Half-year Report

RNS Number : 6220V

Jupiter Green Investment Trust Plc

14 December 2021

 

Jupiter Green Investment Trust plc ('the company')

Legal Entity Identifier: 549300MFRCR13CT1L845

Half Yearly Financial Report for the six months to 30 September 2021 (unaudited)

Financial Highlights for the six months to 30 September 2021

Capital Performance

	As at	As at
	30.09.21	31.03.21
Total Assets less current liabilities (£'000)	59,680	53,304

Ordinary Share Performance

	As at	As at
	30.09.21	31.03.21		% Change
Mid-market price (p)	257.00	264.00		-2.7
Undiluted net asset value per ordinary share (p)	278.45	266.73		+4.4
Undiluted net asset value per ordinary share (p)
(with dividends paid of 0.64p added back (2020: 1.3p))	279.09	266.73		+4.6
Diluted net asset value per ordinary share (p)**	277.38	258.24		+7.4
Diluted net asset value per ordinary share (p)
(with dividends paid of 0.64p added back (2020: 1.3p)	278.02	258.24		+7.7
MSCI World Small Cap Total Return Index				6.7
Discount to net asset value (%)	7.70	1.02
Ongoing charges ratio (%) excluding finance costs	1.46	1.73		-15.6

** Being the net asset value per share assuming that all annual subscription rights are taken up.

Chairman's Statement

It is with pleasure that I present the Interim Report and Accounts for Jupiter Green Investment Trust PLC for the six months to 30 September 2021.

The need for environmental solutions to climate challenges remains as pressing as ever, but the attention of global investment markets has been preoccupied in recent months with other matters. Chief among these were the halting and slow unlocking of societies following COVID-19 vaccination rollouts and the spread of the Delta variant, and speculation about the pace and scale of inflation rises as central banks grapple with the question of whether to raise interest rates and, if so, when and by how much.

A spike in prices for carbon-intensive energy sources such as oil and gas in September caused some to declare that the age of fossil fuels still has time to run. But make no mistake: The burning of finite and highly polluting fossil fuels to generate energy remains in structural, indeed terminal, decline. The deficiencies in existing renewable energy generation, storage and release capabilities simply underline the fact that, despite how far we've come already, further investment and innovation will long be required as the world's energy mix cleans up in the years to come. Meanwhile, an emerging wave of innovative environmental solutions continues to make strides in other areas, such as the circular economy and biodiversity, while the drive to rebuild economies following COVID-19 has greener and more sustainable policies at its heart the world over.

This environment is a rich hunting ground for investors in environmental solutions, but the range of opportunities and the inevitable risks of investing in any asset class mean that taking an active approach based on detailed fundamental analysis of businesses across multiple themes will continue to be crucial. Indeed, as highlighted in the Investment Adviser's Review later in this report, the diversification of themes in the company's portfolio plays a valuable role in navigating markets during volatile periods.

It is pleasing to note that the Investment Adviser has expanded the size of the Environmental Solutions team by adding two experienced analysts to support the Company's fund manager, Jon Wallace.

Investment performance

During the six months under review, the total return of the net asset value per ordinary share increased 4.4%.  With dividend income included, the total return for the period was 4.6%. This contrasts with a fall of 2.7% in the company's share price and a 6.7% rise in the company's benchmark index, the MSCI World Small Cap Total Return Index.

The company's focus on environmental solutions means that the investment portfolio may bear little resemblance to the geographical and sectoral weightings of the benchmark. This may lead to significant variation between the performance of the company's net asset value and the performance of the benchmark over short periods of time.

A review of investment performance over the course of the period is set out by Jon Wallace in the Investment Adviser's Review in the following pages.

Dividend

The dividend policy of the company is to pay one final dividend per annum in October each year equal to the current revenue of the company. At the Annual General Meeting held on 1 September 2021 shareholders approved a final dividend of 0.64p per share in respect of the financial year ended 31 March 2021 which was paid on 1 October 2021, to those shareholders on the register as at 17 September 2021.

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.

On 24 August 2020 the company entered into a 2-year revolving loan facility agreement with Royal Bank of Scotland International Limited of £5 million which the Investment Adviser has been authorised by the board to draw down for investment purposes. The facility to gear the company's investment portfolio is deployed tactically by the Investment Adviser with a view to enhancing shareholder returns. The directors have determined that the maximum level of gearing will be 25% of the company's total assets at the time of drawdown.

As at 30 September 2021 the company's net gearing level was zero (being the amount of drawn down bank debt, less cash held on the balance sheet pending investment on that date, as a proportion of the company's total assets). While the loan facility was used to apply gearing to the portfolio during the period, the net gearing at the end of this period reflected a more cautious stance on the part of the Investment Advisor given a deterioration in the nearer-term risks to market sentiment.

Discount Management

The company's share price traded at a premium to net assets from April to June and at a discount to net assets in the period from July to September. As at 30 September, the share price of £2.57 was at a discount of 7.7% to the net asset value per share of £2.78. The Board issued shares amounting to £3m during the period and bought back shares amounting to £0.2m in July in order to limit the extent of the discount. It is pleasing to note that at the time of writing the discount has narrowed to 4.3% as the Board would like to grow the size of the Company and thereby increase the liquidity of its shares for the benefit of shareholders.

Outlook

A positive outcome of the COP-26 conference was the heightened sense of urgency in tackling the causes of climate change, with leaders voicing a consistent message that the critical decade in reaching net-zero ambitions by the middle of the century, is indeed this decade. This aligns with the strategic view of the Board that a compelling investment opportunity exists across all time horizons, with a focus on continued innovation and accelerated scale-up of technological solutions. It is therefore particularly encouraging that a key element of the Glasgow Pact is to revisit and ratchet up national and international ambitions towards mitigating climate change on an annual basis, a step change departure from the previous five-year cycle and one that reflects the urgency of the challenge.

We live on a planet that has finite resources, which we are already over-consuming. The debate surrounding these critical issues will evolve over the next decade and will ultimately impact business models, with major implications across a wide variety of industries.

Climate change is a long-term problem that will need long-term solutions, which is why environmental themes can present multi-year, indeed even multi-decade, opportunities. Jon Wallace and his team will look to take advantage of any underappreciated opportunities that arise as a result of ongoing market turmoil with an eye towards generating long-term returns for the company's shareholders. As we have seen in the past, unprecedented change can create significant investment opportunities across each of the seven investment themes that comprise the portfolio.

Michael Naylor

Chairman

14 December 2021

Investment Adviser's Review

Market review

The continued rollout of vaccines across the world, in an attempt to outpace the spread of new COVID-19 variants, contributed to the global equity market rally during the second quarter. This rally was initially characterised by a rebound in cyclical stocks which benefitted from the prospect of improving economic conditions. As the period progressed, investors focussed more on companies with strong quality and growth characteristics.

A feature of the period was the continued rise in global inflation, with surging energy costs in September adding to the upward pressure on prices. In response central banks signalled that monetary policy was likely to be tightened. Widely-followed global business surveys painted a picture of strong end demand but also difficulties in sourcing components and filling job vacancies due to the lingering impact of COVID-19 on supply chains and labour markets, putting upward pressure on prices and wages.

Within the environmental solutions investment universe, underlying performance trends were healthy although not without volatility. While all investment themes contributed positively to performance, companies in the Clean energy theme, for example, rebounded following an initial period of weakness.

Investment review

The company's approach to investing in sustainable solutions remains focused on seven themes:

· Circular economy: solutions for sustainable materials and resource stewardship

· Clean energy: generation, storage and distribution

· Water: conservation and management

· Mobility: technologies and services for sustainable movement

· Energy efficiency: enabling a low carbon transition

· Sustainable agriculture, nutrition and health: solutions protecting natural resources and well- being

· Environmental services: pollution control, testing and impact management

Within those themes, the company is focused on companies - many of them on the smaller end of the market capitalisation spectrum - that are at the forefront of innovating technological solutions to sustainability challenges ('innovators'), as well as companies that are already rapidly delivering proven sustainable solutions in their markets ('accelerators'). We believe this approach should deliver attractive capital growth to shareholders over the long-term.

Investment performance

During the six months ended 30th September 2021, the net asset value per ordinary share of the company increased 4.4% to 278.45. Over the same period, the return of the company's benchmark, the MSCI World Small Cap Total Return Index rose 6.7%.

A general trend during this period was a slump in the share price of some exciting innovative stocks, largely due to profit-taking or a change in market sentiment as underlying business performance remained broadly robust and reflective of their strong long- term potential. An example is Re:NewCell, which fell c.5.5% during the six month period under review but is up c.83% over 12 months. This innovative Swedish company, born out of top materials science institutions, is a leader in the emerging field of textiles recycling, with its branded Circulose material already in the market with the likes of Levis. During the period, indeed, Re:NewCell received environmental approvals to retrofit a key production centre to increase their output capacity.

Other detractors included Danish power company Ørsted, which was the largest negative performer relative to the benchmark during the period. This was due to increasing competition in offshore wind development from the traditional energy players and, given the updated outlook for interest rates, an increasing discount rate being applied on its very long-term asset pipeline. That said, the price recently paid by BP for development rights for some offshore sites implies that Ørsted's own portfolio of global development rights is worth significantly more than the company would have originally paid for them.

Another notable negative was Ceres Power. This hydrogen economy stock is generating revenue but is not yet earnings positive, and the share price has sold off from its highs earlier in the year. However, its tie-ups with partners on hydrogen fuel cell technology and capital-light business model, give us confidence for its future prospects.

Lastly, TeamViewer was also a detractor for reasons of increased competition in the remote access and control software, while Itron's ability to supply smart meters was impacted by the global semiconductor shortage and led to weakness in the share price.

Positives for the company's portfolio of stocks included Evoqua, which we bought into during the period. The company provides solutions for dealing with 'forever chemicals' (such as polyfluoroalkyl substances, or PFAS for short) that can leak into the environment from industrial processes and be very hard to get out. This is exactly the sort of innovative small cap business the company is set up to take advantage of, and it has been a winner for the portfolio in the short time we've held it so far.

Other contributors to relative returns were Monolithic Power, which produces highly energy- efficient power management systems, and DSM, as the Dutch company completed the sale of its commodity chemicals unit to cement its transition into a business focused on supply high-value nutrition products (e.g., protein substitutes).

Elsewhere, Daiseki has added industrial recycling capacity and its share price has performed well, as too has Borregaard, a Norwegian biorefinery which is also part of our Circular Economy theme. Borregaard uses waste wood to develop wood-based substitutes for petroleum and we believe is an example of a compelling environmental solution with a large addressable market, but one that hasn't yet received the attention of the wider investment market. The company announced strong results during the third quarter, on the back of increased access to higher growth and higher margin markets.

Outlook

Despite a healthy long-term growth backdrop for environmental solutions themes we are mindful that the coming months may see a continuation of the recent volatility we have seen within broader global equity markets.

In this environment, we see the current market volatility as a buying opportunity. We have a conviction that energy security concerns will embolden, not diminish, the long-term case for accelerating the energy transition. We also note that the recent IPCC report highlighted not just the effects of burning all types of fossil fuels 'downstream' for energy, but also the damaging effects of fossil fuels sectors in contributing to methane emissions from their exploration and production 'upstream'. Methane is a potent greenhouse gas that itself has contributed to about one quarter of the rise in global temperatures since the Industrial Revolution.

Meanwhile we continue to see a broadening of the opportunity set of 'enabling' solutions capable of tackling not just climate change but other, closely linked, environmental challenges such as biodiversity loss and wider forms of degradation to the natural world. Looking ahead, we expect this encouraging trend to continue, providing a healthy stock-picking landscape of companies focussed on environmental solutions.

Jon Wallace

Fund Manager

Jupiter Asset Management Limited

Investment Adviser

14 December 2021

Investment Portfolio as at 30 September 2021

		Market
	Country	value	Percentage
Company	of listing	£'000	of portfolio
Koninklijke DSM	Netherlands	1,978	3.3
Vestas Wind Systems	Denmark	1,878	3.2
Borregaard	Norway	1,868	3.1
Evoqua Water Technologies	United States of America	1,699	2.9
Hannon Armstrong Sustainable Infrastructure Capital, REIT	United States of America	1,668	2.8
Schneider Electric	France	1,619	2.7
Sensirion Holding	Switzerland	1,588	2.7
Monolithic Power Systems	United States of America	1,498	2.5
NextEra Energy Partners	United States of America	1,462	2.5
Azbil	Japan	1,453	2.4
Re:NewCell	Sweden	1,419	2.4
Xylem	United States of America	1,418	2.4
Veolia Environnement	France	1,416	2.4
Orsted	Denmark	1,415	2.4
TOMRA Systems	Norway	1,397	2.4
Itron	United States of America	1,394	2.4
A O Smith	United States of America	1,356	2.3
Prysmian	Italy	1,324	2.2
Befesa	Luxembourg	1,289	2.2
Watts Water Technologies	United States of America	1,268	2.1
First Solar	United States of America	1,251	2.1
Regal Beloit	United States of America	1,250	2.1
Renewi	United Kingdom	1,225	2.1
Umicore	Belgium	1,157	2.0
Daiseki	Japan	1,140	1.9
Shimano	Japan	1,093	1.8
Sensata Technologies Holding	United Kingdom	1,071	1.8
Ceres Power Holdings	United Kingdom	1,060	1.8
SolarEdge Technologies	United States of America	1,056	1.8
Horiba	Japan	1,019	1.7
Infineon Technologies	Germany	977	1.6
Casella Waste Systems	United States of America	975	1.6
Valmont Industries	United States of America	959	1.6
Stantec	Canada	948	1.6
Trainline	United Kingdom	852	1.4
Innergex Renewable Energy	Canada	788	1.3
Corbion	Netherlands	782	1.3
Covanta Holding	United States of America	771	1.3
Clean Harbors	United States of America	745	1.3
Novozymes	Denmark	740	1.2
Hoffmann Green Cement Technologies	France	734	1.2
Aptiv	Jersey	720	1.2
Mayr Melnhof Karton	Austria	701	1.2
TeamViewer	Germany	685	1.2
Atlas Copco	Sweden	676	1.1
Miura	Japan	657	1.1
BorgWarner	United States of America	655	1.1
Acuity Brands	United States of America	640	1.1
SKF	Sweden	638	1.1
Knorr-Bremse	Germany	594	1.0
ANDRITZ	Austria	570	1.0
Greencoat Renewables	United Kingdom	542	0.9
Brambles	Australia	464	0.8
Beijing Enterprises Water Group	Bermuda	328	0.6
RA International Group	United Kingdom	274	0.5
Salmones Camanchaca	Chile	142	0.2
Veolia Environnement Rights 01/10/2021	France	36	0.1
Total Investments		59,322	100.0

The holdings listed above are all equity shares unless otherwise stated.

Cross Holdings in other Investment Companies

As at 30 September 2021, 0.9% of the company's total assets was invested in Greencoat Renewables, a UK listed investment company.

Whilst the requirements of the UK Listing Authority permit the company to invest up to 10% of the value of the total assets of the company (before deducting borrowed money) in other investment companies (including investment trusts) listed on the Main Market of the London Stock Exchange, it is the directors' current intention that the company invests not more than 5% in other investment companies.

Interim Management Report

Related Party Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which would have materially affected the financial position or performance of the company. Details of related party transactions are contained in the Annual Report and Accounts for the year ended 31 March 2021.

.

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the company can be divided into the following areas:

· Investment policy and process;

· Investment strategy and share price movements;

· Covid-19

· Discount to net asset value;

· Liquidity risk;

· Gearing risk;

· Regulatory risk;

· Credit and counterparty risk;

· Loss of key personnel;

· Operational; and

· Financial.

The board reported on the above principal risks and uncertainties in the Annual Report & Accounts for the year ended 31 March 2021.

Going Concern

The directors, having considered the company's investment objective, risk management and capital management policies, the diversified portfolio of readily realisable securities which can be used to meet short-term funding commitments and the ability of the company to meet all of its liabilities and ongoing expenses, are satisfied that the company has adequate resources to continue in operation for the foreseeable future. The directors continue to adopt the going concern basis of accounting in preparing the accounts.

As part of its assessment, the board has noted that shareholders will be required to vote on the continuation of the company at the 2023 AGM.

Directors' Responsibility Statement

The directors of Jupiter Green Investment Trust PLC confirm to the best of their knowledge:

(a)	The condensed set of financial statements have been prepared in accordance with applicable United Kingdom law and those International Accounting Standards ('IAS') in conformity with the Companies Act 2006 and give a true and fair view of the state of affairs of the company, and profit or loss of the company as at 30 September 2021.
(b)	The Chairman's Statement, the Investment Adviser's Review and the Interim Management Report include a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules.
(c)	The Interim Management Report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules.

The Half Yearly Financial Report has not been audited or reviewed by the company's auditor.

For and on behalf of the Board

Michael Naylor

Chairman

14 December 2021

Statement of Comprehensive Income

For the six months to 30 September 2021 (unaudited)

		Six months to 30 September 2021			Six months to 30 September 2020
	Revenue £'000		Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gain on investments held at fair value through profit or loss (Note 2)		-	3,728	3,728	-	9,193	9,193
Foreign exchange gain		-	68	68	-	34	34
Income		458	-	458	403	-	403
Total income		458	3.796	4,254	403	9,227	9,630
Investment management fee		(51)	(153)	(204)	(34)	(101)	(135)
Other expenses		(218)	-	(218)	(194)	(30)	(224)
Total expenses		(269)	(153)	(422)	(228)	(131)	(359)
Net return on ordinary activities before finance costs and taxation		189	3,643	3,832	175	9,096	9,271
Finance costs		(5)	(16)	(21)	(1)	(3)	(4)
Return on ordinary activities before taxation		184	3,627	3,811	174	9,093	9,267
Taxation		(65)	-	(65)	(37)	-	(37)
Net return after taxation		119	3,627	3,746	137	9,093	9,230
Earnings per ordinary share (Note 3)		0.56p	16.95p	17.51p	0.73p	48.37p	49.10p

The total column of this statement is the income statement of the company, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance produced by the Association of Investment Companies (AIC). All items in the above statement derive from continuing operations.

No operations were acquired or discontinued during the period.

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

The financial information does not constitute 'accounts' as defined in section 434 of the Companies Act 2006.

Statement of Financial Position

As at 30 September 2021

	30 September 2021 (unaudited) £'000	31 March 2021 (audited) £'000
Non current assets
Investments held at fair value through profit or loss	59,322	51,025
Current assets
Prepayments and accrued income	174	157
Cash and cash equivalents	2,939	3,161
	3,113	3,318
Total assets	62,435	54,343
Current liabilities
Other payables	(2,755)	(1,039)
Total net assets less current liabilities	59,680	53,304
Capital and reserves
Called up share capital	34	34
Share premium	2,455	1,563
Redemption reserve*	239	239
Retained earnings (Note 5)*	56,952	51,468
Total equity shareholders' funds	59,680	53,304
Net asset value per ordinary share (Note 6)	278.45p	266.73p
Diluted net asset value per ordinary share	277.38p	258.24p

* 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 14 December 2021 and signed on its behalf by:

Michael Naylor

Chairman

Company Registration number 05780006

Statement of Changes in Equity

For the six months to 30 September 2021

For the six months to 30 September 2021 (unaudited)	Share Capital £'000	Share Premium £'000	Redemption Reserve £'000	Retained Earnings £'000	Total £'000
Balance at 31 March 2021	34	1,563	239	51,468	53,304
Net return for the period	-	-	-	3,746	3,746
Ordinary shares reissued from treasury	-	892	-	2,062	2,954
Ordinary shares repurchased	-	-	-	(187)	(187)
Dividend declared and approved
by shareholders	-	-	-	(137)	(137)
Balance at 30 September 2021	34	2,455	239	56,952	59,680

For the six months to 30 September 2020 (unaudited)	Share Capital £'000	Share Premium £'000	Redemption Reserve £'000	Retained Earnings £'000	Total £'000
Balance at 31 March 2020	34	29,748	239	2,560	32,581
Net return for the period	-	-	-	9,230	9,230
Dividend declared and approved
by shareholders	-	-	-	(244)	(244)
Balance at 30 September 2020	34	29,748	239	11,546	41,567

Cash Flow Statement

For the six months to 30 September 2021 (unaudited)

	2021 £'000	2020 £'000
Cash flows from operating activities
Investment income received (gross)	444	431
Deposit interest received	-	-
Investment management fee paid	(232)	(153)
Other cash expenses	(77)	(172)
Net cash inflow from operating activities before taxation	135	106
Interest paid	(21)	(4)
Taxation	(65)	(37)
Net cash inflow from operating activities	49	65
Net cash flows from investing activities
Purchases of investments	(8,560)	(5,927)
Sales of investments	3,991	6,420
Net cash (outflow)/inflow from investing activities	(4,569)	493
Cash flows from financing activities
Shares repurchased	(187)	-
Shares reissued from treasury	2,954	-
Drawdown of short-term bank loan	1,600	-
Equity dividends paid	(137)	-
Net cash /inflow from financing activities	4,230	-
(Decrease)/Increase in cash	(290)	558
Cash and cash equivalents at start of period	3,161	604
Realised gain on foreign currency	68	34
Cash and cash equivalents at end of period	2,939	1,196

Notes to the Financial Statements for the six months to 30 September 2021

1.  Accounting Policies

The Accounts comprise the unaudited financial results of the company for the period to 30 September 2021. The Accounts are presented in pounds sterling, as this is the functional currency of the company. All values are rounded to the nearest thousand pounds (£'000) except where indicated.

The Accounts have been prepared in accordance with 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 and updated in February 2018 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 AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the statement.

An analysis of retained earnings broken down into revenue items and capital items is given in note 5.

Investment management fees and finance costs are charged 75% to capital and 25% to revenue (2020: 75% to capital and 25% 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.

2.  Gain on Investments

	Six months to 30 September 2021 £'000	Six months to  30 September 2020  '000
Net gain realised on sale of investments	958	1,414
Movement in unrealised gains	2,770	7,779
Gain on investments	3,728	9,193

3.  Earnings per ordinary share

The earnings per Ordinary share figure is based on the net profit for the six months of £3,746,000 (six months to 30 September 2020: net profit £9,230,000) and on 21,399,073 Ordinary shares (six months to 30 September 2020: 18,798,986), being the weighted average number of Ordinary shares in issue during the period.

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

	Six months to 30 September 2021 £'000	Six months to 30 September 2020 £'000
Net revenue profit	119	137
Net capital profit	3,627	9,093
Net total profit	3,746	9,230
Weighted average number of ordinary shares in issue during the period	21,399,073	18,798,986
Revenue earnings per ordinary share (p)	0.56	0.73
Capital earnings per ordinary share (p)	16.95	48.37
Total earnings per ordinary share (p)	17.51	49.10

4.  Transaction Costs

The following transaction costs were incurred during the period:

	Six months to 30 September 2021 £'000	Six months to 30 September 2020 £'000
Purchases	11	6
Sales	2	4
Total	13	10

5.  Retained Earnings

The table below shows the movement in the retained earnings analysed between revenue and capital items.

	Revenue £'000	Capital £'000	Total £'000
At 31 March 2021	143	51,325	51,468
Movement during the period:
Net return for the period	119	3,627	3,746
Dividends paid 0.64p	(137)	-	(137)
Ordinary shares reissued from treasury	-	2,062	2,062
Shares repurchased	-	(187)	(187)
At 30 September 2021	125	56,827	56,952

6.  Net asset value per ordinary share

The net asset value per ordinary share is based on the net assets attributable to the ordinary shareholders of £59,680,000 (31 March 2021: £53,304,000) and on 21,433,314 (31 March 2021: 19,983,986) ordinary shares, being the number of ordinary shares in issue at the period end excluding treasury shares.

	Six months to 30 September 2021 £'000	Year ended 31 March 2021 £'000
Undiluted
Ordinary shareholders' funds	59,680	53,304
Number of ordinary shares in issue	21,433,314	19,983,986
Net asset value per ordinary share (pence)	278.45p	266.73p
Diluted
Ordinary shareholders' funds	65,397	53,304
Number of ordinary shares in issue	23,576,645	21,982,385
Net asset value per ordinary share (pence)	277.38p	258.24p

The diluted net asset value per ordinary share assumes that all outstanding dilutive subscription shares, being one for ten ordinary shares, will be converted to ordinary shares at the end of the financial year.

7.  Fair valuation of investments

The financial assets measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy as follows:

	30 September 2021				31 March 2021
	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Equity Investments	59,286	-	36	59,322	51,025	-	-	51,025
	59,286	-	36	59,322	51,025	-	-	51,025

A reconciliation of fair value measurements in level 3 is set out in the following table:

	30 September 2021 £'000	31 March 2021 £'000
Opening balance	-	-
Purchases / corporate action	33	-
Fair value movements	3	-
Closing balances	36	-

The closing balance represents Veolia Environnement Rights 01/10/2021 £36,000 (31 March 2021: £nil).

Level 1 reflects financial instruments quoted in an active market.

Level 2 reflects financial instruments whose fair value is evidenced by comparison with other observable current market transactions in the same instrument or based on a valuation technique whose variables includes only data from observable markets.

Level 3 reflects financial instruments whose fair value is determined in whole or in part using a valuation technique based on assumptions that are not supported by prices from observable market transactions in the instrument and not based on available observable market data.

8.  Principal risk profile

The principal risks which the company faces include exposure to:

(i)  market price risk, including currency risk, interest rate risk and other price risk

(ii)  credit and counterparty risk

(iii)  liquidity risk

Market price risk - This is the risk that the fair value or future cash flows of a financial instrument held by the company may fluctuate because of changes in market prices. This market risk comprises three elements - currency risk, interest rate risk and other price risk.

Credit and counterparty risk - This is the exposure to loss from the failure of a counterparty to deliver securities or cash for acquisitions or to repay deposits.

Liquidity risk - This is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities.

Covid-19 - The outbreak of the Covid-19 pandemic poses additional risks to the company beyond the principal risks described above. They include liquidity risks to markets and business continuity risks for the investment adviser.

Further details of the company's management of these risks can be found in Note 13 of the company's Annual report and accounts for the year ended 31 March 2021.

There have been no changes to the management of or the exposure to these risks since that date.

9.  Related Parties

Jupiter Unit Trust Managers Limited ('JUTM'), the Alternative Investment Fund Manager, is a company within the same group as Jupiter Asset Management Limited ('JAM'), the Investment Adviser. JUTM receives an investment management fee as set out below.

JUTM is contracted to provide investment management services to the company subject to termination by not less than twelve months' notice by either party. The basis for calculation of the management fee charged to the company is a tiered fee amounting to 0.70% of net assets up to £150 million, reducing to 0.60% for net assets over £150 million and up to £250 million, and reducing further to 0.50% for net assets in excess of £250 million, per annum, after deduction of the value of any Jupiter managed investments.

The management fee payable to JUTM for the period 1 April 2021 to 30 September 2021 was £203,908 (year to 31 March 2021: £309,169) with £34,758 (31 March 2021: £62,307) outstanding at period end.

The company has invested from time to time in funds managed by Jupiter Investment Management PLC or its subsidiaries. There was no such investment during current period (31 March 2021: Nil).

No investment management fee is payable by the company to Jupiter Asset Management Limited in respect of the company's holdings in investment trusts, open-ended funds and investment companies in respect of which Jupiter Investment Management Group Limited, or any subsidiary undertaking of Jupiter Investment Management Group Limited, receives fees as investment manager or investment adviser.

Availability of Half Yearly Financial Report

The Half Yearly Financial Report will shortly be available on company's website www.jupiteram.com/JGC.

A copy of the Half Yearly Financial Report will also be submitted to the National Storage Mechanism and will soon be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

By Order of the Board

Jupiter Asset Management Limited

Company Secretary

14 December 2021

For further information, please contact:

Magnus Spence

Head of Investment Trusts & Alternatives

Jupiter Asset Management Limited

[e-mail]

020 3817 1000

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