Half-year Report

RNS Number : 4839Y

Jupiter Green Investment Trust Plc

05 December 2017

Jupiter Green Investment Trust plc

('the Company')

Half Yearly Financial Report for the six months to 30 September 2017 (unaudited)

Financial Highlights for the six months to 30 September 2017

Capital Performance

	30 September 2017	31 March 2017
Total Assets less Current Liabilities ( £'000)	40,741	38,509

Ordinary Share Performance

	30 September 2017	31 March 2017	% Change
Mid market price (p)	182.00	173.75	+4.7
Undiluted net asset value per Ordinary share (p)^^	193.49	184.33	+5.0
Diluted net asset value per Ordinary share (p)^	192.66	181.43	+6.2
MSCI World Small Cap Net Total Return Index	338.19	326.11	+3.7
Discount to net asset value (%)	5.94	5.74
Ongoing charges ratio (%)	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.

Chairman's Statement

It is with pleasure that I present the Half Yearly Financial Report for Jupiter Green Investment Trust PLC, covering the six months to 30 September 2017.

Stock market conditions were unusually temperate during the period. Indices in the US and the UK climbed to new all-time highs on low levels of volatility, despite some unsettling political developments: belligerence between the US and North Korea, for example, and heightened uncertainty about Brexit after the Conservative Party lost its majority during the snap general election in June. Economic conditions continued to be broadly favourable, especially in Europe which continued to recover, and central bank policy continued to evolve. The US Federal Reserve increased interest rates by 0.25 per cent., the second increase this calendar year, while the Bank of England and European Central Bank forewarned of tighter policy respectively.

During the six months to 30 September 2017 the diluted Net Asset Value of the Company's Ordinary shares (being the Net Asset Value that would apply to the Ordinary shares in the event that all Ordinary shareholders exercised their annual subscription rights) increased by 6.2 per cent. This compares with an increase in the Company's benchmark index, the MSCI World Small Cap Net Total Return Index of 3.7 per cent. and an increase in the middle market price of the Company's shares of 4.7 per cent. during the same period.

I recommend the Investment Adviser's review in which the Fund Manager, Charlie Thomas presents the key attributes of the Company's performance over the six month period, including the progress made by several core themes within the portfolio.

This was set against a more challenging backdrop from policy perspective. President Trump's decision to withdraw the US from the 2015 Paris climate agreement has widely been viewed as a step back for the country and was condemned both at home and abroad. California's Governor Jerry Brown was one of the most vocal critics of Trump's decision, suggesting that many states will maintain their commitments to the agreement, while government leaders in the EU and China underscored their commitment to the Paris climate deal.

More meaningfully from an investment perspective was the uninterrupted progress made by a number of environmental solutions industries. Developments this year in the markets for electric vehicles, renewable energy and energy efficiency, in terms of technological innovation and cost competitiveness, speak volumes about how important these solutions have now become to the global economy. While headwinds from the White House have the potential to unsettle this progress, the disruptive power appears to side firmly with the innovators who continue to seek cost effective and profitable solutions to the world's most pressing environmental problems. In our view, the long-term opportunity to invest in environmental solutions remain compelling.

Michael Naylor

Chairman

5 December 2017

Investment Adviser's Review

Performance Review

For the six months ended 30 September 2017, the return on net assets of the Company was 5.0 per cent.¹ compared to returns of 3.7 per cent. for the Company's benchmark, the MSCI World Small Cap Index. During the same period the FTSE ET100 TR index returned 8.1 per cent. The FTSE ET100 index measures the performance of the largest 100 companies globally whose core business is the development and deployment of environmental technologies.

Market review

Global stocks markets moved higher during the period under review. Politics remained a prominent feature of the backdrop. The election of pro-European centrist Emmanuel Macron in France was a relief to markets, as was Merkel's more recent re-election in Germany. The UK election in June saw the Conservative Party lose its majority, increasing the general uncertainty about the Brexit negotiations. Meanwhile, Donald Trump struggled to gain Congressional support for his domestic policy agenda. Internationally, however, he withdrew the US from the Paris climate agreement, a move that attracted widespread condemnation both at home and abroad, and engaged in a frightening war of words with North Korea's Kim Jong-un.

Europe's economic recovery continued to be a bright point, bringing forward expectations of when the European Central Bank might start to unwind its stimulus policy. In the US, the Federal Reserve increased its benchmark rate by 0.25 per cent., the second such move this year, amid a tightening of the jobs market. Meanwhile, the Bank of England indicated that an interest rate increase might be more forthcoming than the market expected. Tighter central bank policy typically dampens equity markets and in the last month of the period, markets lost ground due to the combination of a less supportive central bank backdrop and increased hostility between the US and North Korea.

One notable development from the renewable energy sector was news of a sharp fall in the cost of offshore wind power in the UK. Two schemes won contracts at £57.50 per megawatt hour (MWh), placing these schemes among the cheapest electricity generated in Britain. Encouragingly, the dramatic drop in prices has shifted the debate away from how much it will cost to introduce renewable into the energy mix to the size of the contribution they could make.

Policy review

It was a positive six months for the Company, which benefited from heightened merger and acquisition activity and generally solid progress among its core themes. Engineering group WS Atkins was subject to a £2.1bn takeover by Canadian firm SNC-Lavalin, while Whole Foods Market taken over by Amazon as part of its push into the online groceries market.

Other highlights included European stocks Tomra (recycling solutions) and DONG Energy (offshore wind), which benefited from contract wins in part due to improved economic conditions in the region. DONG Energy is a rather unusual company that has come to symbolise the changes occurring in the energy sector. Its name is an acronym for Danish Oil and Natural Gas, reflecting its initial business interest in fossil fuels. In recent years, this company has used the proceeds from its fossil fuel operations to build a thriving offshore wind business. This has become so successful that DONG announced a name change to Ørsted just after the end of the period to mark its transformation to a purely green energy business.

There were a few disappointments during the period. Ball bearing specialist NSK was weak due to concern about a cyclical downturn in the global auto sector. Amazon's takeover of Whole Foods weighed on organic food supplier United Natural Foods. Meanwhile, Shimano edged lower after the company cut back its full-year outlook due to weaker sales in China.

The proceeds from the aforementioned takeovers boosted the Company's cash balance during the period. Given the uncertainties in the current market backdrop, we feel comfortable holding extra cash to exploit opportunities that might arise. We have put some of this to work in recent weeks, taking a position in Prysmian, an Italian cable manufacturer which is exposed to growth in the off-shore wind sector, and adding to positions in Lenzing and Wabtec.

Investment Outlook

We remain mindful that market valuations are looking stretched on some measures, and we continue to monitor a number of potential risks. These include ongoing tensions between the US and North Korea, uncertainty around the UK's Brexit negotiations, and the prospect of tighter central bank policy, which can have a dampening effect on equity markets. As mentioned above, we are holding a larger than usual cash balance, which we believe is appropriate at this time.

President Trump's decision to withdraw the US from the 2015 Paris climate agreement was disappointing. Since the announcement, there has been widespread condemnation of the move by a number of politicians and businesses in the US, most notably by California Governor Jerry Brown who suggested Trump has a weak hand in the face of determination at US state-level to continue towards the pathway set in Paris. He said: "President Trump can't command science…in fact he is fostering more activism, more effort and more collaboration on the opposite side…we are going to intensify our efforts whether it be for electric cars, renewable energy, the whole radical shift to a decarbonised future". In the same vein, both the EU and China at their annual summit meeting reconfirmed their commitment to the goals set out in the Paris climate deal. It is worth highlighting that a number of the portfolio's key themes have made excellent progress this year, including areas such as sustainable transport and the wind power sector. To our minds, the progress being achieved by these areas 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.

Charlie Thomas

Fund Manager

Jupiter Asset Management Limited Investment Adviser

5 December 2017

¹ Source: Jupiter Asset Management Limited

Investment Portfolio as at 30 September 2017

Company	Country of listing	Market value £'000	Percentage of portfolio
A. O. Smith	United States	1,619	4.2
Tomra Systems	Norway	1,531	3.9
LKQ Corporation	United States	1,425	3.7
Vestas Wind Systems	Denmark	1,358	3.5
Emcor Group	United States	1,335	3.4
Cranswick	United Kingdom	1,312	3.4
Xylem	United States	1,192	3.1
Wabtec	United States	1,137	2.9
Valmont Industries	United States	1,096	2.8
Toray Industries	Japan	990	2.6
Johnson Matthey	United Kingdom	975	2.5
RPS Group	United Kingdom	946	2.4
Itron	United States	936	2.4
Sensata Technologies	United States	854	2.2
Azbil	Japan	836	2.2
Renewi	United Kingdom	813	2.1
BorgWarner	United States	781	2.0
National Express Group	United Kingdom	773	2.0
Horiba	Japan	745	1.9
Schneider Electric	France	737	1.9
FirstGroup	United Kingdom	730	1.9
Clean Harbors	United States	646	1.7
Regal Beloit	United States	641	1.7
Daiseki	Japan	639	1.6
United Natural Foods	United States	631	1.6
Veolia Environnement	France	607	1.6
Andritz	Austria	602	1.5
SKF	Sweden	587	1.5
Stantec	Canada	564	1.5
Covanta	United States	559	1.4
Novozymes	Denmark	546	1.4
Dong Energy	Denmark	535	1.4
Mayr-Melnhof Karton	Austria	527	1.4
NSK	Japan	525	1.4
Centrotec Sustainable	Germany	514	1.3
Miura	Japan	502	1.3
China Longyuan Power	China	500	1.3
Infineon Technologies	Germany	500	1.3
Shimano	Japan	496	1.3
Watts Water Technologies	United States	474	1.2
East Japan Railway	Japan	474	1.2
Casella Waste	United States	455	1.2
Suez Environnement	France	409	1.1
First Solar	United States	389	1.0
Hollysys Automation Technologies	United States	371	1.0
Keller Group	United Kingdom	368	0.9
Ricardo Group	United Kingdom	362	0.9
Lenzing	Austria	356	0.9
Jupiter Global Ecology Diversified*	Luxembourg	351	0.9
Vossloh	Germany	294	0.8
Pure Technologies	Canada	292	0.8
INNOGY	Germany	273	0.7
Zumtobel Group	Austria	271	0.7
Fjord1	Norway	263	0.7
SunOpta	United States	232	0.6
VA-Q-TEC	Germany	232	0.6
Prysmian	Italy	214	0.5
SunPower	United States	147	0.4
Atlantis Resources	United Kingdom	143	0.4
Augean	United Kingdom	135	0.3
Total		38,747	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 30 September 2017, 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.

Interim Management Report

Related Party Transactions

During the first six months of the current financial year no transactions with related parties have taken place which have materially affected the financial position or performance of the Company. Details of related party transactions are contained in the Annual Report and Accounts for the year ended 31 March 2017.

Principal Risks and uncertainties

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

• Investment policy and process;

• Investment strategy and share price movements;

• Discount to Net Asset Value;

• Gearing risk;

• Credit and counterparty risk;

• Loss of key personnel;

• Operational; and

• Financial.

The Board reported on the above principal risks and uncertainties in the Annual Report & Accounts for the year ended 31 March 2017.

Going Concern

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

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

Directors' Responsibility Statement

The Board of Directors of Jupiter Green Investment Trust PLC confirms that to the best of its knowledge:

a. The condensed set of financial statements have been prepared in accordance with applicable United Kingdom law and those International Financial Reporting Standards ('IFRS') as adopted by the European Union and give a true and fair view of the state of affairs of the Company, and of the return or loss of the Company as at 30 September 2017.

b. The Chairman's Statement, the Investment Adviser's Review and the Interim Management Report include a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules.

c. The Interim Management Report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules.

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

For and on behalf of the Board

Michael Naylor

Chairman

5 December 2017

Statement of Comprehensive Income

For the six months to 30 September 2017 (unaudited)

	Six months to 30 September 2017			Six months to 30 September 2016
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gain on investments held at fair value through profit or loss	-	2,512	2,512	-	5,288	5,288
Foreign exchange loss	-	(97)	(97)	-	(10)	(10)
Income	399	-	399	392	-	392
Total income	399	2,415	2,814	392	5,278	5,670
Investment management fee	(15)	(136)	(151)	(15)	(133)	(148)
Investment performance fee	-	(132)	(132)	-	-	-
Other expenses	(144)	-	(144)	(125)	-	(125)
Total expenses	(159)	(268)	(427)	(140)	(133)	(273)
Net Return on ordinary activities before finance costs and taxation	240	2,147	2,387	252	5,145	5,397
Finance costs	(6)	-	(6)	(5)	-	(5)
Return on ordinary activities before taxation	234	2,147	2,381	247	5,145	5,392
Taxation	(28)	-	(28)	(29)	-	(29)
Net return after taxation	206	2,147	2,353	218	5,145	5,363
Return per Ordinary share	0.97p	10.09p	11.06p	1.00p	23.71p	24.71p

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

No operations were acquired or discontinued during the period.

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

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

Statement of Financial Position

As at 30 September 2017

	30 September 2017 (unaudited) £'000	31 March 2017 (audited) £'000
Non current assets
Investments held at fair value through profit or loss	38,747	38,352
Current assets
Prepayments and accrued income	115	130
Cash and cash equivalents	2,359	110
	2,474	240
Total assets	41,221	38,592
Current liabilities
Other payables	(480)	(83)
Total net assets less current liabilities	40,741	38,509
Capital and reserves
Called up share capital	34	34
Share premium	30,351	29,515
Redemption reserve	239	239
Special reserve	24,292	24,292
Retained earnings*	(14,175)	(15,571)
Total equity shareholders' funds	40,741	38,509
Net Asset Value per Ordinary share	193.49p	184.33p
Diluted Net Asset Value per Ordinary share	192.66p	181.43p

* These reserves form the distributable reserves of the Company and may be used to fund distribution of profits to investors via dividend payments.

Statement of Changes in Equity

For the six months to 30 September 2017

For the six months to 30 September 2017 (unaudited)	Share Capital £'000	Share Premium £'000	Special Reserve £'000	Redemption Reserve £'000	Retained Earnings £'000	Total £'000
Balance at 31 March 2017	34	29,515	24,292	239	(15,571)	38,509
Net return for the period	-	-	-	-	2,363	2,363
Ordinary shares reissued from Treasury	-	836	-	-	-	836
Ordinary shares repurchased	-	-	-	-	(704)	(704)
Dividend paid	-	-	-	-	(253)	(253)
Balance at 30 September 2017	34	30,351	24,292	239	(14,175)	40,741

For the six months to 30 September 2016 (unaudited)	Share Capital £'000	Share Premium £'000	Special Reserve £'000	Redemption Reserve £'000	Retained Earnings £'000	Total £'000
Balance at 31 March 2016	34	29,481	24,292	239	(20,628)	33,418
Net return for the period	-	-	-	-	5,363	5,363
Ordinary shares released from Treasury	-	34	-	-	-	34
Ordinary shares repurchased	-	-	-	-	(1,465)	(1,465)
Dividend paid	-	-	-	-	(138)	(138)
Balance at 30 September 2015	34	29,515	24,292	239	(16,868)	37,212

Cash Flow Statement

For the six months to 30 September 2017 (unaudited)

	2017 £'000	2016 £'000
Cash flows from operating activities
Investment income received (gross)	412	440
Investment management fee paid	(124)	(140)
Other cash expenses	94	(163)
Net cash inflow from operating activities before taxation	382	137
Interest paid	(4)	(3)
Taxation	(28)	(29)
Net cash inflow from operating activities	350	105
Net cash flows from investing activities
Purchases of investments	(828)	(2,027)
Sales of investments	2,945	3,542
Net cash inflow from investing activities	2,117	1,515
Cash flows from financing activities
Shares repurchased	(704)	(1,465)
Shares reissued from Treasury	836	34
Equity dividends paid	(253)	(138)
Net cash outflow from financing activities	(121)	(1,569)
Increase in cash	2,346	51
Cash and cash equivalents at start of period	110	567
Realised loss on foreign currency	(97)	(10)
Cash and cash equivalents at end of period	2,359	608

Notes to the Financial Statements for the six months to 30 September 2017

1. Accounting Policies

The Accounts comprise the unaudited financial results of the Company for the period to 30 September 2017. The Accounts are presented in pounds sterling, as this is the functional currency of the Company. All values are rounded to the nearest thousand pounds (£'000) except where indicated.

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

Where presentational guidance set out in the Statement of Recommended Practice (SORP) for Investment Trusts issued by the Association of Investment Companies (AIC) in November 2014 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. Revenue 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.

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.

Investments are recognised and derecognised on a trade date where a purchase and sale of an investment is under contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at cost, being the consideration given.

All investments are classified as held at fair value through profit or loss. All investments are measured at fair value with changes in their fair value recognised in the Statement of Comprehensive Income in the period in which they arise. The fair value of listed investments is based on their quoted bid price at the reporting date without any deduction for estimated future selling costs.

Foreign exchange gains and losses on fair value through profit and loss investments are included within the changes in the fair value of the investments.

For investments that are not actively traded and/or where active stock exchange quoted bid prices are not available, fair value is determined by reference to a variety of valuation techniques. These techniques may draw, without limitation, on one or more of: the latest arm's length traded prices for the instrument concerned; financial modelling based on other observable market data; independent broker research; or the published accounts relating to the issuer of the investment concerned.

2. Gain on Investments

	Six months to 30 September 2017 £'000	Six months to 30 September 2016 £'000
Net gain realised on sale of investments	1,571	1,379
Movement in unrealised gains	941	3,909
Gain on investments	2,512	5,288

3. Earnings per Ordinary Share

The earnings per Ordinary share figure is based on the net profit for the six months of £206,000 (six months to 30 September 2016: net profit £218,000) and on 21,257,641 Ordinary shares (six months to 30 September 2016: 21,695,643), being the weighted average number of Ordinary shares in issue during the period.

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

	Six months to 30 September 2017 £'000	Six months to 30 September 2016 £'000
Net revenue profit	206	218
Net capital profit	2,147	5,145
Net total profit	2,353	5,363
Weighted average number of Ordinary shares in issue during the period	21,257,641	21,695,643
Revenue earnings per Ordinary share (p)	0.97	1.00
Capital earnings per Ordinary share (p)	10.09	23.71
Total earnings per Ordinary share (p)	11.06	24.71

4. Transaction Costs

The following transaction costs were incurred during the period:

	Six months to 30 September 2017 £'000	Six months to 30 September 2016 £'000
Purchases	2	4
Sales	1	6
Total	3	10

5. Retained Earnings

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

items.

	Revenue £'000	Capital £'000	Total £'000
At 31 March 2017	363	(15,934)	(15,571)
Movement during the period:
Net income for the period	206	2,147	2,353
Shares repurchased	-	(704)	(704)
Dividends paid	(253)	-	(253)
At 30 September 2017	316	(14,491)	(14,175)

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 £40,741,000 (31 March 2017: £38,509,000) and on 21,055,269 (31 March 2017: 20,890,948) Ordinary shares, being the number of Ordinary shares in issue at the period end excluding Treasury shares.

	Six months to 30 September 2017 £'000	Year ended 31 March 2017 £'000
Undiluted
Ordinary shareholders' funds	40,741	38,509
Number of Ordinary shares in issue	21,055,269	20,890,948
Net asset value per Ordinary share (pence)	193.49	184.33
Diluted
Ordinary shareholders' funds	44,622	41,692
Number of Ordinary shares in issue	23,160,796	22,980,043
Net asset value per Ordinary share (pence)	192.66	181.43

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

7. Fair valuation of investments

The fair value hierarchy analysis for investments held at fair value at the period end is as follows:

	30 September 2017				31 March 2017
	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Equity Investments	38,747	-	-	38,747	38,352	-	-	38,352
	38,747	-	-	38,747	38,352	-	-	38,352

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

	30 September 2017 £'000	30 September 2016 £'000
Opening balance	-	20
Fair value movements	-	(20)
Closing balances	-	-

Level 1 reflects financial instruments quoted in an active market.

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

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

8. Principal risk profile

The principal risks which the Company faces include exposure to:

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

(ii) credit and counterparty risk

(iii) liquidity risk

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

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

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

Further details of the Company's management of these risks can be found in Note 12 of the Company's Annual report and accounts for the year ended 31 March 2017.

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

9. Related parties

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

JUTM is contracted to provide investment management services to the Company subject to termination by not less than twelve months' notice by either party. The 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 30 September 2017 was £151,130 (year to 31 March 2017: 297,731) with £50,798 (31 March 2017: £23,853) outstanding at period 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. There was £132,058 performance fee payable for the period ended 30 September 2017 (31 March 2017: £nil).

The Company has invested from time to time in funds managed by Jupiter Investment Management Group Limited or its subsidiaries. There was one such investment with a market value of £351,000 (31 March 2017: £345,000). No investment management fee is payable by the Company to Jupiter Asset Management Limited in respect of the Company's holdings in investment trusts, open-ended funds and investment companies in respect of which Jupiter Investment Management Group Limited, or any subsidiary undertaking of Jupiter Investment Management Group Limited, receives fees as investment manager or investment adviser.

Availability of Half Yearly Financial Report

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

By Order of the Board

Jupiter Asset Management Limited, Company Secretary

5 December 2017

For further information, please contact:

Richard Pavry

Head of Investment Trusts

Jupiter Asset Management Limited

investmentcompanies@jupiteram.com

020 3817 1496

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