Jupiter Annual Report 2010 - Jupiter Asset Management

Operational review | Who we are
We are also expanding our distribution in Asia and opened our
Singapore office in late 2009 to improve the servicing of our existing
Asian clients and to develop new relationships in the region.
We expect these efforts to result in greater fund flows over time.
While maintaining a common fund management approach, and single
unified infrastructure approach, our sales are categorised across five
product types:
Mutual funds
This comprises our UK domiciled unit trusts and Luxembourg
domiciled SICAV. In the UK, our funds are primarily sold through IFAs
while internationally, our funds are sold mainly through wealth
management buyers. At 31 December 2010, 76 per cent. of our total
AUM (£18.4bn) was invested into mutual funds.
Segregated mandates
We manage segregated mandates on behalf of pension funds,
banks, insurance companies, multi-managers and endowment funds.
At 31 December 2010, 14 per cent. of our total AUM (£3.3bn) was
invested into these products.
Private clients
We offer a discretionary investment management service to high
net worth individuals, family offices, trusts and charities, managing
individual portfolios of securities and mutual funds (both Jupiter funds
and external products). At 31 December 2010, this product line
comprised 7 per cent. of our total AUM (£1.7bn). The private client
market in the UK is highly fragmented with personal relationships
being seen as key to success. As a result, we focus on providing
the level of personal service that our clients expect.
Infrastructure / Operations
Our operational environment covers a number of different
departments, ranging from those that directly support the fund
management activity, such as back office operations and central
client services, to those that also have a wider, corporate level brief
alongside their front office support roles such as finance, IT, human
resources and compliance.
The strategy for our operating platform is to support the scalable
growth of the business and its governance requirements while
continually looking for operational efficiencies, including outsourcing
or improved technologies. This helps contribute to our objective of
generating attractive economic returns and value for shareholders.
While the majority of our infrastructure operates in-house,
we have also outsourced a number of processes. During 2010,
we outsourced our unit trust administration function to IFDS,
resulting in 75 people leaving our West Malling office. This decision
was based on the greater efficiency offered by the outsourced
solution, both on a client service basis and the future cost savings
available. Furthermore, we took a decision to give notice on our
office in West Malling and, in February 2011, relocated the remaining
employees to London. This will generate further savings in future
years through reduced accommodation costs.
Investment trusts
Investment trusts are closed-ended, listed investment structures.
We currently manage five investment trusts with an aggregate AUM
of £0.5bn. All the companies incorporate the Jupiter name so as to
assist with brand promotion. We do not have any plans to increase
our range in the near term; instead our efforts are focused on
generating demand for the trusts’ shares from retail investors and
intermediaries in the secondary market.
Hedge funds
As at 31 December 2010, we managed four single hedge fund
strategies with a total AUM of £0.2bn. Our hedge fund sales effort
is part of the international sales team who are able to include this
range within the suite of products offered to professional fund buyers.
Annual Report & Accounts 2010 14 Jupiter Fund Management plc