03:00 Wed 15 Apr 2020
Jupiter Fund Mgmt - Trading Update, Merian Update & Notice of Results
CURRENT TRADING
So far this year, in common with the asset management industry as a whole, Jupiter has faced challenging market conditions, largely brought about by the global coronavirus (Covid-19) pandemic, which has had a significant adverse impact on the economy, global financial markets including asset values and, consequently, on our AUM. During this volatile period, which has seen most asset classes experience significant falls in value, Jupiter's relative investment performance has strengthened, with 80% of AUM above median over three years, 75% in the top quartile. This level of performance on behalf of our clients is testimony to the expertise of our investment teams and reaffirms our belief that active management delivers long term returns to clients and supports our commitment to high-conviction active management.
The health and wellbeing of our employees and their families is of the utmost importance to Jupiter. Since early March we have adopted remote working arrangements for all employees. From a business and operational perspective, these have been implemented without any material disruption to our business or our ability to deliver for clients. We continue to monitor closely all developments relating to the coronavirus outbreak and its impact on working patterns, employees and key service providers, with the principal aim of ensuring the welfare of our employees and on the continuity of our business and maintenance of high standards of service for our clients.
In this uncertain environment, the Group's commitment to maintaining an appropriate cost base remains as important as ever, and we continue to review and challenge costs within the business, making reductions to costs where we are able to without affecting our ability to deliver the investment returns and high standards of service our clients expect from us. The Group notes the swift and decisive measures taken by the
JUPITER ASSETS UNDER MANAGEMENT AND FLOWS
§ Net outflows in the quarter of
§ AUM at
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31 December 2019 £m |
Q1 net flows £m |
Market/FX movement £m |
31 March 2020 £m |
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Mutual funds |
37,692 |
(2,891) |
(4,130) |
30,671 |
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Segregated mandates |
4,811 |
575 |
(1,302) |
4,084 |
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Investment trusts |
328 |
(2) |
(96) |
230 |
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Total |
42,831 |
(2,318) |
(5,528) |
34,985 |
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Net mutual fund outflows were
Segregated mandates saw
Month to date flows in April for Jupiter have stabilised and are broadly flat.
MERIAN ASSETS UNDER MANAGEMENT AND FLOWS
§ Net outflows in the quarter of
§ AUM at
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31 December 2019 £m |
Q1 net flows £m |
Market/FX movement £m |
31 March 2020 £m |
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Total |
22,405 |
(2,598) |
(4,152) |
15,655 |
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Month to date flows in April for Merian show a marginal outflow.
TRANSACTION UPDATE
Despite the market volatility which both firms have experienced, the strategic and financial rationale of the Acquisition remains compelling. The Jupiter Board believes this Acquisition will enhance the Group's position as a leading
In light of the coronavirus pandemic and the measures taken to contain the outbreak, Jupiter now expects to publish a circular relating to the Acquisition (the "Circular") in late
At the time of the announcement of the Acquisition in February, it was expected that following completion of the integration of the
In addition, at the time of the announcement of the Acquisition, it was anticipated that shortly following Completion, the Operating Margin of the
The Acquisition was also expected at the time of announcement in February to deliver low to mid-teen accretion in Underlying EPS from 2021, and increasing in 2022 onwards, relative to the Group's expected standalone financial performance for the same periods, with returns to the Group in excess of its cost of capital. Based on AUM for Jupiter and the
Further information on the impact of recent market conditions and the trading of Jupiter and Merian on the expected financial effects and benefits of the Acquisition will be provided in due course in the Circular.
Words and expressions which were defined in the announcement made in respect of the Acquisition on
meanings in this announcement unless the context otherwise requires.
NOTICE OF RESULTS
Jupiter will be issuing Interim results for the period to
For further information please contact: |
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Investors |
Media |
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Jupiter |
+44 (0)20 3817 1534/1065 |
+44 (0)20 3817 1196/1278 |
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Powerscourt |
+44 (0)20 7549 0999 |
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LEI Number: 5493003DJ1G01IMQ7S28
Forward-looking statements
This announcement contains forward-looking statements with respect to the financial condition, results and business of the Group, the
No statement in this announcement is intended as a profit forecast, profit estimate or quantified financial benefits statement for any period and no statement in this announcement should be interpreted to mean that earnings or earnings per share for the
Jupiter historic flow and AUM data by quarter |
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Flows and AUM by quarter |
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Q1 2019 £m |
Q2 2019 £m |
Q3 2019 £m |
Q4 2019 £m |
Q1 2020 £m |
Q2 2020 £m |
Q3 2020 £m |
Q4 2020 £m |
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Total |
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Opening AUM |
42,673 |
44,061 |
45,908 |
45,089 |
42,831 |
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Gross inflows |
3,259 |
3,280 |
4,014 |
2,856 |
4,065 |
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Gross outflows |
(3,741) |
(3,883) |
(5,329) |
(4,984) |
(6,383) |
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Net flows |
(482) |
(603) |
(1,315) |
(2,128) |
(2,318) |
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Market / FX movements |
1,870 |
2,450 |
496 |
(130) |
(5,528) |
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Closing AUM |
44,061 |
45,908 |
45,089 |
42,831 |
34,985 |
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Mutual funds |
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Opening AUM |
36,940 |
37,473 |
38,983 |
38,461 |
37,692 |
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Gross inflows |
2,697 |
3,034 |
3,017 |
2,638 |
3,353 |
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Gross outflows |
(3,688) |
(3,608) |
(3,973) |
(3,189) |
(6,244) |
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Net flows |
(991) |
(574) |
(956) |
(551) |
(2,891) |
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Market / FX movements |
1,524 |
2,084 |
434 |
(218) |
(4,130) |
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Closing AUM |
37,473 |
38,983 |
38,461 |
37,692 |
30,671 |
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Segregated mandates |
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Opening AUM |
4,577 |
5,348 |
5,568 |
5,266 |
4,811 |
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Gross inflows |
561 |
246 |
996 |
218 |
712 |
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Gross outflows |
(48) |
(269) |
(1,344) |
(836) |
(137) |
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Net flows |
513 |
(23) |
(348) |
(618) |
575 |
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Market / FX movements |
258 |
243 |
46 |
163 |
(1,302) |
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Closing AUM |
5,348 |
5,568 |
5,266 |
4,811 |
4,084 |
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Investment trusts |
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Opening AUM |
1,156 |
1,240 |
1,357 |
1,362 |
328 |
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Gross inflows |
1 |
0 |
1 |
0 |
0 |
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Gross outflows |
(5) |
(6) |
(12) |
(959) |
(2) |
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Net flows |
(4) |
(6) |
(11) |
(959) |
(2) |
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Market / FX movements |
88 |
123 |
16 |
(75) |
(96) |
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Closing AUM |
1,240 |
1,357 |
1,362 |
328 |
230 |
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