Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — H1 2022 Earnings Presentation
31 slides from Jupiter Fund Management's earnings presentation, 2022
Slide 1: Interim results 2022
Interim results 2022 Jupiter Fund Management plc Ss JUPITER
Slide 2: Andrew Formica, Chief Executive Officer
Andrew Formica Chief Executive Officer Interim results 2022 JUPITER
Slide 3: A challenging macro landscape
A challenging macro landscape Widespread negative sentiment Equity and Fixed Income index convergence + 3,500 500 200 100 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 10% 8% 6% 4% 2% MSCI World Index (LHS) Bloomberg Global Aggregate Total Return Index (RHS) US CPI inflation rate? 3,50
Slide 4: A difficult market backdrop
A difficult market backdrop Positioning underlying business to withstand headwinds F483 8bn Assets under management (H1 2021: £60.3bn) H1 2022 H1 2021 Underlying profit before tax £53.9m £79.8m (excl. performance fees) £ (8 : 1) b a . . Market returns Ordinary dividend T.9p 7.9p (H1 2021: positive m
Slide 5: Group outperformance impacted by small number of funds
Group outperformance impacted by small number of funds Performance remains strong over longer periods Three-year mutual fund performance 64% over 5 years (Dec 21: 68%) 4AY% over 1 year (De mistquartile m2ndquartile m3rd quartile m4th quartile @ Growth bias across mutual funds impacting performance @
Slide 6: Maintaining robust gross sales
Maintaining robust gross sales Gross inflows (£bn) 18 16 14 . . i 2019 2020 2021 H1 2022 @ Retail, Wholesale & Investment Trusts ™ Institutional © Gross sales holding up © Diversified gross sales across asset classes > JUPITER 5
Slide 7: Maintaining robust gross sales...but a difficult market for net flows
Maintaining robust gross sales...but a difficult market for net flows Gross inflows (£bn) 18 16 14 £6.9bn H1 2022 2019 2020 2021 @ Retail, Wholesale & Investment Trusts ™ Institutional © Gross sales holding up © Diversified gross sales across asset classes Net flows (£bn) £(3.6)bn 2019 2020 2021 H1
Slide 8: Improving UK trend, concentrated overseas outflows
Improving UK trend, concentrated overseas outflows Net flows by region (£bn) 1 (1 (2) (3) (4) (5) 2019 2020 2021 mUK = mlnternational H1 2022 © Gradually improving UK picture @ International outflows primarily from Dynamic Bond in Europe and Asia e Positive net inflows in the US and Latin America >
Slide 9: Dynamic Bond flows & performance
Dynamic Bond flows & performance Risk-off sentiment across fixed income Dynamic Bond net flows (£bn) 4 3 @ Industry-wide outflows from fixed 5 income tl i ® Consistently strong three-year relative | — performance - (1) @ Atthe margin, some clients sensitive to 2) short-term performance (3) @ Perform
Slide 10: Wayne Mepham, Chief Financial Officer
Wayne Mepham Chief Financial Officer Interim results 2022 JUPITER
Slide 11: Challenging market conditions
Challenging market conditions Net revenue £202.4m { . 8 D (H1 2021: £224.0m) Underlying EPS ex. performance fees H1 2021: 11.7p 4.2) Underlying profit £29.7m Underlying EPS before tax (H1 2021; £78.2m) (H1 2021: 11.5p) Underlying profit beforetax £523 9m (excluding performance fees) (141 2021: £79.8
Slide 12: Underlying profit before tax of £29.7m...
Underlying profit before tax of £29.7m... H2 2021 Underlying Revenue Cost savings PBT (ex pfees) 28.4% H1 2022 Operating margin ex. Pfees H1 2021: 37.1%) 20ther includes net finance expense and amortisation expenses (6.3) 538) (24.2) 29.7 Gains & losses and H12022 Underlying Performance fees H1 2022
Slide 13: Movement in AUM...
Movement in AUM... ... June 2022 closing AUM of £48.8bn (8.1) 60.3 60.5 (3.6) 48.8 Jun 2021 Closing Markets Net flows 2021 Closing AUM Markets Net flows Jun 2022 Closing AUM AUM £54.8bn £60.5bn H1 2022 Average AUM H2 2021 Average AUM > JUPITER 12
Slide 14: Net revenues of £202m
Net revenues of £202m H2 2021 Revenue Net flows Markets & other (ex. Pfees) 73.8bps H1 2022 Net man. fee 0.7 H1 2022 Revenue (ex. Pfees) H1 2022 Performance fees £54.8bn H1 2022 Average AUM (H1 2021: £59.0bn) H1 2022 Revenue Margin (H22021:75.7bps) > JUPITER 13
Slide 15: Rigorous focus on costs during challenging markets
Rigorous focus on costs during challenging markets Cost management despite headwinds Expenses £m H1 2022 H2 2021 H1 2021 Fixed staff costs 37.9 37.6 35.4 Variable staff costs 63.9 98.3 417 - non performance fee related 39.0 39.0 40.1 - performance fee related 24.9 59.3 16 Non-compensation costs 58.4
Slide 16: Discipline in non-compensation expenditure
Discipline in non-compensation expenditure ...continued focus on cost management Non-compensation costs development from H2 2021 to H1 2022 (£m) (3.5) 0.) | : pe 0.5 64.0 H2 2021 Admin fees Other AUM related costs FX Other H1 2022 > JUPITER | ©
Slide 17: Balancing shareholder returns and a strong capital position
Balancing shareholder returns and a strong capital position Regulatory capital 30 Jun 31 Dec £m 2022 2021 Available capital resources 211.8 238.8 Regulatory requirement (121.8) (121.8) Expected capital surplus 90.0 117.0 Seed capital (at MV) 123.7 142.3 2Under Investment Firms Prudential Regime rule
Slide 18: Challenging external environment
Challenging external environment Strong foundations remain G) Growth opportunities remain @) Rigorous focus on cost discipline (3) Strong capital base > JUPITER |
Slide 19: Andrew Formica, Chief Executive Officer
Andrew Formica Chief Executive Officer Interim results 2022 JUPITER
Slide 20: Looking back at the Merian acquisition years after the deal
Looking back at the Merian acquisition 2 years after the deal c.60% of EV paid back through Financially... EeITDA . 9 0, Operationally... one performance Fu lly turnover integrated Strategically... More New diversified capabilities - product Alternatives range Growth Broader distribution OPPs: footp
Slide 21: Three years of progress
Three years of progress Merian Institutional c.60% of EV returned through EBITDA in two years 62% outperformance! International Product range Refocused overseas exposure Rationalised product range 18% increase in AUM in 3 years £1.3bn cumulative net inflows now 28% of Group products launched since 2
Slide 22: High-conviction active asset management
High-conviction active asset management Helping our clients achieve their long-term investment objectives G) Clear macro challenges @) Underlying business being positioned to withstand headwinds (3) Future growth opportunities undiminished > JUPITER | 2
Slide 23: Q&A
Q&A Interim results 2022 Ss JUPITER
Slide 24: Forward looking statements
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 objectives. State
Slide 25: Appendix
Appendix Interim results 2022 Ss JUPITER
Slide 26: Largest mutual funds
Largest mutual funds AUM at AUM at 4th 3rd 2nd 1st Jun 2022! Dec 2021! Quartile Quartile Quartile Quartile Dynamic Bond £6.3bn £8.4bn OO See Strategic Bond £3.6bn £4.4bn ___~*F, European £3.3bn £4.6bn | UK Special Sits £2.1bn £2.0bn a Merlin Income £1.8bn £2.1bn Ss Merlin Balanced £1.8bn £2.0bn ees
Slide 27: Funds with performance fees
Funds with performance fees Driven by strong investment performance Illustrative example AUM of all share Estimate Performance fee Funds with classes with Share High Performance vs Performance performance at 5% out- performance performance fee class Water Benchmark/ Benchmark/Hurdle ae fee at perfor
Slide 28: Performance fee incentive compensation
Performance fee incentive compensation Estimated future long-term incentive compensation amortisation Amount £m remaining to 2022 H1 2022 H2 2023 2024 2025 expense In relation to 2020 performance fees 8.1 4.2 16 19 0.4 - In relation to 2021 performance fees 29.8 20.7 2.9 3.9 1.9 0.4 Total performanc
Slide 29: Non-compensation costs
Non-compensation costs Disciplined cost management £m H1 2022 H1 2021 AUM-related costs 30 35 Infrastructure 17 17 Other 11 10 Total non-compensation costs 58 62 > JUPITER | %
Slide 30: Flexible Income / GEB Flexible Macro
Flexible Income GEB Flexible Macro GSE SICAV Merlin Real Return Europe ex-UK Equity European Growth Global High Yield Bond European Smaller (UT) Asia Pacific Income JEFIT ●
Slide 31: Jupiter Asset Management Limited
Jupiter Asset Management Limited The Zig Zag Building, 70 Victoria Street London, SW1E 6SQ, United Kingdom T: +44 (0)20 3817 1000 F: +44 (0)20 3817 1820 ED @iupiteram_uk ‘in| Jupiter Asset Management Jupiteram.com > JUPITER | *
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