Half Year Results

RNS Number : 6726N

Jupiter Fund Management PLC

30 July 2014

 

Jupiter Fund Management

Highlights

30 July 2014

·      Strong investment performance track record maintained

·      Assets under management increased to £33.1bn, benefitting from net mutual fund inflows of £875m

·      Investing for growth whilst maintaining operating margins above 50 per cent.

·      H1 14 PBT of £48.4m, down on H1 13 due to prior year inclusion of £6.7m gain on sale of Cofunds  stake

·      Underlying earnings per share up four per cent. to 12.9p

·      Announced sale of private client contracts to Rathbones

·      Interim dividend to shareholders increased to 3.7p

			Six months ended 30 June 2014 (unaudited)	Six months ended 30 June 2013 (unaudited)	Year ended 31 December 2013
	Assets under management (£bn)		33.1	29.0	31.7
	Net inflows (£bn)		1.3	0.4	1.2
	EBITDA1 (£m)		76.3	75.3	151.5
	EBITDA margin2 (per cent.)		51	54	53
	Profit before tax (£m)		48.4	59.1	114.1
	Underlying earnings per share2 (p)		12.9	12.4	25.2
	Dividend per share (p)		3.7	3.5	12.6

¹ Earnings before interest, tax, depreciation and amortisation ("EBITDA") 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

² non-GAAP

Maarten Slendebroek, Chief Executive, commented:

"We are pleased with the progress being made on the implementation of our growth strategy during the first half of 2014. The Board's intention to increase cash returns to shareholders through a combination of ordinary and special dividends reflects this progress and confidence in our future growth potential. We believe this approach will allow shareholders to participate in our organic growth story while receiving an attractive yield."

Analyst presentation

There will be an analyst presentation to discuss the results on 30 July 2014 at 9.00am. The presentation will be held at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD and is also accessible via a live audiocast for those unable to attend in person. To attend the presentation, please contact Laura Ewart 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/8989e07fc1-8529-intro

The Interim Report will be available at www.jupiteronline.com

For further information, please contact:

	Investors	Media
Jupiter	Philip Johnson [phone]	Alicia Wyllie [phone]
FTI Consulting	Laura Ewart [phone]	Andrew Walton [phone]

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.

Chief Executive's statement

This is my first set of interim results since becoming Chief Executive of Jupiter in March and I am pleased to report continued good progress on the implementation of our strategy and delivery against our key goals.

Strategic review

Our strategy remains straightforward: delivering outperformance after fees on behalf of our clients, selling this expertise through products suited to our distribution strengths and delivering attractive returns to our shareholders.

Achieving investment outperformance over the medium term is critical to the delivery of our strategy, and our fund management team has continued to perform well over the key three year time period. As at 30 June 2014, 75 per cent. of our mutual fund assets have outperformed after fees over three years and performance of our segregated and investment trust mandates has also remained strong. We have continued to evolve our fund management structure as we focus on the product trends we believe will drive further growth of the business, particularly around developing outcome-orientated solutions that meet our clients' future needs. We already have a strong platform and product range in place, but are continually seeking areas where we can build, reinvigorate or innovate. To that end, it was pleasing to announce the hire of a new Head of Strategy for Global Emerging Markets during the period and we will continue to look at further strategies where talent can be added to improve existing, or manufacture new products suitable for our clients.

We continued to strengthen our presence in international markets during the period, adding new resources in the Nordics, Spain and Austria as well as deepening the teams in our existing German and Hong Kong offices. Over the past 18 months, we have increased our European and Asian teams from five to 23 people, restructured our London-based sales and marketing efforts, revitalised our brand image and improved our ability to make products available in forms suitable for the local markets in which we operate. These changes increase our focus on key clients around the world and have produced encouraging results to date, with £1.3bn of net inflows during the first half and assets under management increasing to a new high of £33.1bn as at 30 June 2014. As in the second half of last year, our mutual fund net inflows of £0.9bn have predominantly come from our successful diversification into fixed income, resulting in net management fee margins falling to 87bps for the period. This is a business mix effect as pricing within our product range at the individual fund level has generally been stable. Flows are integral to growing our business over time, and I am pleased to report that net management fees rose by £10m to £141m during the period despite this lower fee margin.

Our potential for future growth depends on continual successful investment in our fund management, distribution and support infrastructure capabilities. Our organic growth strategy ensures these areas require very little in the form of capital but, in any particular period, operating costs can come on stream before associated revenues. We are mindful of this effect and look to ensure that we manage our fixed cost base according to prevailing market conditions at the time, so we can grow the business over time while preserving our scalable operating model. This desire to maintain prospective operating margins at attractive but sustainable levels across the cycle provides us with a framework for considering the pace of investment we will continue to make in our people, brand, technology and new premises. Against this backdrop, EBITDA of £76.3m and EBITDA margins of 51% for the period are in line with our expectations. Underlying earnings per share increased by four per cent. to 12.9p in the first half of 2014 as we have benefited from improved trading, financing cost savings and a lower UK corporation tax rate.

On 1 April, we announced the sale of our private client and charity operations to Rathbone Investment Management. This decision was taken on strategic grounds, as we believe it will simplify our operating model, reduce risk and increase our ability to focus on growing our core mutual fund franchise. The transaction remains on track for completion at the end of the third quarter of 2014.

The completion of our deleveraging process in early 2014 means Jupiter has a sustainable balance sheet from both a cash and capital perspective. This creates the potential for increased returns to shareholders. While no final decision has been taken, it is the Board's current intention to deliver these returns through progressive ordinary dividends, targeting a 50% payout ratio across the cycle, topped up by special dividends dependent on the size of residual earnings. In 2014, such returns will be considered after funding the remaining debt pay down earlier this year, retaining sufficient capital to invest for future growth and will include any one-off income, such as net proceeds from the private client transaction. The increase in our interim dividend to 3.7p has been taken in line with this policy.

Outlook

We believe 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.

Maarten Slendebroek

Chief Executive Officer

Business review

Assets under management and flows

	Movement in assets under management by product across the period
		31 December       2013 £m	Q1 net flows £m	Q2 net flows £m	Market movement £m	30 June 2014 £m
	Mutual funds	24,760	465	410	126	25,761
	Segregated mandates	3,911	(86)	326	46	4,197
	Private clients	2,266	9	(14)	(20)	2,241
	Investment trusts	722	159	(1)	26	906
	Total	31,659	547	721	178	33,105

Assets under management ("AUM") increased to £33.1bn as at 30 June 2014 (31 December 2013: £31.7bn). While the FTSE remained flat across the period, AUM increased five per cent., benefiting from net inflows and continued investment outperformance.

In both quarters, mutual fund inflows remained healthy, taking year to date net mutual fund inflows to £875m. The strongest contribution was from our fixed income range, supported by our international expansion gaining traction. There were also net inflows of £158m and £240m for investment trusts and segregated mandates respectively as we took over the management of F&C US Smaller Companies investment trust and won two further mandates. We expect a large segregated mandate to redeem later this year. This mandate was written at a low management fee margin, with an attractive performance fee structure.

Investment performance

Delivering investment outperformance across our product range remains one of our core strategic objectives, and in the period we maintained our strong long term track record. In the key three year investment period, as at 30 June 2014, 29 mutual funds, representing approximately 75 per cent. of mutual funds by AUM, had delivered first and second quartile investment performance (31 December 2013: 30 mutual funds representing 69 per cent. of mutual fund AUM). Over one year, 26 mutual funds representing approximately 41 per cent. of mutual funds by AUM, delivered first and second quartile investment performance (31 December 2013: 32 mutual funds representing approximately 45 per cent. of mutual fund AUM).

Financial review

RESULTS FOR THE PERIOD

The financial performance of the Group is discussed below.

Net revenue

	Six months ended 30 June 2014 £m		Six months ended 30 June 2013 £m		Year ended 31 December 2013 £m
Net management fees	141.0		131.0		267.1
Net initial charge	6.8		8.8		15.7
Performance fees	0.7		0.5		5.7
Total	148.5		140.3		288.5

Net revenues for the period were £148.5m (2013 H1: £140.3m), a six per cent. increase on 2013 H1. This was driven by an increase in net management fees to £141.0m (2013 H1: £131.0m), as strong flows, particularly from our fixed income range, helped increase AUM ahead of underlying markets. Net initial charges of £6.8m (2013 H1: £8.8m), decreased due to a less favourable pattern of sales versus redemption activity across individual funds and the continued expected reduction in net amortised front end fees.

	Six months ended 30 June 2014		Six months ended 30 June 2013		Year ended 31 December 2013
Net management fees (£m)	141.0		131.0		267.1
Average AUM (£bn)	32.3		28.6		29.5
Net management fee margin (bps)	87		92		90

Net management fees continue to be the main component of net revenue (2014 H1: 95 per cent., 2013 H1: 93 per cent.). The Group's net management fee margin for the period was 87 basis points, below the 2013 H1 margin of 92 basis points, but in line with our expectations and previous market guidance given the higher proportion of SICAV and fixed income assets in the mutual fund book. We continue to expect net management fee margins to decline slowly over time, although the rate and angle of any such decline continues to be uncertain.

Administrative expenses

	Six months ended 30 June 2014 £m		Six months ended 30 June 2013 £m		Year ended 31 December 2013 £m
Fixed staff costs	23.5		21.2		43.0
Other expenses	23.8		20.4		43.9
Total fixed costs	47.3		41.6		86.9
Variable staff costs	25.4		23.9		51.0
Underlying administrative expenses	72.7		65.5		137.9
Charge for options over pre-Listing shares	0.6		2.4		4.2
Total administrative expenses	73.3		67.9		142.1

Underlying administrative expenses of £72.7m (2013 H1: £65.5m) were £7.2m higher than 2013 H1 as a result of increased fixed and variable staff costs as we continue to grow the business.

Fixed costs of £47.3m (2013 H1: £41.6m) were 14 per cent. ahead of 2013 H1. Fixed staff costs and other expenses rose as we increased our international headcount in line with the overseas expansion of the Group and increased our marketing spend to enhance the Group's profile and position in the market.

As communicated in our 2013 Annual Report & Accounts, our current lease of No 1 Grosvenor Place terminates in mid-2016. We have not, as yet, finalised new premises, but based on the current status of negotiations, expect to do so during the second half of 2014. Due to favourable rates on our current lease agreement, rental costs under a new lease are expected to be higher than at present, with an expected uplift of £5m from 2015 onwards.

	Six months ended 30 June 2014 £m		Six months ended 30 June 2013 £m		Year ended 31 December 2013 £m
Cash bonus	16.9		16.5		33.9
Deferred bonus	4.5		3.8		8.5
LTIP and SAYE	4.0		3.6		8.6
Variable staff costs	25.4		23.9		51.0
Variable compensation ratio1	25%		24%		25%

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 of £25.4m (2013 H1: £23.9m) increased by six per cent. due in part to higher profitability of the Group, with the cash bonus increasing in line with earnings. The additional increase in variable costs was due to the continuing roll-out of the post-Listing compensation structure, driven by the addition of an extra year of awards under the LTIP scheme and Deferred Bonus Plan. This roll-out is now complete with the first tranches having vested in April 2014.

Variable compensation as a proportion of pre-variable compensation operating earnings was 25 per cent. (2013 H1: 24 per cent.). This excludes a £0.6m charge (2013 H1: £2.4m) in respect of options granted prior to the Listing over the remaining shares in the pool established for employees at the time of the MBO in June 2007.

We expect the variable compensation ratio to remain in the mid to high 20 per cent. range over the medium-term, as the incentive schemes put in place as part of our Listing have now reached maturity. However, the equity-settled nature of previously awarded deferred bonus and LTIP schemes means that their costs are fixed at the time of grant and subsequently do not change if future earnings rise or fall. Therefore, in a period where earnings have risen strongly, we would expect the variable compensation ratio to remain at the lower end of our range.

Total administrative expenses of £73.3m (2013 H1: £67.9m) were £5.4m higher than 2013 H1, due to the increase in fixed and variable staff costs as explained above, partially offset by a decrease in the charge for options over pre-Listing shares as the majority of these options have now fully vested.

EBITDA

EBITDA was £76.3m for the period (2013 H1: £75.3m), up one per cent., as higher net management fees were offset by an increase in administrative expenses. The Group's EBITDA margin was 51 per cent. as our scalable operating model meant that we could continue our steady investment in our people, brand and platform, whilst still maintaining attractive profitability levels.

Other income statement movements

During 2014 H1, the Group wrote down its available for sale ("AFS") investment in iO Adria Limited ("Adria") to nil. It was held at £2.6m on the balance sheet as at 31 December 2013, and has therefore resulted in a £2.6m loss for the period which has been included within the other (losses)/gains line on the income statement. Also included within this line is £5.3m of costs incurred in the period on the private clients transaction. The prior year comparative included a gain of £6.7m, which was realised when the Group sold its entire holding in Cofunds Holdings Limited ("Cofunds") to a co-investor, Legal & General Group plc in 2013 H1. Consistent with prior periods, movements in the value of AFS assets have been excluded from underlying earnings.

Amortisation of £18.6m (2013 H1: £19.8m) included £18.2m (2013 H1: £19.4m) relating to intangible assets acquired as part of the MBO on 19 June 2007. These assets relate to investment management contracts (acquired for £258.0m) and the Jupiter brand name (acquired for £18.7m). Amortisation on the investment management contracts fully unwound in June 2014, and therefore the ongoing amortisation charge is expected to be significantly lower. The Jupiter brand name continues to be amortised on a straight line basis through to June 2017.

Finance costs of £0.1m (2013 H1: £2.0m) decreased due to the outstanding bank debt being fully repaid in February 2014.

Profit before tax

Profit before tax for the period decreased to £48.4m (2013 H1: £59.1m). This decrease of 18 per cent. was driven by the £5.3m of costs incurred on the private clients transaction and the £2.6m write down of Adria in the period, compared to the £6.7m gain made from the sale of Cofunds in the prior year.

Tax

The effective tax rate was 22.5 per cent. (2013 H1: 20.6 per cent., 2013: 22.3 per cent.) against a headline corporation tax rate of 21.5 per cent. (2013 H1: 23.25 per cent., 2013: 23.25 per cent.). This is primarily down to the write down of Adria which generated an accounting loss in the period that was not deductible for tax purposes.

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 8.5p and 8.2p respectively.

	Six months ended 30 June 2014 £m		Six months ended 30 June 2013 £m		Year ended 31 December 2013 £m
Profit before tax	48.4		59.1		114.1
Adjustments:
Amortisation of acquired investment management contracts and trade name	18.2		19.4		38.7
Charge for options over pre-Listing shares	0.6		2.4		4.2
Directly attributable costs from private clients transaction	5.3		-		-
Loss/(gain) taken to the income statement on available for sale investments	2.6		(6.7)		(6.7)
Underlying profit before tax	75.1		74.2		150.3
Tax at statutory rate of 21.5 per cent.	(16.1)		(17.3)		(34.9)
(2013 H1: 23.25 per cent., 2013: 23.25 per cent.)
Underlying profit after tax	59.0		56.9		115.4
Issued share capital (m)	457.7		457.7		457.7
Underlying EPS	12.9p		12.4p		25.2p
Basic EPS	8.5p		11.7p		21.1p
Diluted EPS	8.2p		11.0p		20.0p

Underlying EPS was four per cent. ahead of 2013 H1 at 12.9p (2013 H1: 12.4p), reflective of the Group's improved trading performance, reduced finance expenses following the debt repayments and the lower statutory tax rate.

CASH FLOW

The Group generated positive operating cash flows after tax in 2014 H1 of £54.1m (2013 H1: £54.4m). Further proceeds of £3.5m were generated on the net redemption of seed capital investments, offset by the final dividend payment of £40.2m, purchase of shares by the EBT of £4.9m, and the £11.0m repayment of the bank loan.

ASSETS AND LIABILITIES

£11.0m of bank debt was repaid in the period, reducing the outstanding loan balance to £nil as at 30 June 2014. The revolving credit facility extends to June 2016 and it is our intention to leave the facility intact, but undrawn, in case of need, supporting our intention to run a sustainable balance sheet with net cash across the cycle.

The Group further strengthened its net cash position to £172.0m (31 December 2013: £160.8m), despite funding the 2013 final dividend payment and compensation round in the period. Full repayment of outstanding debt in February 2014 has allowed the Group to subsequently retain cash amounts generated through trading.

In June 2014, the Group revised its share repurchase programme from £0.6m to £1.2m per month, increasing the rate to a level where we now expect no dilution.

We deploy seed capital into funds to assist us in building a track record from launch or to give small but strongly performing funds sufficient scale to attract external money. As at 30 June 2014, we had a total investment of £45.3m in our own funds (31 December 2013: £50.1m). This excludes £4.7m of investments in our own funds to hedge our obligation to settle amounts payable to employees in relation to Deferred Bonus Plan awards.

EQUITY AND CAPITAL MANAGEMENT

Total shareholders' equity decreased by £0.7m to £513.0m, as the continued profitability of the Group was offset by the payment of the 2013 final dividend of £40.2m and the costs incurred in relation to the private clients transaction.

The Group currently has a three year investment firm consolidation waiver which will run to June 2015. During 2013, the Group traded out of the need for a waiver.

DIVIDENDS

The Board considers the dividend on a total basis, whilst looking to maintain an appropriate balance between interim and final dividends. Reflecting our strong balance sheet from a cash and capital perspective, and healthy operating cash flows supported by attractive operating margins, the Board has declared an increased interim dividend of 3.7p (2013 H1: 3.5p).

SALE OF PRIVATE CLIENT CONTRACTS

On 1 April 2014, we announced the sale of our private client and charity operations to Rathbone Investment Management, with the transaction expected to complete towards the end of Q3 2014. As a result of this transaction, which will see the transfer of client contracts and a number of employees to the purchaser, we expect to receive gross proceeds of between £32m and £43m, with net proceeds after tax and deal costs expected to be between £20m and £25m.

Of the £2.2bn of private client AUM in scope of this transaction, some 30% is invested in collective funds managed by Jupiter. These assets will stay with us immediately after the sale and the AUM will allocated to their underlying product categories. We anticipate that the net financial impact is expected to be a decrease in revenue and profits of £12m and £2m per annum respectively.

Section 1: Results for the period

Consolidated income statement for the period ended 30 June 2014

			Six months ended 30 June 2014  (unaudited)		Six months ended 30 June 2013 (unaudited)		Year ended 31 December 2013 (audited)
		Notes	£m		£m		£m
	Revenue		192.8		191.7		388.8
	Fee and commission expenses		(44.3)		(51.4)		(100.3)
	Net revenue	1.1	148.5		140.3		288.5
	Administrative expenses		(73.3)		(67.9)		(142.1)
	Operating earnings	1.3	75.2		72.4		146.4
	Other (losses)/gains	1.4	(8.5)		8.1		9.5
	Amortisation of intangible assets	3.2	(18.6)		(19.8)		(39.7)
	Operating profit		48.1		60.7		116.2
	Finance income		0.4		0.4		1.0
	Finance costs	1.5	(0.1)		(2.0)		(3.1)
	Profit before taxation		48.4		59.1		114.1
	Income tax expense	1.6	(10.9)		(12.2)		(25.5)
	Profit for the period		37.5		46.9		88.6
	Earnings per share
	Basic	1.7	8.5p		11.7p		21.1p
	Diluted	1.7	8.2p		11.0p		20.0p

Consolidated statement of comprehensive income for the period ended 31 December 2014

			Six months ended 30 June 2014 (unaudited)		Six months ended 30 June 2013 (unaudited)		Year ended 31 December 2013 (audited)
		Notes	£m		£m		£m
	Profit for the period		37.5		46.9		88.6
	Items that may be reclassified subsequently to profit or loss
	Exchange movements on translation of subsidiary undertakings		-		0.1		-
	Net change in fair value of available for sale investments	3.4	-		0.1		-
	Net change in fair value of available for sale investments reclassified to profit or loss	3.4	-		(6.6)		(6.6)
	Other comprehensive expense for the period net of tax		-		(6.4)		(6.6)
	Total comprehensive income for the period net of tax		37.5		40.5		82.0
Notes to the Group financial statements - Income statement

INTRODUCTION

Jupiter Fund Management plc and its subsidiaries (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, Singapore, Hong Kong and Switzerland.

The Group's financial statements have been split into sections to assist with their navigation and align with the Financial Review. The basis of preparation, accounting policies and principal risks and mitigations are within Section 5.

1.1 NET REVENUE

The Group's primary source of revenue is management fees. Management fees are based on an agreed percentage of the assets under management. Initial charges and commissions include fees based on a set percentage of certain inflows to our funds, commission earned on private client dealing charges and profits earned on dealing within the unit trust manager's box, known as box profits. Performance fees are earned from some funds when agreed performance conditions are met. Net revenue is stated after fee and commission expenses to intermediaries for ongoing services under distribution agreements.

		Six months ended 30 June 2014		Six months ended 30 June 2013		Year ended 31 December 2013
		£m		£m		£m
	Management fees	182.4		178.9		360.7
	Initial charges and commissions	9.7		12.3		22.4
	Performance fees	0.7		0.5		5.7
	Fee and commission expenses	(44.3)		(51.4)		(100.3)
	Total net revenue	148.5		140.3		288.5

1.2 SEGMENTAL REPORTING

The Group offers a range of products and services through different distribution channels. All financial, business and strategic decisions are made centrally by the Board of Directors (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. While the Group has the ability to analyse its underlying information in different ways, for example by product type, this information is only used to allocate resources and assess performance for the Group as a whole. On this basis, the Group considers itself to be a single-segment investment management business.

Management monitors operating earnings, a non-GAAP measure, for the purposes of making decisions about resource allocation and performance assessment.

1.3 OPERATING EARNINGS

Operating earnings are defined as net revenue less administrative expenses and do not include investment income and returns, other (losses)/gains, amortisation of intangible assets or exceptional items. 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.

1.4 OTHER (LOSSES)/GAINS

		Six months ended 30 June 2014		Six months ended 30 June 2013		Year ended 31 December 2013
		£m		£m		£m
	Loss on transfer of private client contracts	(5.3)		-		-
	(Loss)/gain on available for sale ("AFS") investments	(2.6)		6.7		6.7
	Other	(0.6)		1.4		2.8
	Total other (losses)/gains	(8.5)		8.1		9.5

Other losses in the period to 30 June 2014 were £8.5m (2013 H1: £8.1m gain, 2013: £9.5m gain). A loss of £5.3m relates to expenses incurred in relation to the transfer of private client contracts (see Note 1.8 for further details). A loss on AFS investments of £2.6m has been recognised relating to the impairment of our investment in Adria. The prior period gains on AFS investments related to the sale of Cofunds. See 3.4 for further details.

1.5 FINANCE COSTS

		Six months ended 30 June 2014		Six months ended 30 June 2013		Year ended 31 December 2013
		£m		£m		£m
	Interest payable on bank borrowings	-		1.4		1.8
	Amortisation of debt issue costs	-		0.4		0.7
	Debt issue cost expense	-		-		0.3
	Interest payable on interest rate swaps	-		0.1		0.2
	Other finance costs	0.1		0.1		0.1
	Total finance costs	0.1		2.0		3.1

Debt repayments of £11.0m were made during 2014 H1. Following these repayments, the Group's outstanding bank debt was £nil (2013 H1: £42.0m, 2013: £11.0m).

The Group terminated the last of its interest rate swaps in 2013 H2 and therefore there were no contracts outstanding at 30 June 2014.

1.6 INCOME TAX EXPENSE

		Six months ended 30 June 2014		Six months ended 30 June 2013		Year ended 31 December 2013
		£m		£m		£m
	Current taxation
	UK corporation tax
	Tax on profits for the period	11.9		16.0		34.5
	Adjustment in respect of prior periods	-		-		(0.8)
		11.9		16.0		33.7
	Deferred taxation
	Origination and reversal of temporary differences	(1.0)		(3.8)		(8.9)
	Impact of changes in corporation tax rate	-		-		0.7
		(1.0)		(3.8)		(8.2)
	Total income tax expense	10.9		12.2		25.5

The average UK corporation tax rate for the period ended 30 June 2014 was 21.5 per cent. (2013 H1: 23.25 per cent., 2013: 23.25 per cent.)

The main rate of corporation tax decreased from 23 per cent. to 21 per cent. from 1 April 2014.

A further reduction in the main rate of corporation tax from 21 per cent. to 20 per cent. from 1 April 2015 has been substantively enacted. This change has been reflected in the calculations at the balance sheet date.

1.7 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 ordinary shares outstanding during the period, less the weighted average number of own shares held. Own shares are shares held in an Employment Benefit Trust ("EBT") for the benefit of employees under the vesting, lock-in and other incentive arrangements in place.

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 the period for the purpose of basic EPS, 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.

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 2014		Six months ended 30 June 2013		Year ended 31 December 2013
			Number		Number		Number
			m		m		m
	Issued share capital		457.7		457.7		457.7
	Less: own shares held		(17.4)		(56.1)		(38.6)
	Weighted average number of ordinary shares for the purpose of basic EPS		440.3		401.6		419.1
	Add back weighted average number of dilutive shares		19.1		23.5		22.9
	Weighted average number of ordinary shares for the purpose of diluted EPS		459.4		425.1		442.0

	Earnings per share		Six months ended 30 June 2014		Six months ended 30 June 2013		Year ended 31 December 2013
			p		p		p
	Basic		8.5		11.7		21.1
	Diluted		8.2		11.0		20.0

1.8 SALE OF PRIVATE CLIENT CONTRACTS

On 1 April 2014, the Group announced that it had reached an agreement to sell its private client & charity operations to Rathbone Investment Management Limited ("Rathbones"), a subsidiary of Rathbone Brothers plc. The transaction is expected to complete towards the end of the third quarter of 2014.

Contingent asset

Consideration was communicated to be in the range of £32m - £43m dependant on the level of client assets transferring. The consideration would be received in cash in the second half of 2014.

Costs incurred

As part of the transaction, the Group has already incurred a number of costs such as legal and investment banking fees. In addition, the Group has committed to certain incentive and restructuring arrangements. We have recognised a portion of these costs in 2014 H1 to reflect the service provided by the employee in the period to which they relate.

All these costs have been included within other (losses)/gains in the consolidated income statement.

Section 2: Consolidated statement of cash flows

Consolidated statement of cash flows for the period ended 30 June 2014

			Six months ended 30 June 2014 (unaudited)		Six months ended 30 June 2013 (unaudited)		Year ended 31 December 2013 (audited and restated)
		Notes	£m		£m		£m
	Cash flows from operating activities
	Cash generated from operations	2.1	69.2		70.9		156.7
	Income tax paid		(15.1)		(16.5)		(33.3)
	Net cash inflows from operating activities		54.1		54.4		123.4
	Cash flows from investing activities
	Purchases of property, plant and equipment	3.3	(1.0)		(0.1)		(0.5)
	Purchase of intangible assets	3.2	(0.6)		(0.7)		(2.5)
	Purchase of financial assets at fair value through profit or loss ("FVTPL")		(6.6)		(2.8)		(2.8)
	Proceeds from disposal of financial assets at FVTPL		10.1		6.8		6.8
	Proceeds from disposal of available for sale investments		-		16.6		16.6
	Finance income received		0.4		0.4		0.7
	Net cash inflows from investing activities		2.3		20.2		18.3
	Cash flows from financing activities
	Dividends paid	4.3	(40.2)		(27.5)		(42.8)
	Purchase of shares by EBT		(4.9)		(0.6)		(3.8)
	Finance costs paid		(0.1)		(2.2)		(3.3)
	Proceeds from bank loan	3.6	-		-		40.0
	Repayment of bank loan	3.6	(11.0)		(36.0)		(107.0)
	Net cash outflows from financing activities		(56.2)		(66.3)		(116.9)
	Net increase in cash and cash equivalents		0.2		8.3		24.8
	Cash and cash equivalents at beginning of the period		171.8		147.0		147.0
	Cash and cash equivalents at end of period	3.5	172.0		155.3		171.8

Notes to the Group financial statements - Consolidated statement of cash flows

2.1 CASH GENERATED FROM OPERATIONS

			Six months ended 30 June 2014		Six months ended 30 June 2013		Year ended 31 December 2013
			£m		£m		(restated) £m
	Operating profit		48.1		60.7		116.2
	Adjustments for:
	Amortisation of intangible assets		18.6		19.8		39.7
	Depreciation of property, plant and equipment		0.5		0.5		0.9
	Other non-cash losses/(gains)		2.1		(8.4)		(7.7)
	Share-based payments		6.1		6.6		13.8
	Cash inflows on exercise of share options		0.1		-		0.5
	Increase in trade and other receivables		(85.7)		(33.9)		(0.8)
	Increase/(decrease) in trade and other payables		79.4		25.6		(5.9)
	Cash generated from operations		69.2		70.9		156.7

Section 3: Assets and liabilities

Consolidated balance sheet at 30 June 2014

			30 June 2014 (unaudited)		30 June 2013 (unaudited)		31 December 2013 (audited and restated)
		Notes	£m		£m		£m
	ASSETS
	NON-CURRENT ASSETS
	Goodwill	3.1	341.2		341.2		341.2
	Intangible assets	3.2	9.3		45.4		27.3
	Property, plant and equipment	3.3	1.7		1.3		1.2
	Available for sale investments	3.4	-		2.7		2.6
	Deferred tax assets	5.4	15.9		14.6		18.4
	Trade and other receivables	5.4	6.9		11.6		9.0
			375.0		416.8		399.7
	CURRENT ASSETS
	Investments in associates	3.4	33.9		15.1		15.6
	Financial assets at FVTPL	3.4	20.7		40.3		47.5
	Trade and other receivables	5.4	184.5		126.9		96.5
	Cash and cash equivalents	3.5	172.0		155.3		171.8
			411.1		337.6		331.4
	TOTAL ASSETS		786.1		754.4		731.1
	EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT
	Share capital	4.1	9.2		9.2		9.2
	Own share reserve	4.2	(0.2)		(0.5)		(0.4)
	Other reserve	4.2	8.0		8.0		8.0
	Available for sale reserve	4.2	-		0.1		-
	Foreign currency translation reserve	4.2	7.1		7.2		7.1
	Retained earnings		488.9		453.9		489.8
	TOTAL EQUITY		513.0		477.9		513.7
	LIABILITIES
	NON-CURRENT LIABILITIES
	Loans and borrowings	3.6	-		41.7		11.0
	Trade and other payables	5.4	14.1		18.7		16.8
	Deferred tax liabilities	5.4	3.9		10.0		5.6
			18.0		70.4		33.4
	CURRENT LIABILITIES
	Financial liabilities at FVTPL	3.4	5.0		8.3		14.0
	Trade and other payables	5.4	239.9		181.6		154.9
	Current income tax liability	5.4	10.2		16.2		15.1
			255.1		206.1		184.0
	TOTAL LIABILITIES		273.1		276.5		217.4
	TOTAL EQUITY AND LIABILITIES		786.1		754.4		731.1

Notes to the Group financial statements - Assets and liabilities

3.1 GOODWILL

On 19 June 2007, the Group acquired the entire share capital of Knightsbridge Asset Management Limited ("KAML"), giving rise to a goodwill asset being recognised.

			30 June 2014		30 June 2013		31 December 2013
			£m		£m		£m
	Goodwill		341.2		341.2		341.2
			341.2		341.2		341.2

The Group has determined that it is a single cash generating unit for the purpose of assessing the carrying value of goodwill. No additional goodwill was recognised in the period (2013 H1: £nil, 2013: £nil).

3.2 INTANGIBLE ASSETS

In 2007, the Group acquired the entire share capital of KAML. This acquisition gave rise to the recognition of intangible assets relating to investment management contracts and trade name of the Group.

			30 June 2014		30 June 2013		31 December 2013
			£m		£m		£m
	Investment management contracts		-		35.6		17.3
	Trade name		5.5		7.4		6.4
	Computer software		3.8		2.4		3.6
			9.3		45.4		27.3

The amortisation charge for the period was £18.6m (2013 H1: £19.8m, 2013: £39.7m). No additional investment management contracts and trade names were acquired in the period (2013 H1: £nil, 2013: £nil). As at 30 June 2014, the investment management contracts had been fully amortised.

During the period, the Group acquired software with a value of £0.6m (2013 H1: £0.7m, 2013: £2.5m).

3.3 PROPERTY, PLANT AND EQUIPMENT

The net book value of property, plant and equipment at 30 June 2014 was £1.7m (2013 H1: £1.3m, 2013: £1.2m). During the period, the Group acquired property, plant and equipment with a value of £1.0m (2013 H1: £0.1m, 2013: £0.5m).

3.4 FINANCIAL INSTRUMENTS HELD AT FAIR VALUE

Financial instruments held at fair value are carried at a value which represents the price to exit the instruments at the balance sheet date. The fair value of financial instruments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the balance sheet date. Where a quoted market price is not available, the Group establishes fair value using valuation techniques such as recent arm's length market transactions, reference to current fair value of another instrument that is substantially the same, discounted cash flow analysis or other valuation models.

The Group used the following hierarchy for determining and disclosing the fair value of financial instruments:

·      Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

·      Level 2: other techniques, for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

·      Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data (unobservable inputs).

As at 30 June 2014, the Group held the following classes of financial instruments measured at fair value:

			Level 1		Level 2		Level 3		Total
			£m		£m		£m		£m
	Available for sale investments		-		-		-		-
	Investments in associates		33.9		-		-		33.9
	Financial assets at FVTPL		20.7		-		-		20.7
	Financial liabilities at FVTPL		(5.0)		-		-		(5.0)
			49.6		-		-		49.6

As at 30 June 2013, the Group held the following classes of financial instruments measured at fair value:

			Level 1		Level 2		Level 3		Total
			£m		£m		£m		£m
	Available for sale investments		-		-		2.7		2.7
	Investments in associates		15.1		-		-		15.1
	Financial assets at FVTPL		40.3		-		-		40.3
	Financial liabilities at FVTPL		(8.2)		(0.1)		-		(8.3)
			47.2		(0.1)		2.7		49.8

3.4 FINANCIAL INSTRUMENTS HELD AT FAIR VALUE (continued)

As at 31 December 2013 (restated), the Group held the following classes of financial instruments measured at fair value:

			Level 1		Level 2		Level 3		Total
			£m		£m		£m		£m
	Available for sale investments		-		-		2.6		2.6
	Investments in associates		15.6		-		-		15.6
	Financial assets at FVTPL		47.5		-		-		47.5
	Financial liabilities at FVTPL		(14.0)		-		-		(14.0)
			49.1		-		2.6		51.7

Level 2 financial instruments

At 30 June 2013, the Level 2 financial instrument related to an interest rate swap. The Group used the swap to manage the interest rate exposure on its floating-rate loan. The fair value of the swap was determined by discounting future cash flows at the prevailing market rate at the balance sheet date. The swap was terminated during 2013 H2.

Level 3 financial instruments

Level 3 financial instruments held at fair value relate to available for sale investments. Fair value is based on internally calculated valuations of the entity, which takes into account inputs such as expected future cash flows or the net assets of the investment. Liquidity discounts are included where considered relevant.

The remaining Level 3 financial instrument held by the Group at 31 December 2013 related to an investment in Adria.  At 30 June 2014, the investment was reviewed and the Group decided an impairment had occurred and the carrying value was written down to zero. An impairment expense of £2.6m was recognised in the consolidated income statement within other (losses)/gains.

At 31 December 2012, there was also an investment in Cofunds. The carrying value of the investment at 31 December 2012 was £16.5m. In May 2013, the Group sold its investment for £16.6m, a £0.1m increase on the 31 December 2012 carrying value. This was recognised in the income statement along with £6.6m previously recognised in the available for sale reserve, which was recycled to the income statement on disposal. This resulted in a total realised gain in the income statement of £6.7m.

The table below reconciles the carrying values of Level 3 financial instruments at the beginning and end of the period.

			Adria		Cofunds		Total
			£m		£m		£m
	At 1 January 2013		2.6		16.5		19.1
	Gains/(losses) recognised in other comprehensive income		0.1		(6.6)		(6.5)
	Gains recognised in profit or loss within other (losses)/gains		-		6.7		6.7
	Disposals		-		(16.6)		(16.6)
	Balance as at 30 June 2013		2.7		-		2.7
	Losses recognised in other comprehensive income		(0.1)		-		(0.1)
	Balance as at 31 December 2013		2.6		-		2.6
	Losses recognised in profit or loss within other (losses)/gains		(2.6)		-		(2.6)
	Balance as at 30 June 2014		-		-		-

3.5 CASH AND CASH EQUIVALENTS

			30 June 2014		30 June 2013		31 December 2013 (restated)
			£m		£m		£m
	Cash at bank and in hand		104.2		91.5		88.7
	Short-term deposits		62.5		55.0		77.5
	Cash held by EBT and seed capital subsidiaries		5.3		8.8		5.6
			172.0		155.3		171.8

3.6 LOANS AND BORROWINGS

			30 June 2014		30 June 2013		31 December 2013
			£m		£m		£m
	Bank loan		-		42.0		11.0
	Unamortised debt issue costs		-		(0.3)		-
	At end of period		-		41.7		11.0

At 30 June 2013, the Group had a syndicated loan which was repayable on or before 19 June 2015. In July 2013, the outstanding loan balance of £42m was repaid. At the same time, a new three year revolving credit facility ("RCF") of £50m was entered into by Jupiter Fund Management plc, of which £40m was immediately drawn. This has since been repaid and a £nil balance remains drawn at 30 June 2014.

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

			30 June 2014		30 June 2013		31 December 2013
			£m		£m		£m
	At 1 January		11.0		77.3		77.3
	Voluntary prepayments made in the period		(11.0)		(36.0)		(107.0)
	Proceeds from new loan		-		-		40.0
	Amortisation of senior debt issue costs		-		0.4		0.7
	At end of period		-		41.7		11.0

Interest on the RCF is payable at a rate per annum of LIBOR plus a margin of 1.00 per cent. Interest was payable on the previous facility at a rate per annum of LIBOR plus a margin of 3.75 per cent. A non-utilisation fee is payable on the RCF at a rate of 0.35 per cent. per annum on the undrawn balance. A utilisation fee is also payable at a rate of 0.5 per cent. per annum when more than 66 per cent. of the facility is drawn, and 0.25 per cent. per annum when 33 per cent. to 66 per cent. of the facility is drawn. No utilisation fee is payable when less than 33 per cent. of the facility is drawn.

Section 4: Equity

Consolidated statement of changes in equity for the period ended 30 June 2014

	Share  capital	Own  share  reserve	Other   reserve	Available  for sale  reserve	Foreign  currency  translation  reserve	Retained earnings	Total
	£m	£m	£m	£m	£m	£m	£m
At 1 January 2013 (audited)	9.2	(1.3)	8.0	6.6	7.1	429.4	459.0
Profit for the period	-	-	-	-	-	46.9	46.9
Exchange movements on translation of subsidiary undertakings	-	-	-	-	0.1	-	0.1
Net change in fair value of available for sale investments reclassified to profit or loss	-	-	-	(6.5)	-	-	(6.5)
Other comprehensive (expense)/income	-	-	-	(6.5)	0.1	-	(6.4)
Total comprehensive (expense)/income	-	-	-	(6.5)	0.1	46.9	40.5
Vesting of ordinary shares and options	-	0.8	-	-	-	-	0.8
Dividends paid	-	-	-	-	-	(28.5)	(28.5)
Purchase of shares by EBT	-	-	-	-	-	(0.6)	(0.6)
Share-based payments	-	-	-	-	-	6.6	6.6
Deferred tax	-	-	-	-	-	0.1	0.1
Total transactions with owners	-	0.8	-	-	-	(22.4)	(21.6)
Balance at 30 June 2013 (unaudited)	9.2	(0.5)	8.0	0.1	7.2	453.9	477.9
Profit for the period	-	-	-	-	-	41.7	41.7
Exchange movements on translation of subsidiary undertakings	-	-	-	-	(0.1)	-	(0.1)
Net change in fair value of available for sale investments reclassified to profit or loss	-	-	-	(0.1)	-	-	(0.1)
Other comprehensive expense	-	-	-	(0.1)	(0.1)	-	(0.2)
Total comprehensive (expense)/income	-	-	-	(0.1)	(0.1)	41.7	41.5
Vesting of ordinary shares and options	-	0.1	-	-	-	0.5	0.6
Dividends paid	-	-	-	-	-	(14.3)	(14.3)
Purchase of shares by EBT	-	-	-	-	-	(3.8)	(3.8)
Share-based payments	-	-	-	-	-	7.2	7.2
Current tax	-	-	-	-	-	0.9	0.9
Deferred tax	-	-	-	-	-	3.7	3.7
Total transactions with owners	-	0.1	-	-	-	(5.8)	(5.7)
Balance at 31 December 2013 (audited)	9.2	(0.4)	8.0	-	7.1	489.8	513.7
Profit for the period	-	-	-	-	-	37.5	37.5
Exchange movements on translation of subsidiary undertakings	-	-	-	-	-	-	-
Other comprehensive expense	-	-	-	-	-	-	-
Total comprehensive (expense)/income	-	-	-	-	-	37.5	37.5
Vesting of ordinary shares and options	-	0.2	-	-	-	0.1	0.3
Dividends paid	-	-	-	-	-	(40.2)	(40.2)
Purchase of shares by EBT	-	-	-	-	-	(4.3)	(4.3)
Share-based payments	-	-	-	-	-	6.1	6.1
Current tax	-	-	-	-	-	1.7	1.7
Deferred tax	-	-	-	-	-	(1.8)	(1.8)
Total transactions with owners	-	0.2	-	-	-	(38.4)	(38.2)
Balance at 30 June 2014 (unaudited)	9.2	(0.2)	8.0	-	7.1	488.9	513.0

Notes to the Group financial statements - Equity

4.1 SHARE CAPITAL

			30 June 2014		30 June 2013		31 December 2013
			£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

4.2 RESERVES

(i) Own share reserve

At 30 June 2014, 1.6m (2013 H1: 3.5m, 2013: 3.5m) 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 shares are held within the Group's EBT and together with a further 10.5m (2013 H1: 18.7m, 2013: 17.4m) shares held for the purpose of satisfying share option obligations to employees, are treated as own shares with a cost of £0.2m (2013 H1: £0.5m, 2013: £0.4m).

(ii) Other reserve

The other reserve of £8.0m (2013 H1: £8.0m, 2013: £8.0m) relates to the conversion of Tier 2 preference shares in 2010.

(iii) Available for sale reserve

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. There was no movement during the period.

(iv) Foreign currency translation reserve

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

4.3 DIVIDENDS

On 27 May 2014, the Group paid a final dividend for 2013 of 9.1p per ordinary share. This amounted to a total payment of £40.2m after taking into account the £1.5m dividends waived on shares in the EBT.

The Board has declared an interim dividend for the period of 3.7p per ordinary share. This dividend will be paid on 29 August 2014 to ordinary shareholders on the register at close of business on 8 August 2014.

Section 5: Other notes

Notes to the Group financial statements - Other

5.1 BASIS OF PREPARATION

These condensed interim financial statements for the period ended 30 June 2014 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct 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 2013, 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 2013 were approved by the Board on 26 February 2014 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 has access to the financial resources required to run the business efficiently and a strong gross cash position. The Group's forecasts and projections, 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.

Changes in the composition of the Group

The Group is required to consolidate seed capital investments if it is deemed to control them. The following changes have been made to the consolidation of the Group since 31 December 2013:

Included in consolidation

Jupiter US Small and Midcap Companies Fund

Excluded from consolidation

Jupiter Global Fund SICAV: North American Equities

Jupiter Strategic Reserve Fund

5.2 ACCOUNTING POLICIES

The accounting policies applied are consistent with those described in the Group's annual financial statements for the year ended 31 December 2013.

The following standards were adopted with effect from 1 January 2014:

·      IFRS 10 Consolidated Financial Statements;

·      IFRS 11 Joint Arrangements

·      IFRS 12 Disclosures of Interests in Other Entities;

·      IAS 27 (revised) Separate Financial Statements;

·      IAS 28 Investments in Associates and Joint Ventures;

·      IAS 36 Impairment of Assets;

·      Amendment to IAS 32 Financial Instruments; and

·      IFRIC 21 Levies

Under IFRS 10, control exists when the Group has power over an entity, is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect these returns through its power over the entity. Subsidiaries are entities over which the Group has control. They are consolidated from the date on which control is transferred to the Group and deconsolidated from the date that control ceases. The Group has applied IFRS 10 retrospectively in accordance with the transition provisions of IFRS 10 and the financial effects of this can be seen in Note 5.3.

There has been no other material impact on the financial results but disclosures have been updated to comply with the new requirements.

5.3 RESTATEMENT OF OPENING BALANCE SHEET DUE TO THE ADOPTION OF IFRS 10

The adoption of IFRS 10 has resulted in consolidation of Jupiter Global Fund SICAV: North American Equities as at 31 December 2013, in which the Group owned 41%. It did not require consolidation at that date as the Group held less than 50% voting interest. Under IFRS 10, ownership of less than 50% of the voting interests constitutes control if it provides the Group with the practical ability to unilaterally direct the company. The period ended 30 June 2013 has not been restated as there would have been no impact from adopting IFRS 10.

The tables below show extracts for the restatements of the consolidated statement of cash flows and consolidated balance sheet as at 31 December 2013.

			As previously reported		Adjustment		As restated
			£m		£m		£m
	Consolidated statement of cash flows extract
	Cash generated from operations		155.4		1.3		156.7
	Consolidated balance sheet extract
	Assets:
	Investments in associates		19.3		(3.7)		15.6
	Financial assets at FVTPL		41.3		6.2		47.5
	Cash and cash equivalents		170.5		1.3		171.8
	Liabilities:
	Financial liabilities at FVTPL		(10.2)		(3.8)		(14.0)

5.4 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 2014		Financial assets designated at FVTPL	Loans and receivables	Financial liabilities designated at FVTPL	Other financial liabilities	Total financial instruments	Non-financial instruments	Total
		£m	£m	£m	£m	£m	£m	£m
Goodwill		-	-	-	-	-	341.2	341.2
Intangible assets		-	-	-	-	-	9.3	9.3
Property, plant and equipment		-	-	-	-	-	1.7	1.7
Deferred tax assets		-	-	-	-	-	15.9	15.9
Non-current trade and other receivables*		-	-	-	-	-	6.9	6.9
Investments in associates		33.9	-	-	-	33.9	-	33.9
Financial assets at FVTPL		20.7	-	-	-	20.7	-	20.7
Current trade and other receivables*		-	174.2	-	-	174.2	10.3	184.5
Cash and cash equivalents		-	172.0	-	-	172.0	-	172.0
Non-current trade and other payables*		-	-	-	(2.4)	(2.4)	(11.7)	(14.1)
Deferred tax liabilities		-	-	-	-	-	(3.9)	(3.9)
Current trade and other payables*		-	-	-	(212.0)	(212.0)	(27.9)	(239.9)
Current income tax liability		-	-	-	-	-	(10.2)	(10.2)
Financial liabilities at FVTPL		-	-	(5.0)	-	(5.0)	-	(5.0)
Total		54.6	346.2	(5.0)	(214.4)	181.4	331.6	513.0

As at 30 June 2013		Available for sale	Financial assets designated at FVTPL	Loans and receivables	Financial liabilities designated 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		-	-	-	-	-		-		45.4		45.4
Property, plant and equipment		-	-	-	-	-		-		1.3		1.3
Available for sale investments		2.7	-	-	-	-		2.7		-		2.7
Deferred tax assets		-	-	-	-	-		-		14.6		14.6
Non-current trade and other receivables*		-	-	-	-	-		-		11.6		11.6
Investments in associates		-	15.1	-	-	-		15.1		-		15.1
Financial assets at FVTPL		-	40.3	-	-	-		40.3		-		40.3
Current trade and other receivables*		-	-	116.4	-	-		116.4		10.5		126.9
Cash and cash equivalents		-	-	155.3	-	-		155.3		-		155.3
Loans and borrowings		-	-	-	-	(42.0)		(42.0)		0.3		(41.7)
Non-current trade and other payables*		-	-	-	-	(0.8)		(0.8)		(17.9)		(18.7)
Deferred tax liabilities		-	-	-	-	-		-		(10.0)		(10.0)
Current trade and other payables*		-	-	-	-	(151.7)		(151.7)		(29.9)		(181.6)
Current income tax liability		-	-	-	-	-		-		(16.2)		(16.2)
Financial liabilities at FVTPL		-	-	-	(8.3)	-		(8.3)		-		(8.3)
Total		2.7	55.4	271.7	(8.3)	(194.5)		127.0		350.9		477.9
As at 31 December 2013 (restated)	Available for sale		Financial assets designated at FVTPL	Loans and receivables	Financial liabilities designated 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		-	-	-	-	-	-		27.3		27.3
Property, plant and equipment		-	-	-	-	-	-		1.2		1.2
Available for sale investments		2.6	-	-	-	-	2.6		-		2.6
Deferred tax assets		-	-	-	-	-	-		18.4		18.4
Non-current trade and other receivables*		-	-	-	-	-	-		9.0		9.0
Investments in associates		-	15.6	-	-	-	15.6		-		15.6
Financial assets at FVTPL		-	47.5	-	-	-	47.5		-		47.5
Current trade and other receivables*		-	-	86.8	-	-	86.8		9.7		96.5
Cash and cash equivalents		-	-	171.8	-	-	171.8		-		171.8
Loans and borrowings		-	-	-	-	(11.0)	(11.0)		-		(11.0)
Non-current trade and other payables*		-	-	-	-	(2.0)	(2.0)		(14.8)		(16.8)
Deferred tax liabilities		-	-	-	-	-	-		(5.6)		(5.6)
Current trade and other payables*		-	-	-	-	(130.5)	(130.5)		(24.4)		(154.9)
Current income tax liability		-	-	-	-	-	-		(15.1)		(15.1)
Financial liabilities at FVTPL		-	-	-	(14.0)	-	(14.0)		-		(14.0)
Total		2.6	63.1	258.6	(14.0)	(143.5)	166.8''		346.9		513.7

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

There are no significant differences between fair value and the carrying value at the balance sheet dates.

5.5 RELATED PARTY TRANSACTIONS

During 2014 H1, T. A. Associates L.P. sold their remaining 10.6% stake in the Group.

All other related party transactions during the period are consistent with those disclosed in the Annual Report & Accounts for the year ended 31 December 2013 and have taken place under normal market conditions. No new related parties or related party transactions that materially affect the financial position or performance of the Group existed during the period, other than as described above.

5.6 PRINCIPAL RISKS AND MITIGATIONS

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 2014 are substantially the same as those outlined in the Annual Report & Accounts for the year ended 31 December 2013, being:

Investment outperformance

·      Sustained under performance: There is a risk that our clients will not meet their investment objectives due to weaknesses in the financial markets or from poor performance.

·      Failure to retain key staff: We are a human capital business and our staff are a significant component of successfully executing our strategy.

·      Significant mandate breach: Our funds are managed in accordance with investment mandates and restrictions agreed with our clients. Failure to adhere to these mandates would reflect a poor level of client service and may jeopardise relationships with our clients.

Effective distribution

·      Regulatory non-compliance: A significant regulatory investigation or action against the Group could have a detrimental effect on our reputation and business.

·      Distribution and product trends: The risks reflect potential future changes in our fee structures, in the terms we are able to agree with third party distributors, or in the appetite of clients to invest in our products.

Efficient operations

·      Operational error or fraud: A material error in the execution of a key business process, or a fraud being successfully carried out against us or our clients.

·      Failure of third party supplier: The failure of a provider on which we rely for the provision of key business processing activities may lead to our failing to deliver the required level of service to our clients or shareholders or fulfilling our regulatory obligations.

·      Business continuity incident: Business operations, systems and processes are liable to disruption from fire, power loss, systems failure or external events.

·      Counterparty failure: The failure of a trading or depositary counterparty with which we have a relationship.

In addition, at 30 June 2014 we have identified the following:

Corporate activity

·      Non-completion of Private Client transaction: Significant time and resources would have been spent on a failed transaction, plus retention of the contracts would distract from our focus on growing our core mutual fund franchise.

Section 6: Directors' responsibility statement

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', as adopted by the European Union, and gives a true and fair view of the assets, liabilities, financial position and profit of the Group for the period ended 30 June 2014.

·      the interim 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 & Accounts 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.

·      the Directors of Jupiter Fund Management plc are listed in the Annual Report & Accounts for the year ended 31 December 2013. On 21 May 2014, Michael Wilson resigned from the Board and on 1 July 2014, Jonathon Bond was appointed as a non-executive Director.  A list of current Directors is maintained on the website: www.jupiteronline.com

On behalf of the Board

Philip Johnson

Chief Financial Officer

29 July 2014

Independent review report to Jupiter Fund Management plc

Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed the condensed consolidated interim financial statements, defined below, in the Interim Report and Accounts of Jupiter Fund Management Plc for the six months ended 30 June 2014. Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements 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 Conduct Authority.

This conclusion is to be read in the context of what we say in the remainder of this report.

What we have reviewed

The condensed consolidated interim financial statements, which are prepared by Jupiter Fund Management Plc, comprise:

·      the consolidated balance sheet as at 30 June 2014;

·      the consolidated income statement and consolidated statement of comprehensive income for the period then ended;

·      the consolidated statement of cash flows for the period then ended;

·      the consolidated statement of changes in equity for the period then ended; and

·      the explanatory notes to the condensed consolidated interim financial statements.

As disclosed in note 5.1, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

The condensed consolidated interim financial statements included in the Interim Report and Accounts have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

What a review of condensed consolidated financial statements involves

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.

We have read the other information contained in the Interim Report and Accounts and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial statements.

Responsibilities for the condensed consolidated interim financial statements and the review

Our responsibilities and those of the Directors

The Interim Report and Accounts, including the condensed consolidated interim financial statements, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report & Accounts in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express to the Company a conclusion on the condensed interim financial statements in the Interim Report and Accounts based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, 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.

PricewaterhouseCoopers LLP

Chartered Accountants

London

29 July 2014

Notes

(a)    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.

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

 

END

 

 

IR LLFIADVIAFIS