Half Year Results

RNS Number : 3655U

Jupiter Fund Management PLC

29 July 2015

 

Jupiter Fund Management plc

Interim Report and Accounts

Highlights

29 July 2015

·      Continued organic flow growth from our core mutual fund franchise, with net mutual fund inflows of £1.4bn

·      Assets under management increased to £34.3bn 

·      Maintained EBITDA margins above 50 per cent. while investing for growth

·      Underlying earnings per share increased by 16 per cent. to 14.9p

·      Interim dividend increased to 4.0p

			Six months ended 30 June 2015 (unaudited)	Six months ended 30 June 2014 (unaudited)	Year ended 31 December 2014
	Assets under management (£bn)		34.3	33.1	31.9
	Net inflows (£bn)		1.4	1.3	0.9
	EBITDA1 (£m)		86.8	76.3	155.6
	EBITDA margin2 (per cent.)		51	51	51
	Profit before tax (£m)		84.0	48.4	160.0
	Underlying earnings per share2 (p)		14.9	12.9	26.4
	Interim dividend per share (p)		4.0	3.7	3.7
	Total dividend per share (p)		-	-	24.7

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:

"The first half of 2015 has seen continued strong delivery on behalf of all our stakeholders, validating our strategy to focus on investment outperformance, organic net flow growth and a scalable business model. We have seen encouraging progress with our conscious diversification by product, client type and geography and made key hires in our investment, distribution and support functions which contribute to our ability to achieve further scalable growth in periods to come."

Analyst presentation

There will be an analyst presentation at 9.00am on 29 July 2015.

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/3368986bdc-8779-intro

The Interim Report will be available at www.jupiteram.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

The first half of 2015 has seen continued strong delivery on behalf of all our stakeholders, validating our strategy to focus on investment outperformance, organic net flow growth and a scalable business model.

Delivering investment outperformance after all fees to our clients is at the heart of our culture. At the end of June 2015, 58 per cent. of our assets were above median over the past three years, seen as the key period by distributors for assessing performance. This is an improvement from the position as at December 2014 due to continued strong numbers in top-performing strategies such as European equities, and better outcomes from previously weaker areas. This gives us a wide variety of products to sell today whilst we bring further opportunities on-stream.

Turning performance into flows is integral to our long-term growth. The first half of 2015 has seen strong delivery here, with net mutual fund flows of £1.4 bn. Over the past few years, Jupiter has been building out its international distribution by establishing a presence in countries where our key global clients are also represented. The successful penetration of these international networks has allowed us to establish a physical presence and then add a series of local arrangements. This build-out has expanded the number of active distribution agreements and increased the number of daily deals. As a result, we were well placed to raise assets in our top-performing flexible fixed income and European equity strategies, which proved particularly attractive in the first half of 2015. This significant increase in flows resulted in the SICAV representing half of mutual fund assets raised and the majority of our net flow growth.

We believe there are significant opportunities in retail mutual funds for high-alpha active managers such as ourselves. Our chosen markets offer attractive long-term growth dynamics and we continue to enhance our investment offering in areas where we believe there is the potential to add value via investment performance in sectors with accessible scale. For example, we recruited an Asian Income manager in May, launched the Global Emerging Markets Unconstrained SICAV in March and are developing plans for our first targeted income fund later this year. These are important steps along the journey of transforming our product range from one primarily designed around our UK client base to one that offers a variety of attractive options to our increasingly international distribution partners.

The combination of supportive market conditions, positive net flows, good performance and our scalable business model delivered attractive profit growth this period. Net revenues of £169m (H1 14: £149m) were up 14 per cent.; EBITDA of £87m (2014 H1: £76m) was up 14 per cent.; operating margins were maintained at 51 per cent. and underlying EPS increased by 16 per cent. to 14.9 pence per share (2014 H1: 12.9p). These results benefited from an exceptional performance fee, and the Board has chosen to increase the interim dividend by 8 per cent. to 4.0 pence per share, reflecting earnings before this impact. Looking forward, we will continue to invest in growing our business whilst looking to deliver attractive drop-through earning rates to shareholders over time.

This has been a period of strong delivery at Jupiter across all our key metrics. We believe our growth strategy and chosen markets have further room for expansion over time. We intend to access these opportunities in the same disciplined manner as we have over the past five years, choosing to grow organically in those areas where we have a high degree of confidence in our eventual success, whilst ensuring we always maintain the quality of our investment franchise.

Maarten Slendebroek

Chief Executive Officer

Business review

Assets under management ("AUM") and flows

	Movement in AUM by product across the period
		31 December 2014 £m	Q1 net flows £m	Q2 net flows £m	Market movement £m	30 June 2015 £m
	Mutual funds	27,544	883	471	840	29,738
	Segregated mandates	3,558	(32)	1	210	3,737
	Investment trusts	793	21	26	17	857
	Total	31,895	872	498	1,067	34,332

AUM increased to £34.3bn as at 30 June 2015 (31 December 2014: £31.9bn), representing an eight per cent. increase due to net inflows and continued investment outperformance.

We maintained healthy organic flow growth from our core mutual fund franchise, with year to date net mutual fund inflows of £1,354m. The strongest contributions were from our fixed income and European ranges, with the majority of net flows coming from our growing international distribution capabilities. These drivers were consistent across the two quarters, although external market conditions became less favourable towards the end of the period.

Investment performance

At 30 June 2015, 24 mutual funds, representing approximately 58 per cent. of mutual funds by AUM, delivered first and second quartile investment performance over  the key three year investment period (31 December 2014: 25 mutual funds representing 51 per cent. of mutual fund AUM). This improvement is due to continued strong numbers in top-performing strategies such as European equities, and better outcomes from previously weaker areas. Over one year, 23 mutual funds representing approximately 47 per cent. of mutual funds by AUM, delivered first and second quartile investment performance (31 December 2014: 20 mutual funds representing approximately 46 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 2015 £m		Six months ended 30 June 2014 £m		Year ended 31 December 2014 £m
Net management fees	149.2		141.0		285.0
Net initial charge	7.4		6.8		13.1
Performance fees	12.8		0.7		4.9
Total	169.4		148.5		303.0

Net revenue for the period was £169.4m (2014 H1: £148.5m), a 14 per cent. increase on 2014 H1. Net management fees remain the main component of net revenue (2015 H1: 88 per cent., 2014 H1: 95 per cent.), although this proportion was lower in 2015 H1 due to a significant performance fee which crystallised in the period.

	Six months ended 30 June 2015		Six months ended 30 June 2014		Year ended 31 December 2014
Net management fees (£m)	149.2		141.0		285.0
Average AUM (£bn)	34.1		32.3		32.3
Net management fee margin (bps)	88		87		88

Net management fees increased to £149.2m (2014 H1: £141.0m), as healthy underlying organic flow growth and market increases at the start of the year boosted AUM levels. This growth is despite the elimination of the contribution from private clients following its disposal in 2014 H2.

The Group's net management fee margin for the period was 88 basis points, in line with the prior year. This progression was distorted by the loss of lower margin assets, the closure of several sub-economic funds and the effect of the private client transaction in 2014 H2. Looking through these factors, net management fees came down in line with expectations from their normalised level of 90 basis points across last year. We continue to expect net management fee margins to decline slowly over time, due to the continued expansion of both our international presence and the fixed income component of our AUM. However, given the uncertainties inherent in these factors, the rate and angle of any such decline remains uncertain.

Net initial charges of £7.4m (2014 H1: £6.8m) increased due to a more favourable pattern of sales versus redemption activity across individual funds, partially offset by the continued expected reduction in net amortised front end fees and the loss of private client dealing commissions.

Performance fees of £12.8m (2014 H1: £0.7m) crystallised in the period, nearly all earned by exceptional performance on a single fund. The nature of performance fees and the low amount of AUM with performance fee potential means it is unlikely that these levels will be repeated in future periods. 

Administrative expenses

	Six months ended 30 June 2015 £m		Six months ended 30 June 2014 £m		Year ended 31 December 2014 £m
Fixed staff costs	21.3		23.5		46.3
Other expenses	24.3		23.8		49.1
Total fixed costs	45.6		47.3		95.4
Variable staff costs	37.5		25.4		53.1
Underlying administrative expenses	83.1		72.7		148.5
Charge for options over pre-Listing shares	0.4		0.6		0.7
Total administrative expenses	83.5		73.3		149.2

Underlying administrative expenses of £83.1m (2014 H1: £72.7m) were £10.4m higher than 2014 H1 as a result of increased variable staff costs, partially offset by a reduction in fixed costs. Total fixed costs of £45.6m (2014 H1: £47.3m) fell four per cent. primarily due to the sale of the private clients contracts in 2014 H2.

Fixed staff costs of £21.3m (2014 H1: £23.5m) were nine per cent. lower than 2014 H1 due to a reduction in headcount following the sale of the private client contracts in 2014 H2. Other expenses rose as we reinvested savings from the private client sale to hire front office talent, improve our organisational scalability and increase our international distribution capabilities. This reinvestment will continue through 2015 H2 in our usual focused and disciplined manner, taking account of business progress and market conditions at the time.

As communicated in our 2014 Annual Report and Accounts, we are planning a move of the London office from our current premises to the Zig Zag building in Victoria, London. We have recently signed a 20-year lease for 56,000 square feet and took possession of the building at the end of 2015 H1. It is currently being fitted out and we expect to move around the turn of the year. The rest of 2015 will therefore see double occupancy and move costs, raising the 2015 H1 other expense run rate by about £4m, before 2016 occupancy costs settle down into a steady increase of £5m per annum over the 2014 equivalent, spread more evenly across the year.

	Six months ended 30 June 2015 £m		Six months ended 30 June 2014 £m		Year ended 31 December 2014 £m
Cash bonus	26.3		16.9		36.2
Deferred bonus	5.6		4.5		8.9
LTIP and SAYE	5.6		4.0		8.0
Variable staff costs	37.5		25.4		53.1
Variable compensation ratio1	30%		25%		26%

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

Cash bonus costs of £26.3m (2014 H1: £16.9m) increased by 56 per cent. due to increased profitability and the higher variable compensation share directly linked to the exceptional performance fee. Deferred bonus and LTIP charges rose as increased profits over time have led to new grants being larger than vested grants rolling off and the increase in the Jupiter share price over the period resulted in an increased accrual for associated Employer's National Insurance.

Variable compensation as a proportion of pre-variable compensation operating earnings rose to 30 per cent. (2014 H1: 25 per cent.) due to the distortion from the large performance fee. This ratio excludes £0.4m of charge (2014 H1: £0.6m) 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. Excluding the performance fee impact, the ratio would have been 27 per cent.

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 over the past three years, we would expect the variable compensation ratio to remain at the mid to lower end of our range.

EBITDA

EBITDA was £86.8m for the period (2014 H1: £76.3m), up 14 per cent., as higher net management and performance fees were partially offset by an increase in variable staff costs and a small reduction in profits following the sale of our private clients contracts. 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

Amortisation of £1.6m (2014 H1: £18.6m) reduced significantly after the completion of amortisation on the investment management contracts in June 2014. The Jupiter brand name continues to be amortised on a straight line basis through to June 2017.

The prior period included a £2.6m loss, as the Group wrote down its available for sale ("AFS") investment in iO Adria Limited to nil. In 2014 H1, this loss was included within the other (losses)/gains line on the income statement. This line also contained £5.3m of costs incurred on the private clients transaction, recognised in 2014 H1 ahead of the associated sale proceeds which came in during 2014 H2.

Profit before tax

Profit before tax for the period increased to £84.0m (2014 H1: £48.4m). This increase of 74 per cent. was due to increased operating profits and the reduction in adjusting items recognised in 2014 H1, in particular amortisation on the intangible assets following the unwinding of the investment management contracts and costs associated with the private client transaction.

Tax

The effective tax rate was 20.1 per cent. (2014 H1: 22.5 per cent., 2014: 21.4 per cent.) against a headline corporation tax rate of 20.25 per cent. (2014 H1: 21.5 per cent., 2014: 21.5 per cent.).

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.

Underlying EPS was 16 per cent. ahead of 2014 H1 at 14.9p (2014 H1: 12.9p), reflective of the Group's improved trading performance and the lower statutory tax rate.

	Six months ended 30 June 2015 £m		Six months ended 30 June 2014 £m		Year ended 31 December 2014 £m
Profit before tax	84.0		48.4		160.0
Adjustments:
Amortisation of acquired trade name (and investment management contracts)	0.9		18.2		19.2
Charge for options over pre-Listing shares	0.4		0.6		0.7
Directly attributable costs from private clients transaction	-		5.3		(28.5)
Loss taken to the income statement on available for sale investments	-		2.6		2.6
Underlying profit before tax	85.3		75.1		154.0
Tax at weighted average statutory rate of 20.25 per cent.	(17.3)		(16.1)		(33.1)
(2014 H1: 21.5 per cent., 2014: 21.5 per cent.)
Underlying profit after tax	68.0		59.0		120.9
Issued share capital (m)	457.7		457.7		457.7
Underlying EPS	14.9p		12.9p		26.4p
Basic EPS	14.9p		8.5p		28.4p
Diluted EPS	14.5p		8.2p		27.2p

The Group's basic and diluted EPS were 14.9p and 14.5p respectively.

CASH FLOW

The Group generated positive operating cash flows after tax in 2015 H1 of £57.7m (2014 H1: £54.1m). £3.4m was generated on the net redemption of seed capital investments, the final and special dividend payment was £94.0m and £7.5m of shares were purchased by the EBT to avoid future dilution from compensation schemes.

ASSETS AND LIABILITIES

Balance sheet

The Group's net cash position fell to £209.7m (31 December 2014: £251.0m), as cash generated through trading was offset by the payment of the 2014 compensation round and the final and special dividend. As outlined in the Equity and Capital Management section, it remains our intention to return a high proportion of surplus cash to shareholders as it arises.

Following full repayment of outstanding debt in 2014, the Group still retains a revolving credit facility which extends to July 2016. We intend 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.

Seed capital investments

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 2015, we had a total investment of £37.4m in our own funds (31 December 2014: £43.4m). This excludes £7.9m of investments in our own funds to hedge our obligation to settle amounts payable to employees in relation to Deferred Bonus Plan awards. These investments are shown on the Group's balance sheet under the appropriate heading for the relevant level of ownership in each fund. The Group only invests in liquid funds and chooses to hedge market and currency risk on the majority of its holdings of seed capital investments, with 99 per cent. of seed capital either hedged or invested in absolute return products. As a result, the value of these investments is stable and available to improve the Group's cash balances and liquidity if required.

EQUITY AND CAPITAL MANAGEMENT

Total shareholders' equity decreased by £25.3m to £560.9m, as the continued profitability of the Group was offset by the payment of the 2014 final and special dividends of £94.0m.

The Group had a three year investment firm consolidation waiver which expired in June 2015, and which it had traded out of the need for in 2013. Post expiry of the waiver, the Group continues to have a comfortable surplus over regulatory requirements.

Dividends

During 2014, the Group completed its post-Listing deleverage process and the Board determined that Jupiter had adequate buffers over its capital and liquidity requirements. It therefore clarified how it expected to return excess cash from this point forward. Jupiter has a progressive ordinary dividend policy, and our intention is for the ordinary dividend payout ratio to be around 50 per cent. across the cycle. The Board then expects to retain up to 10 per cent. of pre-variable compensation earnings for investment and growth, for example to fund the new London office fit-out. The remaining balance, after taking account of any specific events, will be returned to shareholders. In current market conditions, shareholders have indicated that their preferred method of capital return is a special dividend. It remains the Board's intention to operate the same approach for 2015.

The Board considers the dividend on a total basis, whilst looking to maintain an appropriate balance between interim and final dividends.  Reflecting its confidence in our prospects and our long term approach to running the business, the Board has declared an increased interim dividend of 4.0p (2014 H1: 3.7p). The increase is in line with profits growth before the one-off performance fee and directly associated costs. The Board considers these as non-recurring earnings and is likely to roll them into the year end special dividend considerations. This treatment is consistent with our approach to the net private client sale proceeds in 2014.

Financial statements

Section 1: Results for the period

Consolidated income statement for the period ended 30 June 2015

			Six months ended 30 June 2015  (unaudited)		Six months ended 30 June 2014 (unaudited)		Year ended 31 December 2014 (audited)
		Notes	£m		£m		£m
	Revenue		207.2		192.8		388.3
	Fee and commission expenses		(37.8)		(44.3)		(85.3)
	Net revenue	1.1	169.4		148.5		303.0
	Administrative expenses		(83.5)		(73.3)		(149.2)
	Operating earnings	1.3	85.9		75.2		153.8
	Other (losses)/gains including sale of private client contracts	1.4	(0.5)		(8.5)		26.1
	Amortisation of intangible assets	3.2	(1.6)		(18.6)		(20.2)
	Operating profit		83.8		48.1		159.7
	Finance income		0.3		0.4		0.5
	Finance costs	1.5	(0.1)		(0.1)		(0.2)
	Profit before taxation		84.0		48.4		160.0
	Income tax expense	1.6	(16.9)		(10.9)		(34.2)
	Profit for the period		67.1		37.5		125.8
	Earnings per share
	Basic	1.7	14.9p		8.5p		28.4p
	Diluted	1.7	14.5p		8.2p		27.2p

Consolidated statement of comprehensive income for the period ended 30 June 2015

			Six months ended 30 June 2015 (unaudited)		Six months ended 30 June 2014 (unaudited)		Year ended 31 December 2014 (audited)
		Notes	£m		£m		£m
	Profit for the period		67.1		37.5		125.8
	Items that may be reclassified subsequently to profit or loss
	Exchange movements on translation of subsidiary undertakings		-		-		0.1
	Other comprehensive expense for the period net of tax		-		-		0.1
	Total comprehensive income for the period net of tax		67.1		37.5		125.9

Notes to the Group financial statements - Income statement

INTRODUCTION

Jupiter Fund Management plc (the "Company") 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 and other specialist funds. The Group has offices in the United Kingdom, Germany, Singapore, Hong Kong, Switzerland, Austria and Sweden.

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 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 2015		Six months ended 30 June 2014		Year ended 31 December 2014
		£m		£m		£m
	Management fees	184.6		182.4		364.7
	Initial charges and commissions	9.8		9.7		18.7
	Performance fees	12.8		0.7		4.9
	Fee and commission expenses	(37.8)		(44.3)		(85.3)
	Total net revenue	169.4		148.5		303.0

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, and amortisation of intangible assets. 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 (INCLUDING SALE OF PRIVATE CLIENT CONTRACTS)

		Six months ended 30 June 2015		Six months ended 30 June 2014		Year ended 31 December 2014
		£m		£m		£m
	(Loss)/gain on sale of private client contracts	-		(5.3)		28.5
	(Loss)/gain on available for sale ("AFS") investments	-		(2.6)		(2.6)
	Dividend income	-		-		0.3
	Other	(0.5)		(0.6)		(0.1)
	Total other (losses)/gains	(0.5)		(8.5)		26.1

On 1 April 2014, the Group announced that it had reached an agreement to sell its private client contracts to Rathbone Investment Management Limited ("Rathbones"), a subsidiary of Rathbone Brothers plc. The transaction completed in 2014 H2.

1.5 FINANCE COSTS

		Six months ended 30 June 2015		Six months ended 30 June 2014		Year ended 31 December 2014
		£m		£m		£m
	Other finance costs	0.1		0.1		0.2
	Total finance costs	0.1		0.1		0.2

The majority of the finance costs are associated with the Revolving Credit Facility ("RCF") of £50m. At 1 January 2014, the drawn amount of the RCF was £11m. This was repaid in H1 2014 and the RCF has remained undrawn since that time.

Interest on the RCF is payable at a rate per annum of LIBOR plus a margin of 1.00 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 on the drawn balance 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.

1.6 INCOME TAX EXPENSE

Analysis of charge in the period:

		Six months ended 30 June 2015		Six months ended 30 June 2014		Year ended 31 December 2014
		£m		£m		£m
	Current taxation - UK corporation tax
	Tax on profits for the period	17.4		11.9		35.6
	Adjustment in respect of prior periods	-		-		-
		17.4		11.9		35.6
	Deferred taxation
	Origination and reversal of temporary differences	(0.5)		(1.0)		(1.7)
	Impact of changes in corporation tax rate	-		-		0.3
		(0.5)		(1.0)		(1.4)
	Total income tax expense	16.9		10.9		34.2

With effect from 1 April 2015, the UK corporation tax rate changed from 21 per cent. to 20 per cent. The weighted average UK corporation tax rate for the period ended 30 June 2015 was therefore 20.25 per cent. (2014 H1: 21.5 per cent., 2014: 21.5 per cent.)

A number of other changes to the UK corporation tax system were announced in 2015, but have not been substantively enacted. Therefore these changes have not 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 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 2015		Six months ended 30 June 2014		Year ended 31 December 2014
			Number		Number		Number
			m		m		m
	Issued share capital		457.7		457.7		457.7
	Less: own shares held		(8.7)		(17.4)		(14.1)
	Weighted average number of ordinary shares for the purpose of basic EPS		449.0		440.3		443.6
	Add back weighted average number of dilutive shares		13.6		19.1		19.5
	Weighted average number of ordinary shares for the purpose of diluted EPS		462.6		459.4		463.1

	Earnings per share		Six months ended 30 June 2015		Six months ended 30 June 2014		Year ended 31 December 2013
			p		p		p
	Basic		14.9		8.5		28.4
	Diluted		14.5		8.2		27.2

Section 2: Consolidated statement of cash flows

Consolidated statement of cash flows for the period ended 30 June 2015

			Six months ended 30 June 2015 (unaudited)		Six months ended 30 June 2014 (unaudited)		Year ended 31 December 2014 (audited)
		Notes	£m		£m		£m
	Cash flows from operating activities
	Cash generated from operations	2.1	72.3		69.2		154.0
	Income tax paid		(14.6)		(15.1)		(31.2)
	Net cash inflows from operating activities		57.7		54.1		122.8
	Cash flows from investing activities
	Purchases of property, plant and equipment	3.3	(0.3)		(1.0)		(1.6)
	Purchase of intangible assets	3.2	(0.8)		(0.6)		(1.0)
	Purchase of financial assets at fair value through profit or loss ("FVTPL")		(16.9)		(6.6)		(7.5)
	Proceeds from disposal of financial assets at FVTPL		20.3		10.1		14.2
	Proceeds on transfer of private client contracts		-		-		39.6
	Costs incurred on transfer of private client contracts		-		-		(7.9)
	Dividend income received		-		-		0.3
	Finance income received		0.3		0.4		0.5
	Net cash inflows from investing activities		2.6		2.3		36.6
	Cash flows from financing activities
	Dividends paid	4.3	(94.0)		(40.2)		(56.7)
	Purchase of shares by EBT		(7.5)		(4.9)		(12.3)
	Finance costs paid		(0.1)		(0.1)		(0.2)
	Repayment of bank loan		-		(11.0)		(11.0)
	Net cash outflows from financing activities		(101.6)		(56.2)		(80.2)
	Net increase in cash and cash equivalents		(41.3)		0.2		79.2
	Cash and cash equivalents at beginning of the period		251.0		171.8		171.8
	Cash and cash equivalents at end of period	3.5	209.7		172.0		251.0

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

2.1 CASH GENERATED FROM OPERATIONS

			Six months ended 30 June 2015		Six months ended 30 June 2014		Year ended 31 December 2014
			£m		£m		£m
	Operating profit		83.8		48.1		159.7
	Adjustments for:
	Amortisation of intangible assets		1.6		18.6		20.2
	Depreciation of property, plant and equipment		0.5		0.5		1.1
	Other non-cash (gains)/losses		(0.3)		2.1		(27.8)
	Share-based payments		7.0		6.1		12.9
	Cash inflows on exercise of share options		0.4		0.1		0.8
	Increase in trade and other receivables		(83.5)		(85.7)		6.0
	Increase/(decrease) in trade and other payables		62.8		79.4		(18.9)
	Cash generated from operations		72.3		69.2		154.0

Section 3: Assets and liabilities

Consolidated balance sheet at 30 June 2015

			30 June 2015 (unaudited)		30 June 2014 (unaudited)		31 December 2014 (audited)
		Notes	£m		£m		£m
	Assets
	Non-current assets
	Goodwill	3.1	341.2		341.2		341.2
	Intangible assets	3.2	7.4		9.3		8.1
	Property, plant and equipment	3.3	1.5		1.7		1.7
	Deferred tax assets	5.4	12.7		15.9		12.4
	Trade and other receivables	5.4	3.4		6.9		5.0
			366.2		375.0		368.4
	Current assets
	Investments in associates	3.4	10.0		33.9		13.8
	Financial assets at FVTPL	3.4	42.0		20.7		37.1
	Trade and other receivables	5.4	179.4		184.5		94.7
	Cash and cash equivalents	3.5	209.7		172.0		251.0
			441.1		411.1		396.6
	Total assets		807.3		786.1		765.0
	Equity attributable to the owners of the parent
	Share capital	4.1	9.2		9.2		9.2
	Own share reserve	4.2	(0.1)		(0.2)		(0.2)
	Other reserve	4.2	8.0		8.0		8.0
	Foreign currency translation reserve	4.2	7.2		7.1		7.2
	Retained earnings		536.6		488.9		562.0
	Total equity		560.9		513.0		586.2
	Liabilities
	Non-current liabilities
	Trade and other payables	5.4	12.0		14.1		12.3
	Deferred tax liabilities	5.4	1.8		3.9		2.3
			13.8		18.0		14.6
	Current liabilities
	Financial liabilities at FVTPL	3.4	6.8		5.0		3.0
	Trade and other payables	5.4	209.9		239.9		146.8
	Current income tax liability	5.4	15.9		10.2		14.4
			232.6		255.1		164.2
	Total liabilities		246.4		273.1		178.8
	Total equity and liabilities		807.3		786.1		765.0

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 2015		30 June 2014		31 December 2014
			£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 (2014 H1: £nil, 2014: £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 2015		30 June 2014		31 December 2014
			£m		£m		£m
	Investment management contracts		-		-		-
	Trade name		3.6		5.5		4.5
	Computer software		3.8		3.8		3.6
			7.4		9.3		8.1

The amortisation charge for the period was £1.6m (2014 H1: £18.6m, 2014: £20.2m). No additional investment management contracts and trade names were acquired in the period (2014 H1: £nil, 2014: £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 £0.8m (2014 H1: £0.6m, 2014: £1.0m).

3.3 PROPERTY, PLANT AND EQUIPMENT

The net book value of property, plant and equipment at 30 June 2015 was £1.5m (2014 H1: £1.7m, 2014: £1.7m). During the period, the Group acquired property, plant and equipment with a value of £0.3m (2014 H1: £1.0m, 2014: £1.6m).

3.4 FINANCIAL INSTRUMENTS HELD AT FAIR VALUE

As at 30 June 2015, the Group held the following classes of financial instruments measured at fair value:

			30 June 2015		30 June 2014		31 December 2014
			£m		£m		£m
	Investments in associates		10.0		33.9		13.8
	Financial assets at FVTPL		42.0		20.7		37.1
	Financial liabilities at FVTPL		(6.8)		(5.0)		(3.0)
			45.2		49.6		47.9

3.5 CASH AND CASH EQUIVALENTS

			30 June 2015		30 June 2014		31 December 2014
			£m		£m		£m
	Cash at bank and in hand		122.4		104.2		130.8
	Short-term deposits		84.0		62.5		117.0
	Cash held by EBT and seed capital subsidiaries		3.3		5.3		3.2
			209.7		172.0		251.0

Section 4: Equity

Consolidated statement of changes in equity for the period ended 30 June 2015

	Share  capital	Own  share  reserve	Other   reserve	Foreign  currency  translation  reserve	Retained earnings	Total
	£m	£m	£m	£m	£m	£m
At 1 January 2014 (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)/income	-	-	-	-	-	-
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
Profit for the period	-	-	-	-	88.3	88.3
Exchange movements on translation of subsidiary undertakings	-	-	-	0.1	-	0.1
Other comprehensive expense	-	-	-	0.1	-	0.1
Total comprehensive (expense)/income	-	-	-	0.1	88.3	88.4
Vesting of ordinary shares and options	-	-	-	-	0.7	0.7
Dividends paid	-	-	-	-	(16.5)	(16.5)
Purchase of shares by EBT	-	-	-	-	(7.3)	(7.3)
Share-based payments	-	-	-	-	6.8	6.8
Current tax	-	-	-	-	3.4	3.4
Deferred tax	-	-	-	-	(2.3)	(2.3)
Total transactions with owners	-	-	-	-	(15.2)	(15.2)
Balance at 31 December 2014 (audited)	9.2	(0.2)	8.0	7.2	562.0	586.2
Profit for the period	-	-	-	-	67.1	67.1
Exchange movements on translation of subsidiary undertakings	-	-	-	-	-	-
Other comprehensive expense	-	-	-	-	-	-
Total comprehensive (expense)/income	-	-	-	-	67.1	67.1
Vesting of ordinary shares and options	-	0.1	-	-	0.4	0.5
Dividends paid	-	-	-	-	(94.0)	(94.0)
Purchase of shares by EBT	-	-	-	-	(7.5)	(7.5)
Share-based payments	-	-	-	-	7.0	7.0
Current tax	-	-	-	-	1.3	1.3
Deferred tax	-	-	-	-	0.3	0.3
Total transactions with owners	-	0.1	-	-	(92.5)	(92.4)
Balance at 30 June 2015 (unaudited)	9.2	(0.1)	8.0	7.2	536.6	560.9

Notes to the Group financial statements - Equity

4.1 SHARE CAPITAL

			30 June 2015		30 June 2014		31 December 2014
			£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 2015, 0.2m (2014 H1: 1.6m, 2014: 0.2m) 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 6.7m (2014 H1: 10.5m, 2014: 10.4m) shares held for the purpose of satisfying share option obligations to employees, are treated as own shares with a cost of £0.1m (2014 H1: £0.2m, 2014: £0.2m).

(ii) Other reserve

The other reserve of £8.0m (2014 H1: £8.0m, 2014: £8.0m) relates to the conversion of Tier 2 preference shares in 2010.

(iii) 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 21 April 2015, the Group paid a final dividend for 2014 of 9.5p per ordinary share and a special dividend for 2014 of 11.5p per ordinary share. This amounted to a total payment of £94.0m after taking into account the £2.1m dividends waived on shares in the EBT.

The Board has declared an interim dividend for the period of 4.0p per ordinary share. This dividend will be paid on 28 August 2015 to ordinary shareholders on the register at close of business on 7 August 2015.

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 2015 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 2014, 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 2014 were approved by the Board on 25 February 2015 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 even given the uncertainty inherent within future market levels and investment performance. 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 2014:

Included in consolidation

Jupiter Global Emerging Markets Unconstrained

Excluded from consolidation

N/A

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 2014.

5.3 FINANCIAL COMMITMENTS

In 2014, the Group signed an agreement for a 20 year lease on an uncompleted building. Under that agreement, there was no obligation to make lease payments, and therefore no amounts were included in the results for 2014. On 22 June 2015, the Group signed an access letter for the new Zig Zag building which enables our contractors to access the building and begin the fit-out. The costs of the lease are charged to the income statement from this date, with the lease incentives spread over the period starting on this date. The final lease document was signed in July 2015.

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 2015	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	-	-	-	-	-	7.4	7.4
Property, plant and equipment	-	-	-	-	-	1.5	1.5
Deferred tax assets	-	-	-	-	-	12.7	12.7
Non-current trade and other receivables*	-	-	-	-	-	3.4	3.4
Investments in associates	10.0	-	-	-	10.0	-	10.0
Financial assets at FVTPL	42.0	-	-	-	42.0	-	42.0
Current trade and other receivables*	-	169.3	-	-	169.3	10.1	179.4
Cash and cash equivalents	-	209.7	-	-	209.7	-	209.7
Non-current trade and other payables*	-	-	-	(4.9)	(4.9)	(7.1)	(12.0)
Deferred tax liabilities	-	-	-	-	-	(1.8)	(1.8)
Current trade and other payables*	-	-	-	(190.1)	(190.1)	(19.8)	(209.9)
Current income tax liability	-	-	-	-	-	(15.9)	(15.9)
Financial liabilities at FVTPL	-	-	(6.8)	-	(6.8)	-	(6.8)
Total	52.0	379.0	(6.8)	(195.0)	229.2	331.7	560.9

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 31 December 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	-	-	-	-	-	8.1	8.1
Property, plant and equipment	-	-	-	-	-	1.7	1.7
Deferred tax assets	-	-	-	-	-	12.4	12.4
Non-current trade and other receivables*	-	-	-	-	-	5.0	5.0
Investments in associates	13.8	-	-	-	13.8	-	13.8
Financial assets at FVTPL	37.1	-	-	-	37.1	-	37.1
Current trade and other receivables*	-	84.1	-	-	84.1	10.6	94.7
Cash and cash equivalents	-	251.0	-	-	251.0	-	251.0
Non-current trade and other payables*	-	-	-	(3.3)	(3.3)	(9.0)	(12.3)
Deferred tax liabilities	-	-	-	-	-	(2.3)	(2.3)
Current trade and other payables*	-	-	-	(127.3)	(127.3)	(19.5)	(146.8)
Current income tax liability	-	-	-	-	-	(14.4)	(14.4)
Financial liabilities at FVTPL	-	-	(3.0)	-	(3.0)	-	(3.0)
Total	50.9	335.1	(3.0)	(130.6)	252.4	333.8	586.2

* 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.

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 2015, 30 June 2014 and 31 December 2014, all financial instruments held by the Group were classified as Level 1, with the exception of the investment in iO Adria Ltd, which is classified as a Level 3 instrument.

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 30 June 2015 related to its investment in iO Adria Ltd.  This was written down from £2.6m to £nil in H1 2014, and the Directors believe this is a fair carrying value of the investment.

5.5 RELATED PARTY TRANSACTIONS

All related party transactions during the period are consistent with those disclosed in the Annual Report and Accounts for the year ended 31 December 2014 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.

5.6 PRINCIPAL RISKS AND MITIGATIONS

The Board has ultimate responsibility for the risk strategy of the Group and for determining an appropriate risk appetite, as well as the tolerance levels, within which the Group must operate.

By defining these, the Board demonstrates that it is aware of and, where appropriate, has taken steps to mitigate the impact of risks that may have a material impact on the Group. On at least an annual basis (and twice in 2014), the Board formally considers its appetite for risk with particular regard to the Group's strategic plans, the wider business environment and the current and future condition of the Group's business and operations. The Group Risk Appetite is informed and challenged by any experience of

materialised risk, either within Jupiter or in the broader marketplace.

The principal risks to which the Group will be exposed in the second half of 2015 are substantially the same as those outlined in the Annual Report and Accounts for the year ended 31 December 2014, being:

Investment outperformance

·      Sustained under performance: There is a risk that our clients will not meet their investment objectives, due to weak

financial markets or poor performance by our fund managers.

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

Effective distribution

·      Regulatory non-compliance: A significant regulatory investigation or action against the Group could affect our reputation and business.

·      Distribution and product trends: These risks reflect potential changes in our fee structures, in the terms we can agree with third-party distributors, or in clients' appetite for our products.

Efficient operations

·      Operational error, business continuity incident or fraud: We could suffer from a material error in executing a key business process, a lack of availability of our key systems or business premises, or a successful fraud against us or our clients.

·      Failure of third party supplier: The failure of a provider we rely on for key business processing may lead to our failing to deliver the required service to our clients or shareholders or not fulfilling our regulatory obligations.

·      Counterparty failure: The failure of a trading or depositary counterparty with which we have a relationship could have an adverse impact on our business.

Section 6: Directors' responsibility statement

We confirm that to the best of our knowledge:

·      The condensed interim set of financial statements has been prepared in accordance with the International Accounting Standards 34, 'Interim Financial Reporting' as adopted by the European Union and gives a true and fair view of the assets, liabilities, financial position and profits of the Group for the period ended 30 June 2015.

·      The interim report includes a fair review of the information required by:

a)     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

b)     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 and 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 and Accounts for the year ended 31 December 2014. Polly Williams was appointed a non-executive Director on 1 March 2015. Matteo Perruccio resigned from the Board on 15 April 2015. Bridget Macaskill was appointed a non-executive Director on 1 May 2015. A current list of Directors is maintained on the website at jupiteram.com.

On behalf of the Board

Philip Johnson

Chief Financial Officer

28 July 2015

Independent review report to Jupiter Fund Management plc

Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed the condensed interim financial statements, defined below, in the Interim Report and Accounts of Jupiter Fund Management plc for the six months ended 30 June 2015. Based on our review, nothing has come to our attention that causes us to believe that the condensed 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 interim financial statements, which are prepared by Jupiter Fund Management plc, comprise:

·      the consolidated balance sheet as at 30 June 2015;

·      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 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 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 interim financial statements.

Responsibilities for the condensed interim financial statements and the review

Our responsibilities and those of the Directors

The Interim Report and Accounts, including the condensed interim financial statements, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report and 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

28 July 2015

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 LLFEDDIITFIE