Jupiter Annual Report 2010 - Jupiter Asset Management

Business review | Directors’ report
Financial review
2010 saw us deliver improved profits and strengthen our
balance sheet.
Figure 1
Mutual funds remain our largest product line
AUM as at 31 December 2010
2% 1%
76%
7%
Overview
We finished the year with our overall AUM at an all-time high, record
net inflows and increased EBITDA of £124.6m, driven by higher
revenues alongside modest fixed costs growth. This EBITDA
performance combined with reduced financing costs after the
Listing to drive profit before tax up substantially on the prior year.
Mutual Funds
Segregated Mandates
Private Clients
Investment Trusts
Hedge Funds
Figure 2
Growth in AUM in 2010 was greater than market increases
AUM
FTSE
100
+9%
14%
+24%
2010 2009
Assets under management £bn 24.1 19.5
Net flows £m 2.3 1.8
Net revenue £m 230.5 182.1
EBITDA £m 124.6 91.2
EBITDA margin per cent. 54.0 50.0
Profit before tax £m 42.4 7.2
Final dividend p/share 4.7 –
A partial debt repayment of £80.0m was made post year end.
Following the repayment, the Group’s outstanding bank debt is
£203.0m, reduced from a balance of £363.0m at the start of 2010.
Sales
We achieved £2.3bn of net inflows into our funds during the year
ended 31 December 2010, and continued our trend of positive net
sales of UK mutual funds for every quarter from 1 January 2000.
Figure 3
Net flows increased by 29%.
Net inflows (outflows)
by product
2010
£m
2009
£m
Mutual funds 1,886 1,747
2009
£m
2010
1,804
2,320
Segregated mandates 383 (129)
Private clients 121 286
Investment trusts (46) (32)
Hedge funds (24) (68)
TOTAL 2,320 1,804
Mutual funds were the main product contributor with net sales of
£1.9bn, reflecting net inflows into our fund of funds and European
ranges, increasing sales from our International distribution channels
and the launch effect from the Jupiter Absolute Return unit trust
and the Jupiter Global Convertible and Jupiter Strategic Total Return
SICAV products.
Annual Report & Accounts 2010 19 Jupiter Fund Management plc