Half-yearly report

JUPITER GREEN INVESTMENT TRUST PLC The unaudited results for the six months to 30 September 2008. CHAIRMAN'S STATEMENT I hereby present your Company's unaudited financial statements for the period ended 30 September 2008. The period was mired by an extreme crisis in the banking sector, the likes of which have not been seen for a generation. The knock-on effect on the global economy is yet to be fully realised and the patience of stock market investors has been tested. Unfortunately, the Company lost value amid challenging conditions, but was cushioned by the resilience of some of the environmental areas in which it invests. During the period under review your Company's total assets, adjusted for share cancellations and warrant conversions, fell by 8.5 per cent. to £46,985,000. This compares favourably with a fall in the Company's composite benchmark index of 13.8 per cent. over the same period. The Company's composite benchmark index is weighted to reflect the proportions of the Company's total assets which are managed by Jupiter Asset Management Limited (measured against the FTSE World Smaller Companies ex US Index, which returned -22.8 per cent. for the period) and by Winslow Management Company, LLC (measured against the Russell 2500 Growth Index in the USA, which returned 5.5 per cent. for the period). The undiluted Net Asset Value per Ordinary share fell by 8.5 per cent. to 104.43p whilst the middle market price of the Company's Ordinary shares fell by 12.0 per cent. to 95p during the period under review. The diluted Net Asset Value of the Company's Ordinary shares, which is the Net Asset Value that would apply to the Ordinary shares in the event that all Warrants in issue were to be exercised, fell by 7.3 per cent. to 103.74p during the period under review. The middle market price of the Warrants fell by 60.6 per cent. to 13.00p. The Company maintains the investment philosophy adopted at time of launch. In these difficult times, the manager believes it important to maintain his long term investment approach. The Manager's Review details key market and portfolio themes of the period and I commend it to you. The green investment sector is being affected by the credit crisis, with finance for smaller projects more difficult to obtain. That said, the legislative framework that has hitherto supported the green investment continues to tighten, in spite of economic weakness. US climate change policy is expected to be fundamentally revised following the election of President Barack Obama. There have also been encouraging calls by influential organisations such as the UN to revive the global economy through heightened investment in clean technology and natural infrastructure such as forests. For companies addressing the world's social and environmental challenges, these are positive signs that the political will to address climate change is undiminished. It remains satisfying that your Company continues to provide an opportunity to invest in businesses proactively seeking environmental solutions. Perry K O Crosthwaite Chairman 28 November 2008 MANAGER'S REVIEW Performance Review For the six months ended 30tof September 2008 the total return for the Company was down 8.5 per cent.* compared to a fall of 13.8 per cent. for the Company's composite index**. Market and Policy Review Global stock markets were mired by extreme volatility during the six months under review. After a positive start to the period investors grew increasingly concerned that the credit crunch and global economic pressures were creeping beyond the control of policy makers around the world. September 2008, in particular, will long be remembered as the month in which the credit crunch dramatically reshaped US financials. Fannie Mae and Freddie Mac were rescued, Lehman Brothers filed for bankruptcy, AIG was saved, and the remaining two independent US investment banks sought traditional bank status for the Federal Reserve protection this affords. In response to the worsening crisis, the US Treasury proposed a $700bn plan to help alleviate the credit crunch and restore banks to normal business. However, this failed to comfort the market, even after the plan had surmounted Congressional delays. The contagion spread across the world with several European banks being nationalised. Notably, the prospect of a prolonged global slowdown heavily impacted the resources sector and it suffered large losses. In these difficult conditions, the Company lost 8.5 per cent. of its value. However, its performance relative to the composite benchmark was very encouraging. Part of this outperformance can be attributed to the sell off in resources stocks, which the Fund does not hold due to its environmental bias. Holding a large, strategic cash balance of £3.5 million also provided protection. We were particularly impressed, however, by the resilience of several holdings in the portfolio. Sustainable living holdings Cranswick and United Natural Foods*** made excellent progress. The former is benefiting from shoppers trading down from higher priced beef to high quality pork products. Meanwhile, the latter has been revived by robust demand for healthy foods in the US. Falling oil prices were also provided relief for the company's distribution business. Elsewhere, Xantrex Technology (clean energy), which provides electronic technology to the renewable energy sector, received a bid from Schneider Electric. The pessimistic mood was indiscriminate towards some of our core holdings. From the environmental services sector, RPS, which has exposure to the oil & gas sector through a number of projects, was weaker on the back of falling energy prices. WS Atkins, from the same sector, ended the period lower on concern about a general tightening of UK government spending. Meanwhile, water management company Veolia Environnement was the worst performer for the Company on concern about the impact of the current economic slowdown on its growth strategy. Investment Outlook This remains a challenging period. The credit crunch has resulted in some major historical events in the Western financial system and the green sector will not be immune to the potential fallout. After the recent collapse of the UK sterling and the bearish sentiment battering the smaller companies, it is feasible that we may see US and Asian takeover interest in UK green companies. In these difficult times, we believe it has been important to stick to our convictions and to our underlying strategy. We maintain our long term approach, with a focus on our six green themes as well as those companies with active social and environmental governance policies. Given the significant de-rating of the stock market, we expect to drip feed some of the Company's cash into oversold companies with particularly strong management teams and healthy balance sheets. More positively, momentum is also gathering in the US with regard to the environment. The alternative energy sector recently received a boost from a number of tax breaks passed at the same time as the $700bn bank bail-out package. These incentives are designed to help cut US greenhouse gas emissions and reduce reliance on foreign oil. The election of President Barack Obama is also expected to bring tougher climate change legislation. Ultimately, we believe the current downturn should prove a good buying opportunity for long term investors. Charles Thomas Jupiter Asset Management Limited 28 November 2008 *Source: Jupiter Asset Management. **FTSE Global Small Cap ex UK and Russell 2500 Growth Index, rebalanced to reflect the proportion of total assets managed by Jupiter and Winslow respectively. ***Managed by Winslow. RESPONSIBILITY STATEMENT We the directors of Jupiter Green Investment Trust PLC confirm to the best of our knowledge: a) the condensed set of financial statements have been prepared in accordance with the Accounting Standards Board's statement `Half-Yearly Financial Reports'; b) the condensed financial statements give a true and fair review of the assets, liabilities, financial position and profit or loss of the Company, as required by the Disclosure and Transparency Rules 4.2.4R; and c) a fair review of the information required by the Disclosure and Transparency Rules 4.2.7R and 4.2.8R can be found in the Chairman's Statement, the Manager's Review and as shown below under "Risks and Uncertainties" and "Related Party Transactions". By order of the Board Perry K O Crosthwaite Chairman 28 November 2008 INCOME STATEMENT for the six months to 30 September 2008 (unaudited) Six months to Six months to 30 September 2008 30 September 2007 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 (Loss)/gain on investments at fair value - (6,476) (6,476) - 2,817 2,817 Foreign exchange gain/(loss) 12 1,973 1,985 (1) (504) (505) Income 465 - 465 411 - 411 ______ _____ _____ ______ _____ _____ Total income 477 (4,503) (4,026) 410 2,313 2,723 ______ _____ _____ ______ _____ _____ Investment management fee (225) - (225) (232) - (232) Investment performance fee - - - - (224) (224) Other expenses (183) - (186) (165) - (165) ______ _____ _____ ______ _____ _____ Total expenses (408) - (408) (397) (224) (621) ______ _____ _____ ______ _____ _____ Return on ordinary activities before finance costs and taxation 69 (4,503) (4,434) 13 2,089 2,102 Finance costs (3) - (3) - - - ______ _____ _____ ______ _____ _____ Return on ordinary activities before taxation 66 (4,503) (4,437) 13 2,089 2,102 Taxation (29) - (29) (9) - (9) ______ _____ _____ ______ _____ _____ Net return after taxation 37 (4,503) (4,466) 4 2,089 2,093 ______ _____ _____ ______ _____ _____ Return per Ordinary share 0.08 (9.88) (9.80) (0.32) 5.95 5.63 (pence) Return per C Share (pence) - - - 0.38 1.86 2.24 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. All items in the above statement derive from continuing operations. The financial information does not constitute `accounts' as defined in section 240 of the Companies Act 195. BALANCE SHEET As at 30 September 2008 30 September 2008 31 March 2008 (unaudited) (audited) £'000 £'000 Non current assets Investments held at fair value through profit or loss 43,120 52,008 _______ _______ Current assets Prepayments and accrued income 55 122 Sales awaiting settlement 312 331 Cash and cash equivalents 3,576 362 _______ _______ 3,943 815 _______ _______ Total assets 47,063 52,823 _______ _______ Current liabilities Accruals (78) (89) _______ _______ Total assets less current liabilities 46,985 52,734 ======= ======= Capital and reserves Called up share capital 45 46 Share premium 26,228 26,075 Redemption reserve 225 224 Special reserve 24,292 24,292 Retained earnings (3,805) 2,097 _______ _______ Total equity shareholders' funds 46,985 52,734 ======= ======= Net Asset Value per Ordinary share 104.43p 114.14p Diluted Net Asset Value per Ordinary share 103.74p 111.95p STATEMENT OF CHANGES IN NET EQUITY for the six months to 30 September 2008 (unaudited) Share Share Special Redemption Retained Capital Premium Reserve reserve Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 March 2008 46 26,075 24,292 224 2,097 52,734 Net loss for the period - - - - (4,466) (4,466) Ordinary shares issued - 153 - - - 153 Ordinary shares cancelled (1) - - 1 (1,436) (1,436) ______ _____ _____ _____ _______ _______ Balance at 30 September 45 26,228 24,292 225 (3,805) 46,985 2008 ______ _____ _____ _____ _______ _______ STATEMENT OF CHANGES IN NET EQUITY for the six months to 30 September 2007 (unaudited) Share Share Special Retained Capital Premium Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 Balance at 31 March 2007 27 1,680 24,292 5,680 31,679 Net profit for the period - - - 2,093 2,093 Ordinary shares issued 1 1,002 - - 1,003 Cost of Ordinary shares issued - (10) - - (10) C shares issued 242 24,008 - - 24,250 Cost of C shares issued - (601) - - (601) ______ _____ _____ _______ _______ Balance at 30 September 2007 270 26,079 24,292 7,773 58,414 ______ _____ _____ _______ _______ CASH FLOW STATEMENT for the six months to 30 September 2008 (unaudited) Six months to Six months to 30 September 2008 30 September 2007 £'000 £'000 Cash flows from operating activities Investment income received 465 108 Deposit interest received 71 172 Investment management fee paid (192) (210) Realised gain / (loss) on foreign currency 37 (273) Investment performance fee paid - (207) Other cash expenses (231) (206) _______ _______ Cash generated from operations 150 (616) Interest paid (3) - Taxation (29) (9) _______ _______ Net cash inflow / (outflow) from operating activities 118 (625) _______ _______ Cash flows from investing activities Purchases of investments (15,109) (27,833) Sales of investments 19,488 5,211 _______ _______ Net cash inflow / (outflow) from investing 4,379 (22,622) activities _______ _______ Cash flows from financing activities Shares issued 153 25,253 Share issue expenses paid - (611) Shares cancelled (1,436) - _______ _______ Net cash (outflow) / inflow from financing (1,283) 24,642 activities _______ _______ Increase in cash 3,214 1,395 Cash and cash equivalents at start of period 362 2,009 _______ _______ Cash and cash equivalents at end of period 3,576 3,404 _______ _______ NOTES TO THE FINANCIAL STATEMENTS 1 Accounting Policies The accounts comprise the unaudited financial results of the Company for the six month period from 1 April 2008 to 30 September 2008. The accounts are presented in pounds sterling, as this is the functional currency of the Company. The accounts have been prepared in accordance with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB), and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB (IFRIC). A summary of the principal accounting policies, all of which have been applied consistently throughout the period, is set out below: Revenue, Expenses and Interest Payable Revenue includes dividends from investments quoted ex-dividend on or before the balance sheet date. Income on fixed income securities is recognised on a time apportionment basis according to the period for which these investments are held. Deposit and other interest receivable, expenses and interest payable are accounted for on an accruals basis. An analysis of retained earnings broken down into revenue (distributable) items and capital (non-distributable) items is given in note 5. In arriving at this breakdown, expenses have been presented as revenue items except as follows: · expenses which are incidental to the purchase or sale of an investment are included in the cost or deducted from the proceeds of the investment (see Note 4). · any performance fees payable are allocated wholly to capital, reflecting the fact that, although they are calculated on a total return basis, they are expected to be attributable largely, if not wholly, to capital performance. Investments 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 income statement. The fair value of listed investments is based on their quoted bid market price at the balance sheet date without any deduction for estimated future selling costs. 2 Losses or Gains on Investments Six months to Six months to 30 September 2008 30 September 2007 £'000 £'000 Net (loss) / gain realised on sale of investments (1,540) 996 Movement in unrealised gains (4,936) 1,821 ________ ________ (Loss) / gain on investments (6,476) 2,817 ======== ======== 3 Earnings per Ordinary share The earnings per Ordinary share figure is based on the net loss for the six months of £4,466,000 (six months to 30 September 2007:Gain £1,549,000) and on 45,595,272 (six months to 30 September 2007:27,504,146) Ordinary shares, 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 Six months to 30 September 2008 30 September 2007 £'000 £'000 Net revenue profit / (loss) 37 (89) Net capital (loss) / profit (4,503) 1,638 ________ ________ Net total (loss) / profit (4,466) 1,549 ======== ======== Weighted average number of Ordinary shares in issue during the period 45,595,272 27,504,146 pence pence Revenue earnings per Ordinary share 0.08 (0.32) Capital earnings per Ordinary share (9.88) 5.95 ________ ________ Total earnings per Ordinary share (9.80) 5.63 ======== ======== 4. Transaction Costs The following transaction costs were incurred during the period: Six months to Six months to 30 September 2008 30 September 2007 £'000 £'000 Purchases 18 63 Sales 31 8 ________ ________ 49 71 ======== ======== 5 Retained earnings The table below shows the movement in the retained earnings analysed between revenue and capital items. Revenue Capital Total £'000 £'000 £'000 At 31 March 2008 (133) 2,230 2,097 Movement during the period: Net loss for the period 37 (4,503) (4,466) Share repurchase - (1,436) (1,436) ________ ________ ________ At 30 September 2008 (96) (3,709) (3,805) ======== ======== ======== 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 £46,985,000 (2007: £34,220,000) and on 44,992,821 (2007: 27,540,428) Ordinary shares, being the number of Ordinary shares in issue at the period end. The diluted Net Asset Value per Ordinary share is based on the assumption that the conversion of all 8,323,834 Warrants in issue at the period end are exercised 7 Related Parties Mr Hillgarth is a Director of Jupiter Investment Management Group Limited whose subsidiaries Jupiter Asset Management Limited and Jupiter Administration Services Limited receive investment management and administration fees pursuant to the agreements described below. Jupiter Asset Management Limited is contracted to provide investment management services to the Company (subject to termination by not less than twelve months' notice by either party) for a fee payable monthly, of one twelfth of 0.85 per cent. of the net assets of the Company after deduction of the value of any Jupiter managed investments. Jupiter Asset Management Limited is also entitled to an investment performance fee which is based on the outperformance of the Net Asset Value per Ordinary share over the total return on the Benchmark Index in an accounting year. Any performance fee payable will equal the time weighted average number of Ordinary shares in issue during the period multiplied by 15 per cent. of the amount by which the increase in the Net Asset Value per Ordinary share (plus any dividends per Ordinary share paid or payable and any accrual for unpaid performance fees for the period) exceeds the total return on the Benchmark Index. The performance fee will only be payable if the Net Asset Value per Ordinary share (adjusted as described above) exceeds the highest of (i) the Net Asset Value per Ordinary share on the last business day of the previous performance period; (ii) the Net Asset Value per Ordinary share on the last day of a performance period in respect of which a performance fee was last paid: and (iii) 100p. The total amount of management fees and any performance fee payable in respect of one accounting period is limited to 1.75 per cent. of the Net Asset Value of the Company on the last business day of the relevant performance period. On inception, the Benchmark Index comprised 30 per cent. of the Russell 2500 Growth Index (the Winslow benchmark index) and 70 per cent. of the FTSE Global Small Cap ex US Index. The proportion of the Winslow benchmark index comprised in the Benchmark Index is adjusted on the first business day of each month to reflect the proportion of the Company's assets on the last business day of the previous month which were allocated by the Investment Manager to the Investment Advisor. Jupiter Administration Services Limited is contracted to provide secretarial, accounting and administrative services to the Company for an annual fee of £75,469 (exclusive of Value Added Tax) adjusted each year in line with the Consumer Prices Index which is payable half yearly in advance. 8 Risks and Uncertainties The risks to the Company are foreign currency movements, market price movements, interest rates, use of derivatives, liquidity risk, credit risk, the discount to Net Asset Value and loss of investment trust status. A detailed explanation of the Risks and Uncertainties facing the Company can be found in note 11 on pages 48 to 51 of the Company's published report and accounts for the year to 31 March 2008. 9 Material Events Since 31 March 2008 On 22 October 2008 the Company recognised the recovery from HM Revenue & Customs of £93,000 in respect of VAT paid on fees due to the Investment Manager. Payment of that sum has now been received by the Company. Approximately 69 per cent. of this recovery has been accounted for in the Company's revenue account with the balance carried to capital. Since 31 March 2008 there have been the following buy-backs under the facility granted to the Board by Shareholders at the last Annual General Meeting: Date Amount Purchased Price Paid (p) Cancellation/Holding in Treasury 18 April 2008 360,000 108.5 Treasury 3 July 2008 250,000 103.5 cancellation 15 July 2008 250,000 101.25 cancellation 28 August 2008 500,000 104.75 cancellation On 13 August 2008 152,790 warrants were converted to Ordinary shares. The Board is not aware of any other significant events or transactions which have occurred between 31 March 2008 and the date of publication of this interim management statement which would have a material impact on the financial position or the performance of the Company. The interim report will be sent to all registered shareholders and copies may be obtained from the registered office of the Company at 1 Grosvenor Place, London, SW1X 7JJ. The interim report for the 6 months ended 30 September 2008 has not been reviewed by the Company's auditors. By order of the Board Jupiter Asset Management Limited Secretaries Enquiries: Richard Pavry Jupiter Asset Management Limited 020 7412 0703

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