Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — FY2024 Earnings Presentation
33 slides from Jupiter Fund Management's earnings presentation, February 2025
Slide 1: Full Year Results 2024
JUPITER FUND MANAGEMENT PLC FULL YEAR RESULTS 2024 February 2025
Slide 2: Matthew Beesley, Chief Executive Officer
MATTHEW BEESLEY CHIEF EXECUTIVE OFFICER
Slide 3: Resilient results in the face of market challenges
Resilient results in the face of market challenges A challenging period – but as we expected Resolute focus on execution of strategy Continued delivery of cost discipline Actions leave us in stronger place for growth 2
Slide 4: Key metrics remain in line with expectations
Key metrics remain in line with expectations Net revenue £364.1m (2023: £368.8m) Net flows1 £(10.3)bn Operating costs £273.2m (2023: £(2.2)bn) (2023: £264.6m) AUM £97.5m £45.3bn Underlying profit before tax (2023: £105.2m) (31 Dec 2023: £52.2bn) Underlying EPS 13.4p (2023: 14.8p) Investment Ordinary
Slide 5: High-conviction active management
High-conviction active management Three-year mutual fund performance • 50% of mutual fund AUM in top 31% quartile, 30% top decile 61% • Larger funds performing well above median 50% • Decisive action taken where (2023: 59%) underperformance has persisted 8% 11% 1st quartile 2nd quartile 3rd quartile
Slide 6: Improving gross flows
Improving gross flows Gross inflows (£bn) 20 £14.1bn 15 10 5 0 2020 2021 2022 2023 2024 Retail, Wholesale & Inv. Trusts Institutional ● Improved gross flows to more ‘normalised’ levels ● Driven by retail and wholesale clients 5
Slide 7: Improving gross flows…with Value-driven outflows
Improving gross flows…with Value-driven outflows Gross inflows (£bn) Net flows (£bn) 20 2 £14.1bn £(10.3)bn 0 15 -2 10 -4 -6 5 -8 0 -10 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Retail, Wholesale & Inv. Trusts Institutional Retail, Wholesale & Inv. Trusts Institutional ● Improved gross flows
Slide 8: Improving gross flows…but underlying outflows in Q4
Improving gross flows…but underlying outflows in Q4 Gross inflows (£bn) Net flows (£bn) Underlying flows 20 2 £14.1bn £(3.3)bn 0 15 -2 10 -4 -6 5 -8 0 -10 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Retail, Wholesale & Inv. Trusts Institutional Retail, Wholesale & Inv. Trusts Institutional ● I
Slide 9: Growth prospects across investment capabilities
Growth prospects across investment capabilities £bn AUM Net flows 13% 19% UK equities 5.7 (5.7)1 7% European equities 3.2 (0.9) Global equities 4.7 (3.3)2 10% Systematic equities 9.9 0.3 14% Asian and EM equities 6.6 1.4 Multi-manager 6.4 (1.0) 15% 22% Fixed Income 8.8 (1.1) 45.3 (10.3) 1. Underlyin
Slide 10: Wayne Mepham, Chief Financial and Operating Officer
WAYNE MEPHAM CHIEF FINANCIAL AND OPERATING OFFICER
Slide 11: Cost discipline delivers resilient results
Cost discipline delivers resilient results Resilient results in line with management expectations Resolute focus on cost discipline Significant capital deployed, but balance sheet remains strong 10
Slide 12: Movements in underlying profit before tax
Movements in underlying profit before tax £m 98.4 18.5 97.5 88.3 5.6 79.0 (9.2) (22.7) (2.3) 2023 underlying Revenue Costs Other 2024 underlying 2024 2024 Exceptional costs 2024 PBT (ex pfees) PBT (ex pfees) performance underlying PBT statutory PBT fee impact Other includes gains/(losses) on seed in
Slide 13: Movement in AUM
Movement in AUM… …December 2024 closing AUM down 13% over one year at £45.3bn £bn 4.2 3.4 (2.2) (10.3) 50.2 52.2 45.3 2023 Net flows Markets 2023 Net flows Markets 2024 opening AUM closing AUM closing AUM £50.9bn 2023 average AUM £50.7bn 2024 average AUM 12
Slide 14: Net revenues excluding performance fees of £333m
Net revenues excluding performance fees of £333m £m 31.2 18.5 (35.2) (6.0) 355.6 364.1 332.9 2023 revenue Net flows Markets & other Tiered pricing 2024 revenue 2024 2024 revenue (ex-pfees) (ex-pfees) performance fees 65bps £31m FY 2024 net man. fee Performance fees margin (2023: £13m) (2023: 70bps)
Slide 15: Effective and strategic cost management
Effective and strategic cost management Expenses Investing in (£m) 2024 2023 2022 growth opportunities Fixed staff costs 79.1 78.1 82.4 Variable staff costs1 84.6 79.2 104.5 – performance fee related 12.7 6.4 33.9 Non-compensation costs 109.5 107.3 114.6 Building a scalable platform to drive Total e
Slide 16: Maintaining a strong capital position
Maintaining a strong capital position Provides investment opportunities and supports returns to shareholders Regulatory capital Capital allocation framework (£m) 31 Dec 2024 31 Dec 2023 Available resources 324 280 Organic Final ordinary dividend (12) (19) Ordinary dividend investment Debt redemption
Slide 17: Matthew Beesley, Chief Executive Officer
MATTHEW BEESLEY CHIEF EXECUTIVE OFFICER
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 …in select geographies …with costs managed …with a curated product …with our purpose and channels carefully through a offering, while also embedded in all we do relentless pursuit explor
Slide 19: Challenging backdrop but strong underlying progress
Challenging backdrop but strong underlying progress Enhanced range of investment expertise Increase scale Building on underlying momentum A stronger institutional base 18
Slide 20: Continued delivery of efficiencies
Continued delivery of efficiencies Resolute focus on cost discipline Decrease undue Continuing to remove undue complexity complexity Investing in technology 19
Slide 21: Exploring ways to reach new clients
Exploring ways to reach new clients Enhanced efficiency in digitally-enabled client-facing teams Broaden our appeal to Delivering our investment expertise to new clients clients Exploring new methods of delivery 20
Slide 22: Engaging across our stakeholders
Engaging across our stakeholders Driving total returns for our shareholders Deepen relationships An engaged, inclusive culture for our people with all stakeholders A high quality experience with positive outcomes for our clients 21
Slide 23: Resilient performance with underlying progress
Resilient performance with underlying progress Progress towards strategic objectives Increased strength and depth of investment expertise Resolute focus on cost discipline, within a fully scalable operating model Optionality through balance sheet strength 22
Slide 24: Questions
QUESTIONS JUPITER FUND MANAGEMENT PLC
Slide 25: Appendix
APPENDIX Ss JUPITER
Slide 26: 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 Dec 20241 Dec 20231 Quartile Quartile Quartile Quarti
Slide 27: Funds with performance fees
Funds with performance fees Driven by strong investment performance Illustrative example Performance Earned AUM of all share classes with Funds with performance fee High Water vs. Performance performance performance fee potential Share class Share class NAV Benchmark/Hurdle potential Mark Benchmark/
Slide 28: Long-term incentive compensation
Long-term incentive compensation Amount remaining £m to expense 20251 2026 2027 2028 In relation to 2022 performance fees 0.4 0.3 0.1 0.0 0.0 In relation to 2023 performance fees 1.5 1.0 0.4 0.1 0.0 In relation to 2024 performance fees 6.7 3.3 2.2 1.0 0.2 Total 8.6 4.6 2.7 1.1 0.2 Estimated future l
Slide 29: Non-compensation costs
Non-compensation costs (£m) 2024 2023 2022 AUM-related costs 52 48 58 Infrastructure 40 40 36 Other 17 19 21 Total non-compensation costs 109 107 115 28
Slide 30: Proactive seeding portfolio
Proactive seeding portfolio Focused use of our balance sheet to support organic growth Seed size and length of investment Systematic Funds Merlin Moderate Select 100% GEM ex-China 80% % of fund held 60% Pan European Smaller Companies Asia Pacific Income 40% Global High Yield Bond 20% 0% 0.0 1.0 2.0
Slide 31: Management expectations for 2025
Management expectations for 2025 2025 Net management fee margin 67bps Budget performance fees c.£10m Total compensation ratio (before performance fees) 49% Non-compensation administrative expenses £110m Exceptional items £4m 1 Ordinary dividend pay-out ratio 50% 1. Excluding the impact of all perfor
Slide 32: 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, operations, results, business, strategy
Slide 33: Jupiter Fund Management plc contact details
Jupiter Fund Management plc 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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