
| TOUCH: | 551.5-552p | 12-MONTH HIGH: | 565p | LOW: 377p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 127p* | NET CASH: | £220m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 196 | 86.6 | 15.3 | 4.5 |
| 2017 | 220 | 93.9 | 16.8 | 6.8 |
| % change | +12 | +8 | +10 | +51 |
| Ex-div: | 03 Aug | |||
| Payment: | 30 Aug | |||
| *Includes intangible asstes of £346m, or 76p a share | ||||
