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Jupiter Fund Management (LON:JUP) reported what Chief Executive Matthew Beesley called "a strong set of results" for its 2026 interim period, citing higher assets under management, positive net inflows, improved investment performance and progress integrating CCLA.
Beesley said the business had continued to build on momentum seen toward the end of 2025, despite a more challenging geopolitical backdrop in the second quarter. He said Jupiter generated gross inflows of just under GBP 11 billion in the first half, a 45% increase from the prior-year period, with more than GBP 9 billion coming through the retail channel.
"We have reported another positive period of net inflows despite a more challenging geopolitical environment in the second quarter," Beesley said. He added that the retail and wholesale channel was the largest driver of the positive result.
Assets Under Management Reach Record High
Wayne Mepham, Jupiter's chief financial and operating officer, said the company ended June with assets under management of GBP 73.7 billion, up 36% from year-end. The increase reflected the addition of CCLA as well as continued growth in the pre-existing Jupiter business.
Mepham said average AUM for the pre-existing Jupiter business rose to nearly GBP 57 billion and closed at more than GBP 59 billion, up nearly 10% from year-end. CCLA AUM remained broadly stable at GBP 14.6 billion, though its mix shifted slightly toward money market funds, which modestly reduced the average fee rate.
Excluding CCLA, management fees rose more than 10% compared with the second half of last year, driven by higher average AUM. Mepham said average fee rates softened slightly because of business mix. He maintained expectations for a fee rate of around 63 basis points for the pre-existing Jupiter business and 42 basis points for CCLA for the full year.
Investment Performance and Flows Improve
Beesley said investment performance remained "critical" to Jupiter's ongoing success and had improved over the key three-year period. For the pre-existing Jupiter mutual fund business, 77% of assets were outperforming over three years, up nine percentage points from the full year, helped in part by a turnaround in Dynamic Bond performance. Over one year, 80% of assets were outperforming, while the five-year figure stood at 68%.
Beesley said all pre-existing Jupiter investment capabilities saw material increases in gross inflows compared with the same period last year. European equities and UK equities were up nearly 100% and 200%, respectively. Systematic equities continued to drive client demand, not only in Global Equity Absolute Return, or GEAR, but across strategies including World equity, North American equity and GEARx.
Regionally, Beesley said all areas outside the U.K. generated positive net sales. Europe was the largest contributor, with nearly GBP 1.6 billion of net inflows, and every European country in which Jupiter operates generated positive flows across systematic equities and European equities. European AUM was up about 70% over the last 12 months.
The U.K. result was affected by two redemptions, Beesley said. One was a large redemption from a UK equity segregated mandate in June, which he said had been signposted and was not performance-related. Another institutional redemption followed U.K. Local Government Pension Scheme consolidation and was described as an asset allocation decision rather than a performance issue.
CCLA Integration Ahead of Plan
Mepham said CCLA contributed more than GBP 5 million to underlying profit in the five months since completion of the acquisition. He said Jupiter had already locked in its original target of at least GBP 16 million of annualized savings and was increasing the minimum target to GBP 17 million on a run-rate basis by the end of 2027.
About GBP 8 million of those savings are expected to come through in 2026, almost double what Mepham had indicated in February, with most of the remainder expected in 2027. He said savings were coming from multiple areas, including suppliers, and reflected the businesses being integrated more quickly than initially expected.
Beesley said CCLA's reported outflows were within expectations, reflecting the acquisition and weaker current performance. He said total CCLA AUM was relatively unchanged because outflows were largely offset by client assets moving into money market funds. In the Q&A session, Mepham said CCLA money market fund AUM was GBP 4.6 billion at the period end, though Jupiter does not include those flows in group flow figures.
On CCLA investment performance, Beesley said softer results were not a surprise, given the investment team's style and Jupiter's expectations at the time of the acquisition. He said Jupiter had made some changes to the CCLA investment approach as the two groups began collaborating more closely, with additional Jupiter and non-Jupiter investment expertise reflected in decisions.
Profit, Costs and Capital
Mepham said underlying profit before tax, excluding performance fees, was GBP 52 million. Including performance fees, total underlying profit before tax was nearly GBP 51 million. Performance fee revenue was GBP 9 million in the half, though Mepham said Jupiter recorded a small loss related to performance fees because of deferred compensation costs from prior-year earnings and costs tied to current-year fees.
Exceptional items for the first half were GBP 15 million, mainly reflecting cash integration costs, amortization of acquired intangible assets and a loss on a forward contract used to hedge deferred share-based compensation awards.
The cost-income ratio, excluding performance fees, was 77%, a six-percentage-point improvement from the second half of 2025. Mepham said Jupiter remained confident in its medium-term target of 70%, supported by cost management, CCLA synergy savings and revenue growth. He reiterated that the compensation ratio, excluding CCLA, is expected to be no more than 47% for 2027.
Jupiter's board approved an interim dividend of GBP 0.037 per share, aligned with the company's policy of distributing 50% of underlying earnings per share excluding performance fees. Mepham said Jupiter held GBP 173 million of surplus capital and had a regulatory coverage ratio of 3.5 times.
Management Cites Growth Opportunities but Cautious Outlook
Beesley highlighted recent investment team additions in UK equities, European equities and Origin, saying they were performing well and had generated strong client engagement. He said the UK income team led by Adrian Gosden now manages more than GBP 2 billion of client assets, while strategies led by Alex Savvides had reversed outflows within a year and seen almost GBP 500 million of net inflows.
Asked about the outlook for flows in the second half, management said it was difficult to predict because of shifts in sentiment tied to geopolitical events. Beesley said the year began strongly before sentiment weakened as conflict in the Middle East took hold, though he noted tentative signs of improvement in recent weeks.
"What I do know is across the business, our investment teams have been taking advantage of that volatility in marketplaces," Beesley said. "Investment performance is strong. We know we have capabilities that do align with client needs."
About Jupiter Fund Management (LON:JUP)
Jupiter Fund Management Plc is a publicly owned investment manager. The firm manages mutual funds, hedge funds, client focused portfolios, and multi-manager products for its clients. It invests in the public equity markets across U.K., Europe and global emerging markets. The firm also invests in fixed income markets, fund of funds products, hedge funds, and absolute return funds. Jupiter Fund Management Plc was founded in 1985 and is based in London, United Kingdom.
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