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Jupiter Fund Management PLC on Friday reported a plunge in interim profit, and suffered a drop in managed assets over the period due to negative market movements.
As at June 30, the London-based investment manager recorded assets under management of £48.8 billion, down 19% from £60.5 billion at the end of December.
This was mainly due to negative market movements, which sliced £8.1 billion off Jupiter's managed assets, as well as £3.6 billion in net outflows.
Jupiter Fund considered the first half of 2022 to be a challenging period, with equity markets falling significantly as a result of the war in Ukraine, rising interest rates, and inflationary pressures bringing in the increased likelihood of a recession.
The fall in managed assets affected Jupiter's performance for the period, with pretax profit falling 67% to £18.8 million from £57.0 million the same period a year prior, on net revenue which declined 10% year-on-year to £202.4 million from £224.0 million.
Jupiter Fund declared in interim dividend of 7.9 pence per share, in line with a year before.
‘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,’ said Chief Executive Andrew Formica.
‘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. Outflows were largely driven by redemptions across our unconstrained fixed income strategy as well as several of our growth-focused funds, against a backdrop of increased risk aversion from investors across both equities and fixed income,’ said Formica.
Shares in Jupiter Fund Management were down 3.0% at 124.60 pence on Friday in London.
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