Jupiter Fund Management PLC

Earnings Release • Apr 18, 2018

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RNS Number : 2352L

Jupiter Fund Management PLC

18 April 2018

18 April 2018

Trading Update and Notice of Results

Jupiter Fund Management plc ("Jupiter", the "Group") today issues its trading update in respect of the three months to 31 March 2018.

HIGHLIGHTS

·      Net outflows in the quarter of £1.3bn.

·      AUM at 31 March 2018 decreased to £46.9bn.

Maarten Slendebroek, Chief Executive, commented:

"It has been a challenging start to 2018.  We have seen a period of market turbulence together with subdued demand, resulting in net outflows of £1.3bn in the first quarter. As indicated in our financial results presentation on 27 February 2018, this change in the flows trend is not unexpected. The growth of assets sourced from international distribution partners has changed Jupiter's flow profile to being less predictable in the short term. As a result, in future we expect to see continued growth but with higher quarterly differentiation.  The continuation of our strategy of diversification by product, client type and geography and our approach to active asset management leave us well placed, both internationally and within the UK across a broad range of strategies."

ASSETS UNDER MANAGEMENT AND FLOWS

		31 December  2017 £m	Q1 net flows                          £m	Market/FX movement £m	31 March  2018 £m
	Mutual funds	43,745	(929)	(1,744)	41,072
	Segregated mandates	5,208	(306)	(288)	4,614
	Investment trusts	1,227	(15)	(45)	1,167
	Total	50,180	(1,250)	(2,077)	46,853

Total AUM decreased during the quarter with net outflows and negative market returns across all channels.

Net mutual fund outflows were £0.9bn during the quarter.  Our Fixed Income strategy, responsible for the majority of 2017's inflows, experienced a quarter of outflows, with clients withdrawing a net £1.1bn of assets in the period.  Other strategies contributed net inflows in the period, with the European Growth and Multi-Asset strategies in particular experiencing a good positive quarter.  Geographically, the UK was broadly flat during the quarter, however all other regions contributed net outflows, with Continental Europe and Asia the most impacted. 

We saw net outflows from segregated mandates in the quarter.  One long-standing institutional client withdrew assets as it rebalanced its portfolio, while across a number of other segregated mandates we saw inflows.

The Jupiter Global Value Equity Fund (Unit Trust) was launched in March 2018, further developing our offering in the Value Equities strategy.  The Jupiter Global Sustainable Equities Fund (Unit Trust) managed by Abbie Llewellyn-Waters was also launched on 9 April 2018. 

SUMMARY & OUTLOOK

After 2017's strong flows and financial results, we have faced more challenging conditions in the first quarter of this year. We continue to target further diversification by product, client type and geographic reach as the driver for continued growth in our business, and we expect to maintain disciplined investment in our operating model to support this growth.

NOTICE OF RESULTS

Jupiter will be issuing results for the period ended 30 June 2018 on 27 July 2018 and will host an analyst presentation to discuss the results at 9:00am. The presentation will be held at The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ.

For further information please contact:			Investors	Media
	Jupiter		Alex Sargent/Investor Relations +44 (0)20 3817 1534/1065	Kate O'Neill/Corporate Communications +44 (0)20 3817 1196/1278
	Powerscourt		Justin Griffiths +44 (0)20 7549 0741	Matthew Attwood +44 (0)20 3328 9383

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.

Historic flow and AUM data by quarter

	Flows and AUM by quarter
		Q1 2017 £m	Q2 2017 £m	Q3 2017 £m	Q4 2017 £m	Q1 2018 £m	Q2 2018 £m	Q3 2018 £m	Q4 2018 £m
	Total
	Opening AUM	40,543	43,533	46,907	48,431	50,180
	Gross inflows	3,981	4,799	3,801	3,880	3,224
	Gross outflows	(2,675)	(2,540)	(2,458)	(3,310)	(4,474)
	Net flows	1,306	2,259	1,343	570	(1,250)
	Market / FX movements	1,684	1,115	181	1,179	(2,077)
	Closing AUM	43,533	46,907	48,431	50,180	46,853
	Mutual funds
	Opening AUM	35,216	37,986	40,930	42,319	43,745
	Gross inflows	3,864	4,410	3,656	3,624	3,093
	Gross outflows	(2,462)	(2,415)	(2,411)	(3,166)	(4,022)
	Net flows	1,402	1,995	1,245	458	(929)
	Market / FX movements	1,368	949	144	968	(1,744)
	Closing AUM	37,986	40,930	42,319	43,745	41,072
	Segregated mandates
	Opening AUM	4,244	4,394	4,708	4,896	5,208
	Gross inflows	117	308	142	231	129
	Gross outflows	(210)	(119)	(31)	(74)	(435)
	Net flows	(93)	189	111	157	(306)
	Market / FX movements	243	125	77	155	(288)
	Closing AUM	4,394	4,708	4,896	5,208	4,614
	Investment trusts
	Opening AUM	1,083	1,153	1,269	1,216	1,227
	Gross inflows	-	81	3	25	2
	Gross outflows	(3)	(6)	(16)	(70)	(17)
	Net flows	(3)	75	(13)	(45)	(15)
	Market / FX movements	73	41	(40)	56	(45)
	Closing AUM	1,153	1,269	1,216	1,227	1,167

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