Jupiter Fund Management (LON:JUP) told investors its 2025 full-year results reflected a “challenging” year financially, but management emphasized a sharp improvement in leading indicators including investment performance, client demand, and flows. Chief Executive Matt Beesley said the firm entered 2026 in a “demonstrably” stronger position than 12 months earlier, citing positive net flows for the first time since 2017, improved performance across time periods, two acquisitions, and progress toward a targeted 70% cost-to-income ratio.
Investment performance improved across time periods
Beesley called the improvement in investment performance “particularly pleasing” and positioned it as an important prerequisite for sustained inflows. Over a three-year period, Jupiter said 68% of mutual fund assets outperformed their peer group median, up from 61% last year, with nearly half of total AUM in the top quartile. On a five-year view, 75% of AUM outperformed and more than 60% sat in the top quartile.
Jupiter also pointed to performance among its largest products. At the end of December, it had 15 funds with more than £1 billion of client AUM; 11 of those outperformed across each time period, and six were top quartile over one, three, and five years.
Flows turned positive, with broad-based demand
Jupiter reported £16.9 billion of gross flows in 2025, which Beesley described as the highest the firm has recorded. Gross flows rose across all regions versus the prior year, and AUM from European clients grew by just under 40%, which management framed as progress against its international growth ambitions.
Net flows were £1.3 billion for 2025, marking the first calendar year of net inflows since 2017. The institutional channel contributed £1.0 billion of net inflows, while retail contributed £0.3 billion of net inflows, with more than £2.0 billion of retail inflows arriving in the second half.
By capability, systematic strategies were described as a material driver, with continued demand for Global Equity Absolute Return (GEAR). Management stressed flows were not limited to GEAR, noting that much of the systematic range saw net inflows, including the long-only World Equity Fund, which tripled its AUM to more than £1 billion. Global equities also contributed positively, including demand for Global Leaders and Gold and Silver. Jupiter’s UK equity capability posted positive flows across both retail and institutional clients, particularly into dynamic and growth strategies, with Beesley suggesting the market may be moving toward a more constructive outlook for UK equities.
Management said the momentum continued into early 2026, with more than £1 billion of positive flows year-to-date “as of a few days ago” and group assets now above £70 billion. Beesley added that five of Jupiter’s seven investment capabilities had higher AUM than a year earlier, with systematic and global equity more than 60% larger year-on-year.
2025 financials: AUM recovery late in the year, strong performance fees
Chief Financial and Operating Officer Wayne Mepham said the rebound in AUM during the year helped set up 2026, although the average AUM for 2025—a key driver of revenue—remained lower. Jupiter ended 2025 with £54 billion of AUM, up more than 19%, aided by positive net flows and stronger markets since May. Average AUM for the year was down 5% to £48 billion, which, combined with lower fee margins, contributed to net revenues (excluding performance fees) of about £311 million.
Mepham said the cost-to-income ratio was 82%, “higher than I would like in the longer term,” while the firm continued to target 70% as scale improves and cost initiatives take effect.
Performance fees were a standout, totaling £120 million. Jupiter committed to distributing 50% of 2025 performance-fee revenue, leading to an additional £60 million shareholder distribution. Underlying profits were reported at more than £138 million, or £62 million excluding performance fees. Underlying EPS was 19.4 pence; excluding performance fees, EPS was 8.7 pence. Ordinary dividends for the year totaled 4.4 pence per share.
Cost actions, margin outlook, and guidance points
Mepham said operating costs (excluding performance-fee-related costs) fell by £5 million versus 2024. He noted total compensation costs were elevated, with a compensation ratio of 50%—just outside the firm’s typical 45%–49% range—driven mainly by share price effects on employee tax accounting for share awards. He said that impact was not expected to repeat and projected the ratio would fall by about two percentage points in 2026.
Non-compensation costs came in materially better than expected, described as more than £11 million below expectations at the start of the year and £6 million below the most recent guidance, representing targeted non-comp savings delivered “over a year ahead of schedule.” Looking ahead (excluding CCLA), Mepham guided to non-compensation costs of around £106 million in 2026, reflecting variable costs linked to AUM, and reiterated compensation guidance of 48%.
On fee margins, Mepham said net management fee margin averaged 65 basis points in 2025, down year-on-year due to business mix shifts and market dynamics that increased AUM in lower-margin areas. Jupiter entered 2026 with a run-rate margin of 64 basis points and Mepham budgeted for average margins of about 63 basis points in 2026, excluding CCLA.
Mepham also offered a cautious framework for performance fees in 2026, referencing historical averages and the AUM base in strategies that can earn performance fees. He said a figure around £20 million could be a reasonable assumption for 2026, while emphasizing the unpredictability shown by 2025’s £120 million outcome.
CCLA acquisition: new client channel, synergy targets, and near-term expectations
Management provided a detailed update on the CCLA acquisition, which completed earlier in February. Beesley said CCLA brought £15 billion of AUM across charities, religious organizations, and local authorities, providing Jupiter with a new, non-overlapping client channel in the UK nonprofit sector. He described the client base as stable and “sticky,” and highlighted complementary expertise across equities, real estate, and multi-asset.
Beesley acknowledged that CCLA’s recent performance has lagged after several years of prior outperformance, attributing the softer period to a quality-and-growth style that faced pressure in markets. He said Jupiter was conservatively budgeting for a “minor level of outflows” from CCLA strategies through 2026, and in Q&A confirmed those assumptions were consistent with expectations when the deal was agreed.
Mepham said CCLA’s AUM was little changed from the £15 billion level at announcement and cited a run-rate fee margin of 43 basis points. For 2026 modeling, he said investors should assume 11 months of contribution, and he outlined expectations (before synergies) for 11 months of costs:
- Compensation costs: £32 million
- Non-compensation costs: £20 million
Jupiter reiterated a minimum targeted synergy saving of £16 million on a run-rate basis by end-2027, and Mepham said he expected to deliver “a good proportion” of the target by end-2026, including £4 million of reductions in 2026. He also guided to £14 million of 2026 cash integration costs (with about £5 million mainly in 2027 remaining), and referenced an annual non-cash intangible amortization charge of about £5 million (to be confirmed once finalized).
On capital deployment, management said the balance sheet remained strong and well above 2.5x coverage of higher capital requirements. Alongside the ordinary dividend, Jupiter’s board chose to return the £60 million performance-fee-related distribution through a mix of a 5.7 pence special dividend and a £30 million buyback program (about 3% of issued shares), with shares bought back and treasury shares to be canceled.
Looking beyond CCLA, Beesley said the immediate priority was integration, but added the firm would remain “thoughtful and judicious” about deploying capital, pursuing additional inorganic opportunities when strategically and financially attractive, while returning capital to shareholders when such opportunities are absent.
About Jupiter Fund Management (LON:JUP)
Jupiter Fund Management Plc is a publicly owned investment manager. The firm manages mutual funds, hedge funds, client focused portfolios, and multi-manager products for its clients. It invests in the public equity markets across U.K., Europe and global emerging markets. The firm also invests in fixed income markets, fund of funds products, hedge funds, and absolute return funds. Jupiter Fund Management Plc was founded in 1985 and is based in London, United Kingdom.
