Jupiter Annual Report 2010 - Jupiter Asset Management

Financial statements – continuation | Notes to the financial statements
35. Related parties
The Group
The Group manages, through its subsidiaries, a number of investment trusts, unit trusts and overseas funds. The subsidiary companies receive
management fees from these entities for managing the assets and in some instances receive performance fees. The precise fee arrangements
for the different entities are disclosed within the financial statements of each entity or within other information which is publicly available.
The Group manages a number of collective investment vehicles and by virtue of the investment management agreements in place between the
Group and these vehicles, they may be considered to be related parties. The Group acts as manager for 35 (2009: 34) authorised unit trusts.
Each unit trust is jointly administered with the trustees, The Royal Bank of Scotland plc. The aggregate total value of transactions for the period
was £3,237.2m (2009: £2,796.6m) for unit trust creations and £1,744.8m (2009: £978.0m) for unit trust redemptions. The actual aggregate
amount due to the trustees at the end of the accounting year in respect of transactions awaiting settlement was £10.0m (2009: £34.5m).
The amount received in respect of gross management and registration charges was £269.8m (2009: £200.8m). At the end of the year, there was
£6.5m (2009: £4.7m) outstanding for annual management fees and £1.0m (2009: £0.8m) in respect of registration fees.
The Group has a total net investment in collective investment vehicles of £53.2m (2009: £50.9m) and received distributions of £0.1m (2009:
£0.1m) and investment management and performance fees of £244.3m (2009: £190.4m).
The majority of the Directors of the investment trusts are independent of the Group.
Included within the financial instruments note are seed capital investments in funds managed by the Group.
The Group also considers transactions with its key management personnel as related party transactions. Key management personnel are
considered to be members of the Executive Committee who manage the main operating activities of the Group. The emoluments of key
management personnel are shown in the Directors’ emoluments and key management personnel note and further disclosure on Directors is
within the Remuneration report. Except for those that have been disclosed, there are no other transactions, arrangements or agreements made
for persons who were Directors of the Group during the period. For members of key management personnel, payments in relation to previously
held Preferred Finance Securities amounted to £15.8m (2009: £nil). Preference share holdings by key management personnel of £4.1m were
converted to 2.5m of ordinary shares in June 2010.
TA Associates Inc. are also considered a related party of the Group. Transactions with TA Associates Inc. in relation to the repayment by the
Group of Preferred Finance Securities amounted to £201.0m. £152.3m of this was paid in cash and the remaining £48.7m was converted into
ordinary shares. £0.6m of this is shown within share capital and £48.1m is shown as part of share premium.
Company
Details of transactions between the Company and its subsidiaries, which are related parties of the Company, are disclosed below:
2010
£m
2009
£m
Dividends received 65.0 –
Amounts owed to related parties – 1.7
Amounts owed by related parties 263.5 –
36. Post balance sheet events
On 18 March 2011, the Group announced its intention to make an £80.0m partial repayment of the bank loan facility during 2011. This repayment
was made on 31 March 2011.
Annual Report & Accounts 2010 103 Jupiter Fund Management plc