Jupiter Fund Management - JUP - Stock Discussion

This asset manager manages a wide range of mutual, bond and private equity funds for retail and institutional investors.

This fund is in really good shape with an upcoming ex dividend date on the 15 April. Paying over 5.71%per share. Pay date 15 May .
It has a good track record of dividend payments and the share price hit 600p back in 2017 now with a net revenue above that level
@sampoullain

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As I’m new to investing. With dividends if you buy before the ex dividend date will you automatically get that dividend payment?
I may have this all completely wrong!

Just adding more before the ex-dividend date on Thursday.

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In case anyone reads this in the future: please note JUP is not a fund. JUP is a fund management group. It manages funds and provides various other financial services.

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I’ve never felt more like a CEO of a fund manager …

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So, I clearly chose a poor investment here.
Thoughts on if things are going to turn around?
I’m already £160 down

Yes, I’m also watching it go down and down and have also lost quite a bit. Looking at the news and the financials, I’m not too worried yet. Still not too many short trades taking place on Jupiter either (something else I look out for to see if short traders expect the company to go down in price). Admittedly, I’m not buying any more but I’m holding the stock for now.

I don’t really follow this share so would like to make a general observation rather than a specific one. In times when the market is falling it is often the case that fund management groups experience fund out flows. Of course, the revenue of these companies is directly related to their AUM as it is usually percentage based. So, imho, it is to be expected a company like JUP will experience a drop in share price in turbulent market conditions as the outflows increase and even accelerate. You can also see this effect with peer companies such as Liontrust (LIO) and Impax Assessment Management (IPX).

The theory is that when the market conditions improve there is the likelihood that flows will revert inwards and correspondingly revenues will swing upwards. And hand in hand with that the share price will go up. Of course, I can’t predict the future. But if you believe that the likelihood of these events is high then you might consider sitting tight and even buying more as the yields are pretty high. OTH, the market is a dangerous place and these shares may collapse never to return so the high yields that you see on JUP or LIO may mean nothing to you in total return terms in a few years time.

I agree, tough call.

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Jupiter Asset Management (JUP) is a stock with almost a 14% dividend yield. Just wondering if anyone owns it in their portfolio.

If you do own it/ or even if you don’t, do you think it’s a secure dividend in the short term? (Personally I can see potential for up to a 30% cut)

Do you think the share price will keep trending downwards even in a stock market bull run?

Here are my findings/ thoughts:

  • obviously their customers asset value is declining due to the stock market crash
  • they have had more outflows than inflows to their funds over the last quarter or so
  • their share price is more or less at an all time low and have been trending downwards since 2018/19
    I can see that their net profit has been fluctuating a little since 2018 but can’t quite workout why this is the case, any ideas?

If only that was ISA friendly

I have £JUP in my portfolio, although very small ATM - like you I was unsure so just testing the water.

I have it through my ISA and all seems well…?

Is it not?

Think jupiters next dividend ex date is on the 11th of this month. Lloyds is today and i3 energy is the 18th i believe. Might be worth moving assests around this month fkr 3 payouts

Yes correct, payment date then 31 August from what I can see, 7.9p per share if that doesn’t change.

In answer to your question, yes I do have it in my portfolio and not sure whether to regret it or not. Obviously I hope it will bounce back but at current count I’m down £142, hopefully cushioned by dividends if they come through. I bought when the dividend yield was about 9%, I wouldn’t necessarily have bought at 13.5% as a high dividend yield can be a warning sign. They still seem to have enough net assets not to worry yet but I’ll keep monitoring, will hold the shares I’ve got but not buy more.

By contrast, Phoenix Group with a similar profile has almost always been positive in my portfolio, currently up £28, took the opportunity to buy more shares during the last brief dip. It has a dividend of 7.8% currently so not a bad shout either.

One of the interesting, useful and delightful things about this forum is that after reading comments like yours @1anrs I become more aware of mentions in articles of companies that I previously didn’t have much of an interest in. A bit like when I learnt to drive. It was wow “all these road signs exist” :grinning:

My attention was caught by this article from a few days ago:

Michael Werner at UBS expects the FTSE 250 asset manager to slash its dividend to 10p for the 2022 financial year, arguing that the company will adjust its dividend ambitions “or risk running afoul of its regulatory capital requirements”

So yes, you are 100% correct: there is the danger that the share dividend drops heavily too.

The other point the analyst makes is that the fund manager has suffered years of negative outflows, and it will take quite some time to make that up.

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Thanks very much bitflip, I learned that warning sign by watching a mini-docu about the collapse of Carrillion :smiley:

Thankfully I’ve learned that lesson early on though, that tidbit especially resonated with me after my disastrous (but thankfully relatively small) investment in Evraz!

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