Jupiter Fund Management PLC

Earnings Release • Oct 16, 2020

National Storage Mechanism | Additional information

RNS Number : 2648C

Jupiter Fund Management PLC

16 October 2020

Trading Update and Notice of Results

16 October 2020

Jupiter Fund Management plc ("Jupiter", the "Group") today issues its trading update in respect of the three months to 30 September 2020.

HIGHLIGHTS

·      Acquisition of Merian Global Investors ("Merian") introduced £16.6bn of AUM on 1 July 2020, with operational integration achieved by 30 September 2020.

·      Net outflows in the quarter of £1.0bn, partially offset by £0.8bn of market returns.

·      AUM at 30 September 2020 of £55.7bn, an increase of £16.5bn in the quarter driven by the acquisition of Merian.

JUPITER GROUP

ASSETS UNDER MANAGEMENT AND FLOWS

	30 Jun 2020 £m	Acquisition £m	Q3 net flows           £m	Market returns £m	30 Sep 2020 £m
Mutual funds	34,264	13,970	(746)	770	48,258
Segregated mandates	4,668	2,375	(197)	(62)	6,784
Investment trusts	276	294	(10)	92	652
Total	39,208	16,639	(953)	800	55,694

Net outflows comprised £0.1bn of net inflows in Jupiter branded products offset by £1.0bn of net outflows in Merian branded products.

JUPITER BRANDED PRODUCTS

ASSETS UNDER MANAGEMENT AND FLOWS

	30 Jun 2020 £m	Acquisition £m	Q3 net flows           £m	Market returns £m	30 Sep 2020 £m
Mutual funds	34,264	-	272	153	34,689
Segregated mandates	4,668	-	(206)	(85)	4,377
Investment trusts	276	-	(10)	6	272
Total	39,208	-	56	74	39,338

Net mutual fund inflows within the Jupiter branded products were £0.3bn during the quarter, of which £0.9bn were from the Fixed Income strategy.

Segregated mandates saw £0.2bn of net outflows during the quarter. Inflows included the funding of the second client win through the strategic partnership with NZS Capital which was offset principally by outflows from two clients, one of which related to the resignation of a fund manager.

MERIAN BRANDED PRODUCTS

ASSETS UNDER MANAGEMENT AND FLOWS

	30 Jun 2020 £m	Acquisition £m	Q3 net flows                       £m	Market returns £m	30 Sep 2020 £m
Mutual funds	-	13,970	(1,018)	617	13,569
Segregated mandates	-	2,375	9	23	2,407
Investment trusts	-	294	-	86	380
Total	-	16,639	(1,009)	726	16,356

Net mutual fund outflows within the Merian branded products were £1.0bn during the quarter of which £0.2bn were from the Global Equity Absolute Return fund, £0.4bn from the Systematic strategy and £0.1bn from funds where there was a change of fund manager relating to the acquisition.

The Global Equity Absolute Return fund ended the period with £1.1bn of AUM.

NOTICE OF RESULTS

Jupiter will be issuing results for the year ending 31 December 2020 on 26 February 2021 and will host an analyst presentation to discuss the results at 9:00am. At present, we expect the presentation to be held at The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ. This is dependent on the UK government's applicable guidance at the time in respect of the coronavirus outbreak.

For further information please contact:			Investors	Media
	Jupiter		Investor Relations +44 (0)20 3817 1065	Despina Constantinides/Corporate Communications +44 (0)20 3817 1196/1278
	Powerscourt		Justin Griffiths +44 (0)20 7549 0999

LEI Number: 5493003DJ1G01IMQ7S28

Forward-looking statements

This announcement contains forward-looking statements with respect to the financial condition, results and business of the Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. Jupiter's actual results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

Jupiter Group

Historic AUM and flows by quarter

	Flows and AUM by quarter
		Q1 2019 £m	Q2 2019 £m	Q3 2019 £m	Q4 2019 £m	Q1 2020 £m	Q2 2020 £m	Q3 2020 £m	Q4 2020 £m
	Total
	Opening AUM	42,673	44,061	45,908	45,089	42,831	34,985	39,208
	Acquisition	-	-	-	-	-	-	16,639
	Gross inflows	3,259	3,280	4,014	2,856	4,065	3,075	4,422
	Gross outflows	(3,741)	(3,883)	(5,329)	(4,984)	(6,383)	(2,770)	(5,375)
	Net flows	(482)	(603)	(1,315)	(2,128)	(2,318)	305	(953)
	Market returns	1,870	2,450	496	(130)	(5,528)	3,918	800
	Closing AUM	44,061	45,908	45,089	42,831	34,985	39,208	55,694
	Mutual funds
	Opening AUM	36,940	37,473	38,983	38,461	37,692	30,671	34,264
	Acquisition	-	-	-	-	-	-	13,970
	Gross inflows	2,697	3,034	3,017	2,638	3,353	2,823	4,057
	Gross outflows	(3,688)	(3,608)	(3,973)	(3,189)	(6,244)	(2,603)	(4,803)
	Net flows	(991)	(574)	(956)	(551)	(2,891)	220	(746)
	Market returns	1,524	2,084	434	(218)	(4,130)	3,373	770
	Closing AUM	37,473	38,983	38,461	37,692	30,671	34,264	48,258
	Segregated mandates
	Opening AUM	4,577	5,348	5,568	5,266	4,811	4,084	4,668
	Acquisition	-	-	-	-	-	-	2,375
	Gross inflows	561	246	996	218	712	252	365
	Gross outflows	(48)	(269)	(1,344)	(836)	(137)	(164)	(562)
	Net flows	513	(23)	(348)	(618)	575	88	(197)
	Market returns	258	243	46	163	(1,302)	496	(62)
	Closing AUM	5,348	5,568	5,266	4,811	4,084	4,668	6,784
	Investment trusts
	Opening AUM	1,156	1,240	1,357	1,362	328	230	276
	Acquisition	-	-	-	-	-	-	294
	Gross inflows	1	0	1	0	0	0	0
	Gross outflows	(5)	(6)	(12)	(959)	(2)	(3)	(10)
	Net flows	(4)	(6)	(11)	(959)	(2)	(3)	(10)
	Market returns	88	123	16	(75)	(96)	49	92
	Closing AUM	1,240	1,357	1,362	328	230	276	652

Jupiter branded products

Historic AUM and flows by quarter

	Flows and AUM by quarter
		Q1 2019 £m	Q2 2019 £m	Q3 2019 £m	Q4 2019 £m	Q1 2020 £m	Q2 2020 £m	Q3 2020 £m	Q4 2020 £m
	Total
	Opening AUM	42,673	44,061	45,908	45,089	42,831	34,985	39,208
	Gross inflows	3,259	3,280	4,014	2,856	4,065	3,075	3,015
	Gross outflows	(3,741)	(3,883)	(5,329)	(4,984)	(6,383)	(2,770)	(2,959)
	Net flows	(482)	(603)	(1,315)	(2,128)	(2,318)	305	56
	Market returns	1,870	2,450	496	(130)	(5,528)	3,918	74
	Closing AUM	44,061	45,908	45,089	42,831	34,985	39,208	39,338
	Mutual funds
	Opening AUM	36,940	37,473	38,983	38,461	37,692	30,671	34,264
	Gross inflows	2,697	3,034	3,017	2,638	3,353	2,823	2,697
	Gross outflows	(3,688)	(3,608)	(3,973)	(3,189)	(6,244)	(2,603)	(2,425)
	Net flows	(991)	(574)	(956)	(551)	(2,891)	220	272
	Market returns	1,524	2,084	434	(218)	(4,130)	3,373	153
	Closing AUM	37,473	38,983	38,461	37,692	30,671	34,264	34,689
	Segregated mandates
	Opening AUM	4,577	5,348	5,568	5,266	4,811	4,084	4,668
	Gross inflows	561	246	996	218	712	252	318
	Gross outflows	(48)	(269)	(1,344)	(836)	(137)	(164)	(524)
	Net flows	513	(23)	(348)	(618)	575	88	(206)
	Market returns	258	243	46	163	(1,302)	496	(85)
	Closing AUM	5,348	5,568	5,266	4,811	4,084	4,668	4,377
	Investment trusts
	Opening AUM	1,156	1,240	1,357	1,362	328	230	276
	Gross inflows	1	0	1	0	0	0	0
	Gross outflows	(5)	(6)	(12)	(959)	(2)	(3)	(10)
	Net flows	(4)	(6)	(11)	(959)	(2)	(3)	(10)
	Market returns	88	123	16	(75)	(96)	49	6
	Closing AUM	1,240	1,357	1,362	328	230	276	272

Merian branded products

Historic AUM and flows by quarter

	Flows and AUM by quarter
						Q1 20201 £m	Q2 20201 £m	Q3 2020 £m	Q4 2020 £m
	Total
	Opening AUM					22,405	15,652	16,639
	Gross inflows					1,991	1,392	1,407
	Gross outflows					(4,589)	(3,121)	(2,416)
	Net flows					(2,598)	(1,729)	(1,009)
	Market returns					(4,155)	2,716	726
	Closing AUM					15,652	16,639	16,356
	Mutual funds
	Opening AUM					19,386	13,302	13,970
	Gross inflows					1,908	1,347	1,360
	Gross outflows					(4,498)	(3,013)	(2,378)
	Net flows					(2,590)	(1,666)	(1,018)
	Market returns					(3,494)	2,334	617
	Closing AUM					13,302	13,970	13,569
	Segregated mandates
	Opening AUM					2,705	2,124	2,375
	Gross inflows					75	45	47
	Gross outflows					(83)	(108)	(38)
	Net flows					(8)	(63)	9
	Market returns					(573)	314	23
	Closing AUM					2,124	2,375	2,407
	Investment trusts
	Opening AUM					314	226	294
	Gross inflows					8	0	0
	Gross outflows					(8)	0	0
	Net flows					0	0	0
	Market returns					(88)	68	86
	Closing AUM					226	294	380

1 Q1 and Q2 2020 represent the AUM, flows and market returns of Merian prior to acquisition by the Group.

Jupiter Group

Proforma historic AUM and flows by quarter

Flows by type

	Q1 20202 £m	Q2 20202 £m	Q3 2020 £m
Opening AUM	65,236	50,637	55,847
Flows
Global Equity Absolute Return	(1,401)	(260)	(206)
Systematic	(967)	(619)	(411)
Change of fund manager	-	(464)	(313)
Other	(2,548)	(81)	(23)
Market returns	(9,683)	6,634	800
Closing AUM	50,637	55,847	55,694

2 Q1 and Q2 2020 are proforma and include the AUM, flows and market returns of Merian prior to acquisition by the Group.

Net outflows for Q3 2020 resulting from changes of fund manager of £0.3bn principally relate to the Jupiter European Special Situations fund and related segregated mandate. Net outflows relating to fund manager changes in the proforma Q2 2020 flows relate to Merian branded products, with further outflows in Q3 2020, of which the majority was from one client. In addition, the Group has been notified of further outflows of £0.3bn from the Merian branded products in Q4 2020 associated with the change of fund manager.

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