Annual Financial Report

RNS Number : 9671S

Jupiter Green Investment Trust Plc

28 June 2018

 

Jupiter Green Investment Trust plc (the 'Company')

Annual Financial Results for the year ended 31 March 2018

This announcement contains regulated information

Financial Highlights for the year ended 31 March 2018

Capital Performance
	As at	As at
	31.03.18	31.03.17
Total assets less current liabilities (£'000)	40,147	38,509
Ordinary Share Performance
	As at	As at
	31.03.18	31.03.17	% change
Mid market price (p)	186.50	173.75	+7.3
Undiluted net asset value per Ordinary share (p)^^ (with dividends added back)	192.51	184.33	+4.4
Diluted net asset value per Ordinary share (p)^ (with dividends added back)	191.88	181.43	+5.8
MSCI World Small Cap Net Total Return Index	337.83	326.11	+3.6
Discount to net asset value (%)	2.51	5.74	-
Ongoing charges ratio (%) excluding finance costs	1.48	1.58	-6.3

^ 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 2018 subscription rights.

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*	+12.4
2008	52,734	114.14	-	-3.9**	-12.7
2009	33,809	76.86	-	-32.7	-21.3
2010	43,590	106.65	-	+38.8	+63.0
2011	41,085	120.49	0.40	+13.0	+17.8
2012	36,181	108.49	0.60	-10.0	-2.4
2013	37,571	124.42	1.20	+14.7	+20.3
2014	38,142	145.00	1.10	+16.5	+12.4
2015	38,545	152.35	0.55	+5.1	+16.3
2016	33,418	150.79	0.65	-1.0	-0.9
2017	38,509	184.33	1.20	+22.2	+35.2
2018	40,147	191.31	1.30†	+3.8	+3.6

*   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.

† Subject to approval by shareholders at the Annual General Meeting to be held on 4 September 2018.

Strategic Report

Chairman's Statement

Dear fellow shareholders

It is with pleasure that I present the Annual Report for Jupiter Green Investment Trust PLC for the year to 31 March 2018. As at 31 March your company had total assets under management of £40m.

Stock markets made modest gains during the twelve months under review. The global economy continued to grow relatively robustly. Labour markets tightened across the West and inflation returned. The Federal Reserve increased interest rates to 1.5 per cent. in three 0.25 per cent. steps, while the Bank of England lifted rates by 0.25 per cent., the UK's first rate rise since the financial crisis.

For most of the period stock markets rose gradually towards record levels. Tax reforms in the US at the end of December provided an additional boost to sentiment. Towards the end of the period, however, stock markets hit an air pocket and fell sharply. Fears about rising interest rates and the prospects of a trade war after the US introduced a series of tariffs weighed on sentiment. Although markets had regained composure in the final days of the review period, volatility looked as though it had returned after a notable absence in 2017.

Investment performance

During the twelve months to 31 March the total return on the diluted Net Asset Value of your Company's Ordinary shares (being the Net Asset Value that would apply to the Ordinary shares in the event that all Ordinary shareholders exercise their annual subscription rights) was 5.8 per cent (with dividends added back). This compares with an increase in the Company's benchmark index, the MSCI World Small Cap Net Total Return Index of 3.6 per cent and total return on the middle market price of the Company's shares of 7.3 per cent during the same period.

The background to the performance of your Company over the course of the financial year is discussed in detail by your portfolio manager, Charlie Thomas, in his Investment Adviser's report overleaf and I will not seek to cover the same ground here.

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, the Board proposes that the Company should move from the current policy of paying the minimum dividend necessary in order to maintain its beneficial investment trust status to paying a higher, semi-annual dividend which it is anticipated would equate to approximately twice the level of the divided payable in relation to the current financial year and which it is hoped could be increased progressively over future years.* This proposed change in dividend policy will not be accompanied by a change in the investment policy of the Company, but it is proposed that the investment objective of the Company will be amended to include the objective of income generation. This change will be put to shareholders for approval at the forthcoming Annual General Meeting.

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

In relation to the year ended 31 March 2018, a resolution to declare a final dividend of 1.30p per share (2017: 1.20p) will be proposed at the Company's Annual General Meeting. Subject to shareholder approval, the final dividend will be paid on 5 October 2018 to those shareholders on the Register of Members on 14 September 2018. An interim dividend in relation to the new financial year will, if the change in dividend policy is approved, be declared in January for payment in March 2019.

At the Annual General Meeting of shareholders to be held on 4 September 2018 a resolution will also be proposed 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, it considers it appropriate to seek to smooth the Company's dividend yield over the short to medium term. However, the Company intends to maintain a longer-term dividend that is supported by revenues arising from the investment performance of the Company.

Reduction in our running costs

I am pleased to report that the Company and the Manager have agreed to remove the existing performance fee arrangements with retrospective effect from the beginning of the current financial year. Furthermore, the basis for calculation of the management fee charged to the Company has also been adjusted downwards, with effect from 1 June 2018, from 0.75 per cent. of net assets per annum to a tiered fee amounting to 0.70 per cent. of net assets up to £150 million, reducing to 0.60 per cent. for net assets over £150 million and up to £250 million, and reducing

further to 0.50 per cent. for net assets in excess of £250 million.

These changes are intended to ensure that the Company's charges are competitive with those for comparable investment trusts and also the institutional unit class of the Jupiter Ecology Fund which is also managed by Charlie Thomas.

With retrospective effect to the beginning of the current accounting period on 1 April 2018 the proportion of the investment management fee and any financing costs under the Company's loan facility that are treated as a capital expense in the Company's reports and accounts will be reduced from 90 per cent. to 75 per cent., so as to bring its accounting policy into line with that of comparable investment trusts.

The Manager is treated as a related party to the Company in accordance with the Listing Rules. Accordingly, the amendments to the Manager's fee arrangements constitutes a related party transaction under Chapter 11 of the Listing Rules. It is classified as a smaller related party transaction and so shareholder approval is not required for the amendments to the Manager's fees.

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 Manager 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 2018 on the basis of one new Ordinary share for every ten held. The subscription price was 184.33p. Subscriptions were received from shareholders resulting in the issue of 130,998 Ordinary shares from Treasury on this occasion.

During the 12 months to 31 March 2018, the Company issued 554,321 new Ordinary shares and repurchased a total of 460,000 shares. The discount to NAV per share was 2.51 per cent. at the end of the year compared to 5.74 per cent. on 31 March 2017. As at 31 May 2018 the price stood at a discount of 5.53 per cent. Shareholders should note there can be no guarantee that any discount control mechanism implemented by the Board will necessarily 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, will 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. It is intended that the use of this facility should be a clear differentiator for the Company relative to the open-ended Jupiter Ecology Fund, which is not permitted to apply any structural gearing to its portfolio for under the applicable rules of the Financial Conduct Authority. As at 31 March 2018 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 maximum that has been set is 20 per cent.of the Company's total assets. Charlie Thomas will be encouraged to use the gearing facility and the Company's cash reserves in order to enhance returns for shareholders.

Annual General Meeting

The Company's Annual General Meeting will be held on Tuesday 4 September 2018 at 11:45 a.m. at the offices of Jupiter Asset Management Limited, The Zig Zag Building, 70 Victoria Street, London SW1E 6SQ. Notice of the Annual General Meeting, containing full details of the business to be conducted at the meeting, is included with the annual report.

In addition to the formal business, the Fund Manager 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 Annual General Meeting as it provides shareholders with an opportunity to ask questions of the Board and Investment Adviser.

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 these interim and the Company's full 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

Investing in environmental solutions has continued to grow in importance and the Trust is actively investing in businesses which are tackling some of the world's most pressing problems. Among these are the environmental pressures caused by the startling growth in the middle classes in the developing world, especially in Asia. By 2030, richer lifestyles in Asia are expected to push food and energy demand up by 50 per cent. each and water demand up by 40 per cent.. The ways to address the challenge of a richer lifestyle are not always obvious. In China, for example, where water pollution and scarcity are considerable problems, investing in renewable energy alone can help address this problem as this form of energy requires far less water than traditional thermal power.

Investments in sustainable consumption, energy efficient transport, pollutions control and testing, as well as water infrastructure, are among the several other ways the Trust has exposure to businesses providing solutions to problems associated with changing demographics and resource scarcity. Moreover, for the investment team, many of whom have postgraduate training in environmental technology, it is important to look at longer-term developments and breakthroughs. Most people would have heard of silicon-based solar technology, which accounts for about 85 per cent. of current solar capacity, or thin-film solar cells. The investment team, however, is currently keeping in touch with 27 different technologies in this area.

The opportunities for environmental investing are vast and, in many cases, innovation has only just begun.

Michael Naylor

Chairman

28 June 2018

Investment Adviser's Review

Market review

Global stock markets recorded a modest return in the year under review. Conditions were calm for most of the period. Many major stock indices rose to new highs in 2017 with very few hesitations. In fact, the S&P500 Index had its longest monthly winning streak in history with 14 consecutive gains. A marked improvement to the global economy, particularly in Europe, was a key driver behind the positive sentiment. This outweighed concerns about ongoing Brexit uncertainties, tensions between the US and North Korea, and rising interest rates. The announcement of business-friendly tax reforms in the US provided a further boost to markets in late December and the S&P500 Index climbed to yet another all-time high on the 26th of January this year. While many pundits were wary about a potential pullback, when it came the ferocity of the downturn was still a surprise; the S&P500 Index lost some 10% in the following nine trading days. The increase in volatility had two main causes. The first was concern about rising inflation and interest rates in the US. The second was the growing risk of a trade war. After introducing tariffs on steel and aluminium imports, the Trump Administration announced $50 billion worth of punitive tariffs on Chinese industrial imports, leading to the threat of reprisals from officials in Beijing. While market conditions had settled somewhat by the end of the period, sentiment was still anxious.

From an environmental perspective, although President Trump's decision to withdraw the US from the 2015 Paris climate agreement was a notable disappointment, if not a surprise, politicians and businesses in the US and elsewhere in the world were quick to condemn the move. The EU and China have since reconfirmed their commitments to the Paris goals and sought to fill the leadership vacuum left by the US and Trump's decision has spurred a voluntary movement in the US called "America's Pledge", under which a variety of cities, states and businesses have committed to the Paris accord.

Company review

It was another encouraging year for environmental investing. Several of the portfolio's main themes benefit from the gradual but persistent shift in political and economic thinking when it comes to environmental issues. For example, China's decision to ban imports of waste plastics, combined with distressing images shown on the BBC's wildlife documentary series Blue Planet II, helped to push the issue of plastic waste to the top of the political agenda. The UK government sent a delegation to Norway to assess that country's bottle recycling programme and has since announced intentions for its own scheme. From this theme, Tomra, which develops and manufactures reverse-vending machines, which take plastic bottles for cash, was the top performer for the Trust over the period. This Norwegian company recently rolled out bottle collection machines in Australia and has been benefiting from the increased sense of urgency around plastic recycling. Vehicle emission testing was another interesting area of growth. After the Volkswagen scandal of late 2015, vehicle emission testing has been of far greater concern for regulators and the public at large. This has fed demand for the services of Japanese automotive test-system business Horiba, a specialist at real-world emissions testing that was a top performing holding during the period.

Holdings from the renewable energy sector had mixed fortunes. US company First Solar impressed the market with a sharp rise in earnings, along with news that its production backlog had grown to nearly two years. This US-based solar company experienced strong domestic demand because of uncertainty surrounding potential trade tariffs for imported solar panels and parts which would force up prices for local developers. In contrast, companies operating in the wind power sector had a tougher year. In this sector, auction-based pricing has led to a sharp fall in costs, which is great for consumers and longer-term demand, but is putting pressure on margins. Vestas Wind Systems, which is a key holding in the Trust, suffered due to these pressures. The stock lost ground after warning the market about pricing pressures across its end markets and the uncertainty surrounding the phase-out of the production tax credit in the US.

Other highlights included water solutions business Xylem, which reported better-than-expected results, while WS Atkins, Pure Technology and Whole Foods Market added value after receiving takeover bids.

We retained a larger-than-usual cash balance during the year as we were concerned about high valuations across the investment theme. This was built from the proceeds of the takeovers, and by taking some profits in Cranswick, Vestas and LKQ. As the period progressed, we put some of this to work by adding incrementally to a range of holdings in the Trust during moments of market weakness. We also established several new positions, including in Brambles, an Australian business that specialises in solutions for the circular economy: reusable pallets, crates and containers. The company has an impressive new management team, which is seeking to refocus the business by divesting of non-core assets. Other additions included waste-to-energy company China Everbright and Italian cable manufacturer Prysmian which is exposed to growth in the off-shore wind sector. Elsewhere, we sold out of China Longyuan Power in favour of Huaneng Renewables which is better placed to benefit from growth in the wind power sector in eastern China where grid integration issues have been less challenging.

Outlook

We remain somewhat cautious about the near-term outlook. Tighter monetary policy in the US and Donald Trump's protectionist stance continue to unsettle markets, while stock valuations in some areas of the market appear stretched. We are therefore retaining a larger-than usual cash balance to participate in potential opportunities the volatile conditions might present.

There are reasons for optimism, however. The global economy appears to be on a relatively firm footing and solutions to environmental and sustainability challenges are increasingly underpinning long-term economic growth. To our minds, the progress being achieved by our key themes is a clear signal of the growing importance of environmental and sustainable technologies in the global economy, despite the lack of support from the Trump Administration, and speaks of the long-term opportunity presented by the wider investment theme. The sea change in global power markets, where renewable energy is now firmly established, is one example of the sort of impact these solutions are having on the economy. A similar upheaval appears to be occurring within the global transport sector where the shift away from traditional vehicles is gathering pace. Equally, growing concern about the environmental and health impacts of plastics should, in our view, add momentum to the development of materials and new processes in this area. While these changes can be exciting, we must proceed with due care. To this end, having a flexible, multi-thematic approach helps us to avoid hyped investment themes and focus our attention on businesses with genuine long-term growth prospects.

Charlie Thomas

Fund Manager

Jupiter Asset Management Limited

28 June 2018

Investment Portfolio as at 31 March 2018

					31 March 2018				31 March 2017
	Country		Market value		Percentage		Market value		Percentage
Company	of Listing		£'000		of Portfolio		£'000		of Portfolio
AO Smith	United States		1,658		4.4		1,495		3.9
Tomra Systems	Norway		1,494		4.0		1,193		3.1
EMCOR Group	United States		1,434		3.8		1,299		3.4
Xylem	United States		1,400		3.7		1,026		2.7
Wabtec	United States		1,168		3.1		1,587		4.1
Cranswick	United Kingdom		1,075		2.9		1,253		3.3
LKQ	United States		1,032		2.8		1,244		3.2
Horiba	Japan		971		2.6		758		2.0
Valmont Industries	United States		970		2.6		1,156		3.0
Toray Industries	Japan		918		2.5		970		2.5
Sensata Technologies	United Kingdom		879		2.4		832		2.2
Azbil	Japan		869		2.3		702		1.8
Johnson Matthey	United Kingdom		867		2.3		878		2.3
National Express Group	United Kingdom		845		2.3		786		2.1
RPS Group	United Kingdom		836		2.2		808		2.1
Itron	United States		827		2.2		787		2.1
Vestas Wind Systems	Denmark		784		2.1		1,321		3.4
BorgWarner	United States		732		2.0		683		1.8
Schneider Electric	France		710		1.9		666		1.7
Miura	Japan		696		1.9		392		1.0
Veolia Environment	France		671		1.8		528		1.4
Daiseki	Japan		668		1.8		555		1.4
United Natural Foods	United States		623		1.7		703		1.8
Renewi	United Kingdom		600		1.6		761		2.0
Orsted	Denmark		579		1.5		-		-
First Solar	United States		576		1.5		247		0.6
Regal Beloit	United States		569		1.5		658		1.7
Andritz	Austria		555		1.5		562		1.5
Clean Harbors	United States		532		1.4		563		1.5
Mayr Melnhof Karton	Austria		532		1.4		458		1.2
SKF 'B'	Sweden		528		1.4		576		1.5
Novozymes 'B'	Denmark		523		1.4		452		1.2
Covanta Holding	United States		522		1.4		633		1.7
Firstgroup	United Kingdom		513		1.4		824		2.1
Shimano	Japan		511		1.4		583		1.5
Infineon Technologies	Germany		509		1.4		438		1.1
Watts Water Technologies 'A'	United States		508		1.4		458		1.2
NSK	Japan		493		1.3		597		1.6
Stantec	Canada		475		1.2		566		1.5
Prysmian	Italy		470		1.3		-		-
East Japan Railway	Japan		457		1.2		480		1.3
Huaneng Renewables 'H'	China		455		1.2		-		-
Casella Waste Systems 'A'	United States		451		1.2		366		1.0
Hollysys Automation Technologies	Virgin Islands, British		405		1.1		311		0.8
Ricardo	United Kingdom		402		1.1		379		1.0
Keller Group	United Kingdom		390		1.0		408		1.1
Jupiter Global Ecology Diversified Fund Class I GBP Q Inc Dist HSC*	Luxembourg		344		0.9		345		0.9
Suez	France		310		0.8		380		1.0
Fjord	Norway		308		0.8		-		-
Brambles	Australia		300		0.8		-		-
Lenzing	Austria		289		0.8		235		0.6
Stericycle	United States		284		0.8		-		-
Innogy	Germany		278		0.7		249		0.6
Salmar	Norway		257		0.7		-		-
Varta	United States		231		0.6		-		-
Vossloh	Germany		208		0.6		297		0.8
China International Everbright	Hong Kong		200		0.5		-		-
Salmones Camanchaca	Chile		176		0.5		-		-
Atlantis Resources	Singapore		163		0.4		117		0.3
Augean	United Kingdom		155		0.4		298		0.8
VA-Q-TEC	Germany		116		0.3		220		0.6
SunOpta	Canada		96		0.3		200		0.5
TOTAL		37,397		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 investment companies

As at 31 March 2018, 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 per cent., 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 per cent. limit, it is the Directors' current intention that the Company invests not more than 5 per cent., 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 2018

Equities	United States of America	United Kingdom	Japan	Norway		Denmark	Other	Totals 2018	Totals 2017
	%	%	%	%		%	%	%	%
Basic Materials	-	2.3	2.5	-		-	0.8	5.6	5.4
Chemicals	-	2.3	2.5	-		-	0.8	5.6	5.4
Consumer Goods	5.4	2.9	2.7	0.7		-	0.8	12.5	11.9
Food Producers	-	2.9	-	0.7		-	0.8	4.4	3.8
Household Goods & Home Construction	0.6	-	-	-		-	-	0.6	-
Automobiles & Parts	4.8	-	1.3	-		-	-	6.1	6.6
Leisure Goods	-	-	1.4	-		-	-	1.4	1.5
Consumer Services	1.7	3.7	1.2	0.8		-	-	7.4	2.7
Travel & Leisure	-	3.7	1.2	0.8		-	-	5.7	-
Food & Drug Retailers	1.7	-	-	-		-	-	1.7	2.7
Financials	-	-	-	-		-	0.9	0.9	0.9
Global Equity Funds	-	-	-	-		-	0.9	0.9	0.9
Health Care	-	-	-	-		1.4	-	1.4	1.2
Pharmaceuticals & Biotechnology	-	-	-	-		1.4	-	1.4	1.2
Industrials	27.6	8.7	8.5	4.0		-	12.0	60.8	63.1
Industrial Engineering	6.8	-	1.9	4.0		-	3.5	16.2	14.7
Support Services	4.8	5.3	1.8	-		-	1.7	13.6	14.7
Construction & Materials	12.3	1.0	-	-		-	-	13.3	13.4
Electronic & Electrical Equipment	3.7	2.4	4.8	-		-	4.3	15.2	13.0
General Industrials	-	-	-	-		-	2.5	2.5	1.8
Travel & Leisure	-	-	-	-		-	-	-	5.5
Technology	-	-	-	-		-	1.4	1.4	1.1
Technology Hardware & Equipment	-	-	-	-	-		1.4	1.4	1.1
Oil & Gas	1.5	-	-	-	2.1		1.6	5.2	7.5
Alternative Energy	1.5	-	-	-	2.1		1.6	5.2	7.5
Uitilities	-	-	-	-	1.5		3.3	4.8	6.2
Gas, Water & Multiutilities	-	-	-	-	1.5		3.3	4.8	4.0
Electricity	-	-	-	-	-		-	-	2.2
Totals 2018	36.2	17.6	14.9	5.5	5.0		20.8	100	100
Totals 2017	38.4	18.5	-	-	-		43.1	100	100

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.

There has been no significant change in the activities of the Company during the year to 31 March 2018 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 generate long-term capital growth for Ordinary shareholders through a diverse portfolio of companies providing environmental solutions.

At the Annual General Meeting convened for 4 September 2018, a resolution will be put to shareholders to amend the investment objective of the Company.

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. However, up to 5 per cent. of the Company's Total Assets (at the time of such investment) may be invested in unlisted securities.

The following investment restrictions are observed:

•     no more than 15 per cent. 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 per cent., 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 per cent. limit, it is the Directors' current intention that the Company invests not more than 5 per cent., 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

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, the Board proposes that the Company should move from the current policy of paying the minimum dividend necessary in order to maintain its beneficial investment trust status to paying a higher, semi-annual dividend which it is anticipated would equate to approximately twice the level of the dividend payable in relation to the current financial year and which it is hoped could be increased progressively over future years. This policy will be put to shareholders for approval at the forthcoming Annual General Meeting.

At the Annual General Meeting of shareholders to be held on 4 September 2018 a resolution will also be proposed 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 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 Board intends to utilise such reserves where, without limitation, it considers it appropriate to seek to smooth the Company's dividend yield over the short to medium term. However, the Company intends to maintain a longer-term dividend that is supported by revenues arising from the investment performance of the Company over the course of an approximate seven year rolling market cycle.

The Company and the Manager have agreed to remove the existing performance fee arrangements with retrospective effect from the beginning of the current financial year. Furthermore, the basis for calculation of the management fee charged to the Company has also been adjusted downwards, with effect from 1 June 2018, from 0.75 per cent. of net assets per annum to a tiered fee amounting to 0.70 per cent. of net assets up to £150 million, reducing to 0.60 per cent. for net assets over £150 million and up to £250 million, and reducing further to 0.50 per cent. for net assets in excess of £250 million.

Benchmark Index

The Company's Benchmark Index is the MSCI World Small Cap Net 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 long-term capital growth 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.

As part of its assessment, the Board has noted that shareholders will be required to vote on the continuation of the Company at the 2020 AGM.

Gearing

Gearing is defined as the ratio of a company's total assets to its net assets, 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 per cent. 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.

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 460,000 Ordinary shares for holding in Treasury during the year under review at an average discount of 5.95 per cent.

Under the 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 2019 (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.

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.

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 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 FCA's 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.

Credit and Counterparty Risk - The failure of the counterparty to a transaction to discharge its obligations under that transaction could result in the Company suffering a loss.

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.

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

As at 31 March 2018, the Board comprises of one female and two 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 Jupiter Unit Trust Managers Limited ('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 and the level of such yield is expected to vary with the sectors and geographical regions to which the Company's portfolio is exposed at any given time. However, substantially all distributable revenues that are generated from the Company's investment portfolio are expected to be paid out in the form of dividends.

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, the Directors will propose Resolution 9 as an ordinary resolution for the continuation of the Company in its current form at the AGM of the Company to be held on 5 September 2017. 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 Companies shares trade overtime where in normal market conditions, the Company's share price does not materially vary from its NAV 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 191.31 as at 29 March 2018. The next subscription date will be 31 March 2019. A reminder will be sent to shareholders prior to the subscription date.

For and on behalf of the Board

Michael Naylor

Chairman

28 June 2018

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 Auditor does not include consideration of the maintenance and integrity of the website and accordingly the Auditor 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

28 June 2018

Statement of Comprehensive Income for the year ended 31 March 2018

			Year ended 31 March 2018			Year ended 31 March 2017
			Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000
Gain on investments at
fair value through profit or loss			-	2,168	2,168	-	7,184	7,184
Foreign exchange loss			-	(177)	(177)	-	-	-
Income			608	-	608	594	-	594
Total income			608	1,991	2,599	594	7,184	7,778
Investment management fee			(31)	(273)	(304)	(30)	(268)	(298)
Investment performance fee			-	(59)	(59)	-	-	-
Other expenses			(291)	-	(291)	(266)	-	(266)
Total expenses			(322)	(332)	(654)	(296)	(268)	(564)
Net return before finance
costs and tax			286	1,659	1,945	298	6,916	7,214
Finance costs			(1)	(8)	(9)	(9)	-	(9)
Return on ordinary
activities before taxation			285	1,651	1,936	289	6,916	7,205
Taxation			(47)	-	(47)	(32)	-	(32)
Net return after taxation			238	1,651	1,889	257	6,916	7,173
Return per Ordinary share			1.13p	7.81p	8.94p	1.21p	32.34p	33.55p
Diluted return per Ordinary share			1.13p	7.81p	8.94p	1.20p	32.23p	33.43p

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

No operations were acquired or discontinued during the year.

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

Statement of Financial Position as at 31 March 2018

	2018	As restated 2017
	£'000	£'000
Non current assets
Investments held at fair value through profit or loss	37,397	38,352
Current assets
Prepayments and accrued income	123	130
Cash and cash equivalents	2,785	110
	2,908	240
Total assets	40,305	38,592
Current liabilities
Other payables	(158)	(83)
Total assets less current liabilities	40,147	38,509
Capital and reserves
Called up share capital	34	34
Share premium	29,630	29,488
Redemption reserve	239	239
Special reserve	24,292	24,292
Retained earnings*	(14,048)	(15,544)
Total equity shareholders' funds	40,147	38,509
Net Asset Value per Ordinary share	191.31p	184.33p
Diluted Net Asset Value per Ordinary share	190.68p	181.43p

* Under the Company's Articles of Association, dividends are only distributed from the revenue reserve.

Approved by the Board of Directors and authorised for issue on 28 June 2018 and signed on its behalf by:

Michael Naylor

Chairman

Company Registration Number 05780006

Statement of Changes in Equity for the year ended 31 March 2018

	Share	As restated Share	Special Redemption		As restated 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

	Share	As restated Share	Special Redemption		As restated Retained
For the year ended	Capital	Premium	Reserve	Reserve	Earnings	Total
31 March 2017	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2016	34	29,481	24,292	239	(20,628)	33,418
Net gain for the year	-	-	-	-	7,173	7,173
Dividends paid	-	-	-	-	(138)	(138)
Ordinary shares reissued from Treasury	-	7	-	-	27	34
Ordinary shares repurchased	-	-	-	-	(1,978)	(1,978)
Balance at 31 March 2017	34	29,488	24,292	239	(15,544)	38,509

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

Cash Flow Statement for the year ended 31 March 2018

	2018	2017
	£'000	£'000
Cash flows from operating activities
Investment income received (gross)	611	557
Investment management fee paid	(303)	(343)
Other cash expenses	(272)	(266)
Net cash inflow/(outflow) from operating activities before taxation	36	(52)
Interest paid	(9)	(9)
Taxation	(47)	(32)
Net cash outflow from operating activities	(20)	(93)
Net cash flows from investing activities
Purchases of investments	(3,381)	(2,904)
Sale of investments	6,504	4,622
Net cash inflow from investing activities	3,123	1,718
Cash flows from financing activities
Shares repurchased	(834)	(1,978)
Shares reissued from Treasury	836	34
Equity dividends paid	(253)	(138)
Net cash outflow from financing activities	(251)	(2,082)
Increase/(decrease) in cash	2,852	(457)
Change in cash and cash equivalents
Cash and cash equivalents at start of year	110	567
Realised loss on foreign currency	(177)	-
Cash and cash equivalents at end of year	2,785	110

Notes to the accounts

1.   Accounting policies

The Accounts comprise the financial results of the Company for the year to 31 March 2018. 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 28 June 2018. 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) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business.

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.

(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.

An analysis of retained earnings broken down into revenue (distributable) items and capital (non-distributable) items is given in Note 17 of the full Annual report document. Investment Management fees are charged 90 per cent. to capital and 10 per cent. to revenue. All other operational costs including administration expenses and finance costs (but with the exception of any investment performance fees which are charged to capital) 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. They have been published by IASB but are not yet effective for year ended 31 March 2018:

International Accounting Standards (IAS/IFRS's)

IFRS 9 Financial Investments Classification and Measurement

Effective date: 1 January 2018

The Directors anticipate that the adoption of the above standards and interpretations in future periods will have no material impact on the financial statements of the Company. The Company intends to adopt the standards in the reporting period when they become effective.

2.   Significant accounting judgements, estimates and assumptions

Management have not applied any accounting judgements to this set of Financial Statements or those of the prior period.

3.   Income

						Year	Year
						ended	ended
						31 March	31 March
						2018	2017
						£'000	£'000
Income from investments
Dividends from UK companies						153	167
Dividends from overseas companies						455	427
Total income						608	594

4.   Investment management and performance fee

			Year ended 31 March 2018			Year ended 31 March 2017
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Investment management fee		31	273	304	30	268	298
Investment performance fee		-	59	59	-	-	-
		31	332	363	30	268	298

90 per cent.of the investment management fee is treated as a capital expense.

5.     Earnings per Ordinary share

The earnings per Ordinary share figure is based on the net gain for the year of £1,889,000 (2017: net gain £7,173,000) and on 21,132,431 (2017: 21,382,221) 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
		2018	2017
		£'000	£'000
Net revenue profit		238	257
Net capital profit		1,651	6,916
Net total profit		1,889	7,173
Weighted average number of Ordinary shares in issue during the year used for the purposes of the undiluted calculation
		21,132,431	21,382,221
Weighted average number of Ordinary shares in issue during the year used for the purposes of the diluted calculation
		21,132,431	21,461,431
Undiluted
Revenue earnings per Ordinary share		1.13p	1.21p
Capital earnings per Ordinary share		7.81p	32.34p
Total earnings per Ordinary share		8.94p	33.55p
Diluted
Revenue earnings per Ordinary share		1.13p	1.20p
Capital earnings per Ordinary share		7.81p	32.23p
Total earnings per Ordinary share		8.94p	33.43p

Any shares to be issued under the subscription rules were anti-dilutive for the years ended 31 March 2017 and 31 March 2018.

6.     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 fee is payable monthly being one twelfth of 0.85 per cent. up to 31 December 2016 and then 0.75 per cent. With effect from 1 January 2017 of the net assets of the Company after deduction of the value of any Jupiter managed investments.

The management fee payable to JUTM for the period 1 April 2017 to 31 March 2018 was £304,270 (2017: £297,731) with £24,914 (2017: £23,853) outstanding at year end.

JUTM 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. A performance fee of £59,593 was payable for the year ended 31 March 2018 (2017: £Nil).

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 £344,000 (31 March 2017: £345,000). No investment management fee is payable by the Company to JAM 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 Fund Management PLC, receives fees as investment manager or investment adviser.

7.   Contingent liabilities and capital commitments

There were no contingent liabilities or capital commitments at 31 March 2018 (2017: Nil).

8.   Post balance sheet events

Since the year end (1 April to 26 June 2018) an additional 10,000 Ordinary shares were repurchased to be held in Treasury for a price of 190.00p per share.  

On 3 April 2018 subscriptions were received from shareholders resulting in the allotment of 130,998 new ordinary shares.

Availability of Annual Report and Accounts

The Annual Report and Accounts will shortly be posted to those registered shareholders who have elected to receive a hard copy. An electronic version of the Annual Report & Accounts which includes the Notice of AGM and Form of Proxy will soon be available to download from the Company's section of the Jupiter Asset Management website at www.jupiteram.com/JGC.

For further information, please contact:

Richard Pavry

Head of Investment Trusts

Jupiter Asset Management Limited, Company Secretary

[e-mail]

020 7314 4822

28 June 2018

 

END

 

 

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