Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — H1 2024 Earnings Presentation
30 slides from Jupiter Fund Management's earnings presentation, 2024
Slide 1: Interim Results 2024
JUPITER FUND MANAGEMENT PLC INTERIM RESULTS 2024
Slide 2: Presenters: Matthew Beesley and Wayne Mepham
Jupiter fund management plc MATTHEW BEESLEY CHIEF EXECUTIVE OFFICER WAYNE MEPHAM CHIEF FINANCIAL AND OPERATING OFFICER
Slide 3: A solid set of results…with reasons for optimism
A solid set of results…with reasons for optimism Net flows in line with our expectations, with encouraging underlying trends Cost discipline providing room for continued investment Ongoing strategic progress Early signs of improved market optimism 2
Slide 4: Key metrics in line with expectations
Key metrics in line with expectations Net revenue £173.7m (H1 2023: £181.0m) Net flows £(3.4)bn £129.1m (H1 2023: £0.0bn) Operating costs (H1 2023: £132.2m) Underlying net Underlying profit before tax £47.9m (H1 2023: £46.4m) flows1 £(0.2)bn Underlying EPS 6.6p (H1 2023: 6.7p) Investment Ordinary di
Slide 5: Movements in underlying profit before tax
Movements in underlying profit before tax (0.1) 1.3 3.0 (5.2) (9.2) 48.9 46.6 47.9 38.7 H2 2023 Revenue Costs Gain & losses H1 2024 Performance H1 2024 Exceptional costs 2 H1 2024 underlying PBT and other 1 underlying PBT fee impact underlying PBT statutory PBT (ex pfees) (ex pfees) 1Other includes
Slide 6: Active high-conviction investment
Active high-conviction investment Active steps being taken to improve performance Three-year mutual fund performance 22% 57% over 5 years (H1 2023: 58%) 55% 43% above median (H1 23: 52%) 23% 43% over 1 year (H1 2023: 53%) 12% 1st quartile 2nd quartile 3rd quartile 4th quartile 5
Slide 7: Improving gross flows
Improving gross flows Gross inflows (£bn) 10 £7.5bn 8 6 4 2 0 H1 22 H2 22 H1 23 H2 23 H1 24 Retail, Wholesale & Inv. Trusts Institutional ● Pick up in gross flows ● Most notably from retail and wholesale clients 6
Slide 8: Improving gross flows…with Value-driven outflows
Improving gross flows…with Value-driven outflows Gross inflows (£bn) Net flows (£bn) 10 2 £7.5bn 8 £(3.4)bn 0 6 4 -2 2 0 -4 H1 22 H2 22 H1 23 H2 23 H1 24 H1 22 H2 22 H1 23 H2 23 H1 24 Retail, Wholesale & Inv. Trusts Institutional Retail, Wholesale & Inv. Trusts Institutional ● Pick up in gross flows
Slide 9: Improving gross flows… with encouraging underlying flows
Improving gross flows… with encouraging underlying flows Gross inflows (£bn) Net flows (£bn) 10 Underlying 2 net flows £7.5bn 8 £(0.2)bn 0 6 4 -2 2 0 -4 H1 22 H2 22 H1 23 H2 23 H1 24 H1 22 H2 22 H1 23 H2 23 H1 24 Retail, Wholesale & Inv. Trusts Institutional Retail, Wholesale & Inv. Trusts Instituti
Slide 10: A well-diversified business across capabilities
A well-diversified business across capabilities 16% AUM Net flows 19% (£bn) UK equities 8.4 (3.5)1 UK equities European equities 4.1 (0.3) European equities 8% Global equities Global equities 6.6 (1.0)2 Systematic equities 13% Systematic equities 9.6 0.9 Asian and EM equities Multi-manager Asian and
Slide 11: Movement in AUM
Movement in AUM… …June 2024 closing AUM of £51.3bn 3.0 2.5 (2.2 ) (3.4 ) 51.4 52.2 51.3 Jun 2023 Net flows Markets 2023 Net flows Markets Jun 2024 closing AUM closing AUM closing AUM £52.1bn H1 AUM 2024 average £50.9bn H2 AUM 2023 average Average AUM is calculated using a 7-point basis. 10
Slide 12: Net revenues excluding performance fees of £170m
Net revenues excluding performance fees of £170m Total net revenue of £174m (9.4) 10.1 3.9 (2.7) (3.2) 175.0 169.8 173.7 1 H2 2023 revenue Net flows Markets Tiered pricing Other H1 2024 revenue H1 2024 H1 2024 revenue (ex-pfees) (ex-pfees) performance fees 65bps H1 2024 Net man. fee margin (H2 2023:
Slide 13: Effective and strategic cost management
Effective and strategic cost management Expenses Investing in (£m) H1 2024 H2 2023 H1 2023 growth opportunities Fixed staff costs 38.8 41.1 37.0 Variable staff costs1 41.0 37.8 41.4 – performance fee related 2.6 2.9 3.5 Non-compensation costs 49.3 53.5 53.8 Building a scalable platform to drive Tota
Slide 14: Maintaining a strong capital position
Maintaining a strong capital position Provides investment opportunities and supports returns to shareholders Regulatory capital Capital allocation framework (£m) Organic 30 Jun 2024 31 Dec 2023 Ordinary dividend investment Available capital resources 270.8 248.9 Regulatory requirement1 (72.3) (71.8)
Slide 15: Increase scale, decrease complexity, broaden appeal, deepen relationships
INCREASE DECREASE BROADEN DEEPEN SCALE UNDUE OUR APPEAL RELATIONSHIPS COMPLEXITY TO CLIENTS WITH ALL STAKEHOLDERS …in select geographies …with costs managed …with a curated product …with purpose and channels carefully through a offering, while also embedded in all we do relentless pursuit exploring
Slide 16: Increase scale
Institutional International ‒ Continued strength in Institutional pipeline ‒ Outflows in continental Europe, net inflows in all other regions ‒ Net revenue positive fundings into Systematic equities and Asian & EM equities ‒ Over $2bn on behalf of clients based in Latin America Increase Industry cum
Slide 17: Leveraging our UK heritage
Leveraging our UK heritage Committed to our core market of UK wholesale Net flows from UK wholesale (£bn) Evolving with the market, as a 1 market leader 0 -1 Investing in -2 core UK equities… -3 -4 …while diversifying -5 across capabilities 2020 2021 2022 2023 H1 2024 Value team Chrysalis Underlying
Slide 18: Increase scale, decrease complexity, broaden appeal, deepen relationships
INCREASE DECREASE BROADEN DEEPEN SCALE UNDUE OUR APPEAL RELATIONSHIPS COMPLEXITY TO CLIENTS WITH ALL STAKEHOLDERS - Continued focus on - Ongoing curation of - Investing in an - Engagement scores key growth areas product range improved client continue to be above - Protecting our core - Investment in
Slide 19: Strategic progress with reasons for cautious optimism
Strategic progress with reasons for cautious optimism Solid financial results Improved gross and encouraging underlying net flows Effective cost discipline, providing space for growth Early signs of improvement in client sentiment 18
Slide 20: Questions
Jupiter fund management plc QUESTIONS
Slide 21: Appendix
a APPENDIX a JUPITER ASSET MANAGEMENT
Slide 22: Larger mutual funds performing well
Larger mutual funds performing well A more diversified, less concentrated business 3-year performance: Equities Fixed Income Multi-Asset Alternatives 5-year performance: Equities Fixed Income Multi-Asset Alternatives AUM at AUM at 4th 3rd 2nd 1st Jun 20241 Dec 20231 Quartile Quartile Quartile Quarti
Slide 23: Funds with performance fees
Funds with performance fees Driven by strong investment performance Illustrative example Performance Estimated AUM of all share classes with Funds with performance Share class High Water vs. Performance performance performance fee potential Share class Benchmark/Hurdle fee potential NAV Mark Benchma
Slide 24: Long-term incentive compensation
Long-term incentive compensation Estimated future long-term incentive compensation amortisation Amount remaining £m to expense 2024 H2 2025 2026 2027 In relation to 2022 performance fees 0.7 0.3 0.3 0.1 - In relation to 2023 performance fees 2.1 0.7 0.9 0.4 0.1 Total 2.8 1.0 1.2 0.5 0.1 23
Slide 25: Non-compensation costs
Non-compensation costs (£m) H1 2024 H2 2023 H1 2023 AUM-related costs 26 23 25 Infrastructure 20 21 18 Other 3 9 11 Total non-compensation costs 49 53 54 24
Slide 26: Balancing strong cost discipline whilst investing for scale
Balancing strong cost discipline whilst investing for scale Cost base 20% Investing for growth Variable 57% 31% Fixed staff Fixed 43% 21% AUM-related H1 2024 cost base (ex pfees) 25
Slide 27: Management expectations for 2024
Management expectations for 2024 2024 Net management fee margin 66bps Performance fees c.£5m – £10m Fixed staff costs £79m Total compensation ratio (excluding performance fees) 46% Non compensation costs £109m H1-only exceptional items £9.2m 1 Ordinary dividend pay-out ratio 50% 1Excluding the impac
Slide 28: Proactive seeding portfolio
Proactive seeding portfolio Focused use of our balance sheet to support organic growth Seed size and length of investment Systematic Funds 100% Merlin Moderate Select 80% Global Sustainable Equities SICAV GEM ex-China % of fund held 60% Europe ex-UK Equity 40% Asia Pacific Income Global High Yield B
Slide 29: 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 30: 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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