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trading update: Jupiter saw its assets under management rise to £26.3 billion in the three months to 31 December 2012, up from £25 billion at 30 September 2012. Jupiter said that although industry conditions remained challenging, investor sentiment appeared to have improved towards the end of the year. The quarter also saw Jupiter deliver net mutual fund flows of £490 million, aided by a robust investment performance. Overall, net inflows for the quarter were £688 million, assisted by flows from two segregated mandate clients. Driven by mutual funds, cumulative overall net inflows totalled £966 million for the full year. The group, headed by chief executive Edward Bonham Carter warned in the short term "continued market uncertainties" left it cautious, but over the long term it was positive on the prospects for the long term savings market. The company is scheduled to release its full-year results on 28 February
Positive Points: Management highlighted that it continues to position the business for growth. Ageing populations and the decline in state-funded and corporate provision of pensions provide attractive opportunities. Historically low interest rates continue to detract from the attractions of traditional deposit saving accounts, with stockmarket related investments providing an alternative. Record AUM of £25 billion were declared. Attention continues to be paid to expanding group success in developing its European distribution. A new sales role to cover German-speaking Switzerland was made earlier in the year, along with an extension of its existing third party distribution agreement in France to French-speaking Switzerland. Jupiter delivered significantly improved net mutual fund flows of £795 million in its third quarter.
Negative Points: A cautious tone was adopted by management. The statement said the group remained cautious in its outlook "given fragile consumer confidence and industry flows remaining vulnerable to any increase in stock market volatility". While the company is expanding into overseas markets, it does not currently benefit from the scale of international intermediary distribution channels enjoyed by other financial groups. Revenues generated in the UK currently account for around 90% of the group's total. At the heart of any asset manager is the investment team. As with any fund management business, there is a risk that if a star manager leaves, investors and assets under management may follow. The Financial Services Authority continues to try and shape the Retail Distribution Review (RDR), launched back in June 2006. Uncertainty surrounding its eventual structure currently sits in the background.
Financial Highlights: Assets under management increased to a record £25 billion in the three months to 30 September 2012. During the period, net mutual fund inflows of £795 million were recorded. Overall net inflows for the quarter were £579 million, held back by the loss of a UK equity segregated mandate and the remainder of a large private client portfolio, reduced initially in Q1.
Interim statement: Jupiter Fund Management reported a £1.6 billion increase in assets under management in its third quarter to a record £25 billion. Net inflows for the period totalled £579 million, with clients in its mutual funds business adding £795 million. These flows were focused towards the cautious, lower-risk funds such as Jupiter's Merlin income, Strategic Bond and Global Convertibles, the fund manager said. Set against this, the announcement showed that inflows were held back by the loss of a UK equity segregated mandate and the remainder of a large private client portfolio, which had been reduced initially in the first quarter. Outlook comments remained cautious with management highlighting fragile consumer confidence and industry flows remaining vulnerable to any increase in stock market volatility.
Company overview Founded in 1985, Jupiter is a UK fund manager with £25 billion of assets under management (as of 30 Sept 2012). The group's core focus is managing assets for retail investors, mainly via unit trusts. In addition, the company also provides investment management services to institutional clients, private clients, investment trusts and hedge funds.
Matteo Perruccio, an Independent Non-executive Director of Jupiter Fund Management has sold two lots of 15,000 shares in the asset management firm. The first batch of shares were sold at 226.04p and the second for 225.00p, for a total of £67,656, taking his holding to 83,333 shares. At the beginning of the month the firm presented a pleasing set of results, with pre-tax profits coming in ahead of analyst expectations.
In the Times Tempus thinks if you must buy a listed fund manager, then Jupiter would be the one. Run by Helena Bonham Carter’s brother, Edward, the group has seen funds under management grow 0.6bn pounds over the last six months and inflows are healthy (although there has been one very big withdrawal). But Tempus is not really making a buy recommendation, arguing now is not a good time to invest in this sector, beset as it is by intense volatility and the normal frailties of investment: sometimes you get it right, and sometimes it can go horribly wrong
Edward Bonham Carter, Chief Executive, commented: "Against a challenging market backdrop, it was encouraging that we saw strong investment performance, positive net mutual fund flows and growth in assets under management over the last six months. Our financial position remains robust with a further repayment of £33 million from our bank facility and operating margins remaining above 50 per cent. Although the economic outlook remains uncertain, we believe we are well placed to capitalise on long-term structural drivers and remain confident of delivering value across the cycle."
Half Year Results 2012 1 August 2012 Highlights § Strong investment performance over one and three years § Steady mutual fund inflows of £265m § Further loan repayment of £33m § Interim dividend of 2.5p per share
A Non-Executive Director of investment firm Jupiter Fund Management has sold a total of 116,667 shares in the firm across seven transactions over a period of 10 months. The most recent sale, made on June 26th, saw Matteo Dante Perruccio dispose of 20,000 shares at 209.39p each for a total of £41,878. The first shares were sold on September 22nd 2011, with all but the most recent set of shares sold last year.
Edward Bonham Carter, Chief Executive, commented: "2011 was a positive year for Jupiter, despite the significant headwinds presented by the Eurozone crisis and increased pressure on household finances. Revenues and profits improved over the period due to the benefits of the last two years' net inflows, continued operational efficiencies and reduced financing costs. Furthermore, our balance sheet position strengthened significantly through continued deleveraging and it was pleasing to see the Group move into a net cash position in advance of the year end as a result. This improved financial performance and balance sheet resilience has allowed a 13 per cent. increase in the final dividend. "While financial assets have rallied sharply since the end of the year, the economic outlook remains uncertain. Markets are likely to remain volatile and fund flows subdued in the near term as a result. However, the long term growth drivers for the savings market remain intact and so we remain focused on delivering strong fund performance for our clients and investing in our business to capitalise on these opportunities when sentiment improves."
Outlook While financial markets have rebounded since the start of 2012 on the back of the ECB's long term refinancing operation and signs of economic stability in the US and China, the significant public and private debt issues faced by Western economies will take some years to unwind and are likely to cause some volatility yet. Fund flows are likely to remain subdued in the near term as a result. Despite this recent turbulence, the structural growth drivers for the savings market remain intact and the growth opportunities for a highly-regarded brand such as Jupiter are considerable. As we have previously demonstrated, success in this regard requires consistent investment through the market cycle, a focus on retaining and attracting outstanding talent who can deliver the continued investment outperformance that is the hallmark of our brand as well as continuing to develop our distribution presence in both the UK and abroad. Such an approach will enable us to capture the benefits of our scalable platform. By building on the strong foundations we have established over the past decade, Jupiter can continue to grow and prosper to the benefit of clients and shareholders.
Financial results Our financial performance and balance sheet continued to strengthen during 2011. Revenues increased eight per cent., which was ahead of the four per cent. rise in average market levels, boosting EBITDA by eight per cent. over 2010. During the year, we continued to degear the business, halving the size of our gross debt. This allowed us to pay our first interim dividend of 2.5p and increase our total dividend to 7.8p. We have also moved to a net cash position and, while we do have a competitively priced debt facility, we will continue to assess our level of debt and balance this with the need to maintain an efficient capital structure. Net revenue, at £248.5m, was eight per cent. ahead of the £230.5m recorded in 2010, while EBITDA was £134.9m, an increase of eight per cent compared to 2010. Our EBITDA margin remained stable at 54 per cent.
Edward Bonham Carter, Chief Executive, commented: "As we had announced previously, volatile market conditions and reduced investor confidence have led to a considerable worsening of the retail net flow environment during the second half of 2011 in both Europe and the UK, and particularly for equity products. Combined with the loss of a segregated mandate, this resulted in modest net outflows in the final quarter. However, positive market movements resulted in our total AUM increasing during Q4 to £22.8 billion at 31 December. We also continued to strengthen our balance sheet through operating cashflows, and it is pleasing to have traded into a positive net cash balance by the end of 2011."
19 January 2012 Jupiter Fund Management plc ("Jupiter", the "Group") today issues its trading update in respect of the three months to 31 December 2011. HIGHLIGHTS § Assets under management ("AUM") increased to £22.8 billion in the three months to 31 December 2011. § Cumulative net inflows of £746 million in the year to 31 December 2011. § Net outflows of £225 million in the three months to 31 December 2011. § Positive net cash balance sheet position anticipated for full year results.
http://www.investegate.co.uk/Article.aspx?id=201201190700128015V
RBS upgrades Jupiter Fund Management from sell to hold, target price raised from 171p to 200p
Elsewhere in the sector, RBS is concerned about Jupiter Fund Managements’ exposure to equities and has lowered its rating on the stock to “sell” from “hold”, with the target price reduced to 171p from 205p. “We downgrade the stock from Hold to Sell on our belief that the mark-to-market downgrades for Jupiter are likely to be larger over the next two weeks given the company’s higher equity exposure (83% versus 47% sector average),” RBS says. On the positive side, RBS notes that Jupiter’s strong position in the UK market, which accounts for 89% of funds under management “should hold it in good stead relative to some other markets where we anticipate substantial redemptions.” It notes that Jupiter trades at a premium valuation of around 12.8 times expected earnings in 2012, against 10 times in the broader sector.
braveheart - aye ye be right ! apologies
Elsewhere in the sector, RBS is concerned about Jupiter Fund Managements’ exposure to equities and has lowered its rating on the stock to “sell” from “hold”, with the target price reduced to 171p from 205p
Deutsche Bank downgrades Jupiter Fund Management from hold to buy, target price raised from 230p to 240p
RBS downgrades Jupiter from buy to hold, target price cut from 308p to 205p.