Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — H1 2023 Earnings Presentation
37 slides from Jupiter Fund Management's earnings presentation, 2023
Slide 1: Jupiter Fund Management Plc Interim Results 2023
JUPITER FUND MANAGEMENT PLC INTERIM RESULTS 2023 JUPITER
Slide 2: Matthew Beesley, Chief Executive Officer
MATTHEW BEESLEY CHIEF EXECUTIVE OFFICER — JUPITER
Slide 3: A good start to the year in a challenging environment
A good start to the year in a challenging environment Net revenue £181.0m Net inflows 2027 ao £ 0 : 0 b n (H1 2022: outflows of £(3.6)bn) Underlying profit FA6.4M = before tax (H1 2022: £29.7m) ; Ordinary dividend Underlying EPS 6.7 p 3 . 5 9) (H1 2022: ordinary dividend of 7.9p) (H1 2022: 4.2p) Ma
Slide 4: Focused on improving performance
Focused on improving performance over 1 year : 5 3% (H1 pee = over 5 years 5 8% 0) (HI ee @ lst quartile m 2nd quartile m 3rd quartile m 4th quartile JUPITER
Slide 5: Continued strength in gross sales
Continued strength in gross sales Gross flows (£bn) : 12 10 £7.7bn 8 6 4 2 iy, () H121 H221 H122 H222 H1 23 m Retail, Wholesale & Inv. Trusts mi Institutional @ Retail gross sales remain robust, despite market backdrop © Continued momentum in Institutional fundings aft JUPITER
Slide 6: Continued strength in gross sales, with net positive inflows
Continued strength in gross sales, with net positive inflows 12 2 1 1 I! 10 ! I £7.7bn ! 8 ) i , = rio | ! ! I ! 4 4 2 1 I I 2 ! I 1 ‘ 0 -4 ' 1 I H121 H221 H122 H222 H123 ieee wean i ee age SRC m Retail, Wholesale &Inv. Trusts _ mi Institutional m Retail, Wholesale &Inv. Trusts Institutional A nage
Slide 7: Wayne Mepham, Chief Financial Officer
WAYNE MEPHAM CHIEF FINANCIAL OFFICER — JUPITER
Slide 8: Financial performance in a challenging environment
Financial performance in a challenging environment Net revenue =e Underlying EPS (H1 2022: £202.4m) 6 . { Dp rm eee ao Underlying profit £46.4m > before tax (H1 2022: £29.7m) Exceptional items £11.6m T ivi otal dividend " (H % i Se tHik.2022: £10 oi) 6 A 9) (H1 2022: Total dividend of 7.9p) : pag St
Slide 9: Underlying profit before tax...
Underlying profit before tax... 3.6 83 co ; H2 2022 Underlying PBT Revenue Cost savings Gains & losses and other* H1 2023 Underlying PBT (ex pfees) Performance fees impact H1 2023 Underlying PBT Exceptional costs H1 2023 Statutory PBT JUPITER
Slide 10: Movement in AUM...
Movement in AUM... .. June 2023 closing AUM of £51.4bn ney) ils} 0.0 0.1 ves 50.2 514 Jun 2022 Net flows Markets 2022 Net flows Markets Jun 2023 closing AUM closing AUM closing AUM a H1 2023 H2 2022 . £50.9bn UM _ £49. 5bn sum _ JUPITER
Slide 11: Net revenues of £181m
S Ny Pde Net revenues of £181m Performance fees of £0.4m in H1 2023 Ce (5.9) 12 Of = 180.6 > H2 2022 revenue Net flows Markets H1 2023 revenue H1 2023 H1 2023 revenue (ex-pfees) (ex-pfees) performance fees a page H1 2023 Net man. fee margin Performance fees . : 71bps (FY 2022: 74bps) £0.4m (FY 2022:
Slide 12: Investing for growth while maintaining cost discipline
Investing for growth while maintaining cost discipline Cost management despite headwinds m Fixed staff costs Variable staff costs 51% H1 2023 41% 51% H2 2022 H1 2022 (£m) H1 2023 H2 2022 H1 2022 Fixed staff costs 37.0 44.5 37.9 Variable staff costs 41.4 40.6 63.9 - performance fee related 3.5 9.0 24
Slide 13: Investing for growth while maintaining cost discipline
yw ‘ os Investing for growth while maintaining cost discipline Cost management despite headwinds Expenses Compensation mix (excluding performance fees) Pe Te SO Pe oe ee = Fixed staff costs Variable staff costs ! (gm) H22022 12022 ; Fixed staff costs | Variable staff costs iF - performance fee relat
Slide 14: Investing for growth while maintaining cost discipline
Investing for growth while maintaining cost discipline Cost management despite headwinds (£m) H1 2023 H2 2022 H1 2022 Fixed staff costs 37.0 44.5 37.9 Variable staff costs 41.4 performance fee related ci) 4.9 Non-compensation costs 53.8 58.4 Total expenses! 132.2 160.2 ! Total compensation ratio 9 9
Slide 15: Investing for growth while maintaining cost discipline
4 ———_ a —™ f Investing for growth while maintaining cost discipline Cost management despite headwinds 4 Expenses Compensation mix (excluding performance fees) Fixed staff costs Variable staff costs H22022 H12022 44.5 performance fee related Non-compensation costs ’ 49% 59% 49% Total expenses! 4 Tot
Slide 16: Investing for growth while maintaining cost discipline
Investing for growth while maintaining cost discipline Cost management despite headwinds (£m) H1 2023 H2 2022 H1 2022 Fixed staff costs 44.5 i) Variable staff c 63.9 performance fee related 24.9 Non-compensation cos 58.4 Total expe : 160.2 Us compensation peut 41% 41% 38% (ex. performance s) Total c
Slide 17: Maintaining a strong capital position
yw ‘ MP Maintaining a strong capital position Increased surplus creating scope for capital opportunities 4 Regulatory capital IFPR regime P (em) 30 Jun 2023! 31 Dec 2022 Available capital resources 219.1 236.0 Regulatory requirement (71.8) (121.8) Expected capital surplus 147.3 114.2 A Seed capital
Slide 18: Maintaining a strong capital position
Maintaining a strong capital position Increased surplus creating scope for capital opportunities IFPR regime (£m) 30 Jun 2023! 31Dec 2022 ) Ordinary » Inorganic Additional = r 7 dividend opportunities capital returns Available capital resources 219.1 236.0 Regulatory requirement (71.8) (121.8) Expec
Slide 19: Resilient performance despite headwinds
j \ \ W Resilient performance despite headwinds Modest positive flows despite challenging markets »2} Balancing cost control whilst targeting investment for growth ) > 4 Strong capital base ) om i; “e ‘Ss i ov _ JUPITER
Slide 20: Matthew Beesley, Chief Executive Officer
MATTHEW BEESLEY CHIEF EXECUTIVE OFFICER — JUPITER
Slide 21: Strategic priorities: increase scale, decrease complexity, broaden appeal, deepen relationships
S Ny Pde @®6 IL! INCREASE DECREASE — ; SCALE UNDUE OURAPPEAL ~~ RELATIONSHIPS COMPLEXITY TO CLIENTS WITH ALL STAKEHOLDERS ...in select geographies ...with costs managed ...with a curated product —_...with purpose and and channels carefully through a offering, while also sustainability embedded ie re
Slide 22: Continued momentum in Institutional channel
Continued momentum in Institutional channel | (om) 12 month net flows INCREASE from instl. clients SCALE Record period of growth for _.in select geographies i i i ; and channels international business kx \ 28 = JD rigs AUM from non-UK ze i based clients JUPITER
Slide 23: Fund rationalisation programme
Fund rationalisation programme mostly complete | (om) > Attrition rate DECREASE in total AUM UNDUE COMPLEXITY i: Continued focus on cost control ..with costs managed i carefully through a — relentless pursuit > of efficiency 2023 savings included in cost guidance vee JUPITER
Slide 24: Ongoing product development
; (=) Ongoing product development Total addressable BROADEN market in thematics \ <8 ~ JD OUR APPEAL TO CLIENTS , Exploring new methods of delivery ...with a curated product with clients offering, while also . exploring additional BE methods of delivery H1AUM growth top 10 es strategic partnerships
Slide 25: Total announced dividend
" Total announced DEEPEN dividend RELATIONSHIPS WITH ALL STAKEHOLDERS .. with purpose and sustainability embedded in all we do = Employee engagement te score Improvement in employee opinion survey ~ Rs : (om ) y Returning excess capital to shareholders JUPITER
Slide 26: Good performance and strategic progress
E , Ny ~~ Z Good performance and strategic progress , | » } 12-month period of net positive inflows = »2} Optimistic on late-stage Institutional pipeline ) es . iy, B A strong capital base ) i; » } Opportunities to increase scale & further strategic goals “s vee JUPITER
Slide 27: Q&A
Q&A — JUPITER
Slide 28: Appendix
APPENDIX — JUPITER
Slide 29: Largest mutual funds performing well
Largest mutual funds performing well 3-year performance: i Equities Ml FixedIncome Mi Multi-Asset Mf Alternatives 5-year performance: Equities Fixed Income [ Multi-Asset Alternatives AUM at AUM at a ae and 1 Jun 2023! Dec 2022" Quartile Quartile Quartile Quartile Dynamic Bond £5.6bn £5.7bn pe! Europ
Slide 30: Funds with performance fees
Funds with performance fees Driven by strong investment performance . Illustrative example 9 Performance Estimated Funds with performance “UMofallshare classeswith || 134, Shareclass High Water vs. aartmatqmls Performance _ performance fee potential Ps (em) Pp NAV ‘Mark © Benchmark/ fee rate fee at
Slide 31: Long-term incentive compensation
Ny Long-term incentive compensation Estimated future long-term incentive compensation amortisation Amount remaining Fee £m to expense 2023 H2 2024 2025 2026 In relation to 2020 performance fees 0.9 0.6 0.3 - - In relation to 2021 performance fees 2.5 11 1.2 0.2 - In relation to 2022 performance fees
Slide 32: Non-compensation costs
a \ Ny ~~ Z Non-compensation costs L (£m) H1 2023 H2 2022 H1 2022 : y AUM-related costs 25 28 30 ba Infrastructure 18 19 av, a Other ll 10 ll Total non-compensation 54 57 58 costs RS ~ JUPITER
Slide 33: Management expectations for 2023
yw i | Management expectations for 2023 2023 Net management fee margin 69bps Performance fees c.£5m -£10m Fixed staff costs £77m Total compensation ratio (excluding performance fees) 41% Non compensation costs £114m Exceptional items £21m Ordinary dividend pay-out ratio 50% sctations 23, Jupiter’s a
Slide 34: Proactive seeding portfolio
a , Ny ~~ Z Proactive seeding portfolio Focused use of our balance sheet to support organic growth - Seed size and length of investment GEM Focus LP — Global Sustainable Equities LP& GEM Focus LP 7 100% e@ ] @ European Growth feeder fund ar Real Return Merlin Moderate Select Global Sustainable Equit
Slide 35: AUM by distribution channel
AUM by distribution channel Our assets reach us through a number of different channels @ The majority of our assets come through our distribution W Advisory Discretionary Direct partners and their associated intermediary channels Other © Institutional | Investment Trust I rather than directly from o
Slide 36: Forward looking statements
yw vee ‘ MP Forward looking statements This presentation may contain certain “forward-looking statements” with respect to certain plans of Jupiter Fund Management plc (Jupiter) and its current goals and expectations relating to its future financial condition, performance, results, strategy and objec
Slide 37: Jupiter Fund Management plc
Jupiter Fund Management ple The Zig Zag Building, 70 Victoria Street London, SW1E 6SQ, United Kingdom T: +44 (0)20 3817 1000 F: +44 (0)20 3817 1820 FA @iupiteram_uk {in| Jupiter Asset Management Jupiteram.com — JUPITER
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