Jupiter Annual Report 2010 - Jupiter Asset Management

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Jupiter in brief | Who we are Jupiter in brief Our business Since our formation, we have focused primarily on our core competency of managing equity investments on behalf of private and institutional investors across a wide range of products. These have included UK and offshore mutual funds, multi-manager and fund of funds products, segregated mandates and investment trusts. This core strength is complemented by capabilities in fixed income, hedge and absolute return funds. Our aim is to deliver investment outperformance for our clients over the long term and we seek to achieve this by allowing talented fund managers the freedom to pursue their own individual investment approaches. We believe it is this culture that has helped us build a strong long-term track record of investment outperformance. We also actively encourage fund managers to invest their own money into our funds. This means our fund managers’ interests are aligned with those of our clients. Our main operations are centred in London, where all our fund managers and the majority of our support staff are located. As at 31 December 2010, we employed 402 staff of whom 386 were based in the UK. Our reputation for delivering long-term investment outperformance has earned us over 100 awards in the last five years, including the What Investment ‘Best Group’ award for 2010 and 2009 and the Old Broad Street Research Ltd ‘Outstanding Investment House’ Honour for 2009. Our history Launched in 1985 as a specialist boutique, Jupiter has become one of the UK’s most respected and successful fund management groups. From our origins as a manager primarily of investment trusts and private client portfolios, we expanded into institutional fund management before mutual funds became the key engine of growth. In 1991, the holding company of the Group, Jupiter Investment Management Group, was listed on the London Stock Exchange. Commerzbank AG acquired a 75 per cent. controlling interest in the Group in 1995 and acquired the remaining 25 per cent. from management and employees in 2000. In 2007, Commerzbank AG sold the Group to its employees through an MBO supported by private equity firm TA Associates, Inc, and other minority investors. All employees were given the opportunity to acquire shares in the Company and 98 per cent. of staff had an interest in the Company at Listing. Jupiter employees continue to own 38 per cent. of the equity after Listing. This culture of employee ownership has been reinforced by the successful launch of our Sharesave scheme in the second half of the year, with 76 per cent. of our eligible employees choosing to subscribe. Asset class Product type Client geography Invested assets geography 1% 83% 1% 76% 7% 2% 1%2% 90% 7% 5% 43% 16% 14% 34% Equities Fixed Income Other Mutual funds Private clients Hedge funds Segregated mandates Investment trusts UK Continental Europe Hong Kong/Taiwan RoW 18% UK Europe Global Other Equity focus Retail focus UK client base International exposure All graphs as at 31 December 2010. Annual Report & Accounts 2010 8 Jupiter Fund Management plc
Jupiter in brief | Who we are Our beliefs We are an active fund manager seeking to add value to clients through successful stock selection. We believe that successful delivery against our core strategy will result in investment outperformance for clients over the medium to long term, acquisition of new flows and attractive returns to our shareholders. This strategy is defined across the following three objectives: 1 Preserving 2 Selling 3 Leveraging our investment culture and generating investment outperformance our investment expertise to clients through products suited to our distribution strengths our investment and distribution capabilities to deliver attractive economic returns and generate shareholder value Our strengths Equity-focused asset manager We are focused primarily on managing equity investments, which represented 83 per cent. of AUM at 31 December 2010. We do not seek to grow simply to increase or diversify AUM; rather we look to expand into markets where we feel we have the capabilities to add value to our clients and where there is scope for meaningful flow growth. During 2010, we established new funds in the absolute return, global convertibles and global emerging markets sectors. Leading position in the UK retail market We have built our market share on the back of a long-term track record of investment outperformance and a multi-channel distribution approach. In each of the last five calendar years, we have ranked consistently within the top seven best selling fund management groups by net sales in the UK retail mutual fund market. Strong investment culture and consistent long-term investment outperformance We have a long-term track record of investment outperformance which has allowed us both to retain clients and to grow our business by attracting additional assets from new and existing clients. We believe our investment culture, which gives fund managers the freedom to pursue their own individual investment approaches with the support of a larger team environment, enables us to attract and retain talented investment professionals for the long term: 17 of our fund managers have been with the Group for over 10 years. Established and recognised brand We benefit from a well-established and recognised brand in the UK retail mutual fund market. In each of the last five calendar years, we have been ranked among the top five fund management groups for overall brand awareness and advertising recall among intermediaries. Strong record of net new business generation with resilient flows across the cycle We have experienced positive net sales of UK mutual funds for every individual quarter since 1 January 2000. This was achieved through periods of ownership uncertainty, during the bear market of 2000 to 2003, and the difficult financial conditions of the past four years. This consistency has driven our AUM from £10.8bn to £24.1bn over the past six years and our mutual fund business from AUM of £6.5bn at 31 December 2004 to £18.4bn at 31 December 2010. Scalable operating platform to capitalise on growth opportunities We operate through a single investment platform in London, with managers running a variety of funds or mandates. We also use a common marketing infrastructure to support our distribution teams, which are typically specialist in nature and focused on specific markets or client segments. This commonality allows us to apply our investment skills efficiently across a wide range of products, channels and markets. As a result, where we add new mandates or funds this can, in almost all cases, be done with limited additional fixed cost. Annual Report & Accounts 2010 9 Jupiter Fund Management plc
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Jupiter Annual Report 2010 - Jupiter Asset Management

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