Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — Non-Deal Roadshow (September 2020)
24 slides from Jupiter Fund Management's roadshow presentation, September 2020
Slide 1: Jupiter Fund Management Plc
JUPITER FUND MANAGEMENT PLC September 2020
Slide 2: Jupiter – an independent, active fund manager
Jupiter – an independent, active fund manager Clear and consistent investment identity for 35 years Active funds management is in our DNA Provide an optimum environment for talented, high conviction managers Client centred approach embedded in all we do Our long standing success in UK retail channel
Slide 3: Strategic priorities
Strategic priorities ● Consistently deliver strong investment performance and outcomes for clients ● Continue diversifying the business by client type, investment strategy and geography ● Attract, develop and retain high-quality talent aligned with our culture ● Expand the range of active investment
Slide 4: Strategic highlights – H1 2020
Strategic highlights – H1 2020 Delivering growth through investment excellence 80% of mutual funds outperformed1 over 3 years • 76% first quartile Positive flows in Q2 2020 • First quarter of positive flows since 2017 • NZS wins first two investment mandates Merian completed on time despite challeng
Slide 5: Overview of the combined business at 1st July 2020
Overview of the combined business at 1st July 2020 Assets under management Employees Product and performance £56bn 690 21 AUM as at 1 Jul-20, with FTEs as at 1 Jul-20, of which investment strategies, with 86% 109 77% in mutual funds are investment professionals1 of AUM above median over 3 years2 Ass
Slide 6: Our purpose is to deliver outperformance after fees for clients
Our purpose is to deliver outperformance after fees for clients High-conviction active management Three-year mutual fund performance Active management delivers in difficult conditions 18% ● 76% of AUM1 (Dec 2019: 38%) in mutual funds in first quartile Long-term performance record maintained over fiv
Slide 7: Opportunities for growth
Opportunities for growth Inception Jun 2018 1 Jul 2020 Fund Manager Quartile Ranking1 date 1 (£m) (£m) Asian Income Jason Pidcock Mar 2016 551 653 Harry Richards & Adam Corporate Bond May 2018 120 128 Darling Global High Yield Short Duration Bond Adam Darling Aug 2019 - 15 Emerging Markets Short Dur
Slide 8: Combined financial metrics
Combined financial metrics Net revenue drivers Merian Merian Jupiter Combined 2019 H1 2020 H1 2020 H1 2020 Assets under management £22bn £17bn £39bn £56bn - Of which GEAR £2.9bn £1.2bn - £1.2bn Exit run-rate net 1 management fee margin 66bps 66bps 82bps 77bps 1 Increased from 62bps due to revenue re
Slide 9: Capital allocation framework
Capital allocation framework Supporting the future growth of the business alongside returns to shareholders CAPITAL ALLOCATION FRAMEWORK Opportunities Additional Organic Ordinary for accelerated returns to growth dividends growth shareholders ● Prioritise allocation of ● Team hires, bolt-on ● Progre
Slide 10: Priorities for H2 2020
Priorities for H2 2020 Embed resilience and agility for future Prioritise Successfully Focus on Identify Maintain Build upon and existing integrate cultural additional excellent broaden investments in Merian into integration of savings and investment momentum in the business Jupiter new colleagues f
Slide 11: Appendix
Appendix
Slide 12: Largest funds performing well
Largest funds performing well 58% of invested assets1 represented in the below funds AUM at AUM at 4th 3rd 2nd 1st Jun 2020 Dec 2019 Quartile Quartile Quartile Quartile Dynamic Bond2 £7.3bn £7.0bn European £4.6bn £4.9bn Strategic Bond £4.3bn £4.2bn Merlin Income £2.1bn £2.2bn Merlin Balanced £1.8bn
Slide 13: AUM by distribution partner
AUM by distribution partner Our assets reach us through a number of different channels AUM (£bn) ● The majority of our assets come through our distribution partners and their associated intermediary channels rather than directly from our clients 45.9 ● The line between advisory and discretionary con
Slide 14: Successful diversification
Successful diversification Changing asset base over the last five years Split of AUM by asset class (£bn) Split of AUM by client geography (£bn) 39.2 39.2 34.3 34.3 H1 2015 H1 2020 H1 2015 H1 2020 UK Europe Asia RoW Equities Fixed Income Multi Asset Alternatives 13
Slide 15: Net flows by asset class
Net flows by asset class (£bn) 8 ● Net outflows for the first half of 2020 were £2.0bn ● Despite strong performance, Fixed 6 Income saw net outflows as clients reduced exposure to bonds globally 4 ● Equity outflows stabilised towards the end of the period as the reaction to the change in fund manage
Slide 16: Net flows by region
Net flows by region Net flows (£bn) 1 ● H1 20 has seen positive flows in Segregated Mandates in the US following a new strategic partnership with NZS Capital ● In the UK, outflows in H1 20 are due to Absolute Return and European - ● Outflows in Asia in H1 20 are concentrated across Dynamic Bond (1)
Slide 17: H1 2020 Merian AUM progression
H1 2020 Merian AUM progression AUM at £16.7bn Movement in AUM (£bn) (1.7) (1.6) (0.5) (0.5) (1.4) 22.4 Net outflows of £4.3bn 16.7 Dec-19 GEAR Systematic Desk FM Change Other Markets Jun-20 ● Mutual fund net outflows of £4.3bn ● £1.4bn of losses from underlying markets, investment performance and fo
Slide 18: Jupiter investment identity
Jupiter investment identity Reasons for an active high-conviction approach Client demand for Active Specialties remains healthy ● Client demand trends remain encouraging $106tn AUM ● Long-term performance potential $88tn AUM Solutions: 15% ● Passive guarantee 100% of the downside Alternatives: 17% ●
Slide 19: Financial results
Financial results H1 20 H1 19 Change Net management fees £161.4m £182.9m -12% Net revenue £161.9m £190.8m -15% Underlying profit before tax £56.6m £88.8m -36% Underlying EPS 10.0p 15.7p -36% Statutory profit before tax £40.8m £81.4m -50% Statutory basic EPS 6.5p 15.1p -57% Interim dividend 7.9p 7.9p
Slide 20: Merian costs excluding exceptional items
Merian costs excluding exceptional items Delivering cost synergies Merian Merian Merian Annualised H2 20 Projected run rate as 2019 take on costs at 31/12/2020 Fixed staff costs £31m £18m £13m Variable staff costs £37m £20m £18m Compensation costs £68m £38m £31m Non-compensation costs £47m £28m £26m
Slide 21: Maintain strong capital position
Maintain strong capital position Our overall capital management policy remains unchanged Regulatory capital Ordinary dividend maintained (pence per share) (£m) Dec 19 1 Jul 201 Ordinary shareholder funds 612 852 Add: Subordinated debt - 49 9.2 9.2 Less: Goodwill and intangible assets (347) (644) Tan
Slide 22: COVID-19 Pandemic – Jupiter responses
COVID-19 Pandemic – Jupiter responses Health and wellbeing of staff and their families is paramount Our stakeholders Support for working from home, pastoral care with emphasis on mental health, no furloughing or People government support, phased re-opening of offices in London and some overseas loca
Slide 23: Forward looking statements
Forward looking statements This presentation may contain certain “forward-looking timing, impact and other uncertainties of future acquisitions or statements” with respect to certain plans of Jupiter Fund combinations within relevant industries; and the impact of Management plc (Jupiter) and its cur
Slide 24: 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 @jupiterAM_UK Jupiter Asset Management Jupiteram.com
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