30th Jul 2019 09:29
(Alliance News) - Jupiter Fund Management PLC held its interim dividend Tuesday despite profit and revenue falling, after it experienced a sharp slowdown in net outflows.
For the six months ended June, pretax profit narrowed 16% to GBP81.4 million from GBP96.5 million the year prior, as revenue fell 12% to GBP210.3 million from GBP240.3 million the year before.
"My first few months in this role have served to reinforce the view I held of Jupiter from the outside," Jupiter Chief Executive Officer Andrew Formica said. "This company has a great many strengths: we have talented people; a client-centric culture dedicated to delivering superior performance; and a commitment to active, high-conviction investment management. We are also of a size where we can be agile in responding to rapidly evolving client needs and market conditions."
"These core strengths have helped drive a resilient first-half performance in the face of challenging industry conditions," Formica added. "We have maintained a strong, top-quartile investment performance with 72% of mutual fund assets under management above median over three years."
Jupiter proposed a 7.9 pence per share interim dividend, unchanged on the year prior.
"I am also pleased to report a 8% rise in assets under management to GBP45.9 billion and a sharp slowdown in outflows, and in particular, a return to net inflows for one of our most successful products, the Dynamic Bond fund," Formica said.
At the end of June, assets under management were down 4.8% to GBP45.9 billion from GBP48.2 billion a year prior. AUM did rise 7.5% from GBP42.7 billion at the end of 2018. Net outflows slowed to GBP1.1 billion, from GBP2.3 billion the year prior.
"Looking forward, we have a new management team in place with the ambition to get on the front foot and grow the business, without compromising our reputation for financial discipline," Formica continued. "This is underpinned by a clear five-year strategy which gives us renewed confidence in our future prospects."
Shares in Jupiter were 0.8% higher at 383.80 pence in London on Tuesday.
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