Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — Q3 2022 Earnings Presentation
18 slides from Jupiter Fund Management's earnings presentation, 2022
Slide 1: Jupiter Fund Management Plc
JUPITER FUND MANAGEMENT PLC 2022
Slide 2: What we will address today
What we will address today My core beliefs Our immediate Jupiter’s existing Returning in our industry priorities strategy, and capital to our and Jupiter’s what we might do shareholders place in it differently
Slide 3: An improving flow picture
An improving flow picture Net inflows from Institutional clients and slowing retail outflows GROSS INFLOWS (£BN) NET FLOWS (£BN) 3.8 3.1 3.8 (1.7) (1.9) (0.6) 3.5 1.0 3.0 0.5 2.5 - 2.0 (0.5) 1.5 (1.0) 1.0 (1.5) 0.5 (2.0) - (2.5) Q1 Q2 Q3 Q1 Q2 Q3 Retail, Wholesale & Investment Trusts Institutional F
Slide 4: My core beliefs on our industry
My core beliefs on our industry Which are driving our actions at Jupiter Active management The pursuit of Clients’ needs are Sustainability is continues to efficiency and increasingly key, and it is dominate industry scalability is of complex and everywhere critical importance multi-dimensional All
Slide 5: Strong foundations in place
Strong foundations in place HIGH-CONVICTION, ACTIVE INVESTMENT EXCELLENCE DIFFERENTIATED LEADING POSITION PRODUCT SET IN UK RETAIL GROWING SUCCESSFUL AND PROFITABLE EXPERTISE ACROSS INSTITUTIONAL BUSINESS GLOBAL PRESENCE SUSTAINABILITY
Slide 6: My immediate priorities
My immediate priorities Rationalising Simplifying Reviewing our our fund range our structure existing strategy
Slide 7: Rationalising our fund range
Rationalising our fund range In pursuit of efficiency and scalability ~25% reduction in number c.£1.6bn, or 4%, group AUM in Reducing complexity and of funds1 impacted funds product proliferation Jupiter funds net AUM (£m)1 6000 4000 Unimpacted funds Merged funds Closed funds 3000 2000 46% funds of
Slide 8: Simplifying our structure
Simplifying our structure In pursuit of efficiency and scalability Reducing headcount Operational review, including by c.15% supplier agreements Simplified management Delivering capacity structure for growth Reduction in both comp and non-comp costs from 2023
Slide 9: UK Retail - ongoing commitment and focus
UK Retail - ongoing commitment and focus Market £1.2tn addressable active Gross flows from UK clients opportunity market in the UK1 £1.3bn £4.6bn Q3 2022 YTD 2022 Jupiter's Top 5 in UK retail2 position #1 active-only listed asset manager Gross retail AUM % from UK sales ranking3 retail clients Futur
Slide 10: Institutional - doing many of the right things already
Institutional - doing many of the right things already Market 77% of UK AUM is opportunity Consultant “Buy” ratings from Institutional clients1 12 17 Q3 2020 Q3 2022 Jupiter's 11% of group AUM position £0.7bn net inflows YTD AUM from institutional clients Future Ongoing investment 8% 11% Q3 2020 Q3
Slide 11: International - opportunity to prioritise resource
International - opportunity to prioritise resource Market 94% of global AUM is opportunity from outside of the UK1 AUM from overseas clients Jupiter's position 31% of group AUM 28% 31% Q3 2020 Q3 2022 Future Opportunity for targeted focus allocation of resources 1. Source: BCG, From Tailwinds to Tur
Slide 12: Sustainability is everywhere at Jupiter
Sustainability is everywhere at Jupiter Sustainalytics peer group ratings1 HIGHER RATING Achieved updated Stewardship Code 42% of AUM committed to c.£200m net inflows YTD signatory status net zero – one of highest in industry into labelled strategies 1. Source: Sustainalytics risk rating, for the “A
Slide 13: Jupiter has many potential growth drivers
Jupiter has many potential growth drivers More can be done to drive growth Thematic Emerging asset Private assets classes Distribution Active ETFs Distributed Ledger partnerships technology Not all will be actioned – but all will be explored
Slide 14: Capital returns for this year and next
Capital returns for this year and next Sustainable return of capital over time 2022 2023 & onwards Interim dividend of Ordinary dividend of 7.9p per share 50% payout ratio Additional return of Periodic additional capital to reach 70% returns of capital payout commitment Payout ratios refer to pre-pe
Slide 15: An updated capital allocation framework
An updated capital allocation framework Sustainable return of capital over time DISCIPLINED APPROACH TO CAPITAL ALLOCATION Organic Ordinary Inorganic Additional investment dividend opportunities capital returns Targeted investment to drive Regular, sustainable Selected strategic inorganic Additional
Slide 16: Delivering growth for Jupiter…
Delivering growth for Jupiter… … as we help our clients achieve their long-term investment objectives 1 A growing, highly profitable industry 2 Pursuit of efficiency and scalability 3 Responsible, sustainable return of capital 4 Existing strategy necessary, but may not be sufficient
Slide 17: Questions
QUESTIONS =) JUPITER
Slide 18: Jupiter Fund Management plc
Jupiter Fund Management plc The Zig Zag Building, 70 Victoria Street London, SW1E 6SQ, United Kingdom T: +44 (0)20 3817 1000 F: +44 (0)20 3817 1820
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