TIDMJUP
RNS Number : 0817M
Jupiter Fund Management PLC
26 July 2017
Highlights
==========
26 July 2017
-- 81% of assets under management performing above median after all fees
-- Strong flow growth from our core mutual fund franchise, with
net mutual fund inflows of GBP3.4bn
-- Assets under management increased to GBP46.9bn
-- Profit before tax increased by 8% to GBP93.9m
-- Underlying earnings per share increased by 16% to 16.7p
(basic earnings per share up 10% to 16.8p)
-- Net management fees up 19% to GBP186.5m
-- Interim dividend per share increased by 51% to 6.8p.
Six months ended Six months ended Year ended
30 June 2017 30 June 2016 31 December 2016
===================================== ================ ================ =================
Assets under management (GBPbn) 46.9 37.0 40.5
====================================== ================ ================ =================
Net inflows (GBPbn) 3.6 0.6 1.0
====================================== ================ ================ =================
Net management fees(1) (GBPm) 186.5 156.5 330.2
====================================== ================ ================ =================
Profit before tax (GBPm) 93.9 86.6 171.4
====================================== ================ ================ =================
Underlying earnings per share(1) (p) 16.7 14.4 29.4
Interim dividend per share (p) 6.8 4.5 4.5
====================================== ================ ================ =================
Adjusted cost/income ratio(1) 54% 55% 55%
====================================== ================ ================ =================
(1) The Group's use of alternative performance measures is
explained on page 7.
Maarten Slendebroek, Chief Executive, commented:
"Jupiter has made significant progress in the first half of 2017
with healthy net inflows and continued strong investment
outperformance after all fees underlining the ongoing success of
our diversification strategy. Our culture of accountability, high
performance and independent thinking gives us confidence in our
ability to continue creating value for clients, growing AUM and
delivering progressive returns for our shareholders over the
cycle."
Analyst presentation
There will be an analyst presentation at 9.00am on 26 July
2017.
The presentation will be held at The Zig Zag Building, 70
Victoria Street, London, SW1E 6SQ and is also accessible via a live
audiocast for those unable to attend in person. To attend the
presentation, please contact Tom Blackwell at FTI Consulting on +44
(0)20 3727 1051 or at tom.blackwell@fticonsulting.com.
Alternatively, sign up online to access the live audiocast using
the following link:
https://secure.emincote.com/client/jupiter/jfm003.
The interim report and accounts will be available on the Group's
website at:
https://www.jupiteram.com/Global/en/Investor-Relations/Reports-and-results.
For further information
please contact:
Investors Media
Jupiter Alex Sargent Alicia Wyllie
+44 (0)20 3817 1534 +44 (0)20 3817 1638
Investor relations
+44 (0)20 3817 1065
FTI Consulting Tom Blackwell Andrew Walton
+44 (0)20 3727 1051 +44 (0)20 3727 1514
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
===========================
Jupiter made significant progress in the first half of 2017 with
a continuation of strong investment outperformance and the ongoing
delivery of our diversification strategy supporting healthy net
inflows across our distribution channels. This business momentum
provides a stable platform from which we move into the second half
of the year.
Net inflows during the six months to 30 June 2017 totalled
GBP3.6bn, up substantially on the GBP0.6bn recorded in the first
half of 2016. Mutual fund inflows of GBP3.4bn (H1 2016: GBP0.4bn)
were driven by sales into our fixed income, absolute return and
global emerging markets strategies. All our offices contributed
positively to flows, with our newer offices in Italy and Spain
delivering higher levels of flows than anticipated having only
opened last year. It was also pleasing to see the UK return to net
inflows after a difficult 2016.
These flows, together with market movements and alpha generation
by our fund managers, resulted in a 16% increase in AUM to
GBP46.9bn. With the Jupiter Absolute Return and Jupiter India unit
trusts having attracted significant assets in the first half, 12 of
our mutual funds are now over GBP1bn in size, together accounting
for GBP33.4bn of our AUM.
Performance
Three year investment performance after all fees remains a key
driver of flows. In the three years to 30 June 2017, 81% of AUM was
above median after all fees. This compares well with an equivalent
level of 75% recorded at the end of 2016.
Performance across our funds was recognised at the Investment
Week Fund Manager of the Year Awards in June with the judges naming
Jupiter Global Group of the Year 2017. The Jupiter Income Trust was
also recognised, winning the award for Best UK Equity Income Fund
while the Jupiter Absolute Return Fund was highly commended.
Business development
Our strategy of diversifying by client, product and geography
has continued into 2017. We launched the Global Emerging Markets
Corporate Bond Fund to our international clients in March while the
Jupiter Emerging & Frontier Income Trust PLC was launched to UK
clients in May. These launches in the equity and bond markets
underline Jupiter's growing expertise and reputation in emerging
markets which accounts for an increasing proportion of our AUM.
We have also continued to invest in our people, expanding our
fixed income and emerging market debt capabilities and adding to
our distribution resources across a number of markets to ensure we
can deliver both a high level of service to existing clients and
attract new business.
Regulation
New regulation remains a significant focus for the asset
management industry with MiFID II, SMR, and UCITS V all active work
streams, not to mention developments arising out of Brexit and the
FCA Asset Management Market Study. We are well prepared for these
changes, investing appropriately in the necessary systems and
resources to implement these requirements as well as ongoing
investment in our fund management platform to enable future
growth.
In February we announced changes to our unit trust pricing that
will simplify our client proposition, choosing to switch from dual
to single pricing, removing box profits from our income during
2018. Box profits in the current period were GBP7.2m, compared to
GBP6.6m in the same period in 2016. We will also be taking research
costs through our corporate accounts from the start of next year.
The FCA published its final report on the asset management industry
at the end of June and has made a number of proposals (some of
which are subject to further consultation), including remedies to
enhance governance and disclosure of fund objectives and charges.
We welcome these developments and await further details from the
FCA once its consultation period is completed.
Financial results
Net revenues during the first six months of 2017 totalled
GBP195.4m, up 15% on the GBP170.0m reported in the first half of
2016. This reflects strong growth of 19% in management fees to
GBP186.5m (H1 2016: GBP156.5m). Net initial charges accounted for
GBP8.1m of revenues, of which box profits were GBP7.2m. This
revenue line will cease in 2018 as part of the pricing changes we
announced in February. Performance fees of GBP0.8m crystallised
during the period against GBP5.7m in the first half of 2016,
reflecting our guidance that these fees should not be considered a
material feature of our revenues.
The net management fee margin dropped 2bps from 88bps to 86bps
at the end of June 2017, a natural consequence of accelerating
flows into our lower margin fixed income strategy. Longer term, we
continue to expect margins to decline by 1-2 basis points a
year.
Underlying profit before tax was GBP94.8m compared with GBP82.5m
at the end of June 2016 while underlying earnings per share were
16.7p, 16% higher than the 14.4p recorded in the first half of
2016.
We continue to invest appropriately in our business as we grow,
both to enable future growth and to ensure the range of new
regulations being introduced across the asset management industry
can be implemented effectively. Fixed costs as a proportion of
revenues remain stable in this period of investment, totalling
GBP63.3m (34% of net management fees) against GBP54.4m in the first
half of 2016 (35% of net management fees). Transaction costs linked
to AUM accounted for GBP13m of the total in the first half. As is
usual for a business such as ours, we would expect our fixed costs
to trend higher in the second half of 2017.
Variable staff costs are now tracking steady-state expectations
with our variable compensation ratio hovering around 29%. Total
variable staff costs were GBP38.0m in the first half of 2017
against GBP32.0m in the first half of 2016.
Jupiter's balance sheet remains resilient with an indicative
surplus of GBP92m providing robust liquidity after providing for
dividends.
Dividend
The strength of our balance sheet enables us to maintain our
progressive dividend policy, which targets an ordinary pay out of
50% of our underlying earnings per share. The Board has previously
signalled an intention to rebalance the total ordinary dividend
towards the interim and the dividend of 6.8p (2016: 4.5p) we have
announced today reflects that rebalancing as well as the growth in
underlying earnings in the period.
Outlook
The past five years have seen significant change and growth in
our business which have benefitted our clients, shareholders and
employees. With a clear organic growth strategy and high levels of
employee engagement enabling us to maintain a culture of
accountability, high performance and independent thinking, we
remain focused on our core objective of delivering active
outperformance for our clients. This gives us confidence in our
ability to continue delivering growth in AUM and earnings across
the cycle regardless of market conditions and regulatory pressures,
resulting in progressive returns for our shareholders.
Maarten Slendebroek
Chief Executive Officer
25 July 2017
Business review
===============
Assets under management ("AUM") and flows
Movement in AUM by product across the
period
=========================================== ============= =============== ==========
31 December Q1 net Q2 net flows Market movement 30 June
2016 flows GBPm GBPm 2017
GBPm GBPm GBPm
==================== ============ ======= ============= =============== ==========
Mutual funds 35,216 1,402 1,994 2,318 40,930
==================== ============ ======= ============= =============== ==========
Segregated mandates 4,244 (93) 190 367 4,708
==================== ============ ======= ============= =============== ==========
Investment trusts 1,083 (3) 75 114 1,269
==================== ============ ======= ============= =============== ==========
Total 40,543 1,306 2,259 2,799 46,907
==================== ============ ======= ============= =============== ==========
AUM increased by 16% to GBP46.9bn as at 30 June 2017 (31
December 2016: GBP40.5bn) as a result of substantial net flows and
strong market performance.
Organic flows into our core mutual fund franchise were GBP3.4bn
in the period, with positive flows across all geographical regions.
During the period, our fixed income offering produced strong flows,
with business in our new branches in Italy and Spain demonstrating
our growing international distribution capabilities. Emerging
market and absolute return strategies also saw significant inflows.
Market conditions were broadly favourable across the period, but
occasionally volatile as a result of geopolitical uncertainty.
Investment performance
At 30 June 2017, 33 mutual funds, representing approximately 81%
of mutual funds by AUM (31 December 2016: 25 mutual funds
representing 75% of mutual fund AUM), delivered first and second
quartile investment performance over the key three year investment
period. Over one year, 34 mutual funds representing approximately
70% of mutual funds by AUM, delivered first and second quartile
investment performance (31 December 2016: 24 mutual funds
representing approximately 54% of mutual fund AUM). Prior year
comparatives have been restated to reflect an update in our
internal investment performance methodology which has also
increased our AUM coverage of the measure.
Financial review
================
RESULTS FOR THE PERIOD
Net revenue Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
GBPm GBPm GBPm
Management fees 210.0 180.9 377.4
Fee expenses (23.5) (24.4) (47.2)
------------- ----------- -------------
Net management fees 186.5 156.5 330.2
Initial charges and commissions
(excluding box profits) 1.7 3.0 5.4
Commission expenses (0.8) (1.8) (3.2)
------------- ----------- -------------
Net initial charges (excluding
box profits) 0.9 1.2 2.2
Performance fees 0.8 5.7 6.2
------------- ----------- -------------
Net revenue before box profits 188.2 163.4 338.6
Box profits 7.2 6.6 12.8
------------- ----------- -------------
Total 195.4 170.0 351.4
============= =========== =============
Net revenue for the period was GBP195.4m (2016 H1: GBP170.0m), a
15% increase on 2016 H1. Net management fees remain the main
component of net revenue (2017 H1: 95%, 2016 H1: 92%).
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
Net management fees (GBPm) 186.5 156.5 330.2
Average AUM (GBPbn) 43.8 35.9 37.8
Net management fee margin (bps) 86 88 87
Net management fees increased to GBP186.5m (2016 H1: GBP156.5m)
as a result of significant AUM growth and valuation
appreciation.
The Group's net management fee margin for the period was 86
basis points, down by 1 basis point on the second half of 2016, due
to substantial growth in our lower margin fixed income product
range. We continue to expect net management fee margins to decline
by 1-2 basis points a year for product mix reasons.
Net initial charges (before box profits) of GBP0.9m (2016 H1:
GBP1.2m) decreased marginally. Performance fees of GBP0.8m (2016
H1: GBP5.7m) were earned in the period.
Administrative expenses
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
GBPm GBPm GBPm
Fixed staff costs 26.9 23.3 48.3
Other expenses 36.4 31.1 67.1
----------- ----------- -------------
Total fixed costs 63.3 54.4 115.4
Variable staff costs 38.0 32.0 66.6
----------- ----------- -------------
Underlying administrative expenses 101.3 86.4 182.0
Charge/(credit) for options
over pre-Listing shares 0.2 (0.1) 0.1
Total administrative expenses 101.5 86.3 182.1
=========== =========== =============
Underlying administrative expenses of GBP101.3m (2016 H1:
GBP86.4m) were GBP14.9m higher than 2016 H1. Total fixed costs of
GBP63.3m (2016 H1: GBP54.4m) increased 16% primarily due to costs
associated with the SICAV aggregate operating fee, which vary with
higher dealing volumes and higher AUM, and investment in staff.
The increase in fixed staff costs of GBP3.6m relates to new
hires in the fund management and distribution teams in the second
half of 2016 and the first half of 2017 and other structural
changes to our workforce.
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
GBPm GBPm GBPm
Cash bonus 22.7 21.1 42.4
Deferred bonus 7.5 5.2 10.6
LTIP, SAYE and SIP 7.8 5.7 13.6
Total 38.0 32.0 66.6
=========== =========== =============
Variable compensation ratio 29% 28% 28%
=========== =========== =============
Total compensation ratio 33% 33% 33%
=========== =========== =============
Cash bonus costs of GBP22.7m (2016 H1: GBP21.1m) increased by 8%
as a result of higher levels of profitability, partially offset by
lower levels of variable compensation directly linked to
performance fees. Other variable compensation charges increased
with higher earnings and as a result of the 14% increase in the
Jupiter share price over the period, which has driven higher
accruals for associated social security costs on all unexercised
share awards.
Variable compensation as a proportion of operating earnings plus
variable staff costs was flat at 29% (2016 H1: 28%) as increases in
variable compensation were in line with increased profitability. We
expect the variable compensation ratio to remain in the mid to high
20% range over the medium term. 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, although social security costs
vary with the Group's share price.
Other income statement movements
Amortisation of GBP1.5m (2016 H1: GBP1.6m) relates primarily to
the Jupiter brand name which is now fully amortised.
Profit before tax (PBT)
PBT for the period increased by 8% to GBP93.9m (2016 H1:
GBP86.6m) due to a 12% increase in operating earnings, partially
offset by a reduction in other gains, which benefited from a
one-off foreign exchange gain of GBP5.0m in 2016.
Tax
The effective tax rate was 19.8% (2016 H1: 20.4%, 2016: 20.5%)
against a headline corporation tax rate of 19.25% (2016 H1: 20%,
2016: 20%).
Underlying PBT and underlying earnings per share (EPS)
Underlying PBT and underlying EPS are non-GAAP measures which
the Board believes provide a useful representation of the Group's
trading performance (see page 7).
Underlying EPS was up 16% on 2016 H1 at 16.7p (2016 H1:
14.4p).
Six months Six months Year ended
ended 30 ended 31 December
June 2017 30 June 2016 2016
GBPm GBPm GBPm
-------------------------------------- ----------- -------------- -------------
Profit before tax 93.9 86.6 171.4
Adjustments:
Amortisation of acquired
trade name 0.7 1.0 1.9
Charge/(credit) for options
over pre-Listing shares 0.2 (0.1) 0.1
Realised foreign exchange
gains on liquidation of subsidiaries - (5.0) (5.0)
Underlying profit before
tax 94.8 82.5 168.4
-------------------------------------- ----------- -------------- -------------
Tax at average statutory
rate of 19.25% (18.2) (16.5) (33.7)
(2016 H1: 20%, 2016: 20%)
Underlying profit after tax 76.6 66.0 134.7
-------------------------------------- ----------- -------------- -------------
Issued share capital (m) 457.7 457.7 457.7
Underlying EPS 16.7p 14.4p 29.4p
-------------------------------------- ----------- -------------- -------------
Basic EPS 16.8p 15.3p 30.3p
-------------------------------------- ----------- -------------- -------------
Diluted EPS 16.3p 14.9p 29.6p
-------------------------------------- ----------- -------------- -------------
CASH FLOW
The Group generated positive operating cash flows after tax in
2017 H1 of GBP78.2m (2016 H1: GBP56.5m). GBP101.7m was spent on
final and special dividend payments to shareholders in respect of
the previous year's profit and GBP13.2m of shares were purchased by
the Employee Benefit Trust to avoid future dilution from
compensation schemes. The net decrease in cash in the period was
GBP38.8m.
ASSETS AND LIABILITIES
Balance sheet
At 30 June 2017, the Group held cash of GBP220.1m (31 December
2016: GBP258.9m), as trading profits were offset by the payment of
the 2016 compensation round and the final and special dividends. 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.
The Group has no debt (31 December 2016: GBPnil). The revolving
credit facility of GBP50m was not drawn in the period.
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
2017, we had a total investment of GBP61.5m in our own funds (31
December 2016: GBP58.7m). This excludes GBP10.2m 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 90% 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 increased by GBP17.2m to GBP582.7m
between 30 June 2016 and 30 June 2017, with the continued
profitability of the Group being substantially offset by
distributions to shareholders, in line with the Group's dividend
policy below. The Group maintains a comfortable surplus over its
regulatory requirements.
Dividends
Jupiter has a progressive ordinary dividend policy, and our
intention is for the ordinary dividend payout ratio to be around
50% across the cycle. The Board then expects to retain up to 10% of
earnings for investment and growth; 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 2017.
The Board considers the dividend on a total basis, taking into
account our resilient balance sheet and our long-term approach to
running the business. In looking to maintain an appropriate balance
between interim and full-year dividends, the Board has declared an
increased interim dividend of 6.8p (2016 H1: 4.5p).
THE USE OF ALTERNATIVE PERFORMANCE MEASURES ("APMs")
The Group uses the following APMs:
APM Definition Reconciliation Reason for
use
Adjusted cost/income Administrative expenses Not applicable C
ratio divided by net management
fees
Fixed costs Costs other than variable Page 5 C
staff costs
Net management fee Net management fees divided Page 4 A
margin by average AUM
Net management fees Management fees less fee Page 4 A
expenses
Net revenue Revenue less fee and commission Page 8 A
expenses
Operating earnings Net revenue less administrative Page 8 A
expenses
Ordinary dividends Interim and final dividends Not applicable B
per share (does not include any
"special" dividends)
Total compensation Total staff costs as a Not applicable C
ratio proportion of net revenue
Underlying administrative Administrative expenses Page 5 B
expenses excluding non-recurring
items
Underlying EPS Underlying profit after Page 6 B
tax divided by issued
share capital
Underlying profit Profit before tax excluding Page 6 B
before tax amortisation arising from
acquisitions and non-recurring
items*
Variable compensation Variable staff costs as Page 5 C
ratio a proportion of operating
earnings plus variable
staff costs
*Items that are non-recurring are those items of income or
expenditure that are not expected to repeat over the business
cycle. Where appropriate, such items may be recognised over
multiple accounting periods.
A. to draw out meaningful subtotals of revenues and earnings,
together with ratios derived from such measures, commonly used by
asset managers after taking into account items such as fees and
commissions payable, without which a proportion of the revenues
would not have been earned, and administrative expenses which often
have a direct link to revenues through the use of compensation
ratios to set remuneration.
B. to present users of the accounts with a clear view of what
the Group considers to be the results of/distributions from its
underlying operations, thereby enabling consistent period on period
comparisons and making it easier for users of the accounts to
identify trends.
C. to provide additional information not required for disclosure
under accounting standards. The information is given to assist
users of the accounts in gauging the level of operational gearing
and efficiency in the Group and in predicting future variable cost
and therefore profit levels.
All APMs relate to past performance.
Changes in the use of APMs
1. In prior periods, the Group has used adjusted EBITDA as a
measure of performance, principally to enable users of the accounts
to better compare the earnings of the Group with those of its
competitors. Being debt-free and having now fully amortised its
trade name intangible assets, there are currently no material
differences between Jupiter's underlying PBT and its EBITDA;
additionally, amortisation charges going forward will principally
relate to assets developed as part of the operating business and
should be taken into consideration when measuring performance. For
these reasons, EBITDA has been removed as a performance
measure.
2. Further to 1 above, EBITDA margin has been replaced by
'Adjusted cost/income ratio' to retain a metric that provides a
measure of operational efficiency.
Section 1: Results for the period
=================================
Consolidated income statement for the period ended 30 June 2017
===============================================================
Six months ended Six months ended Year ended
30 June 2017 30 June 2016 31 December 2016
Notes GBPm GBPm GBPm
Revenue 1.1 219.7 196.2 401.8
Fee and commission expenses 1.1 (24.3) (26.2) (50.4)
---------------- ---------------- ---------------------------
Net revenue 1.1 195.4 170.0 351.4
Administrative expenses (101.5) (86.3) (182.1)
Operating earnings 1.3 93.9 83.7 169.3
Other gains 1.4 1.5 4.3 5.1
Amortisation of intangible assets 3.2 (1.5) (1.6) (3.3)
---------------- ---------------- ---------------------------
Operating profit 93.9 86.4 171.1
Finance income 0.1 0.3 0.5
Finance costs (0.1) (0.1) (0.2)
Profit before taxation 93.9 86.6 171.4
Income tax expense 1.5 (18.6) (17.7) (35.1)
Profit for the period 75.3 68.9 136.3
================ ================ ===========================
Earnings per share
Basic 1.6 16.8p 15.3p 30.3p
Diluted 1.6 16.3p 14.9p 29.6p
Consolidated statement of comprehensive income for the period
ended 30 June 2017
=============================================================
Six months ended 30 June Six months ended 30 June Year ended
2017 2016 31 December 2016
Notes GBPm GBPm GBPm
Profit for the period 75.3 68.9 136.3
-------------------------- --------------------------- -----------------
Items that may be
reclassified subsequently
to profit or loss
Exchange movements on translation
of subsidiary undertakings (0.1) 0.4 0.5
Items reclassified to the
income statement
Realised foreign exchange gains
transferred to the income
statement - (5.0) (5.0)
Other comprehensive income for the
period net of tax (0.1) (4.6) (4.5)
-------------------------- --------------------------- -----------------
Total comprehensive income for the
period net of
tax 75.2 64.3 131.8
========================== =========================== =================
Notes to the Group financial statements - Income statement
========================================================================
INTRODUCTION
Jupiter Fund Management plc (the Company) and its subsidiaries
(together, the Group) offer a range of asset management products.
Through its subsidiaries, the Group acts as an investment manager
to authorised unit trusts, SICAVs, investment trust companies,
pension funds and other specialist funds. The Group has offices in
the United Kingdom, Germany, Singapore, Hong Kong, Switzerland,
Austria, Sweden, Spain and Italy.
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 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 flows 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 Six months Year ended
ended ended 31 December
30 June 2017 30 June 2016 2016
GBPm GBPm GBPm
Management fees 210.0 180.9 377.4
Initial charges and commissions 8.9 9.6 18.2
Performance fees 0.8 5.7 6.2
Fee and commission expenses (24.3) (26.2) (50.4)
Total net revenue 195.4 170.0 351.4
============= ============= =============
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.
1.3 OPERATING EARNINGS
Management monitors operating earnings, a non-GAAP measure, for
the purpose of making decisions about resource allocation and
performance assessment (see page 7).
1.4 OTHER GAINS
Six months ended Six months ended Year ended
30 June 2017 30 June 2016 31 December 2016
GBPm GBPm GBPm
Foreign exchange gains on liquidation of subsidiaries - 5.0 5.0
Dividend income 0.2 0.3 0.5
Other 1.3 (1.0) (0.4)
Total other gains 1.5 4.3 5.1
================ ================ ==================
In 2016, the Group liquidated two of its overseas subsidiaries
and cumulative foreign exchange gains of GBP5.0m relating to those
subsidiaries was transferred from the foreign currency translation
reserve, where it had previously been credited, to the income
statement.
1.5 INCOME TAX EXPENSE
Analysis of charge in the period:
Six months ended Six months ended Year ended
30 June 2017 30 June 2016 31 December 2016
GBPm GBPm GBPm
Current tax - UK corporation tax
Tax on profits for the period 17.4 17.1 34.6
Adjustments in respect of prior periods - - 1.0
---------------- ---------------- ------------------
17.4 17.1 35.6
Deferred tax
Origination and reversal of temporary differences 1.2 0.6 (0.3)
Adjustments in respect of prior periods - - (0.2)
1.2 0.6 (0.5)
Total income tax expense 18.6 17.7 35.1
================ ================ ==================
The weighted average UK corporation tax rate for the period
ended 30 June 2017 was 19.25% (2016 H1: 20%, 2016: 20%).
1.6 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 Employee 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
by the weighted average number of ordinary shares outstanding
during the period used in calculating 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 used in the calculation of EPS is as
follows:
Weighted average number of shares Six months Six months Year ended
ended ended 31 December
30 June 2017 30 June 2016 2016
Number Number Number
m m m
Issued share capital 457.7 457.7 457.7
Less: own shares held (9.0) (8.2) (8.4)
Weighted average number of ordinary
shares for the purpose of basic
EPS 448.7 449.5 449.3
Add back weighted average number
of dilutive potential shares 11.3 12.1 10.5
Weighted average number of ordinary
shares for the purpose of diluted
EPS 460.0 461.6 459.8
============= ============= =============
Earnings per share Six months Six months Year ended
ended ended 31 December
30 June 2017 30 June 2016 2016
p p p
Basic 16.8 15.3 30.3
Diluted 16.3 14.9 29.6
Section 2: Consolidated statement of cash flows
===============================================
Consolidated statement of cash flows for the period ended 30
June 2017
============================================================
Restated*
Six months ended 30 June six months ended 30 June Year ended
2017 2016 31 December 2016
Notes GBPm GBPm GBPm
Cash flows from operating
activities
Cash generated from
operations 2.1 97.7 74.4 181.2
Income tax paid (19.5) (17.9) (33.9)
--------------------------- ---------------------------- ------------------
Net cash inflows from
operating activities 78.2 56.5 147.3
Cash flows from investing
activities
Purchases of property, plant
and equipment 3.3 (0.3) (2.4) (2.8)
Purchase of intangible
assets 3.2 (2.3) (0.3) (0.9)
Purchase of financial assets
at fair value through
profit or loss (FVTPL) 2.2 (21.2) (19.1) (34.7)
Proceeds from disposal of
financial assets at FVTPL 2.2 20.0 15.7 29.9
Dividend income received 0.2 0.3 0.5
Finance income received 0.1 0.3 0.5
Net cash outflows from
investing activities (3.5) (5.5) (7.5)
Cash flows from financing
activities
Dividends paid 4.3 (101.7) (96.6) (116.8)
Purchase of shares by EBT (13.2) (13.2) (26.6)
Finance costs paid (0.1) (0.1) (0.2)
Third-party subscriptions
into consolidated funds 2.2 2.3 2.0 4.6
Third-party redemptions from
consolidated funds 2.2 (0.7) (0.3) (1.2)
Distributions paid by
consolidated funds (0.1) - (0.1)
Net cash outflows from
financing activities (113.5) (108.2) (140.3)
Net decrease in cash and
cash equivalents (38.8) (57.2) (0.5)
Cash and cash equivalents at
beginning of the period 258.9 259.4 259.4
Cash and cash equivalents at
end of the period 3.5 220.1 202.2 258.9
=========================== ============================ ==================
*See Note 2.2. Cash flows relating to this period have been
restated to align with the cash flow statement as presented in the
Group's Annual Report and Accounts 2016.
Notes to the Group financial statements - Consolidated statement
of cash flows
================================================================
2.1 CASH FLOWS GENERATED FROM OPERATING ACTIVITIES
Six months Six months Year ended
ended ended 31 December
30 June 2017 30 June 2016 2016
GBPm GBPm GBPm
Operating profit 93.9 86.4 171.1
Adjustments for:
Amortisation of intangible assets 1.5 1.6 3.3
Depreciation of property, plant
and equipment 1.1 1.1 2.2
Other non-cash gains (3.3) (6.0) (14.6)
Share-based payments 9.6 8.9 18.1
Cash inflows on exercise of share
options 0.3 0.1 0.4
Increase in trade and other receivables (49.7) (88.4) (3.2)
Increase in trade and other payables 44.3 70.7 3.9
Cash generated from operations 97.7 74.4 181.2
============= ============= =============
2.2 RECONCILIATION OF CASHFLOWS FROM INVESTING AND FINANCING
ACTIVITIES
Certain items within the consolidated statement of cash flows on
page 12 have been restated to include gross cash flows within funds
consolidated by the Group. There is no overall impact on the net
movement in cash and cash equivalents:
Six months ended 30 June 2016
As previously
stated Adjustment Restated
GBPm GBPm GBPm
Purchase of financial assets at
FVTPL (10.7) (8.4) (19.1)
Proceeds from disposal of financial
assets at FVTPL 9.0 6.7 15.7
------------- ------------ ----------
Net impact on cash outflows from
investing activities (1.7) (1.7) (3.4)
Third-party subscriptions into
consolidated funds - 2.0 2.0
Third-party redemptions from consolidated
funds - (0.3) (0.3)
------------- ------------ ----------
Net impact on cash outflows from
financing activities - 1.7 1.7
Other net cash flow movements (55.5) - (55.5)
Net movement in cash and cash equivalents (57.2) - (57.2)
============= ============ ==========
Section 3: Assets and liabilities
=================================
Consolidated balance sheet at 30 June 2017
==========================================
30 June 2017 30 June 2016 31 December 2016
Notes GBPm GBPm GBPm
Assets
Non-current assets
Goodwill 3.1 341.2 341.2 341.2
Intangible assets 3.2 4.8 5.0 4.0
Property, plant and equipment 3.3 8.1 9.6 8.8
Deferred tax assets 11.3 10.4 11.3
Trade and other receivables 0.9 1.6 1.2
------------ ------------ ----------------
366.3 367.8 366.5
Current assets
Investments in associates 3.4 6.8 5.8 7.3
Financial assets at FVTPL 3.4 78.6 59.9 70.9
Trade and other receivables 147.4 182.2 97.4
Cash and cash equivalents 3.5 220.1 202.2 258.9
------------ ------------ ----------------
452.9 450.1 434.5
------------ ------------ ----------------
Total assets 819.2 817.9 801.0
============ ============ ================
Equity attributable to shareholders
Share capital 4.1 9.2 9.2 9.2
Own share reserve 4.2 (0.2) (0.2) (0.2)
Other reserve 4.2 8.0 8.0 8.0
Foreign currency translation reserve 4.2 2.7 2.7 2.8
Retained earnings 563.0 545.8 590.6
------------ ------------ ----------------
Total equity 582.7 565.5 610.4
============ ============ ================
Liabilities
Non-current liabilities
Trade and other payables 7.4 7.7 8.2
Deferred tax liabilities 0.4 1.2 0.2
------------ ------------ ----------------
7.8 8.9 8.4
Current liabilities
Financial liabilities at FVTPL 3.4 17.9 9.5 13.4
Trade and other payables 198.7 220.9 153.6
Current income tax liability 12.1 13.1 15.2
228.7 243.5 182.2
Total liabilities 236.5 252.4 190.6
============ ============ ================
Total equity and liabilities 819.2 817.9 801.0
============ ============ ================
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 2017 30 June 2016 31 December
2016
GBPm GBPm GBPm
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 (2016 H1:
GBPnil, 2016: GBPnil).
3.2 INTANGIBLE ASSETS
30 June 2017 30 June 2016 31 December
2016
GBPm GBPm GBPm
Trade name - 1.8 0.7
Computer software 4.8 3.2 3.3
------------ ------------ -----------
4.8 5.0 4.0
============ ============ ===========
The amortisation charge for the period was GBP1.5m (2016 H1:
GBP1.6m, 2016: GBP3.3m). The trade name is now fully amortised. The
Group acquired software during the period with a value of GBP2.3m
(2016 H1: GBP0.3m, 2016: GBP0.9m).
3.3 PROPERTY, PLANT AND EQUIPMENT
The net book value of property, plant and equipment at 30 June
2017 was GBP8.1m (2016 H1: GBP9.6m, 2016: GBP8.8m). During the
period, the Group acquired property, plant and equipment with a
value of GBP0.3m (2016 H1: GBP2.4m, 2016: GBP2.8m).
3.4 FINANCIAL INSTRUMENTS HELD AT FAIR VALUE
As at 30 June 2017, the Group held the following classes of
financial instruments measured at fair value, which arise from the
Group's investments in seed capital (see note 5.1):
30 June 30 June 31 December
2017 2016 2016
GBPm GBPm GBPm
Investments in associates 6.8 5.8 7.3
Financial assets at FVTPL 78.6 59.9 70.9
Financial liabilities at FVTPL (17.9) (9.5) (13.4)
------- ------- -----------
67.5 56.2 64.8
======= ======= ===========
3.5 CASH AND CASH EQUIVALENTS
30 June 30 June 31 December
2017 2016 2016
GBPm GBPm GBPm
Cash at bank and in hand 183.2 124.9 128.4
Short-term deposits 30.0 68.0 124.0
Cash held by EBT and seed capital
subsidiaries 6.9 9.3 6.5
------- ------- ------------
220.1 202.2 258.9
======= ======= ============
Section 4: Equity
=================
Consolidated statement of changes in equity for the period ended
30 June 2017
================================================================
Foreign
Own currency
Share share Other translation Retained
capital reserve reserve reserve earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm
--------- -------- -------- ------------ --------- -------
At 1 January 2016 9.2 (0.2) 8.0 7.3 578.6 602.9
Profit for the period - - - - 68.9 68.9
Exchange movements on translation of subsidiary
undertakings - - - (4.6) - (4.6)
--------- -------- -------- ------------ --------- -------
Other comprehensive income - - - (4.6) - (4.6)
--------- -------- -------- ------------ --------- -------
Total comprehensive income - - - (4.6) 68.9 64.3
--------- -------- -------- ------------ --------- -------
Vesting of ordinary shares and options - - - - (0.2) (0.2)
Dividends paid - - - - (96.6) (96.6)
Purchase of shares by EBT - - - - (13.2) (13.2)
Share-based payments - - - - 8.9 8.9
Current tax - - - - 0.9 0.9
Deferred tax - - - - (1.5) (1.5)
--------- -------- -------- ------------ --------- -------
Total transactions with owners - - - - (101.7) (101.7)
--------- -------- -------- ------------ --------- -------
Balance at 30 June 2016 9.2 (0.2) 8.0 2.7 545.8 565.5
========= ======== ======== ============ ========= =======
Profit for the period - - - - 67.4 67.4
Exchange movements on translation of subsidiary
undertakings - - - 0.1 - 0.1
Other comprehensive income - - - 0.1 - 0.1
--------- -------- -------- ------------ --------- -------
Total comprehensive income - - - 0.1 67.4 67.5
--------- -------- -------- ------------ --------- -------
Vesting of ordinary shares and options - - - - 0.6 0.6
Dividends paid - - - - (20.2) (20.2)
Purchase of shares by EBT - - - - (13.4) (13.4)
Share-based payments - - - - 9.2 9.2
Current tax - - - - 0.5 0.5
Deferred tax - - - - 0.7 0.7
--------- -------- -------- ------------ --------- -------
Total transactions with owners - - - - (22.6) (22.6)
--------- -------- -------- ------------ --------- -------
Balance at 31 December 2016 9.2 (0.2) 8.0 2.8 590.6 610.4
========= ======== ======== ============ ========= =======
Profit for the period - - - - 75.3 75.3
Exchange movements on translation of subsidiary
undertakings - - - (0.1) - (0.1)
Other comprehensive income - - - (0.1) - (0.1)
--------- -------- -------- ------------ --------- -------
Total comprehensive income - - - (0.1) 75.3 75.2
--------- -------- -------- ------------ --------- -------
Vesting of ordinary shares and options - 0.1 - - 0.3 0.4
Dividends paid - - - - (101.7) (101.7)
Purchase of shares by EBT - (0.1) - - (13.1) (13.2)
Share-based payments - - - - 9.6 9.6
Current tax - - - - 1.0 1.0
Deferred tax - - - - 1.0 1.0
--------- -------- -------- ------------ --------- -------
Total transactions with owners - - - - (102.9) (102.9)
--------- -------- -------- ------------ --------- -------
Balance at 30 June 2017 9.2 (0.2) 8.0 2.7 563.0 582.7
========= ======== ======== ============ ========= =======
Notes to the Group financial statements - Equity
================================================
4.1 SHARE CAPITAL
30 June 2017 30 June 2016 31 December
2016
GBPm GBPm GBPm
457.7m ordinary shares of 2p each 9.2 9.2 9.2
------------ ------------ ------------
9.2 9.2 9.2
============ ============ ============
4.2 RESERVES
(i) Own share reserve
At 30 June 2017, 7.7m (2016 H1: 7.6m, 2016: 9.5m) ordinary
shares, with a par value of GBP0.2m (2016 H1: GBP0.2m, 2016:
GBP0.2m), were held as own shares within the Group's EBT for the
purpose of satisfying share option obligations to employees.
(ii) Other reserve
The other reserve of GBP8.0m (2016 H1: GBP8.0m, 2016: GBP8.0m)
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. In 2016, GBP5.0m was
transferred to the income statement following the liquidation of
overseas subsidiaries.
4.3 DIVIDS
On 7 April 2017 the Group paid a final dividend for 2016 of
10.2p per ordinary share and a special dividend for 2016 of 12.5p
per ordinary share. This amounted to a total payment of GBP101.7m
after taking into account the GBP2.2m dividends waived on shares
held in the EBT.
The Board has declared an interim dividend for the period of
6.8p per ordinary share. This dividend will be paid on 30 August
2017 to ordinary shareholders on the register at close of business
on 4 August 2017.
Section 5: Other notes
======================
Notes to the Group financial statements - Other
===============================================
Within this Interim Report and Accounts, all current and
comparative data covering periods to (or as at) 30 June are
unaudited. Data given in respect of the year ended 31 December 2016
is audited.
5.1 BASIS OF PREPARATION
These condensed interim financial statements for the period
ended 30 June 2017 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 2016, 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 2016 were approved by the Board on 23 February 2017 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 operating for a period of
at least 12 months from the balance sheet date. 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 funds consolidated by the Group
in these financial statements are the same as those consolidated by
the Group in the annual financial statements for 2016.
Forthcoming standards applicable to the Group
IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts
with Customers will become applicable from 1 January 2018. The
expected impact of these standards is being assessed and further
quantitative information will be included within the Group's Annual
Report and Accounts 2017.
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 2016.
5.3 FINANCIAL INSTRUMENTS
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 the 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 2017, 30 June 2016 and 31 December 2016,
materially all financial instruments held by the Group were
classified as Level 1.
5.4 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 2016 and have taken place on an arm's length
basis. No new related parties or related party transactions that
materially affect the financial position or performance of the
Group existed during the period.
5.5 PRINCIPAL RISKS AND MITIGATIONS
The Board has ultimate responsibility for risk management across
the Group and for determining an appropriate risk appetite, as well
as the tolerances within which we must operate. This is defined as
the amount and type of risk we are willing to accept in order to
achieve our strategic and business objectives. 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, 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 has a comprehensive approach to identifying,
monitoring, managing and mitigating risk through our Enterprise
Risk Management framework. This framework clearly defines essential
information about the Group's risks and provides a process for
escalation through our governance structure, which enables
continuous and robust oversight by the Board.
Brexit contingency planning
The potential impact of Brexit is being proactively managed by
the progression of plans to establish a Management Company within
the European Union and to ensure appropriate MiFID authorisation
will be in place to cover potential passporting issues in the event
of a hard Brexit.
Critical outsource partners
We perform oversight on our critical outsource providers based
on key risk principles defined within our supplier management
framework. This ensures an appropriate level of scrutiny is given
to those suppliers and services that are critical to Jupiter. The
redesign of the controls environment at both Jupiter and our third
party provider to ensure compliance with the FRC's Client Assets
(CASS) Assurance Standards has been completed.
Cyber security
We continue to invest in our IT infrastructure and employee
training and awareness initiatives to ensure our resilience to a
potential cyber-attack remains robust. This is complemented by the
use of external cyber security specialists and our participation in
industry and regulatory-led forums so we are aware and able to
respond to the latest threats and industry trends. This defence in
depth approach ensures we remain well positioned to mitigate the
increasingly complex and sophisticated threat.
The principal risks to which the Group will be exposed in the
second half of 2017 are substantially the same as those outlined in
the Annual Report and Accounts for the year ended 31 December 2016,
and are provided below.
STRATEGIC RISK Current
impact rating
----------------------------------------------------------------- ---------------
MEDIUM
* Failure to deliver strategy
The risk of failure to achieve our strategic objectives
which would impair our ability to deliver value to our
stakeholders.
-----------------------------------------------------------------
LOW
* Ability to attract and retain critical staff
The risk of failure to attract or retain the people critical
to successfully executing our strategy, including continuing
to deliver investment outperformance.
LOW
* Changes in distribution trends
The risk of client demand switching to products we do
not provide. The risk of critical distribution partner
relationships no longer generating client demand or retaining
clients.
INVESTMENT RISK
LOW
* Sustained market declines
The risk of a severe market and economic downturn which
affects all fund managers and all asset types across all
geographic markets.
LOW
* Sustained fund underperformance
There is a risk that our clients will not meet their investment
objectives, due to poor relative performance by one or
more of our funds.
OPERATIONAL RISK
LOW
* Failure to enhance operating platform to support
future business requirements
Failure to make the investment and changes required to
maintain a scalable and robust operating platform fit for
running and growing our business.
MEDIUM
* Operational control environment
We could suffer a material error executing a key business
process, or from our systems or business premises being
unavailable.
HIGH
* Failure of critical outsource partner
The failure or non-performance of a third party provider
who we rely on for business processing may lead to us failing
to deliver the required service to our clients and/or regulatory
non-compliance.
MEDIUM
* Cyber crime
The risk that a successful cyber-attack or fraud attempt
could result in the loss of clients' assets or data or
cause significant disruption to key systems.
REGULATORY RISK
MEDIU
* Regulatory change
The risk that changes in regulation restrict or impact
our ability to do business or that we fail to implement
changes required to meet new regulatory requirements.
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 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 profits of the Group for the period ended 30 June
2017.
-- The interim report includes a fair review of the information required by:
a) DTR 4.2.7R of the Guidance, 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 Guidance, 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.
-- A list of the Directors of Jupiter Fund Management plc can be
found in the Annual Report and Accounts for the year ended 31
December 2016. A current list of Directors is maintained on the
website at www.jupiteram.com.
On behalf of the Board
Maarten Slendebroek
Chief Executive Officer
25 July 2017
Independent review report to Jupiter Fund Management plc
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed Jupiter Fund Management plc's condensed
consolidated interim financial statements (the 'interim financial
statements') in the interim report and accounts of Jupiter Fund
Management plc for the 6 month period ended 30 June 2017. Based on
our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in
all material respects, in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the
European Union and the Disclosure Rules and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
-- The consolidated balance sheet as at 30 June 2017;
-- The consolidated income statement and the 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 interim financial statements.
The 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 Rules and Transparency
Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 5.1 to the interim financial statements,
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.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The interim report and accounts, including the 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 Rules and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
Our responsibility is to express a conclusion on the 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 Rules and Transparency Rules of the United
Kingdom's 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.
What a review of interim 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 interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
London
25 July 2017
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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