Jupiter European Opportunities Trust PLC : Final Results

           Jupiter European Opportunities Trust PLC : Final Results

                   Jupiter European Opportunities trust Plc

            Annual Financial Report for the year ended 31 May 2013

The Board is  pleased to  announce the Annual  Financial Report  for the  year 
ended 31 May  2013. The full  Annual Report  will shortly be  available to  be 
viewed or downloaded from the Company's website at www.jupiteronline.com

Copies of  the  Annual  Report  will be  submitted  to  the  National  Storage 
Mechanism   and    will   shortly    be    available   for    inspection    at 
www.hemscott.com/nsm.do

                             CHAIRMAN'S STATEMENT

Performance                                 
                                    

During the year under  review the Net  Asset Value (NAV) of  your shares -  in 
other words, their underlying value - rose from 291.05p to 403.58p, a gain  of 
38.7%. For reasons  set out by  Alexander Darwall, your  Fund Manager, in  his 
accompanying Review, this was less than the advance achieved by our benchmark,
the FTSE Europe Total Return ex-UK Index, which returned 43.3%. For the second
successive  year,  therefore,  Alexander  and  his  team  have  not  earned  a 
performance fee for  the management  company which employs  them, even  though 
they worked as hard as ever on your behalf (and mine).

However, the share  price rose by  no less than  59.1%, as a  growing band  of 
wealth managers  appreciated the  outstanding long  term performance  of  your 
Company  and  the   rigorous  investment  process   which  has  created   that 
performance. It  would appear  that many  of them  regard your  Company as  an 
attractive  investment   vehicle  whereby   their   clients  can   gain   from 
participation in some of  the best companies which  Europe, including the  UK, 
has to offer. Such  was the continuing demand  for your Company's shares  that 
they currently trade at a small premium to NAV even though European shares can
hardly be  described as  fashionable.  It may  indeed  be arguable  that  your 
Company is one of the beneficiaries of the Retail Distribution Review, in that
the principal buyers of investment trusts focus on an exceptional  performance 
record and a degree of marketability which ensures that they can build up - or
reduce - sizeable positions in investment trust companies with relative ease.

Growing your Company                             
                                    

As intimated in my  Interim Statement, your Board,  Managers and our  brokers, 
Cenkos, have given extensive consideration as  to how to increase the size  of 
your Company. From shareholders' point of view a larger Company should  become 
more marketable -  in other  words, it  should be easier  to buy  or sell  the 
shares - and the expenses of managing it would be spread over a larger body of
assets, potentially bringing down the  "Ongoing Charges" ratio. But  expanding 
the size  of an  investment company  in one  fell swoop  can be  prohibitively 
expensive.

In the end  we opted for  the low cost  option of issuing  new shares to  meet 
demand, always  at  a  premium  to  NAV so  that  the  interests  of  existing 
shareholders were  not diluted.  Over our  past financial  year, therefore,  a 
total of 4.875  million new shares  were issued raising  £18,352,500 for  your 
Company at minimal expense.  This produces an average  issue price of  376.45p 
per share, which  means that many  buyers are  showing a paper  profit -  most 
satisfactory. Your Board will be seeking your permission at the Annual General
Meeting to renew  the authority to  allot shares and  to disapply  pre-emption 
rights for up to  a third of  the Company's issued  share capital. Whilst  one 
third of the Company's issued share capital is higher than the  disapplication 
of pre-emption rights authority ordinarily recommended by corporate governance
best practice, your Board believes that taking a larger than normal  authority 
is justified in the present circumstances. As  set out above, any use of  this 
authority will be  accretive to  the NAV. Whilst  Shareholders' voting  rights 
will be diluted; your Board believes that this consideration is outweighed  by 
the flexibility that a larger authority  provides. It will also mean that  the 
Company should  save the  costs of  having to  convene more  frequent  general 
meetings in order to obtain further  Shareholder authority. We feel this is  a 
sufficient way of growing the Company.

Meanwhile we and our advisers will  keep under review other ways of  expanding 
your Company as and when suitable opportunities arise.

Gearing                                   
                                      
    

As Alexander mentions in his Review, the level of borrowings ("gearing")  came 
down considerably over the year. Part of this process was natural - as markets
rose the gearing  percentage automatically  declined - but  it also  reflected 
your Managers' view that  a reduced level of  borrowing was appropriate.  Over 
the year, therefore, the gearing ratio came  down from 22% to 16.5%. As  usual 
at this time of  year, your Managers  are negotiating the  renewal of our  £65 
million borrowing facility for another year once it expires in October.

Dividend                                   
                                     

Shareholders will  recall that  it  is not  our  investment objective  to  pay 
dividends, but inasmuch as we end  the year with surplus income, that  surplus 
is paid out to shareholders. As was the case last year, in order to retain our
status as an investment  trust under Section 1158  of the Corporation Tax  Act 
2010 we  are not  permitted to  retain more  than 15%  of eligible  investment 
income. Accordingly  an interim  dividend of  3.5p per  Ordinary Share  (2012: 
1.85p) was  declared  on  15 August  2013  payable  on 27  September  2013  to 
shareholders on the Register of Members on 23 August 2013.

Board Remuneration

Directors' fees have remained unchanged since 1 June 2007. Six years on, it is
clear from independent surveys that your Board is to some degree underpaid  by 
comparison with  investment  companies of  similar  size to  Jupiter  European 
Opportunities Trust. Accordingly it is proposed that the basic Director's  fee 
be increased from £20,000 to £22,000 with a £3,000 supplement for the Chairman
of the  Audit Committee.  In my  case, as  Chairman, the  fee will  rise  from 
£23,000 to £30,000. In total, the new  fee level will still be well below  the 
permitted maximum of £150,000.

The AIFM Directive  

One consequence of  the AIFM Directive  will be the  requirement to appoint  a 
Depositary for your  Company. It is  not clear  what will be  the benefit  for 
shareholders; it is  indisputable that this  impost will add  to the costs  of 
managing your Company. Your Manager,  Jupiter Asset Management, has  meanwhile 
taken the decision to outsource its investment trust accounting function to JP
Morgan, which will also  become the custodian of  the Company's assets. It  is 
not expected that  this should incur  additional expense for  the Company.  We 
understand that JP Morgan would also act as Depositary for all the  investment 
trusts in the Jupiter  stable once the AIFM  Directive requirement comes  into 
force.

Outlook

There is increasing evidence that the United Kingdom economy is recovering and
that Continental Europe is emerging from recession. At the same time there are
expectations that  America's  level  of  "QE"  or  quantitative  easing  (viz. 
printing money) may ease in the near future provided that the economy  expands 
and unemployment falls; meanwhile  the UK and  European authorities expect  to 
maintain, or even increase, their level of QE. As an Australian politician has
recently reminded  us "nobody  can  be the  suppository  of all  wisdom",  but 
investment in  well managed  companies,  with strong  balance sheets  and  the 
potential to grow their businesses on  a worldwide basis, should provide  some 
protection against future eventualities.

H.M. Priestley                                
                                    
Chairman
21 August 2013

                               MANAGER'S REVIEW

The NAV  of the  Company's Ordinary  shares rose  by 38.7%  during the  twelve 
months to 31 May 2013. This compares with a 43.3% rise, in sterling terms,  of 
the FTSE World  Europe ex  UK Total  Return Index.  The sum  of the  Company's 
borrowings was little  changed. At the  year end the  total was  £54.1million. 
These borrowings,  representing  12%  of  net assets  at  year  end,  improved 
returns. Borrowing  costs were  low at  barely  1.2% (2012  - 1.8%)  and  were 
comfortably covered by  the increasing  dividends from companies  held in  the 
portfolio. The  FTSE World  (total return)  index rose  by 29.4%  in  sterling 
terms, The MSCI Latin America Index by  8.2%; the MSCI AC Asia ex-Japan  Index 
by 21.1% and the S&P500 by 29.3%.

The explanation  for the  strength of  European equities  cannot be  found  in 
economic growth. According to the IMF, the European Union's economy contracted
by 0.2%  in 2012;  zero  growth is  forecast for  2013  and only  1.3%  growth 
estimated for 2014. This does not compare well with other parts of the  world. 
Developing Asia (26  countries including  China and India)  boasts figures  of 
6.7%, 7.1% and 7.3% for  those respective years. The  rate of growth in  Latin 
America has slowed.  Nevertheless, the  IMF expects the  Brazilian economy  to 
grow by 3% in 2013 and by a further 4% in 2014. The US economy is also proving
to be much more dynamic with actual or forecast growth rates of 2.2%, 1.8% and
2.9% for  the years  2012, 2013  and 2014  respectively. We  believe the  good 
performance of  European  equities can  be  explained by  two  partly  related 
factors: the announcement in July 2012  by ECB President Mario Draghi that  he 
would intervene  such that  sovereign borrowing  costs remained  low in  those 
countries with poor public finances;  and expectations that corporate  profits 
will continue to  improve in Europe.  According to UBS,  the investment  bank, 
corporate profits in Europe, ex-financials improved slightly in 2012. However,
UBS anticipates  faster progress  in  2013 and  2014 with  corporate  profits' 
growth rates of 8.4% and 10.1% respectively for those years.

The most  obvious  single  explanation  for  your  Company's  underperformance 
against its benchmark in the period  under review is the strongly  underweight 
position in financials, particularly banks. Such was the scale of the rally in
banks' shares that it offset  the 'right' underweight positions in  utilities, 
telecommunications and oil and  gas. In terms of  individual stocks, the  main 
negative contributors were  Aggreko, Vopak and  Standard Chartered. The  first 
two companies suffered pricing pressures, in both cases the result of industry
overcapacity. Regulatory fines imposed on Standard Chartered were damaging and
highlighted the  vulnerability  of  banks  to  political  considerations.  The 
principal positive contributors  to performance were  Wirecard, Reed  Elsevier 
and Experian.  These  companies  all share  certain  characteristics  although 
engaged in totally  different business activities.  They are beneficiaries  of 
digital technology, have extensive multi-national interests and can claim some
unique, strong and  sustainable points  of differentiation  in their  business 
models. Other stocks that  improved performance included Provident  Financial, 
Grenkeleasing and  Syngenta. The  first  two are  'winners' in  the  financial 
sector where  the mainstream  banks are  struggling with  legacy problems  and 
political issues.  Syngenta  remains  a  truly global  company,  a  leader  in 
agro-technology.

There were few outright sales. We sold the position in Takkt, the German  mail 
order company, as growth disappointed; shares in Neopost (the French  franking 
machinery company) were sold as, again, growth rates remain low; likewise,  we 
sold the  position  in  Modern  Times Group  (the  Scandinavian  media  group) 
following poor results; and we sold all the shares we held in Pearson. Pearson
is a  leading  digital-based  education and  publishing  business.  Whilst  we 
recognise the  strength  of  its  assets and  strategy  it  faces  significant 
difficulties in execution. We reduced the position in NovoNordisk, the world's
leading insulin company, following the failure in America to gain approval for
a key new drug. However, we remain convinced that the company enjoys excellent
prospects and has since bought more shares. Indeed, we increased positions  in 
a range  of core  holdings  where new  developments, coupled  with  attractive 
valuations, strengthened our  confidence. Thus  we added to  our positions  in 
Fresenius (as its clinical nutrition business prospers), Experian (as  results 
corroborated our  appreciation  of  its business),  and  Grenkeleasing,  where 
results confirm the success of their business model.

Outlook

Operating margins in Europe  (and indeed capital's share  of GDP) are  already 
high by historic  standards so it  is reasonable to  question whether  further 
increases are realistic. We believe that 'winning' business models can deliver
further   improvements   in   profitability.   For   companies   with   highly 
differentiated products and services where there is evidence of pricing power,
prospects remain good. As never before, 'winning' companies are able to deploy
their advantages worldwide.

A lacklustre economic backdrop is largely irrelevant to our investment process
and our portfolio's  investment prospects.  An understanding  of 'real  world' 
drivers is  critical for  us.  Our focus  on understanding  company  specifics 
underpins our confidence for the future.

Alexander Darwall
Fund Manager
Jupiter Asset Management Limited
21 August 2013

                                  OBJECTIVE

The Company carries on business as an Investment Trust.

The objective of the Company is to invest in securities of European  companies 
and in sectors or  geographical areas which are  considered by the  Investment 
Manager to  offer  good prospects  for  capital growth,  taking  into  account 
economic trends and business development.

The Company's performance is benchmarked against  the FTSE World Europe ex  UK 
Total Return Index.

                              INVESTMENT POLICY

The Investment Manager adopts  a stock picking approach  in the belief that  a 
thorough analysis and understanding of a  company is the best way to  identify 
long-term  superior   growth  prospects.   This  understanding   begins   with 
identifying those  companies  where  the  ownership  structure  and  incumbent 
management are conducive to the realisation  of the aim of achieving  superior 
long-term earnings  growth.  The  Investment Manager  will  seek  to  identify 
companies which enjoy certain key  business characteristics including some  or 
all of the following:

·      a strong management  record and team, and  the confidence that  the 
Investment Manager has in that management's ability to explain and account for
its actions;

·      proprietary  technology and other  factors which indicate  a 
sustainable competitive advantage;

·     a reasonable expectation that demand for their products or  services 
will enjoy long-term growth; and

·       an understanding  that structural  changes are  likely to  benefit 
rather than negatively impact that company's prospects.

There may be sectors which do not enjoy the business characteristics described
above and in such circumstances the  Investment Manager will seek to  identify 
companies that are expected to  generate superior earnings growth within  that 
sector.

In  analysing  potential  investments,  the  Investment  Manager  will  employ 
differing valuation techniques  depending on their  relevance to the  business 
characteristics of a particular company. However, the underlying feature  will 
be the sustainability and growth of free cashflow in the long-term.

Any material change in  the investment policy of  the Company described  above 
may only be made with the approval of Shareholders by an ordinary resolution

                           RISKS AND UNCERTAINTIES

The principal risk factors that may affect the Company and its business can be
divided into the following areas:

Investment Strategy and Share Price Movements - The Company is exposed to  the 
effect of variations in the price of  its investments. A fall in the value  of 
its portfolio will have  an adverse effect on  shareholders' funds. It is  not 
the aim of the Board to eliminate entirely the risk of capital loss; rather it
is its aim to seek capital growth. The Board reviews the Company's  investment 
strategy and the risk of adverse share price movements at its quarterly  board 
meetings taking into account the economic climate, market conditions and other
factors that may have an effect on  the sectors in which the Company  invests. 
There can be  no assurances that  appreciation in the  value of the  Company's 
investments will occur but the Board seeks to reduce this risk.

Foreign Currency  Movements -  The Company  has exposure  to foreign  currency 
through its overseas investments. The Board considers carefully factors  which 
may affect the foreign currency  in which the Company  has an exposure at  its 
quarterly board  meetings  taking  into account  the  economic  and  political 
climate of various regions and the prospects for sterling.

Interest Rates -  The Company has  exposure to cash  which generates  interest 
through interest bearing accounts. The Board is mindful of interest rates when
setting limits on the Company's exposure to cash.

Derivatives  -  The  Company  invests  in  derivatives  from  time  to   time. 
Derivatives may be a riskier investment  than equities as they can  exaggerate 
the return that can  be achieved compared to  investing directly in  equities. 
The Board  has  set limits  on  the amount  of  exposure the  Company  has  to 
derivatives and it reviews these limits at its quarterly board meetings.

Liquidity Risk - This risk can be viewed as the liquidity of the securities in
which the  Company invests  and the  liquidity of  the Company's  shares.  The 
Company may invest in  securities that have a  very limited market which  will 
affect the ability of the Company's Fund Manager to dispose of securities when
he no longer feels 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 it is mindful of the liquidity in
the Company's shares. In addition, the Board seeks the advice of the Company's
brokers, Cenkos, who give advice on ways in which the Board can influence  the 
liquidity in the Company's shares. The Company monitors performance to  ensure 
it is able to meet the financial objectives of the loan repayment.

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 setting 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 a  means  of 
controlling the discount to  Net Asset Value the  Board has established a  buy 
back programme which  is under  constant review as  market conditions  change. 
Further details of  the buy  back programme  can be found  on page  13 of  the 
Report and Accounts under the heading 'Discount to Net Asset Value'.

Regulatory Risk - The Company operates in a complex regulatory environment and
faces a  number  of  regulatory  risks.  A  breach  of  section  1158  of  the 
Corporation Tax Act 2010 could result in the Company being subject to  capital 
gains 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 Manager  could 
also lead to reputational damage or loss. The Board relies on the services  of 
its Company Secretary, Jupiter Asset Management Limited, and its  professional 
advisers to ensure compliance with,  amongst other regulations, the  Companies 
Act 2006 and the UKLA Listing Rules.

Loss of Key  Personnel -  The day-to-day management  of the  Company has  been 
delegated to the Investment Manager. Loss  of the Manager's key staff  members 
could affect  investment  return.  The  Board  is  aware  that  Jupiter  Fund 
Management PLC 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  Manager's  core  accounting  systems,  or  a 
disastrous disruption to its business, could  lead to an inability to  provide 
accurate reporting and  monitoring. The  Manager is  contractually obliged  to 
ensure  that  its  conduct  of  business  conforms  to  applicable  laws   and 
regulations. Details  of  how the  Board  monitors the  services  provided  by 
Jupiter Asset Management Limited  and its associates  are included within  the 
Internal Control section of the Corporate Governance review on page 16 of  the 
Report and Accounts.

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 Manager's statements on
its internal controls and procedures.

Statement of Comprehensive Income for the year ended 31 May 2013

                                      31 May 2013                  31 May 2012
                          Revenue Capital          Revenue    Capital
                           Return  Return   Total   Return     Return    Total
                            £'000   £'000   £'000    £'000      £'000    £'000
Gain/ (loss) on              _                -    (19,068)  (19,068)
investments at fair value    -    94,682 94,682
through profit or loss
Loss on contracts for        _     (237)  (237)     -         -         -
difference
Foreign                      _  (2,747) (2,747)    -   666        666
exchangeloss/(gain) on
loan
Other exchange gain/        165     76      241        (237)      (307)
(loss)                                            (70)
Investment income          8,371  _        8,371        -           6,375
                                                  6,375
Other income                 4  _         4      4  -             4
Total income               8,540  91,774  100,314        (18,639) (12,330)
                                                  6,309
Investment management fee (2,654) _       (2,654)        -          (2,038)
                                                  (2,038)
Other expenses             (696)  _        (696)        -           (555)
                                                  (555)
Total expenses            (3,350) _       (3,350)        -          (2,593)
                                                  (2,593)
Return before finance      5,190         96,964         (18,639)  (14,923)
costs and tax                     91,774         3,716
Finance costs              (630)  _        (630)       -           (936)
                                                  (936)
Return before taxation     4,560  91,774  96,334         (18,639)  (15,859)
                                                  2,780
Taxation                   (466)  _       (466)        -           (464)
                                                  (464)
Return after taxation          91,774  95,868                 (16,323)
                          4,094                  2,316   (18,639)
Return per Ordinary share            118.32p                 (20.51)p
                          5.05p   113.27p         2.91p   (23.42)p

The total column of this statement is the statement of comprehensive income of
the Company prepared in accordance with IFRS. The supplementary revenue return
and capital return columns are both  prepared under guidance published by  the 
Association of Investment Companies ('AIC').

The return after taxation is also the total comprehensive profit for the year.

All revenue and capital  items in the above  statement derive from  continuing 
operations. No operations were acquired or discontinued during the year  apart 
from the liquidation of the subsidiary.

Statement of Financial Position as at 31 May 2013

                                                          2013     2012
                                                         £'000    £'000
Non current assets
Investments held at fair value through profit or loss  381,838  280,022
Current assets
Receivables                                              3,268    4,892
Cash at bank                                            12,009      659
                                                        15,277    5,551
Total assets                                           397,115  285,573
Current liabilities                                   (56,314) (57,520)
Total assets less current liabilities                  340,801  228,053
Capital and reserves
Called up share capital                                    844      795
Share premium                                           59,589   41,286
Special reserve                                         33,687   33,687
Capital redemption reserve                                  45       45
Retained earnings                                      246,636  152,240
Total equity                                           340,801  228,053
Net Asset Value per Ordinary share                     403.58p  291.05p

Statement of Changes in Equity as at 31 May 2013

                                                      Capital
                             Share   Share Special Redemption Retained
For the year ended         Capital Premium Reserve    Reserve Earnings   Total
31 May 2013                  £'000   £'000   £'000      £'000    £'000   £'000
1 June 2012                    795  41,286  33,687         45  152,240 228,053
Net profit for the year          -       -       -          -   95,868  95,868
Ordinary share issue            49  18,303       _          _        -  18,352
Dividends declared and           -       -       -          -  (1,472) (1,472)
paid
Balance at 31 May 2013         844  59,589  33,687         45  246,636 340,801

                                                     Capital
                            Share   Share Special Redemption Retained
For the year ended        Capital Premium Reserve    Reserve Earnings    Total
31 May 2012                 £'000   £'000   £'000      £'000    £'000    £'000
1 June 2011                   798  41,286  34,376         42  172,780  249,282
Net loss for the year           -       -       -          - (16,323) (16,323)
Ordinary share                (3)       -   (689)          3        -    (689)
cancellation
Dividends declared and          -       -       -          -  (4,217)  (4,217)
paid
Balance at 31 May 2012        795  41,286  33,687         45  152,240  228,053

Cash Flow Statement for the year ended 31 May 2013

                                                                2013      2012
                                                               £'000     £'000
Cash flows from operating activities
Purchases of investments                                    (62,358)  (88,353)
Sales of investments                                          54,696    75,089
Investment income received                                     8,104     6,165
Interest received                                                  3         5
Investment management fee paid                               (2,444)   (2,559)
Investment performance fee paid                              *        (4,237)
Payment to CFD counterparty                                  (530)           -
Other cash expenses                                            (692)     (597)
Cash outflow from operating activities before finance
costs and taxation                                           (3,221)  (14,487)
Finance costs                                                  (617)     (868)
Taxation                                                       (890)     (332)
Net cash outflow from operating activities                   (4,728)  (15,687)
Financing activities
Ordinary shares issued                                        18,352         -
Ordinary shares purchased and cancelled                            -     (689)
Dividend paid                                                (1,472)   (4,217)
Short-term loans received                                    205,541   241,080
Short-term loans repaid                                    (205,541) (221,052)
Increase /(decrease) in cash                                  12,152     (565)
Cash and cash equivalents at start of year                     (384)       488
Realised gain/(loss) on foreign currency                         241     (307)
Cash and cash equivalents at end of year                      12,009     (384)

NOTES:

1. Income

                                        2013 2012
                                        £'000 £'000
Income from investments
Dividends from United Kingdom companies 3,673 2,434
Dividends from overseas companies       4,698 3,941
                                        8,371 6,375
Other income
Deposit interest                            4     4
Foreign exchange gains/(losses)           165  (70)
                                          169  (66)
Total income                            8,540 6,309
Total income comprises
Dividends                               8,371 6,375
Interest                                    4     4
Foreign exchange gains/(losses)           165  (70)
                                        8,540 6,309
Income from investments
Listed in the UK                        3,673 2,434
Listed overseas                         4,698 3,941
                                        8,371 6,375

2 Reconciliation of net return before  finance costs and taxation to net  cash 
inflow from operating activities

                                                                 2013     2012
                                                                £'000    £'000
Net return before finance costs and taxation                   96,964 (14,923)
(Gain)/loss on investments                                   (94,682)   19,068
Realised (gain)/loss on foreign currency                        (241)      307
Foreign exchange loss/(gain) on loans                           2,747    (666)
Purchases of investments                                     (62,358) (88,353)
Sales of investments                                           58,227   75,089
Increase in prepayments and accrued income                      (663)    (209)
Decrease in other creditors and accruals                      (3,215)  (4,800)
Net cash outflow from operating activities before interest    (3,221) (14,487)
and taxation

3.Related parties

Mr Darwall is an employee of  Jupiter Asset Management Limited. Jupiter  Asset 
Management Limited  and Jupiter  Administration  Services Limited,  a  company 
within the same group as Jupiter Asset Management Limited, receive  investment 
management and administration fees as set out below.

Jupiter  Asset  Management  Limited   is  contracted  to  provide   investment 
management services to the  Company (subject to termination  by not less  than 
one year's notice by either party) for a quarterly fee of 0.1875% of the total
assets of the Company, excluding the value of any Jupiter managed investments,
payable in arrears on 31 May, 31 August, 30 November and the last calendar day
of February. The Management fee for the year was £2,654,000 (2012: £2,038,000)
with £739,000 outstanding as at 31 May 2013 (2012: £529,000).

Jupiter Asset Management Limited is also entitled to an investment performance
fee which is based on the out-performance of the Net Asset Value per  Ordinary 
share over the total return on the  Benchmark Index, the FTSE World Europe  ex 
UK Total Return  Index in an  accounting period. Any  performance fee  payable 
will equal 15% 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 higher of  (a) 
the Net  Asset Value  per  Ordinary share  on the  last  business day  of  the 
previous accounting period; (b) the Net Asset Value per Ordinary share on  the 
last day of a period in respect of which a performance fee was last paid:  and 
(c) 100p. In each  case the values of  (a), (b) and (c)  are increased by  the 
percentage by  which the  total return  of the  Benchmark Index  increases  or 
decreases during the calculation period.  The total amount of any  performance 
fee payable in respect  of one accounting  period is limited  to 4.99% of  the 
Total Assets of the Company. No performance fee was payable for the year ended
31 May 2013 (2012: £nil).

Jupiter Administration Services Limited is contracted to provide  secretarial, 
accounting and administrative  services to the  Company for an  annual fee  of 
£71,000 adjusted  each  year in  line  with  the Retail  Price  Index  payable 
quarterly (2012: £69,000). None of the fee payable for the year ended
31 May 2013 was outstanding at the year end (2012: nil).

The Company  has  invested from  time  to time  in  funds managed  by  Jupiter 
Investment Management Group Limited or its subsidiaries. The only such holding
as at 31 May  2013 was East  European Food Fund  representing 0.007% of  total 
investments (2012: 0.1% of total investments).

4. Going Concern

The Company's business activities, capital structure and borrowing facilities,
together with the factors likely to affect its future development, performance
and position are set out in the Manager's  Review on page 8 and the Report  of 
the Directors on pages 11 to 19 of the Reports and Accounts. In addition, Note
13 to the financial statements includes the Company's objectives, policies and
processes for managing its capital; its financial risk management  objectives; 
details of its  financial instruments; and  its exposures to  credit risk  and 
liquidity risk.

The  Company's  assets  consist  mainly   of  securities  which  are   readily 
realisable, its  ongoing expenses  are  low relative  to  its net  assets  and 
therefore the directors  consider that the  Company has appropriate  financial 
resources to  enable  it  to  meet  its  day-to-day  working  capital 
requirements and  to continue  in operational  existence for  the  foreseeable 
future. Thus they continue to adopt  the going concern basis of accounting  in 
preparing the annual financial statements.

5. Directors' Responsibilities for the Financial Statements

The Directors are responsible  for preparing the  Annual Report and  financial 
statements in accordance with applicable law and regulation.

Company law requires the  Directors to prepare  financial statements for  each 
financial year. Under that law the Directors have elected to prepare financial
statements in accordance with  Internal Financial Reporting Standards  (IFRSs) 
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 profit and  loss of the  Company for  that 
period. In preparing  those financial statements,  the Directors are  required 
to:

i.select suitable accounting policies and then apply them consistently; 

ii.present information,  including  accounting  policies, in  a  manner  that 
    provides relevant, reliable, comparable and understandable information;

iii.make judgments and estimates that are reasonable and prudent; 

iv.state whether the  financial statements have  been prepared in  accordance 
    with IFDSs  as adopted  by the  European Union,  subject to  any  material 
    departures disclosed and explained in the financial statements; and

v.prepare the financial statements  on the going concern  basis unless it  is 
   inappropriate to presume that the Company will continue in business. 

The Directors are responsible for  keeping proper 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.

The Directors, who are listed on page  3 of the Report & Accounts, confirm  to 
the best of their knowledge that:

(i)         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; and

(ii)        the  Report of  the  Directors 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.

By Order of the Board
H M Priestley
Chairman
21 August 2013

The annual report will be sent to those registered shareholders who have
elected to receive a copy. Copies may be obtained from the registered office
of the Company at 1 Grosvenor Place, London, SW1X 7JJ.

The Annual General Meeting of the Company is scheduled to take place at 10.30
a.m. on Thursday, 3 October 2013 at the Company's registered office.

By order of the Board
Jupiter Asset Management Limited
Secretaries

Enquiries:
Celia Whitten
Jupiter Asset Management Limited
020 7412 5565

Richard Pavry
Jupiter Asset Management Limited
020 7412 0703

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Source: Jupiter European Opportunities Trust PLC via Thomson Reuters ONE
HUG#1724262