(Alliance News) - Jupiter Fund Management PLC's first half performance succumbed to "challenging market conditions", the company said on Wednesday.
Assets under management at June 30 fell 8.5% to GBP39.21 billion from GBP42.83 billion at the end of December. Net outflows of GBP2.32 billion in the first quarter were only partly repaired by net inflow of GBP305 million in the second quarter.
Jupiter's pretax profit fell 50% year-on-year to GBP40.8 million from GBP81.4 million. Revenue was down 13% to GBP182.0 million from GBP210.3 million. Net management fees were down 12% to GBP161.4 million from GBP182.9 million.
Chief Executive Andrew Formica said: "For the first half of the year, in common with the wider asset management industry, Jupiter has faced challenging market conditions, largely brought about by the global coronavirus pandemic. Although we suffered a significant fall in AUM due to both outflows and markets in the first quarter of the year, the second quarter has seen a return to moderate inflows and a partial recovery in asset prices."
The asset manager held its interim payout at 7.9 pence per share.
"Our interim results demonstrate that even in difficult conditions we are able to deliver strong investment performance and outcomes for our clients. Jupiter continues to operate with a solid capital position, supporting the needs of its business and its dividend pay-out policy. This means we can approach the second half of the year with confidence as we focus on the full integration of Merian and meeting our strategic objectives," the company said.
Jupiter completed the GBP370 million acquisition of Merian Global Investors at the start of July.
Jupiter shares were 0.7% higher at 233.20p each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Jupiter Fund Management (JUP)