Jupiter Fund Management PLC

Earnings Release • Oct 10, 2014

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RNS Number : 9383T

Jupiter Fund Management PLC

10 October 2014

		Jupiter Fund Management plc
Q3 Interim Management Statement

Interim Management Statement

10 October 2014

Jupiter Fund Management plc ("Jupiter", the "Group") today issues its trading update in respect of the three months to 30 September 2014.

HIGHLIGHTS

§ Assets under management ("AUM") of £31.7 billion as at 30 September 2014 following the successful sale of our private client operations.

§ Net mutual fund inflows of £231 million in the three months to 30 September 2014.

§ Cumulative net mutual fund inflows of £1.1 billion in the nine months to 30 September 2014.

Maarten Slendebroek, Chief Executive, commented:

"This has been a busy period for Jupiter with the completion of the sale of its private client operations, an important strategic step which allows us to increase our focus on our mutual fund franchise. This part of the business continues to be the main driver of growth, contributing a further £0.2 billion of net inflows this quarter."

ASSETS UNDER MANAGEMENT AND FLOWS

On 26 September 2014, Jupiter completed the sale of its private client operations to Rathbone Investment Management Limited ("Rathbones"). The table below reflects the impact of this transaction, showing the near-elimination of the private clients line and the reclassification of 30% of its AUM into other categories as these assets are still managed by the Group after the sale. A small rump of non-fee paying assets will either be transferred to Rathbones or terminated by year end, and these remain separately identified on the private clients line.

		30 June 2014 £m	Q3 net flows £m	Market movement £m	Private client transaction £m	30 September       2014 £m
	Mutual funds	25,761	231	(79)	474	26,387
	Segregated mandates	4,197	(12)	(61)	126	4,250
	Private clients	2,241	-	-	(2,176)	65
	Investment trusts	906	(1)	(15)	66	956
	Total	33,105	218	(155)	(1,510)	31,658

Jupiter delivered net mutual fund inflows of £230 million during the third quarter. Top selling funds included Dynamic Bond, Strategic Bond and Income Trust. The overall result was held back by £50 million of outflows following our decision to close the Cash and Global Energy unit trusts in Q4, as we believed these funds would not reach profitable scale. Due to the reclassification of private client assets which remain invested in underlying collective vehicles managed by the Group, mutual funds AUM increased to £26.4 billion at 30 September 2014.

Overall net inflows for the quarter were £218 million and total AUM was £31.7 billion at 30 September 2014. The previously notified loss of a large segregated mandate remains pending and is still within this total. During the fourth quarter, the £234m Second Split investment trust will also be closed as it reaches the end of its life. The closure proposals allow for cash payments to all shareholders, although a tax-efficient rollover option into the Strategic Reserve unit trust is available for Zero Dividend Preference shareholders.

PROCEEDS FROM THE SALE OF PRIVATE CLIENT OPERATIONS

On 26 September 2014, Jupiter completed the sale of its Private Clients & Charities operations to Rathbones. Gross consideration received will be between £39.4 and £39.6 million, with estimated net proceeds after costs and tax of around £22 million. It remains our intention to distribute these net proceeds by special dividend to shareholders after the 2014 full  year results.

CORPORATE UPDATE

On 24 September 2014, Jupiter signed an agreement for a 20 year lease for 56,000 square feet in The Zig Zag Building in Victoria. As previously communicated, this will result in administrative expenses increasing by £5 million per annum. from 2015 onwards.

OUTLOOK

We believe that our chosen savings markets offer the prospect of significant long-term growth. As we extend our relationships with key distributors on a global basis, we are confident we can continue to deliver profitable growth at attractive margins and, within our sustainable balance sheet structure, share the rewards of this growth with our investors.

For further information please contact:			Investors		Media
	Jupiter		Philip Johnson +44 (0)20 7314 4807		Despina Constantinides +44 (0)20 7314 4981
	FTI Consulting		Laura Ewart +44 (0)20 3727 1160		Andrew Walton +44 (0)20 3727 1514

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.

3

Historic flow and AUM data by quarter

	Flows and AUM by quarter
		Q1 2013 £m	Q2 2013 £m	Q3 2013 £m	Q4 2013 £m	Q1 2014 £m	Q2 2014 £m	Q3 2014 £m	Q4 2014 £m
	Total
	Opening AUM	26,268	29,138	29,045	29,889	31,659	32,211	33,105
	Gross inflows	1,726	1,729	1,618	1,782	2,320	2,543	2,239
	Gross outflows	(1,517)	(1,520)	(1,347)	(1,272)	(1,773)	(1,822)	(2,021)
	Net Flows	209	209	271	510	547	721	218
	Market / FX movements	2,661	(302)	573	1,260	5	173	(155)
	Private client transaction	n/a	n/a	n/a	n/a	n/a	n/a	(1,510)
	Closing AUM	29,138	29,045	29,889	31,659	32,211	33,105	31,658
	Mutual funds
	Opening AUM	20,572	22,885	22,730	23,336	24,760	25,195	25,761
	Gross inflows	1,572	1,493	1,535	1,627	1,970	2,095	2,069
	Gross outflows	(1,325)	(1,314)	(1,257)	(1,169)	(1,505)	(1,685)	(1,838)
	Net Flows	247	179	278	458	465	410	231
	Market / FX movements	2,066	(334)	328	966	(30)	156	(79)
	Private client transaction	n/a	n/a	n/a	n/a	n/a	n/a	474
	Closing AUM	22,885	22,730	23,336	24,760	25,195	25,761	26,387
	Segregated mandates
	Opening AUM	3,207	3,531	3,526	3,635	3,911	3,834	4,197
	Gross inflows	93	67	24	95	130	410	170
	Gross outflows	(149)	(167)	(52)	(40)	(216)	(84)	(182)
	Net Flows	(56)	(100)	(28)	55	(86)	326	(12)
	Market / FX movements	380	95	137	221	9	37	(61)
	Private client transaction	n/a	n/a	n/a	n/a	n/a	n/a	126
	Closing AUM	3,531	3,526	3,635	3,911	3,834	4,197	4,250
	Private clients
	Opening AUM	1,888	2,059	2,130	2,224	2,266	2,280	2,241
	Gross inflows	51	160	50	50	59	36	-
	Gross outflows	(42)	(39)	(35)	(60)	(50)	(50)	-
	Net Flows	9	121	15	(10)	9	(14)	-
	Market / FX movements	162	(50)	79	52	5	(25)	-
	Private client transaction	n/a	n/a	n/a	n/a	n/a	n/a	(2,176)
	Closing AUM	2,059	2,130	2,224	2,266	2,280	2,241	65
	Investment trusts
	Opening AUM	601	663	659	694	722	902	906
	Gross inflows	10	9	9	10	161	2	0
	Gross outflows	(1)	0	(3)	(3)	(2)	(3)	(1)
	Net Flows	9	9	6	7	159	(1)	(1)
	Market / FX movements	53	(13)	29	21	21	5	(15)
	Private client transaction	n/a	n/a	n/a	n/a	n/a	n/a	66
	Closing AUM	663	659	694	722	902	906	956

This information is provided by RNS

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