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Jupiter Fund Management PLC on Friday said that its financial results were impacted by poor market valuations and consumer sentiment, in turn driven by macroeconomic events.
For 2022, the London-based equity and bond investment manager reported pretax profit of £58.0 million, down 68% from £183.7 million a year prior.
Net revenue was down to £397.3 million from £568.6 million, while assets under management also suffered a fall, down 17% to £50.2 billion from £60.5 billion. Jupiter said the latter was driven by a £6.8 billion decline from markets, and net outflows of GPB3.5 billion.
The total dividend for 2022 amounted to 8.4 pence per share, down from 17.1p the previous year. Jupiter has also extended its buyback of up to £16 million shares to a total of £26 million.
The firm told investors on Friday that its financial performance was impacted both by initial inflationary concerns and Russia’s subsequent attack on Ukraine.
It added: ‘The unusually high degree of correlation between equity and fixed income in the first half of the year, as both asset classes moved downwards together, brought uncertainty for our clients who faced difficult allocation decisions.’
With future success in mind, Jupiter said it reviewed its entire operating model in 2022, in order to drive efficiencies and create capacity for growth.
‘Although the macro-economic environment looks set to remain uncertain in the short term, we are focused on addressing the areas that we can control and delivering on what we promised. Since I was appointed as CEO, we have taken decisive action to simplify the business, deliver efficiencies and create capacity to build scale in strategically important areas. Our strategy to return Jupiter to growth is underway; focused on increasing scale, decreasing undue complexity, broadening appeal to clients, and deepening relationships with stakeholder,’ said Chief Executive Matthew Beesley.
Shares in Jupiter were trading 13% higher at 151.90 pence each in London on Friday morning. The firm has a market cap of £830.6 million.
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