Jupiter Fund Management (JUP) H1 2024 earnings summary

Executive summary

• Delivered solid H1 2024 results, with underlying profit before tax up 3% to £47.9m and statutory profit before tax up 11% to £38.7m, in line with expectations and strategic objectives focused on cost discipline, operational efficiency, and growth.

• Net outflows of £3.4bn were mainly due to Value team changes and exit from Chrysalis Investment Trust, but underlying net outflows were only £0.2bn, with early signs of improvement in retail investor sentiment.

• Gross flows improved to £7.5bn, driven by retail demand, especially in Systematic equities and Asian & Emerging Market equities.

• Cost discipline enabled continued investment in growth and operational efficiency.

• Announced an interim ordinary dividend of 3.2p per share, in line with capital allocation policy.

Financial highlights

• Underlying profit before tax for H1 2024 was £47.9m, up 3% year-over-year; statutory profit before tax was £38.7m.

• Net revenue declined to £173.7m due to lower average fee margins and tiered pricing.

• Assets under management (AUM) stood at £51.3bn, largely unchanged from June 2023, despite £3.4bn in outflows.

• Underlying EPS was 6.6p; interim dividend declared at 3.2p per share, half of underlying EPS excluding performance fees.

• Cost:income ratio increased to 74% (H1 2023: 71%), reflecting lower net revenue.

Outlook and guidance

• Full-year net revenue margin guidance remains at 66bps, with higher margin business anticipated in H2.

• Full-year non-compensation costs expected at £109m, with some seasonality leading to higher H2 costs.

• Modest improvement over February guidance anticipated for cost ratios; total compensation ratio (excl. performance fees) expected at 46%.

• Institutional pipeline remains robust, with positive momentum in international and UK retail channels.

• No further exceptional items expected in H2 2024.