Trading Update

RNS Number : 9558T
Jupiter Fund Management PLC
12 January 2017
 

 

Jupiter Fund Management plc

Trading Update and Notice of Results

 

Trading Update and Notice of Results

 

12 January 2017

 

Jupiter Fund Management plc ("Jupiter", the "Group") today issues its trading update in respect of the three months to 31 December 2016.

 

HIGHLIGHTS

 

§ Cumulative net mutual fund inflows of £859m in the year to 31 December 2016, resulting in total AUM of £40.5bn (31 December 2015: £35.7bn).

§ Overall net outflows for the quarter of £373m, of which net mutual fund outflows were £355m.

 

 

Maarten Slendebroek, Chief Executive, commented:

 

"Overall, 2016 was positive for Jupiter. We continued to diversify our business by product, client type and geography and delivered strong investment performance after fees across a broad range of strategies. Net mutual fund flows for the year were positive at £0.9bn although in the fourth quarter we experienced net outflows of £0.4bn, including the repositioning of a large institutional client's mandate. The effects on Jupiter of wider market uncertainty during the year were muted, with positive flows contributing to a year on year increase in total AUM of 13%."

 

ASSETS UNDER MANAGEMENT AND FLOWS

 

 

 

 

 

 

 

 

 

 

30 September

 2016

£m

          Q4 net flows

                         £m

Market/FX movement

£m

31 December

 2016

£m

 


Mutual funds

35,153

                      (355)

                     418

35,216



Segregated mandates

4,136

                       (13)

                      121

4,244



Investment trusts

1,067

                         (5)  

                        21

1,083



Total

40,356

                     (373)

                     560

40,543









 

Total AUM increased across the quarter as a result of market gains and investment performance more than offsetting net outflows.

 

Net mutual fund outflows were £355m during the fourth quarter, driven by institutional clients rebalancing their holdings in our Merlin and European strategies. Inflows to our Absolute Return and Fixed Income strategies remained strong and we saw promising inflows into our Emerging Markets strategy. Market gains in the quarter marginally offset net flows as global indices ended at or near record highs. For the year overall, the combination of net inflows and investment performance, as well as currency effects, led to mutual fund AUM increasing to £35.2bn as at 31 December 2016, an increase of 13%.

 

NOTICE OF RESULTS

 

Jupiter will be issuing its audited results for the period ended 31 December 2016 on 24 February 2017 and will host an analyst presentation to discuss the results at 9:00am. The presentation will be held at The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ.

 

SUMMARY & OUTLOOK

 

2016 has been another positive year for Jupiter. Continued delivery of strong investment outperformance after all fees and net inflows, against a backdrop of market volatility and a variety of macro geopolitical events, affirm the confidence we have in our strategy of diversification by product and client type into areas offering potential for long-term growth.

 

We expect the current state of global political and economic uncertainty to continue to affect investor sentiment in 2017. We believe in the resilience of our business model, arising from our continued diversification supported by a strong and sustainable balance sheet. We will continue to invest in our operating model and focus on responding to regulatory change, leaving us well-placed to progress and to continue sharing the rewards of growth with our stakeholders.

 

 

For further information please contact:


Investors

Media

 

 

Jupiter

Alex Sargent/Charlotte Jones

+44 (0)20 3817 1534/1519

Alicia Wyllie

+44 (0)20 3817 1638

 

 

 

 

FTI Consulting

Tom Blackwell

+44 (0)20 3727 1051

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 2015

£m

Q2 2015

£m

Q3 2015

£m

Q4 2015

£m

Q1 2016

£m

Q2 2016

£m

Q3 2016

£m

Q4 2016

£m

 


Total

 

 

 

 

 

 

 

 



Opening AUM

31,895

34,761

34,332

33,525

35,674

36,181

37,023

40,356

 


Gross inflows

2,949

2,523

2,126

2,161

2,798

2,290

2,911

2,603

 


Gross outflows

(2,077)

(2,025)

(2,049)

(1,665)

(2,075)

(2,382)

(2,122)

(2,976)

 


Net flows

872

498

77

496

             723

(92)

789

(373)

 


Market / FX movements

1,994

(927)

(884)

1,653

(216)

934

2,544

560

 


Closing AUM

34,761

34,332

33,525

35,674

36,181

37,023

40,356

40,543

 


 









 


Mutual funds


 

 




 


 


Opening AUM

27,544

30,133

29,738

29,215

31,170

31,418

32,268

35,153

 


Gross inflows

2,747

2,432

2,031

2,077

2,473

2,241

2,769

2,527

 


Gross outflows

(1,864)

(1,961)

(1,835)

(1,527)

(2,030)

(2,237)

(2,002)

(2,882)

 


Net flows

883

471

196

549

443

4

767

(355)

 


Market / FX movements

1,706

(866)

(719)

1,406

(195)

846

2,118

418

 


Closing AUM

30,133

29,738

29,215

31,170

31,418

32,268

35,153

35,216

 


 









 


Segregated mandates









 


Opening AUM

3,558

3,749

3,737

3,409

3,527

3,775

3,754

4,136

 


Gross inflows

175

65

69

75

314

48

142

76

 


Gross outflows

(207)

(64)

(211)

(132)

(40)

(133)

(111)

(89)

 


Net flows

(32)

1

(142)

(57)

274

(85)

31

(13)

 


Market / FX movements

223

(13)

(186)

175

(26)

64

351

121

 


Closing AUM

3,749

3,737

3,409

3,527

3,775

3,754

4,136

4,244

 











 


Investment trusts









 


Opening AUM

793

879

857

901

977

988

1,001

1,067

 


Gross inflows

26

26

25

9

11

1

                 -

-

 


Gross outflows

(5)

-

(2)

(5)

(5)

(12)

(9)

(5)

 


Net flows

21

26

23

4

6

(11)

(9)

(5)

 


Market / FX movements

65

(48)

21

72

5

24

75

21

 


Closing AUM

879

857

901

977

988

1,001

1,067

1,083

 


 









 

 


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