Jupiter Green InvTst - Half-year Report
18/12/2023 14:50
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RNS Number : 1913X Jupiter Green Investment Trust Plc 18 December 2023
Jupiter Green Investment Trust plc ('the Company')
Legal Entity Identifier: 549300MFRCR13CT1L845
Half Yearly Financial Report for the six months to 30 September 2023
(unaudited)
Financial Highlights for the six months to 30 September 2023
Capital Performance
As at As at
30.09.23 31.03.23
Total assets less current liabilities (£'000) 47,012 54,578
Ordinary Share Performance
As at As at
30.09.23 31.03.23 % Change
Mid market price (p) 198.50 224.00 -11.4
Undiluted net asset value per ordinary share (p) 232.84 258.58 -10.0
Diluted net asset value per ordinary share (p)* 235.18 259.86 -9.5
MSCI World Small Cap Total Return Index +0.1
Discount to net asset value (%) 14.75 13.37
Ongoing charges ratio (%) excluding finance costs 1.13 1.72 -34.1
* Being the net asset value per share assuming that all annual
subscription rights are taken up.
Chairman's Statement
Here we present the Interim Report and Accounts for the Jupiter Green
Investment Trust PLC ('the Company') for the six months to 30 September 2023.
In a broad macro sense, the period under review could be characterised by
major developed market central banks - most notably the US Federal Reserve
(Fed) - converging around interest rate policies.
Performance
The Net Asset Value of the Company delivered a total return of -10.0%, vs
+0.1% for the MSCI World Small Cap (£) Index whilst the share price total
return delivered -11.4% over the period.
Market backdrop
We are disappointed with the performance of the portfolio over the period,
however due to the prevailing macroeconomic environment, we are of the belief
that the prospects for the portfolio companies and their respective
addressable markets remains undimmed. Your portfolio manager, Jon Wallace will
go into more detail in his report below.
The dominant narrative in the market now is one of central banks rates staying
'higher for longer' as economic indicators broadly point towards resilient
economic growth, rising wage growth, and inflation that remains well above
target levels in developed economies. This creates a challenging backdrop for
investors, and during the last six months there have been few obvious areas of
significant growth - the one exception being a small cadre of US- listed
technology companies that are presumed to be beneficiaries of coming shift
towards artificial intelligence.
Within the Environmental Solutions thematic universe, key developments over
the past six months have included the publication of the Global Stocktake
Technical Assessment report. Released in September, it in no uncertain terms
states that the world is currently not on track to meet the goals of the Paris
Agreement. This chimes with previous reports, such as the IPCC's Sixth
Assessment Report, released in March, but crucially there remains an
acknowledgement that the technologies already exist to reach the targets, if
they are implemented in time. A bold call to action, and one in which the
Company should be well- positioned to benefit from given the emphasis we place
on companies that are developing of scaling able to provide environmental
solutions.
On the policy front, just a day after this reporting period ended - on 1
October 2023 - the European Union's Carbon Border Adjustment Mechanism (CBAM)
entered its transitional phase, with the first reporting period for importers
31 January 2024. It joins the PROVE IT Act in the US, which requires the
Department of Energy to study and compare the carbon emissions of
carbon-intensive sectors. The increasingly likelihood and rising onus on
global reporting standards may offer opportunities for compliant companies to
benefit from that trend, while presenting a clear risk to those firms
unwilling to adapt.
Outlook
Technological advances and innovation are key to combating the world's climate
and environmental crisis. These solutions are now helping to set the pace for
policy and regulation - a welcome reversal to the previous relationship where
solutions were constrained by policy. The scale of change required to reverse
global warming is creating significant opportunities for investors to support
environmental solutions companies, which provide products and services
critical to achieving sustainability targets. It is becoming ever more evident
that these solutions will spread widely and to as-yet unpenetrated sectors of
the global economy.
Governments are likely to continue to play a major role, in terms to
encouraging development of environmental solutions as part of the path to net
zero, and through the regulating of all companies to improve transparency
around climate and biodiversity impact.
As attitudes toward addressing climate solutions shift, there is a broadening
of the value chain beyond the conventional lens. The opportunities throughout
the market that this creates will be plentiful and we firmly believe the
Jupiter Green Investment Trust remains well-positioned to identify them.
Discount control / share buybacks
In order to manage the discount, the board continues to utilise shareholder
authority to undertake share buybacks of ordinary shares when they are trading
at a sustained discount. Over the period, the company bought back 930,000
ordinary shares for cancellation, equating to £1,932,000, at an average
discount of -15.86%, which positively accrued £368,000 to NAV.
Continuation vote
The board was pleased that 98.34% of shareholders voted in favour of the
company's continuation and believe that the company operates in a segment with
significant supportive tailwinds and an opportunity to identify investment
opportunities in the most innovative and accelerating companies as well as
those which are more established for many years to come.
Board Succession
I have served this Company as a director for the last 14 years, and have been
Chairman since 2016, and despite my deep passion for the company and its
Investment objectives, and support for the investment manager, it is my
intention to stand down before the company's next AGM.
In the meantime, the board through its nominations committee, will embark on a
recruitment process to identify suitable candidates with the requisite skills
and experience in order to take the company forward. More details of the
succession plan will be published in the forthcoming Annual report.
Michael Naylor
Chairman
Investment Adviser's Review
Market review
The period under review was challenging for global equity markets as central
banks converged around 'Higher for Longer' rhetoric with regard to interest
rates in an effort to quell persistent inflation, though the latter surprised
on the downside later in the period. This, combined with generally declining
economic indicators resulted in a wider risk-off sentiment and weighed on
global equities.
Aside from market factors, UK Prime Minister Rishi Sunak announced a
'roll-back' on green policies, for example pushing back targets for vehicle
electrification and delaying a ban on new gas boilers. While these policies
are generally disjointed from wider global developments, the period saw
pockets of dilution to regulatory and policy drivers intended to increase the
uptake of environmental solutions.
Policy review
The Company's approach to investing in environmental solutions remains focused
on six themes:
· Circular economy: solutions for sustainable materials and
resource stewardship
· Clean energy: generation, storage and distribution
· Sustainable Oceans & Freshwater Systems: conservation and
management
· Green Mobility: technologies and services for sustainable
movement
· Green Buildings & Industry: enabling a low carbon transition
· Sustainable Agriculture & Land Ecosystems: solutions
protecting natural resources and well- being
The Company underperformed in the period in an environment split between
momentum and increasing risk-off sentiment as central banks converged around
higher interest rates. While the portfolio was weaker in part owing to not
having exposure to buoyant sectors that sit outside of our environmental
solutions thematic, expectations of persistently higher interest rates also
weighed on valuations for relatively capital intensive sectors.
In this backdrop the largest detractor to performance during the was the Clean
Energy theme. We continue to see compelling opportunities for renewable energy
solutions and related infrastructure in the long-term. Our largest allocation
within the Clean Energy theme is Prysmian, which provides cable technologies
critical to power grid upgrade markets that we see as buoyed by multiple
converging growth drivers including renewable energy capacity growth, grid
resilience and energy security.
In a similar vein, environmental solutions that are more clearly associated
with critical challenges in the immediate future have generally fared better.
The largest positive performance contributor was our Sustainable Oceans &
Water Systems theme. Advanced Drainage Systems, which manufactures pipes and
products for stormwater management and drainage solutions, was a top stock
specific contributor. The Company's largest thematic allocation, Green
Buildings and Industry (GBI) also generated positive contribution. Many of our
holdings within this theme are industrial companies whose physical products
are reliant on global supply chains. As Covid-related disruptions have eased,
holdings have been benefitting from a structural tailwind of energy price
volatility which encourages the take-up of energy efficient solutions that are
a large component of this opportunity set.
Some portfolio changes during the period include the addition to holdings
within our Circular Economy theme, including Ansys, a US-based industrials
software company, and Renewi, a European waste management company and
long-held position in the Company that was later subject to a takeover bid. We
reduced several positions following strong short- term performance including
Advanced Drainage, and disposed of Daikin on growing concerns around of
reputational and regulatory risks due to its current and legacy exposure to
PFAS (long-lasting chemicals which are difficult to break down in the
environment) as well mounting signals that the global market for low-carbon
heat-pumps is slowing as production capacity increases significantly.
Outlook
We have a long-held conviction that environmental challenges in all their
forms are central to global development in the long term. This provides
compelling growth opportunities for companies focussed on delivering
real-world solutions to climate change and wider forms of natural capital
protection including water and biodiversity. Our conviction in this view
remains undimmed. We expect the volatility in equity markets to continue into
the near-term, presenting opportunities for long-term active investors
focussing on structural growth trends such as energy transition and more
widely across our six environmental solution investment themes.
The landmark US Inflation Reduction Act, and the recent response from the
European Commission such as the Net-Zero Industry Act, signal that
environmental solutions markets have crossed a watershed moment where they are
no longer peripheral, but instead integral to future economies and markets.
Given the rising incidence of large-scale natural disasters, including intense
flooding and wildfires, politicians are increasingly considering the
importance of adaptation measures, rather than mitigation solutions, to combat
the worst effects of these disasters. While we believe adaptation solutions do
have a role, we believe the most appropriate approach for investors is to
recognise the nuance, and to avoid considering opportunities through an either
one or the other lens, instead seeking solutions where climate adaptation and
mitigation converge. We ideally seek those opportunities which provide clear
mitigation or two- pronged solutions to the vital challenges the world is
facing.
Jon Wallace
Investment Manager
Jupiter Asset Management Limited Investment Adviser
Green ESG Grouping
As at 30 September 2023 (ex-cash)
Environmental theme
Circular economy Clean energy Green Buildings& Industry Green Mobility Sustainable agriculture and Land ecosystems Sustainable Ocean & Freshwater Systems Total
Stage of Development % % % % % % %
Accelerators 12.61 16.54 19.12 3.95 13.05 4.92 70.19
Established Leaders 11.08 - 3.62 4.34 - 3.22 22.26
Innovators 3.66 3.00 0.52 - 0.37 - 7.55
Total 2023 27.35 19.54 23.26 8.29 13.42 8.14 100
Investment Portfolio as at 30 September 2023
Market value Percentage of Portfolio
Company Country of Listing £'000
Veolia Environnement France 1,765 3.8
Schneider Electric France 1,727 3.7
Prysmian Italy 1,682 3.6
Renewi United Kingdom 1,596 3.4
Watts Water Technologies United States of America 1,505 3.2
Stantec Canada 1,492 3.2
Clean Harbors United States of America 1,460 3.1
ANSYS United States of America 1,441 3.1
Vestas Wind Systems Denmark 1,399 3.0
Waste Connections Canada 1,383 2.9
Infineon Technologies Germany 1,378 2.9
Trimble United States of America 1,355 2.9
Acuity Brands United States of America 1,295 2.8
Watts Water Technologies, Inc. Class A United States of America 1,279 2.7
Advanced Drainage Systems United States of America 1,259 2.7
Republic Services United States of America 1,243 2.7
Borregaard Norway 1,223 2.6
Novozymes Denmark 1,176 2.5
Eurofins Scientific Luxembourg 1,101 2.4
Xylem United States of America 1,044 2.2
Alfa Laval Sweden 1,028 2.2
Ormat Technologies United States of America 952 2.0
Littelfuse United States of America 938 2.0
DSM-Firmenich Switzerland 926 2.0
Flat Glass Group China 909 1.9
Aptiv Jersey 909 1.9
Horiba Japan 871 1.9
First Solar United States of America 854 1.8
Azbil Japan 804 1.7
TOMRA Systems Norway 792 1.7
Daiseki Japan 789 1.7
Shimano Japan 752 1.6
Hannon Armstrong Sustainable Infrastructure Capital, REIT
United States of America 731 1.6
Orsted Denmark 716 1.5
Re:NewCell Sweden 687 1.5
Atlas Copco Sweden 668 1.4
NextEra Energy Partners United States of America 637 1.4
Brambles Australia 609 1.3
Befesa Luxembourg 571 1.2
SolarEdge Technologies United States of America 570 1.2
Sensirion Holding Switzerland 560 1.2
Acuity Brands, Inc. United Kingdom 551 1.2
Greencoat Renewables Ireland 461 1.0
Corbion Netherlands 454 1.0
Innergex Renewable Energy Canada 407 0.9
Sensata Technologies Holding United Kingdom 406 0.9
Hoffmann Green Cement Technologies France 239 0.5
Agronomics Isle of Man 175 0.4
Agronomics Warrant 12/11/2023 Isle of Man - -
Total Investments 46,769 100.0
The holdings listed above are all equity shares unless otherwise stated.
Cross Holdings in other Investment Companies
As at 30 September 2023, 0.98% of the company's total assets was invested in
Greencoat Renewables, a UK listed investment company.
Whilst the requirements of the UK Listing Authority permit the company to
invest up to 10% of the value of the total assets of the company (before
deducting borrowed money) in other investment companies (including investment
trusts) listed on the Main Market of the London Stock Exchange, it is the
directors' current intention that the company invests not more than 5% in
other investment companies.
Interim Management Report
Related Party Transactions
During the first six months of the current financial year, no transactions
with related parties have taken place which would have materially affected the
financial position or performance of the company. Details of related party
transactions are contained in the Annual Report and Accounts for the year
ended 30 March 2023.
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the company can be divided into
the following areas:
· Investment policy and process;
· Investment strategy and share price movements;
· Climate Change;
· Geopolitical;
· Liquidity risk;
· Gearing risk;
· Regulatory risk;
· Credit and counterparty risk;
· Loss of key personnel;
· Operational; and
· Financial.
The board reported on the above principal risks and uncertainties in the
Annual Report & Accounts for the year ended 31 March 2023.
Going Concern
The directors, having considered the company's investment objective, risk
management and capital management policies, the diversified portfolio of
readily realisable securities which can be used to meet short-term funding
commitments and the ability of the company to meet all of its liabilities and
ongoing expenses, are satisfied that the company has adequate resources to
continue in operation for the foreseeable future. The directors continue to
adopt the going concern basis of accounting in preparing the accounts.
As part of its assessment, the board has noted that shareholders will be
required to vote on the continuation of the company at the 2026 AGM.
Further information regarding the planned life of the company can be found on
the report.
Directors' Responsibility Statement
The directors of Jupiter Green Investment Trust PLC confirm to the best of
their knowledge:
(a) The condensed set of financial statements have been prepared in accordance
with applicable UK adopted International Accounting Standards and give a true
and fair view of the assets, liabilities, financial position and profit or
loss of the company as at 30 September 2023.
(b) The Chairman's Statement, the Investment Adviser's Review and the Interim
Management Report include a fair review of the information required by DTR
4.2.7R of the Disclosure and Transparency Rules.
(c) The Interim Management Report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency Rules.
The Half Yearly Financial Report has not been audited or reviewed by the
company's auditor.
For and on behalf of the board
Michael Naylor
Chairman
Statement of Comprehensive Income for the six months to 30 September 2023
(unaudited)
Six months to 30 September 2023 Six
months to 30 September 2022
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Loss on investments held at fair value through profit or loss (Note 2)
- (5,660) (5,660) - (6,126) (6,126)
Foreign exchange (loss)/gain - (4) (4) - 1,038 1,038
Income 454 - 454 495 - 495
Total (loss)/income 454 (5,664) (5,210) 495 (5,088) (4,593)
Investment management fee (44) (133) (177) (45) (136) (181)
Other expenses (113) - (113) (280) - (280)
Total expenses (157) (133) (290) (325) (136) (461)
Net loss on ordinary activities before finance costs and taxation
297 (5,797) (5,500) 170 (5,224) (5,054)
Finance costs (24) (69) (93) (9) (28) (37)
Return/(loss) on ordinary activities before taxation 273 (5,866) (5,593) 161 (5,252) (5,091)
Taxation (68) - (68) (77) - (77)
Net loss after taxation 205 (5,866) (5,661) 84 (5,252) (5,168)
Loss per ordinary share (Note 3) 0.99p (28.36)p (27.37)p 0.39p (24.56)p (24.17)p
The total column of this statement is the income statement of the Company,
prepared in accordance with IFRS. The supplementary revenue return and capital
return columns are both prepared under guidance produced by the Association of
Investment Companies (AIC). All items in the above statement derive from
continuing operations.
No operations were acquired or discontinued during the period.
All income is attributable to the equity holders of Jupiter Green Investment
Trust PLC. There are no minority interests.
The financial information does not constitute 'accounts' as defined in section
434 of the Companies Act 2006.
Statement of Financial Position as at 30 September 2023
30 September 2023 31 March 2023
(unaudited) (audited)
£'000 £'000
Non current assets
Investments held at fair value through profit or loss 46,769 55,002
Current assets
Prepayments and accrued income 141 1,459
Cash and cash equivalents 3,292 2,954
3,433 4,413
Total assets 50,202 59,415
Current liabilities
Other payables (3,190) (4,837)
Total net assets less current liabilities 47,012 54,578
Capital and reserves
Called up share capital 34 34
Share premium 2,485 2,468
Redemption reserve* 239 239
Retained earnings (Note 5)* 44,254 51,837
Total equity shareholders' funds 47,012 54,578
Net asset value per ordinary share (Note 6) 232.84p 258.58p
Diluted net asset value per ordinary share 235.18p 259.86p
* Under the company's Articles of Association, dividends may be paid out of
any distributable reserve of the company.
Approved by the board of directors and authorised for issue in December 2023
and signed on its behalf by:
Michael Naylor
Chairman
Company Registration number 05780006
Statement of changes in Equity for the six months to 30 September 2023
Share Capital Share Premium Redemption Retained Earnings
For the six months to Reserve Total
30 September 2023 (unaudited) £'000 £'000 £'000 £'000 £'000
Balance at 31 March 2023 34 2,468 239 51,837 54,578
Net loss for the period - - - (5,661) (5,661)
Ordinary shares reissued from treasury - 17 - 19 36
Ordinary shares repurchased - - - (1,941) (1,941)
Balance at 30 September 2023 34 2,485 239 44,254 47,012
Share Capital Share Premium Redemption Retained Earnings
For the six months to Reserve Total
30 September 2022 (unaudited) £'000 £'000 £'000 £'000 £'000
Balance at 31 March 2022 34 2,465 239 52,652 55,390
Net loss for the period - - - (5,168) (5,168)
Ordinary shares reissued from treasury - 3 - 3 6
Ordinary shares repurchased - - - (208) (208)
Balance at 30 September 2022 34 2,468 239 47,279 50,020
Cash Flow Statement for the six months to 30 September 2023 (Unaudited)
2023 2022
£'000 £'000
Cash flows from operating activities
Investment income received (gross) 473 476
Deposit interest received 24 1
Investment management fee paid (214) (153)
Other cash expenses (144) (203)
Net cash inflow from operating activities before taxation 138 121
Interest paid (93) (37)
Taxation (68) (77)
Net cash (outflow)/inflow from operating activities (23) 7
Net cash flows from investing activities
Purchases of investments (3,449) (1,545)
Sales of investments 5,719 3,297
Net cash inflow from investing activities 2,270 1,752
Cash flows from financing activities
Shares repurchased (1,941) (208)
Shares reissued from treasury 36 6
Net cash outflow from financing activities (1,905) (202)
Increase in cash 342 1,557
Cash and cash equivalents at start of period 2,954 4,614
Realised (loss)/gain on foreign currency (4) 1,038
Cash and cash equivalents at end of period 3,292 7,209
Notes to the Financial Statements
1. Accounting Policies
The Accounts comprise the unaudited financial results of the company for the
period to 30 September 2023.
The Accounts are presented in pounds sterling, as this is the functional
currency of the Company. All values are rounded to the nearest thousand pounds
(£'000) except where indicated.
The accounts have been prepared in accordance with UK adopted International
Accounting Standards.
Where presentational guidance set out in the Statement of Recommended Practice
(SORP) for Investment Trusts issued by the Association of Investment Companies
(AIC) in April 2021 is consistent with the requirements of UK adopted
International Accounting Standards, the directors have sought to prepare the
financial statements on a basis compliant with the recommendations of the
SORP.
The Board continues to adopt the going concern basis in the preparation of the
financial statements.
(a) Income recognition
Income includes dividends from investments quoted ex-dividend on or before the
date of the Statement of Financial Position.
Dividends receivable from equity shares are taken to the revenue return column
of the Statement of Comprehensive Income.
Special dividends are treated as repayment of capital or as revenue depending
on the facts of each particular case.
(b) Presentation of Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company and
in accordance with Association of Investment Companies (AIC), supplementary
information which analyses the Statement of Comprehensive Income between items
of a revenue and capital nature has been presented alongside the statement.
An analysis of retained earnings broken down into revenue (distributable)
items and capital (distributable) items is given in Note 5.
Investment Management fees and finance costs are charged 75 per cent. to
capital and 25 per cent to revenue (2022: 75 per cent to capital and 25 per
cent to revenue). All other operational costs (including administration
expenses to capital) are charged to revenue.
i. Basis of valuation of investments
Investments are recognised and derecognised on a trade date where a purchase
and sale of an investment is under contract whose terms require delivery of
the investment within the timeframe established by the market concerned, and
are initially measured at cost, being the consideration given.
All investments are classified as held at fair value through profit or loss.
All investments are measured at fair value with changes in their fair value
recognised in the Statement of Comprehensive Income in the period in which
they arise. The fair value of listed investments is based on their quoted bid
price at the reporting date without any deduction for estimated future selling
costs.
Foreign exchange gains and losses on fair value through profit and loss
investments are included within the changes in the fair value of the
investments.
For investments that are not actively traded and/or where active stock
exchange quoted bid prices are not available, fair value is determined by
reference to a variety of valuation techniques. These techniques may draw,
without limitation, on one or more of: the latest arm's length traded prices
for the instrument concerned; financial modelling based on other observable
market data; independent broker research; or the published accounts relating
to the issuer of the investment concerned.
2. Loss on investments
Six months to 30.09.23 Six months to 30.09.22
£'000 £'000
Net gain realised on sale of investments 1,333 1,175
Movement in unrealised losses (6,993) (7,301)
Loss on investments (5,660) (6,126)
3. Earnings per Ordinary Share
The earnings per Ordinary share figure is based on the net loss for the six
months of £5,661,000 (six months to 30 September 2022: net loss £5,168,000)
and on 20,681,929 Ordinary shares (six months to 30 September 2022:
21,381,592), being the weighted average number of Ordinary shares in issue
during the period.
The earnings per ordinary share figure detailed above can be further analysed
between revenue and capital, as below.
Six months to 30.09.23 Six months to 30.09.22
£'000 £'000
Net revenue profit 205 84
Net capital loss (5,866) (5,252)
Net total loss (5,661) (5,168)
Weighted average number of ordinary shares in issue during the period 20,681,929 21,381,592
Revenue earnings per ordinary share (p) 0.99 0.39
Capital losses per ordinary share (p) (28.36) (24.56)
Total losses per ordinary share (p) (27.37) (24.17)
4. Transaction Costs
The following transaction costs were incurred during the period:
Six months to 30.09.23 Six months to 30.09.22
£'000 £'000
Purchases 2 1
Sales 2 2
Total 4 3
5. Retained Earnings
The table below shows the movement in the retained earnings analysed between
revenue and capital items.
Revenue Capital Total
£'000 £'000 £'000
At 31 March 2023 10 51,827 51,837
Movement during the period:
Net return/(loss) for the period 205 (5,866) (5,661)
Ordinary shares reissued from treasury - 19 19
Shares repurchased - (1,941) (1,941)
At 30 September 2023 215 44,039 44,254
6. Net asset value per ordinary share
The net asset value per ordinary share is based on the net assets attributable
to the ordinary shareholders of £47,012,000 (31 March 2023: £54,578,000) and
on 20,190,779 (31 March 2023: 21,107,155) ordinary shares, being the number of
ordinary shares in issue at the period end excluding treasury shares.
Six months to Year ended
30.09.23 31
.0
3.
23
£'000 £'
00
0
Undiluted
Ordinary shareholders' funds 47,012 54,578
Number of ordinary shares in issue 20,190,779 21,107,155
Net asset value per ordinary share (pence) 232.84p 258.58p
Diluted
Ordinary shareholders' funds 52,233 60,333
Number of ordinary shares in issue 22,209,857 23,217,871
Net asset value per ordinary share 235.18p 259.86p
(pence)
The diluted net asset value per ordinary share assumes that all outstanding
dilutive Subscription shares, being one for ten ordinary shares, will be
converted to ordinary shares at the end of the financial year.
7. Fair valuation of investments
The financial assets measured at fair value in the Statement of Financial
Position are grouped into the fair value hierarchy as follows:
30 September 2023 31 March 2023
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Equity Investments 46,769 - - 46,769 55,002 - - 55,002
46,769 - - 46,769 55,002 - - 55,002
Level 1 reflects financial instruments quoted in an active market.
Level 2 reflects financial instruments whose fair value is evidenced by
comparison with other observable current market transactions in the same
instrument or based on a valuation technique whose variables includes only
data from observable markets.
Level 3 reflects financial instruments whose fair value is determined in whole
or in part using a valuation technique based on assumptions that are not
supported by prices from observable market transactions in the instrument and
not based on available observable market data.
8. Principal risk profile
The principal risks which the Company faces include exposure to:
(i) market price risk, including currency risk, interest rate risk and other
price risk;
(ii) credit and counterparty risk; and
(iii) liquidity risk.
Market price risk - This is the risk that the fair value or future cash flows
of a financial instrument held by the Company may fluctuate because of changes
in market prices. This market risk comprises three elements - currency risk,
interest rate risk and other price risk.
Credit and counterparty risk - This is the exposure to loss from the failure
of a counterparty to deliver securities or cash for acquisitions or to repay
deposits.
Liquidity risk - This is the risk that the Company will encounter difficulty
in meeting obligations associated with financial liabilities.
Further details of the Company's management of these risks can be found in
Note 13 of the company's Annual report and accounts for the year ended 31
March 2023.
There have been no changes to the management of or the exposure to these risks
since that date.
9. Related Parties
Jupiter Unit Trust Managers Limited ('JUTM'), the Alternative Investment Fund
Manager, is a company within the same group as Jupiter Asset Management
Limited ('JAM'), the Investment Adviser. JUTM receives an investment
management fee as set out below.
JUTM is contracted to provide investment management services to the company
subject to termination by not less than twelve months' notice by either party.
The basis for calculation of the management fee charged to the company is a
tiered fee amounting to 0.70% of net assets up to £150 million, reducing to
0.60% for net assets over £150 million and up to £250 million, and reducing
further to 0.50% for net assets in excess of £250 million, per annum, after
deduction of the value of any Jupiter managed investments.
The management fee payable to JUTM for the period 1 April 2023 to 30 September
2023 was £176,759 (year to 31 March 2023: £369,162) with £26,922 (31 March
2023: £64,344) outstanding at period end.
The Company has invested from time to time in funds managed by Jupiter
Investment Management PLC or its subsidiaries. There was no such investment
during current period (31 March 2023: Nil).
No investment management fee is payable by the Company to Jupiter Asset
Management Limited in respect of the Company's holdings in investment trusts,
open-ended funds and investment companies in respect of which Jupiter
Investment Management Group Limited, or any subsidiary undertaking of Jupiter
Investment Management Group Limited, receives fees as investment manager or
investment adviser.
Availability of Half Yearly Financial Report
The Half Yearly Financial Report will shortly be available on company's
website www.jupiteram.com/JGC.
A copy of the Half Yearly Financial Report will also be submitted to the
National Storage Mechanism and will soon be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
By Order of the Board
Jupiter Asset Management Limited
Company Secretary
18 December 2023
For further information, please contact:
Nick Black
Head of Investment Trusts & Alternatives
Jupiter Asset Management Limited
investmentcompanies@jupiteram.com (mailto:investmentcompanies@jupiteram.com)
020 3817 1000
END
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