Jupiter Fund Management PLC (LON:JUP) shares fell on Friday after the investment group saw bigger than expected net fund outflows of £2.3bn in the first half and said the operating environment remained challenging.
The FTSE 250-listed firm revealed net outflows of £2.3bn in the six months to June 30, larger than the £1.9bn consensus forecast, having notched up net inflows of £3.6bn in the same period a year earlier.
READ: Jupiter Fund Management dives after tough first quarter
The firm’s assets under management at the end of the period were £48.2bn, down 4% on the £50.2mln at the end of December 2017, although that was above analysts' forecast for £47.8bn.
Jupiter saw its first-half pre-tax profit increase by 3% to £96.5mln, with net management fees up 7% to £199.2mln. The group raised its interim dividend by 16% to 7.9p per share, up from 6.8p a year earlier.
Maarten Slendebroek, Jupiter’s chief executive, commented: "The first half of 2018 reflected a more challenging operating environment against a more volatile global geopolitical backdrop.”
In mid-morning trading, Jupiter shares were nearly 3% lower at 429.70p.
"425p may be an interesting entry level”
In a note to clients, analysts at Shore Capital said: “We continue to regard’s Jupiter’s strategic positioning as one of the weakest of the UK-listed asset managers.
“Despite a well-executed diversification strategy it remains heavily exposed to a UK retail market where the regulatory environment is looking to drive down the overall cost of investing.”
They added: “We are likely to trim our last published fair value of 485p but, for the first time in several years, can start to see value emerging and a price under 425p may be an interesting entry level.”
ShoreCap retained a ‘hold’ rating on Jupiter shares.
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