Good morning everyone, and welcome to Jupiter's 2026 interim results. I'm Matthew Beesley, Chief Executive here at Jupiter, and I'm joined as ever by Wayne Mepham, our Chief Financial and Operating Officer.

Today, we'll give you a run-through of our financial results and an update on our strategic progress, including the success we are having with the CCLA integration. Overall, we're very happy this morning to be reporting a strong set of results.

It has been a positive start to the year, and we've continued to build on the momentum that was so evident towards the end of 2025. Financially, we have seen material year-on-year increases across almost all of our key metrics.

Gross flows are increasing, and we've reported another positive period of net inflows despite a more challenging geopolitical environment in the second quarter. Overall, investment performance remains strong.

We've built scale in the business and are continuing to take complexity out, in some cases at a greater level or pace than we had previously thought. All of this leads to another positive step towards our 70% cost-income ratio target as we build an increasingly scaled and diversified and resilient business.

Investment performance, as ever, remains critical to our ongoing success. I'm pleased to report that these numbers continue to look strong and have improved over the key 3-year period.

The figures on the chart, including the prior year comparators, show mutual fund performance for the pre-existing Jupiter business. Over 3 years, 77% of those assets are outperforming, with that 9 percentage point increase from the full year being driven in part by the turnaround in dynamic bond performance.

Over 1 year, the figure is 80%, and over 5 years, it's 68%. Across each of those time periods, more than 60% of those assets are top quartile.

While there's always room for improvement, these are really strong numbers and a key to driving the inflows that we've all been seeing. We also know that the performance of the CCLA funds is not where we want it to be for both stylistic and specific stock-picking reasons, albeit consistent with our expectations.

With the integration process proceeding at pace, there's now greater collaboration between the wider group. Some initial changes have already been made to the investment process and, with that, the composition of these funds.

It is early days, but we're already seeing the positive impact from these changes. As we all know, active management can lead to periods of underperformance, but we remain confident in the team's approach and investment capability.

Moving on to the flow picture, it's worth a look first at the gross inflows. Unsurprisingly, given global events, we saw a slight decline from the first to the second quarter.

Nonetheless, we generated gross inflows of just under £11 billion, which is a 45% increase on the first half of the year. That really speaks to the ongoing and diversified turnaround we have been seeing, particularly in our retail and wholesale business.

We generated over £9 billion of gross inflows in the first half through the retail channel, which is more than 75% greater than at this time last year. From a net perspective, we generated our second 6-monthly period of positive net inflows.

As with the gross picture, the retail and wholesale channel was the largest driver of this positive result. At the full year results in February, we talked about the improved investor sentiment we'd seen through the second half of 2025, which then continued into the first quarter of 2026.

Although that sentiment was inevitably impacted by the conflicts in the Middle East, we continued to see positive retail inflows through April and May. It was only in June that we saw one large redemption from a UK equity segregated mandate, which had been well signposted to us and was not due to performance reasons.

A positive half, and indeed 2 positive quarters in the retail channel only impacted in the last month by one redemption. The institutional channel likewise saw a shift in sentiment from the first quarter to the second, and again, one client-specific redemption.

Once again, this was not performance-related, but an asset allocation decision following LGPS consolidation here in the UK. We were delighted that we retained a good portion of those assets and that we continue to serve clients in that area of the market.

This redemption was partially offset by positive net inflows across fixed income, UK, European, and systematic equities. In terms of CCLA, we said in February that we'd likely see outflows as a result of both the acquisition and current weaker performance.

As such, the figures we've reported today are entirely within our expectations. Total AUM for CCLA is relatively unchanged as the outflows were largely offset by significant client assets flowing into their money market funds.

While, of course, we do not include these within our group flow figures, they are good opportunities to engage with new and developing existing relationships across the wider non-profit sector, but especially with UK local authorities. Overall, pleasingly, another reporting period in which we've generated positive flows and there are signs that sentiment is beginning to recover and improve.

Looking at our asset split over our investment capabilities, you can see that with the inclusion of CCLA, we are now a much more diversified, more resilient business. From a gross perspective, all the pre-existing Jupiter investment capabilities saw a material increase in gross inflows compared to the same period last year, most notably our European and UK equities, which were up nearly 100% and 200% respectively.

From a net flow perspective, you can see that the really strong performance of systematic equities continued to drive client demand. This was not just in global equity absolute return or GEAR, as it's known, but across the range, including world equity, North American equity, and GEAR X, which is the higher-risk offshore version of GEAR.

The smaller net positions for many of the other capabilities belie some interesting and diversified underlying momentum, while inevitably being impacted by the hiatus on client demand. European equities returned to positive flows, as did UK dynamic equity, and both Indian equities and Asia Pacific equities too.

In fixed income, gross outflows from strategic and dynamic bond continued to reduce, while monthly income bond, global high yield, and cocos all saw net positive inflows. To reiterate a statement I've made many times before, we believe that all of our individual investment capabilities have the potential to grow.

With our investment performance so strong, when client demand returns, we are well placed to capitalize on that demand. From a regional perspective, again, the picture was encouragingly diversified.

The UK was, of course, impacted by those 2 redemptions that I previously mentioned. Without them, we would have been in positive territory for this, our largest market.

All of our other regions generated net positive sales over the period. Europe was the largest contributor with nearly £1.6 billion of net inflows.

Every European country in which we operate generated positive flows across systematic and European equities. Overall, European AUM is up some 70% over the last 12 months.

Our Latin American and Asia Pacific businesses also continue to grow, with flows and prospects diversified across investment capabilities and client channels. Taken together, the business is looking increasingly diversified.

The relative proportion of investment capabilities will shift as client demand varies through the cycle, but the business has been actively positioned to perform over time. Over the last couple of years, we've strategically repositioned our client proposition, initially through sharpening our focus across those capabilities where we can be really differentiated and, latterly, in bringing in top-quality investment teams to ensure that we can continue to deliver for our clients.

I wanted to take a look at some of these teams that we've brought in the last couple of years. The UK is, of course, our home market, and we want to ensure that when clients think of the UK and think of UK equities, that they think of Jupiter.

However material the much-discussed end of US exceptionalism turns out to be, we strongly believe in the revival of the UK active asset management industry, and we are making sure that Jupiter is at the heart of that. Having a strong UK equities capability is central to this, and having brought in a new income team led by Adrian Gosden and a dynamic team led by Alex Savvides, I believe we have one of the leading lineups in the industry.

The income team now run over £2 billion of client assets and have outperformed their benchmark and peer group since they took over the portfolios. The dynamic strategies reversed outflows in less than a year after the new team joined and have seen almost half a billion of net inflows since from both retail and institutional clients.

We are ambitious to grow our UK business and expect to capture more than our fair share of any flows into the category. If we do continue to see clients tilt their allocations away from the US, European equities is another area that is likely to benefit.

Just over a year ago, Niall Gallagher and his team joined Jupiter and have transformed our European equity capability since. Performance since arrival has been top quartile, client engagement has been very high, and we've just seen the first 6-month period of positive flow in over 6 years.

As with our UK equities business, when client demand returns to European equities, which it will, I would expect us to gather a disproportionate amount of the assets given the strength and differentiated nature of this capability. Finally, we acquired the team and assets of Origin early in 2025.

The team have an exceptional track record, being ahead of their benchmark after fees across 1, 3, 5, and 10-year periods for all of their EAFE, EM, and global smaller companies strategies. The team's AUM has increased by 60% since they joined Jupiter, and we are actively exploring ways in which we can bring their investment expertise to as wide a range of clients as possible.

For that reason, we launched an active ETF for them to manage towards the end of 2025. Jupiter has always been the home to truly active, idiosyncratic investment management, and these 4 teams are great examples of this.

All 4 have clear, repeatable investment processes, all are performing well, and all are in areas with strong growth potential. In order to ensure that we can support our investment teams and to ensure that we can deliver for both clients and shareholders, it is crucial that we have an efficient operating platform in place.

We've talked a lot in the past about taking complexity out of the business, which in many cases means finding cost efficiencies. These are not savings for savings' sake, but rather providing us with the opportunity to invest in areas that will drive future growth.

Our operating platform and the technology behind it has been a key area of investment over recent years, and we've built an efficient and leveraged operating model. We've consolidated the number of suppliers that we work with, we've outsourced our middle office, and consolidated many of our back-office activities to BNY, which brings greater efficiency to our business and an improved experience for our clients.

We've invested in technology across the group, perhaps most notably in the client group, where our teams now have deeper insights into our clients' emerging investment needs and are able to connect them more efficiently to the information required to make asset allocation decisions. We've recognized some time ago that the way in which clients invest is changing, and we act decisively to enhance the client experience.

Of course, we've been exploring the opportunities that AI presents, investing across the business to ensure that all of our teams have access to the most appropriate tools to drive efficiency and to add value. Where we've been reviewing and making changes to organizational design and business processes bottom-up, our journey has now evolved to a more strategic focus with investment in broader projects and data enablement.

Productivity and efficiency are being improved across the group, from using these tools to further enhance those strong client experience foundations I just mentioned to investment teams using AI tools to more efficiently analyze earnings releases. We're seeing high levels of take-up when it comes to using AI: nearly 90% of our people have adopted an AI tool, and more than 3/4 of our people actively engage with them each week.

It isn't just the technology play either. It's making sure we have the right people in place with the right skills to unlock these opportunities.

As Matthew has outlined, we've continued to build momentum across the business during the first half. We've delivered strong investment outcomes for clients, generated positive net flows, completed the acquisition of CCLA, which is progressing well, and, as a result, reached new highs in assets under management.

Against that backdrop, the financial results reflect a business that is growing whilst maintaining strong cost discipline. Revenue has benefited from higher average AUM, underlying management fee profitability has improved, and our balance sheet remains strong.

I'll now take you through those results in more detail, beginning with the key movements in profit. Underlying profit before tax, excluding performance fees, was up compared with the second half of 2025.

As usual, there are a few moving parts behind that result. Revenue, excluding both performance fees and CCLA, increased by nearly £17 million, driven by a 12% increase in average AUM.

Costs, again excluding performance fees and CCLA, are up, but by around 3% at less than £4 million, despite AUM-related variable costs going up with average AUM and broader inflationary impacts. For 5 months in 2026, since completion of the acquisition, CCLA has contributed over £5 million to underlying profits this half year.

Together, we delivered underlying profit before tax, excluding performance fees, of £52 million. There was £9 million of performance fee revenue, but we have made a small loss for performance fees in the period, which simply reflects deferred compensation costs from prior year earnings, together with some costs relating to this year's fees.

As a result, total underlying profit before tax, including performance fees, was nearly £51 million. Exceptional items for the first half were £15 million.

That mainly reflects the first-half charge towards the full-year cash integration costs and the amortization of acquired intangible assets, which is slightly lower than previously indicated. It also includes a loss on a forward contract used to hedge our deferred share-based compensation awards.

We've used this as an efficient economic hedge, but it does create income statement volatility. There is an accounting mismatch with the underlying liability, but there is no cash flow impact compared with the cost of the awards.

It is essentially a capital item, and we're treating it as exceptional. Aside from that, there is no change to the underlying cash costs, and I'll explain the non-cash amortization of acquired intangibles later in this presentation.

With that overview of the results, let's now look at the details, starting with AUM. Here, we're showing AUM movement across the last two 6-month periods.

As the second half of last year saw strong growth driven by both market performance and positive net flows. In the first half of this year, we reached a record high in AUM and ended June up 36% on the year-end at £73.7 billion.

That reflects the addition of CCLA, but also continued growth in the pre-existing Jupiter business. The average AUM for the pre-existing business increased to nearly £57 billion and closed at over £59 billion.

That's up nearly 10% from the year-end. CCLA AUM has remained broadly stable, ending the period at £14.6 billion.

Although the mix has shifted slightly towards money market funds, modestly reducing the average fee rate. Let's see what impact this has had on revenues for the first half.

I'm going to cover revenue in 3 parts today: first, management fees excluding CCLA, then CCLA revenues, and finally, performance fees. Excluding CCLA, management fees were up over 10% compared with the second half of last year.

That's driven by that higher average AUM. Partly offsetting this, average fee rates have softened slightly due to business mix.

CCLA contributed 5 months of revenue this year. AUM was broadly unchanged, but that change in business mix means the average fee rate is now 42 basis points.

Looking ahead, fee rates for the business as a whole will continue to depend largely on mix. Based on current expectations, I am still forecasting around 63 basis points for the pre-existing Jupiter business, with CCLA unchanged at 42 basis points for the full year.

Finally, performance fees. That £9 million for the half year is almost half the fees I estimated in February for the full year.

That's principally mandates that crystallized in March. With the potential for more fees in the second half, there is no need to update my full-year estimate today.

Turning to costs. As we completed the acquisition of CCLA this year, I'm showing costs relating to that business separately, aligned with my guidance in February.

Looking first at the pre-existing Jupiter business, costs are as expected. The compensation ratio, excluding performance fee-related costs, was 48%.

Non-compensation costs were £52 million, only slightly higher than the second half of last year, despite average AUM increasing by around 12%. About a third of our costs move broadly in line with AUM, this is another example of good cost management as we grow the business.

Of course, CCLA costs are new and reflect 5 months of ownership following the completion. Included within those costs are over £2 million of realized synergies.

There is no change to our full-year cost guidance. That's before synergies and is £32 million of compensation costs and £20 million of non-compensation costs for 11 months of ownership.

I'll return to the integration program and an update on synergy delivery shortly. With that, we are at 77% cost-income ratio against my medium-term target of 70%, excluding performance fees.

Clearly, still some way to go, but a 6 percentage point improvement on H2 2025. Of course, the target will be achieved through both cost management, including seeing that synergy saving come through, and revenue growth, which makes the timeline [hard to?]

predict, as some of that is outside of our control. I've already touched on our strong cost management, delivering the benefits of operational leverage as the business grows, and I will shortly cover the CCLA synergies.

As a reminder, I've previously highlighted that I expect our compensation ratio, excluding CCLA, to be no more than 47% for 2027. With strong growth in AUM and revenue already this year, combined with identified cost savings and ongoing work, I remain very confident we have a plan that can deliver on that cost-income target in the medium term.

Now that many of the CCLA acquisition and integration numbers are more settled, let's cover a few of the important financial metrics. Firstly, the purchase price and acquired balance sheet.

The £100 million purchase price is unchanged, and in exchange, we received just under £44 million of cash through the acquired balance sheet. That £44 million partly covers other net working capital and means we acquired net assets of £32 million.

The net assets are higher than the £26 million of net tangible assets we announced, which is now simply cash. The difference reflects future costs funded through the balance sheet.

That's standard acquisition accounting. Those funded costs are still flowing through, and this balance sheet funding covers some of those deal and integration costs, which I will come on to.

The opening balance sheet £32 million against the £100 million purchase price results in £68 million of goodwill and net intangible assets. We've now finalized the purchase accounting, and the split is £29 million of goodwill, £52 million of intangible assets, and £13 million of deferred tax liabilities.

The high proportion of intangible assets simply reflects the long-term nature of CCLA's client relationships. It means amortization will be £3.3 million this year and £3.6 million a year from 2027.

That charge will continue over the next 10 to 15 years, but, of course, it's non-cash. Before turning to synergies, the final transaction delivery item is deal and integration costs.

That's the £17 million of net cash costs we announced, net of tax and the funding I just mentioned. That's the cash we received in exchange.

There's no change here. I still expect £14 million of cash costs through exceptional items in 2026 and around £5 million in 2027, by which point integration will be complete and the costs largely recognized.

We remain on track for £17 million of net cash costs overall across mainly 2025, 2026, and 2027. To be clear, for exceptional items in your models this year, that's £14 million of cash costs plus £3.3 million of amortization and add the forward result I mentioned earlier, which is non-cash and unrelated to the acquisition.

Those cash costs are being incurred to deliver the integrated business and realize those synergy savings. As a reminder, our original target was at least £16 million of annualized savings, fully delivered on a run-rate basis by the end of 2027 at the latest.

We've made very strong progress, having already locked in our original savings target, but to emerge across 2026 and 2027. Around £8 million of those savings will now come through in the 2026 results, almost double the level I indicated in February, with most of the rest in 2027.

I'm also increasing our minimum target from £16 million to £17 million, again on a run-rate basis by the end of 2027. As with efficiencies across our existing business, we'll continue challenging every cost, ensuring every pound earns its place or is removed.

All of these details are set out alongside our other guidance at the back of your packs. To repeat, the integration program is progressing well, giving me confidence to raise our target while keeping clients' interests at the center of our approach.

My final update is on capital and shareholder distributions. The interim dividend remains fully aligned with our policy of distributing 50% of underlying EPS, excluding performance fees.

With underlying EPS of 7.4 pence, the board has approved an interim dividend of 3.7 pence per share. After allowing for the dividend and the remaining share buyback program, which we announced in February and where we have already acquired around £15 million of shares, our capital position remains very strong.

We have now finalized our regulatory capital requirement following the acquisition, which is lower than the pro forma estimate I provided at the year-end. As a result, we currently hold £173 million of surplus capital, and we have a regulatory coverage ratio of 3.5 times.

Of course, that forward contract I mentioned earlier, which is hedging employee bonus awards, does not fully reduce capital until it matures in H1 next year. If that had been a deduction at 30 June 2026, the coverage ratio would have been lower at about 2.9 times.

Still strong, but lower than reported today. For now, the key message on capital overall is simple: our balance sheet is strong, and surplus capital will either be invested for growth or returned to shareholders at the appropriate time.

To sum up, the business has continued to build momentum with record AUM and strong underlying growth. Cost discipline remains a key strength, supporting operating leverage as revenues grow.

The CCLA integration is progressing ahead of plan, with the original synergy saving target already secured and my announcement of an increase to the minimum target. Capital remains robust, providing flexibility to invest, grow, and create value for shareholders.

Overall, we enter the second half of the year from a position of strength and with confidence in delivering on our strategic objectives.

Thank you, Wayne. Before we move on to questions, I wanted to wrap up by taking a now customary look at our strategic objectives.

I will not dwell on these today, but I did want to remind you that all the management decisions that we take are guided and are informed by these 4 objectives. Our increase in scale over the period is self-evident, improving not just our assets under management, but through our efficient operating platform, the profitability of those assets.

We have a good track record of taking complexity out of the business, and we've again demonstrated that today with the further synergy savings. Again, a positive start to the year and one in which we have continued to build on that momentum across the group.

Gross flows are exceptionally strong, and we've again reported positive net inflows. The second quarter was a little more challenging in terms of client risk appetite, but the business has proved to be resilient, and the signs for the back end of the year, while tentative, are encouraging.

Investment performance is looking strong, and some of those newer teams are performing particularly well and are seeing high levels of client engagement. We've made progress towards our strategic objectives, building scale and removing complexity, which is evident in the improved financial results we published today.

As we move into the second half, Jupiter remains well placed to continue to deliver for our clients and for our shareholders. With that, I'm going to hand over to Alex James, our Head of Corporate Affairs, to help us answer any questions that you may have.

Alex?

Thank you, Matt and Wayne. We have a few questions coming in already.

Firstly, one for Wayne on CCLA and in terms of synergies. Could you outline where these additional synergies are coming from and how you've been able to accelerate these?

Of course. Good question.

Look, we obviously announced the transaction and the acquisition about this time last year, a full year. Obviously, there's so much work that we can do prior to completion, which was on the 2nd of February.

Since then, obviously, we've directed a lot of our resources to make sure that we integrate that business well. We've taken actions where we can, and some of those have happened ahead of schedule.

It's across a number of areas, across suppliers that we've been able to integrate more quickly, but overall savings across every aspect of the business, which obviously is a sign that we're bringing the businesses together quicker than we originally anticipated. I think overall a very strong financial outcome, but representative of how well we're integrating the businesses.

Thank you very much. Matt, on capital, there's clearly significant surplus capital.

Your views on the use of that in terms of potential M&A or whether shareholders anticipate a further capital return with the full-year results?

Our position there remains consistent as we previously articulated. Look, we're very excited by the opportunities we have to grow our business organically, and I think you're starting to see the benefits of that come through in today's results.

We're also very open-minded to the opportunities that might come to supplement that organic growth with inorganic growth opportunities, and we continue to evaluate a range of differentiated investment capabilities on a very regular basis. That we have only really made 2 acquisitions in recent years tells you how careful, thoughtful, and judicious we are in thinking about deploying that capital.

Absent any opportunity to deploy that capital thoughtfully and accretively and to enhance us strategically, then as we demonstrated in recent years, we'll return that capital to our shareholders.

Thank you. Two more for Wayne.

Firstly, on CCLA, in terms of money market flows, money market we're not including within those group flows, can we disclose how much of that CCLA AUM was in money market funds at the period end? Secondly, on performance fees, we said that we have no change to expectations of £20 million of performance fees, but there is a slide towards the end of the pack that said were they to have crystallized at the end of June, it would have been closer to £30 million.

I wonder if you could sort of explain the rationale behind that.

Of course. I'm happy to take both of those.

Look, firstly, the money market funds, I think it's disclosed in your packs, actually. I think it's £4.6 billion at the period end.

You can see that obviously we don't, as you've mentioned, we don't include the flows. That just reflects the movements you generally see within money market businesses.

I think it's important to show the AUM at the end, and I've just mentioned that number. In terms of performance, yeah, look, in February, I think I said something around extrapolating from historic performance based on the AUM we have today that can generate performance fees.

That continues to be my approach. Through the first half of this year, a large part of the crystallized fees comes from mandates which crystallized in the first half.

That's typically on a segregated mandate side. In the second half, the fees generally come from our funds.

Through the first half of this year, we've had periods where the fees have been very high. That happens to be the case at the end of June.

We've also had periods where they haven't been quite as high. Look, it's very difficult for me to predict at any point in the year, specifically at the beginning or even indeed at the half year.

I still think that £20 million is a reasonable expectation for this year. Of course, it could be higher or indeed it could be no more than we've earned today.

Thank you, Wayne. Matt, two more questions for you.

One on performance, clearly strong investment performance overall, but slightly softer on the CCLA side. I wonder if you could go into a little bit more detail about what is happening, what the active steps to improve that is, and secondly, whether you can provide any sort of outlook for the second half of the year in terms of overall flows.

Yeah. I'll take those one by one.

In terms of investment performance, obviously very strong across the pre-existing Jupiter range, as we discussed. Softer within the CCLA funds.

That's not a surprise to us given the style of the investment team at CCLA. That was consistent with our expectations at the time of the acquisition, and that's carried on through 2026.

That all said, as the 2 groups have become closer together, we have made some changes to the CCLA investment approach, increasingly as the 2 teams are talking more, we're seeing increased collaboration across the group, and therefore the composition of the CCLA funds has started to evolve as well, with traditional Jupiter and non-Jupiter-based investment expertise being reflected in those investment decisions. Whilst very early signs, there are positive signs that that is helping and improving investment performance.

We remain optimistic about the opportunities to grow that business over time as performance inevitably recovers. In terms of flow outlook for the rest of the year, clearly very hard to predict at this stage.

I think we all recognize that the first 2 months of the year started very strongly with a very noticeable pause, also a dampening of sentiment as the war in the Middle East took hold. I think there were some tentative signs of things looking a little bit better in recent weeks.

Obviously, the oil price has risen quite substantially in the last couple of weeks, to be very short term about things, and therefore how that plays in the second half of the year, given the very strong start to the year and the sort of damped sentiment in recent months, and then those tentative signs, it makes it very hard to tell. What I do know is across the business, our investment teams have been taking advantage of that volatility in marketplaces.

Investment performance is strong. We know we have capabilities that do align with client needs, and so, look, we know that we're doing all the things that we can do to help set ourselves up for success in the second half of the year, but clearly sentiment is going to be a big driver of the outcome.

There's no more questions at this time, thank you very much.

Look, it just remains for me just to say thank you very much to all of our shareholders for your ongoing support and engagement. Thank you for your time today, and for those of you based in the Northern Hemisphere, I wish you an enjoyable, pleasant, and relaxing summer.

Thank you.