Annual Results for the year ended 31 March 2019

RNS Number : 5216E

Jupiter Green Investment Trust Plc

04 July 2019

 

Jupiter Green Investment Trust plc ('the company')

Legal Entity Identifier: 549300MFRCR13CT1L845

Annual Financial Results for the year ended 31 March 2019

Financial Highlights for the year ended 31 March 2019

Capital Performance	As at	As at
	31.03.19	31.03.18
Total assets less current liabilities (£'000)	35,934	40,147
Ordinary Share Performance	As at	As at
	31.03.19	31.03.18	% change
Mid market price (p)	178.00	186.50	-4.6
Undiluted net asset value per ordinary share▲	188.70	191.31	-1.4
Undiluted net asset value per ordinary share (p)
(with dividends paid of 2.3p added back)	191.00	192.51	-0.8
Diluted net asset value per ordinary share▲	188.70	190.68	-1.4
Diluted net asset value per ordinary share (p)^
(with dividends paid of 2.3p added back)	191.00	191.88	-0.5
FTSE ET100 Total Return Index***	2,847.64	2,687.60	+6.0
Discount to net asset value (%)▲	5.67	2.51	-
Ongoing charges ratio (%) excluding finance costs▲	1.50	1.46	+1.4

Performance Since Launch 

				Year-
				on-year
		Net Asset		change in	Year-
	Total Assets	Value	Dividends	Net Asset	on-year
	less	per	paid per	Value per	change in
	Current	Ordinary	Ordinary	Ordinary	Benchmark
Year ended 31 March	Liabilities	Share	Share	Share	Index***
	£'000	p	p	%	%
8 June 2006 (launch)	24,297	97.07	-	-	-
2007	31,679	118.07	-	+22.3*	-
2008	52,734	114.14	-	-3.9**	-
2009	33,809	76.86	-	-32.7	-36.5
2010	43,590	106.65	-	+38.8	+41.6
2011	41,085	120.49	0.40	+13.0	+11.0
2012	36,181	108.49	0.60	-10.0	-23.8
2013	37,571	124.42	1.20	+14.7	+10.3
2014	38,142	145.00	1.10	+16.5	+28.6
2015	38,545	152.35	0.55	+5.1	+10.6
2016	33,418	150.79	0.65	-1.0	-3.3
2017	38,509	184.33	1.20	+22.2	+28.4
2018	40,147	191.31	1.30	+3.8	+3.7
2019	35,934	188.70^^	2.20†	-1.4	+6.0

*	In September 2006, new Ordinary shares totalling 1,058,859 were issued and in November 2006, new Ordinary shares totalling 600,000 were issued. Investment performance adjusted for the new issues of Ordinary shares.
**	In April, July and August 2007, new Ordinary shares totalling 20,249,074 were issued and a total of 737,963 Ordinary shares were cancelled in March 2008. Investment performance adjusted for the new issues and the subsequent cancellation of shares.
***	The FTSE ET100 Total Return Index was created on 24 December 2017.
^	Being the net asset value per share assuming that all annual subscription rights are taken up.
^^	Being the exercise price for the purposes of the 2020 subscription rights.
†	An interim dividend of 1.0p per ordinary share was paid on 29 March 2019 to shareholders on the register at 15 March 2019. A final dividend of 1.20p is subject to approval by shareholders at the Annual General Meeting to be held on 18 September 2019.
▲	For definitions of the above Alternative Performance Measures please refer to the Glossary of Terms in the Annual Report & Accounts.

Strategic Report

Chairman's Statement

Dear fellow shareholders

It is with pleasure that I present the Annual Report of the Jupiter Green Investment Trust PLC for the year ended 31 March 2019.

While global equity markets advanced in the year under review, it certainly proved to be challenging time for equity investors. The major developed markets started the period in recovery mode after a fraught start to 2018. However, the outlook then became constrained by tightening US monetary policy, a strengthening dollar and President Trump's increasingly belligerent protectionist stance. In markets, there was sharp divergence between the strong performance of the US - particularly the FAANG (Facebook, Amazon, Apple, Netflix and Google) stocks - and emaciated performances elsewhere, particularly in emerging markets. The closing months of 2018 saw stock markets across the world tumble as investors fretted about the potential for economic slowdown, in China in particular, and the anticipated interest rate rises in the US. Yet when the New Year dawned investors greeted it with a bounce in their step, in no small part helped by an about-turn by the US central bank on interest rates and optimism that the US/China trade war was heading towards a ceasefire.

Persistent uncertainty about Brexit dogged UK equities. The FT's November 2018 headline proclaiming the "UK equity market descends into 'uninvestable' zone" spoke volumes about how unloved the equity market had become. At the time of writing, the UK and EU had agreed a conditional Brexit delay to 31 October 2019: the irony of the Halloween date lost on no one. The company is not immune to the ultimate outcome of the Brexit negotiations, especially as the aftershocks in the world economy could be widely spread if the UK were to leave the EU in a disorderly fashion. However, with a direct exposure to the UK at roughly 14%, the risks associated with a constructive exit, which seems the more likely outcome, would appear relatively limited. And of course, your investment adviser continues to monitor developments closely.

Investment performance

During the twelve months to 31 March the decrease on the diluted net asset value of your company's ordinary shares, with dividends added back, was 0.5% (being the net asset value that would apply to them were all the ordinary shareholders to have exercised their annual subscription rights at the same time). This compares with an increase in the company's benchmark index, the (FTSE ET100 Index Total Return Index) of 6.0% and decrease on the middle market price of the company's shares of 4.6% during the same twelve-month period.

Please note that we have changed the company's reference benchmark to the FTSE ET100 Index, rather than the MSCI World Small Cap TR Index, believing it to be a more relevant benchmark due to its environmental-solutions focus. The FTSE ET100 Index is part of the FTSE Environmental Technology Index Series and, importantly, now has a ten-year performance track record. As a general point, benchmark weightings have no bearing on our investment process. More fundamental for us are the merits of individual stocks and themes, as well as our assessment of prevailing market risks - factors to which benchmarks are typically insensitive. Nevertheless, we appreciate the usefulness of a reference index to put in context the decisions we make in relation to the market.

The performance of your company over the course of the year is discussed in detail by your fund manager, Charlie Thomas in the Investment Adviser's Review.

I recommend the Investment Adviser's Review in which Charlie highlights the progress made by holdings providing vital solutions to increasingly pressing environmental problems.

Dividend policy

The investment strategy of the company is under regular review by the board. After careful consideration, and in view of a growing contingent of the investment universe providing sustainable income for investors, last year the board proposed that the company should move from the policy of paying the minimum dividend necessary in order to maintain its beneficial investment trust status to paying a higher, total annual dividend and which it was anticipated would equate to approximately twice the level of the divided payable in relation to the previous financial year. The expectation would be that this can be increased progressively over future years.* This proposed change in dividend policy was not accompanied by a change in the investment policy of the company, but by the investment objective of the company having been amended to include the objective of income generation: a change approved by the shareholders at the last Annual General Meeting ('AGM').

For the year ended 31 March 2019, an interim dividend of 1.0p per ordinary share was paid on 29 March 2019 to shareholders on the register at 15 March 2019. A resolution to declare a final dividend of 1.20p per share (2018: 1.30p) will be proposed at the company's AGM on 18 September 2019. Subject to shareholder approval, the final dividend will be paid on 18 October 2019 to those shareholders on the register as at 27 September 2019. An interim dividend in respect of the new financial year will be declared in January for payment in March 2020.*

At the AGM of shareholders held on 4 September 2018 a resolution was approved to alter the Articles of Association of the company to allow dividends to be financed through a combination of available net income in each financial year and the company's capital reserves and other reserves so that the company may, at the discretion of the board, pay all or part of any future dividends out of this, or other, distributable reserves of the company. The ability of the company to distribute capital as dividends is intended to allow for the implementation of the new dividend policy. The board intends to utilise capital reserves where, without limitation, where it considers it appropriate to seek to smooth the company's dividend yield over the short to medium term. However, the company is intending to maintain a longer-term dividend that is supported by revenues arising from the investment performance of the company.

*This is a target only and not a profit forecast and there can be no assurance that it will be met.

Board composition

Since the AGM held on 4 September 2018, we have appointed Jaz Bains as a director and we welcome him to the board.

Share issuance and discount management

The company's total asset base is currently smaller than the minimum size preferred for prospective investment by many institutional and wealth management investors. The board and the investment adviser are committed to growing the company over time.

The board remains committed to its stated policy of using 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 and premium risk will provide materially improved liquidity for both buyers and sellers of the company's shares.

Shareholders were given the opportunity to subscribe for new ordinary shares on 1 April 2019 on the basis of one new ordinary share for every ten held. The subscription price was 191.31p. Subscriptions were received from shareholders resulting in the issue of 4,043 ordinary shares from treasury on this occasion.

During the 12 months to 31 March 2019, the company issued 130,998 new ordinary shares and repurchased a total of 2,073,824 shares. The discount to NAV per share was 5.67% at the end of the year compared to 2.51% on 31 March 2018. As at 31 May 2019 the price stood at a discount of 2.86%.

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

Gearing

Gearing is defined as the ratio of a company's long-term debt less cash held compared to its equity capital, expressed as a percentage. The effect of gearing is that, in rising markets, the company tends to benefit from any growth of the company's investment portfolio above the cost of payment of the prior ranking entitlements of any lenders and other creditors. Conversely, in falling markets the company suffers more if the company's investment portfolio underperforms the cost of those prior entitlements.

In order to improve the potential for capital returns to shareholders the company currently has access to a flexible loan facility with Scotiabank Europe PLC for amounts up to £3 million. As at 31 March 2019 the company's net gearing level (being the amount of drawn down bank debt less the cash held on the balance sheet) was nil.

The directors consider it a priority that the company's level of gearing should be maintained at appropriate levels with sufficient flexibility to enable the company to adapt at short notice to changes in market conditions. The board reviews the company's level of gearing on a regular basis. The current policy is set by the board at a limit of 20% of the company's total assets although the Articles of Association set a maximum of 25% of the company's total assets at the time of drawdown of the relevant borrowings.

Annual General Meeting

The company's AGM will be held on Wednesday 18 September 2019 at 11:30 a.m. at the offices of Jupiter Asset Management Limited, The Zig Zag Building, 70 Victoria Street, London SW1E 6SQ. Notice of the AGM, containing full details of the business to be conducted at the meeting, is set out in the Annual Report & Accounts.

In addition to the formal business, the Investment adviser will provide a short presentation to shareholders on the performance of the company over the past year as well as an outlook for the future. The board would welcome your attendance at the AGM as it provides shareholders with an opportunity to ask questions of the board and investment adviser.

This year we have introduced electronic proxy voting and shareholders can now also submit voting instructions using the web-based voting facility at www.signalshares.com. If you have not already registered with Signal Shares you will need your Investor Code which can be found on your share certificate or recent dividend confirmation. Once registered you will be able to vote immediately by selecting 'Proxy Voting' from the menu. Please note that for future general meetings, we will be removing paper from the voting process to further reduce any environmental impact. You will however, be able request a paper proxy if you wish by contacting Link Asset Services at the appropriate time.

PRIIPS Key Information Documents

We are required by new EU regulations introduced at the beginning of 2018 to provide investors with a Key Information Document ("KID") which includes performance projections which are the product of prescribed calculations based on the company's past performance. Whilst the content and format of the KID cannot be amended under the applicable EU regulations, the board does not believe that these projections are an appropriate or helpful way to assess the company's future prospects.

Accordingly, the board urges shareholders also to consider the more complete information set out in both the company's half year and annual report and accounts, together with the monthly fact sheets and daily net asset value announcements, when considering an investment in the company's shares. These documents, together with a link to Edison's third-party research coverage of the company are published at www.jupiteram.com/JGC.

Outlook

Over the last 12 months, we have seen a powerful confluence of health, environmental and public cost concerns. Concerns over waste and plastics, in particular, have taken centre stage. Many Asian countries have followed China's lead in closing their doors to waste coming from overseas, ostensibly to be recycled. The UK's new waste strategy is set to tackle how materials are designed, produced and used, as well as recycled. Similar initiatives are underway across developed and emerging countries, creating opportunities from sustainable packaging through to recycling technologies. For investors, this means a growth in opportunities to allocate capital to businesses at the forefront of the "circular economy", a theme that has been pursued for many years within the company.

Air pollution has also hit the headlines: a Lancet Countdown report1 indicated that pollution levels of 71% of the 2,971 cities studied exceeded World Health Organisation guidelines. For investors, the drive to tackle air pollution is creating a breadth of opportunities including: the suppliers of parts and technology to the makers of electric vehicles (EVs) and businesses that employ new technologies to reduce emission levels or enable greater fuel efficiencies.

Against this backdrop, it is no surprise that interest in sustainable forms of investing - environmental, social and governance (ESG) investing - has been expanding rapidly as younger generations demand more responsible corporate behaviour. Some of the world's biggest institutional investors continue to lead the way by allocating more of their funds in companies that score well on ESG criteria. Sapling vehicles for ESG investment also continue to grow, including climate bonds (or green bonds), whose proceeds are earmarked for use on assets or projects that help in the fight against climate change.

In keeping with this, the company continues to invest in businesses tackling some of the world's most urgent challenges including the quest for more sustainable consumption, energy-efficient transport, better pollutions control and testing, and more efficient water infrastructure. Many investee companies are at the forefront of evolving trends, such as in waste recycling and the development of circular economies.

At a time of heightened market volatility, Charlie Thomas and his team remain focused on the many opportunities for sustainable investing across a range of themes and continue to be alert to the possibility of buying long-term growth at more attractive valuations.

Michael Naylor

Chairman

3 July 2019

¹ Global exposure to dangerous levels of air pollution has increased by 11.2% since 1990, with 71% of 2,971 cities exceeding recommended levels of PM2.5 (small pollution particles): Source: European Environment Agency (https://goo.gl/7gqNuD), 13/11/17.

Investment Adviser's Review

Market review

Global stocks advanced over the 12 months, but the decade-long bull market was severely tested in the final quarter of 2018 before a policy U-turn from the US Federal Reserve in January drove markets higher towards the end of the period. With global growth weakening and inflationary pressures easing, the move from the Fed was welcomed by the market. US stocks were by far the strongest performers over the review period, with both economic growth and company profits fuelled by tax cuts. Elsewhere, however, stock market gains were muted and growth remained subdued at best as heightened trade tensions between the US and its main trading partners, China, Europe, Canada and Mexico added to rising concerns over the outlook for the world economy. Emerging markets, in particular, came under growing pressure as higher US interest rates and a strong dollar raised their external borrowing costs.

Policy review

Against this backdrop, the company underperformed the FTSE ET100 index, as well as the broader stock market. The key impediment to relative performance was the company's positioning in the US, with both the portfolio's underweight holding and stock selection detracting from relative returns. The portfolio has a natural underweight exposure in the US since the investment universe of environmental and sustainable solutions companies is relatively less prevalent there than other regions.

Within its US holdings, the company suffered some stock-specific disappointments, in particular United Natural Foods (UNFI) which lost value following news that it had bid for mainstream grocery distributor Supervalu. The company's holding was sold given the strategic change and the pressure it placed on the company balance sheet. Elsewhere, key detractors included waste management company Renewi which disappointed after a weaker-than-expected performance update. Additionally, problems at a hazardous-waste treatment plant forced the business to lower both its profit guidance and proposed dividend. We engaged with management several times and believe the company is well placed to overcome its current issues. Horiba, a Japanese manufacturer of precision instruments for measurement and analysis, and Prysmian, an Italian manufacturer of electric power transmission and telecommunications cables and systems, also detracted from relative performance. A lack of exposure to index-heavyweight Tesla also impacted relative returns as the stock advanced over the 12-month period overall. It is worth noting, however, that the stock was volatile during the year, with strong performance periods often countered by weakness on concerns about the company's business model, such as that seen towards the end of the period.

In contrast, making good returns for the company was recycling technology leader Tomra. The Norwegian company is one of a limited number of businesses actively providing solutions for the circular economy and the reduction of plastic waste. A new position in IPG Photonics, established during the market weakness in the final quarter of 2018, was beneficial. The company sells fibre lasers that are used in manufacturing and industrial processes and whose application significantly reduces energy consumption and waste material. Its core technologies are allowing for an increasing diversity of applications and underpin its strong prospects for long-term structural growth. IPG is one of several recent additions to the portfolio which added value during the period (SalMar, mentioned below, is another). Not holding Austrian sensor maker ams AG also had a positive impact on the company's relative performance as shares fell sharply amid concerns over lower demand from a key customer.

In terms of transactions, we took profits and disposed of the company's holding in Norwegian salmon business SalMar. SalMar benefitted from better pricing environment in 2018 which saw the investment increase some 83% within the year (Source: Jupiter). Although we think the long-term credentials in this sector are robust, we have exited our position reflecting our concerns that valuations in the sector, and in particular Salmar, have become too stretched in the medium term. We also took steps to consolidate certain industry exposures, for example, selling out of NSK in favour of the company's holding in SKF, and disposing of Suez while retaining Veolia.

Against the wider global stock market, the company's relative performance was impeded by having no exposure to large US technology companies which fall outside the company's environmental and sustainable solutions remit.

Investment Outlook

While we welcome the positive start to the year, we remain relatively cautious about the near-term outlook for the economy and markets. Global growth rates in many major economies have deteriorated sharply, giving the Federal Reserve just cause to reconsider its stance, especially as the withdrawal of US-dollar liquidity associated with "quantitative tightening" has been partly to blame for a dampening of global economic activity. Although Brexit has been deferred for now, it continues to overshadow investment in the UK, and the trade negotiations between the US and China are far from settled.

That said, we have been encouraged by a positive start to the reporting season and believe the market has started to respond to news in a more measured way than was seen last year. We also remain alive to the potential opportunities that further volatility might provide and continue to see some compelling valuations across our sustainable investment themes. Environmental and sustainable solutions themes, and the companies within them, are as vulnerable as any to vicissitudes in equity markets and as long-term investors we remain focused on the fundamentals of companies across our universe of sustainable investment themes. By way of example, the challenges of unsustainable packaging are becoming more urgent given that an increasing number of Asian countries are implementing timeframes to ban imports of waste from G7 countries. As a result, we continue to see multi-phase opportunities in the circular economy theme with an expectation for blueprints across Europe and parts of the US similar to the recently published UK resource and waste strategy.

Charlie Thomas

Fund Manager

Jupiter Asset Management Limited

Investment Adviser

3 July 2019

Investment Portfolio as at 31 March 2019

		31 March 2019		31 March 2018
	Country	Market value	Percentage	Market value	Percentage
Company	of Listing	£'000	of Portfolio	£'000	of Portfolio
Xylem	United States of America	1,550	4.4	1,400	3.7
AO Smith	United States of America	1,495	4.2	1,658	4.4
Tomra Systems	Norway	1,158	3.3	1,494	4.0
Veolia Environnement	France	1,030	2.9	671	1.8
Vestas Wind Systems	Denmark	1,000	2.8	784	2.1
Azbil	Japan	938	2.6	869	2.3
NextEra Energy Partners	United States of America	912	2.6	-	-
Siemens	Germany	901	2.5	-	-
Johnson Matthey	United Kingdom	896	2.5	867	2.3
National Express Group	United Kingdom	886	2.5	845	2.3
Cranswick	United Kingdom	864	2.5	1,075	2.9
Sensata Technologies Holding	United Kingdom	823	2.3	879	2.4
Eaton	Ireland	773	2.2	-	-
Horiba	Japan	751	2.1	971	2.6
Hannon Armstrong Sustainable Infrastructure Capital, REIT	United States of America	747	2.1	-	-
Casella Waste Systems 'A'	United States of America	738	2.1	451	1.2
Orsted	Denmark	733	2.1	579	1.5
Regal Beloit	United States of America	684	1.9	569	1.5
Schneider Electric	France	684	1.9	710	1.9
Toray Industries	Japan	671	1.9	918	2.5
Covanta Holding	United States of America	671	1.9	522	1.4
First Solar	United States of America	648	1.8	576	1.5
Daiseki	Japan	634	1.8	668	1.8
Clean Harbors	United States of America	630	1.8	532	1.4
Shimano	Japan	623	1.8	511	1.4
RPS Group	United Kingdom	613	1.7	836	2.2
BorgWarner	United States of America	603	1.7	732	2.0
Itron	United States of America	581	1.6	827	2.2
Watts Water Technologies 'A'	United States of America	570	1.6	508	1.4
Knorr-Bremse	Germany	565	1.6	-	-
Valmont Industries	United States of America	549	1.6	970	2.6
East Japan Railway	Japan	511	1.4	457	1.2
Novozymes 'B'	Denmark	504	1.4	523	1.4
Stantec	Canada	495	1.4	475	1.2
United Utilities Group	United Kingdom	489	1.4	-	-
Mayr Melnhof Karton	Austria	475	1.3	532	1.4
SKF 'B'	Sweden	464	1.3	528	1.4
Prysmian	Italy	461	1.3	470	1.3
ANDRITZ	Austria	461	1.3	555	1.5
Greencoat Renewables	Ireland	454	1.3	-	-
Innergex Renewable Energy	Canada	436	1.2	-	-
Wartsila	Finland	433	1.2	-	-
Koninklijke DSM	Netherlands	418	1.2	-	-
Infineon Technologies	Germany	406	1.2	509	1.4
Miura	Japan	390	1.1	696	1.9
NSK	Japan	376	1.1	493	1.3
Huaneng Renewables 'H'	China	364	1.0	455	1.2
Brambles	Australia	353	1.0	300	0.8
Jupiter Global Ecology Diversified Fund Class I GBP Q Inc Dist HSC*	Luxembourg	348	1.0	344	0.9
China Everbright International	Hong Kong	337	0.9	200	0.5
Firstgroup	United Kingdom	313	0.9	513	1.4
Atlas Copco 'A'	Sweden	309	0.9	-	-
Salmones Camanchaca	Chile	308	0.9	176	0.5
IPG Photonics	United States of America	291	0.8	-	-
Ricardo	United Kingdom	279	0.8	402	1.1
Fjord1	Norway	263	0.7	308	0.8
Simec Atlantis Energy	Singapore	234	0.7	163	0.4
Renewi	United Kingdom	187	0.5	600	1.6
RA International Group	United Kingdom	186	0.5	-	-
TOTAL		35,466	100.0

* Shares in a sub-fund of the Jupiter Global Fund SICAV

The holdings listed above are all equity shares unless otherwise stated

Cross holdings in other UK Listed investment companies

As at 31 March 2019, none of the company's total assets were invested in the securities of other UK listed investment companies. It is the company's stated policy that not more than 10%, in aggregate, of the value of the total assets of the company (before deducting borrowed money) may be invested in other investment companies (including investment trusts) listed on the Main Market of the London Stock Exchange. Whilst the requirements of the UK Listing Authority permit the company to invest up to this 10% limit, it is the directors' current intention that the company invests not more than 5%, in aggregate, of the value of the total assets of the company (before deducting borrowed money) in such other investment companies.

Sector and Geographical Analysis of Investments as at 31 March 2019

Equities	United
	States of	United					Totals	Totals
	America	Kingdom	Japan	Denmark	Germany	Other	2019	2018
	%	%	%	%	%	%	%	%
Basic Materials	-	2.5	1.9	-	-	1.2	5.6	5.6
Chemicals	-	2.5	1.9	-	-	1.2	5.6	5.6
Consumer Goods	1.7	2.5	2.9	-	1.6	0.9	9.6	12.5
Food Producers	-	2.5	-	-	-	0.9	3.4	4.4
Household Goods &
Home Construction	-	-	-	-	-	-	-	0.6
Automobiles & Parts	1.7	-	1.1	-	1.6	-	4.4	6.1
Leisure Goods	-	-	1.8	-	-	-	2.0	1.4
Consumer Services	-	3.4	1.4	-	-	0.7	5.5	7.4
Travel & Leisure	-	3.4	1.4	-	-	0.7	5.5	5.7
Food & Drug Retailers	-	-	-	-	-	-	-	1.7
Financials	2.1	-	-	-	-	2.3	4.4	0.9
Global Equity Funds	-	-	-	-	-	1.0	1.0	0.9
Real Estate Investment
Trusts	2.1	-	-	-	-	-	2.1	-
Equity Investment
Instruments	-	-	-	-	-	1.3	1.3	-
Health Care	-	-	-	1.4	-	-	1.4	1.4
Pharmaceuticals &
Biotechnology	-	-	-	1.4	-	-	1.4	1.4
Industrials	21.9	5.8	7.6	-	-	18.0	55.8	60.8
Industrial Engineering	4.4	-	1.1	-	-	8.0	13.5	16.2
Support Services	5.8	3.0	1.8	-	-	2.3	12.9	13.6
Construction & Materials	7.4	-	-	-	-	-	7.4	13.3
Electronic & Electrical
Equipment	4.3	2.3	4.7	-	-	3.2	14.5	15.2
General Industrials	-	0.5	-	-	2.5	4.5	7.5	2.5
Technology	-	-	-	-	-	-	1.2	1.4
Technology Hardware &
Equipment	-	-	-	-	-	-	1.2	1.4
Oil & Gas	1.8	-	-	2.8	-	-	4.6	5.2
Alternative Energy	1.8	-	-	2.8	-	-	4.6	5.2
Utilities	2.6	1.4	-	2.1	-	5.8	11.9	4.8
Gas, Water & Multiutilities	-	1.4	-	2.1	-	2.9	6.4	4.8
Electricity	2.6	-	-	-	-	2.9	5.5	-
Totals 2019	30.1	15.6	13.8	6.3	5.3	28.9	100.0	100.0
Totals 2018	36.2	17.6	14.9	5.0	3.0	23.3	100.0	100.0

Strategic Review

The Strategic Report has been prepared in accordance with the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013.

The Strategic Report seeks to provide shareholders with the relevant information to enable them to assess the performance of the Directors of the Company during the period under review.

Business and Status

During the year the company carried on business as an investment trust with its principal activity being portfolio investment. The company has been approved by HM Revenue & Customs ('HMRC') as an investment trust subject to the company continuing to meet the eligibility conditions of sections 1158 and 1159 of the Corporation Taxes Act 2010 and the ongoing requirements for approved companies as detailed in Chapter 3 of Part 2 of the Investment Trust (Approved company) (Tax) Regulations 2011. In the opinion of the directors, the company has conducted its affairs in the appropriate manner to retain its status as an investment trust.

The company is a public limited company and is an investment company within the meaning of section 833 of the Companies Act 2006.

The company is not a close company within the meaning of the provisions of the Corporation Tax Act 2010 and has no employees.

The company was incorporated in England & Wales on 12 April 2006 and started trading on 8 June 2006, immediately following the company's launch.

Reviews of the company's activities are included in the Chairman's Statement and Investment Adviser's Review.

There has been no significant change in the activities of the Company during the year to 31 March 2019 and the Directors anticipate that the Company will continue to operate in the same manner during the current financial year.

Investment Objective

The investment objective of the company is to achieve capital growth and income, both over the effect long term, through investment in a diverse portfolio of companies providing environmental solutions.

Investment Strategy

The investment adviser has adopted a bottom-up approach. The investment adviser, supported by the sustainable investment and governance team, researches companies, ensuring that each potential investment falls within the company's stated investment policy. Consideration is also given to a potential investment's risk/return profile and growth prospects before an investment is made. Once companies operating within the appropriate theme have been identified and due diligence has been carried out, the investment adviser will decide whether a particular investment would be appropriate.

Investment Policy

The company's portfolio has a bias towards small and medium capitalisation companies. It invests primarily in securities which are quoted, listed or traded on a recognised exchange.

The following investment restrictions are observed:

•     no more than 5% of the company's total assets (at the time of such investment) may be invested in unlisted securities;

•     no more than 15% of the total assets of the company (before deducting borrowed money) is lent to or invested in any one company or group (including loans to or shares in the company's own subsidiaries) at the time the investment or loan is made. For this purpose any existing holding in the company or group concerned is aggregated with the proposed investment;

•     distributable income is principally derived from investments. The company does not conduct a trading activity which is significant in the context of the group as a whole;

•     not more than 10%, in aggregate, of the value of the total assets of the company (before deducting borrowed money) is invested in other UK listed investment companies (including investment trusts) listed on the Official List. Whilst the requirements of the UK Listing Authority permit the company to invest up to this 10%. limit, it is the directors' current intention that the company invests not more than 5%, in aggregate, of the value of the total assets of the company (before deducting borrowed money) in such other investment companies; and

•     the company at all times invests and manages its assets in a way which is consistent with its object of spreading investment risk.

In accordance with the requirements of the UK Listing Authority, any material changes in the principal investment policies and restrictions of the company would only be made with the approval of shareholders by ordinary resolution.

Future Developments

It is the board's ambition to grow the asset base of the company through a combination of organic growth and new issuance of shares with a view to achieving the critical mass necessary to attract broader demand from wealth managers, IFAs and other institutional buyers of investment trust shares. The investment adviser continues to be encouraged to use the particular advantages of an investment trust structure to enhance potential returns to shareholders, including the use of gearing and the freedom to hold high conviction positions through periods of sharp market fluctuations.

Benchmark Index

The company's benchmark is the FTSE Environmental Technology 100 ('FTSE ET100') Total Return Index, expressed in sterling.

Management

The company has no employees and most of its day to day responsibilities are delegated to Jupiter Asset Management Limited ('JAM'), who act as the company's investment adviser and company secretary.

J.P. Morgan Europe Limited ('JPMEL') acts as the company's depository and the company has entered into an outsourcing arrangement with J.P Morgan Chase Bank N.A. ('JPMCB') for the provision of accounting and administration services.

Although JAM is named as the company secretary, JPMEL provides administrative support to the company secretary as part of its formal mandate to provide broader fund administration services to the company.

Viability Statement

In accordance with provision C.2.2 of the UK Corporate Governance Code as issued by the Financial Reporting Council ('FRC') in April 2016, the board has assessed the prospects of the company over the next three years. The company's investment objective is to achieve capital growth and income, both over the long term and the board regards the company as a long-term investment.

The board has considered the company's business model including its investment objective and investment policy as well as the principal risks and uncertainties that may affect the company as detailed below.

The board has noted that:

·      The company holds a highly liquid portfolio invested predominantly in listed equities; and

·      No significant increase to ongoing charges or operational expenses is anticipated.

The board has therefore concluded that there is a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next three years.

The investment manager and the company's brokers engage with shareholders on an ongoing basis and the board considers it to be likely, at this juncture, that the company's continuation vote by shareholders at the 2020 AGM will be passed.

Gearing

Gearing is defined as the ratio of a company's long-term debt less cash held compared to its equity capital, expressed as a percentage. The effect of gearing is that in rising markets a geared share class tends to benefit from any outperformance of the relevant company's investment portfolio above the cost of payment of the prior ranking entitlements of any lenders and other creditors. Conversely, in falling markets the value of the geared shares class suffers more if the company's investment portfolio underperforms the cost of those prior entitlements.

The company may utilise gearing at the director's discretion for the purpose of financing the company's portfolio and enhancing shareholder returns. In particular, the company may be geared by bank borrowings which will rank in priority to the ordinary shares for repayment on a winding up or other return of capital.

The Articles of Association (the 'Articles') provide that, without the sanction of the company in a general meeting, the company may not incur borrowings above a limit of 25% of the company's total assets at the time of drawdown of the relevant borrowings.

Loan facility

The company has a revolving £3 million bank loan facility with Scotiabank Europe PLC. The company did not draw down this loan during the year under review. The finance costs shown in the Statement of Comprehensive Income are in respect of the costs incurred for non-utilisation of the facility during the year.

Use of Derivatives

The company may invest in derivative financial instruments comprising options, futures and contracts for difference for investment, hedging and efficient portfolio management, as more fully described in the investment policy. There is a risk that the use of such instruments will not achieve the goals desired. Also, the use of swaps, contracts for difference and other derivative contracts entered into by private agreements may create a counterparty risk for the company. This risk is mitigated by the fact that the counterparties must be institutions subject to prudential supervision and that the counterparty risk on a single entity must be limited in accordance with the individual restrictions. There were no open derivatives at year end.

Currency Hedging

The company's accounts are maintained in sterling while investments and revenues are likely to be denominated and quoted in currencies other than sterling. Although it is not the company's present intention to do so, the company may, where appropriate and economic to do so, employ a policy of hedging against fluctuations in the rate of exchange between sterling and other currencies in which its investments are denominated.

Key Performance Indicators

At their quarterly board meetings the Directors consider a number of performance indicators to help assess the Company's success in achieving its objectives. The key performance indicators used to measure the performance of the Company over time are as follows:

·      Net asset value changes over time;

·      Ordinary share price movement;

·      A comparison of ordinary share price and net asset value to benchmark;

·      Discount and premium to net asset value.

In addition, a history of the net asset values, the price of the ordinary shares and the benchmark index are shown on the monthly factsheets which can be viewed on the investment adviser's website www.jupiteram.com/JGC and which are available on request from the company secretary.

Discount to Net Asset Value

The directors review the level of the discount or premium between the middle market price of the company's ordinary shares and their net asset value on a regular basis.

The directors have powers granted to them at the last Annual General Meeting to purchase ordinary shares and either cancel or hold them in Treasury as a method of controlling the discount to net asset value and enhancing shareholder value.

The company repurchased 2,073,824 ordinary shares for holding in treasury during the year under review at an average discount of 6.71%.

Under Listing Rules, the maximum price that may currently be paid by the company on the repurchase of any ordinary shares is 105% of the average of the middle market quotations for the ordinary shares for the five business days immediately preceding the date of repurchase. The minimum price will be the nominal value of the ordinary shares. The board is proposing that its authority to repurchase up to approximately 14.99% of its issued share capital should be renewed at the Annual General Meeting. The new authority to repurchase will last until the conclusion of the Annual General Meeting of the company in 2020 (unless renewed earlier). Any repurchase made will be at the discretion of the board in light of prevailing market conditions and within guidelines set from time to time by the board, the Companies Act, the Listing Rules and Model Code.

Treasury Shares

In accordance with the Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 (the 'Regulations') which came into force on 1 December 2003 any ordinary shares repurchased, pursuant to the above authority, may be held in treasury. These ordinary shares may subsequently be cancelled or sold for cash. This would give the company the ability to reissue shares quickly and cost effectively and provide the company with additional flexibility in the management of its capital.

Principal Risks and Uncertainties

The principal risk factors relating to the company can be divided into the following areas:

Investment Policy and Process - Inappropriate investment policies and processes may result in under performance against the prescribed benchmark index and the company's peer group.

The board manages these risks by ensuring a diversification of investments and regularly reviewing the portfolio asset allocation and investment process. In addition, certain investment restrictions have been set and these are monitored as appropriate.

Investment Strategy and Share Price Movements - The company is exposed to the effect of variations in the price of its investments. A fall in the value of its portfolio will have an adverse effect on shareholders' funds. It is not the aim of the board to eliminate entirely the risk of capital loss, rather it is its aim to seek capital growth. The board reviews the company's investment strategy and the risk of adverse share price movements at its quarterly board meetings taking into account the economic climate, market conditions and other factors that may have an effect on the sectors in which the company invests. There can be no assurances that appreciation in the value of the company's investments will occur but the board seeks to reduce this risk.

Discount to Net Asset Value - A discount in the price at which the company's shares trade to net asset value would mean that shareholders would be unable to realise the true underlying value of their investment. As a means of controlling the discount to net asset value the board has established a buy back programme which is under constant review as market conditions change.

Liquidity Risk - The company may invest in securities that have a very limited market which will affect the ability of the Investment Adviser to dispose of securities when it is no longer felt that they offer the potential for future returns. Likewise the companyʼs shares may experience liquidity problems when shareholders are unable to realise their investment in the company because there is a lack of demand for the companyʼs shares. At its quarterly meetings the board considers the current liquidity in the companyʼs investments when setting restrictions on the companyʼs exposure. The board also reviews, on a quarterly basis, the companyʼs buy back programme and in doing so is mindful of the liquidity in the companyʼs shares.

Gearing Risk - The company's gearing can impact the company's performance by accelerating the decline in value of the company's Net Assets at a time when the company's portfolio is declining. Conversely gearing can have the effect of accelerating the increase in the value of the company's Net Assets at a time when the company's portfolio is rising. At its quarterly meetings the board is mindful of the outlook for equity markets when reviewing the company's gearing.

Regulatory Risk - The company operates in a complex regulatory environment and faces a number of regulatory risks. A breach of section 1158 of the Corporation Tax Act 2010 could result in the company being subject to capital gains tax on portfolio movements. Breaches of other regulations such as the UKLA Listing rules, could lead to a number of detrimental outcomes and reputational damage. Breaches of controls by service providers such as the investment adviser could also lead to reputational damage or loss. The board monitors regulatory risks at its quarterly board meetings and relies on the services of its company secretary, JAM, and its professional advisers to ensure compliance with, amongst other regulations, the Companies Act 2006, the UKLA Listing Rules, the FCAʼs Disclosure and Transparency Rules and the Alternative Investment Fund Managers' Directive. The investment adviser is contractually obliged to ensure that its conduct of business conforms to applicable laws and regulations.

Loss of Key Personnel - The day-to-day management of the company has been delegated to the investment adviser. Loss of the Investment Adviser's key staff members could affect investment return. The board is aware that JAM recognises the importance of its employees to the success of its business. Its remuneration policy is designed to be market competitive in order to motivate and retain staff and succession planning is regularly reviewed. The board also believes that suitable alternative experienced personnel could be employed to manage the company's portfolio in the event of an emergency.

Operational - Failure of the core accounting systems, or a disastrous disruption to the investment adviser's business or that of the administration provider JPMCB, could lead to an inability to provide accurate reporting and monitoring.

Financial - Inadequate financial controls could result in misappropriation of assets, loss of income and debtor receipts and inaccurate reporting of net asset value per share. The board annually reviews the investment adviser's report on its internal controls and procedures.

Details of how the board monitors the operational services and financial controls of JAM and JPMCB are included within the Internal Control section of the Report of the Directors.

Capital Gains Tax Information

The closing price of the ordinary shares on the first date of dealing for capital gain tax purposes was 99p.

Directors

Details of the directors of the company and their biographies are set out in the Annual Report & Accounts.

The company's policy on board diversity is included in the Corporate Governance section of the Report of the Directors.

As at 31 March 2019, the board comprises of one female and three male directors.

Employees, Environmental, Social and Human Rights issues

The company has no employees as the board has delegated the day- to-day management and administration functions to JUTM, JAM and other third parties. There are therefore no disclosures to be made in respect of employees.

The board has noted the investment adviser's policy on environmental, social and human rights issues as detailed below:

The investment adviser considers various factors when evaluating potential investments. While an investee company's policy towards environmental and social responsibility, including with regard to human rights, is considered as part of the overall assessment of risk and suitability for the portfolio, the investment adviser does not necessarily decide to, or not to, make an investment on environmental and social grounds alone.

Global Greenhouse Gas Emissions

The company has no greenhouse gas emissions to report from its operations as the day to day management and administration functions have been outsourced to third parties and it neither owns physical assets, property nor has employees of its own. It therefore does not have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report on Directors' Reports) Regulations 2013.

Dividend Policy, Planned Life of the Company, Discount Control and Subscription Rights

Dividend Policy

The board has not set an objective of a specific portfolio yield for the company in relation to the year under review and the level of such yield has historically varied with the sectors and geographical regions to which the company's portfolio is exposed at any given time. However, with effect from the Annual General Meeting on 4 September 2018 shareholders approved a change of dividend policy whereby the company moved from a policy of paying the minimum dividend necessary in order to maintain its beneficial investment trust status to paying a higher, semi-annual dividend.

The shareholders also approved the proposal to alter the Articles of Association of the company to allow dividends to be financed through a combination of available net income in each financial year and the company's capital reserves and other reserves so that the company may, at the discretion of the board, pay all or part of any future dividends out of this, or other, distributable reserves of the company.

Planned Life of the Company

The company does not have a fixed life, however, the board considers it desirable that shareholders should have the opportunity to review the future of the company after an initial period of eight years from the date of Admission and at every third subsequent AGM thereafter. Accordingly, an ordinary resolution for the continuation of the company in its current form was passed by shareholders at the Annual General Meeting ('AGM') of the company held on 5 September 2017. The next scheduled continuation vote will be held at the 2020 AGM. If such resolution is not passed, the directors will formulate proposals to be put to shareholders to reorganise or reconstruct the company or for the company to be wound-up and the assets realised at fair value.

Discount Control

The directors believe that the ordinary shares should not trade at a significant discount to their prevailing net asset value.

The board uses share buy-backs to assist in diluting discount volatility and to seek to narrow the discount to net asset value at which the company's shares trade overtime where in normal market conditions, the company's share price does not materially vary from its net asset value per share.

Subscription Rights

Shareholders have an annual opportunity to subscribe for ordinary shares on the basis of one new ordinary share for every ten ordinary shares held at 31 March of each year. The subscription price will be equal to the audited undiluted net asset value per share being 188.70p as at 31 March 2019. The next subscription date will be 31 March 2020. A reminder will be sent to shareholders prior to the subscription date.

For and on behalf of the Board

Michael Naylor

Chairman

3 July 2019

Statement of Directors' Responsibilities

The directors are responsible for preparing the Annual Report and financial statements in accordance with applicable United Kingdom law and those International Financial Reporting Standards ("IFRS") as adopted by the European Union.

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the return or loss of the company for that period.

In preparing those financial statements, the directors are required to:

(a)	select suitable accounting policies in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently;
(b)	present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
(c)	provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance;
(d)	state that the Company has complied with IFRS, subject to any material departures disclosed and explained in the financial statements; and
(e)	make judgements and estimates that are reasonable and prudent.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website www.jupiteram.com/JGC. The work carried out by the auditors does not include consideration of the maintenance and integrity of the website and accordingly the auditors accepts no responsibility for any changes that have occurred to the financial statements when they are presented on the website.

The financial statements are published on www.jupiteram.com/JGC, which is a website maintained by Jupiter Asset Management Limited.

Visitors to the website need to be aware that legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Statement of Corporate Governance that comply with that law and those regulations.

Each of the directors confirm to the best of their knowledge that:

(a)	the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company;
(b)	the report includes a fair view of the development and performance of the business and the position of the company together with a description of the principal risks and uncertainties that the company faces; and
(c)	that in the opinion of the board, the Annual Report and Accounts taken as a whole, is fair, balanced and understandable and it provides the information necessary to assess the company's performance, business model and strategy.

So far as each director is aware at the time the report is approved:

(a)	there is no relevant audit information of which the company's auditors are unaware; and
(b)	the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

By order of the board

Michael Naylor

Chairman

3 July 2019

Statement of Comprehensive Income for the year ended 31 March 2019

	Year ended 31 March 2019			Year ended 31 March 2018
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
(Loss)/gain on investments at
fair value through profit or loss	-	(773)	(773)	-	2,168	2,168
Foreign exchange gain/(loss)	-	190	190	-	(177)	(177)
Income	828	-	828	608	-	608
Total income	828	(583)	245	608	1,991	2,599
Investment management fee	(69)	(205)	(274)	(31)	(273)	(304)
Investment performance fee*	-	-	-	-	(59)	(59)
Other expenses	(311)	(6)	(317)	(291)	-	(291)
Total expenses	(380)	(211)	(591)	(322)	(332)	(654)
Net return before finance
costs and tax	448	(794)	(346)	286	1,659	1,945
Finance costs	(2)	(7)	(9)	(1)	(8)	(9)
Return on ordinary
activities before taxation	446	(801)	(355)	285	1,651	1,936
Taxation	(59)	-	(59)	(47)	-	(47)
Net return/(loss) after taxation	387	(801)	(414)	238	1,651	1,889
Return/(loss) per ordinary
share	1.89p	(3.91)p	(2.02)p	1.13p	7.81p	8.94p
Diluted return /(loss) per
ordinary share	1.89p	(3.91)p	(2.02)p	1.13p	7.81p	8.94p

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.

*The company and the fund manager agreed to remove the performance fee arrangements with effect from 1 April 2018.

Statement of Financial Position as at 31 March 2019

	2019	2018
	£'000	£'000
Non current assets
Investments held at fair value through profit or loss	35,466	37,397
Current assets
Prepayments and accrued income	174	123
Cash and cash equivalents	449	2,785
	623	2,908
Total assets	36,089	40,305
Current liabilities
Other payables	(155)	(158)
Total assets less current liabilities	35,934	40,147
Capital and reserves
Called up share capital	34	34
Share premium	29,705	29,630
Redemption reserve*	239	239
Special reserve	24,292	24,292
Retained earnings*	(18,336)	(14,048)
Total equity shareholders' funds	35,934	40,147
Net Asset Value per ordinary share	188.70p	191.31p
Diluted Net Asset Value per ordinary share	188.70p	190.68p

* 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 on 3 July 2019 and signed on its behalf by:

Michael Naylor

Chairman

Company Registration Number 05780006

Statement of Changes in Equity for the year ended 31 March 2019

	Share	Share	Special	Redemption	Retained
For the year ended	Capital	Premium	Reserve	Reserve	Earnings	Total
31 March 2019	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2018	34	29,630	24,292	239	(14,048)	40,147
Net loss for the year	-	-	-	-	(414)	(414)
Dividends paid	-	-	-	-	(466)	(466)
Ordinary shares
reissued from treasury	-	75	-	-	167	242
Ordinary shares repurchased	-	-	-	-	(3,575)	(3,575)
Balance at 31 March 2019	34	29,705	24,292	239	(18,336)	35,934

Dividends paid during the period were paid out of revenue reserves.

	Share	Share	Special	Redemption	Retained
For the year ended	Capital	Premium	Reserve	Reserve	Earnings	Total
31 March 2018	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2017	34	29,488	24,292	239	(15,544)	38,509
Net gain for the year	-	-	-	-	1,889	1,889
Dividends paid	-	-	-	-	(253)	(253)
Ordinary shares
reissued from treasury	-	142	-	-	694	836
Ordinary shares repurchased	-	-	-	-	(834)	(834)
Balance at 31 March 2018	34	29,630	24,292	239	(14,048)	40,147

Dividends paid during the period were paid out of revenue reserves.

Cash Flow Statement for the year ended 31 March 2019

	2019	2018
	£'000	£'000
Cash flows from operating activities
Investment income received (gross)	781	611
Deposit interest received	4	-
Investment management fee paid	(279)	(303)
Performance fee*	(59)	-
Other cash expenses	(334)	(272)
Net cash inflow from operating activities before taxation	113	36
Interest paid	(9)	(9)
Taxation	(59)	(47)
Net cash inflow/(outflow) from operating activities	45	(20)
Net cash flows from investing activities
Purchases of investments	(8,690)	(3,381)
Sale of investments	9,848	6,504
Net cash inflow from investing activities	1,158	3,123
Cash flows from financing activities
Shares repurchased	(3,505)	(834)
Shares reissued from treasury	242	836
Equity dividends paid	(466)	(253)
Net cash outflow from financing activities	(3,729)	(251)
(Decrease)/increase in cash	(2,526)	2,852
Change in cash and cash equivalents
Cash and cash equivalents at start of year	2,785	110
Realised gain/(loss) on foreign currency	190	(177)
Cash and cash equivalents at end of year	449	2,785

*Performance fee paid this period in relation to previous financial year.

Notes to the accounts

1.   Accounting policies

The Accounts comprise the financial results of the company for the year to 31 March 2019. The Accounts are presented in pounds sterling, as this is the functional currency of the company. The Accounts were authorised for issue in accordance with a resolution of the directors on 3 July 2019. All values are rounded to the nearest thousand pounds (£'000) except where indicated.

The Accounts have been prepared in accordance with International Financial Reporting Standards (IFRS), which comprise standards and interpretations approved by the International Accounting Standards Board (IASB) and International Accounting Standards Committee (IASC), as adopted by the European Union (EU).

Where presentational guidance set out in the Statement of Recommended Practice (SORP) for Investment Trusts issued by the Association of Investment Companies (AIC) in November 2014 is consistent with the requirements of IFRS, 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 guidance issued by the 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. In accordance with the Company's Articles of Association, net capital returns may not be distributed by way of dividend.

Investment management fees and finance costs are charged 75% to capital and 25% to revenue (2018: 90% to capital and 10% to revenue). All other operational costs including administration expenses are charged to revenue.

(c) 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.

(d) Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risks of changes in value.

(e)  Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing on the dates of the transactions. At the date of each Statement of Financial Position, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in net profit or loss for the year, except for exchange differences arising on non-monetary assets and liabilities where the changes in fair value are recognised directly in equity.

(f)   Taxation

 The tax expense represents the sum of the tax currently payable and deferred tax.

 The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the date of the Statement of Financial Position.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilised.

Investment trusts which have approval under Section 1158 of the Income and Corporation Taxes Act 2010 ('ICTA') are not liable for taxation of capital gains.

(g)  Special reserve

As outlined in the launch prospectus dated 3 May 2006, application was made to the Court for the reduction of the share premium account and the creation of a special reserve which was granted on 20 December 2006. This reserve may be used for the purposes of repurchasing shares for treasury or cancellation pursuant to the company's discount management policy.

(h)  Accounting developments

The following standards, amendments and interpretations are applicable to the company.

IFRS 9 Financial Instruments

In the current period the company has adopted IFRS 9 Financial Instruments with effect from 1 April 2018. IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement and introduces new requirements for classification and measurement, impairment and hedge accounting. IFRS 9 is not applicable to items that have already been derecognised at 1 April 2018, the date of initial application.

Receivables that were previously measured at amortised cost under IAS 39 and are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. Therefore, such instruments continue to be measured at amortised cost under IFRS 9.

The classification of financial liabilities under IFRS 9 remains broadly the same as under IAS 39. The main impact on measurement from the classification of liabilities under IFRS 9 relates to the element of gains or losses for financial liabilities designated at fair value through profit or loss attributable to changes in credit risk. The company has not designated any financial liabilities at fair value through profit or loss therefore this requirement has not had an impact on the company.

IFRS 9 requires the company to record expected credit losses on all of its receivables, either on a 12 month or lifetime basis. As the company has limited exposure to credit risk, this amendment has not had a material impact on the financial statements as the company only holds receivables with no financing component that have maturities of 12 months or less. This requirement has not significantly changed the carrying amounts of the company's financial assets under IFRS 9.

Comparative figures for the year ended 31 March 2018 have not been restated and are still accounted for in accordance with IAS 39 Financial Instruments: Recognition and Measurement.

IFRS 15 Revenue from Contracts with Customers

The company adopted IFRS 15 Revenue from Contracts with Customers with effect from 1 April 2018. IFRS 15 replaces IAS 18 Revenue and establishes a five-step model to account for revenue arising from contracts with customers. In addition, guidance on interest and dividend income have been moved from IAS 8 to IFRS 9 without significant changes to the requirements. Therefore, there was no impact of adopting IFRS 15 for the company.

Standards issued but not yet effective

There are no standards or amendments to standards not yet effective that are relevant to the company and should be disclosed.

2.   Significant accounting judgements, estimates and assumptions

Management have not applied any significant accounting judgements to this set of Financial Statements or those of the prior period other than the allocation of special dividends received between revenue and capital.

3.   Income

	Year	Year
	ended	ended
	31 March	31 March
	2019	2018
	£'000	£'000
Income from investments
Dividends from UK companies	164	153
Dividends from overseas companies	660	455
Deposit interest	4	-
Total income	828	608

4.   Investment management and performance fee

	Year ended 31 March 2019			Year ended 31 March 2018
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Investment management fee	69	205	274	31	273	304
Investment performance fee	-	-	-	-	59	59
	69	205	274	31	332	363

75% (2018: 90%) of the investment management fee is treated as a capital expense.

*The company and the fund manager agreed to remove the performance fee arrangements with effect from 1 April 2018.

5.   Ongoing charges

	31 March	31 March
	2019	2018
	£'000	£'000
Investment management fees	274	304
Other expenses	317	291
Total expenses (excluding finance costs)	591	595
Average net assets	39,322,138	40,870,119
Ongoing charges %	1.50	1.46

6.     Earnings per ordinary share

The earnings per ordinary share figure is based on the net loss for the year of £414,000 (2018: net gain £1,889,000) and on 20,489,683 (2018: 21,132,431) ordinary shares, being the weighted average number of ordinary shares in issue during the year.

The earnings per ordinary share figure detailed above can be further analysed between revenue and capital, as below.

	Year	Year
	ended	ended
	31 March	31 March
	2019	2018
	£'000	£'000
Net revenue profit	387	238
Net capital (loss)/profit	(801)	1,651
Net total (loss)/profit	(414)	1,889
Weighted average number of ordinary shares in issue during the year used for the
purposes of the undiluted calculation	20,489,683	21,132,431
Weighted average number of ordinary shares in issue during the year used for the
purposes of the diluted calculation	20,489,683	21,132,431
Undiluted
Revenue earnings per ordinary share	1.89p	1.13p
Capital (losses)/earnings per ordinary share	(3.91)p	7.81p
Total (losses)/earnings per ordinary share	(2.02)p	8.94p
Diluted
Revenue earnings per ordinary share	1.89p	1.13p
Capital (losses)/earnings per ordinary share	(3.91)p	7.81p
Total (losses)/earnings per ordinary share	(2.02)p	8.94p

Any ordinary shares to be issued under the ordinary subscription rules had no dilution effect on the earnings per ordinary share for the year ended 31 March 2018 and 31 March 2019.

7.     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 was adjusted with effect from 1 June 2018 from 0.75% of net assets per annum to 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 after deduction of the value of any Jupiter managed investments.

The management fee payable to JUTM for the period 1 April 2018 to 31 March 2019 was £273,536 (year to 31 March 2018: £304,270) with £19,757 (31 March 2018: £24,914) outstanding at period end.

With effect from 1 April 2018 the proportion of the investment management fee and finance costs that are treated as a capital expense in the company's reports and accounts were reduced from 90% to 75%, so as to bring its accounting policy into line with that of comparable investment trusts.

The company and the fund manager agreed to remove the performance fee arrangements with effect from 1 April 2018.

The company has invested from time to time in funds managed by Jupiter Fund Management PLC or its subsidiaries. There was one such investment with a market value of £347,820 (31 March 2018: £344,190). 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 Fund Management PLC, or any subsidiary undertaking of Jupiter Investment Management Group Limited, receives fees as fund manager or investment adviser.

All transactions with related parties were carried out on an arm's length basis.

8.   Contingent liabilities and capital commitments

There were no contingent liabilities or capital commitments at 31 March 2019 (2018: Nil).

9.   Post balance sheet events

Since the year end (1 April to 20 June 2019) an additional 165,000 ordinary shares were repurchased to be held in treasury.  

On 10 April 2019 subscriptions were received from shareholders resulting in the allotment of 4,043 new ordinary shares.

10.  Annual Results

This Annual Results announcement does not constitute the Company's statutory accounts for the years ended 31 March 2018 and 31 March 2019 but is derived from those accounts. Statutory accounts for the year ended 31 March 2018 have been delivered to the Registrar of Companies. The statutory accounts for the year ended 31 March 2018 and the year ended 31 March 2019 both received an audit report which was unqualified and did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not include statements under Section 498 of the Companies Act 2006 respectively. The statutory accounts for the year ended 31 March 2019 have not yet been delivered to the Registrar of Companies and will be delivered following the Annual General Meeting.

11.  Availability of Annual Report and Accounts

A copy of the Annual Report & Accounts will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.morningstar.co.uk/uk/NSM.

A copy of the Annual Report & Accounts will also be available for download from the Company's section of Jupiter Asset Management's website www.jupiteram.com/JGC

The Annual Report and Accounts will shortly be posted to those registered shareholders who have elected to receive a hard copy.

For further information, please contact:

Richard Pavry

Head of Investment Trusts

Jupiter Asset Management Limited, Company Secretary

[e-mail]

020 3817 1000

3 July 2019

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