Interim Management Statement

RNS Number : 9383T
Jupiter Fund Management PLC
10 October 2014
 



            

Jupiter Fund Management plc

 

Q3 Interim Management Statement

 

Interim Management Statement

 

10 October 2014

 

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

 

HIGHLIGHTS

 

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

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

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

 

Maarten Slendebroek, Chief Executive, commented:

 

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

 

ASSETS UNDER MANAGEMENT AND FLOWS

 

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

 

 

 

 

 

 

 

 

 

 

 

30 June 2014

£m

Q3 net flows

£m

Market movement

£m

Private client transaction

£m

30 September       2014

£m

 


Mutual funds

25,761

231

(79)

474

26,387



Segregated mandates

4,197

(12)

(61)

126

4,250



Private clients

2,241

-

-

(2,176)

65



Investment trusts

906

(1)

(15)

66

956



Total

33,105

218

(155)

(1,510)

31,658










 

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

 

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

 

PROCEEDS FROM THE SALE OF PRIVATE CLIENT OPERATIONS

 

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

 

CORPORATE UPDATE

 

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

 

OUTLOOK

 

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

 

 

 

 

 

 

 

For further information please contact:


Investors

Media



Jupiter

Philip Johnson

+44 (0)20 7314 4807

Despina Constantinides

+44 (0)20 7314 4981

 

 

 


FTI Consulting

Laura Ewart

+44 (0)20 3727 1160

Andrew Walton

+44 (0)20 3727 1514


 

 

Forward-looking statements

 

This announcement contains forward-looking statements with respect to the financial condition, results and business of the Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. Jupiter's actual results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

 

 

3

Historic flow and AUM data by quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

Flows and AUM by quarter









 

 

 

 

Q1 2013

£m

Q2 2013

£m

Q3 2013

£m

Q4 2013

£m

Q1 2014

£m

Q2 2014

£m

Q3 2014

£m

Q4 2014

£m

 


Total

 

 

 

 

 

 

 

 



Opening AUM

26,268

29,138

29,045

29,889

31,659

32,211

33,105


 


Gross inflows

1,726

1,729

1,618

1,782

2,320

2,543

2,239


 


Gross outflows

(1,517)

(1,520)

(1,347)

(1,272)

(1,773)

(1,822)

(2,021)


 


Net Flows

209

209

271

510

547

721

218


 


Market / FX movements

2,661

(302)

573

1,260

5

173

(155)


 


Private client transaction

n/a

n/a

n/a

n/a

n/a

n/a

(1,510)


 


Closing AUM

29,138

29,045

29,889

31,659

32,211

33,105

31,658


 


 


 




 

 


 


Mutual funds


 




 

 


 


Opening AUM

20,572

22,885

22,730

23,336

24,760

25,195

25,761


 


Gross inflows

1,572

1,493

1,535

1,627

1,970

2,095

2,069


 


Gross outflows

(1,325)

(1,314)

(1,257)

(1,169)

(1,505)

(1,685)

(1,838)


 


Net Flows

247

179

278

458

465

410

231


 


Market / FX movements

2,066

(334)

328

966

(30)

156

(79)


 


Private client transaction

n/a

n/a

n/a

n/a

n/a

n/a

474


 


Closing AUM

22,885

22,730

23,336

24,760

25,195

25,761

26,387


 




 




 

 


 


Segregated mandates


 




 

 


 


Opening AUM

3,207

3,531

3,526

3,635

3,911

3,834

4,197


 


Gross inflows

93

67

24

95

130

410

170


 


Gross outflows

(149)

(167)

(52)

(40)

(216)

(84)

(182)


 


Net Flows

(56)

(100)

(28)

55

(86)

326

(12)


 


Market / FX movements

380

95

137

221

9

37

(61)


 


Private client transaction

n/a

n/a

n/a

n/a

n/a

n/a

126


 


Closing AUM

3,531

3,526

3,635

3,911

3,834

4,197

4,250


 




 




 

 


 


Private clients


 




 

 


 


Opening AUM

1,888

2,059

2,130

2,224

2,266

2,280

2,241


 


Gross inflows

51

160

50

50

59

36

-


 


Gross outflows

(42)

(39)

(35)

(60)

(50)

(50)

-


 


Net Flows

9

121

15

(10)

9

(14)


 


Market / FX movements

162

(50)

79

52

5

(25)

-


 


Private client transaction

n/a

n/a

n/a

n/a

n/a

n/a

(2,176)


 


Closing AUM

2,059

2,130

2,224

2,266

2,280

2,241

65


 




 




 

 


 


Investment trusts


 




 

 


 


Opening AUM

601

663

659

694

722

902

906


 


Gross inflows

10

9

9

10

161

2

0


 


Gross outflows

(1)

0

(3)

(3)

(2)

(3)

(1)


 


Net Flows

9

9

6

7

159

(1)

(1)


 


Market / FX movements

53

(13)

29

21

21

5

(15)


 


Private client transaction

n/a

n/a

n/a

n/a

n/a

n/a

66


 


Closing AUM

663

659

694

722

902

906

956


 


 

 

 

 

 

 

 

 

 


 

 

 


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