TIDMJEFI
RNS Number : 9173M
Jupiter Emerging & Frontier Inc.Tst
11 January 2019
Jupiter Emerging & Frontier Income Trust plc (the
'Company')
Legal Entity Identifier: 213800RLXLM87NO26S30
Annual Results for the period to 15 May 2017 to 30 September
2018 (Audited)
This announcement contains regulated information
Financial Highlights
Capital Performance
30 September
2018
Total assets less current liabilities
(GBP'000) 91,473
Ordinary Share Performance
30 September 15 May
2018 2017 %
Net asset value (pence)/Issue price (pence) 98.26 100.00 (1.74)
Net asset value total return with dividends
added back
(pence)/Issue price (pence)* 102.26 100.00 2.26
Middle market price (pence)/Issue price
(pence) 99.00 100.00 (1.00)
MSCI Emerging Markets Index (Net Total
Return) in Sterling 551.47 517.11 6.64
Premium to net asset value (%)* 0.8 - -
Total dividends declared and paid during 4.0 - -
the period (pence)
Ongoing charges figure (%) excluding 1.35 - -
finance costs*
*Alternative performance measure
Chairman's Statement
I am pleased to present the first report and audited accounts
for Jupiter Emerging & Frontier Income Trust PLC (the
"Company"). This covers the period since launch on 15 May 2017 to
30 September 2018, reflecting the decision taken at flotation to
select an initial accounting period significantly longer than 12
months. As at 30 September 2018 the Company had investments of
GBP101.5 million and net assets attributable to shareholders of
GBP91.5 million.
For the first portion of the period under review global stock
markets rose, sitting at near record levels towards the end of
2017, aided by tax reforms in the United States. 2018 has, however,
been a different story, with world markets displaying signs of
nervousness, reflecting in part geo-political tensions and,
perhaps, a feeling that after an extended bull run all good things
have to come to an end. Your Company has little direct exposure to
the technology sector and the 'gig economy', but to adapt a phrase
which has been employed to explain the interlinkage of world
capital markets "When Apple and Amazon sneeze, the world catches a
cold". Thus the stocks in which the Company invests suffered as
concerns about excessive valuations in the developed world led to a
widespread sell-off in emerging markets generally. Yet, as our
Investment Adviser describes in more detail, most of the companies
in which we invest continue to perform well and the stream of
dividends we receive is in line with our expectations.
Our investment performance
During the period under review the Company's share price and NAV
(with dividends added back) returned 3.0% and 2.3%, respectively.
This compares with a total return of 6.6% for our benchmark, the
MSCI Emerging Markets Index. Although we do not attempt in any way
to track our benchmark, we accept this is a somewhat underwhelming
result for our first reporting period and reflects in the main the
very challenging circumstances which have confronted the markets in
which we invest during recent months.
As at 30 September 2018 the Net Asset Value per share was 98p, a
1.7% decrease since launch, and the middle market price per share
on the London Stock Exchange was 99p, representing a premium to net
asset value of 1%.
Your Company's recent performance is considered in more detail
by our portfolio managers, Ross Teverson and Charlie Sunnucks, in
their Investment Adviser's report.
Gearing
Gearing is defined as the ratio of a company's 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 its investment portfolio underperforms the
cost of those prior entitlements.
The Company currently has access to a flexible loan facility
with Scotiabank Europe plc for amounts up to GBP20 million. The
ability to borrow in this way is seen as a clear advantage enjoyed
by investment trusts as compared with open ended investment
vehicles such as unit trusts. As at 30 September 2018 the Company's
net gearing level, being the amount of drawn down bank debt, less
the cash held on the balance sheet, was 11%.
The Board of Directors ('the Board') reviews the Company's
gearing on a regular basis. The current maximum has been set at 20%
of the Company's Net Asset Value (calculated at the time of
borrowing) and we encourage the Investment Adviser to use the
gearing facility and the Company's cash reserves in order to
enhance returns for shareholders.
Dividends
The Board's policy is to pay a semi-annual dividend in June and
December of each year. A total of 4 pence in two interim dividends
of 2 pence each have been paid to date and we have declared a third
interim dividend, payable on 18 January 2019, of 2.2 pence a share,
exceeding the projections set out in the Company's prospectus last
year, which envisaged a total dividend of 6 pence for our first
reporting period. These distributions have been fully covered by
earnings.
Discount and premium management
The Company's total asset base is currently at the lower end of
the minimum size preferred by many institutional and wealth
management investors. The Board and the Investment Adviser are
committed to growing the Company over time. Our shares have traded
since launch predominantly at a small premium to net asset value
and this has enabled us to undertake a number of small secondary
issues. Market conditions have not, in the opinion of the Board,
been conducive to a major capital raising exercise, albeit this
remains our longer term goal.
The Board remains committed to its stated policy of using share
buybacks 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 close to their underlying Net Asset
Value. The Board continues to believe that this commitment to the
active management of discount and premium will provide materially
improved liquidity for both buyers and sellers of the Company's
shares.
During the period under review the Company has issued a total of
3.1 million shares through its ongoing placing programme. At the
annual redemption point in June there were no redemption requests
in relation to shares by means of placing those shares with other
buyers in the market.
PRIIPS key information documents
We are required by 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 is one of many voices that
makes no secret of its view that these projections are neither an
appropriate nor a helpful way to assess the Company's prospects.
For those shareholders interested to learn more on this issue, I
refer them to an excellent article published by our industry
association, the AIC, under the title "Burn before reading".
We continue to steer shareholders in the direction of the
comprehensive information set out in these final accounts, along
with the monthly fact sheets and daily net asset value
announcements. Together with a link to Ed Marten's third party
research coverage of the Company, these documents are published at
www.jupiteram.com/JEFI.
Annual General Meeting
The Company's Annual General Meeting will be held on Wednesday,
27 February 2019 at 11:30 a.m. at the offices of Jupiter Asset
Management Limited, The Zig Zag Building, 70 Victoria Street,
London SW1E 6SQ.
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.
Outlook
Our portfolio managers' approach is to concentrate on
identifying companies enjoying positive change that is
under-appreciated by the market, as distinct from being driven by
macro-economic considerations.
The current volatility of world markets has highlighted the
importance of being selective and our managers have already shown
themselves to be adept at identifying suitable investment
opportunities. As I have said before, the Board has great
confidence in the Investment Adviser's ability to navigate its way
through the choppy waters currently presented by emerging and
frontier markets. All of the directors continue to be significant
shareholders in the Company and, in addition to our undertaking to
invest all of our first two years' net earnings in the Company's
shares, we have been purchasing in excess of that commitment,
reflecting our faith in the Company and its investment
strategy.
John Scott
Chairman
11 January 2019
Investment Adviser's Review
Market review
Over the period, the MSCI Emerging Markets Index returned 6.6%
in sterling terms. MSCI country benchmark returns for key markets
were as follows: China +16.5%; India +2.3%; Brazil -9.2%; and
Russia +21.5%.
Emerging Market equities broadly throughout most of 2017 and
beginning of 2018 performed strongly, with a rally largely led by
Chinese stocks. These gains were subsequently given up, as concerns
over rising US-China trade tensions, Russian sanctions and the
potential impact of higher US interest rates weighed on valuations.
In addition, there has been a relatively high degree of political
uncertainty over the period, with recent national elections in
Turkey, Mexico, Columbia, Pakistan, Brazil and upcoming elections
in India, Sri Lanka and Nigeria, all creating further
volatility.
In terms of sector performance, firms positively exposed to
energy and materials have led the market. The outperformance of
these sectors reflects what has broadly been a continued recovery
in the price of commodities. Collectively, the fund has 9.0%
invested across these two sectors, relative to its index 16%
weight. As these areas of the market are typically more exposed to
cyclical variation than fundamental change, the fund's exposure
will likely remain limited.
Performance
Over the period, the portfolio delivered a NAV total return
(including the two 2p dividends paid) of 2.3% (using the launch
price of 100p as a base), while the trust delivered a total price
return of +3.0% - both figures lagged the MSCI Emerging Markets
benchmark (+6.6%).
The weaker than benchmark performance has largely been due to
several headwinds. Notably, the weak performance of emerging market
small caps and frontier markets; returning only +1.0% and +1.2%
respectively. While the return from these areas of the market has
been disappointing over recent history, we continue to believe that
some of the most attractive bottom-up opportunities globally are
within these areas. Moreover, investing beyond emerging market
large caps provides scope to deliver greater geographical and
sector diversification; a characteristic which should over time
deliver lower levels of volatility.
In terms of individual stock performance, return dispersion has
been high. Chroma ATE has been the most material positive
contributor to returns. The Taiwanese electronics company sells
into a diverse range of industries including semiconductors,
electronic vehicle batteries, solar, LED and 3D sensors. Chroma's
strong share price performance has been driven by
better-than-expected earnings and positive management guidance.
Other positive contributors included Salmones Camanchaca, a
Chilean Salmon producer. The firm has recently invested in a number
of projects, which in our view will deliver an attractive return on
investment. Moreover, the firm's low level of leverage provides it
flexibility to invest into further new projects, and there is scope
for organic growth as management improve the efficiency of existing
facilities.
The trust's holding in Cambodian entertainment and gaming
operator NagaCorp also performed well over the period. The company
is based in the capital - Phnom Phen, but only caters to foreign
tourists, (mostly from South East Asia and China). Structurally the
business continues to benefit from rising tourism in Cambodia, a
trend supported by increasing direct flight routes into Chinese
cities. Moreover, at a company level, rising utilisation at Naga 2
(a recent extension) and renovation within Naga 1 mean that there
is still scope for further organic growth.
The position that most materially detracted from performance was
Ascendis Health in South Africa. The firm is a company that has
made several European acquisitions in recent years and we believe
these acquisitions will generate significant value for Ascendis
shareholders over time. However, the Steinhoff scandal, which bears
no relation to Ascendis at all, has made domestic South African
investors highly sceptical of any company making overseas
acquisitions. As such, the stock has undergone a derating, which we
view as temporary and unjustified.
Another detractor was Bizlink, a Taiwan based wire-harness
producer. The firm is a beneficiary from a structural rise of
electric vehicle demand, with clients including Tesla. The
significant decline in the share price has been a combination of
Tesla supply chain concerns and margin pressure due to a rise in
operating expenditure not matched by sales growth during one
quarter. We have continued to communicate with management and
believe that the investment case remains attractive, which should
be better reflected in the valuation as the company delivers on
earnings growth.
Activity
During the period there have been a number of position changes
within the portfolio. These include exiting the position in State
Bank India (SBI), and investing in Pakistan bank UBL; as well as
exiting Dali Foods and investing in Bestway International.
UBL was added to the portfolio after a period of share price
weakness created an attractive opportunity to establish a position
in a business that is well-positioned to benefit from positive
structural change in the Pakistan banking sector. Relative to other
emerging markets, the penetration of financial services remains low
in Pakistan, but this is beginning to change, as policy makers are
targeting a higher level of financial inclusion. UBL stands out
amongst Pakistani banks in that its superior scale, combined with a
strong management team, have supported a level of profitability
comfortably in excess of its cost of equity. Its strong balance
sheet allows the bank to pay substantial dividends while, at the
same time, also growing its loan book. The experience of more
mature markets, such as Indonesia, suggest that a combination of
good structural growth prospects and a strongly profitable banking
franchise can deliver high returns over time, as a market develops.
The position was part financed by exiting State Bank of India, as
we are keen to manage the overall fund exposure to banks, and
relative to SBI we had more confidence in the investment case of
UBL.
The other new position - Bestway Global - produces outdoor
inflatable leisure products, (inflatable jacuzzi, inflatable paddle
boards, inflatable swimming pools). The firm's market continues to
grow, supported by new application development for inflatable
products and fast rising demand in Asia. Moreover, within this
market Bestway operates in a duopoly, where scale benefits make it
highly competitive and their earnings growth is supplemented by an
expanding margin delivered by positive product mix change. At the
time of investment, the firm's share price had materially sold off
due to Chinese trade relationship concerns. However, as nearly all
global manufacturing of inflatable leisure products is within
China, any future tariff on these products would have a very
limited effect on the firm's outlook given the lack of alternative
sourcing globally. The position was partly funded by the exit of
Dali Foods. Dali is a Chinese snack and beverage brand/producer,
and its strong relative stock price had lifted the valuation beyond
where we felt change was meaningfully underappreciated.
Additionally, the trust seeks to diversify single country exposure,
and selecting Dali as a source of funds has meant that that the
overall China weight within the fund remains balanced.
Outlook
The recent sharp falls in the Argentinian peso and Turkish lira,
and the knock-on effect on other emerging market currencies, have
spooked markets. Importantly, however, we have always sought to
avoid companies with a foreign exchange debt mismatch, meaning they
have borrowed in US dollars but receive revenue in their local
currency. The fundamental strength of the companies in the
portfolio remains, in our view, as sound as they were before the
current turmoil.
The last few months have been painful for the fund and its
investors. Global economic factors have had a significant impact on
emerging market returns this year; however, these factors are often
difficult if not impossible to predict. We believe our expertise
lies in finding opportunities where an element of change is
underappreciated by the market, but during periods where the market
is preoccupied with bigger picture concerns, such fundamental stock
characteristics will often continue to go overlooked.
When we look at emerging markets from the bottom-up we don't
have any difficulty in finding interesting opportunities and stocks
are having to compete to get into the portfolio. We therefore
remain comfortable maintaining around 10% gearing in the trust - a
level which we have described to our investors as a "typical" level
of gearing and one which we feel is appropriate unless valuations
become either stretched (at which point we would reduce gearing) or
depressed (at which point we would consider up to 20% gearing).
The recent market volatility has highlighted the importance of
being selective when seeking out investment opportunities. Some
large companies, most notably those that are widely perceived to be
high quality, continue to be very highly valued by the market, even
after the recent falls. This is one of the reasons that our
approach places an emphasis on medium-sized and smaller companies,
where we believe some of the best long-term opportunities can be
found. The companies we invest in have generally delivered strong
earnings growth and, given the recent fall in markets, share price
valuations now looking compelling to us both in a historical
context and relative to developed markets.
Ross Teverson and Charles Sunnucks
Fund Managers
Jupiter Asset Management Limited
Investment Adviser
11 January 2019
List of Investments as at 30 September 2018
30 September 2018
Market Percentage
value of
Company Country of Listing GBP'000 portfolio
Corp Inmobiliaria Vesta Mexico 3,738 3.7
NWS Holdings Hong Kong 3,357 3.3
Samsung Electronics Preference Korea 3,356 3.3
Wilson Sons, BDR Brazil 3,278 3.2
Grit Real Estate Income Group Mauritius 3,110 3.1
NagaCorp Hong Kong 3,103 3.1
MMC Norilsk Nickel, ADR Russia 3,063 3.0
Sberbank of Russia Preference Russia 2,860 2.8
KCB Kenya 2,838 2.8
Hindustan Petroleum India 2,700 2.7
Moneta Money Bank Czech Republic 2,658 2.6
Itau Unibanco Holding Brazil 2,604 2.6
Ginko International Taiwan 2,602 2.6
Taiwan Semiconductor Manufacturing Taiwan 2,579 2.5
Chroma ATE Taiwan 2,406 2.4
Saudi Telecom (Merrill Lynch)
warrant 12/02/2020 Curacao 2,375 2.3
Air Arabia United Arab Emirates 2,331 2.3
Hyundai Motor Preference Korea 2,288 2.3
MediaTek Taiwan 2,268 2.2
Sands China Hong Kong 2,261 2.2
LSR Group, GDR Russia 2,235 2.2
Emaar Malls United Arab Emirates 2,226 2.2
Almacenes Exito Colombia 2,183 2.1
MHP, GDR Cyprus 2,057 2.0
SEPLAT Petroleum Development Nigeria 2,026 2.0
Access Bank Nigeria 2,013 2.0
Hon Hai Precision Industry Taiwan 1,933 1.9
NetEase, ADR Hong Kong 1,923 1.9
Detsky Mir Russia 1,913 1.9
Salmones Camanchaca Chile 1,900 1.9
Huayu Automotive Systems (HSBC)
warrant
23/11/2021 United Kingdom 1,871 1.8
Merida Industry Taiwan 1,864 1.8
MTN Group South Africa 1,751 1.7
United Bank Pakistan 1,736 1.7
Pico Far East Holdings Hong Kong 1,707 1.7
Virgin Islands,
Hollysys Automation Technologies British 1,681 1.7
Bizlink Holdings Taiwan 1,679 1.7
Vietnam Dairy Products (HSBC)
warrant
20/11/2020 United Kingdom 1,624 1.6
Bank of Georgia Group United Kingdom 1,559 1.5
Jaya Real Property Indonesia 1,483 1.5
John Keells Holdings Sri Lanka 1,392 1.4
Pavilion Real Estate Investment
Trust(1) Malaysia 1,374 1.3
Ascendis Health South Africa 1,363 1.3
Sphera Franchise Group Romania 1,301 1.3
Indus Motor Pakistan 1,089 1.1
Anadolu Hayat Emeklilik Turkey 1,034 1.0
Bestway Global Hong Kong 839 0.8
------------------------------------ ---------------------- -------- -----------
Total 101,531 100.0
------------------------------------------------------------ -------- -----------
(1) Listed closed-ended investment
company.
Cross Holdings in other Investment Companies
As at 30 September 2018, 1.3% of the Company's total assets were
invested in the securities of other listed closed-ended investment
companies.
It is the Company's stated policy that its exposure to other
closed-ended listed investment companies should not be permitted to
exceed 10% of total assets.
Strategic Report
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 period 15 May 2017 to 30 September 2018 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 as an investment trust subject to the
Company continuing to meet the eligibility conditions of sections
1158 and 1159 of the Corporation Tax Act 2010 ('CTA 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 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 CTA 2010 and has no employees.
The Company was incorporated in England & Wales on 4 April
2017.
Reviews of the Company's activities are included in the
Chairman's Statement and Investment Adviser's Review.
There has been no significant change in the activities of the
Company during the period to 30 September 2018 and the Directors
anticipate that the Company will continue to operate in the same
manner during the current financial year.
Investment Objective
The Company's investment objective is to achieve capital growth
and income, both over the long term, through investment
predominantly in companies exposed directly or indirectly to
Emerging Markets and Frontier Markets worldwide.
Investment Policy
The Company will invest at least 70% of Total Assets in
companies that, at the time of investment, have their registered
offices or principal places of business in Emerging Markets or
Frontier Markets, or which exercise a material part of their
economic activities in Emerging Markets and/or Frontier Markets,
and which are considered by the Investment Manager to be
undervalued or otherwise to offer good prospects for capital
growth.
The Company may invest up to 25% of Total Assets in companies
that, at the time of investment, have their registered offices or
principal places of business in, or which exercise a material part
of their economic activities in, Frontier Markets (calculated at
the time of investment).
The Company may invest up to 5% of Total Assets in unquoted
companies (calculated at the time of investment).
The Company will invest no more than 10% of Total Assets in any
single holding (calculated at the time of investment).
Investment Restrictions
The Company will at all times invest and manage its assets with
the objective of spreading risk in accordance with its published
investment policy.
The Company will not invest more than 10% of its Total Assets in
other listed closed ended investment funds (as defined in the
Listing Rules).
Benchmark Index
The Company's benchmark index is the MSCI Emerging Markets Index
(Total Return) in sterling.
Gearing
Gearing is defined as the ratio of a company's 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 it's investment portfolio underperforms the
cost of those prior entitlements.
The Company may deploy gearing of up to 20% of Net Asset Value
(calculated at the time of borrowing) to seek to enhance long--term
capital growth and income returns and for the purpose of capital
flexibility. The Company's gearing is expected to primarily
comprise bank borrowings but may include the use of derivative
instruments and such other methods as the Board may determine.
Loan Facility
In order to improve the potential for capital returns to
shareholders the Company has, with effect from 5 July 2017,
negotiated a flexible loan facility with Scotiabank (Ireland)
Designated Activity Company ('Scotiabank') for up to GBP20
million.
The ability to borrow in this way is seen as a clear advantage
enjoyed by investment trusts as compared with open ended investment
vehicles such as unit trusts.
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.
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.
Dividend Policy
The Company will target an annualised dividend yield of a
minimum of 4% at launch (based on the Issue Price). Due to the
flexibility afforded by the investment trust structure, the Company
will have the scope to build a revenue reserve, potentially
allowing for progressive dividend payments. It is intended that the
Company will build up revenue reserves over time so as to enable
the Board to smooth the level of future interim dividend payments
where practicable. However, in accordance with regulation 19 of the
Investment Trust (Approved Company) (Tax) Regulations 2011, the
Company will not (except to the extent permitted by those
regulations) retain more than 15% of its income (as calculated for
UK tax purposes) in respect of an accounting period.
Annual Redemption Facility
The Company has a redemption facility through which Shareholders
will be entitled to request the redemption of all or part of their
holding of Ordinary Shares as at 30 June on an annual basis. The
Board have absolute discretion to operate the annual redemption
facility on any given Redemption Point and to accept or decline in
whole or part any Redemption Request.
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;
-- The premium or discount of share price to Net Asset Value over time;
-- A comparison of the absolute and relative performance of the
Ordinary share price and the Net Asset Value per share relative to
the return on the Company's Benchmark Index and of our peers;
and
-- Ordinary Share price movement.
Share Capital
The Board has authority to issue up to 200 million Ordinary
Shares and/or C Shares in aggregate in the period from First
Admission until the first annual general meeting ('AGM') of the
Company. Shareholders' pre--emption rights over this unissued share
capital have been disapplied so that the Board will not be obliged
to offer any new Ordinary Shares or C Shares to Shareholders on a
pro rata basis. No Ordinary Shares will be issued at a price less
than the (cum-income) Net Asset Value per existing Ordinary Share
at the time of their issue. C Shares (if any) issued pursuant to
this authority will be issued at GBP1.00 per C Share.
Investors should note that the issuance of new Ordinary Shares
and/or C Shares is entirely at the discretion of the Board, and no
expectation or reliance should be placed on such discretion being
exercised on any one or more occasions or as to the proportion of
new Ordinary Shares and/or C Shares that may be issued.
90 million Ordinary Shares were issued on initial offering on 15
May 2017. A further 3,093,000 Ordinary Shares have been issued
during the period post launch 15 May 2017 to 30 September 2018. As
at 30 September 2018, the Company's issued share capital is
93,093,000 Ordinary Shares.
No C shares were issued between the period 15 May 2017 and 30
September 2018.
Discount management
The Company may seek to address any significant discount to NAV
at which its Ordinary Shares may be trading by purchasing its own
Ordinary Shares in the market on an ad hoc basis.
The Board has the authority to make market purchases of up to
14.99% of the Ordinary Shares in issue on First Admission.
The initial authority to make market purchases expires on the
earlier of the conclusion of the first AGM of the Company and the
date 18 months after the date on which the resolution was passed.
It is intended that a renewal will be sought from Shareholders at
each AGM of the Company. Purchases of Ordinary Shares will be made
within guidelines established from time to time by the Board. Any
purchase of Ordinary Shares would be made only out of the available
cash resources of the Company. Ordinary Shares purchased by the
Company may be held in treasury or cancelled.
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 be renewed at the AGM. The new authority to repurchase will
last until the conclusion of the AGM of the Company in 2020 (unless
renewed earlier). Any repurchase made will be at the discretion of
the Board in light of prevailing market conditions and within
guidelines set from time to time by the Board, the Companies Act,
the Listing Rules and the Market Abuse Regulation.
No Ordinary Shares were bought back during the period 15 May
2017 to 30 September 2018.
Treasury Shares
In accordance with the Companies (Acquisition of Own Shares)
(Treasury Shares) Regulations 2003 (the 'Regulations') which came
into force on 1 December 2003 any Ordinary Shares repurchased,
pursuant to the above authority, may be held in treasury. These
Ordinary Shares may subsequently be cancelled or sold for cash.
This would give the Company the ability to reissue shares quickly
and cost effectively and provide the Company with additional
flexibility in the management of its capital.
As at 30 September 2018, there were no Ordinary Shares held in
Treasury.
Management
The Company has no employees and most of its day to day
responsibilities are delegated to Jupiter Asset Management Limited
('JAM'), which acts as the Company's Investment Adviser and Company
Secretary. J.P. Morgan Europe Limited ('JPMEL') acts as the
Company's Depositary and the Company has entered into an
outsourcing arrangement with J.P. Morgan Chase Bank N.A. ('JPMCB')
as Custodian and for the provision of accounting and administrative
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 viability 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's shares as a long-term investment. Three years
is considered a reasonable period for investment in equities and is
appropriate for the composition of the Company's portfolio.
In carrying out its assessment, 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 liquid portfolio invested predominantly in listed equities; and
-- No significant increase to ongoing charges or operational expenses is anticipated.
The Board has 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.
Principal Risks and Uncertainties
The Board has undertaken a robust review of the principal risks
and uncertainties that may affect the Company and its business
which are described below:
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.
Investment Strategy and Share Price Movement - 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.
Liquidity Risk - The Company may invest in securities that have
a very limited market which will affect the ability of the
Investment Adviser to dispose of securities when it is no longer
felt that they offer the potential for future returns. Likewise the
Company's shares may experience liquidity problems when
shareholders are unable to realise their investment in the Company
because there is a lack of demand for the Company's shares. At its
quarterly meetings the Board considers the current liquidity in the
Company's investments when setting restrictions on the Company's
exposure. The Board also reviews, on a quarterly basis, the
Company's buy back programme and in doing so is mindful of the
liquidity in the Company's shares.
Gearing Risk - The Company's gearing can impact the Company's
performance by accelerating the decline in value of the Company's
net assets at a time when the Company's portfolio is declining.
Conversely gearing can have the effect of accelerating the increase
in the value of the Company's net assets at a time when the
Company's portfolio is rising. The Company's level of gearing is
under constant review by the Board who take into account the
economic environment and market conditions when reviewing the
level.
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 detailed in the Prospectus of the Company,
the Board currently has the authority to purchase the Company's
Ordinary Shares as a method of controlling the discount to Net
Asset Value and enhancing shareholder value. Shareholder approval
will be sought to renew this authority at the first (and every
subsequent) AGM of the Company.
Regulatory Risk - The Company operates in a complex regulatory
environment and faces a number of regulatory risks. A breach of
section 1158 of the CTA 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 confirms 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.
Directors
As at 30 September 2018 the Board comprises one female and three
male Directors.
Employees, Environmental, Social and Human Rights issues
The Company has no employees as the Board has delegated the day
to day management and administration functions to JUTM, JAM and
other third parties. There are therefore no disclosures to be made
in respect of employees.
The Board has noted its 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
its 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 its day to day management and administration
functions have been outsourced to third parties and it neither owns
physical assets or 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.
For and on behalf of the Board
John Scott
Chairman
11 January 2019
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report
and financial statements in accordance with applicable United
Kingdom law and those International Financial Reporting Standards
("IFRS") as adopted by the European Union.
Under Company law the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the return or
loss of the Company for that period.
In preparing those financial statements, the Directors are
required to:
(a) select suitable accounting policies in accordance with IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors and
then apply them consistently;
(b) present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
(c) provide additional disclosures when compliance with the
specific requirements in IFRSs is insufficient to enable users to
understand the impact of particular transactions, other events and
conditions on the entity's financial position and financial
performance;
(d) state that the Company has complied with IFRS, subject to
any material departures disclosed and explained in the financial
statements; and
(e) make judgements and estimates that are reasonable and
prudent.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website www.jupiteram.com/JEFI. 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/JEFI, 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, confirms 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.
For and on behalf of the Board
John Scott
Chairman
11 January 2019
Statement of Comprehensive Income for the period from 15 May 2017
to 30 September 2018
Period ended 30 September
2018
Revenue Capital Total
GBP'000 GBP'000 GBP'000
Loss on investments held at fair value
through profit or loss - (1,830) (1,830)
Foreign exchange gain on loan - 81 81
Other exchange gain - 340 340
Income 7,971 - 7,971
========================================== ========== ======== ========
Total income/(loss) 7,971 (1,409) 6,562
========================================== ========== ======== ========
Investment management fee (253) (758) (1,011)
Other expenses (789) (24) (813)
========================================== ========== ======== ========
Total expenses (1,042) (782) (1,824)
========================================== ========== ======== ========
Net return/(loss) before finance costs
and taxation 6,929 (2,191) 4,738
========================================== ========== ======== ========
Finance costs (99) (336) (435)
------------------------------------------ ---------- -------- --------
Return/(loss) on ordinary activities
before taxation 6,830 (2,527) 4,303
========================================== ========== ======== ========
Taxation (780) 141 (639)
========================================== ========== ======== ========
Net return/(loss) after taxation* 6,050 (2,386) 3,664
------------------------------------------ ---------- -------- --------
Return/(loss) per Ordinary share 6.54p (2.58)p 3.96p
------------------------------------------ ---------- -------- --------
* There is no other comprehensive income and therefore the 'Net
return/(loss) after taxation' is the total comprehensive income for
the period.
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.
Statement of Financial Position as at
30 September 2018
2018
GBP'000
Non current assets
Investments held at fair value through
profit or loss 101,531
Current assets
Other receivables 391
Cash and cash equivalents 1,465
======================================== =========
1,856
---------------------------------------- ---------
Total assets 103,387
---------------------------------------- ---------
Current liabilities
Other payables (11,914)
---------------------------------------- ---------
Total assets less current liabilities 91,473
---------------------------------------- ---------
Capital and reserves
Called up share capital 931
Share premium 3,107
Special reserve 87,485
Retained earnings (50)
---------------------------------------- ---------
Total equity shareholders' funds 91,473
---------------------------------------- ---------
Net Asset Value per Ordinary share 98.26p
---------------------------------------- ---------
Approved by the Board of Directors and authorised for issue on
11 January 2019 and signed on its behalf by:
John Scott
Chairman
Company registration number 10708991
Statement of Changes in Equity for the period from 15 May 2017
to 30 September 2018
Share Share Special Retained
Period from launch on 15 Capital Premium Reserve* Earnings Total
May 2017
to 30 September 2018 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 15 May 2017 - - - - -
Net profit for the period - - - 3,664 3,664
Initial offering 900 89,100 - - 90,000
Ordinary share issue 31 3,163 - - 3,194
Expenses in relation to
share issue - (1,671) - - (1,671)
Transfer of reserves - (87,485) 87,485 - -
Dividends declared and
paid** - - - (3,714) (3,714)
--------------------------- -------- --------- --------- --------- --------
Balance at 30 September
2018 931 3,107 87,485 (50) 91,473
--------------------------- -------- --------- --------- --------- --------
* Special Reserve was constituted following a transfer from the
Share Premium reserve and can also be used to pay dividends.
** Dividends paid during the period were paid out of revenue
reserves which form part of retained earnings.
Cash Flow Statement for the period from 15 May 2017
to 30 September 2018
2018
GBP'000
Cash flows from operating activities
Dividends received (gross) 7,585
Investment management fee paid (839)
Other cash expenses (628)
-------------------------------------------------- ----------
Net cash inflow from operating activities before
taxation and interest 6,118
-------------------------------------------------- ----------
Interest paid (432)
Overseas tax incurred (639)
-------------------------------------------------- ----------
Net cash inflow from operating activities 5,047
-------------------------------------------------- ----------
Cash flows from investing activities
Purchases of investments (151,013)
Sales of investments 47,698
-------------------------------------------------- ----------
Net cash outflow from investing activities (103,315)
-------------------------------------------------- ----------
Cash flows from financing activities
Initial offering 90,000
Ordinary shares issued 3,194
Expenses in relation to share issue (1,671)
Equity dividends paid (3,714)
Net drawdown of loan 11,584
-------------------------------------------------- ----------
Net cash inflow from financing activities 99,393
-------------------------------------------------- ----------
Increase in cash 1,125
-------------------------------------------------- ----------
Change in cash and cash equivalents
-------------------------------------------------- ----------
Cash and cash equivalents at start of period -
Realised gain on foreign currency 340
-------------------------------------------------- ----------
Cash and cash equivalents at end of period 1,465
-------------------------------------------------- ----------
Notes to the Accounts
1. Accounting Policies
The Accounts comprise the financial results of the Company for
the period from 15 May 2017 to 30 September 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 11 January 2019. All values
are rounded to the nearest thousand pounds (GBP'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), and with those parts
of the Companies Act 2006 applicable to companies reporting under
IFRS.
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 Company adopts the going concern basis in the preparation of
the financial statements:
(a) Income
Dividends from investments are recognised when the investment is
quoted ex-dividend on or before the date of the Statement of
Financial Position.
Dividends receivable from equity shares are taken to the revenue
return column of the Statement of Comprehensive Income.
Special dividends are reviewed on a case by case basis to
determine if the dividend is to be treated as revenue or
capital.
(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.
Investment Management fees and finance costs are charged 75% to
capital and 25% to revenue.
All other operational costs including administration expenses
(but with the exception of any Transaction handling charges which
are charged to capital) are charged to revenue.
(c) Investments
Investments are recognised and derecognised on a trade date
where a purchase or 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
the fair value, 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
or loss investments are included within the changes in the fair
value of the investment.
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 the Statement
of Comprehensive Income within the revenue or capital column
depending on the nature of the underlying item.
(f) Borrowing and finance costs
Interest-bearing bank loans and overdrafts are recorded at the
proceeds received, net of direct issue costs and subsequently
measured at amortised cost. Finance charges, including premiums
payable on settlement or redemption and direct issue costs, are
accounted for on an accruals basis in the Statement of
Comprehensive Income using the effective interest method and are
added to the carrying amount of the instrument to the extent that
they are not settled in the period in which they arise.
Finance costs are recognised in the Statement of Comprehensive
Income in the period in which they are incurred. All finance costs
are charged 75% to capital and 25% to revenue of the Statement of
Comprehensive Income.
(g) Expenses
Expenses are accounted for on an accruals basis. Management fees
are charged 75% to capital and 25% to revenue with all other
expenses are charged fully to the revenue column of the Statement
of Comprehensive Income. Expenses which are incidental to the
purchase or sale of an investment are charged to capital, along
with any foreign exchange gains and losses.
(h) 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
period. 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
Corporation Tax Act 2010 are not liable for taxation of capital
gains.
(i) Ongoing Charges Figure
The Ongoing Charges Figure (OCF) is calculated as the ratio of
the total ongoing charges to the average net asset value of the
Company over the period. The OCF is made up of the Investment
Management fee and other operating costs deducted from the Company
during the period, except for those payments that are explicitly
excluded.
(j) Reserves
Share Capital
This reserve is the nominal value of the shares in issue.
Share Premium
The share premium may be used for the payment of share issue
costs.
Special Reserve
The special reserve may be used to finance the Company's share
buyback facility.
The special reserve may also be used to fund the distribution of
profits to investors via dividend payments.
Retained Earnings
Capital reserve
The capital reserve is not available for the payments of
dividends.
The following are accounted for in this reserve:
-- Gains and losses on the realisation of investments,
-- Changes in fair value of investments held at the period end,
-- Transaction costs,
-- Foreign currency difference.
Revenue Reserve
The revenue profit or loss for the period is taken to or from
this reserve.
The revenue reserve may be used to fund the distribution of
profits to investors via dividend payments.
(k) Accounting developments
At the date of authorisation of these financial statements, the
following Standards and Interpretations were in issue. They are not
yet effective, and have not been early adopted. They are not
expected to have a material impact:
-- IFRS 9 - Financial Instruments (effective for annual periods
beginning on or after 1 January 2018). The adoption of IFRS 9 is
unlikely to have a material impact on the Company's financial
assets or financial liabilities, which will continue to be
classified as fair value through profit or loss and held at
amortised cost respectively.
-- IFRS 15 - Revenue from Contracts with Customers (effective
for annual periods beginning on or after 1 January 2018). The
adoption of IFRS 15 is unlikely to have a material impact on the
Company's financial statements as presented for the period, as the
company's income is predominantly dividend income and fair value
gains, which are not accounted for under IFRS 15.
-- Amendments to IFRS 9 - Prepayment Features with Negative
Compensation (effective for annual periods beginning on or after 1
January 2019).
2. Significant accounting judgements, estimates and
assumptions
The preparation of the Company's financial statements on
occasion requires management to make judgements, estimates and
assumptions that affect the reported amounts in the primary
financial statements and the accompanying disclosures. These
assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities
affected in the current and future periods, depending on
circumstance.
Management do not believe that any accounting judgements,
estimates or assumptions have had a significant impact on this set
of financial statements.
3. Income
Period ended
30 September
2018
GBP'000
Income from investments
Dividends from United Kingdom registered
companies 268
Dividends from overseas companies 7,703
------------------------------------------ -------------
Total income 7,971
------------------------------------------ -------------
4. Investment management fee
Period ended 31 March 2018
Revenue Capital Total
GBP'000 GBP'000 GBP'000
Investment management
fee 253 758 1,011
----------------------- --------- --------- ---------
5. Earnings per Ordinary share
The earnings per Ordinary share figure is based on the net
return for the period of GBP3,664,000 and on 92,452,015 Ordinary
shares, being the weighted average number of Ordinary shares in
issue during the period.
The return per share figure detailed above can be further
analysed between revenue and capital, as below.
Period ended
30 September
2018
GBP'000
Net revenue return 6,050
Net capital loss (2,386)
------------------------------------- ----------------------
Net total return 3,664
------------------------------------- ----------------------
Weighted average number of Ordinary
shares in issue
during the period 92,452,015
Revenue return per Ordinary share 6.54p
Capital return per Ordinary share (2.58)p
------------------------------------- ----------------------
Total return per Ordinary share 3.96p
------------------------------------- ----------------------
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, 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) for an annual fee of 0.75% of the total
assets of the Company after deduction of the value of any Jupiter
managed investments, payable quarterly in arrears.
The Management fee payable to JUTM for the period 15 May 2017 to
30 September 2018 was GBP1,011,000 with GBP172,000 outstanding at
period end.
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.
7. Contingent assets, liabilities and capital commitments
The Company holds an outstanding commitment to purchase shares
in Saudi Telecom, Huayu Automotive Systems, and Vietnam Dairy
Products through warrants (for further detail see List of
Investments).
8. Post balance sheet event
Since the period end no additional Ordinary shares have been
issued.
Availability of the Annual Report & Accounts
The Annual Report & Accounts will shortly be available on
Company's website www.jupiteram.com/JEFI.
A copy of the Annual Report & Accounts will also be
submitted to the National Storage Mechanism and will soon be
available for inspection at www.morningstar.co.uk/uk/NSM.
For further information, please contact:
Richard Pavry
Head of Investment Trusts
Jupiter Asset Management Limited, Company Secretary
investmentcompanies@jupiteram.com
020 7314 4822
[END]
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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