Jupiter Fund Management Plc (JUP) Q4 2025 Earnings Report

The call presents a clear and broad improvement in operational and investment momentum — record gross flows, the first annual net inflows since 2017, material AUM recovery (and further scale via the CCLA acquisition), marked improvement in investment performance across 1-, 3- and 5-year horizons, and ahead-of-schedule cost savings. These positives are balanced against structural challenges: a still-elevated cost/income ratio (82%), a lower average AUM and fee margin pressure in 2025 (65 bps), short-term compensation accounting impacts, lumpy/uncertain performance fees (GBP 120m in 2025 vs a conservative GBP 20m baseline for 2026), and near-term acquisition/integration costs and potential minor outflows from CCLA. Overall management tone is constructive and confident, and the company demonstrates multiple leading indicators pointing in the right direction while acknowledging and planning to manage the remaining risks.

Management gave detailed 2026 guidance: they remain focused on a 70% cost/income target, underpinned by a minimum GBP15m of targeted savings (plus a minimum GBP16m of CCLA run‑rate synergies by end‑2027, with ~GBP4m included in 2026), and expect compensation to fall to c.48% (down from 50% in 2025) while non‑comp costs (ex‑CCLA) are guided to c.GBP106m; 2025 net management revenues were GBP311m (average AUM GBP48bn; year‑end AUM GBP54bn after recovering from an April low of GBP43bn), total combined net revenue including performance fees was c.GBP431m (performance fees were GBP120m in 2025, with management conservatively penciling in c.GBP20m for 2026), and fee margins are guided to c.63bps on average for 2026 (end‑2025 run‑rate 64bps; 2025 average 65bps); CCLA brings GBP15bn AUM at a c.43bps run‑rate margin and is expected to have c.GBP32m compensation and c.GBP20m non‑comp costs (11 months), with acquisition/integration net cash costs of c.GBP17m (cash exceptional c.GBP14m in 2026, ~GBP5m in 2027) and an illustrative annual non‑cash intangible charge of GBP5m; capital remains strong (well above 2.5x higher capital requirement), management will return capital via ordinary dividends (full‑year ordinary dividend 4.4p), a special 5.7p dividend and a GBP30m buyback (50% of 2025 performance fees = GBP60m distribution split 50/50), and they expect to deliver a meaningful portion of CCLA synergies by end‑2026 while continuing to target scale and top‑line growth after GBP16.9bn gross flows and GBP1.3bn net inflows in 2025 (YTD positive flows >GBP1bn and pro forma AUM now >GBP70bn including CCLA).