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 <strong>2010</strong>, 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 <strong>2010</strong>, 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 <strong>Jupiter</strong> funds and external products). At 31 December <strong>2010</strong>, 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 <strong>2010</strong>, 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 <strong>Jupiter</strong> 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 <strong>2010</strong>, 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. <strong>Annual</strong> <strong>Report</strong> & Accounts <strong>2010</strong> 14 <strong>Jupiter</strong> Fund <strong>Management</strong> plc
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