Jupiter Fund Management has extended its share buyback programme after it fell short of maximum allowance target.
The firm announced on 24 October that it was initiating a programme to buyback up to £10m in shares, as part of the company's target to return at least 70% of underlying earnings per share for 2021 and 2022.
Jupiter initiates share buyback as AUM takes hit despite slowing outflows
The original end date was set for 31 December 2022, by which point the firm estimated it would have completed its operation, but in an RNS post today (22 December) the company said it had only repurchased about £8m in total, or 6,673,459 ordinary shares.
In the statement, it said: "The company confirms that the programme will be extended and will continue beyond 31 December 2022, until such time as the total amount spent on purchasing ordinary shares under the programme is as near as practicable to the previously announced maximum consideration of £10m."
It added that no other changes had been made to the original outline.
The fund house has experienced an exceptionally rough ride in what has been a generally difficult year for markets, as it has experienced consistent outflows which have hurt total assets under management.
In its Q3 update, the firm accounted net outflows of £0.6bn for the quarter, a slowdown from £2bn in the second quarter and £1.6bn in the first quarter of the year.
The firm's new CEO Matthew Beesley has announced tough plans to get the firm back in shape, stating that around 25% of Jupiter's funds will be merged, closed or repositioned.
Additionally, the CEO is rolling out a 'restructuring plan' that will see around a 15% reduction in the company's headcount.
Already, several high-profile figures have exited the business, some as a consequence of the restructuring.
Jupiter has been contacted for comment.
