TIDMJUP
RNS Number : 9396V
Jupiter Fund Management PLC
27 July 2018
Jupiter Fund Management plc
Interim Report and Accounts
Highlights
==========
27 July 2018
-- 80% of mutual fund assets under management outperforming the median over three years
-- Net fund outflows of GBP2.3bn
-- Assets under management down 4% to GBP48.2bn
-- Profit before tax increased by 3% to GBP96.5m
-- Basic earnings per share increased by 3% to 17.3p
-- Net management fees up 7% to GBP199.2m(1)
-- Interim dividend per share increased by 16% to 7.9p.
Six months ended Six months ended Year ended
30 June 2018 30 June 2017 31 December 2017
====================================== ================ ================ =================
Assets under management (AUM) (GBPbn) 48.2 46.9 50.2
======================================= ================ ================ =================
Net (outflows)/inflows (GBPbn) (2.3) 3.6 5.5
======================================= ================ ================ =================
Net management fees(1) (GBPm) 199.2 186.5 392.4
======================================= ================ ================ =================
Profit before tax (GBPm) 96.5 93.9 192.9
======================================= ================ ================ =================
Basic earnings per share (p) 17.3 16.8 34.5
Interim dividend per share (p) 7.9 6.8 6.8
======================================= ================ ================ =================
Adjusted cost/income ratio(1) 54% 54% 54%
======================================= ================ ================ =================
(1) The Group's use of alternative performance measures is
explained on page 7.
Maarten Slendebroek, Chief Executive, commented:
"The first half of 2018 reflected a more challenging operating
environment against a more volatile global geopolitical backdrop.
Despite net outflows in the period, it is clear our resilient
business model and strong balance sheet continue to deliver for all
our stakeholders. In 2018 we reaffirmed our strategy of delivering
active outperformance for our clients through a diversified
operating model based on a culture of accountability, high
performance and independent thinking."
Analyst presentation
There will be an analyst presentation at 9.00am on 27 July
2018.
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 Matthew Attwood at Powerscourt on +44
(0)20 3328 9383 or at Matthew.Attwood@powerscourt-group.com.
Alternatively, sign up online to access the live audiocast using
the following link:
https://secure.emincote.com/client/jupiter/jfm007
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/Investor Kate O'Neill/Corporate
Relations Communications
+44 (0)20 3817 1534/1065 +44 (0)20 3817 1196/1278
Powerscourt Justin Griffiths Matthew Attwood
+44 (0)20 7549 0741 +44 (0)20 3328 9383
LEI Number: 5493003DJ1G01IMQ7S28
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 2018 reflected a more challenging operating
environment against a more volatile global geopolitical backdrop.
Despite net outflows in the period, our resilient business model
continues to deliver for all our stakeholders through strong active
outperformance, client-led solutions and products and solid
financial returns.
This challenging start to the year led to net outflows during
the six months to 30 June 2018 totalling GBP2.3bn, versus the
inflows of GBP3.6bn recorded in the first half of 2017. Mutual fund
outflows of GBP1.9bn (H1 2017: GBP3.4bn inflows) were driven by
redemptions from a single product within our fixed income strategy,
reflecting both the fund's current defensive positioning and a
wider industry trend of fixed income outflows in most markets.
Excluding this single product, gross inflows remained strong across
the rest of our range. The European Fund saw healthy inflows in the
first half of 2018 and 11 of our mutual funds are over GBP1bn in
size, together accounting for GBP32.6bn of invested assets.
Our net outflows, partially offset by positive market movements
and alpha generation by our fund managers, resulted in a 4%
decrease in AUM to GBP48.2bn.
Performance
Delivering performance after fees for our clients is what we do
as a business. Three-year investment performance after all fees
remains a key indicator for future flows. In the three years to 30
June 2018, 80% of mutual fund AUM was above median after all fees.
This compares with an equivalent level of 81% recorded at the end
of 2017.
Business development
We have a straightforward active asset management strategy
within which delivering investment outperformance to clients
remains the key driver of our business and continued
diversification through products and geographical reach is the
enabler of future growth. We launched the Global Sustainable
Equities, Global Value and Merlin Real Return funds in the period
in response to strong client demand and expanded our Multi-Asset
and Alternative capabilities by hiring two new fund managers in
these areas. As part of our continued geographical diversification,
we opened an office in the Netherlands. Our continued investment
for growth means that our upgraded infrastructure is already
delivering benefits.
Financial results
Profit before tax was GBP96.5m compared with GBP93.9m at the end
of June 2017 while basic earnings per share were 17.3p, 3% higher
than the 16.8p recorded in the first half of 2017. Our continual
focus on an efficient operating model allows us to use business
growth to continuously invest in the business whilst maintaining
earnings growth.
Net revenues during the first six months of 2018 totalled
GBP214.8m, up 10% on the GBP195.4m reported in the first half of
2017. This reflects strong growth of 7% in management fees to
GBP199.2m (H1 2017: GBP186.5m) driven by higher average asset
values due to strong asset appreciation from markets and investment
outperformance. Net initial charges accounted for GBP1.5m of
revenues, of which box profits were GBP0.7m. This portion of our
revenues is significantly lower than in H1 2017 following the
pricing changes we announced in February 2017 with box profits
ceasing during January of this year. Performance fees of GBP14.1m
crystallised during the period against GBP0.8m in the first half of
2017.
The net management fee margin dropped 3bps from 86bps to 83bps
at the end of June 2018, a natural consequence of our changing
business mix, driven both by our continually changing product mix
as well as the difference in price between assets being brought
onto the overall book and those assets being redeemed. Longer-term,
we continue to guide to revenue margins declining by 1-2 basis
points a year.
We have maintained our disciplined approach to cost management,
making further investments in our business as we grow and
diversify, 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 remained broadly stable in this period of
investment, with headline costs totalling GBP73.4m (37% of net
management fees) against GBP63.3m in the first half of 2017 (34% of
net management fees). If the effect of bringing research costs onto
our own account is excluded, this ratio would be at 35%. As is
usual for a business such as ours, we would expect our fixed costs
to trend higher in the second half of 2018.
Variable staff costs remain within guidance with our variable
compensation ratio hovering around 30%. Total variable staff costs
were GBP42.1m in the first half of 2018 against GBP38.2m in the
first half of 2017.
Our adjusted cost/income ratio, as a measure of our overall
operating margin, remains stable at 54% and is in line with our
expected longer-term ratio of around 55%.
Capital management
Jupiter's balance sheet remains resilient with a healthy
indicative capital surplus of GBP87m after providing for dividends
and a robust free cash position. We are actively managing our
seeding portfolio, with GBP80m of our own capital deployed in this
way at 30 June 2018, and further investments expected as part of
supporting new fund launches in the second half of the year.
Our balance sheet strength enables us to maintain our
progressive dividend policy, which targets a full year ordinary
pay-out of 50% of our underlying earnings per share and a special
dividend payment which distributes capital not needed elsewhere in
the business. As per last year, we continue our practice of putting
a significant weighting of the ordinary dividend into our interim
payment, which remains at just under 50% of the 2017 ordinary
dividend.
Outlook
In 2018 we reaffirmed our strategy of delivering active
outperformance for our clients through a diversified operating
model based on a culture of accountability, high performance and
independent thinking. We believe that this strategy will continue
to deliver growth in AUM and earnings over the cycle resulting in
progressive returns for our shareholders.
Maarten Slendebroek
Chief Executive Officer
26 July 2018
Business review
===============
Assets under management ("AUM") and flows
Movement in AUM by product across the
period
================================================ ============= =============== =======
31 December 30 June
2017 Q1 net flows Q2 net flows Market movement 2018
GBPm GBPm GBPm GBPm GBPm
==================== =========== ============= ============= =============== =======
Mutual funds 43,745 (929) (995) 177 41,998
==================== =========== ============= ============= =============== =======
Segregated mandates 5,208 (306) (17) 76 4,961
==================== =========== ============= ============= =============== =======
Investment trusts 1,227 (15) (5) 69 1,276
==================== =========== ============= ============= =============== =======
Total 50,180 (1,250) (1,017) 322 48,235
==================== =========== ============= ============= =============== =======
AUM decreased by 4% to GBP48.2bn as at 30 June 2018 (31 December
2017: GBP50.2bn) as a result of net outflows of GBP2.3bn partially
offset by positive market movements.
Net mutual fund outflows were GBP1.9bn during the period. Our
Fixed Income strategy, responsible for the majority of 2017's
inflows, experienced two quarters of outflows, with clients
withdrawing a net GBP2.3bn of assets in the period. Several other
strategies contributed net inflows in the period, with European
Growth and Value Equities experiencing the biggest net sales.
Geographically, mutual fund flows in the UK were broadly flat, but
we saw net outflows in Asia and Europe. Segregated mandates were
impacted by a single institutional client rebalancing its portfolio
in the first quarter.
Investment performance
At 30 June 2018, 80% of our mutual fund AUM had delivered
above-median performance over three years (31 December 2017: 81% of
mutual fund AUM). Measured over one year, 58% of mutual fund AUM
(31 December 2017: 47% of mutual fund AUM) delivered above median
performance.
Financial review
================
RESULTS FOR THE PERIOD
Net revenue Six months Six months Year ended
ended 30 ended 30 31 December
June 2018 June 2017 2017
GBPm GBPm GBPm
Management fees 224.3 210.0 441.6
Fee expenses (25.1) (23.5) (49.2)
------------- ----------- -------------
Net management fees 199.2 186.5 392.4
Initial charges and commissions
(excluding box profits) 1.2 1.7 3.1
Commission expenses (0.4) (0.8) (1.5)
------------- ----------- -------------
Net initial charges (excluding
box profits) 0.8 0.9 1.6
Performance fees 14.1 0.8 1.9
------------- ----------- -------------
Net revenue before box profits 214.1 188.2 395.9
Box profits 0.7 7.2 13.6
------------- ----------- -------------
Total 214.8 195.4 409.5
============= =========== =============
Net revenue for the period was GBP214.8m (2017 H1: GBP195.4m),
up 10% on 2017 H1 as higher average AUM boosted management fees and
performance fees outweighed the loss of box profits (which ceased
in January 2018) following the Group's decision to move to single
pricing in its unit trust range.
Six months Six months Year ended
ended 30 ended 30 31 December
June 2018 June 2017 2017
Net management fees (GBPm) 199.2 186.5 392.4
Average AUM (GBPbn) 48.6 43.8 46.2
Net management fee margin (bps) 83 86 85
Net management fees increased to GBP199.2m (2017 H1: GBP186.5m)
as a result of higher average AUM principally driven by strong
asset appreciation from markets and investment outperformance.
The Group's net management fee margin for the period was 83
basis points, down by 3 basis points on the first half of 2017 as a
result of the 2018 impact of growth in our lower margin fixed
income product range in the second half of 2017. 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 GBP0.8m (2017 H1:
GBP0.9m) decreased marginally. Performance fees of GBP14.1m (2017
H1: GBP0.8m) were principally earned in a single fund.
Administrative expenses
Six months Six months Year ended
ended 30 ended 30 31 December
June 2018 June 2017 2017
GBPm GBPm GBPm
Fixed staff costs 29.5 26.9 54.3
Other expenses 43.9 36.4 77.8
----------- ----------- -------------
Operating expenses 73.4 63.3 132.1
Variable staff costs 42.1 38.2 82.7
----------- ----------- -------------
Administrative expenses 115.5 101.5 214.8
=========== =========== =============
Administrative expenses of GBP115.5m (2017 H1: GBP101.5m) were
GBP14.0m higher than 2017 H1. Operating expenses of GBP73.4m (2017
H1: GBP63.3m) increased 16% primarily due to costs associated with
investments in our operating platform and the recognition of
research costs in the Group's income statement for the first time,
as explained in our 2017 Annual Report and Accounts.
The increase in fixed staff costs of GBP2.6m relates to new
hires in the fund management and distribution teams and other
structural changes to our workforce.
Six months Six months Year ended
ended 30 ended 30 31 December
June 2018 June 2017 2017
GBPm GBPm GBPm
Cash bonus 22.2 22.7 41.6
Other variable compensation 19.9 15.5 41.1
Total 42.1 38.2 82.7
=========== =========== =============
Variable compensation ratio 29.8% 28.9% 29.8%
=========== =========== =============
Total compensation ratio 33.3% 33.3% 33.5%
=========== =========== =============
At the half year, variable staff costs of GBP42.1m (2017 H1:
GBP38.2m) are calculated based on expected full-year variable
compensation ratios. The charge relates to both the amortisation of
deferred awards made in prior years and also to future compensation
expected to be awarded. This cost therefore may change, dependant
on results in the second half of the year. Accrued cash bonus costs
at GBP22.2m are in line with the prior year (2017 H1: GBP22.7m).
Other variable compensation charges have increased by GBP4.4m to
GBP19.9m because of increased charges for deferred awards from
prior years, partially offset by lower accruals for social security
costs on unexercised share awards.
Variable compensation as a proportion of net revenue less
operating expenses is 29.8% (2017 H1: 28.9%), in line with 2017 as
a whole. 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 GBP1.0m (2017 H1: GBP1.5m) relates primarily to
amortisation of intangible assets in 2018.
Profit before tax (PBT)
PBT for the period increased by 3% to GBP96.5m (2017 H1:
GBP93.9m) as the anticipated reduction in box profits from GBP7.2m
to GBP0.7m and the recognition of research costs of GBP2.7m were
more than offset by increased management and performance fees.
Tax
The effective tax rate was 19.7% (2017 H1: 19.8%, 2017: 19.8%)
against a headline corporation tax rate of 19% (2017 H1: 19.25%,
2017: 19.25%).
Earnings per share (EPS)
EPS was up 3% on 2017 H1 at 17.3p (2017 H1: 16.8p). Underlying
EPS, defined as underlying profit after tax divided by the number
of shares in issue (see page 7), is used by the Board to determine
the ordinary dividend and was up 2% at 17.1p (2017 H1: 16.7p).
CASH FLOW
The Group generated positive operating cash flows after tax in
2018 H1 of GBP113.3m (2017 H1: GBP78.2m). GBP115.6m was spent on
final and special dividend payments to shareholders in respect of
the previous year's profit and GBP13.3m 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
GBP12.3m.
ASSETS AND LIABILITIES
Balance sheet
At 30 June 2018, the Group held cash of GBP221.9m (31 December
2017: GBP234.2m), as trading profits were offset by the payment of
the 2017 compensation round and the final and special dividends. We
continue to expect a high percentage of earnings from the Group's
operations to result in cash inflows.
The Group has no debt (31 December 2017: GBPnil). The revolving
credit facility of GBP50m was not drawn in the period.
Seed investments
We deploy seed into funds to ensure an effective launch and to
accelerate the timescale over which the funds can pass through
critical size thresholds. As at 30 June 2018, we had a total
investment at fair value of GBP83.4m in our own funds (31 December
2017: GBP96.6m). This excludes GBP18.9m 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
investments, with all seed investments either hedged or invested in
absolute return or fixed income 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 GBP13.7m to GBP596.4m
between 30 June 2017 and 30 June 2018, 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 and its strategy for capital management is
unchanged.
From 1 January 2019, a new accounting standard requires us to
capitalise our operating leases, creating an additional illiquid
asset which is required to be deducted from our available capital.
We are expecting this additional deduction to be in the region of
GBP50m.
Dividends
Jupiter has a progressive ordinary dividend policy, and our
intention is for the ordinary dividend pay-out ratio to be 50% of
underlying EPS 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.
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 7.9p (2017 H1: 6.8p).
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 revenue
before box profits
Net management Net management fees divided Page 4 A
fee margin by average AUM
Net management Management fees less fee Page 4 A
fees expenses
Net revenue Revenue less fee and commission Page 8 A
expenses
Operating expenses Administrative expenses Page 5 C
less variable staff costs
Ordinary dividends Interim and final dividends Not applicable B
per share (does not include any
"special" dividends)
Total compensation Total staff costs as a Page 5 C
ratio proportion of net revenue
Underlying EPS Profit before tax less Not applicable D
tax at the weighted average
UK corporation tax rate
divided by the number
of issued shares
Variable compensation Variable staff costs as Page 5 C
ratio a proportion of net revenue
less operating expenses
*Amortisation arising from acquisitions and non-recurring costs
were nil in H1 2018 (H1 2017: GBP0.7m; FY 2017: GBP0.7m).
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.
D. used by the Board to determine the Group's ordinary dividend.
Also used in the measurement of one of the criteria for legacy
share-based awards to senior staff with performance conditions.
All APMs relate to past performance.
Changes in the use of APMs
1. In prior periods, the adjusted cost/income ratio used net
management fees as its denominator. The advantage of using this
measure rather than net revenue is that it excludes box profits,
which did not generally vary in line with costs and which were
therefore not a meaningful contributor to the ratio. In the current
period, we have changed the denominator to net revenue before box
profits. This enables us to continue to exclude box profits
(although these ceased in January 2018), but also include
performance fees, which significantly impact administrative
expenses. The change in measure has no impact on previously
reported comparative ratios.
2. The Group has previously used underlying administrative
expenses, underlying profit before tax (PBT) and underlying EPS as
performance measures, principally to present users of the accounts
with a clear view of what the Group considers to be the results of
its underlying operations, thereby enabling consistent period on
period comparisons and making it easier for users of the accounts
to identify trends. There are currently no material differences
between Jupiter's underlying APMs and actual IFRS measures. As a
result, underlying administrative expenses and underlying PBT have
been removed as performance measures. We have retained the use of
underlying EPS as it is a component in the calculation of the
Group's ordinary dividends per share.
3. We have discontinued the use of operating earnings as an APM.
This measure, defined as net revenue less administrative expenses,
had been used as a subtotal on the face of the Group's income
statement but, because it was not widely used internally to assess
the Group's performance or as a component of other APMs, the Group
feels it is not necessary to continue using or quantifying this
term.
Jupiter Fund Management plc
Financial Statements
Section 1: Results for the period
=================================
Consolidated income statement for the period ended 30 June 2018
===============================================================
Six months ended Six months ended Year ended
30 June 2018 30 June 2017 31 December 2017
Notes GBPm GBPm GBPm
Revenue 1.1 240.3 219.7 460.2
Fee and commission expenses 1.1 (25.5) (24.3) (50.7)
---------------- ---------------- ---------------------------
Net revenue 1.1 214.8 195.4 409.5
Administrative expenses (115.5) (101.5) (214.8)
Other (losses)/gains 1.3 (1.7) 1.5 0.6
Amortisation of intangible assets 3.2 (1.0) (1.5) (2.3)
---------------- ---------------- ---------------------------
Operating profit 96.6 93.9 193.0
Finance income - 0.1 0.1
Finance costs (0.1) (0.1) (0.2)
Profit before taxation 96.5 93.9 192.9
Income tax expense 1.4 (19.0) (18.6) (38.1)
Profit for the period 77.5 75.3 154.8
================ ================ ===========================
Earnings per share
Basic 1.5 17.3p 16.8p 34.5p
Diluted 1.5 16.9p 16.3p 33.7p
Consolidated statement of comprehensive income for the period
ended 30 June 2018
=============================================================
Six months ended 30 June Six months ended 30 June Year ended
2018 2017 31 December 2017
Notes GBPm GBPm GBPm
Profit for the period 77.5 75.3 154.8
--------------------------- --------------------------- -----------------
Items that may be
reclassified subsequently
to profit or loss
Exchange movements on
translation of subsidiary
undertakings 4.2 - (0.1) (0.2)
Other comprehensive
income/(loss) for the
period net of tax - (0.1) (0.2)
--------------------------- --------------------------- -----------------
Total comprehensive income
for the period net of
tax 77.5 75.2 154.6
=========================== =========================== =================
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, Luxembourg, the Netherlands,
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.
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. Box profits, discontinued in early 2018, represented
profits earned on dealing within the unit trust manager's box.
Six months Six months Year ended
ended ended 31 December
30 June 2018 30 June 2017 2017
GBPm GBPm GBPm
Management fees 224.3 210.0 441.6
Initial charges and commissions 1.2 1.7 3.1
Performance fees 14.1 0.8 1.9
Revenue 239.6 212.5 446.6
Fee and commission expenses (25.5) (24.3) (50.7)
------------- ------------- -------------
Net revenue before box profits 214.1 188.2 395.9
Box profits 0.7 7.2 13.6
Total net revenue 214.8 195.4 409.5
============= ============= =============
1.2 SEGMENTAL REPORTING
The Group offers a range of products and services through
different distribution channels. All financial, business and
strategic decisions are made centrally by the Board of Directors
(the Board), which determines the key performance indicators of the
Group. Information is reported to the chief operating decision
maker, the Board, on a single segment basis. While the Group has
the ability to analyse its underlying information in different
ways, for example by product type, this information is only used to
allocate resources and assess performance for the Group as a whole.
On this basis, the Group considers itself to be a single-segment
investment management business.
1.3 OTHER (LOSSES)/GAINS
Six months ended Six months ended Year ended
30 June 2018 30 June 2017 31 December 2017
GBPm GBPm GBPm
Dividend income 0.2 0.2 0.5
Other (1.9) 1.3 0.1
Total other (losses)/gains (1.7) 1.5 0.6
================ ================ ==================
1.4 INCOME TAX EXPENSE
Analysis of charge in the period:
Six months ended Six months ended Year ended
30 June 2018 30 June 2017 31 December 2017
GBPm GBPm GBPm
Current tax - UK corporation tax
Tax on profits for the period 17.7 17.4 40.2
Adjustments in respect of prior periods (0.2) - (1.1)
---------------- ---------------- ------------------
17.5 17.4 39.1
Deferred tax
Origination and reversal of temporary differences 1.5 1.2 (2.2)
Adjustments in respect of prior periods - - 1.2
1.5 1.2 (1.0)
Total income tax expense 19.0 18.6 38.1
================ ================ ==================
The weighted average UK corporation tax rate for the period
ended 30 June 2018 was 19% (2017 H1: 19.25%, 2017: 19.25%).
1.5 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:
Number of shares (all weighted averages) Six months Six months Year ended
ended ended 31 December
30 June 2018 30 June 2017 2017
Number Number Number
m m m
Issued share capital 457.7 457.7 457.7
Less: own shares held (8.5) (9.0) (8.9)
Number of ordinary shares for the
purpose of basic EPS 449.2 448.7 448.8
Add: dilutive potential shares 10.6 11.3 10.9
Number of ordinary shares for the
purpose of diluted EPS 459.8 460.0 459.7
============= ============= =============
Earnings per share Six months Six months Year ended
ended ended 31 December
30 June 2018 30 June 2017 2017
p p p
Basic 17.3 16.8 34.5
Diluted 16.9 16.3 33.7
Section 2: Consolidated statement of cash flows
===============================================
Consolidated statement of cash flows for the period ended 30
June 2018
============================================================
Six months ended 30 June Six months ended 30 June Year ended
2018 2017 31 December 2017
Notes GBPm GBPm GBPm
Cash flows from operating
activities
Cash generated from
operations 2.1 128.2 97.7 233.3
Income tax paid (14.9) (19.5) (38.7)
--------------------------- ---------------------------- ------------------
Net cash inflows from
operating activities 113.3 78.2 194.6
Cash flows from investing
activities
Purchases of property, plant
and equipment 3.3 (0.9) (0.3) (0.9)
Purchase of intangible
assets 3.2 (0.9) (2.3) (4.3)
Purchase of financial assets
at fair value through
profit or loss (FVTPL) (68.6) (21.2) (125.7)
Proceeds from disposal of
financial assets at FVTPL 77.7 20.0 65.1
Dividend income received 1.4 0.2 2.2
Finance income received - 0.1 0.1
Net cash inflows/(outflows)
from investing activities 8.7 (3.5) (63.5)
Cash flows from financing
activities
Dividends paid 4.3 (115.6) (101.7) (132.2)
Purchase of shares by EBT (13.3) (13.2) (26.4)
Finance costs paid (0.1) (0.1) (0.2)
Third-party subscriptions
into consolidated funds 26.1 2.3 21.3
Third-party redemptions from
consolidated funds (30.5) (0.7) (17.7)
Distributions paid by
consolidated funds (0.9) (0.1) (0.6)
Net cash outflows from
financing activities (134.3) (113.5) (155.8)
Net decrease in cash and
cash equivalents (12.3) (38.8) (24.7)
Cash and cash equivalents at
beginning of the period 234.2 258.9 258.9
Cash and cash equivalents at
end of the period 3.5 221.9 220.1 234.2
=========================== ============================ ==================
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 2018 30 June 2017 2017
GBPm GBPm GBPm
Operating profit 96.6 93.9 193.0
Adjustments for:
Amortisation of intangible assets 1.0 1.5 2.3
Depreciation of property, plant
and equipment 1.1 1.1 2.1
Other losses/(gains) 1.6 (3.3) (8.4)
Share-based payments 10.4 9.6 27.0
Cash inflows on exercise of share
options 0.3 0.3 1.5
Decrease/(increase) in trade and
other receivables 14.3 (49.7) (21.5)
Increase in trade and other payables 2.9 44.3 37.3
Cash generated from operations 128.2 97.7 233.3
============= ============= =============
2.2 CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
Six months Six months Year ended
ended ended 31 December
30 June 2018 30 June 2017 2017
Notes GBPm GBPm GBPm
Brought forward at 1 January 3.4 36.4 13.0 13.0
Changes from financing cash
flows - 0.1 3.0
Changes arising from obtaining
or losing control of subsidiaries 4.4 2.6 15.4
Changes in fair values 2.3 2.2 5.0
------------- ------------- -------------
3.4 43.1 17.9 36.4
============= ============= =============
Section 3: Assets and liabilities
=================================
Consolidated balance sheet at 30 June 2018
==========================================
30 June 2018 30 June 2017 31 December 2017
Notes GBPm GBPm GBPm
Assets
Non-current assets
Goodwill 3.1 341.2 341.2 341.2
Intangible assets 3.2 5.9 4.8 6.0
Property, plant and equipment 3.3 7.4 8.1 7.6
Deferred tax assets 10.8 11.3 16.6
Trade and other receivables 0.7 0.9 0.7
------------ ------------ ----------------
366.0 366.3 372.1
Current assets
Investments in associates 3.4 14.4 6.8 32.2
Financial assets at FVTPL 3.4 127.7 78.6 110.4
Trade and other receivables 127.3 147.4 141.3
Cash and cash equivalents 3.5 221.9 220.1 234.2
------------ ------------ ----------------
491.3 452.9 518.1
------------ ------------ ----------------
Total assets 857.3 819.2 890.2
============ ============ ================
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 2.6 2.7 2.6
Retained earnings 576.8 563.0 620.7
------------ ------------ ----------------
Total equity 596.4 582.7 640.3
============ ============ ================
Liabilities
Non-current liabilities
Trade and other payables 14.4 7.4 9.5
Deferred tax liabilities 0.4 0.4 0.3
------------ ------------ ----------------
14.8 7.8 9.8
Current liabilities
Financial liabilities at FVTPL 3.4 43.2 17.9 36.6
Trade and other payables 187.5 198.7 189.6
Current income tax liability 15.4 12.1 13.9
246.1 228.7 240.1
Total liabilities 260.9 236.5 249.9
============ ============ ================
Total equity and liabilities 857.3 819.2 890.2
============ ============ ================
Notes to the Group financial statements - Assets and liabilities
================================================================
3.1 GOODWILL
Goodwill relates to the 2007 acquisition of Knightsbridge Asset
Management Limited.
30 June 2018 30 June 2017 31 December
2017
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 (2017 H1:
GBPnil, 2017: GBPnil).
3.2 INTANGIBLE ASSETS
30 June 2018 30 June 2017 31 December
2017
GBPm GBPm GBPm
Computer software 5.9 4.8 6.0
------------ ------------ -----------
5.9 4.8 6.0
============ ============ ===========
The amortisation charge for the period was GBP1.0m (2017 H1:
GBP1.5m, 2017: GBP2.3m). The Group acquired software during the
period with a value of GBP0.9m (2017 H1: GBP2.3m, 2017:
GBP4.3m).
3.3 PROPERTY, PLANT AND EQUIPMENT
The net book value of property, plant and equipment at 30 June
2018 was GBP7.4m (2017 H1: GBP8.1m, 2017: GBP7.6m). During the
period, the Group acquired property, plant and equipment with a
value of GBP0.9m (2017 H1: GBP0.3m, 2017: GBP0.9m).
3.4 FINANCIAL INSTRUMENTS HELD AT FAIR VALUE
As at 30 June 2018, 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
2018 2017 2017
GBPm GBPm GBPm
Investments in associates 14.4 6.8 32.2
Financial assets at FVTPL 127.7 78.6 110.4
Financial liabilities at FVTPL
- non-controlling interests (43.1) (17.9) (36.4)
Financial liabilities at FVTPL
- derivatives (0.1) - (0.2)
------- ------- -----------
98.9 67.5 106.0
======= ======= ===========
3.5 CASH AND CASH EQUIVALENTS
30 June 30 June 31 December
2018 2017 2017
GBPm GBPm GBPm
Cash at bank and in hand 214.2 183.2 195.8
Short-term deposits - 30.0 30.0
Cash held by EBT and seed capital
subsidiaries 7.7 6.9 8.4
------- ------- ------------
221.9 220.1 234.2
======= ======= ============
Section 4: Equity
=================
Consolidated statement of changes in equity for the period ended
30 June 2018
================================================================
Foreign
Own currency
Share share Other translation Retained
capital reserve reserve reserve earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm
--------- -------- -------- ------------ --------- -------
At 1 January 2017 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
========= ======== ======== ============ ========= =======
Profit for the period - - - - 79.5 79.5
Exchange movements on translation of subsidiary
undertakings - - - (0.1) - (0.1)
Other comprehensive income - - - (0.1) - (0.1)
--------- -------- -------- ------------ --------- -------
Total comprehensive income - - - (0.1) 79.5 79.4
--------- -------- -------- ------------ --------- -------
Vesting of ordinary shares and options - - - - 1.1 1.1
Dividends paid - - - - (30.5) (30.5)
Purchase of shares by EBT - - - - (13.2) (13.2)
Share-based payments - - - - 17.1 17.1
Current tax - - - - 0.5 0.5
Deferred tax - - - - 3.2 3.2
--------- -------- -------- ------------ --------- -------
Total transactions with owners - - - - (21.8) (21.8)
--------- -------- -------- ------------ --------- -------
Balance at 31 December 2017 9.2 (0.2) 8.0 2.6 620.7 640.3
========= ======== ======== ============ ========= =======
Profit for the period - - - - 77.5 77.5
Exchange movements on translation of subsidiary
undertakings - - - - - -
Other comprehensive income - - - - - -
--------- -------- -------- ------------ --------- -------
Total comprehensive income - - - - 77.5 77.5
--------- -------- -------- ------------ --------- -------
Vesting of ordinary shares and options - 0.1 - - 0.3 0.4
Dividends paid - - - - (115.6) (115.6)
Purchase of shares by EBT - (0.1) - - (13.2) (13.3)
Share-based payments - - - - 10.3 10.3
Current tax - - - - 1.1 1.1
Deferred tax - - - - (4.3) (4.3)
--------- -------- -------- ------------ --------- -------
Total transactions with owners - - - - (121.4) (121.4)
--------- -------- -------- ------------ --------- -------
Balance at 30 June 2018 9.2 (0.2) 8.0 2.6 576.8 596.4
========= ======== ======== ============ ========= =======
Notes to the Group financial statements - Equity
================================================
4.1 SHARE CAPITAL
30 June 2018 30 June 2017 31 December
2017
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 2018, 7.2m (2017 H1: 7.7m, 2017: 9.5m) ordinary
shares, with a par value of GBP0.2m (2017 H1: GBP0.2m, 2017:
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 (2017 H1: GBP8.0m, 2017: GBP8.0m)
relates to the conversion of Tier 2 preference shares in 2010.
(iii) Foreign currency translation reserve
The foreign currency translation reserve of GBP2.6m (2017 H1:
GBP2.7m, 2017: GBP2.6m) is used to record exchange differences
arising from the translation of the financial statements of foreign
subsidiaries.
4.3 DIVIDS
On 6 April 2018 the Group paid a full-year dividend for 2017 of
10.3p per ordinary share and a special dividend for 2017 of 15.5p
per ordinary share. This amounted to a total payment of GBP115.6m
after taking into account the GBP2.4m dividends waived on shares
held in the EBT.
The Board has declared an interim dividend for the period of
7.9p per ordinary share. This dividend will be paid on 30 August
2018 to ordinary shareholders on the register at close of business
on 4 August 2018.
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 2017
is audited.
5.1 BASIS OF PREPARATION
These condensed interim financial statements for the period
ended 30 June 2018 have been prepared in accordance with the
Disclosure Guidance and Transparency Rules sourcebook 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 2017,
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 2017 were approved by the Board on 26 February 2018 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 following change has been made to
the consolidation of the Group since 31 December 2017:
Included in consolidation
Jupiter Global Sustainable Equities
Fund
New and forthcoming standards applicable to the Group
IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts
with Customers became applicable from 1 January 2018. Neither
standard has had a significant impact on the Group's financial
statements.
IFRS 16 Leases will become applicable from 1 January 2019. In
implementing the standard, the Group intends to use the 'practical
expedients' available to apply the new standard solely to leases
previously identified in accordance with IAS 17 and IFRIC 4, to not
recognise leases whose term ends within 12 months of the date of
initial application (1 January 2019) and to apply a single discount
rate to leases with similar characteristics. The Group will apply
the modified retrospective approach to implementation, ie 2018
comparative amounts will not be restated. The expected impact of
this standard is that the Group will capitalise previously
unrecognised assets and net liabilities on that date in the region
of GBP50m and that the total income statement charge in respect of
leases will increase moderately.
5.2 ACCOUNTING POLICIES
The accounting policies applied, including those arising from
the adoption of IFRS 9 and IFRS 15 on 1 January 2018, are
consistent with those described in the Group's annual financial
statements for the year ended 31 December 2017.
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 2018, 30 June 2017 and 31 December 2017,
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 2017 and have taken place on an arm's length
basis. Other than the consolidation of Jupiter Global Sustainable
Equities Fund (as set out in note 5.1 above), 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. An update on the top 10 risks is detailed below.
INVESTMENT RISK Current
impact rating
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 over a prolonged period.
STRATEGIC RISKS
LOW
* Failure to deliver strategy
The risk of failure to achieve our strategic objectives,
through internal or external factors, 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 delivering investment outperformance to
our clients and all other aspects of our strategy.
MEDIUM
* Ineffective product, client and geographic
diversification NEW
The risk that our product range, distribution partnerships,
client type or geographic diversification are ineffective
at growing AUM particularly in light of continued change
and disruption in the competitive landscape.
MEDIUM
* Sustained market decline
The risk of a severe market and economic downturn which
affects all fund managers and all asset types across all
geographic markets.
OPERATIONAL RISKS
MEDIUM
* Brexit
NEW
Due to the uncertainty regarding the implications of Brexit,
the risk that we are not ready to comply with post-Brexit
requirements which could restrict our ability to operate
within the EU.
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.
MEDIUM
* 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.
A summary of those areas in focus during 2018 is detailed
below.
Product, client and geographic diversification
We experienced challenging flows in the first six months of
2018, primarily driven by redemptions from a single product. Our
diversification strategy is progressing to plan as we continue to
broaden our product offering through the launch of new investment
strategies and the expansion of our international distribution
capabilities.
Brexit contingency planning
We continue to proactively manage the potential impact of Brexit
through the launch of a Luxembourg-domiciled Management Company.
Conducting Officers have been successfully recruited, office
premises have been secured and the Management Company application
process is on track to ensure that our preparations will be
completed before March 2019.
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. A
risk weighted approach is applied and, where concerns are
identified (e.g. financial stability, operational control
effectiveness, strategic direction, etc.), analysis specific to the
supplier and issue is undertaken to gain assurance and to determine
mitigating actions.
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 and is complemented
by scenario testing and covered by specific cyber insurance in case
of loss.
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
2018.
-- 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 2017. A current list of Directors is maintained on the
website at www.jupiteram.com.
On behalf of the Board
Maarten Slendebroek
Chief Executive Officer
26 July 2018
Independent review report to Jupiter Fund Management plc
========================================================
Report on the consolidated interim financial statements
Our conclusion
We have reviewed Jupiter Fund Management plc's 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 2018. 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 Guidance and Transparency Rules sourcebook 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 2018;
-- 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 Guidance and Transparency
Rules sourcebook 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 Guidance and
Transparency Rules sourcebook 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 Guidance and Transparency Rules sourcebook 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,
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
26 July 2018
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LLFERDSIRFIT
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