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Highlights:

  • JUP announces GBP 100 million acquisition of CCLA Investment Management, subject to regulatory approval
  • JUP to expand UK market presence and gain GBP 15 billion in AUM
  • JUP shares rise 11.44% on 10 July 2025 following acquisition and capital return update

Jupiter Fund Management plc (LSE:JUP) has agreed to acquire CCLA Investment Management Limited (CCLA), a UK-based asset manager serving non-profit organisations, for £100 million in cash. The deal is pending regulatory approval and is expected to close before the end of 2025. The acquisition is intended to support Jupiter’s strategy of increasing scale within the UK market and opens a new client channel through CCLA’s specialist focus on charities, religious institutions, and local authorities.

CCLA currently manages over GBP 15 billion in assets, making it the UK’s largest asset manager dedicated to the non-profit sector. Following completion, Jupiter’s total assets under management (AUM) will rise to approximately GBP 59 billion, with nearly 75% sourced from UK-based clients. The acquisition will be funded entirely from Jupiter’s existing cash resources and will not involve new equity or debt issuance.

Jupiter stated that CCLA’s investment teams and client service model will remain intact post-acquisition to ensure continuity for clients. A purchase price adjustment mechanism is included to account for any changes in CCLA’s run-rate revenues between signing and completion.

Financially, Jupiter expects the acquisition to be accretive to management fee earnings per share from the first day. Annual cost synergies are targeted at GBP 16 million by 2027. Realising these savings will require one-off costs of around  GBP 17 million over the next four years. CCLA is expected to contribute approximately GBP 66 million in revenue and GBP 13 million in operating earnings for the year ending 31 March 2025. Its clients include some with long-standing relationships dating back to the company’s founding in 1958.

CCLA’s multi-asset platform and consistent net inflows averaging a compound annual growth rate (CAGR) of over 10% since 2015 are seen as complementary to Jupiter’s current capabilities. The acquisition also brings a stable client base with relatively low turnover compared to peers, which Jupiter views as strategically aligned with its broader ambitions in responsible investing and UK-focused asset management.

The deal follows Jupiter’s earlier announcement on 22 May 2025 regarding further cost-efficiency measures. Combined with CCLA’s integration, the group remains committed to achieving a medium-term cost-to-income ratio target of 70%.

Jupiter also updated its capital allocation framework alongside the acquisition news. In addition to its ordinary dividend, set at 50% of pre-performance fee earnings, the Group plans to return 50% of FY25 performance fee-related revenue via a special dividend or share buyback. As of 31 May 2025, performance fee revenue stood at GBP 54 million.

Jupiter will maintain its ongoing share buyback programme covering up to 3% of issued share capital. Post-acquisition, the company expects to retain a regulatory capital ratio of over 2.5x its minimum requirement.

Shares of Jupiter Fund Management rose by 11.44% on 10 July 2025 to trade at GBX 120.80 per share.