Jupiter’s share price falls despite dividend boost as earnings come in below expectations
Jupiter Fund Management’s share price dropped four per cent this morning after the FTSE 250 firm reported earnings below expectations.
The figures
The asset manager reported net inflows of £1bn in its full-year results for 2016, down from £1.9bn in 2015.
Total assets under management, buoyed by the performance of stock markets, rose from £35.7bn to £40.5bn at 31 December.
Read more: Jupiter Fund Management's share price drops five per cent on outflows
Adjusted earnings before interest, taxation, depreciation and amortisation (Ebitda) came in at £171.6m, up from £168.1m in 2015. However, analysts at Peel Hunt and RBC Capital Markets said this was below expectations.
Although total dividends per share were increased from 25.5p to 27.2p, higher than expected by Peel Hunt, Jupiter’s share price, at the time of writing, had fallen four per cent to 413p.
[stockChart code="JUP" date="2017-02-24 09:21"]
Why it’s interesting
The company said it was pleased to have delivered growth in a “challenging” year, when investors were spooked by big political events.
While Jupiter recorded a £1bn inflow, other asset managers have reported more challenging years.
Henderson Group reported outflows of £4bn in 2016 earlier this month, shortly after Aberdeen Asset Management reported its 15th consecutive quarter of outflows.
Investment Association figures for 2016 show that, while total UK assets under management grew by £117bn to £1.045 trillion, last year was the worst for sales since 2008.
Read more: Jupiter Fund Management shares drop on results
What the company said
Chief executive Maarten Slendebroek, said:
In a year which many have described as challenging, I am pleased that Jupiter continued to deliver growth for shareholders and value for clients. Investor sentiment was affected by a number of macro events, but against this backdrop we saw inflows alongside healthy growth in profits. We continue to execute on our strategy, successfully launching new funds and products and opening two new international offices. In 2017 we will build on this through our ongoing investment in the people, systems and infrastructure which will help underpin our future growth.