Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — H1 2021 Earnings Presentation
36 slides from Jupiter Fund Management's earnings presentation, 2021
Slide 1: Interim Results 2021
Interim Results 2021 JUPITER
Slide 2: Andrew Formica
2021 Andrew Formica Interim results JUPITER
Slide 3: Stronger foundations and further strategic progress
Stronger foundations and further strategic progress Net revenue Up 38% £224.0m (H1 2020: £161.9m) Underlying profit 0 £78.2m before tax U p 38% (H1 2020: £56.6m) Underlying EPS Up 15% 11.5p (H1 2020: 10.0p) Assets under £60.3bn: management Up 54% (H1 2020: £39.2bn) 4£16.6bn of AUM was acquired throu
Slide 4: Continued strong long-term investment performance
Continued strong long-term investment performance The value of a high conviction active asset manager Three-year mutual fund performance 12% over 5 years (FY 2020: 69%) @ ist quartile m2nd quartile m3rd quartile m4th quartile > JUPITER | ; Source: Morningstar and Jupiter internal as at 30 June 2021.
Slide 5: Strong performance amongst larger funds
Strong performance amongst larger funds An increasingly diversified business AUM at AUM at ah 3rd 2nd 1st Jun 20211 Dec 2020! Quartile Quartile Quartile Quartile Dynamic Bond £8.3bn £8.6bn Pe European £4.4bn £4.6bn Strategic Bond £4.4bn £4.4bn ———— UK Mid Cap £3.5bn £3.5bn ————————————————— Merlin I
Slide 6: Robust and growing gross sales
Robust and growing gross sales Gross flows (£bn) 12 £9.6bn 10 0 H2 2018 H12019 H22019 H12020 H22020 H12021 a N m@ Mutual Funds & Investment Trusts m™ Segregated Mandates @ Record gross sales in first half © Consistent growth - 73% increase from H2 2018 > JUPITER | =
Slide 7: Robust and growing gross sales, challenges in net flows
Robust and growing gross sales, challenges in net flows Gross flows (£bn) 12 £9.6bn 10 0 H2 2018 H12019 H22019 H12020 H22020 H12021 a N m@ Mutual Funds & Investment Trusts m™ Segregated Mandates @ Record gross sales in first half © Consistent growth - 73% increase from H2 2018 Net flows (£bn) 1 (3)
Slide 8: Net outflows concentrated in a few areas
Net outflows concentrated in a few areas Gross and net flows (£bn) mGross mNet 25 2.0 15 1.0 0.5 . = f bb * © Emerging Market Equities UK Equities European Growth Merlin Long only Systematic AUM (£bn) 13 17.2 6.6 71 47 £3.8bn £(3.0)bn Total gross flows Total net outflows > JUPITER Assets under manag
Slide 9: Growth in key areas of client demand
Growth in key areas of client demand Developing opportunities for future growth AUM (£m) mDec-20 mJun-21 1600 1400 1200 1000 800 600 400 200 a | . a GEM Short Strategic Corporate Asian Income Gold & Silver Japan Global Equity Chrysalis Duration Absolute conpevate Bond Income Absolute Bond Return Bon
Slide 10: Wayne Mepham
2021 Wayne Mepham JUPITER
Slide 11: Resilient performance despite headwinds
Resilient performance despite headwinds Net revenue Up 38% to £224.0m (H1 2020: £161.9m) Underlying profit before tax Up 38% to £78.2m (H1 2020: £56.6m) Exceptional items Up to £21.2m (H1 2020: £15.8m) Statutory profit before tax Up 40% to £57.0m (H1 2020: £40.8m) 11.5p Underlying EPS (H1 2020: 10.0
Slide 12: Underlying profit before tax of £78m
Underlying profit before tax of £78m Operating margin stable at 36% (36) —— 2 122 H2 2020 Performance fees H2 2020 Net revenue Underlying PBT profit Underlying PBT (ex-performance fees) 36% Operating margin (FY 2020: 41%) (0) 13) 78 S7 Costs Investment H1 2021 Exceptional H1 2021 gains/(losses) Unde
Slide 13: Net revenues of £224m
Net revenues of £224m Impact of AUM growth partially offset by outflows (74) LL] 32 fe) u — es Dn 286 222 224 H2 2020 adjusted — Performance fees DEO allocation H2 2020 Revenue Net outflows Markets & other = H1 2021 Revenue revenuel (ex-performance fees) 76.6Dps £59bn H1 2021 Net man. fee H1 2021 Av
Slide 14: Performance fee potential
Performance fee potential Driven by strong investment performance Funds with performance AUM of all share classes with Estimated performance Performance fee at 5% fee potential performance fee potential Performance fee rate fee as at 30/06/21 out-performance from (£m) (£m) 30/06/21 (£m) Chrysalis In
Slide 15: Investing for growth while maintaining cost discipline
Investing for growth while maintaining cost discipline Cost management despite headwinds Expenses Expenses (£m) and total compensation ratio (%) £m H121 H2 20 H120 mm Non-compensation mm Compensation costs . —Total compensation ratio Fixed staff costs 35.4 44.8 313 36% Variable staff costs 41.7 61.5
Slide 16: Operating costs of £97m
Operating costs of £97m Focus on disciplined cost management Operating costs development from H2 2020 to H1 2021 (£m) Non-comp costs (2.4) (2.9) Fixed staff costs (6.5) 105.0 H2 2020 Merian integration Fixed staff costs 1.2 Non-comp costs FX & historical indirect tax 97.3 H1 2021 3 JUPITER 15
Slide 17: Maintaining a strong capital position
Maintaining a strong capital position A clear capital allocation framework Regulatory capital 30Jun 31Dec 1Jul £m 2021 2020? 2020 Ordinary shareholder funds 868 886 848 Add: Subordinated debt 49 49 49 Less: Goodwill and intangible assets! (622) (630) (637) Tangible capital 295 305 260 Less: Foreseea
Slide 18: A clear capital allocation framework
Aclear capital allocation framework Seed capital market value of £159m GEM Short Duration Bond (£209m external holding) Global Sustainable Equities (£119m external holding) _ 160 & 20 & 140 — — z 180 = 120 150 100 120 80 90 60 60 UW 40 t ‘ a La =a a a Sep-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20
Slide 19: Resilient performance despite headwinds
Resilient performance despite headwinds Strong foundations for future growth 15% increase in underlying earnings per share Merian integration successfully complete Focused cost management - enabling investment for growth Strong potential for performance fees OOO) ©) © Strategic product development >
Slide 20: Andrew Formica
2021 Andrew Formica Interim results S JUPITER
Slide 21: Welcoming our colleagues back to the office
Welcoming our colleagues back to the office With a workplace and culture focused on collaboration * Welcoming staff back from 6‘ September * Flexible working around a ‘2-1-2’ system * New work spaces designed around flexible working and collaboration * Range of sessions planned to reinforce strong c
Slide 22: Continued focus on strategic priorities
Continued focus on strategic priorities Deliver strong investment performance Reinvest in UK retail Expand the range of active investment strategies Continue to diversify the business Attract, develop and retain high-quality talent Build on overseas foundations and broaden institutional offering Del
Slide 23: Ongoing commitment to Sustainability
Ongoing commitment to Sustainability Holding ourselves and our investee companies to the same high standards - Commitment to Net Zero - External recognition Strong corporate commitment ESG factors built into supplier selection process - Investing for growth with key new hires - Upgrades on ESG ratin
Slide 24: A broader, more diversified Fixed Income offering
A broader, more diversified Fixed Income offering Diverse product range with very strong performance - £8.3bn AUM - £12.2bn AUM - £15.1bn AUM - Dynamic & Strategic - Dynamic & Strategic - Dynamic & Strategic Bond: 95% of AUM Bond: 90% of AUM Bond: 84% of AUM - 2investment strategies - 4investment st
Slide 25: Strong foundations and strategic progress
Strong foundations and strategic progress Strong investment performance Robust gross flows Positive inflows in key drivers of future growth Ongoing progress on our strategic priorities SICICiCre Well positioned for future growth 3 JUPITER | ~
Slide 26: Q&A
2021 Q&A Interim results S JUPITER
Slide 27: 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 28: Appendix
2020 Appendix Full year results S JUPITER
Slide 29: Funds with performance fees
Funds with performance fees Driven by strong investment performance Illustrative example AUM ofall share Performance Estimated Performance Funds with classes with Share High performance fee at 5% out- vs Performance performance fee performance fee class Water Benchmark/ Benchmark/Hurdle CORD fee as
Slide 30: Funds with performance fees
Funds with performance fees Driven by strong investment performance Performance fee 5 High water Performance esti! ERGO OLE £m NAV! Adjusted NAV? mark? hurdle’ performance fee performance as at 31/03/215 from 31/03/21 (£m) Chrysalis Investments 1,128 549 303 160 49 60.8 {The NAV of the fund at the l
Slide 31: Non-compensation costs
Non-compensation costs Disciplined cost management £m : H121 H2 20 AUM related costs 35 33 Infrastructure 17 19 Other 10 8 Total non-compensation costs 62 60 Ss JUPITER
Slide 32: Proactive seeding portfolio
Proactive seeding portfolio Focused use of our balance sheet to support organic growth Seed size and length of investment 100% Global High Yield Flexible Income Bond 80% Jupiter Flexible Macro : Merlin Real Return z Eurozone Equity 2 60% 3 2 2 ‘o ZF 40% European Smaller (UT) JEFIT Global 20% Global
Slide 33: 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 34: Successful diversification
Successful diversification Changing asset base over the last five years Split of AUM by asset class (£bn) Equities mFixedIncome mMulti-Asset mAlternatives 60.3 37.0 H1 2016 H1 2021 Split of AUM by client geography (£bn) mUK MEMEA BAsia 37.0 H1 2016 m RoW 60.3 H1 2021 Ss JUPITER 33
Slide 35: Net flows by region
Net flows by region @ EMEA generated positive net inflows in the first half of the year, with over £170m led by demand for Global Equity Absolute Return, Gold & Silver and Strategic Absolute Return Bond There were small outflows in Asia Pacific, with outflows in the second quarter (largely from Dyna
Slide 36: 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 | *
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