Annual Financial Report

RNS Number : 9992Z

Jupiter Fund Management PLC

23 March 2012

 



Jupiter Fund Management plc

Annual Financial Report

Jupiter Fund Management plc ('Jupiter') released its preliminary announcement of results for the year ended 31 December 2011 on 7 March 2012.

Copies of Jupiter's Annual Report & Accounts 2011 (the 'Accounts') will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do and www.investorsjupiteronline.co.uk.

The appendix to this announcement contains additional information which has been extracted from the Accounts for the purposes of compliance with Rule 6.3.5 of the Disclosure and Transparency Rules of the FSA. This announcement should be read in conjunction with Jupiter's Results Announcement issued on 7 March 2012 and is not a substitute for reading the full Accounts.

For further information please contact:

23 March 2012

Contacts:	Investors	Media
	Philip Johnson [phone]	Alicia Wylie [phone]

Additional Information

Directors' Responsibility Statement

Each of the Directors of Jupiter confirms that, to the best of his or her knowledge:

(i)         the Group financial statements, which have been prepared in accordance with IFRS as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the Group; and

(ii)        the Directors' report contained in the Annual Report and Accounts includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that it faces.

Principal risks and mitigations

We recognise that risk is inherent in the Group's business and in the markets in which we operate, and the robust management of risk is fundamental to the Group's culture.

In this section of the Accounts, we have set out those risks with the greatest potential for preventing us achieving our strategic objectives.  Risks are categorised and managed according to the strategic objective which they have the potential to affect, and are considered by Jupiter's management in this context. A fuller description of the risk management and internal control framework is set out in the Governance section of the Accounts. This outlines the various responsibilities within the Company for risk and the internal processes followed.

Strategic Objective	Risk	Mitigations
Investment performance	Sustained underperformance	There is a risk that our clients' investment portfolios will not meet their investment objectives due to underperformance. We adhere to a clearly defined investment process which seeks to meet investment targets within stated risk parameters. We use tools and governance principles within our investment risk framework and we review performance that lies outside expectations. Fund performance is monitored as part of the investment performance risk management process and is formally overseen by a portfolio review committee which meets quarterly.
	Retention of key staff	We are a human capital business and our staff are a significant component of successfully executing our strategy. We believe that high levels of employee engagement and equity ownership drive business outperformance and we strive to ensure we have an attractive working environment and a competitive remuneration structure. We also develop, monitor and maintain succession planning for all key roles throughout the organisation.
	Significant mandate breach	Our funds are managed in accordance with investment mandates and restrictions agreed with our clients. If investments are made or managed in breach of an investment mandate, we may be required to unwind the relevant transactions and could be liable for any losses suffered by an affected party in doing so. Compliance functionality is coded onto the order management system to allow the pre and post trade monitoring of investment activity.
	Regulatory non-compliance	We conduct all of our business activities according to the standards defined in the regulatory environment within which the Group operates. Our Compliance department conducts a robust programme of internal monitoring to ensure that internal regulatory controls are adhered to. Our risk governance structure and whistleblowing policy are designed to ensure that any regulatory issues can be escalated to senior management in an open and timely way, ensuring the maximum appropriate amount of regulatory protection for clients.
Effective distribution	Changes in distribution and product trends	Distribution risks arise from relationship management across different distribution channels and products. The risks reflect potential future changes in our fee structures, or in the appetite of our clients to invest in our products. The broad range of distribution channels and a diversified client base mitigates against a key dependency on any particular channel or client.
Efficient operations	Operational error or fraud	We rely on efficient and well-controlled processes. The potential impact and likelihood of processes failing and operational risks materialising is assessed by each operational area on a regular basis. Where these likelihoods are felt to be outside our appetite for risk, management actions and/or control improvements are identified in order to bring each potential risk back to within acceptable levels.
	Failure of third party supplier	All third parties to whom we outsource material aspects of our business are subject to ongoing oversight, ensuring that we can maintain assurance that they are of the required standard.
	Business continuity incident	Continuity and business resumption planning is in place across the business. Alternative premises, equipped with all key portfolio management and support systems, are accessible by the firm within four hours of our normal business premises becoming unavailable.
	Counterparty failure	We face credit risk as a result of counterparty exposure in the management of the Group's liquid assets. In order to manage this risk we actively monitor counterparty creditworthiness and operate within limits expressed in terms of value and term to maturity. We seek to diversify our exposure across different counterparties. All counterparties are reviewed on a regular basis and limits are amended following any relevant changes to their financial performance. We actively monitor market data and rating agency outputs in assessing counterparties.

Related party transactions

There have been no related party transactions that have taken place during the year ended 31 December 2011 that have materially affected the financial position or the performance of the Group during that period. Details of the related party transactions that have taken place during the year ended 31 December 2011 are set out in Note 29 'Related parties' to the Financial Statements on pages 97 and 98 of the Accounts.

 

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