Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — FY2021 Earnings Presentation
40 slides from Jupiter Fund Management's earnings presentation, 2022
Slide 1: Full year results 2021
Full year results 2021 Jupiter Fund Management plc Ss JUPITER
Slide 2: Andrew Formica, Chief Executive Officer
Andrew Formica Chief Executive Officer Full year results 2021 JUPITER
Slide 3: Growth across key financial metrics
Growth across key financial metrics 58% Net revenue! U p 2T% £568.6m (2020: £447.8m) Investment outperformance? (2020: 70%) Underlying profit Up 21% £216.7m before tax (2020: £179.0m) £ ( 2 8) b n Net outflows Underlying EPS Up 10% 31.7p (2020: outflows of £(4.0)bn) (2020: 28.7p) Assets under Up 3%
Slide 4: Strong long-term investment performance
Strong long-term investment performance High-conviction active management Three-year mutual fund performance 80% over 1 year 68% over 5 years (2020: 69%) @ ist quartile m2nd quartile m3rd quartile m4th quartile Source: Morningstar and Jupiter internal as at 31 December 2021. Figures show mutual fund
Slide 5: Consistently strong gross sales, but in a net outflow position
Consistently strong gross sales, but in a net outflow position Gross flows (£bn) 18 16 14 £16.5bn 2018 2019 2020 2021 ™@ Mutual Funds & Investment Trusts m™ Segregated Mandates © Continued robust gross sales © Consistent growth: 38% increase from 2018 Net flows (£bn) 2018 2019 2020 2021 ™ Mutual Fun
Slide 6: An improving outflow picture for selected strategies
An improving outflow picture for selected strategies Net flows (£bn) = -_ a | _ fs ony ga a= =n aye 1 UK Equities European Growth Merlin Systematic (Long Systematic (GEAR) — Unconstrained Fixed Only) Income m2018 2019 m2020 m2021 Quartile ranking! (1,3 &5 years) £(4.1)bn 2021 net outflows 3 JUPITER
Slide 7: Newly-launched strategies driving growth
Newly-launched strategies driving growth Number of newly- launched vehicles: AUM & net flows (£bn) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 : - = Lo | 2018 2019 2020 2021 Strategies: mm 2018 mmm2019 mmm 2020 mmM2021 launched in: mm Net flows £2.2bn Cumulative net inflows 3 JUPITER
Slide 8: Wayne Mepham, Chief Financial Officer
Wayne Mepham Chief Financial Officer Full year results 2021 JUPITER
Slide 9: Resilient performance in a challenging environment
Resilient performance in a challenging environment Net revenue? Up 27% to £568.6m (2020: £447.8m) Underlying profit before tax Up 21% to £216.7m (2020: £179.0m) Exceptional items Down to £33.0m (2020: £46.4m) Statutory profit Up 39% to £183.7m (2020: £132.6m) 1Adjusted for exceptional items reclassi
Slide 10: 21% increase in underlying profit before tax...
21% increase in underlying profit before tax... — | 16.2 _ (9.9) a 4 (7.7) (1.7) 25.8 204.8 2020 Underlying Annualisation 2020 Adjusted Net performance Revenue Costs Gain & losses Finance 2021 Underlying PBT underlying PBT _—_ fee impact costs / other! PBT 2021 Operating margin 2021 Operating margin
Slide 11: 21% increase in underlying profit before tax...
21% increase in underlying profit before tax... — | 216.7 16.2 _ (9.9) a b . (7.7) (1.7) 179.0 25.8 Performance [ fee profit Management 204.8 fee profit 4 2020 Underlying Annualisation 2020 Adjusted Net performance Revenue Costs Gain & losses Finance 2021 Underlying PBT underlying PBT _—_ fee impact
Slide 12: Growth in AUM...
Growth in AUM... ...to a year-end record of £60.5bn a 16.6 58.7 2020 Merian acquisition Net flows Markets 2020 Net flows Markets 2021 Opening AUM Closing AUM Closing AUM F47.8bn 2020 Average AUM Average AUM is calculated using a 13-point basis £59.7bn 2021 Average AUM > JUPITER | 4
Slide 13: Record net revenues of £569m
Record net revenues of £569m Driven by performance fees of £113m 568.6 447.8 (63.6) _ 56.5 (33.5) Performance | feromnce i — 440.7 455.6 455.6 Management | fee revenue 384.2 2020 Revenue 2020 Annualisation 2020 Adjusted Net flows Markets & Performance revenue (ex- fees pfees) 2021 Revenue 2021 2021
Slide 14: Investing for growth while maintaining cost discipline
Investing for growth while maintaining cost discipline Cost management despite headwinds Expenses £m 2021 2020 2019 Fixed staff costs 73.0 76.1 59.4 Variable staff costs 140.0 85.8 70.7 - performance fee related 60.9 27.7 0.9 Non-compensation costs 125.9 103.2 86.7 Total expenses? 338.9 265.1 216.8
Slide 15: Cost discipline driving reduction in fixed staff costs
Cost discipline driving reduction in fixed staff costs Creating scope to invest for future growth Fixed staff cost development from 2020 to 2021 (£m) a (6.4) | (5.7) \ J Y Fixed staff costs (£12.1m) 76.1 2020 Annualisation 2020 Synergies Net fixed staff cost 2021 Adjusted reduction Ss JUPITER
Slide 16: Variable comp brought back to historic balance
Variable comp brought back to historic balance Additional performance fee-related costs of £60.9m Compensation costs excluding performance fees from 2020 to 2021 (£m) Variable T comp costs: 52% P| (6.4) a = (5.7) J Y Fixed staff costs (£12.1m) Fixed staff costs: 48% 2020 Fixed staff costs Annualisat
Slide 17: Non-comp increases driven by admin fees and one-offs
Non-comp increases driven by admin fees and one-offs Partially offset by post-acquisition synergies Non-compensation costs development from 2020 to 2021 (£m) 12.5 115.7 103.2 2020 Annualisation 2020 Synergies Admin fees Other AUM Other FX & historical adjusted related costs indirect tax 125.9 2021 3
Slide 18: Maintaining a strong capital position
Maintaining a strong capital position Enabling additional return of capital to shareholders Regulatory capital 31Dec 31Dec 31Dec 2021 2021 2020 £m IFPR BIPRU BIPRU regime regime regime Available capital resources 238.8 285.3 237.9 Regulatory requirement (121.8) (117.4) (126.0) Expected capital surpl
Slide 19: Recycling seed portfolio into strategic priorities
Recycling seed portfolio into strategic priorities Seed capital market value of £142m (cost of £123m) GEM Short Duration Bond £237m Global Sustainable Equities £264m Pan European Smaller Cos £221m NZS Global Equity Growth £209m December 2021 gross AUM including cross-holdings Increased level of seed
Slide 20: Maintaining a strong capital position
Maintaining a strong capital position Enabling additional return of capital to shareholders Regulatory capital 31Dec 31Dec 31Dec 2021 2021 2020 £m IFPR BIPRU BIPRU regime regime regime Available capital resources 238.8 285.3 237.9 Regulatory requirement (121.8) (117.4) (126.0) Expected capital surpl
Slide 21: Resilient performance despite headwinds
Resilient performance despite headwinds Strong foundations for future growth G) Strong financial results @) Robust capital base (3) Targeted investment for growth Ss JUPITER |
Slide 22: Andrew Formica, Chief Executive Officer
Andrew Formica Chief Executive Officer Full year results 2021 JUPITER
Slide 23: Investing for growth across three key areas
Investing for growth across three key areas AcemMmTiMEnEis Deeper expertise in the Broader Sustainability Institutional International across the business channel footprint 3 JUPITER | ~
Slide 24: Active sustainability
Active sustainability Broad product range Sustainability - built upon authenticity & accountability Investing for growth Long, successful history of actively-managed sustainable investing 20 investment professionals dedicated to Sustainability, plus 11-strong data science team All fund managers requ
Slide 25: Sustainability - Active responsibility
Sustainability - Active responsibility Holding ourselves to the same high standard as our investee companies Overseen by the Board, ExCo and CSR committee Focus on our people, the environment and our communities Corporate commitment year of significant progress & @) Investing for growth Commitment t
Slide 26: Deeper expertise in Institutional
Deeper expertise in Institutional Our current business 15 ‘Buy’ ratings from Global Consultants Currently 8% of AUM . us urrentiy ee or group => Global Sustainable Equities * Desire to grow this closer to 20% im=> Ecology imm> EMD Corporate Working with consultants * Stronger relationships with glob
Slide 27: Broader international footprint
Broader international footprint A growing business Investment for growth in key new markets * Almost 30% of AUM from clients based outside of * US home market * Key new distribution hires * Near 50% of gross flows from overseas clients * Opened investment office in New York * ¢.£200m net inflows - p
Slide 28: High-conviction active asset management
High-conviction active asset management Helping our clients achieve their long-term investment objectives Active management delivering for our clients Robust financial results Continued strong gross flows Outflows decelerating, continued inflows in newer products SICICiCre Investing to drive future
Slide 29: Q&A
Q&A Full year results 2021 Ss JUPITER
Slide 30: 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 31: Appendix
Appendix Full year results 2021 Ss JUPITER
Slide 32: Largest mutual funds performing well
Largest mutual funds performing well Amore diversified, less concentrated business AUM at AUM at an 3rd 2nd 1st Dec 2021! Dec 2020! Quartile Quartile Quartile Quartile Dynamic Bond £8.4bn £8.6bn ell European Bana £4.6bn Le Strategic Bond £4.4bn £4.4bn | UK Mid Cap £3.3bn £3.5bn __l*"F Merlin Income
Slide 33: Funds with performance fees
Funds with performance fees Driven by strong investment performance Illustrative example AUM ofall share classes P a A Performance Funds with performance with performance fee Share class Share High Water heBenchmark? Banchmark/Hurdle Performance fee fee potential potential class NAV Mark rate (Em) H
Slide 34: Long-term incentive compensation
Long-term incentive compensation Estimated future long-term incentive compensation amortisation Amount remaining £m to expense 2022 2023 2024 2025 2018 annual grant 0.8 0.8 - - - 2019 annual grant 5.8 48 1.0 - - 2020 annual grant 14.9 8.8 5.1 1.0 - 2021 annual grant 32.9 15.4 10.5 5.8 1.2 In relatio
Slide 35: Non-compensation costs
Non-compensation costs Disciplined cost management 2020 in eee annualised Z0z0 AUM-related costs 70 63 55 Infrastructure 33 37 33 Other 23 16 15 Total non-compensation costs 126 116 103 Ss JUPITER 34
Slide 36: Proactive seeding portfolio
Proactive seeding portfolio Focused use of our balance sheet to support organic growth Seed size and length of investment 100% 90% e@ GSE SICAV 80% 70% Jupiter Flexible Macro Global High Yield Bond 60% 50% % of fund held 40% 30% European Smaller Co's 20% Emerging & Frontier income trust 10% e@ @ Evr
Slide 37: 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 AUM (£bn) partners and their associated intermediary channels rather . ae a . . mw Advisory @ Discretionary @ Institutional than directly from our clients
Slide 38: Successful diversification
Successful diversification Changing asset base over the last five years Split of AUM by asset class (£bn) Equities mFixedIncome mMulti-Asset mAlternatives 60.5 40.5 2016 2021 Split of AUM by client geography (£bn) mUK EMEA BAsia 40.5 2016 m RoW 60.5 2021 Ss JUPITER 37
Slide 39: Net flows by region
Net flows by region @ EMEA generated positive net inflows of around £140m, led Net flows (£bn) by demand for NZS Capital’s global equity strategies, . . UK MEMEA BAsia BROW Strategic Absolute Return Bond and Gold and Silver. 2 same @ There were small positive net inflows in Asia. Net outflows in the
Slide 40: 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 Ss JUPITER | »
Jupiter Fund Management — FY2021 Earnings Presentation on 6ix