Inflation, Ukraine war and pandemic contribute to Jupiter Fund Management haemorrhaging profit and assets
The London-listed Jupiter Fund Management haemorrhaged profits and assets in the first half of 2022 owing to the challenging geopolitical environment.
Assets under its management (AUM) dropped to £48.8bn from £55.3bn at the end of March, while underlying profits were down to £53.9bn, from £79.8bn in the same period last year.
Its statutory profits before tax were also way down on last year at £18.8m, compared to £57m, while its net management fees were just over £200m, compared too £224m.
Jupiter, which registered gross inflows of £6.9bn, and net outflows of £3.6bn, also announced its basic earning per share had plummeted to 2.6 from 8.7, as the challenging post-pandemic and inflationary landscape takes hold.
Its chief executive Andrew Formica said “the first half of 2022 has been particularly challenging for both the industry and Jupiter, as the continued impact of the coronavirus pandemic, the war in Ukraine, and rising inflation have created turbulent markets and heavily impacted investor sentiment.”
“Our overall AUM and net outflow position is disappointing, and it remains the Board’s highest priority to improve the performance of the Group, with a particular focus on improving the client flow position.”
Formica, who will hand over to his successor Matt Beesley, added that he’s “encouraged to see that gross flows of £6.9bn for the first half of 2022 were broadly in line with the same period last year, despite these difficult market conditions.”