Companies and economies around the world continued to feel the effects of the coronavirus-enforced lockdowns during the second half of 2020. Investment Week reports on how they have done since then.
Jupiter Asset Management
Jupiter Asset Management saw its assets under management (AUM) fall 8% to £39.2bn, from £42.8bn, while its pre-tax profit halved to £40.8m in the firm's H1 2020 despite a Q2 recovery.
Jupiter said outflows from fixed income and alternative strategies shrank AUM during Q1, alongside coronavirus-related market falls wiping around £5.5bn off the figure. The asset manager saw "moderate inflows", of £300m, in Q2, driven by a reversal in flows into its fixed income strategy.
However, the firm said it had seen "strong investment performance" from its mandates, with 80% of its mutual fund AUM above the median over three years.
Jupiter said it had "remained resilient" through the pandemic and had not needed to take advantage of any government support packages.
The acquisition of Merian Global Investors went through in-line with Jupiter's original timetable, which it said was "a significant achievement given the circumstances".
CEO Andrew Formica said Jupiter, alongside the rest of the industry, had seen "challenging market conditions" in H1, but there were "a lot of strong positives" to take from the results, including its strong investment performance which showed "how important active management is during market dislocations".
Formica said: "Although we suffered a significant fall in AUM due to both outflows and markets in the first quarter of the year, the second quarter has seen a return to moderate inflows and a partial recovery in asset prices.
"Despite market volatility, our investment teams have delivered strong investment outperformance reinforcing our commitment to high-conviction active management."
The CEO added the Merian purchase and its strategic partnership with NZS Capital LLC will provide "will see us well placed to take advantage of market opportunities in the future, helping to secure Jupiter's long-term future and profitability".
Jupiter maintained its interim dividend payment at 7.9p per share while targeting a pay-out ratio of around 50% of underlying earnings.
Rathbone Brothers
Rathbones' Unit Trust business has seen net inflows of £600m during the first half of 2020, with funds under management growing by 20% to £8bn, according to its half-yearly results. Compared to H1 2019, this is a 68.7% increase in net inflows.
Net inflows into Rathbone Brothers in its entirety during H1 reached £1.3bn, which represents an annualised growth rate of 5.3%, while Rathbones' Investment Management arm of the business generated a net organic growth of 1.4%.
Alongside drawing attention to the firm's strong performance, its latest results have announced that it is planning to launch a platform which will be known as 'MyRathbones'. According to CEO Paul Stockton, it is "the first stage of a programme of digital enhancements to Rathbones' client proposition" and is "designed to augment our existing services".
"Clients will benefit from improved digital access to Rathbones from a range of devices and will be protected by industry standard online security," he aaid. We will continue to develop the 'MyRathbones' platform by adding additional features and enhancing its capabilities and expect that feedback from our clients and advisers will play a significant role in how we define and prioritise future developments.
Stockton added that the firm's "strong first half performance" in 2020 was the result of an "acceleration of inflows" in Q2, which led to funds under management and administration reaching £49.4bn as of 30 June.
"Underlying profit margins remained resilient as our business model responded strongly to the challenges of the Covid-19 pandemic while also creating opportunities to leverage the advantages of remote working and streamlining procedures," he said. "We continue to prioritise the safety and well-being of our employees and remain dedicated to delivering a high-quality client service."
Income within Investment Management increased by 2.3% year-on-year, totalling £158.7m, while Unit Trust's income reached £20.3m over the last six months to the end of June - an increase of 16% on the £17.5m recorded during H1 2019.
The underlying profits of Rathbones overall totalled £46m during the first half of the year - a £600,000 decrease compared to H1 2019, while its underlying profit margin fell slightly year-on-year from 27% to 25.7%.
The firm is maintaining its interim dividend at 25p, which reflects its "confidence in our medium term prospects and the strength of our balance sheet", according to Stockton.
"Our strong first half performance is testament to the strength of our brand, our market position and our people," the CEO continued. "Our business model has proven to be resilient, agile and adaptable throughout the duration of the Covid-19 pandemic, with little to no impact on business continuity.
"While we expect investment markets to remain volatile and interest rates to remain lower for some time to come, our balance sheet is robust with a strong capital position.
"We are well placed to continue delivering on our organic growth strategy, balancing investment in the business with prevailing market conditions, maintaining strict cost discipline and identifying inorganic growth opportunities that fit our culture."
