Jupiter Annual Report 2010 - Jupiter Asset Management

Financial statements
Independent Auditors’ report
Consolidated income statement
Statement of other comprehensive income
Consolidated balance sheet
Company balance sheet
Consolidated statement of changes in equity
Company statement of changes in equity
Consolidated statement of cash flows
Company statement of cash flows
Notes to the financial statements
Notes to the financial statements – Group and Company
1. Introduction
The principal activity of Jupiter Fund
Management plc (the “Company”) is to act as
a holding company for a group of investment
management companies. The Company and
its subsidiaries (together the “Group”) offer a
range of asset management products.
Through its subsidiaries, the Group acts as
investment manager to authorised unit trusts,
SICAVs, investment trust companies,
pension funds, private clients, hedge funds
and other specialist funds. The Group has
offices in the United Kingdom, Bermuda,
Germany, Jersey and Singapore. The
principal operating subsidiaries within the
Group during the year ended 31 December
2010 are disclosed in the principal group
undertakings note. Jupiter Fund Management
plc is a company incorporated and domiciled
in the United Kingdom and is the ultimate
parent of the Group.
2. Accounting policies
■■Basis of preparation
The financial statements have been prepared
in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by
the European Union and IFRIC Interpretations
(“IFRS as adopted by the EU”) and with the
provisions of the Companies Act 2006
applicable to companies reporting under IFRS.
The accounting policies have been applied
consistently to all periods presented in the
financial statements.
The financial statements have been prepared
on a going concern basis using the historical
cost convention modified by the revaluation of
certain available for sale financial assets,
financial assets and financial liabilities
(including derivative financial instruments) that
have been measured at fair value through the
statement of other comprehensive income and
the profit or loss respectively. After reviewing
the Group’s current plans and forecasts and
financing arrangements, as well as the current
trading activities of the Group, the Directors
consider that the Group has adequate
resources to continue operating for the
foreseeable future.
■■Basis of accounting
The consolidated financial information for the
year ended 31 December 2010 includes the
consolidated financial statements of the
Company and its subsidiaries for the years
ended 31 December 2009 and 31 December
2010. The accounting policies that follow set
out those policies that have been applied
consistently in preparing the financial
statements, with no new policies adopted for
the year ended 31 December 2010. The
preparation of financial statements in
conformity with IFRS requires the use of
certain critical accounting estimates. It also
requires management to exercise its
judgement in the process of applying the
Group’s accounting policies. The areas
involving a higher degree of judgement or
complexity, or areas where assumptions
and estimates are significant to the
consolidated financial statements are
disclosed below.
■■Change of Company name
The Company changed its name from Jupiter
Investment Management Holdings Limited to
Jupiter Fund Management plc on 1 June 2010
and re-registered as a public company on that
same date in preparation for Listing on the
London Stock Exchange.
■■Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the
Group. Control exists when the Group has
the power, directly or indirectly, to govern the
financial and operating policies of an entity so
as to obtain benefit from its activities,
generally accompanying a shareholding of
more than one half of the voting rights. Seed
capital investments in closed-ended funds,
open-ended investment companies and unit
trusts are accounted for as subsidiaries,
associates or other financial investments
depending on the holdings of the Group and
on the level of influence and control that the
Group exercises. The transactions and
balances of subsidiaries are consolidated in
these financial statements from the date that
control commences until the date that
control ceases.
Uniform accounting policies are applied
across all Group companies and intra-group
transactions, balances, income and expenses
are eliminated on consolidation.
The Group holds a controlling interest in
certain mutual funds, unit trusts and similar
entities which are accounted for as
subsidiaries. The funds have issued
redeemable shares to the Group and external
investors who have the ability to put the
redeemable shares back to the funds. In
accordance with IAS 32, puttable financial
instruments and obligations arising on
liquidation, non-controlling interests in
redeemable shares issued by these funds
accounted for as subsidiaries represent the
portion of profit or loss and net assets that is
not held by the Group or its subsidiaries and
are included within other gains/(losses) in
the consolidated income statement and as
liabilities at fair value through profit or loss in
the consolidated balance sheet. This is due
to the ability of the external shareholders in
these funds to put the shares back to the
funds. Such instruments are liabilities of the
group in accordance with IAS 32, Financial
instruments: presentation.
Associates
Associates are those entities in which the
Group has significant influence, but not
control, over the financial and operating
policies and are usually accompanied with a
shareholding between 20 per cent. and 50
per cent. of the voting rights. Investments that
are held as part of the Group’s investment
portfolio in mutual funds, unit trusts and
similar entities are carried in the balance
sheet at fair value even though the Group
may have significant influence over those
companies as permitted by IAS 28,
Investment in Associates, with changes in fair
value recognised in the consolidated income
statement. The fair value of investments in
associates is determined by reference to the
quoted market bid prices or net asset value of
the underlying investments at the close of
business on the balance sheet date. The
Group has no investment in associates other
than these and, therefore, no associates are
currently equity accounted.
Annual Report & Accounts 2010 65 Jupiter Fund Management plc