Jupiter Fund Management Plc · LSE:JUP
Jupiter Fund Management — H1 2016 Earnings Presentation
22 slides from Jupiter Fund Management's earnings presentation, 2016
Slide 1: Delivering: 2016 Half Year Results
DELIVERING 2016 Half Year Results JUPITER FUND MANAGEMENT PLC
Slide 2: Highlights
2016 HALF YEAR RESULTS 1 Highlights Executing our strategy ■ Improved 3 year investment performance ■ Continued organic flow growth from core mutual fund franchise ■ £0.4bn of net mutual fund flows ■ AUM increased 4% to £37.0bn ■ Continued diversification by product, client type and geography ■ Adju
Slide 3: First half highlights
2016 HALF YEAR RESULTS 2 First half highlights Strong performance against a backdrop of falling markets Measure H1 2015 H1 2016 Change Net revenues £169.4m £170.0m - Net management fee margins 88bps 88bps Adjusted EBITDA £86.8m £84.7m (2%) Adjusted EBITDA margin 51% 50% (1%) Underlying EPS 14.9p 14.
Slide 4: Revenues
2016 HALF YEAR RESULTS 3 Revenues Organic growth (ex performance fees) of 5% Net revenue Net revenue (£ million) £ million H1 15 H1 16 % +/- Net management fees Net initial charges Performance fees Net management fees 149.2 156.5 +5% 169 170 Net initial charges 7.4 7.8 6 13 8 Performance fees 12.8 5
Slide 5: Net management fee margins
2016 HALF YEAR RESULTS 4 Net management fee margins Key driver remains growth of fixed income Business mix bps H2 13 H1 14 H2 14 H1 15 H2 15 H1 16 Margin* 88.9 87.2 88.4 88.1 87.0 87.6 ■ Net management fee margin in the first half of the year is in line with guidance ■ H1 16 increase due to the intr
Slide 6: Fixed costs
2016 HALF YEAR RESULTS 5 Fixed costs Maintaining cost discipline Fixed costs Fixed costs (£ million) £ million H1 15 H1 16 % +/- Fixed staff costs Non-staff costs Office move Aggregated operating fee Fixed staff costs 21.3 23.3 54 Other expenses 24.3 31.1 51 47 48 Fixed costs 45.6 54.4 +19% 45 46 42
Slide 7: Variable costs
2016 HALF YEAR RESULTS 6 Variable costs Variable costs Variable costs (£ million) and comp ratio* £ million H1 15 H1 16 28 Cash bonus 26.3 21.1 22 11 Deferred bonus 5.6 5.2 LTIP, SAYE and SIP 5.6 5.7 11 Variable costs 37.5 32.0 7 9 Variable compensation ratio* 30% 28% 26 ■ Underlying compensation ra
Slide 8: Earnings
2016 HALF YEAR RESULTS 7 Earnings Operating margins maintained, profit before tax increased Scalable platform Growth in earnings 54 51 51 51 50 87 87 84 85 76 59 75 48 31 60 H1 12 H1 13 H1 14 H1 15 H1 16 H1 12 H1 13 H1 14 H1 15 H1 16** Adjusted EBITDA* (£ million) Adjusted EBITDA margin (%) PBT (£ m
Slide 9: Dividends
2016 HALF YEAR RESULTS 8 Dividends Interim dividend increased to 4.5p per share Underlying earnings per share (pence) Dividend progression (pence per share) H1 EPS Return of private client proceeds H2 EPS Special 14.3 Final 4.9 13.5 Interim 10.9 12.8 6.6 10.0 14.9 14.4 12.4 12.9 10.6 9.1 9.5 9.0 6.3
Slide 10: Resilient balance sheet
2016 HALF YEAR RESULTS 9 Resilient balance sheet Robust post-dividend liquidity and regulatory capital positions Liquidity (£ million) Regulatory capital (£ million) Dividends Compensation round £ million H1 16 Office move Private clients unpaid tax etc 'Core' cash Ordinary shareholder funds 566 Les
Slide 11: Strategy
2016 HALF YEAR RESULTS 10 Strategy 1 2 3 Sell this expertise Deliver through products Deliver attractive outperformance suited to our returns to after fees to our distribution shareholders clients strengths JUPITERAM.COM
Slide 12: Performance numbers
2016 HALF YEAR RESULTS 11 Performance numbers Generating value for our clients Three year mutual fund performance Commentary Long-term track record maintained 73% of AUM above median over three years 17% (YE 2015: 68%) Excellent segregated mandate and investment 10% 19% 21% trust performance 2
Slide 13: Performance numbers on key funds
2016 HALF YEAR RESULTS 12 Performance numbers on key funds Three year investment performance in key funds AUM at AUM at AUM at 4th quartile 3rd quartile 2nd quartile 1st quartile Jun 15 Dec 15 Jun 16 Dynamic Bond* £3,189m £3,748m £4,957m European £3,040m £3,666m £3,726m Merlin Income £4,184m £3,904m
Slide 14: Turning performance into flows
2016 HALF YEAR RESULTS 13 Turning performance into flows H1 2016 net flows and AUM Movement in AUM (£ billion) AUM up 4% to £37.0bn, with healthy underlying organic 38 flow growth Markets (£0.7bn) driven by 37 37.0 foreign exchange movements 0.7 on non-sterling assets at the 37 end of the period
Slide 15: Mutual fund focus
2016 HALF YEAR RESULTS 14 Mutual fund focus Consistent organic flow growth Cumulative net mutual fund flows (£bn) Focused mutual fund provider, writing consistent net inflows 12.0 across the cycle 11.0 £10.8bn cumulative mutual 10.0 fund inflows over past seven 9.0 years 8.0 10.5% p.a. organic
Slide 16: Turning performance into flows: diversification from international growth
2016 HALF YEAR RESULTS 15 Turning performance into flows Diversification from international growth Gross mutual fund flow split SICAV AUM AUM by client geography Unit trusts SICAV Other Fixed income UK Europe Asia RoW 2012 2013 2014 2015 H1 16 2012 2013 2014 2015 H1 16 2012 2013 2014 2015 H1 16 JUPI
Slide 17: Diversification of our product range
2016 HALF YEAR RESULTS 16 Diversification of our product range Growth of fixed income and European equities Split of AUM by asset class Evolution and diversification are constant themes as we continually adapt to investor needs Multi-asset UK equities European equities Rise of fixed income and E
Slide 18: Evolution and diversification
2016 HALF YEAR RESULTS 17 Evolution and diversification Continuing to adapt to investor and client needs • Asian Income Fund launched, assets over £0.3bn • Absolute Return SICAV launched to complement our success in the UT Product • UK Dynamic Growth launched • Global Ecology Diversified launched, p
Slide 19: Delivering value to shareholders
2016 HALF YEAR RESULTS 18 Delivering value to shareholders Benefits of focus and discipline Scalable operating platform Maintaining operating margin despite challenging markets in H1 16 Net management fees (£m) Fixed costs (£m) Cost increase in line with prior guidance Adjusted EBITDA* margin (b
Slide 20: Delivering against our key goals
2016 HALF YEAR RESULTS 19 Delivering against our key goals 1 Good progress on implementing our strategy 2 Delivering outperformance after fees 3 Diversifying product and distribution capabilities 4 Increasing cash returns to shareholders 5 Attractive growth prospects JUPITERAM.COM
Slide 21: Q&A
2016 HALF YEAR RESULTS 20 Q&A JUPITERAM.COM
Slide 22: Forward-looking statements
Forward-looking statements This presentation may contain certain “forward-looking the impact of changes in capital, solvency or accounting statements” with respect to certain plans of Jupiter Fund standards, and tax and other legislation and regulations in Management plc (Jupiter) and its current go
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