Jupiter deal means £100m payday for Church of England charities
CCLA is one of the biggest players in so-called purpose-led investment, shunning investment in tobacco, biological weapons and oppressive regimes and trying to nudge companies into better compliance in areas such as emissions targets, anti-slavery rules and tackling obesity.
Jupiter said the deal would gain it £15 billion in assets, boosting its total assets under management by one third to £59 billion, and pledged not to alter the CCLA investment philosophy.
Shares in the FTSE 250 fund manager, which has been plagued by net client outflows for years, rose more than 12 per cent as the company said the deal would deliver cost savings of £16 million a year by the end of 2027.
Matt Beesley, chief executive, said the values-based approach of CCLA would not change. 'We're preserving the CCLA brand and investment teams, including the sustainability team,' he said.
Jupiter has not traded heavily on value-based investment but it was a pioneer of environmental investing and set up the Jupiter Ecology Fund in 1988.
Peter Hugh Smith, chief executive of CCLA, said the decision to sell was driven by 'an increasingly complex governance position' because the ownership of CCLA was through funds managed by CCLA.
Current and former directors of CCLA own 7.6 per cent of the business, suggesting they are in line for cash proceeds of £7.6 million. Employees own 3 per cent, directly and through staff share plans.
The need for scale was also a factor because of escalating costs and more onerous regulation, he said. 'Being part of a bigger group has become more important.' He said there would be no change in the philosophy of CCLA and its influence as part of a larger group might even be enhanced. 'It gives us a bigger stick,' he said.
CCLA traces its roots back to the Church of England Investment Fund in 1958 and formally joined forces with funds owned by charities and councils to form Churches, Charities and Local Authorities Investment Management in 1987.
It manages the assets of 12,000 Church of England bodies, including cathedrals and parishes. It also runs money for Roman Catholic church entities as well as charities, local councils and individuals. CofE entities own 54 per cent of it.
It has recently reinforced the importance of ESG (investment guided by environmental, social and governance factors) in the face of a Trump-led backlash, which has led other asset managers to play down their sustainability efforts.
It has over the years named and nudged dozens of companies, it argues, that have not done enough to meet its 'Good Investment' standards, including Unilever, Shell, Rio Tinto and Amazon. It recently rebuked McDonald's for not doing enough to stamp out slavery.
Beesley acknowledged that asset management mergers often disappointed: 'You upset clients, you lose assets. What is so attractive here is that there is no overlap in investment teams or clients.
'I think our underlying business is gaining momentum. This deal will accelerate that momentum.'
Unlike Jupiter, CCLA has had positive inflows from new and existing clients in each of the past three years and reported cumulative net inflows of £4.3 billion since 2015. In the year to March it generated £66 million of revenue and just under £13 million of underlying operating earnings. It employs 184 people and has not ruled out job losses.
Jupiter also announced a tweak to its dividend policy, saying that it would pay out 50 per cent of performance fee-related revenue generated in respect of FY 2025 in the form of a special dividend or an additional share buyback or both.
The shares were last trading at 122p, up 13 per cent. Analysts said the deal could enhance Jupiter's earnings per share by as much 40 per cent by 2027.
Stuart Duncan, at Peel Hunt, said: 'We believe this acquisition represents a sensible use of excess capital, and the additional capital return should be well received.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
2 minutes ago
- The Independent
Starmer to raise Gaza ceasefire and UK steel tariffs in Trump meeting
Sir Keir Starmer is expected to raise the prospect of reviving ceasefire talks between Israel and Hamas and the future of tariffs on British steel as he meets Donald Trump in Scotland. The Prime Minister will travel to Ayrshire, where the US president is staying at his Turnberry golf resort, for wide-ranging discussions on trade and the Middle East as international alarm grows over starvation in Gaza. The two leaders have built a rapport on the world stage despite their differing political backgrounds, with Mr Trump praising Sir Keir for doing a 'very good job' in office ahead of their talks on Monday. But humanitarian conditions in Gaza and uncertainty over US import taxes on key British goods in America threaten to complicate their bilateral meeting. Peace talks in the Middle East came to a standstill last week after Washington and Israel recalled negotiating teams from Qatar, with White House special envoy Steve Witkoff blaming Hamas for a 'lack of desire' to reach an agreement. Since then, Israel has promised military pauses in three populated areas of Gaza to allow designated UN convoys of aid to reach desperate Palestinians. But the UK, which is joining efforts to airdrop aid into the enclave and evacuate children in need of medical assistance, has said that access to supplies must be 'urgently' widened. In his talks with Mr Trump, Sir Keir will 'welcome the President's administration working with partners in Qatar and Egypt to bring about a ceasefire in Gaza', Number 10 said. 'He will discuss further with him what more can be done to secure the ceasefire urgently, bring an end to the unspeakable suffering and starvation in Gaza and free the hostages who have been held so cruelly for so long.' Scotland's First Minister John Swinney, who will also meet the president during his five day visit to the country, said he would urge Mr Trump to apply pressure on Israel to agree to a lasting ceasefire and allow more humanitarian aid into Gaza. 'I think what's important is that we focus on the solutions that are required now, and the absolutely immediate situation is a necessity for a ceasefire and for humanitarian aid to need to flow into Gaza so that the people of Gaza can be saved from the starvation that they face,' Mr Swinney told BBC Breakfast. 'And that is the blunt human reality of the situation that we face, and there must be an intensification of pressure on Israel. 'And I think President Trump is ideally positioned. In fact, he's perhaps uniquely positioned to apply that pressure to Israel to ensure that there is safe passage for humanitarian aid to support the people of Gaza, who face an absolutely unbearable set of circumstances as a consequence of the conflict. 'And a key part of that must be the application of a durable ceasefire, the flow of humanitarian aid and the progress towards a two state solution in the Middle East.' The Prime Minister and US president will also talk 'one-on-one about advancing implementation of the landmark Economic Prosperity Deal so that Britons and Americans can benefit from boosted trade links between their two countries', it said. The agreement signed at the G7 summit last month slashed trade barriers on goods from both countries. But tariffs for the steel industry, which is of key economic importance to the UK, were left to stand at 25% rather than falling to zero as originally agreed. Concerns had previously been raised that the sector could face a levy of up to 50% – the US's global rate – unless a further agreement was made by July 9, when Mr Trump said he would start implementing import taxes on America's trading partners. But that deadline has been and gone without any concrete update on the status of UK steel. Downing Street said that both sides are working 'at pace' to 'go further to deliver benefits to working people on both sides of the Atlantic' and to give UK industry 'the security it needs'. Mr Swinney said he would use his meeting with President Trump to press him to exempt Scotch whisky from US trade tariffs. The First Minister said the 'uniqueness' of whisky made in Scotland justified the exemption from the 10% tariff applied on UK exports into the US. Sir Keir and Mr Trump are also expected to discuss the war in Ukraine, which Number 10 said would include 'applying pressure' on Vladimir Putin to end the invasion, before travelling on together for a private engagement in Aberdeen. It comes after Mr Trump announced he had agreed 'the biggest deal ever made' between the US and the European Union after meeting Ursula von der Leyen for high-stakes talks at Turnberry on Sunday. After a day playing golf, the US leader met the President of the EU Commission to hammer out the broad terms of an agreement that will subject the bloc to 15% tariffs on most of its goods entering America. This is lower than a 30% levy previously threatened by the US president. The agreement will include 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals, as well as EU purchases of US energy worth 750 billion dollars (£558 billion) over three years. Speaking to journalists on Sunday about his meeting with Sir Keir, Mr Trump said: 'We're meeting about a lot of things. We have our trade deal and it's been a great deal. 'It's good for us. It's good for them and good for us. I think the UK is very happy, they've been trying for 12 years to get it and they got it, and it's a great trade deal for both, works out very well. 'We'll be discussing that. I think we're going to be discussing a lot about Israel. 'They're very much involved in terms of wanting something to happen. 'He's doing a very good job, by the way.' Mr Trump's private trip to the UK comes ahead of a planned state visit in September.
Auto Car
2 minutes ago
- Auto Car
Electric Citroën C5 Aircross undercuts Skoda Enyaq at £34,065
The new Citroën ë-C5 Aircross has gone on sale, priced from £34,065, undercutting key rivals such as the Skoda Enyaq by £5000. The SUV was revealed in April with a bold new design language and the option of electric power for the first time, as the French brand renews its assault on Europe's crucial crossover market. The new C5 also goes on sale with combustion-engined power from £30,495. That starting price is £2000 more than the car it replaces and puts it in the same bracket as rivals such as the new Mazda CX-5 and Nissan Qashqai. The range starts in base You! trim, which includes a 13in touchscreen with built-in navigation, wireless phone charger, adaptive cruise control and 18in alloys. Pricing tops out in Max trim at £35,775 for the ICE model and £39,345 for the EV. This adds premium materials, a larger head-up display, heated front seat and steering wheel, electric tailgate and a heatpump for the EV. Prices for the EV could drop by as much as £3750 if the model is eligible for the UK government's new electric car grant - eligible cars will be named on 11 August. Based on parent company Stellantis's new STLA Medium architecture (as used by the Peugeot 3008 and Vauxhall Grandland), the second-generation C5 Aircross is the flagship of an overhauled Citroën line-up and sits above recently refreshed and renewed versions of the Ami, C3 and C4. At launch, the C5 Aircross is offered as either a 143bhp hybrid (which pairs a 1.2-litre three-cylinder petrol engine with a small electric motor) or a 207bhp EV with a 73kWh battery giving 322 miles of range (or 321 miles in Max guise). After launch, two other powertrains will be offered. One is a plug-in hybrid set-up that pairs a 1.6-litre four-cylinder petrol engine with an electric motor and a 21kWh battery for 193bhp and 53 miles of engine-off driving. The other is a 227bhp EV that uses a larger 97kWh pack to offer 421 miles of range. DESIGN As promised to Autocar by designer Pierre Leclerq, the production version of the new C5 Aircross stays true to the bold concept car that was revealed last year at the Paris motor show. It retains the minimalistic two-box silhouette of the previous C5 Aircross but features a wide-reaching focus on aerodynamics in a bid to increase efficiency.
The Independent
2 minutes ago
- The Independent
Almost 50,000 firms near collapse amid ‘immense strain' from tax hike
Nearly 50,000 UK companies are on the brink of collapse with retailers and hospitality firms among the hardest hit as rising wage costs due to budget measures put small firms under 'immense strain', according to a report. The latest Begbies Traynor red flag alert found that firms in critical financial distress rose by more than a fifth – 21.4% – year-on-year to 49,309 in the second quarter. Consumer-facing industries saw some of the most 'extreme' rises in critical financial distress, with a 41.7% surge among bars and restaurants, a 39% leap for travel and tourism and 17.8% jump for general retailers. Begbies warned that many independent pubs will not have the scale to withstand the pressures for another year without action. Ric Traynor, executive chairman of Begbies Traynor, said: 'The sharp rise in critical distress underscores just how tough the economic environment is for UK businesses and it's abundantly clear that tens of thousands of firms are struggling to stay afloat. 'Small and medium sized businesses across the UK are being put under immense strain by the recent increases to employer's NI as well as the increase to the national minimum wage. 'With limited financial headroom to absorb rising costs, many businesses are now reaching a tipping point.' It is the latest sign of the toll taken on many firms by the Government's move in last autumn's budget to increase national insurance contributions (NICs) and hike the minimum wage, both taking effect in April. Labour-intense companies in particular have felt the impact, such as retailers and restaurants and bars. Troubles in the sector have been compounded by a pull back in consumer spending, according to Begbies. Julie Palmer, a partner at Begbies Traynor, said: ' Households are still grappling with their finances, and this is keeping consumer confidence volatile. 'The knock-on effect of this is clear to see in the consumer-facing sectors where margins are thin, growth is hard to come by, and the impact of higher employee costs is pushing many businesses to the brink of collapse. 'So, it is of no surprise to me that while larger pub groups might be performing well, by squeezing out extra efficiencies to counteract onerous price rises, many independent players won't have the scale to withstand the pressures of this environment for another 12 months if nothing improves.' The British Beer and Pub Association (BBPA) recently estimated that 378 pubs will close this year across England, Wales and Scotland, which it said would amount to more than 5,600 direct job losses. The wider economy is also showing signs of strain, with recent official figures revealing gross domestic product shrank by 0.1% in May, following a 0.3% drop in April. 'With no end in sight to the current economic malaise, I fear the financial burdens companies are enduring at present are simply too high for many not to avoid collapse,' said Ms Palmer.
