Jupiter Annual Report 2010 - Jupiter Asset Management

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Strategy & key performance indicators We believe that for any business to be successful a strategy and key objectives need to be set in a framework to ensure delivery. 1 Preserving our investment culture and generating investment outperformance Our business is centred on the strength of our investment team and is reliant on the quality and reputation of our fund managers. We are focused on preserving a culture of investment freedom, individuality and accountability, which we believe will continue to contribute to the Group’s success in maintaining and developing an experienced and talented team of fund managers. 2 Selling our investment expertise to clients through products suited to our distribution strengths Our investment expertise is provided to clients under a single brand through a range of products and various distribution channels. We seek to offer and develop products that are suited to the distribution channels and markets in which we have, or can establish, a strong position – in particular, the UK and retail mutual fund markets. Our goal is to maintain our market position in the UK retail mutual fund market and develop our international presence, in terms of both sales and AUM through investment outperformance and continued investment in our well-established brand. We follow the methodology above, establishing a broader meaning for each objective, a definition of what constitutes successful delivery and a number of key performance indicators which we use to monitor delivery. 3 Leveraging our investment and distribution capabilities to deliver attractive economic returns and generate shareholder value Our business model benefits from economies of scale. We believe our existing investment, distribution and administrative platforms are capable of supporting significantly higher levels of AUM at proportionately lower levels of incremental cost. However, to grow the business substantially over the long term, we need to continue developing our people, brand and operations. While we will continue to strengthen our investment and distribution capabilities where appropriate, our goal is to ensure that fixed costs grow at a lower rate than AUM and revenues. Over time this will lead to EBITDA and profits attributable to shareholders growing at a higher rate than revenues, thereby generating shareholder value. Annual Report & Accounts 2010 10 Jupiter Fund Management plc
Strategy & Key performance indicators | Who we are KPI – 3 year investment performance As at 31 Dec 2010 56% Delivering on this objective requires us to continue providing our clients with investment outperformance over the medium to long term. Investment performance has remained strong with 22 mutual funds, representing approximately 66 per cent. of mutual fund AUM, delivering first and second quartile performance over the three year period to 31 December 2010. (2009: 19 mutual funds representing 60 per cent. of mutual fund AUM). 1st quartile 2nd quartile 3rd quartile 4th quartile 25% 9% 10% 14% 23% 20% 43% Source: Financial Express; pie chart in centre: performance weighted by number of funds; ring around pie chart: performance weighted by AUM. KPI – Net inflows by product Delivering on this objective requires us to offer attractive investment strategies which meet our clients’ needs, without a reliance on the same strategies each year. This should result in continued healthy inflows across our product range. Our sales growth in 2010 has been primarily generated in mutual funds. This reflects net inflows into our funds of fund and European ranges, increasing sales from our international distribution channels and beneficial launch effects from new funds. 2010 £m 2009 £m Mutual funds 1,886 1,747 Segregated mandates 383 (129) Private clients 121 286 Investment trusts (46) (32) Hedge funds (24) (68) TOTAL 2,320 1,804 KPI – EBITDA margin 2009 50% We are delivering on this objective if we can mantain a healthy gap between the rate of growth of revenues and the rate of growth of fixed costs. During 2010, we continued to demonstrate the scalability of our business via the EBITDA margin increasing to 54 per cent. compared to 50 per cent. in 2009. 2010 54% Annual Report & Accounts 2010 11 Jupiter Fund Management plc
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4038-04.11 SG Registered address: 1
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Jupiter Annual Report 2010 - Jupiter Asset Management

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