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Jupiter hikes divi 40% as H1 profits hit £59m

Jupiter hikes divi 40% as H1 profits hit £59m

Jupiter's H1 pre-tax profit has leapt from £31.2 million to £59.1 million.

The fund management firm, which is headed up by Edward Bonham Carter, saw strong inflows on the back of the first quarter's market rally, helping to drive up assets under management from £23.4 billion to £29 billion.

'Jupiter continues to attract healthy inflows while delivering consistently strong investment performance,' Bonham Carter (pictured) told investors.

He added that this performance, together with the firm's confidence in its future prospects, had allowed the board to increase its interim dividend by 40%, taking the payout to shareholders to 3.5p.

In both quarters reviewed by Jupiter's results, mutual fund inflows held up well despite the flow environment turning challenging.

At the end of the stretch net mutual fund inflows stood at £426 million.

Jupiter said this was largely due to 'encouraging flows' into its fixed income funds, as well as the continued popularity the Merlin fund of funds range and its top-performing equity funds.

UK flows, however, were dampened because of the impact of the retail distribution review, though an international expansion helped fill the gap and bolstered Jupiter's overall growth in assets.

Elsewhere, there were also net inflows of £130 million into its private client division, but these were offset by expected losses from UK equity segregated mandates.

Analysts at JP Morgan Cazenove said today's update was broadly in line with their expectations and maintained their 'overweight' recommendation on Jupiter's shares.

They said: 'Overall this is an excellent set of results, we believe.'

The markets agreed with Jupiter's shares up 7.3% or 23.7p at 348.3p in early morning trading.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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