1

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

…the different approaches to engaging with

company management

1

Learning objectivesInvestors should leave the presentation with an ability to discuss…

…the key areas of focus when investors

engage with the different senior

management roles

2

…how active engagement with

company management can enhance value for

investors

3

2

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

What do we mean by engagement?

Sustainability

Responsible Investing

Engagement

Governance

Stewardship

3

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

● Improve understanding of companies we invest in

● Actively enhance value of our investments

● Express our views to companies

Why do we do it?

4

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

How do others do it?

Company

Corporate Governance

Fund Manager

Proxy Agency

5

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

How Jupiter does it

CIO ViceChairman

Sustainability

Company

Fund Manager

Corporate Governance

6

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

● Part of broader investment process, not the whole raison d’être

● Constructive

● Medium term, not quick fix

● Behind the scenes

Active not activist

You don’t need to be a large shareholder to have an influenceNote: Jupiter has purchased the copyright to this image(s).

7

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

Meet the Chairmen

8

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

● Trading● Competitors● Strategy● Cash flow/use of cash● M&A● Reputation

CEO/CFO

● Board composition & effectiveness● Succession planning● Remuneration● Strategy● M&A● Reputation

Chairman

Differences: Chairman and CEO/CFO meetings

9

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

Case study: Dixons Carphone

Company example is for illustrative purposes only and is not a recommendation to buy or sell.Source: Jupiter, Bloomberg, as at 20.02.18.

0

100

200

300

400

500

600

Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18

(Pen

ce)

10

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

Case study: Dixons Carphone2017 & 2018 YTD

Company example is for illustrative purposes only and is not a recommendation to buy or sell.Source: Jupiter, Bloomberg, as at 20.02.18.

125

150

175

200

225

250

275

300

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18

Jul 2017● Post results meeting

with CEO/CFO● SD & EBC meeting

with Chairman

Aug 2017● Profit warning● SD call with Chairman● Two SD calls with IR to discuss numbers

Oct 2017● SD meeting with

CEO at Dixons HQ

Jan 2018● Change of CEO announced● SD call with Chairman

Feb 2018● SD/EBC meeting

with Chairman

(Pen

ce)

11

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

Company example is for illustrative purposes only and is not a recommendation to buy or sell.Source: Jupiter, Bloomberg, as at 20.02.18.

100

200

300

400

500

600

700

Jan-12 Oct-12 Jul-13 Apr-14 Jan-15 Oct-15 Jul-16 Apr-17 Jan-18

Case study: IAG(P

ence

)

12

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

Case study: GKN

Company example is for illustrative purposes only and is not a recommendation to buy or sell.Source: Jupiter, Bloomberg, as at 20.02.18.

0

50

100

150

200

250

300

350

400

450

500

Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

(Pen

ce)

13

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

Case study: GKN2017 & 2018 YTD

Company example is for illustrative purposes only and is not a recommendation to buy or sell.Source: Jupiter, Bloomberg, as at 20.02.18.

280

300

320

340

360

380

400

420

440

460

Jan-17 Feb-17 Apr-17 Jun-17 Jul-17 Sep-17 Nov-17 Dec-17 Feb-18

Mar 2017● SD meeting with SID

Jun 2017● SD meeting with

CEO/CFO

Sep 2017● SD meeting with

Chairman

Oct 2017● Profit warning● SD call with

Chairman

Nov 2017● U-turn on CEO

succession● SD call with

Chairman

Jan 2018● Bid from Melrose● SD meet with new CEO

(Pen

ce)

14

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

Summary

“ What machines can’t do – and quite possible never will be able to – is negotiate, build relationships, empathise, instil confidence, win trust, create great art, write moral philosophy, dream

Robert Peston, WTF 2017

15

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

Learning outcomesInvestors should have gained an ability to discuss…

…the different approaches to engaging with

company management

1

…the key areas of focus when investors

engage with the different senior

management roles

2

…how active engagement with

company management can enhance value for

investors

3

16

Jupiter Investment Forum 2018For professional and institutional investors only. Not for retail investors.

This presentation is intended for investment professionals and not for the benefit of retail investors. Market and exchange ratemovements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the informationbut no assurance or warranties are given.Past performance is no guide to the future. Company examples are for illustrative purposes only and are not a recommendation to buy or sell. Quoted yields are not guaranteed and may change in the future. Awards and ratings should not be taken as a recommendation.For your security we may record or randomly monitor telephone calls. Jupiter Asset Management Limited (JAM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ is authorised and regulated by the Financial Conduct Authority.No part of this presentation may be reproduced in any manner without the prior permission of JAM.

Disclosure