Jupiter Fund Management PLC Trading Update and Notice of Results (2352L)

TIDMJUP

RNS Number : 2352L

Jupiter Fund Management PLC

18 April 2018

18 April 2018

Trading Update and Notice of Results

Jupiter Fund Management plc ("Jupiter", the "Group") today issues its trading update in respect of the three months to 31 March 2018.

HIGHLIGHTS

   --      Net outflows in the quarter of GBP1.3bn. 
   --      AUM at 31 March 2018 decreased to GBP46.9bn. 

Maarten Slendebroek, Chief Executive, commented:

"It has been a challenging start to 2018. We have seen a period of market turbulence together with subdued demand, resulting in net outflows of GBP1.3bn in the first quarter. As indicated in our financial results presentation on 27 February 2018, this change in the flows trend is not unexpected. The growth of assets sourced from international distribution partners has changed Jupiter's flow profile to being less predictable in the short term. As a result, in future we expect to see continued growth but with higher quarterly differentiation. The continuation of our strategy of diversification by product, client type and geography and our approach to active asset management leave us well placed, both internationally and within the UK across a broad range of strategies."

ASSETS UNDER MANAGEMENT AND FLOWS

 
 
                       31 December                                               Market/FX  31 March 
                              2017               Q1 net flows                     movement      2018 
                              GBPm                       GBPm                         GBPm      GBPm 
 --------------------  -----------  -------------------------  ---------------------------  -------- 
 Mutual funds               43,745                      (929)                      (1,744)    41,072 
 --------------------  -----------  -------------------------  ---------------------------  -------- 
 Segregated mandates         5,208                      (306)                        (288)     4,614 
 --------------------  -----------  -------------------------  ---------------------------  -------- 
 Investment trusts           1,227                       (15)                         (45)     1,167 
 --------------------  -----------  -------------------------  ---------------------------  -------- 
 Total                      50,180                    (1,250)                      (2,077)    46,853 
 --------------------  -----------  -------------------------  ---------------------------  -------- 
 
 

Total AUM decreased during the quarter with net outflows and negative market returns across all channels.

Net mutual fund outflows were GBP0.9bn during the quarter. Our Fixed Income strategy, responsible for the majority of 2017's inflows, experienced a quarter of outflows, with clients withdrawing a net GBP1.1bn of assets in the period. Other strategies contributed net inflows in the period, with the European Growth and Multi-Asset strategies in particular experiencing a good positive quarter. Geographically, the UK was broadly flat during the quarter, however all other regions contributed net outflows, with Continental Europe and Asia the most impacted.

We saw net outflows from segregated mandates in the quarter. One long-standing institutional client withdrew assets as it rebalanced its portfolio, while across a number of other segregated mandates we saw inflows.

The Jupiter Global Value Equity Fund (Unit Trust) was launched in March 2018, further developing our offering in the Value Equities strategy. The Jupiter Global Sustainable Equities Fund (Unit Trust) managed by Abbie Llewellyn-Waters was also launched on 9 April 2018.

SUMMARY & OUTLOOK

After 2017's strong flows and financial results, we have faced more challenging conditions in the first quarter of this year. We continue to target further diversification by product, client type and geographic reach as the driver for continued growth in our business, and we expect to maintain disciplined investment in our operating model to support this growth.

NOTICE OF RESULTS

Jupiter will be issuing results for the period ended 30 June 2018 on 27 July 2018 and will host an analyst presentation to discuss the results at 9:00am. The presentation will be held at The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ.

 
For further information              Investors                     Media 
please contact: 
   Jupiter                      Alex Sargent/Investor      Kate O'Neill/Corporate 
                                      Relations                 Communications 
                               [phone]/1065    [phone]/1278 
 
  Powerscourt                     Justin Griffiths            Matthew Attwood 
                                 [phone]         [phone] 
 
 

LEI Number: 5493003DJ1G01IMQ7S28

Forward-looking statements

This announcement contains forward-looking statements with respect to the financial condition, results and business of the Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. Jupiter's actual results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

Historic flow and AUM data by quarter

 
 
 Flows and AUM by 
  quarter 
 ----------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
                         Q1 2017  Q2 2017  Q3 2017  Q4 2017  Q1 2018  Q2 2018  Q3 2018  Q4 2018 
                            GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
 ----------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
 Total 
 ----------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
 Opening AUM              40,543   43,533   46,907   48,431   50,180 
 Gross inflows             3,981    4,799    3,801    3,880    3,224 
 Gross outflows          (2,675)  (2,540)  (2,458)  (3,310)  (4,474) 
 Net flows                 1,306    2,259    1,343      570  (1,250) 
 Market / FX movements     1,684    1,115      181    1,179  (2,077) 
 Closing AUM              43,533   46,907   48,431   50,180   46,853 
 
 Mutual funds 
 ----------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
 Opening AUM              35,216   37,986   40,930   42,319   43,745 
 Gross inflows             3,864    4,410    3,656    3,624    3,093 
 Gross outflows          (2,462)  (2,415)  (2,411)  (3,166)  (4,022) 
 Net flows                 1,402    1,995    1,245      458    (929) 
 Market / FX movements     1,368      949      144      968  (1,744) 
 Closing AUM              37,986   40,930   42,319   43,745   41,072 
 
 Segregated mandates 
 ----------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
 Opening AUM               4,244    4,394    4,708    4,896    5,208 
 Gross inflows               117      308      142      231      129 
 Gross outflows            (210)    (119)     (31)     (74)    (435) 
 Net flows                  (93)      189      111      157    (306) 
 Market / FX movements       243      125       77      155    (288) 
 Closing AUM               4,394    4,708    4,896    5,208    4,614 
 
 Investment trusts 
 ----------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
 Opening AUM               1,083    1,153    1,269    1,216    1,227 
 Gross inflows                 -       81        3       25        2 
 Gross outflows              (3)      (6)     (16)     (70)     (17) 
 Net flows                   (3)       75     (13)     (45)     (15) 
 Market / FX movements        73       41     (40)       56     (45) 
 Closing AUM               1,153    1,269    1,216    1,227    1,167 
 
 

This information is provided by RNS

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April 18, 2018 02:00 ET (06:00 GMT)