Annual Financial Report

RNS Number : 2981K

Jupiter Green Investment Trust Plc

23 June 2014

 



Jupiter Green Investment Trust plc

('the Company')

Annual Report & Accounts for the year ended 31 March 2014

Financial Highlights

Performance
			As at	As at	%
			31.03.14	31.03.13	change
Total assets less current liabilities (£'000)			38,142	37,571	+16.5*
MSCI World Small Cap Index (Total Return)			195.995	177.045	+10.7
* Investment performance has been adjusted for the repurchase of Ordinary shares during the year.
			As at	As at	%
Ordinary Share Performance			31.03.14	31.03.13	change
Mid market price (p)			141.75	115.88	+22.3
Net asset value per Ordinary share (p)			145.00	124.42	+16.5
Discount to net asset value (%)			2.2	6.9	-
Performance since launch
	Total Assets less Current Liabilities	Net Asset Value per Ordinary Share	Value of Dividends paid since launch	Year- on-year change in Net Asset Value per Ordinary Share	Year- on-year change in Benchmark Index
	£'000	p	p	%	%
8 June 2006 (launch)	24,297	97.07	-	-	-
2007	31,679	118.07	-	+22.3	+18.4
2008	52,734	114.14	-	-3.9	-7.4
2009	33,809	76.86	-	-32.7	-27.6
2010	43,590	106.65	-	+38.8	+63.1
2011	41,085	120.49	0.40	+13.0	+16.2
2012	36,181	108.49	0.60	-10.0	-4.0
2013	37,571	124.42	1.20	+14.7	+18.3
2014	38,142	145.00	1.10	+16.5	+10.7

Chairman's Statement

It is with pleasure that I present the Annual Report for the Jupiter Green Investment Trust, covering the year to 31 March 2014. Against a backdrop of economic recovery in the US, the UK and parts of Europe, global stock markets performed reasonably well. However, the decision by the US Federal Reserve to reduce its stimulus programme, a nascent step towards normalised monetary policy, kept sentiment in check. Fears over China's ability to resolve problems in its shadow banking sector also troubled investors. As the period came to an end, investors had to contend with a rapid economic slowdown in emerging markets, as well as a growing geopolitical crisis in Ukraine.

Against this backdrop, the Company performed admirably. During the period under review your Company's total assets less liabilities, adjusted for share cancellations and warrant conversions, increased by 16.5 per cent. to £38,142,000. This compares with an increase in the Company's benchmark index, the MSCI World Small Cap Index of 10.7percent. over the same period. During the period under review, your company's Net Asset Value per Ordinary Share rose by 16.5 per cent. to 145.00p, whilst the middle market price increased by 22.3 per cent. to 141.75p. Over the same period, the discount to Net Asset Value decreased from 6.9 per cent. to 2.2 per cent. and has remained consistent at close to that level to date. This reduction is a result of the Discount Management Policy adopted by the Board since April 2012.

I recommend the Investment Manager's review in which light is shone on the financial improvements in the environmental sector that have underpinned the Trust's strong performance this year. Pressures in areas such as renewable energy and waste management abated, while improved economic conditions in Europe proved beneficial to holdings listed there. The year also provided an opportunity to build up the Company's exposure to the solar sector. This form of alternative energy continues to show great promise and is as affordable as conventional fossil fuel energy in sunnier regions of the world.

The manager's review also highlights a number of key developments in terms of environmental policy, as well as the release of important analysis by the Intergovernmental Panel on Climate Change's (IPCC). In September last year the IPCC revealed that "it is extremely likely that human influence has been the dominant cause of the observed warming since the mid-20th century". In its most recent analysis, the committee provided the stark conclusion that human society is underprepared for the expected effects of climate change. However, it also suggested that it is not too late to take steps to avoid a critical rise in global warming above 2°C, although this would only be achieved through dramatic improvements to energy efficiency and increased adoption of alternative energy. These reports were released at a time of increased debate over climate change following extreme weather events such as the devastating super typhoon in the Philippines of last year, freezing conditions in the US over the winter and heavy flooding in the UK.

The underlying message from the IPCC is that much more needs to be done to adapt to and potentially mitigate climate change. In that regard the Company continues to provide an important function as a vehicle which enables investors to allocate capital to a wide cross section of businesses that seek to provide solutions to complex environmental problems.

Dividends

As mentioned in last year's Annual Report, the Board has not set an objective of a specific portfolio yield of the Company. However, a number of the companies within our investment portfolio continue to grow their dividends over time, accordingly, it must be noted that the Company seeks to distribute the majority of it's revenue wherever possible. On 19 June 2014 the Company declared an interim dividend of 1.1p per share in respect of the year ended 31 March 2014 (2013: 1.2p) payable on 25 July 2014 to Shareholders on the register on 27 June 2014.

Share issues

Shareholders were given the opportunity to subscribe for new Ordinary shares on 2 April 2014 on the basis of one new Ordinary share for every ten Ordinary shares held. The subscription price was 124.42p. The Board is pleased to report that subscriptions were received from shareholders resulting in the issue of 804,397 new Ordinary shares.

Share Buybacks and Discount Management

The Board implements a discount policy under which it will use share buy backs and new issues of shares with the intention of ensuring that, in normal market conditions, the market price of the Company's shares will track their underlying Net Asset Value.

The Board believes that this commitment to the active removal of discount risk will provide materially improved liquidity for both buyers and sellers of the Company's shares.

The Board further believes that the Company's strong investment performance, combined with its attractive dividend and the adoption of this nil discount control policy will enhance the attraction of the Company to investors and improve the Company's ability to grow over time.

Shareholders should note that there can be no guarantee that any discount control mechanism implemented by the Board will have its desired effect. The making and timing of share buy backs is subject to a number of legal and regulatory regulations and, subject to these, will always remain at the discretion of the Board.

Gearing

In October 2013 your Company entered into a new £3 million flexible loan arrangement with Scotia Europe plc which is being extended into the new financial year. Gearing is used strategically by the Fund Manager to enhance the Company's returns when markets are expected to rise.

As at 31 March  2014 there were no amounts drawn down under the facility.

Administration

A new Global Custody and Administration arrangement has been entered into with JP Morgan Chase Bank, N.A. which came into effect on 1 October 2013.

The appointment of JP Morgan Chase Bank, N.A. should have been relatively seamless from the perspective of shareholders, and we hope that it will enable the Board and Investment Manager to receive improved management information and other useful operational tools in relation to your Company's investment portfolio. We also anticipate that an associate of JP Morgan Chase Bank, N.A. will be appointed as depositary to the Company within the context of the Alternative Investment Fund Managers' Directive ("AIFMD"), to which the Company will become subject later this year.

Continuation Vote

At the Annual General Meeting on 31 July 2014 an Ordinary Resolution will be proposed to the effect that the Company will continue in existence as an investment trust. Should the Resolution be passed, a similar Ordinary Resolution will be proposed at the 2017 Annual General Meeting and at every third such occasion thereafter. Your Directors urge you to vote on this Resolution, ideally in favour.

Perry K O Crosthwaite

Chairman

19 June 2014

Investment Manager's Review

Performance Review

For the year ended 31 March 2014, the total return for the Trust was 16.5 per cent.* compared to returns of 10.7 per cent. for the Trust's benchmark, the MSCI World Small Cap Index.

* Source: Jupiter Asset Management.

Market review

In the 12 months under review global stock markets pushed higher, although trading was far from smooth. Economic expansion in the US and UK was warmly welcomed, as was the nascent recovery in peripheral Europe. However, the prospects of more normalised monetary policy in the US and a cooling Chinese economy kept the market's enthusiasm in check. Late in the period, investors became far more cautious after economic growth in emerging markets deteriorated and tensions in Ukraine escalated.

From an environmental investment perspective, there were a number of pivotal policy developments. To name a few, the EU unveiled tougher fuel efficiency standards and a climate and energy blueprint which requires a 40 per cent. cut in regional greenhouse gas emissions from 1990 levels by 2030. This latter target reaffirmed the region's place as the global leader in trying to mitigate the rise of CO₂ in the Earth's atmosphere and avoid a 2°C rise in global temperatures.

Fund review

The Trust achieved a healthy return, comfortably outperforming its broad-based small cap benchmark. Holdings from the wind and solar power sectors enjoyed a marked improvement in supply and demand dynamics for their respective industries. The cost competitiveness of alternative energy has improved considerably in recent years. For countries in the sunniest parts of the world, utility scale solar is already cheaper than oil and Asian LNG¹. And unlike the costs of fossil fuel extraction, which is becoming more difficult and expensive, solar technology is improving and becoming cheaper. These dynamics alone create a strong economic incentive for greater adoption of solar technology, a market which only made up 0.17 per cent. of the total supply of energy worldwide in 2012². The price of wind power also achieved the milestone of falling below that of conventional energy for the first time on a global basis at the end of the period. Vestas Wind Systems, which is a leaner operation after years of cost cutting, surged as its order book recovered. Wacker Chemie, a new holding from the solar sector, also performed admirably.

There were several other highlights from across the portfolio. Environmental engineering firms such as WS Atkins and Stantec enjoyed the tailwind of economic recovery in the US and UK. High welfare and organic food holdings Cranswick and United Natural Foods continued to grow market share against mainstream food producers. Tighter fuel efficiency standards underpinned gains made by Johnson Matthey (catalytic converters) and BorgWarner (turbo chargers).Meanwhile, pricing pressures eased in the waste management sector to the benefit of Suez Environnement, Veolia Environnement and Shanks Group.

There were naturally some disappointments. Itron, a US company at the forefront of smart meter technology, struggled due to slack in its project pipeline. It is now taking steps to restructure its business, reduce costs and roll out more sophisticated metering technology. Elsewhere, a poor earnings statement early in the period led to a de-rating of electric motor specialist Regal Beloit that the stock did not recover from, despite a marked improvement in its earnings since. Andritz, a hydro and biofuels business, also detracted after it experienced cost overruns at a Brazilian pulp mill.

We made minor adjustments to the Trust during the period. We established holdings in solar stocks Wacker Chemie (Germany) and First Solar (US) and water treatment business Xylem (US). Meanwhile, some profits were taken in SunOpta (health foods), WS Atkins and Eurofins Scientific (food testing).

From an investment point of view, we remain focused on the process of "mainstreaming" whereby environmental products and services become more economically competitive compared to mainstream offerings. Energy efficiency, which is among the largest themes in the Trust, is an area which is enjoying a rapid rise in mainstream competitiveness. The International Energy Agency estimates that between 2005 and 2010 energy efficiency measures across 11 of its member countries (Australia, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom and the United States) saved the energy equivalent of US$420 billion worth of oil³. This led IEA Executive Director Maria van der Hoeven to suggest that energy efficiency is becoming the world's "first fuel". Included in this theme are businesses which produce energy saving solutions for buildings, transportation (rail, road and air) and heavy industry.

Reduced portfolio yield

The underlying strategy of the Jupiter Green Investment Trust is to focus on long term capital growth of our investment. This may result in a variable dividend profile dependant on the managers view of investment. It should be noted that during 2013 we did see one holding FirstGroup actually reduce their dividend as part of a capital structure.

Outlook

After a strong calendar year in 2013, the stock market is struggling to make headway. Company earnings need to catch up with market expectations in some sectors and there are several areas of general uncertainty in the outlook: tapering of quantitative easing in the US and geopolitical tensions in Ukraine, for example. We therefore would not be surprised to see further market volatility in coming months.

Nevertheless, increasing economic competitiveness, greater investment in technology and a general tightening of environmental policy worldwide provide a measure of confidence about the long-term outlook for the environmental sector. We have been impressed by the way environmental technologies are being adopted as part of the wider economic recovery in the West, especially in the area of energy efficiency. LED lighting, for example, is forecast to account for 45 per cent. of the global lighting market in 2016, up from just 4 per cent. in 2010⁴, while energy efficiency in cars has become a key selling point in the reviving auto sector. As mentioned earlier, energy efficiency is a key investment theme in the Company. Meanwhile, we are starting to see increased investment by China's authorities in areas such as renewable energy, water infrastructure and food sustainability projects.

During the period under review, the Intergovernmental Panel on Climate Change's (IPCC) released three important reports that constituted its 5th assessment of climate change. The first of these was Climate Change 2013: The Physical Science Basis, a landmark report in which showed for the first time that scientists are 95 per cent. confident that global warming since the middle of the 20th century has been caused by human activity.

The follow-up reports, Impacts, Adaption, and Vulnerability and Climate Change 2014: Mitigation of Climate Change, highlighted significant shortcomings in the action taken so far to deal with the many risks associated with climate change and asserted that the world is generally unprepared for its effects. However, the overriding conclusion of the latter was that the goal of limiting global warming to 2°C is still attainable, although only if urgent action is taken: the use of low carbon energy would have to triple or quadruple by 2050. Importantly, the mitigation report attempts to dispel the concern that tackling the causes of climate change will be prohibitively expensive. It estimates that a transition away from fossil fuels to renewable energy and a broad increase in energy efficiency would cut a mere 0.06 per cent. out of an assumed global economic growth rate of between 1.3 per cent. and 3.0 per cent. per annum.

For this to be achieved, decarbonisation and improved efficiency would have to occur across a number of industries. The electricity sector would have to make the most profound adjustments to decarbonise production processes, which would result in a cut in revenues for coal and oil producers. Changes would also need to occur in areas such as transport, buildings, heavy industry and agriculture. Absent from the reports were the benefits of cutting greenhouse emissions, such as increased energy security and reduced pollution.

While the IPCC's findings suggest that the goal of limiting global warming is attainable, it will not be achieved without a significant change in investment patterns and international cooperation. We will be monitoring what impact these reports have on government policy and business strategy, but have already noted increased debate over climate adaptation and mitigation following the recent extreme weather events in the US and UK.

These reports add weight to our central investment thesis that environmental investing is about investing in the long-term structural growth of the global economy. Most notably, the report highlights the advances made in the area of renewable energy, where a maturing industry whose technology is a cost effective alternative to conventional energy sources and can be used at a significant scale. In 2012 alone, alternative energy accounted for half the new electricity capacity added globally and the rapid acceleration of renewable use and suggested improvements to energy efficiency bode well for our investments in these areas.

While we welcome this latest IPCC report, we are of course mindful that it is very difficult to quantify its immediate tangible benefits. We therefore remain very much focused on the current fundamental attributes of the companies in which we invest, the strength of their technologies and the prevailing trends in the industries in which they operate.

1.     Based on MMBTU (i.e. one million British Thermal Units). Source: Bernstein Research: Energy & Power Blast: Equal and Opposite...

        If Solar Wins, Who Loses? 4 April 2014

2.     Source: Bernstein Research: Energy & Power Blast: Equal and Opposite... If Solar Wins, Who Loses? 4 April 2014

3.     Source: http://www.iea.orgnewsroomandeventspressreleases/2013/ october/name,43788,en.html

4      Source: HSBC Global Research, 2014: the year of reconnect 6 January 2014

Charlie Thomas

Jupiter Asset Management Limited

19 June 2014

INVESTMENT PORTFOLIO

as at 31 March 2014

		31 March 2014		31 March 2013
	Market value	Percentage	Market value	Percentage
Company	£'000	of Portfolio	£'000	of Portfolio
Wabtec	1,455	3.8	1,518	4.2
Cranswick	1,342	3.5	1,125	3.1
Ricardo Group	1,251	3.2	939	2.6
Stantec	1,244	3.2	1,324	3.6
RPS Group	1,057	2.7	936	2.6
Novozymes	988	2.6	1,179	3.2
Johnson Matthey	981	2.6	978	2.7
Smith A. O.	957	2.5	1,075	2.9
FirstGroup	940	2.4	540	1.5
LKQ Corporation	922	2.4	870	2.4
United Natural Foods	895	2.3	709	1.9
Horsehead Holdings	862	2.2	896	2.5
Valmont Industries	857	2.2	1,035	2.8
Emcor Group	853	2.2	1,124	3.1
National Express Group	819	2.1	624	1.7
WS Atkins	813	2.1	819	2.2
Tomra Systems	810	2.1	950	2.6
Whole Foods Market	807	2.1	971	2.7
BorgWarner	778	2.0	559	1.5
Vestas Wind System	697	1.8	159	0.4
Shanks Group	666	1.7	488	1.3
China Everbright	608	1.6	589	1.6
Shimano	597	1.6	768	2.1
Kurita Water	564	1.5	649	1.8
Toray Industries	560	1.5	654	1.8
Andritz	532	1.4	664	1.8
Veolia Environnement	527	1.4	385	1.1
Latchways	524	1.4	567	1.6
EDP Renovaveis	520	1.4	434	1.2
Covanta	519	1.4	-	-
Clean Harbors	509	1.3	417	1.1
Centotec Sustainable	504	1.3	419	1.2
Keller Group	497	1.3	600	1.6
Regal Beloit	492	1.3	-	-
Air Water	482	1.2	567	1.6
Pure Technologies	482	1.2	689	1.9
Xylem	455	1.2	181	0.5
Newalta	406	1.1	368	1.0
Azbil	399	1.0	388	1.1
Mayr-Melnhof Karton	382	1.0	383	1.0
SSE	380	1.0	635	1.7

Suez Environnement	378	1.0	272	0.7
Transpacific Industries	376	1.0	416	1.1
Greenko Group	374	1.0	-	-
SKF	372	1.0	407	1.1
Hub Group	369	1.0	405	1.1
Schnitzer Steel	367	0.9	388	1.1
Schneider Electric	358	0.9	337	0.9
Daiseki	353	0.9	394	1.1
China Longyuan Power	343	0.9	464	1.3
NSK	334	0.9	420	1.2
Wacker Chemie	330	0.9	-	-
Veeco Instruments	314	0.8	327	0.9
Sensata Technologies	307	0.8	-	-
Itron	300	0.8	447	1.2
Keurig Green Mountain	277	0.7	-	-
Vossloh	275	0.7	334	0.9
Watts Water	271	0.7	253	0.7
First Solar	260	0.7	-	-
Augean	243	0.6	201	0.6
Casella Waste	235	0.6	229	0.6
Renewable Energy Generation	225	0.6	196	0.5
SunOpta	223	0.6	303	0.8
Waterfurnace Renewable Energy	213	0.5	210	0.6
China Suntien Green Energy	211	0.5	309	0.8
Ameresco	197	0.5	219	0.6
Abengoa ADR	193	0.5	-	-
Abengoa	183	0.5	112	0.3
Atlantis Resources	177	0.5	-	-
Capstone Turbine	175	0.4	194	0.5
Kansas City Southern	153	0.4	278	0.8
China High Speed Transmissions	82	0.2	59	0.2
TEG Group	69	0.2	113	0.3
Renova Energy	Nil	Nil	Nil	Nil
TOTAL	38,470	100.0

Jupiter Asset Management Limited

19 June 2014

STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2014

	Year ended 31 March 2014			Year ended 31 March 2013
	Revenue	Capital		Revenue	Capital
	£'000	£'000	£'000	£'000	£'000	£'000
Gains from investments held at fair value through profit or loss	-	6,776	6,776	-	4,751	4,751
Foreign exchange (loss)/gain	-	(5)	(5)	-	20	20
Income	596	-	596	756	-	756
Total income	596	6,771	7,367	756	4,771	5,527
Investment management fee	(33)	(297)	(330)	(29)	(260)	(289)
Investment performance fee	-	(350)	(350)	-	-	-
Other expenses	(327)	-	(327)	(308)	(223)	(531)
Total expenses	(360)	(647)	(1,007)	(337)	(483)	(820)
Net return before finance costs and tax	236	6,124	6,360	419	4,288	4,707
Finance costs	(2)	-	(2)	-	-	-
Return on ordinary activities before taxation	234	6,124	6,358	419	4,288	4,707
Taxation	(44)	-	(44)	(49)	-	(49)
Net return after taxation	190	6,124	6,314	370	4,288	4,658
Return per Ordinary share	0.66p	21.32p	21.98p	1.17p	13.54p	14.71p
Diluted return per Ordinary share	0.66p	21.22p	21.88p	1.17p	13.54p	14.71p

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 year.

All income is attributable to the equity holders of Jupiter Green Investment Trust PLC. There are no minority interests.

Statement of Financial Position
as at 31 March 2014

	2014	2013
	£'000	£'000
Non current assets
Investments held at fair value through profit or loss	38,470	36,468
Current assets
Prepayments and accrued income	64	65
Cash and cash equivalents	96	1,414
	160	1,479
Total assets	38,630	37,947
Current liabilities
Other payables	(488)	(376)
Total assets less current liabilities	38,142	37,571
Capital and reserves
Called up share capital	33	33
Share premium	28,348	27,285
Redemption reserve	239	238
Special reserve	24,292	24,292
Retained earnings	(14,770)	(14,277)
Total equity shareholders' funds	38,142	37,571
Net Asset Value per Ordinary share	145.00p	124.42p
Diluted Net Asset Value per Ordinary share	143.13p	122.97p

RECONCILIATION OF CHANGES IN EQUITY
for the year ended 31 March 2014

For the year ended 31 March 2014	Share Capital	Share Premium	Special Redemption			Retained Earnings	Total
			Reserve	Reserve
	£'000	£'000	£'000		£'000	£'000	£'000
Balance at 31 March 2013	33	27,285	24,292		238	(14,277)	37,571
Net gain for the year	-	-	-		-	6,314	6,314
Dividends paid	-	-	-		-	(370)	(370)
Ordinary shares issued	1	1,063	-		-	-	1,064
Ordinary shares repurchased	(1)	-	-		1	(6,437)	(6,437)
Balance at 31 March 2014	33	28,348	24,292		239	(14,770)	38,142

For the year ended 31 March 2013	Share Capital	Share Premium	Special Redemption			Retained Earnings	Total
Balance at 31 March 2012	37	27,285	24,292		234	(15,667)	36,181
Net gain for the year	-	-	-		-	4,658	4,658
Dividends paid	-	-	-		-	(196)	(196)
Ordinary shares repurchased	(4)	-	-		4	(3,072)	(3,072)
Balance at 31 March 2013	33	27,285	24,292		238	(14,277)	37,571

CASH FLOW STATEMENT
for the year ended 31 March 2014

		2014	2013
		£'000	£'000
Cash flows from operating activities
Investment income received		583	761
Interest received		-	2
Investment management fee paid		(328)	(261)
Other cash expenses		(288)	(304)
Net cash (outflow)/inflow from operating activities before taxation		(33)	198
Interest paid		(1)	-
Taxation		(44)	(49)
Net cash (outflow)/inflow from operating activities		(77)	149
Net cash flows from investing activities
Purchases of investments		(3,394)	(1,474)
Sale of investments		8,165	3,650
Net cash inflow from investing activities		4,771	2,176
Cash flows from financing activities
Shares issued		1,064	-
Shares repurchased		(6,700)	(2,809)
Reconstruction costs		-	(223)
Equity dividends paid		(370)	(196)
Net cash outflow from financing activities		(6,006)	(3,228)
(Decrease)/Increase in cash		(1,313)	(903)
Change in cash and cash equivalents
Cash and cash equivalents at start of year		1,414	2,297
Realised (loss)/gain on foreign currency		(5)	20
Cash and cash equivalents at end of year		96	1,414

Notes to the accounts

1.     Income

	Year ended 31 March 2014	Year ended 31 March 2013
	£'000	£'000
Income from investments
Dividends from UK companies	257	394
Dividends from overseas companies	339	360
	596	754
Other income
Deposit interest	-	2
	-	2
Total income	596	756

2.   Reconciliation of net cash outflow from operating activities

	2014 £'000	2013 £'000
Net return before finance costs and taxation	6,360	4,707
Profit/(Loss) on investments	(6,776)	(4,751)
Increase/(decrease) in prepayments and accrued income	1	13
(Decrease)/increase in accruals and other creditors	377	26
Reconstruction costs	-	223
Foreign exchange loss/(gain)	5	(20)
Net cash (outflow)/inflow from operating activities	(33)	198

3.   Related parties

Mr Crole is an employee of Jupiter Asset Management Limited which receives investment management fees as set out below. Jupiter Administration Services Limited, a fellow subsidiary company of Jupiter Investment Management Group Limited received administration fees as set out below.

Jupiter Asset Management Limited is contracted to provide investment management services to the Company (subject to termination by not less than twelve months' notice by either party) for a fee payable monthly, of one twelfth of 0.85 per cent. of the net assets of the Company after deduction of the value of any Jupiter managed investments. The fee payable for the year ended 31 March 2014 was £330,000 (2013: £289,000) with £54,000 (2013: £53,000) outstanding at the year end.

Jupiter Asset Management Limited is also entitled to an investment performance fee which is based on the outperformance of the Net Asset Value per Ordinary Share over the total return on the Benchmark Index in an accounting year. Any performance fee payable will equal the time weighted average number of Ordinary shares in issue during the period multiplied by 15 per cent. of the amount by which the increase in the Net Asset Value per Ordinary Share (plus any dividends per Ordinary Share paid or payable and any accrual for unpaid performance fees for the period) exceeds the total return on the Benchmark Index. The performance fee will only be payable if the Net Asset Value per Ordinary Share (adjusted as described above) exceeds the highest of (i) the Net Asset Value per Ordinary Share on the last business day of the previous performance period; (ii) the Net Asset Value per Ordinary share on the last day of a performance period in respect of which a performance fee was last paid: and (iii) 100p. The total amount of management fees and any performance fee payable in respect of one accounting period is limited to 1.75 per cent. of the Net Asset Value of the Company on the last business day of the relevant performance period. The performance fee payable for the year ended 31 March 2014 was £350,000 (2013: £Nil). The method for performance fee calculations as outlined above produces a performance fee of £450,000, which has been reduced to £350,000 in accordance with the maximum performance fee cap of 1.75 per cent. of Net Asset Value of the Company on the last business day of the relevant accounting period.

The contract to provide accounting and administration services to the company by Jupiter Administration Services Ltd. ended on 30 September 2013 following an outsourcing arrangement with JPMorgan effective 1 October 2013. The fee paid to 30 September 2013 was £34,000 (31 March 2013: £91,000).

The Company has invested from time to time in funds managed by Jupiter Investment Management Group Limited or its subsidiaries. There were no such holdings as at 31 March 2014.

Going concern

The financial statements have been prepared on a going concern basis. The Directors consider that this is the appropriate basis as they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and also expect an Ordinary resolution to the effect that the Company will continue in it's existence as an Investment Trust to be voted in favour of the resolution at the AGM on 31 July 2014. In considering this, the Directors took into account the Company's investment objective (see page 2), risk management policies and capital management policies (see Note 11), 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. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Availability of annual report

The Annual Report and Accounts are expected to be posted to all registered shareholders shortly and copies may shortly be obtained from the registered office of the Company at 1 Grosvenor Place, London SW1X 7JJ or downloaded from the Company's section of Jupiter Asset Management's website (www.jupiteronline.com/Green)

By Order of the Board

Perry K O Crosthwaite

Chairman

Enquiries:

Richard Pavry

Jupiter Asset Management Limited, Company Secretary

020 7314 4822

 

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