Half Year Results

RNS Number : 9851I

Jupiter Fund Management PLC

01 August 2012

 



Jupiter Fund Management plc

Half Year Results 2012

1 August 2012

Highlights

§ Strong investment performance over one and three years

§ Steady mutual fund inflows of £265m

§ Further loan repayment of £33m

§ Interim dividend of 2.5p per share

			Six months ended 30 June 2012 (unaudited)	Six months ended 30 June 2011 (unaudited)	Year ended 31 December 2011
	Assets under management £bn		23.4	24.8	22.8
	Net (outflows)/inflows £bn		(0.3)	0.7	0.7
	Net revenues £m		117.7	128.3	248.5
	EBITDA* £m		60.3	71.0	134.9
	Profit before tax £m		31.2	37.3	70.3
	Net cash/(debt) £m		1.0	(36.0)	7.4
	Dividend per share		2.5p	2.5p	7.8p

* non-GAAP measure which the Group uses to assess its performance.

Edward Bonham Carter, Chief Executive, commented:

"Against a challenging market backdrop, it was encouraging that we saw strong investment performance, positive net mutual fund flows and growth in assets under management over the last six months. Our financial position remains robust with a further repayment of £33 million from our bank facility and operating margins remaining above 50 per cent. Although the economic outlook remains uncertain, we believe we are well placed to capitalise on long-term structural drivers and remain confident of delivering value across the cycle."

Analyst presentation

There will be an analyst presentation to discuss the results on 1 August 2012 at 9.00am. The presentation will be held at FTI Consulting, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB and is also accessible via a live audiocast for those unable to attend in person. To attend the presentation, please contact Laura Pope at FTI Consulting on [phone] or at [e-mail]. Alternatively, sign up online to access the live audiocast using the following link:

http://mediazone.brighttalk.com/event/Jupiter/d18c255f89-6435-intro.

The Half Yearly Report will be available at www.investorsjupiteronline.co.uk

For further information, please contact:

	Investors	Media
Jupiter	Philip Johnson [phone]	Alicia Wyllie [phone]
FTI Consulting	Ed Gascoigne-Pees [phone]	Andrew Walton [phone]

Chief Executive's review

It is pleasing to report that Jupiter's financial position remains healthy despite the backdrop of continued turmoil in the Eurozone and its impact on global economic growth. EBITDA was £60.3m during the period and EBITDA margin remained above 50 per cent. despite the impact on revenues of lower average market levels in 2012 H1. We repaid £33m of debt in June 2012, bringing our total outstanding loan down to £110m, and continue to report a net cash position. The Board remains committed to its progressive dividend policy and has maintained the interim dividend at 2.5p.

Market review

While financial markets made a strong start to the year on the back of action to stabilise European banks, strains re-emerged in the second quarter amid intense political uncertainty and speculation that Greece would leave the euro, together with growing concerns over Spain's financial sector. The rescue of Bankia did little to quell the nervousness as France voted in its first socialist leader, Francois Hollande, since the 1980s and the Greek elections resulted in a strong boost for anti-austerity parties. Despite some post-EU summit euphoria and further action by three central banks at the start of July, bond and equity markets remain unconvinced that enough action is being taken by Europe's leaders to stabilise the region.

While market conditions have been challenging, UK fund flows improved during the period, albeit with the majority of assets directed towards fixed income strategies. Bond funds, together with money market funds, also remain popular in Europe, while equity and balanced funds have experienced outflows.

Operational review

Against this backdrop, Jupiter's mutual fund net inflows of £265m are a good result, with positive contributions from both our UK and international channels. Private clients made a net contribution of £37m but, as previously notified, segregated mandates saw outflows totalling £604m, resulting in aggregate net outflows of £302m for the period. Overall, assets under management rose to £23.4bn as at 30 June 2012 (31 December 2011: £22.8bn).

Volatile market conditions often tend to favour our investment approach and this has been the case recently, with the defensive positioning adopted by many of our fund managers boosting relative performance to the benefit of our clients. Over the three years to 30 June 2012, 26 of 41 mutual funds (76 per cent. by AUM) outperformed their benchmarks, while over the year to 30 June 2012, 30 of 51 mutual funds (84 per cent. by AUM) outperformed their benchmarks.

During the period, we have continued to position the business for growth over the medium term. We have, for example, continued to extend our growing fixed income franchise this year with two fund launches that enable us to target different distribution channels with existing strategies. The Jupiter Strategic Reserve Unit Trust was launched in April as an onshore version of the Jupiter Strategic Return SICAV, making its absolute return capabilities more readily available to UK investors. Similarly, the launch of the Jupiter Dynamic Bond SICAV in May addresses demand from international clients for the Jupiter Strategic Bond Fund. This fund, which recently won the Strategic Bond Fund of the Year at the 2012 Investment Week Fund Manager of the Year Awards, has a very strong share of sales in its sector, helping bring the total assets managed by our Fixed Income and Multi Asset Team to £1.8bn and establishing Jupiter as a key player in a sector where we historically had little exposure. We are also currently seeking FSA approval for the launch of the Jupiter Merlin Conservative Fund in the second half of 2012, extending our highly successful Merlin fund of funds franchise to meet demand from clients for more defensive investments.

On the distribution side of the business, in March we announced the appointment of Maarten Slendebroek to the new Board position of Distribution & Strategy Director. Maarten, who has extensive experience of running cross-border asset management operations, will join the Company on 3 September 2012 and will be responsible for building further on Jupiter's increasingly diversified distribution capabilities in the UK and abroad. We built out our presence in Europe in the first half of the year by opening a sales office in Zurich and also intend to expand our operations in Asia, building on the traction established by our existing presence in Singapore.

Despite the proximity of the implementation of the Retail Distribution Review, it remains hard to predict what the long term effects will be. The recent release of the FSA's proposals for platforms does nothing to change our view that the greatest impact is likely to be on distributors rather than manufacturers. We continue to believe that there will be demand for genuine active management from asset managers with strong brands such as Jupiter and remain focused on delivering performance for clients over the medium term after fees.

Outlook

The recent concerted action by central banks highlights the continued fragility of the world economy. It is clear the Eurozone crisis has not been solved and the outlook for economic growth in developed markets remains poor. While such an environment makes a material improvement in industry flows unlikely, the outperformance after fees by the majority of our fund managers is enabling us to continue building assets in many of our strategies.

Jupiter remains in a robust financial position, and continues to position itself to take advantage of the considerable structural drivers supporting the savings market over the long term. As a result, I am confident we can deliver value over the medium term to the benefit of clients and shareholders.

Edward Bonham Carter

Chief Executive

Business review

Assets under management and flows

	Assets under management by product
		31 December       2011 £m	Q1 net flows £m	Q2 net flows £m	Market movement £m	30 June           2012 £m
	Mutual funds	17,219	55	210	570	18,054
	Segregated mandates	3,338	(102)	(502)	193	2,927
	Private clients	1,731	(66)	103	56	1,824
	Investment trusts	519	-	-	47	566
	Total	22,807	(113)	(189)	866	23,371

Assets under management ("AUM") increased to £23.4bn as at 30 June 2012 (31 December 2011: £22.8bn). While the FTSE was flat across the period, our AUM benefited from exposure to overseas equity assets, growth in our fixed income funds and investment outperformance.

In the second quarter, mutual fund net inflows continued to advance to £210m, taking year to date net mutual funds inflows to £265m. This was due to net inflows from both our UK and international distribution channels, driven by the Merlin fund of funds range, Strategic Bond and Global Convertibles funds. There were also encouraging net inflows of £103m for private clients mainly resulting from two large charity wins. These positive inflows were offset by the previously notified loss of a £560m lower margin segregated mandate, resulting in overall net outflows of £189m for the quarter and total net outflows for the first half of £302m.

Investment performance

Delivering investment outperformance across our product range remains one of our fundamental strategic objectives. Over the key three year period, at 30 June 2012, 26 mutual funds representing approximately 76 per cent. of mutual funds by AUM, had delivered first and second quartile investment performance (31 December 2011: 26 mutual funds representing approximately 74 per cent. of mutual fund AUM). Looking over a one year period, during a period of high market instability, 30 mutual funds representing approximately 84 per cent. of mutual funds by AUM, delivered first and second quartile investment performance (31 December 2011: 27 mutual funds representing approximately 82 per cent. of mutual fund AUM).

EBITDA*

EBITDA was £60.3m for the period (2011 H1: £71.0m), a 15 per cent. decline, resulting from a £10.6m fall in net revenue from lower average market levels and performance fees. The Group's EBITDA margin remained above 50 per cent. despite a fall in revenues, as continued investment in our distribution and operating platforms was offset by lower variable staff costs.

Net revenue

Net revenue for the period was £117.7m, an eight per cent. decline on 2011 H1 of £128.3m. This reflects a four per cent. decrease in net management fees, which compares with a four per cent. drop in the average FTSE 100 level to 5,691 (2011 H1: 5,932), and the reversion of 2012 H1 performance fees to a more usual pattern across the year.  

	Six months ended 30 June 2012		Six months ended 30 June 2011		Year ended 31 December 2011
Net management fees (£m)	109.4		114.2		226.0
Average AUM (£bn)	23.4		24.4		23.8
Net management fee margin (bps)	93		94		95

Net management fees continue to contribute the majority of our net revenues (2012 H1: 93 per cent., 2011 H1: 89 per cent.). The Group's net management fee margin for the period was 93 basis points (2011 H1: 94 basis points). We continue to expect net management fee margins to decline slowly over time, as distributors look to take an increasing share of fees and the effects of the Retail Distribution Review take shape, although the rate and angle of any such decline is uncertain.

	Six months ended 30 June 2012 £m		Six months ended 30 June 2011 £m		Year ended 31 December 2011 £m
Net management fees	109.4		114.2		226.0
Net initial charges and commissions	7.7		9.5		17.2
Performance fees	0.6		4.6		5.3
Total	117.7		128.3		248.5

Net initial charges and commissions fell to £7.7m (2011 H1: £9.5m) due to lower box profits, resulting from a less favourable pattern of sales, redemption activity across individual funds and the expected reduction in net amortised front end fees. Performance fees were down by £4.0m, due largely to the significant performance fee earned from the Jupiter European Opportunities Investment Trust in H1 2011.

* Earnings before Interest, Tax, Depreciation and Amortisation is a non-GAAP measure which the Group uses to assess its performance. It is defined as operating earnings excluding the effect of depreciation and the charge for options over pre-Listing shares.

Administrative expenses

	Six months ended 30 June 2012 £m		Six months ended 30 June 2011 £m		Year ended 31 December 2011 £m
Fixed staff costs	19.5		18.7		38.7
Other expenses	20.4		18.2		38.7
Total fixed costs	39.9		36.9		77.4
Variable staff costs	17.9		20.7		36.8
Charge for options over pre-Listing shares	4.0		5.6		9.6
Total administrative expenses	61.8		63.2		123.8

Administrative expenses of £61.8m were £1.4m lower than 2011 H1, predominantly as a result of decreased variable staff costs. Fixed costs of £39.9m were eight per cent. ahead of the prior year (2011 H1: £36.9m) due to investment in our distribution and operating platforms ahead of an improvement in market conditions. However, fixed costs were lower than in the second half of last year (2011 H2: £40.5m) as the business responded proactively to the difficult external environment. We also continued to seek further efficiencies in our operating platform during the period, closing the Bermuda office and signing a contract to outsource our private client administration. This will enhance the services proposition to our private client investors and establish a more efficient and scalable platform for future growth once complete in mid-2013.

	Six months ended 30 June 2012 £m		Six months ended 30 June 2011 £m		Year ended 31 December 2011 £m
Cash bonus	13.4		17.9		30.9
Deferred bonus	2.6		1.8		3.4
LTIP and SAYE	1.7		0.4		1.5
Pre-IPO deferral scheme	0.2		0.6		1.0
Variable staff costs	17.9		20.7		36.8
Variable compensation ratio1	23%		23%		22%

1 .Variable staff costs as a proportion of pre-variable staff cost operating earnings before charge for options over pre-Listing schemes

Variable staff costs as a proportion of pre-variable staff cost operating earnings were in line with the prior year at 23 per cent. (2011 H1: 23 per cent.). Within this, the charge for cash bonus fell due to reduced earnings in the period and lower performance fees. This benefit was partially offset by the anticipated increase in deferred bonus and LTIP schemes charges as the post-Listing incentive structure continues its build to maturity. We expect the variable compensation ratio will rise to the mid to high twenty per cents. over the medium-term as a result.

Finance expense

Finance expenses decreased substantially to £4.4m (2011 H1: £7.9m), due to lower bank loan interest costs following repayments of £80.0m in March 2011 and £60.0m in October 2011.

Profit before tax

Profit before tax for the period decreased to £31.2m (2011 H1: £37.3m), as lower finance expenses partially mitigated the reduced operating earnings from the business.

Underlying profit before tax and underlying earnings per share ("EPS")

Underlying profit before tax and underlying EPS are non-GAAP measures which the Board believes provide a more useful representation of the Group's trading performance than the statutory presentation. The Group's basic and diluted EPS were 6.7p and 6.4p respectively.

	Six months ended 30 June 2012 £m		Six months ended 30 June 2011 £m		Year ended 31 December 2011 £m
Profit before tax	31.2		37.3		70.3
Adjustments:
Amortisation of acquired investment management contracts and trade name	19.4		19.2		38.7
Charge for options over pre-Listing shares	4.0		5.6		9.6
Underlying profit before tax	54.6		62.1		118.6
Tax at statutory rate of 24.5 per cent. (2011 H1: 26.5 per cent., 2011: 26.5 per cent.)	(13.4)		(16.5)		(31.4)
Underlying profit after tax	41.2		45.6		87.2
Issued share capital (m)	457.7		457.7		457.7
Underlying EPS	9.0p		10.0p		19.1p
Basic EPS	6.7p		9.1p		15.6p
Diluted EPS	6.4p		8.8p		15.0p

Underlying EPS was 10 per cent. behind 2011 H1 at 9.0p, as reduced finance expenses following the debt repayments and the lower statutory tax rate partially offset decreased earnings.

Net debt and cash

The Group remained in a positive net cash position of £1.0m at 30 June 2012 (31 December 2011: £7.4m), as operating cash flow during the period was offset by our first half compensation round and final dividend in respect of 2011, and an increase in our seed capital levels to support product launches. The Group's debt facility was paid down on 29 June 2012 by a further £33.0m to £110.0m (31 December 2011: £143.0m). This payment was made out of cash arising from operations and existing resources.

Seed capital investments

The Group deploys seed capital into its funds to assist them in building a track record from launch or to give small but strongly performing funds sufficient scale to attract external money. During the period, seed capital levels returned to targeted levels (30 June 2012: £51.8m, 31 December 2011: £39.1m), primarily due to investments made to support the Strategic Reserve Fund launch. 

Shareholders' equity

Total shareholders' equity increased by £8.7m, to £433.3m, since 31 December 2011 as a result of the continued profitability of the Group, partially offset by the payment of the 2011 final dividend.

In February 2012, the Group was granted a new investment consolidation waiver. This will run for the three years from June 2012 to June 2015.

Dividend

The Board has declared an interim dividend of 2.5p per share (2011 H1: 2.5p per share) to ordinary shareholders, which will be paid on 7 September 2012 to shareholders on the register at close of business on 10 August 2012. The Board has a progressive dividend policy, with dividends determined taking into account historic and anticipated profits, cash flow and balance sheet position, with the split between the interim and final dividend weighted towards the final dividend.

Principal risks and uncertainties

The Group faces a number of risks and uncertainties associated with the investment management business it carries out. Management has established a framework to govern the risks of the business and takes responsibility for ensuring that appropriate risk management processes are effective across the Group. The management of risk within the Group is governed by the Board. All functions within the Group identify and prioritise risks and all significant risks are recorded and managed. Each part of the business is responsible for developing and maintaining procedures and controls. Operational activities that are outsourced to third party providers are monitored on a regular basis.

The principal risks to which the Group will be exposed in the second half of 2012 are substantially the same as those outlined in the Annual Report and Accounts for the year ended 31 December 2011, being:

·      Strategic risk: the risk that the Group is unable to meet its strategic objectives due to matters inherent in the nature of our business or the markets in which we operate;

·      Operational risk: the risk of loss caused by weaknesses or failures in the Group's systems and controls, related to people, systems and processes. These include risks arising from failing properly to manage key outsourced relationships;

·      Liquidity risk: the risk that the Group may be unable to meet its financial obligations;

·      Capital risk: the risk that the Group may lack sufficient capital to be able to continue to operate as a going concern;

·      Counterparty/credit risk: the risk of loss caused by the corporate failure of one of the trade, prime brokerage or treasury counterparties to which the Group may be exposed, or by a custodial institution with which the Group has a relationship; and

·      Regulatory/reputational risk: the risk of censure due to the Group's failure to meet its regulatory obligations, which may lead to reputational damage, a monetary fine or, ultimately, the withdrawal of its licence to carry on business.

Forward-looking statements

This announcement contains forward-looking statements with respect to the financial condition, results of operations and businesses of the Group. Such statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts. Forward-looking statements and forecasts are based on the Directors' current view and information known to them at the date of this announcement. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast.

Consolidated income statement

					Restated
			Six months ended 30 June 2012  (unaudited)		Six months ended 30 June 2011 (unaudited)		Year ended 31 December 2011 (audited)
		Notes	£m		£m		£m
	Revenue		166.8		182.0		346.9
	Fee and commission expenses		(49.1)		(53.7)		(98.4)
	Net revenue	4	117.7		128.3		248.5
	Administrative expenses		(61.8)		(63.2)		(123.8)
	Operating earnings	5	55.9		65.1		124.7
	Other losses		(0.7)		(0.6)		(1.2)
	Amortisation of intangible assets	11	(19.9)		(19.8)		(39.9)
	Operating profit		35.3		44.7		83.6
	Finance income		0.3		0.5		1.0
	Finance expense	7	(4.4)		(7.9)		(14.3)
	Profit before taxation		31.2		37.3		70.3
	Income tax expense	8	(7.1)		(8.7)		(18.9)
	Profit for the period attributable to owners of the parent		24.1		28.6		51.4
	Earnings per share
	Basic	10	6.7p		9.1p		15.6p
	Diluted	10	6.4p		8.8p		15.0p

Consolidated statement of comprehensive income

			Six months ended 30 June 2012 (unaudited)		Six months ended 30 June 2011 (unaudited)		Year ended 31 December 2011 (audited)
		Notes	£m		£m		£m
	Profit for the period		24.1		28.6		51.4
	Other comprehensive (loss)/income
	Exchange movements on translation of subsidiary undertakings	17	(0.4)		(0.3)		(0.1)
	Changes in the fair value of available for sale investments	17	(0.1)		-		1.1
	Other comprehensive (loss)/income for the period		(0.5)		(0.3)		1.0
	Total comprehensive income for the period attributable to owners of the parent		23.6		28.3		52.4

Consolidated balance sheet

			30 June 2012 (unaudited)		30 June 2011 (unaudited)		31 December 2011 (audited)
		Notes	£m		£m		£m
	Non-current assets
	Goodwill	11	341.2		341.2		341.2
	Intangible assets	11	84.1		122.9		103.5
	Property, plant and equipment	12	1.5		1.1		1.6
	Available for sale investments	13	24.5		20.2		24.6
	Deferred tax assets	13	12.1		12.4		11.3
	Trade and other receivables	13	15.6		18.7		17.3
			479.0		516.5		499.5
	Current assets
	Investment in associates	13	13.9		13.5		13.6
	Financial assets at fair value through profit or loss	13	35.6		41.3		25.5
	Derivative financial instruments	13	-		0.1		-
	Trade and other receivables	13	89.6		106.9		78.6
	Cash and cash equivalents	14	113.7		167.0		151.3
			252.8		328.8		269.0
	Total assets		731.8		845.3		768.5
	Equity attributable to owners of the parent
	Share capital	16	9.2		9.2		9.2
	Own share reserve	17	(1.3)		(2.1)		(2.1)
	Other reserve	17	8.0		8.0		8.0
	Available for sale reserve	17	11.3		10.3		11.4
	Foreign currency translation reserve	17	7.0		7.2		7.4
	Retained earnings	17	399.1		373.3		390.7
	Total equity		433.3		405.9		424.6
	Non-current liabilities
	Loans and borrowings	15	108.9		200.4		141.4
	Trade and other payables	13	24.6		30.5		27.5
	Deferred tax liabilities	13	20.3		33.1		25.8
			153.8		264.0		194.7
	Current liabilities
	Financial liabilities at fair value through profit or loss	13	4.1		8.2		-
	Trade and other payables		126.4		149.1		132.4
	Provisions		-		1.4		-
	Current tax liabilities	13	13.2		16.7		16.2
	Derivative financial instruments	13	1.0		-		0.6
			144.7		175.4		149.2
	Total liabilities		298.5		439.4		343.9
	Total equity and liabilities		731.8		845.3		768.5

CConsolidated statement of changes in equity

	Ordinary  share  capital	Share   premium	Capital  redemption  reserve	Own  share  reserve	Other   reserve	Available  for sale  reserve	Foreign  currency  translation  reserve	Retained  earnings	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2011 (audited)	9.2	255.7	54.1	(2.9)	8.0	10.3	7.5	48.8	390.7
Profit for the period	-	-	-	-	-	-	-	28.6	28.6
Other comprehensive income	-	-	-				(0.3)	-	(0.3)
Total comprehensive income	-	-	-	-	-	-	(0.3)	28.6	28.3
Cancellation of share premium and capital redemption reserve	-	(255.7)	(54.1)	-	-	-	-	309.8	-
Vesting of ordinary shares	-	-	-	0.8	-	-	-	-	0.8
Dividends paid	-	-	-	-	-	-	-	(20.7)	(20.7)
Share-based payments	-	-	-	-	-	-	-	6.6	6.6
Deferred tax on share-based payments	-	-	-	-	-	-	-	0.2	0.2
At 30 June 2011 (unaudited)	9.2	-	-	(2.1)	8.0	10.3	7.2	373.3	405.9
Profit for the period	-	-	-	-	-	-	-	22.8	22.8
Other comprehensive income	-	-	-	-	-	1.1	0.2	-	1.3
Total comprehensive income	-	-	-	-	-	1.1	0.2	22.8	24.1
Dividends paid	-	-	-	-	-	-	-	(11.0)	(11.0)
Share-based payments	-	-	-	-	-	-	-	6.1	6.1
Deferred tax on share-based payments	-	-	-	-	-	-	-	(0.5)	(0.5)
At 31 December 2011 (audited)	9.2	-	-	(2.1)	8.0	11.4	7.4	390.7	424.6
Profit for the period	-	-	-	-	-	-	-	24.1	24.1
Other comprehensive income	-	-	-	-	-	(0.1)	(0.4)	-	(0.5)
Total comprehensive income	-	-	-	-	-	(0.1)	(0.4)	24.1	23.6
Vesting of ordinary shares	-	-	-	0.8	-	-	-	-	0.8
Dividends paid	-	-	-	-	-	-	-	(23.1)	(23.1)
Share-based payments	-	-	-	-	-	-	-	7.2	7.2
Deferred tax on share-based payments	-	-	-	-	-	-	-	0.2	0.2
At 30 June 2012 (unaudited)	9.2	-	-	(1.3)	8.0	11.3	7.0	399.1	433.3

Consolidated statement of cash flows

			Six months ended 30 June 2012 (unaudited)		Restated Six months ended 30 June 2011 (unaudited)		Year ended 31 December 2011 (audited)
		Notes	£m		£m		£m
	Cash flows from operating activities
	Cash generated from operations	19	49.2		54.8		133.5
	Income tax paid		(16.1)		(8.9)		(26.4)
	Net cash inflows from operating activities		33.1		45.9		107.1
	Cash flows from investing activities
	Purchases of property, plant and equipment	12	(0.3)		(0.2)		(1.1)
	Purchase of intangible assets	11	(0.5)		(0.3)		(1.0)
	Purchase of seed capital investments		(17.1)		-		-
	Proceeds from disposal of seed capital investments		6.0		7.0		8.3
	Purchase of available for sale investments		-		-		(3.3)
	Finance income received		0.3		0.6		0.8
	Dividend income received		-		-		0.2
	Net cash (outflows)/inflows from investing activities		(11.6)		7.1		3.9
	Cash flow from financing activities
	Dividends paid		(23.1)		(20.7)		(31.7)
	Finance expenses paid	18	(4.8)		(5.7)		(9.2)
	Repayment of bank loans		(33.0)		(80.0)		(140.0)
	Net cash outflows from financing activities		(60.9)		(106.4)		(180.9)
	Net decrease in cash and cash equivalents		(39.4)		(53.4)		(69.9)
	Cash and cash equivalents at beginning of the period		150.4		220.3		220.3
	Exchange gain on cash and cash equivalents		-		0.1		-
	Cash and cash equivalents at end of period	14	111.0		167.0		150.4

Notes to the interim financial statements

1. Introduction

The principal activity of Jupiter Fund Management plc (the "Company") is to act as a holding company for a group of investment management companies. The Company and its subsidiaries (together the "Group") offer a range of asset management products.  Through its subsidiaries, the Group acts as an investment manager to authorised unit trusts, SICAVs, investment trust companies, pension funds, private clients and other specialist funds. The Group has offices in the United Kingdom, Germany, Jersey, Singapore and Switzerland. Jupiter Fund Management plc is a company incorporated and domiciled in England and Wales and is the ultimate parent of the Group.

2. Basis of preparation

These condensed interim financial statements for the period ended 30 June 2012 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34 'Interim Financial Reporting', as adopted by the European Union. The condensed interim financial statements should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2011, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

The condensed interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 December 2011 were approved by the Board of Directors (the "Board") on 23 March 2012 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.  The condensed interim financial statements have been reviewed, not audited.

The Group continues to have access to the financial resources required to run the business efficiently and has a strong gross cash position. The Group's forecasts, which are subject to rigorous sensitivity analysis, show that the Group will be able to operate within its available resources. As a consequence, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing these financial statements.

3. Accounting policies

The accounting policies applied are consistent with those described in the Group's annual financial statements for the year ended 31 December 2011.

4. Restatement of revenue and fees and commission expenses

The condensed interim financial statements include a prior period (2011 H1) restatement in relation to the classification of revenue and fee and commission expenses. This restatement does not have a cash effect and does not impact net revenue, profit for the financial period attributable to the owners of the parent, earnings per share or total equity.

In preparing the Group's prior annual financial statements, the Directors have reviewed the substance of contractual arrangements in relation to rebates, which are netted off against revenue, and fee and commission expenses, which are shown separately. As a result of this review, certain items in relation to the prior period have been reclassified between revenue and fee and commission expenses to ensure consistency with the current period presentation. The impact of the prior period restatement is shown below:

			As previously reported		Difference		As restated
			£m		£m		£m
	Revenue		151.0		31.0		182.0
	Fees and commission expenses		(22.7)		(31.0)		(53.7)
	Net revenue		128.3		-		128.3

5. Operating earnings

Operating earnings are defined as net revenue less administrative expenses and do not include investment income and returns, other gains/(losses), amortisation of intangible assets or exceptional costs. These are items which the Group considers are not indicative of the ongoing income and costs of its operations. The Group believes that operating earnings, while not a GAAP measure, gives relevant information on the profitability of the Group and its ongoing operations. Operating earnings may not be comparable with similarly titled measures used by other companies.

6. Segmental reporting

The Group operates only as a single operating segment, investment management.

The Group offers different fund products through different distribution channels. All financial, business and strategic decisions are made centrally by the Board, which determines the key performance indicators of the Group. Information is reported to the chief operating decision maker, the Board, on a single segment basis. Whilst the Group has the ability to analyse its underlying information in different ways, this information is not used by the Board to make decisions on an aggregated basis. The information

used to allocate resources and assess performance is reviewed for the Group as a whole. On this basis, the Group considers itself to be a single-segment investment management business.

Management monitors the operating earnings of its business segment for the purposes of making decisions about resource allocation and performance assessment.

7. Finance expense

			Six months ended 30 June 2012		Six months ended 30 June 2011		Year ended 31 December 2011
			£m		£m		£m
	Interest payable on bank borrowings		3.3		5.4		9.5
	Amortisation of debt issue costs		0.5		1.5		2.5
	Fair value movement on interest rate swaps		0.3		0.8		1.6
	Interest payable on interest rate swaps		0.2		0.2		0.4
	Other finance costs		0.1		-		0.3
	Total finance expense		4.4		7.9		14.3

A partial debt repayment of £33.0m was made on 29 June 2012. Following this repayment, the Group's outstanding bank debt was £110.0m (2011 H1: £203.0m, 2011: £143.0m). The repayment resulted in an acceleration of the amortisation of debt issue costs of £0.3m.

Interest rate swaps

In November 2010, the Group entered into two interest rate swaps, both with a notional value of £35.0m with interest settling quarterly. One is for a period of three years paying a fixed interest rate of 1.33 per cent. and the other is for a period of four years paying a fixed interest rate of 1.6175 per cent.

8. Income tax expense

			Six months ended 30 June 2012		Six months ended 30 June 2011		Year ended 31 December 2011
			£m		£m		£m
	Current taxation
	UK corporation tax
	Tax on profits for the period		13.2		15.7		33.3
	Adjustment in respect of prior periods		-		0.6		-
			13.2		16.3		33.3
	Deferred taxation
	Origination and reversal of temporary differences		(5.8)		(6.5)		(13.9)
	Impact of changes in corporation tax rate		(0.3)		(1.4)		(1.7)
	Adjustment in respect of prior periods		-		0.3		1.2
			(6.1)		(7.6)		(14.4)
	Total income tax expense		7.1		8.7		18.9

The average UK corporation tax rate for the period ended 30 June 2012 was 24.5 per cent. (2011 H1: 26.5 per cent., 2011: 26.5 per cent.)

On 1 April 2012, the UK corporation tax rate changed from 26 per cent. to 24 per cent. In addition, a number of other changes to the UK corporation tax system were announced in the March 2012 UK Budget Statement. Legislation to reduce the main rate of corporation tax from 24 per cent. to 23 per cent. from 1 April 2013 was included in the Finance Act 2012.

A further reduction to the main rate is proposed to reduce the rate by 1 per cent. per annum to 22 per cent. by 1 April 2014. This further change had not been substantively enacted at the balance sheet date and, therefore, is not included in this financial information. This proposed reduction of the main rate of corporation tax by 1 per cent. per year is expected to be enacted next year. The overall effect of the further changes from 24 per cent. to 22 per cent., if applied to the deferred tax balance at the balance sheet date, would be to reduce the deferred tax liability by an additional £0.6m (being £0.3m recognised in 2013 and £0.3m recognised in 2014). 

9. Dividends

On 22 May 2012, the Group paid a final dividend of 5.3p per ordinary share in respect of 2011.

The Board has declared an interim dividend for the period of 2.5p per ordinary share. This dividend will be paid on 7 September 2012 to ordinary shareholders on the register at close of business on 10 August 2012.

10. Earnings per share

Basic EPS is calculated by dividing the profit for the period attributable to ordinary equity holders of the parent by the weighted average number of issued ordinary shares during the period, less the weighted average number of own shares held.  

Diluted EPS is calculated by dividing the profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during that period plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

	Profit attributable to owners of the parent		Six months ended 30 June 2012		Six months ended 30 June 2011		Year ended 31 December 2011
			£m		£m		£m
	Profit for the period attributable to owners of the parent		24.1		28.6		51.4

10. Earnings per share (continued)

Since the Listing, the number of ordinary shares in issue is 457.7m. For the purposes of calculating EPS, the share capital of the parent is calculated as the weighted average number of ordinary shares in issue over the periods reported. The weighted average number of ordinary shares during the period used for the purposes of calculating EPS is as follows:

	Weighted average number of shares		Six months ended 30 June 2012		Six months ended 30 June 2011		Year ended 31 December 2011
			Number		Number		Number
			m		m		m
	Issued share capital		457.7		457.7		457.7
	Less: own shares held		(96.8)		(144.6)		(129.1)
	Weighted average number of ordinary shares for the purpose of basic EPS		360.9		313.1		328.6
	Add back weighted average number of dilutive shares		15.9		13.7		13.2
	Weighted average number of ordinary shares for the purpose of diluted EPS		376.8		326.8		341.8

The weighted average number of own shares is deducted from the weighted average number of ordinary shares. 'Own shares' are shares held in an Employee Benefit Trust ("EBT") for the benefit of employees under the vesting, lock-in and other incentive arrangements in place.

	Earnings per share		Six months ended 30 June 2012		Six months ended 30 June 2011		Year ended 31 December 2011
			p		p		p
	Basic		6.7		9.1		15.6
	Diluted		6.4		8.8		15.0

11. Goodwill and intangible assets

The Group has determined that it is a single cash generating unit for the purpose of assessing the potential impairment of both goodwill and intangible assets. The Group's intangible assets are computer software, investment management contracts and a trade name arising from the acquisition of Knightsbridge Asset Management Limited (formerly Comasman Limited) on 19 June 2007. There was an amortisation charge for investment management contracts, brand name and software of £19.9m in the period (2011 H1: £19.8m, 2011: £39.9m). No additional goodwill or investment management contracts and trade names were acquired in the period (2011 H1: £nil, 2011: £nil).

	Net carrying values of goodwill and intangible assets		30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	Goodwill		341.2		341.2		341.2
	Investment management contracts and trade name		81.6		120.6		101.1
	Computer software		2.5		2.3		2.4
	Total goodwill and intangible assets at end of period		425.3		464.1		444.7

During the period, the Group acquired software with a value of £0.5m (2011 H1: £0.3m, 2011: £1.0m). No disposals of software were made during the period (2011 H1: £nil, 2011: £0.4m).

12. Property, plant and equipment

The net book value of property, plant and equipment at 30 June 2012 was £1.5m (2011 H1: £1.1m, 2011: £1.6m).

During the period, the Group acquired property, plant and equipment with a value of £0.3m (2011 H1: £0.2m, 2011: £1.1m).

13. Financial instruments

Financial instruments by category

The carrying value of the financial instruments of the Group at the period end is shown below.

As at 30 June 2012		Available for sale	Designated at FVTPL		Loans and receivables		Financial liabilities at FVTPL			Other financial liabilities			Total financial instruments			Non-financial instruments			Total
		£m	£m		£m		£m			£m			£m			£m			£m
Goodwill		-	-		-		-			-			-			341.2			341.2
Intangible assets		-	-		-		-			-			-			84.1			84.1
Property, plant and equipment		-	-		-		-			-			-			1.5			1.5
Available for sale investments		24.5	-		-		-			-			24.5			-			24.5
Deferred tax assets		-	-		-		-			-			-			12.1			12.1
Non-current trade and other receivables*		-	-		-		-			-			-			15.6			15.6
Investments in associates		-	13.9		-		-			-			13.9			-			13.9
Financial assets at fair value through profit or loss ("FVTPL")		-	35.6		-		-			-			35.6			-			35.6
Current trade and other receivables*		-	-		79.1		-			-			79.1			10.5			89.6
Cash and cash equivalents		-	-		113.7		-			-			113.7			-			113.7
Loans and borrowings		-	-		-		-			(110.0)			(110.0)			1.1			(108.9)
Non-current trade and other payables*		-	-		-		-			(0.9)			(0.9)			(23.7)			(24.6)
Deferred tax liabilities		-	-		-		-			-			-			(20.3)			(20.3)
Financial liabilities at FVTPL		-	-		-		(4.1)			-			(4.1)			-			(4.1)
Current trade and other payables*		-	-		-		-			(107.2)			(107.2)			(19.2)			(126.4)
Current income tax liability		-	-		-		-			-			-			(13.2)			(13.2)
Derivative financial instruments		-	-		-		(1.0)			-			(1.0)			-			(1.0)
Total		24.5	49.5		192.8		(5.1)			(218.1)			43.6			389.7			433.3
As at 30 June 2011	Available for sale		Designated at FVTPL		Loans and receivables			Financial liabilities at FVTPL			Other financial liabilities			Total financial instruments			Non-financial instruments			Total
	£m		£m		£m			£m			£m			£m			£m			£m
Goodwill	-		-		-			-			-			-			341.2			341.2
Intangible assets	-		-		-			-			-			-			122.9			122.9
Property, plant and equipment	-		-		-			-			-			-			1.1			1.1
Available for sale investments	20.2		-		-			-			-			20.2			-			20.2
Deferred tax assets	-		-		-			-			-			-			12.4			12.4
Non-current trade and other receivables*	-		-		-			-			-			-			18.7			18.7
Investments in associates	-		13.5		-			-			-			13.5			-			13.5
Financial assets at FVTPL	-		41.3		-			-			-			41.3			-			41.3
Current trade and other receivables*	-		-		85.5			-			-			85.5			21.4			106.9
Cash and cash equivalents	-		-		167.0			-			-			167.0			-			167.0
Loans and borrowings	-		-		-			-			(203.0)			(203.0)			2.6			(200.4)
Non-current trade and other payables*	-		-		-			-			-			-			(30.5)			(30.5)
Deferred tax liabilities	-		-		-			-			-			-			(33.1)			(33.1)
Financial liabilities at FVTPL	-		-		-			(8.2)			-			(8.2)			-			(8.2)
Current trade and other payables*	-		-		-			-			(136.3)			(136.3)			(12.8)			(149.1)
Provisions	-		-		-			-			-			-			(1.4)			(1.4)
Current income tax liability	-		-		-			-			-			-			(16.7)			(16.7)
Derivative financial instruments	-		0.1		-			-			-			0.1			-			0.1
Total	20.2		54.9		252.5			(8.2)			(339.3)			(19.9)			425.8			405.9
As at 31 December 2011		Available for sale	Designated at FVTPL	Loans and receivables		Financial liabilities at FVTPL			Other financial liabilities			Total financial instruments			Non-financial instruments			Total
		£m	£m	£m		£m			£m			£m			£m			£m
Goodwill		-	-	-		-			-			-			341.2			341.2
Intangible assets		-	-	-		-			-			-			103.5			103.5
Property, plant and equipment		-	-	-		-			-			-			1.6			1.6
Available for sale investments		24.6	-	-		-			-			24.6			-			24.6
Deferred tax assets		-	-	-		-			-			-			11.3			11.3
Non-current trade and other receivables*		-	-	-		-			-			-			17.3			17.3
Investments in associates		-	13.6	-		-			-			13.6			-			13.6
Financial assets at FVTPL		-	25.5	-		-			-			25.5			-			25.5
Current trade and other receivables*		-	-	57.4		-			-			57.4			21.2			78.6
Cash and cash equivalents		-	-	151.3		-			-			151.3			-			151.3
Loans and borrowings		-	-	-		-			(143.0)			(143.0)			1.6			(141.4)
Non-current trade and other payables*		-	-	-		-			(0.9)			(0.9)			(26.6)			(27.5)
Deferred tax liabilities		-	-	-		-			-			-			(25.8)			(25.8)
Current trade and other payables*		-	-	-		-			(119.9)			(119.9)			(12.5)			(132.4)
Current income tax liability		-	-	-		-			-			-			(16.2)			(16.2)
Derivative financial instruments		-	-	-		(0.6)			-			(0.6)			-			(0.6)
Total		24.6	39.1	208.7		(0.6)			(263.8)			8.0			416.6			424.6

* Financial instruments do not include prepayments, deferred income or deferred acquisition and commission costs as these are not financial instruments.

14. Cash and cash equivalents

			30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	Cash and cash equivalents per the balance sheet		113.7		167.0		151.3
	Overdraft		(2.7)		-		(0.9)
	Cash and cash equivalents for the purposes of the statement of cash flows		111.0		167.0		150.4

The overdraft arose during the ordinary course of business and relates to settlement timing differences at the period end.

15. Loans and borrowings

			30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	Bank loan		108.9		200.4		141.4
	At end of period		108.9		200.4		141.4

The Group has a syndicated loan which is repayable on or before 19 June 2015. The loan is secured by a charge over the assets of a subsidiary company, Jupiter Asset Management Group Limited ("JAMG"). The restrictions which arise under the terms of the loan facility prevent intercompany loans between certain subsidiaries and prohibit assets being sold, leased or disposed of, other than in the ordinary course of business.

As shown below, the carrying value of the loan is disclosed net of unamortised debt issue costs which were capitalised on issue.

			30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	Bank loan		110.0		203.0		143.0
	Unamortised debt issue costs		(1.1)		(2.6)		(1.6)
	At end of period		108.9		200.4		141.4

The movement on the carrying value of the loan is shown below:

			30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	At 1 January		141.4		278.9		278.9
	Voluntary prepayments made in the period		(33.0)		(80.0)		(140.0)
	Amortisation of debt issue costs (Note 7)		0.5		1.5		2.5
	At end of period		108.9		200.4		141.4

Interest is payable at a rate of 3 month LIBOR plus a margin of 3.75 per cent. The Group has two interest rate swaps in place to hedge its floating rate exposure. Details on these are given in Note 7.

Under the facility agreement, the Group also has access to a revolving credit facility of £10m. This was not utilised during the period.

16. Share capital

			30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	Issued, allotted, called-up and fully paid
	457.7m ordinary shares of 2p each		9.2		9.2		9.2
	At end of period		9.2		9.2		9.2

17. Reserves

	(i) Share premium account		30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	At 1 January		-		255.7		255.7
	Cancelled in period and transferred to retained earnings		-		(255.7)		(255.7)
	At end of period		-		-		-

The share premium account represented amounts received on the issue of share capital in excess of nominal value and was not a distributable reserve. On 9 June 2011, the Company's share premium account was, with the sanction of the Court, cancelled and an amount of £255.7m transferred to a distributable reserve. 

	(ii) Capital redemption reserve		30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	At 1 January		-		54.1		54.1
	Created in period on cancellation of deferred shares		-		-		-
	Cancelled in period and transferred to retained earnings		-		(54.1)		(54.1)
	At end of period		-		-		-

17. Reserves (continued)

On 9 June 2011, the Company's capital redemption reserve was, with the sanction of the Court, cancelled and an amount of £54.1m transferred to a distributable reserve.

	(iii) Own share reserve		30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	At 1 January		(2.1)		(2.9)		(2.9)
	Vesting of ordinary shares		0.8		0.8		0.8
	At end of period		(1.3)		(2.1)		(2.1)

At 30 June 2012, 42.8m (2011 H1: 89.0m, 2011: 82.5m) ordinary shares beneficially owned by senior employees were subject to restrictions which, in some circumstances, require the Group to repurchase the shares at their nominal value, and this liability is shown within current trade and other payables. The majority of these restrictions are released over the next year. The shares are held within the Group's EBT and together with a further 20.9m (2011 H1: 15.8m, 2011: 20.9m) shares held for the purpose of satisfying share option obligations to employees, are treated as own shares with a cost of £1.3m (2011 H1: £2.1m, 2011: £2.1m).

During the period ended 30 June 2012, 39.2m of the ordinary shares vested and the reserve and associated payable were reduced by £0.8m.

	(iv) Available for sale reserve		30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	At 1 January		11.4		10.3		10.3
	Changes in fair value of available for sale assets		(0.1)		-		1.1
	At end of period		11.3		10.3		11.4

The available for sale reserve relates to the uplift in the fair value of the Group's holdings in investments classified as available for sale.

	(v) Foreign currency translation reserve		30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	At 1 January		7.4		7.5		7.5
	Exchange movement on translation of subsidiary undertakings		(0.4)		(0.3)		(0.1)
	At end of period		7.0		7.2		7.4

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.

	(vi) Other reserve		30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	1 January and at end of period		8.0		8.0		8.0

	(viii) Retained earnings		30 June 2012		30 June 2011		31 December 2011
			£m		£m		£m
	At 1 January		390.7		48.8		48.8
	Profit for the period		24.1		28.6		51.4
	Share-based payments		7.2		6.6		12.7
	Deferred tax on share-based payments		0.2		0.2		(0.3)
	Dividends paid		(23.1)		(20.7)		(31.7)
	Cancellation of share premium and transfer to retained earnings		-		255.7		255.7
	Cancellation of capital redemption reserve and transfer to retained earnings		-		54.1		54.1
	At end of period		399.1		373.3		390.7

18. Restatement of consolidated statement of cash flows

The presentation of the consolidated statement of cash flows has been reviewed and two items have been restated to reflect more appropriately the way the business generates its cash flows. These changes are reclassifications only and the net cash flow for 2011 H1 is unaffected. The changes to the face of the 2011 H1 statement of cash flows are as follows:

·      Finance expenses (2011 H1: £5.7m) paid has been reclassified from "Net cash inflows from operating activities" to "Net cash outflows from financing activities".

·      Cash flows arising from purchase (2011 H1: nil) and disposal (2011 H1: £7.0m) of seed capital investments have been reclassified from "Net cash inflows from operating activities" to "Net cash inflows from investing activities".

In addition, Note 19 has been updated to simplify the disclosure.

19. Cash flows from operating activities

					Restated
			Six months ended 30 June 2012		Six months ended 30 June 2011		Year ended 31 December 2011
			£m		£m		£m
	Cash flows from operating activities
	Operating profit		35.3		44.7		83.6
	Adjustments for:
	Amortisation of intangible assets		19.9		19.8		39.9
	Depreciation of property,plant and equipment		0.4		0.3		0.6
	Other non-cash losses/(gains)		4.5		(0.8)		4.3
	Share-based payments		7.2		6.6		12.7
	(Increase)/decrease in trade and other receivables		(9.5)		(3.4)		25.9
	Decrease in trade and other payables		(8.6)		(11.9)		(31.5)
	Decrease in provisions		-		(0.5)		(2.0)
	Cash generated from operations		49.2		54.8		133.5

20. Related party transactions

Related party transactions during the period are consistent with the categories disclosed in the Annual Report for the year ended 31 December 2011.

Statement of Directors' responsibilities

We confirm that to the best of our knowledge:

·      the condensed set of financial statements has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', and gives a true and fair view of the assets, liabilities, financial position and profit of the Group for the period ended 30 June 2012.

·      the half yearly report includes a fair review of the information required by:

·      DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the current financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

·      DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Group during that period; and any changes in the related party transactions described in the last annual report that could have a material effect on the financial position or performance of the Group in the past six months of the current financial year.

On behalf of the Board

Philip Johnson

Chief Financial Officer

31 July 2012

Independent review report to Jupiter Fund Management plc

Introduction

We have been engaged by the Company to review the condensed interim financial statements in the half-yearly financial report for the six months ended 30 June 2012, which comprises the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated statement of cash flows and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed interim financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in Note 2, the annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union. The condensed interim financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

The maintenance and integrity of the Jupiter Fund Management plc website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed interim financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed interim financial statements in the half-yearly financial report for the six months ended 30 June 2012 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP

Chartered Accountants

London

31 July 2012

 

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