Jupiter Fund Management (JUP) H2 2024 earnings summary

Executive summary

• 2024 was a challenging year, but significant progress was made in transforming investment capabilities, hiring new teams, and launching new products.

• Delivered resilient results despite market headwinds, maintaining focus on strategic execution and cost discipline.

• Actions taken during the year have positioned the business for future growth.

• Strategic objectives focused on building scale, cost discipline, and expanding both organic and inorganic growth opportunities.

Financial highlights

• Underlying profit before tax was GBP 97.5 million, with statutory profits over GBP 88 million after exceptional costs.

• Net revenues (excluding performance fees) were GBP 333 million, down from GBP 356 million year-over-year, while net revenue including performance fees was GBP 364.1 million.

• Performance fees increased to over GBP 31 million for 2024, up from GBP 13 million year-over-year.

• Net flows were GBP (10.3) billion, mainly due to the departure of the Value team and Chrysalis, with AUM at year-end GBP 45.3 billion, down from GBP 52.2 billion.

• Ordinary dividend was GBP 0.054 per share, consistent with a 50% payout policy.

Outlook and guidance

• Management expects a 2025 net management fee margin of 67 basis points and budgeted performance fees of approximately GBP 10 million.

• Compensation ratio guidance for 2025 is 49%, at the top of the medium-term range due to lower AUM and new team additions.

• Non-compensation costs expected to be marginally higher at GBP 110 million in 2025.

• Long-term target is a cost ratio of around 70%, with a clear path to achieve this as scale increases.

• Ordinary dividend payout ratio targeted at 50%.