I know it's a busy day within a busy week for companies reporting, so I appreciate you all being here in person or for joining via the webcast. I will go through some of the key highlights for our first half results, including some of the details of the flows and progress on our strategy, and Wayne will then cover some of the more details on the financials. We will, of course, then open up the questions, both from within the room, but also on the webcast. You can see on the slide some of the key metrics for the first half of the year. Wayne will go through the financial ones in more detail, so I won't dwell on these.
Overall, I would say this has been a relatively good start to the year within the context of a market backdrop and macro environment that remains uncertain and challenging. Although net revenue is down, we reported underlying profits of GBP 46 million, which is up from GBP 30 million for the first half of 2022, with EPS equally up close to 60% to six point seven pence per share. We've also delivered positive net flows for the first six months of the year, albeit only very slightly positive, thanks to the ongoing growth through the institutional channel. AUM ended the period at GBP 51.4 billion.
I'll go into the details here in just a moment. These positive flows mean that we've delivered a small amount of net positive inflows from clients over a 12-month period, from the end of June last year until now, for the first time since 2017. We know we still face challenges, and the market backdrop is hard to forecast, but this is a positive step in the right direction. Investment performance is also improving relative to previous periods, with 52% of mutual fund AUM outperforming over a three-year period and 58% over the last five-year period. I'll talk about the drivers of that shortly. Finally, on this slide, I wanted to touch on our capital returns. Our new dividend policy of paying out 50% of pre-performance fee earnings results in an ordinary interim dividend of GBP 0.035 per share.
We've also announced a special dividend today of two point nine pence per share to replace the remainder of the share buyback we did not complete. In doing so, honor the commitments we made previously in terms of shareholder returns. To briefly look at investment performance, the numbers here have improved compared to both the first half of last year and since we last reported at the year-end. We are still not where we want to be. We accept that as an active manager, high conviction active manager, there will be volatility in these numbers. Indeed, if you look at the underlying figures, the story is similar to that at the end of the year. In February, we noted that these aggregate performance numbers were being skewed lower by three of our larger funds. That is, unconstrained fixed income, European equities, and U.K. mid-cap equities.
If we look across all of our largest funds, and we have 12 funds over GBP 1 billion in AUM, of these, eight are above the median over the key three-year period. This bodes well for our future asset gathering potential. To move on and look at flows in a little bit more detail, as in previous periods, we continue to see strong momentum in gross flows, with just over GBP 7.5 billion across all channels. It was another positive period for the institutional channel again, with over GBP 2 billion of gross flows. On the retail side, despite the well-publicized headwinds, we still generated gross flows of GBP 5.5 billion. In the U.K., we've been in the top 10 for gross sales for the last two quarters.
The U.K. remains a really important market for us, and we're encouraged by this consistency of gross flow, and we believe that in time, we can return to net positive flow in this channel. On the net side, again, you can see the turnaround in momentum. We generated net positive sales in the first half of the year, albeit marginally so. That means we've seen net positive flows from clients for the last two half-year reporting periods. As mentioned earlier, this is now the first discrete 12-month period of positive flows for six years, and that is testament to all the hard work from our people, not just in the last nine months as my tenure as CEO, but also for the years of work before that to get to where we are today.
To look in a bit more detail, the retail side is still clearly lagging, with GBP 1.7 billion out in H1 2023. We did see some region improvements here, however. Latin America, U.S. Offshore, and Asia Pacific were all regions that saw net positive flow. U.K. retail improved in the second quarter after a difficult start to the year, but still accounted for most of our net outflows. These continued to be from the same areas we've spoken about before, which remain out of client demand, such as U.K. and European equities, and the Merlin Fund to Fund range, despite the latter's good performance. Elsewhere, our range of global strategies collected over GBP 600 million of net inflows in the period, and importantly, Dynamic Bond has returned to small positive flows in each of the last two quarters.
The real driver of the success over this period has again been on the institutional side, with GBP 1.7 billion of net inflows, or GBP 3.5 billion over the last 12 months. We've had a number of mandates fund this half, with a diversity of client geography and investment strategy, a notable feature. We believe this is sustainable. Very encouragingly, in the most recent period, the pipeline has been replenished as these mandates have funded. Although I won't be updating this statistic at every reporting period, I wanted to share with you today that our late-stage pipeline currently sits at GBP 1.5 billion, and it is well diversified by client, by region, and by investment strategy.
Of course, there's an enormous degree of variability as to the extent to which this will turn into net client new money and when, but it is not unreasonable to expect a 40%-60% conversion rate of this pipeline over the next 12 months. We said before, success will not be linear, but we hope and expect to generate more flows in the medium term. I'm definitely not calling the bottom here, but there are reasons to be optimistic looking forward. I'll talk more about our institutional business in a short while, but for now, I'll hand over to Wayne to talk you through the financials.
Thank you, Matt. Good morning, everyone. As usual, I'm going to take you through the results for the six months to 30 June, an update on my guidance on the outlook for the rest of the year, and with a focus on the strong capital position, expand on the returns of capital we announced today. Let's start with some key headlines. Net revenue is GBP 181 million, which includes GBP 0.4 million of performance fees at this stage in the year. With overall costs for the year better than my expectations in February and higher interest income compared to last year, underlying profits were GBP 46 million. Exceptional items are in line with guidance, resulting in statutory profits of GBP 35 million. Our underlying EPS is six point seven pence, and that's seven point one pence before performance fees.
We've today announced total dividends of six point four pence, payable in September. Let's start by looking at how that profit progression has emerged. Underlying profits in the second half of last year, excluding performance fees, were GBP 47.3 million. Management fee revenue reduced by GBP 5 million, in line with expectations. With our cost focus and the restructuring program last year, our total costs were down GBP 4 million in H1 2023. We had a small net profit in our C portfolio and higher interest income as we managed our liquid assets carefully in a higher interest rate environment. Combined, this increased profits by GBP 3 million. For interest income, this is around GBP 1 million higher than H2 2022, and it might be higher again for the second half of the year.
Maybe GBP 4 million-GBP 5 million of interest income for the full year before our normal interest costs. That resulted in underlying profit before tax for the six months before performance fees of GBP 49.5 million, and GBP 46.4 million, including the net impact of performance fee associated revenues and costs. Exceptional items were GBP 12 million and will be around GBP 21 million for the full year. That's unchanged from my previous guidance and takes us to statutory profits for the half year of GBP 35 million. I'll go into a bit more detail and provide some further guidance in just a moment. First, let's look at the movement in one of the drivers of revenue, AUM. As usual, I've shown the movement over the past two six-month periods.
We reported growth in AUM in H2 2022, with some improvement in markets, as well as modest inflows driven by institutional clients. Coming to this last six months, we've seen the same again with the flows that Matt outlined. Market growth has continued, and we're seeing momentum from institutional clients, offset by continued outflows from retail and wholesale business, albeit at a slower rate in Q2. That has led to AUM at the end of June of GBP 51.4 billion, a 2% increase to the beginning of the year. How has this impacted our management fee revenue for the period, and what is the outlook? Revenue and fee margins are in line with my expectations.
You can see from the slides that shifting our business mix towards institutional clients over the past 12 months has led to a reduction in revenues, and that has been partially offset by an increase from markets, again, in both the last half of 2022 and the first half of this year, with average AUM up around one and a half billion pounds. This reduction in revenue is driven by lower revenue margins. The success in our strategic focus of changing the business mix towards institutional clients has inevitably led to lower revenue margins and a reduction in revenue. At the half year, the average fee margin is around 71 basis points. That's down from 74 basis points for H2 2022 and is in line with our guidance.
I've always said that we're comfortable with revenue margin declines as we build out scale across our institutional business, and that is what we expected and what we have seen in the period. Of course, we had large institutional inflows in June, which has had no significant impact on average revenue, sorry, average AUM or revenues so far. Combined with our expectations of further growth in that channel in the second half, my expectation now is that the fee margin will be 69 basis points on average for the year as a whole. With current market levels and retail investor appetite, we have not yet achieved that growth in absolute revenues, but there's clearly momentum building in our institutional channel, as well as other parts of our business, where we're looking to build scale and where we continue to focus specific resources.
Net revenue for the six-month period was GBP 181 million. While some of these newer mandates do have performance fee potential, that's for future years. For now, my guidance here is unchanged at between GBP 5 million-GBP 10 million for 2023, although these are always very difficult to estimate. Our focus on broadening our appeal to clients is paying off through flows, and as we build momentum, we expect that to lead to growth in absolute revenues before any broader market impacts. With revenue down in the short term and our strategic focus, let's cover how we've been thinking about costs. This is the normal summary of total expenses, along with some key ratios. As you recall, I spent some time in February explaining both the savings we have made as well as the investments that we continue to make.
I announced GBP 20 million of savings, split equally across both our planned expenditure in fixed staff costs and non-compensation costs, which we achieved last year. For fixed staff costs, you can see that we are significantly down on H2 2022, despite the inflationary pressures. Our total compensation ratio, excluding performance fee-related costs, is in line with guidance. The performance fee-related cost, that's the deferred part relating to prior year fee income, has simply changed by revaluations. That changes the timing, not the total cost. Our expectation of future costs on fees already earned, based on current market values, is included in your packs. The overall picture, excluding performance fees, means we've returned to a better weighting of variable to fixed costs. Turning to non-compensation costs, we've made savings here, too.
We continue to focus on good cost control, my guidance for 2023 was for just a small incremental increase compared with last year. Six months in, my outlook now for the full year is an improvement to this, with costs down to GBP 114 million. This is, of course, dependent on a number of factors, including market levels, but is now a little better than 2022. As a reminder, our total costs include ongoing investment that support our organic growth. That's around 19% of total costs, excluding performance fee related. This includes areas where we can build greater scale in investment capabilities, regions, and client channels. Through this investment for growth, building scale in targeted areas, combined with our focus on removing undue complexity, we are confident that we will deliver lower cost ratios in the future, despite the well-known headwinds.
Moving on to our capital position. Our regulatory capital surplus at the end of June has increased to GBP 147 million. That's up over GBP 30 million from the year end and means our regulatory capital requirements are three times covered. That's two point eight times covered if I remove the subordinated debt from our available capital resources. I've always told you that I expected the requirement to come down in the future. That's around GBP 72 million today. Whilst I'm appropriately cautious on how the requirements might evolve and how much surplus we should retain, we have plenty of scope to consider capital opportunities.
You can see on the right of the slide our capital allocation framework. Matt and I have spoken previously about the areas where we have made organic investments. That mainly comes through our income statement, with costs today that are driving growth in specific scalable areas. We're comfortable this is at the right level at this time. Some of our capital resources are invested in seeding funds, which is at low levels in June compared to historic norms, as we prepare for the launch of the thematic funds and other products later in the year. Our new ordinary dividend policy is very simple. We are simply paying 50% of underlying EPS before performance fees. That's GBP 0.035 announced today on our underlying EPS pre-performance fees of GBP 0.071. When capital levels allow, we consider firstly inorganic options.
That's acquisitions to accelerate growth in scalable areas or leveraging our model to bring in new business opportunities. Secondly, additional returns of capital. In January, we completed a GBP 10 million share buyback program. In February, we announced a further GBP 16 million program that would have honored commitments made under our previous capital allocation framework. As you know, we weren't able to complete that buyback. We remain committed to returning the capital we promised. Today, we announced a special dividend of two point nine pence, payable in September, which is equivalent to that same GBP 16 million. Both the ordinary and special dividends we have announced today are already deducted from the capital surplus shown on the slide.
The strong capital position we have today, even after the deduction of subordinated debt, which is repayable in 2025, gives us some flexibility to consider capital options for the benefit of shareholders, with any additional returns of capital normally announced in February. In summary, we've made a good start to the year, with financial performance a little better than market expectations. We have maintained focus on all the controllable aspects of our business, with investment in key areas of growth and a disciplined approach to removing undue complexity. Our capital position is strong and provides us with some flexibility to consider our options, which includes the dividends we announced today. With that, I'm gonna hand you back to Matt, who will talk through some key strategic highlights.
Thank you, Wayne. I first introduced this slide at the full year results in February, and it's one we will keep coming back to. The future success of this business will be defined by how we increase scale, how we decrease undue complexity, how we broaden our appeal to clients, and how we deepen relationships with all stakeholders. All of which will help us deliver on our ultimate purpose: to create a better future for our clients with our active investment excellence. Every decision that we take in managing this business, every action we take, is through the lens of the impact it will have as relates to these four strategic goals. Let me now quickly run through and detail the progress we've made in each of these over the last few months.
I've said before that the focus on increasing scale is the most important of the four objectives, that remains the case. Our ability to increase scale of the business will be key to our future success. It's clear that we are enjoying ongoing momentum in institutional business. You can see that in the flows, but also right across the metrics that we look at to measure success. Consultant ratings continue to grow and are now at 20, up from 18 when we last spoke to you. We've seen net inflows from institutional clients over the last 12 months of over GBP 3.5 billion, and AUM has grown to GBP 9 billion, or 80% of our business, all of which are at record levels.
As I said earlier, we do not believe these are one-offs, but instead reflective of the momentum that we are building with a broader array of clients. It's not just the actual flows that gives us confidence, but also the size of the opportunity as success begets more success. In 2021, the average institutional mandate that we won was under GBP 100 million. In 2022, this more than doubled to over GBP 250 million. Again, so far in 2023, it has doubled again to over GBP 500 million. Clearly, that's not a trend that we're going to see indefinitely, but it speaks to the journey that we've already gone on to get to where we are today. Our international business also continues to develop and now accounts for 36% of total AUM.
Indeed, much of the institutional flows have been from overseas clients, with GBP 2 billion of net inflows generated in the first half of this year from these clients who are based outside of the U.K. At the full year, I used Germany and Italy as two examples of where we would prioritize and focus, but made it clear that as with the institutional channel, success would not be in a straight line. While Germany has had a more challenging period, we've seen positive inflows from Italy. We've added incremental additional sales resource into each of these countries, but now, at this stage, we don't believe that any further investment will be needed. The opportunity for improved levels of marginal profitability is meaningful as we gather more traction in these markets. This, of course, is the clear benefit of increased scale.
I've talked to you previously about focusing on what we can control, and decreasing undue complexity in our business is a key part of that. We are now most of the way through our fund rationalization program, which will ultimately reduce the number of funds by around 25%. With a focus on that long tail of subscale funds, I've been pleased to see that the attrition rate remains low at about 0.7% of starting group AUM. This has been important work as it is vital that we ensure that our product range remains competitive, distinctive, and differentiated. We remain laser-focused on cost control, too. Wayne has talked about this already, so I won't spend too long here, but we've again found savings in the first half of the year and updated our guidance accordingly.
Alongside this cost discipline, Wayne has also set out that around 19% of our current cost base continues to be invested in driving growth. Through today's results and our strong flows pipeline, we started to show this growth coming through. We've also continued to work on broadening our appeal to clients. I've mentioned this to you previously, that we're launching a range of thematic funds later in the year, run by our highly successful systematic equities team. Today I can confirm that the themes across these funds will be healthcare innovation, disruptive technology, demographic opportunities, consumer trends, and the physical world. These are all still subject to the usual regulatory approvals, but we'd hope that we can launch these funds in Q4.
This is potentially a very sizable opportunity for us, with the total addressable market across these categories being GBP 100 billion, of which healthcare alone is GBP 8 billion, and disruptive technology funds, GBP 24 billion. We're also working on launching a new GEM ex-China product, and we're exploring how we can use our multi-manager talents of the Jupiter Merlin team in a newly created product range called Jupiter Merlin Select, which is in demand from our clients. I've also talked to you before about exploring new methods of delivery, and this is something I find resonates with clients as I speak to them around the world. We've built a sub-advisory business, both in the U.K. and overseas, and are looking at opportunities to build more formal strategic partnerships in some key geographies.
We also continue to look at new ways of packaging our product range, such as active ETFs. Finally, on our strategic objectives, we've said that we want to deepen relationships with all stakeholders. Of course, shareholders are an absolutely key part of that, and the return of capital is an important decision for us. Wayne has covered this, but our capital position remains strong, and we'll continue to explore ways to deploy that capital and look to return what will be surplus to our needs. Our employees are, of course, important stakeholders, given that asset management is ultimately a human capital business. Our last employee survey showed ongoing progress here, too, with, for example, a 5-percentage point increase in the overall engagement score. Like me, our people are upbeat and optimistic about the future of our group.
To summarize briefly before I hand over to questions, it's been a good start to the year, with financial metrics generally moving in the right direction and some good progress against our strategic objectives. We've again generated a small amount of positive flow, and we've now had the first 12-month period of such for some six years. There's a huge degree of variability on timings, but our late-stage pipeline remains strong and well-diversified, and we're confident we will see further fundings in both the short and the medium term. Today, we have a strong capital base, even after taking into account today's ordinary and special dividends. We will look for further opportunities to grow, to increase scale, and to improve on all of our strategic objectives. With that, I will hand over to questions.
We'll start here in the room, and then we'll move on to the webcast.
Thank you. It's Mike from UBS. I got three quick questions, if you don't mind. First, I guess on the fee margin, you guide to 69 basis points for full year, 71 we saw in the first half. It kind of implies about 67 in the second half. Can you provide the average fee margin on some of those institutional mandates as a group? Just want to try to see if this is a type of fee margin compression we should expect in the coming years, as institutional becomes bigger. Second question is on the non-comp costs. I think you got it to GBP 114 million for the full year. It implies about GBP 60 million in the second half.
When I think about 2024, should we think about that GBP 60 million as kind of the annualized run rate, or is there some seasonality in here? Thank you. Yeah, Matt, you talked about the pipeline of the GBP 1.65 billion, and I recognize you're not going to be disclosing that frequently, but I was just wondering if you could provide what that pipeline looked like at the end of 2022. Thank you.
Sure. Wayne, do you want to start?
I'll pick up the first two and then hand over to Matt for the pipeline. First one was on fee margins. Yes, you're right. I guided to 69 basis points. That's coming off 71 basis points for the first half. I'm not going to break down the fee margins between our retail and wholesale and institutional business at this stage. What I would say, though, is our institutional business has a range of fee structures, depending on size, as you'd expect. There's also different mixes of that between normal management fees and performance fee structures. There's quite a range. We obviously have a building book here. It's a big book that's grown.
Small new mandates can have a big impact on some of that average for the time being, as you'd expect. I think in terms of our fee margins, I've guided for a few years now that I expected those to come down faster than our historic rate as we build up that business. I see that as a sign of success. Clearly, I'm expecting and hoping that will continue as we see some of those institutional funding mandates funding later in the year. It's clearly not going to go, you know, all the way down to zero, so there will be a floor at some stage as we get the right balance in our business. On the second question, that was on non-compensation costs.
Yeah, you're right again. GBP 114 million is the guidance now for the full year. That's down GBP 2 million from the guidance I gave in February of GBP 116 million. I mean, there's a number of things going on within our cost base. It's a half year, there is a degree of seasonality. You're quite right, the second half cost base does look higher than the first half. You know, clearly, I continue to focus on those costs, that's my current expectation, but that doesn't mean we are or not continuing to focus on good cost management. In terms of moving into 2024, I wouldn't, at this stage, just simply take the GBP 60 million as a run rate.
I'm going to come back and give you guidance on the 2024 outlook in February. What I can tell you is I'm going to continue to focus on making sure our costs for the second half, and then going forward from here, are appropriately balanced between investment for growth, but also removing some of the undue complexity. I'll come back to you on that in February.
On your last question, Mike, I mean, look, the, I referred earlier to an expectation that between 40% and 60% of a late-stage pipeline would typically come to fruition. To some degree, you can back out what our pipeline might have been, assuming that as your annual average, you know, conversion rate. I guess the point we were trying to convey here is that we've had some great success in the more recent period, and that really is the result of many years of hard work to build the right infrastructure to ensure that we can effectively identify client needs, onboard clients, service clients, you know, as they so wish and need across a range of different geographies. That, that's really starting to come through.
What we're trying to convey today is a sense of a momentum that is building, and to some degree, the pipeline that is funded has been replenished, and that's why, you know, we wanted to give those additional metrics. It's also important to emphasize that the uncertainty that still exists with that pipeline. We have yeah, we have a, say, ongoing momentum building. We know we have investment capabilities that resonate strongly with a range of clients, and you see that in the increased number of consultant buy ratings that we have. We also know that institutional clients tend to fund large sums of money, and therefore, it tends to be quite a lumpy, a payoff profile.
We shouldn't expect a linear progression from here, but all the signs would suggest, you know, with 80% of our AUM now coming from institutional clients, that we're doing lots of the right things to build that channel, on an ongoing, sustainable basis. Any other questions in the room? Okay. Questions on web, on webcast?
Thank you, Wayne and Matt. A few questions coming through the webcast. Firstly, for Matt, on the institutional flows we had in H1, a few questions on this. Firstly, how much of the flows has been from new versus existing clients? How much of it relates to our relationship with NZS?
I'm not going to break out the details specifically on the pipeline, on the fundings, but it's a combination of everything you've just, you know, asked. There are some additional client flows from existing clients, but equally, there are some new clients in that mix as well. You know, NZS have, you know, our strategy, we talk about global, you know, within that GBP 600 million of global flows that we referred to, you know, we think of the NZS strategy as one of those global clients, and what's implicit, therefore, is that they too have, you know, seen some additional money flow towards, you know, their strategy as well. You know, what is most encouraging is the breadth of our institutional business.
I mentioned a few times, it's diversified by product, it's diversified, by geography. It's also a decent mix of you know, consultant-advised and not and non-consultant-advised. Again, that just gives us comfort that we've really built solid foundations, here, which we now hopefully, you know, plan and hope to build on.
Thank you. Further questions on institutional flows. Were the flows into specific products or a range? Can you comment on the margin that we've earned on the flows that we've had in the first half?
I mean, I think we probably answered both those two questions. I'll take the first, then Wayne might jump in on the second. Again, look, it's a range of products. I'm not going to go into the detail. It's a diversified book in terms of the assets that have, you know, funded in this most recent period. Also, I look at the pipeline as well. The pipeline is equally diversified by geography and by strategy. Look, that itself will change over time as well. We know clients' needs change, we know the market environment changes. We believe we've got a range of strategies that are institutional quality and are, you know, helping institutions in some way relative to their wider investment needs that they have.
On the margins, just to reemphasize the point, again, fee structures, I'm not going to go into specifics for individual client mandates, but the fee structures across different asset class, investment capabilities, and indeed within investment capabilities, can be different by clients. There is a range of structures there, that adjust the margin, and that can include performance fees as well in some instances. That also obviously does affect the management fee component. Our fee margin is going to 69 basis points. That assumes further flows that we expect to fund in the second half of this year.
Great. Sticking with you, Wayne, a couple of questions from Hubert Lam from Bank of America on cost guidance. Could you confirm your guidance on fixed staff costs and total comp ratio for the year?
Yeah, of course. Yeah, the guidance there is actually unchanged, so it's in your packs. Fixed staff cost for this year, I'm expecting to be GBP 77 million, and the total compensation ratio, and importantly, excluding performance fees, remains at 41%.
Excellent. Question from Bruce, Morgan Stanley, on product performance for you, Matt. Were there any particular mutual funds that picked up performance in the first half, and any take a turn for the worse?
We, in aggregate, investment performance has improved. I stated very clearly up front, it's still not where we want it to be, but we do accept that as a active manager, where the managers managing money will often have very different views relative to consensus and are happy at times to take the different views relative to consensus, that might lead to periods of underperformance. Of course, longer term, we know we need excellent investment performance if we are to truly assert our credentials, you know, as a leading active manager. This period is like no other in terms of some fund managers performing better than others. I think what's encouraging, just to answer Bruce's question directly, is the improved performance of our Strategic Bond and Dynamic Bond funds.
They're obviously big funds, important funds for us, and it's encouraging to see performance improve, in the shorter term, albeit the long-term track record of that strategy remains excellent and top quartile. As a result of that, your flows have started to improve, albeit the macro environment, I think, is still somewhat challenging for fixed income.
Sticking with performance, a question from Samuel Arthur at Citi: What explains the difference between strong outperformance in segregated mandates and investment trusts versus slightly muted improvement within mutual funds?
Obviously, that's gonna be a question on mix. You know, I don't have that data to hand in terms of being able to disaggregate, investment performance, but maybe Sam, it's something that we can follow up with you separately.
Another question from Sam. Could you elaborate on which are key focus areas you were considering to scale through inorganic growth?
Look, I think we're very lucky here at Jupiter in terms of, you've heard today from the opportunities we've got from an organic perspective, you know, the progress we're making with institutional and international. You've also heard from Wayne about the capital surplus, you know, that we potentially have. We've been very clear, I think, that we will consider where there are opportunities to use capital that we have for inorganic opportunities. There's a range of things that we can, you know, consider. You know, I've talked openly about the ongoing interest of our clients in alternatives and whether that's a category that we should be contemplating, you know, as, you know, a active fund manager.
It might not be that we are seeking to build manufacturing capability, but perhaps looking to potentially partner with other alternatives manufacturers and use our distribution capability in a complementary way. These are things that we can, you know, consider. Yeah, as of now, you know, we're clearly just flagging that we obviously have capital that we can use potentially from an inorganic perspective to supplement the organic opportunities that hopefully we're starting to evidence in the results today.
A couple of questions, Matt, on institutional pipeline, from David McCann, Analyst, Numis. How repeatable is the pipeline, and how should we think of it going forward? Is it bigger than it was six months ago?
In terms of its repeatability, look, everything we tried to do today is to try and give you some insight into our institutional business. Obviously, from with inside Jupiter, from the conversations that we have with our clients, we have a lot of confidence that we're doing the right things to build that business on a sustainable footing. There's a few data points that we've shared, you know, in today's presentation, and in the presentation materials, that we'd hope give investors some insight into that progress that we're making.
We won't be providing, you know, the same level of disclosure or repeating some of these data points on an ongoing basis, but we do want to try and, say, give some perspective to help people understand the progress that we are making. In terms of its sustainability, we believe that it's very sustainable, but we're also very aware that clients' needs change. The macroeconomic environment that we're in remains uncertain, and the types of investment, asset classes, and therefore products that they're focused on today might not be the type of products they're focusing on tomorrow.
There is some uncertainty there baked in, but what I do know is we're building deeper relationships with a range of consultant-advised and non-consultant-advised institutions around the world, and getting to understand their needs better, and that puts us in a great place to be useful to them in solving some of those investment needs that they have ongoing.
Question for you, Wayne, on cost savings. Are you from Portia at Canaccord. Are you able to elaborate more on where additional savings are coming from, and should we expect savings from the remainder of our fund rationalization program?
Yeah. I mean, the answer is, it's coming from a range of areas. We did a big exercise, and we announced that to you in October last year, and we continued to focus on that in February. You know, through the first half of this year, you know, I've been looking at the areas that obviously are able to be adjusted. areas like consultancy spend. We have some changes in whether we outsource or use our internal expertise, and that's driven some of the savings. It's a range of areas, not any individual area.
In terms of going forwards, I mean, clearly, we continue to focus on making sure that those costs are controlled, both from a growth perspective, but also reducing them in absolute terms. From a fund rationalization perspective, you know, there's been reducing funds on our range. We've got a scalable platform, so you wouldn't expect there to be costs that are reduced as a result of those funds, but there clearly are some that are in the savings I highlighted today.
That's all the questions from the webcast.
Well, unless there any other further questions in the room, on what say, what is a busy day, I'll simply say, you know, thank you for joining us here in the room, but also on the webcast. Obviously, we're encouraged by the progress that we're making, and we look forward to reporting back to you know, later in the year. Many thanks.