Jupiter Green Investment Trust PLC : Interim Management Statement

      Jupiter Green Investment Trust PLC : Interim Management Statement

                      Jupiter Green Investment Trust PLC
    Interim Management Statement for the three months to 31 December 2012

The Board of Jupiter Green Investment Trust PLC (the "Company") is pleased  to 
announce its  interim  management statement  for  the three  months  ended  31 
December 2012. 

Investment Manager's Report

Performance Review
For the three months ended 31 December 2012 the total return for the Trust was
2.8 per cent.* compared to a return of 2.7 per cent.* for the Trust's
benchmark index, the MSCI World Small Cap Index. During the same period, the
FTSE ET50 Index returned 5.5 per cent..**

Market Review

Global equity  markets made  reasonable  gains in  the December  quarter.  The 
strongest markets were in  Europe where capital  markets stabilised after  the 
ECB's commitment  to  the region,  Japan  where the  incoming  Prime  Minister 
pledged significant fiscal  and monetary stimuli,  and emerging markets  where 
the revival  of  China's economy  was  a positive  development.  US  equities, 
meanwhile, lost ground due to uncertainty about the 'fiscal cliff'.

In  November,  the  UN   Climate  Change  Conference   in  Doha  was   largely 
underwhelming. The main policy outcome was a step towards a unilateral process
for dealing with damage caused by climate change. This came at a time when PwC
forecast that the rate by which carbon intensity needs to be reduced  globally 
now exceeds  5  per  cent.  per  annum in  order  to  meet  the  international 
commitment to limit global warming to two degrees by 2050. This appears to  be 
an unachievable goal against the current policy framework, especially when you
consider that the rate of reduction was 0.7 per cent. globally in 2011.***

In terms of sector trends, two milestones have been reached in recent  months: 
firstly, the price of onshore wind power has fallen below the cost of coal and
gas power for the first time;  and secondly, English councils have started  to 
recycle more waste  than is  sent to  landfill. These  milestones reflect  the 
broader impact that environmental solutions  business continue to have on  the 
mainstream economy.

Fund Review

The trust  modestly  outperformed  its benchmark  index  during  the  quarter. 
Stantec, the infrastructure consultancy,  made solid progress  on the back  of 
improved  economic  activity  in  the  US  and  news  that  it  had  made  two 
acquisitions which strengthen  its operations. Expectations  of a recovery  in 
infrastructure investment in 2013 provided a boost for Schneider Electric. The
company has recently  implemented a number  of productivity improvements,  has 
excellent emerging market exposure and is well positioned to benefit

from a  cyclical  recovery in  construction  in Europe.  Recycled  auto  parts 
specialist LKQ produced a  solid performance with  the business continuing  to 
benefit from structural growth in the alternative parts market.

In contrast,  RPS  Group  was  de-rated quite  harshly  on  concern  that  the 
Australian resources boom  had peaked, thus  threatening group earnings.  This 
was despite  a robust  third quarter  trading update.  The retraction  of  the 
potentially lucrative West Coast Main Line  rail contract was a major  setback 
for FirstGroup, reigniting concerns  about the company's  debt levels and  the 
potential for further equity issuance.  While we continue to monitor  progress 
at the company, we have been encouraged by steps to improve the  profitability 
of its  North  American  bus  franchises and  believe  the  business  has  the 
potential to strengthen its UK bus business. United Natural Foods ended  lower 
on profit taking after announcing more cautious guidance than expected by  the 
market. The  stock  has  rallied  substantially this  year,  so  a  period  of 
consolidation is to be expected. Shimano also experienced profit taking  after 
announcing third quarter results broadly  in line with expectations.  Weakness 
in the Japanese Yen  also detracting from the  stock's performance, as it  did 
for all our local holdings.

We added  to our  holding  in industrial  and  energy waste  specialist  Clean 
Harbors at a  low valuation. The  company is well  positioned to benefit  from 
tighter industrial  waste  regulation and  structural  growth in  domestic  US 
energy markets, which is boosting demand for recycled oil. 

Investment Outlook

Notwithstanding  the  on-going  problems   associated  with  high  levels   of 
government debt in the West, we are reasonably optimistic about the  prospects 
for 2013. In  recent months  we have seen  a modest  improvement in  sentiment 
towards renewable  energy stocks,  albeit from  a low  base. The  decision  to 
extend the renewable energy  production tax credit  in the US  as part of  the 
fiscal cliff negotiations should improve demand in the wind sector, while  the 
successful listing  of  a  US solar  business  in  December 2012  was  a  good 
indication that investor  interest is  returning. With the  outlook for  China 
improving, we could also  see a recovery in  other investment areas that  have 
been hurt by pricing pressures, such as waste management and metals recycling.
Furthermore, a  generally  more benign  macro  environment could  lead  to  an 
increase in merger and acquisitions  as companies with bloated balance  sheets 
look  to  expand  into  environmental  solutions  sectors.  Thematically,  the 
increased prevalence of extreme weather globally, which has led to sharp rises
in the prices  of soft  commodities, could  lead to  greater opportunities  in 
companies offering  solutions to  the wider  agriculture sectors  (e.g.  smart 
irrigation, etc.). Extreme weather is  expected to occur more frequently  and 
with increased severity  in coming years,  requiring innovative solutions  for 
mitigation and abatement. This is  providing opportunities for companies  from 
across our  investment  spectrum  - infrastructure,  resource  efficiency  and 
demographics.

Charles Thomas
Jupiter Asset Management Limited
Investment Manager
12 February 2013

Total Assets as at 31 December 2012: £33,437,259

Shares in Issue

Shares bought back in the period        1,035,630
Share in issue as at 31 December 2012        34,301,549
Shares held in Treasury at 31 December 2012        3,264,834
Total Voting Rights as at 31 December 2012        31,036,715

                                     Net Asset Value Market Price Premium/
                                     (p)             (p)          (Discount) %
Ordinary (undiluted) excluding       107.73
income/expenses                                      99.00        (8.1)
Ordinary (undiluted) including       108.23                       (8.5)
income/expenses

Portfolio Distribution on 31 December 2012

United Kingdom          26%
North America           40%
Europe                  17%
Japan                   10%
Other                   4%
Cash and fixed interest 3%
                        100%

The Company's exposure to other UK listed investment companies was nil on 31
December 2012.

Top Ten Holdings on 31 December 2012

Company            Country of Listing  % of total assets
Cranswick          United Kingdom      4.4
Novozymes          Denmark             3.7
Wabtec             United States       3.6
Stantec            Canada              3.4
Johnson Matthey    United Kingdom      3.0
Whole Foods Market United States       2.9
Smith A.O          United States       2.6
Emcor Group        United States       2.6
Ricardo Group      United Kingdom      2.5
Valmont            United States       2.5
                                       31.2

Comparative Performance to 31 December 2012

                                          Three    One year % Since launch %
                                          months %
Total Assets*                             2.8      7.0        11.0
MSCI World Small Cap Index (total return) 2.7      10.4       33.3
Ordinary Share NAV                        2.8      7.0        11.0
Ordinary Share Price                      1.0      17.2       (1.0)

* Performance adjusted for share issue/cancellation since launch

Material Events

In April 2012  your Board  announced a  revised discount  control policy  with 
immediate effect. The essence  of that policy  is to use  buybacks to seek  to 
narrow the discount  to net asset  value at which  the Company's shares  trade 
over time, with a view to achieving a position where the Company's share price
does not  materially deviate  from its  net asset  value by  the time  of  the 
Company's Annual General Meeting in 2013. The Board remains committed to  that 
policy.

During the quarter  to 31  December 2012 the  Company repurchased  a total  of 
485,630 Ordinary shares for cancellation.

There were  no material  events  or transactions  that  have impacted  on  the 
financial position of the Company during the period.

The Company's Investment Objective

The Company's investment  objective is  to generate  long-term capital  growth 
through a diverse portfolio of companies providing environmental solutions.

The Company's Investment Policy

Asset Allocation
The Company invests globally  in companies which have  a significant focus  on 
environmental solutions.  Specifically, the  Company  looks to  invest  across 
three key areas: infrastructure, resource efficiency and demographics.

The Company's portfolio  has a  bias towards small  and medium  capitalisation 
companies. It  invests primarily  in securities  which are  quoted, listed  or 
traded on a recognised exchange. However, up to 5 per cent. of the  Company's 
Total Assets (at the time of such investment)
may be invested in unlisted securities.

The individual portfolio manager selects  each stock on its individual  merits 
as an  investment rather  than replicating  the relevant  company's  weighting 
within the Company's benchmark indices. The Company's investment portfolio is
therefore unlikely to represent the constituents of its benchmark indices, but
instead is intended to offer a well-diversified investment strategy focused on
maximising returns from the prevailing economic background.

The individual portfolio manager may  enter into contracts for differences  in 
order to  gain  both long  and  short exposure  for  the Company  to  indices, 
sectors, baskets or individual securities for both investment purposes and for
hedging or efficient portfolio management purposes. The ability to maintain  a 
portfolio of both long and short  positions provides the flexibility to  hedge 
against periods of  falling markets, to  reduce the risk  of absolute loss  at 
portfolio level  and  to  reduce  the volatility  of  portfolio  returns.  The 
portfolio manager may  also invest in  single stock, sector  and equity  index 
futures and options.

Risk is also mitigated by investing  mainly in quoted companies on  registered 
exchanges,
ensuring full  regulatory compliance  for all  underlying quoted  investments. 
There are no specific stock and sector size limitations within the  portfolio, 
but the manager is expected to provide sufficient stock, sector and geographic
diversification to ensure  an appropriate  trade-off between  risk and  return 
within the portfolio. In order to ensure compliance with this objective  there 
is a two tier monitoring system. Firstly, the manager's portfolio is  assessed 
monthly by the Jupiter Asset  Management Limited Performance Committee,  which 
is headed  by  the  Chief  Executive  of  Jupiter  Asset  Management  Limited. 
Secondly, the Board is provided with a detailed analysis of stock, sector  and 
geographic exposures at the Trust's regular Board meetings.

Risk Diversification
The following investment restrictions are observed:

  *no more than  15 per  cent. of  the Total  Assets of  the Company  (before 
    deducting borrowed money)  is lent to  or invested in  any one company  or 
    group (including loans to or shares in the Company's own subsidiaries)  at 
    the time the investment  or loan is made.  For this purpose any  existing 
    holding in the company or group concerned is aggregated with the  proposed 
    investment;

  *distributable income is principally derived from investments. The  Company 
    does not conduct a trading activity which is significant in the context of
    the group as a whole;

  *not more than  10 per  cent., in  aggregate, of  the value  of the  Total 
    Assets of the  Company (before  deducting borrowed money)  is invested  in 
    other investment  companies (including  investment trusts)  listed on  the 
    Official List. Whilst the requirements of the UK Listing Authority permit
    the Company to invest up to this 10 per cent. limit, it is the  Directors' 
    current intention that the Company invests  not more than 5 per cent.,  in 
    aggregate, of  the  value of  the  Total  Assets of  the  Company  (before 
    deducting borrowed money) in such other investment companies; and

  *the Company at all times invests and manages its assets in a way which  is 
    consistent with its object of spreading investment risk.

Gearing
The Company may utilise gearing, at the Directors' discretion, for the purpose
of financing the Company's portfolio  and enhancing Shareholders returns.  In 
particular, the Company may  be geared by bank  borrowings which will rank  in 
priority to the Ordinary Shares for repayment on a winding up or other  return 
of capital. 

The Articles provide  that, without  the sanction  of the  Company in  general 
meeting, the Company may not incur borrowings above a limit of 25 per cent. of
the Company's Total Assets at the time of drawdown of the relevant borrowings.
No credit facility has been negotiated by the Company to date.

The level of any gearing of the Company's Total Assets from time to time  will 
be  disclosed   in   the  monthly   factsheets   which  are   available   from 
www.jupiteronline.com and on request from the Company Secretary.

In accordance with the requirements of the UK Listing Authority, any  material 
changes in  the principal  investment policies  and restrictions  (as set  out 
above) of the Company will only be  made with the approval of Shareholders  by 
ordinary resolution.

Company Information

Year end:   31 March
Results:            interim  results to  30 September  2013  announced 
November 2013;
final results to 31 March 2013, announced June/July 2013

Monthly  fact  sheets  for  the  Company  are  available  for  download   from 
www.jupiteronline.com  and  by  post  or  fax  on  request  from  the  company 
secretarial department.

The Company's Ordinary shares are listed on the London Stock Exchange and  the 
prices are published in the Financial Times under `Investment Companies'.

The Net Asset Values of the Company's Ordinary shares are calculated daily and
can   be    viewed    on    the   London    Stock    Exchange    website    at 
www.londonstockexchange.com (under the heading 'Market News').

For further information, please contact:
Richard Pavry
Investment Trusts
Jupiter Asset Management Limited
rpavry@jupiter-group.co.uk 
020 7314 4822

Faith Pengelly
Company Secretarial Department
Jupiter Asset Management Limited
fpengelly@jupiter-group.co.uk
020 7314 4915

The Company's Registered office is at 1 Grosvenor Place, London SW1X 7JJ.

This  interim  management  statement  has  been  prepared  solely  to  provide 
information to meet the requirements of the UK Listing Authority's  Disclosure 
and Transparency Rules.

By order of the Board
Jupiter Asset Management Limited
12 February 2013

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Jupiter Green Investment Trust PLC via Thomson Reuters ONE
HUG#1677499
 
Press spacebar to pause and continue. Press esc to stop.