Jupiter Fund Management (329.5p and 3.9% of JIC portfolio). Results this morning for the year ended 31st December 2012 came in pretty much in line with expectations with earnings flat on the prior year at 19.0p per share. Good news came in terms of the dividend which is being increased by 13% to 8.8p. We already knew the statistics on growth in funds from the 16th January trading statement; total net inflows of £966m compared to £746m the year before. Within this mutual funds were particularly strong with net inflows of £1.55bn. Assets under management grew by 15% to £26.3bn with mutual funds representing nearly 80% of the mix.
Conclusion: The shares are up 50% since bought for the JIC portfolio last August with further progress in the share price being, to a great extent, dependent on the markets. It would be hoped that if we are truly in a bull market that revenue growth keeps up with growth in assets under management. However, there are pressures on fees which is likely to see a further drop in net management fees over time. On consensus forecasts the shares are valued at 14.2x 2013 earnings for 22% growth and 12.6x 2014 earnings for 12% growth. the 2012 dividend yield on the 8.8p declared dividend is 2.7%. This seems to me to be fair value. No longer compellingly cheap.
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