Jupiter European Opportunities Trust PLC : Half...

Jupiter European Opportunities Trust PLC
Unaudited Half Yearly Results
for the six months to 30 November 2012

Financial Highlights for the six months to 30 November 2012
Capital Performance
	30 November	31 May
	2012	2012	% Change
Total Assets less Current Liabilities (£'000)	277,151	231,584	+18.9*
FTSE World Europe ex-UK Total Return Index**	719.21	596.16	+20.6
Ordinary Share Performance
	30 November	31 May
	2012	2012	% Change
Net Asset Value (pence)	346.14	291.05	+18.9
Mid Market Price (pence)	350.25	257.75	+35.9
Premium/(discount) to Net Asset Value (%)	1.2	(11.4)

** Adjusted for the issue of shares during the period.
** This document contains information based on the FTSE World Europe ex UK Total Return Index. 'FTSE®' is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited ('FTSE') under licence. The FTSE World Europe ex UK Total Return Index is calculated by FTSE. FTSE does not sponsor, endorse or promote the product referred to in this document and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. All copyright and database rights in the index values and constituent list vest in FTSE.

Chairman's Statement

Equity markets recovered strongly during the period under review, not least those of Continental Europe. As mentioned in Alexander Darwall's Manager's Review, part of the credit goes to the President of the European Central Bank, Mario Draghi, who told a London conference last July that the Bank would do whatever was needed to ensure the survival of the euro "and, believe me, it will be enough". Markets were further encouraged when both the American and European central banks promised an open-ended commitment to monetary easing, with Mr. Bernanke, Chairman of the Federal Reserve Bank, linking the programme to a reduction in unemployment to 6.5 per cent. (currently it stands at 7.7 per cent.). Both the new Chinese and Japanese administrations appear determined to go for growth.

Thus the net asset value of your Company's shares rose by 18.9 per cent. over the six month period, slightly underperforming our benchmark, the FTSE World Europe ex-UK Total Return Index.

Growing your Company

Your Board and Manager have for a long time been seeking ways to grow your Company over and above its organic growth. There are several ways of doing this. One is to acquire another, underperforming, investment trust from within our peer group; but so far any opportunities that might have come our way have quickly evaporated.

Other methods include issuing new shares with warrants, offering a new class of equity, or issuing convertible stock.

Your Board and Manager keep all these possibilities under review; but for the time being the cheapest, least dilutive, and most straightforward way of enlarging your Company is by issuing new shares at a premium to net asset value. The superior relative long term performance of your Company, coupled with a wider shift in market sentiment towards European equities, has attracted additional buying interest in your shares. Such was the demand for shares that by the end of the period your shares were standing at a premium to asset value.  Since 30 November we have issued 1,875,000 shares at a small premium to asset value, raising a total (to date) of £6,565,165 in cash without diluting existing shareholders.

One benefit of a larger Company is that the expenses of running it are spread over a larger number of shares, bringing down our Ongoing Charges (what used to be known as our Total Expense Ratio, or TER) by a tiny amount each time an issue takes place.

Under Resolution 10 at our last Annual General Meeting, shareholders gave authority to the Board to allot (i.e. issue) up to 26,257,942 Ordinary Shares by this means, equivalent to roughly 33 per cent. of the shares then in issue. We are able to issue, without the need to publish a new prospectus, new shares up to 10 per cent. of the shares in issue over the last 12 months and, as of today, are still some way short of this figure.

Retail Distribution Review

This regime began on 1 January this year. So far it is not clear what effect, if any, it is having on demand for investment trust shares generally. I hope there will be more to say on this subject at the end of our financial year.

AIFM Directive

The new "Alternative Investment Fund Managers Directive" coming out of Europe is due to be implemented in 2013. It is still not clear how this is going to affect investments trusts in all respects and what benefit, if any, this will bring to investment trust shareholders; the only certainty is that it will add to management and administration costs. You may have to suffer extra paragraphs about it in the Directors' Report in due course. Once again, we hope to be wiser six months from now.

Outlook

We read recently that UK pension funds now have a greater percentage of their portfolios invested in bonds than in shares - at a time when the majority of central bankers and politicians are bent on getting the global economy moving again, even if this results in higher consumer price inflation, which should benefit equities more than fixed interest investments. Back in the 1960s George Ross Goobey, Manager of the Imperial Tobacco Pension Funds, decided that there was better value, as well as superior yields, to be found in equities than in gilts; and over time he was proved correct. Recent articles have suggested that the so-called "cult of the equity" is dead. It could be, as with Mark Twain, that reports of its demise may turn out to be an exaggeration, in which case there would seem to be further upside in equity markets even if there are further cliffs - fiscal and otherwise - to be climbed.

H M Priestley
Chairman
22 January 2013

Manager's Review

The Net Asset Value of the Company's Ordinary shares rose by 18.9 per cent. during the six months to 30 November 2012. This compares with a 20.6 per cent. rise, Sterling adjusted, for the FTSE World Europe ex-UK Index. The Company's total borrowings barely changed during the period under review being £52 million at 30 November representing gearing of 18.8 per cent.

The FTSE World (total return) Index improved by 8.6 per cent., whilst your Company's benchmark, the FTSE World Europe ex-UK Total Return Index, rose by 20.6 per cent. The MSCI Latin America Index was 2.4 per cent. higher; the MSCI AC Asia ex-Japan Index was up 11 per cent. It is not immediately obvious why Europe's stock markets should have enjoyed such a good relative performance. Corporate earnings estimates were revised down during the course of 2012: according to UBS (the investment bank), 2012 estimates for European profits growth, ex-UK and ex-financials, dropped from around 7 per cent. to 2.2 per cent. over the course of 2012; a further 10.8 per cent. earnings growth is forecast for 2013. The political backdrop deteriorated with the introduction of some anti-business policies and the failure to tackle Europe's chronic labour inflexibility. Energy policy, too, is a long-term threat to Europe's competitiveness where a high cost energy policy contrasts with developments in America. Energy-intensive businesses in America have received a tremendous boost from the benefit of low cost shale oil and gas. Yet Europe's stock markets performed well. We believe that the spur to this good performance was ECB President, Mario Draghi's announcement in July that he would intervene to keep interest rates low; the ECB's main refinancing rate dropped a further 0.25 per cent. to 0.75 per cent., a rate that compared with 1.5 per cent. twelve months earlier. This 'dirigiste' intervention was, surprisingly perhaps, applauded by the markets. For many reasons there is a low correlation between GDP and stock market performance and the increasing globalisation of Europe's businesses is one important reason. We estimate that over half of the earnings of the companies currently in the portfolio are derived outside Europe. This global presence allows many companies to benefit from both the cost and revenues opportunities that this affords.

There were two main reasons for your Company's slight underperformance. The most obvious was the underweight position in financials. Banks' shares rallied; moreover, the politicians have 'levelled the playing field' by penalising the 'good' banks and supporting the 'bad' banks. Thus the banks that we consider to be of good quality have not performed well. A second reason for the underperformance was indifferent stock-picking. The recent share price performance of Novozymes, the world leading industrial enzymes company, and one of your Company's largest investments, has been disappointing. However, the business model remains strong: it is a singularly impressive company in its area of activity. For this reason it is retained as a core holding. Another poorly performing stock was Fugro. The company has suffered management ructions; it is not clear that the business is delivering as we would hope. But there were positive factors to offset these performance drivers: some good performing stocks and gearing. The 'winners' in the portfolio fall into three (sometimes overlapping) categories: 'global winners', digital 'plays' and focused niche companies. Syngenta, the most significant contributor to performance, is a world leading technology supplier to the agricultural industry. It is strongly cash generative; it is able to deploy its technology in many regions of the world and many different segments; it can harvest synergies that its competitors find hard to match. It is typical of what we try to find. Reed Elsevier is a good example of a digital 'play' - although it is a global winner also - and was another significant contributor to performance. Reed Elsevier controls information - legal, scientific and personal. Digital technology allows it to disseminate this more widely to interested parties and to monetise this accordingly. Wirecard, like Reed Elsevier, is a 'digital play', offering internet and payment processing services and it has benefited from the increase in online retailing. Provident Financial fits in the category of focused, niche play. As a lender to the non-standard segment of the UK consumer lending market it is gaining market share as the mainstream lenders retreat from what is for them a fringe activity.

There were only four significant outright sales in the reporting period. Takkt, the German mail order business, was sold as it is failing to develop a convincing global strategy; Neopost, a manufacturer of mail room equipment, was sold as growth rates continued to disappoint; shares in Standard Chartered were sold following the imposition of a fine by the New York state regulator; and we disposed of the holding in Modern Times Group (the Scandinavian broadcaster) as the growth rate stalled, raising questions about the quality of the business model. Three of the major positions were reinforced: we increased the holding in NovoNordisk, the world leader in the treatment of diabetes, when temporary setbacks presented good buying opportunities. Likewise, the positions in Reed Elsevier and Fresenius SE were strengthened. In all cases we believed that valuations were attractive. There were only two new positions of any significance, Wartsila and SCA. The former is a world leader in the manufacture of generating equipment for power plants and marine propulsion. Its products complement renewable energy generation and meet the need for cleaner emissions. SCA is a global hygiene (tissue and other papers) and forest products company, which is pursuing a brand strategy that is improving the quality of the business.

Outlook

It is, as ever, difficult and unwise to speculate unduly about future macro developments. Our investment decisions are always micro focused; the success or otherwise of your Company depends to a great extent on stock picking. Nevertheless, the context is framed by major macro trends. Three of the identifiable trends in Europe are likely to continue: pernicious anti-business action (notably in France); the Draghi-led ECB's 'cheap' money policy; and Europe's costly energy policy. Globally, the key positive factor which is vital to our investment strategy is the continuing growth in world trade. The protectionist impulses in America have been blunted by the competitive surge in American industry, itself largely due to cheaper energy in the form of shale gas. For this reason, we still believe that the prizes for companies that offer distinctive, valuable, and competitive products and services in many different economic regions are considerable.

Alexander Darwall
Jupiter Asset Management Limited
22 January 2013

Statement of Comprehensive Income
For the six months to 30 November 2012 (unaudited)

	30 November 2012			30 November 2011
	Revenue	Capital		Revenue	Capital
	Return	Return	Total	Return	Return	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(loss) on investments at fair
value through profit or loss (Note 2)	-	48,445	(48,445)	-	(41,465)	(41,465)
Foreign exchange loss on loan	-	(515)	(515)	-	-	-
Currency exchange gain/(loss)	-	36	36	-	(193)	(193)
Investment income	2,848	-	2,848	1,796	-	1.796
Total income	2,848	47,966	50,814	1,796	(41,658)	39,862
Investment management fee	(1,203)	-	(1,203)	(950)	-	(950)
Other expenses	(313)	-	(313)	(312)	-	(312)
Total expenses	(1,516)	-	(1,516)	(1,262)	-	(1,262)
Return before finance costs
and tax	1,332	47,966	49,298	534	(41,658)	(41,124)
Finance costs	(344)	-	(344)	(316)	-	(316)
Return before taxation	988	47,966	48,954	218	(41,658)	(41,440)
Taxation	(104)	-	(104)	14	-	14
Return after taxation	884	47,966	48,850	232	(41,658)	(41,426)
Return per Ordinary share (Note 3)	1.11p	60.28p	61.39p	0.29p	(52.32)p	(52.03)p

The total column of this statement is the income statement of the Group 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'). All items in the above statement derive from continuing operations.

The Company's wholly owned subsidiary, JEOT Securities Limited was placed into members' voluntary liquidation on 24 July 2012. Other than this, no operations were discontinued or acquired during the period.

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

Statement of Financial Position
As at 30 November 2012
	30 November	31 May
	2012	2012
	(unaudited)	(audited)
	£'000	£'000
Non current assets
Investments held at fair value through profit or loss	326,171	280,022
Current assets
Receivables	3,678	4,892
Cash at bank	1,415	659
	5,093	5,551
Total assets	331,264	285,573
Current liabilities	(54,113)	(57,520)
Total assets less current liabilities	277,151	228,053
Capital and reserves
Called up share capital	800	795
Share premium	43,001	41,286
Special reserve	33,687	33,687
Capital redemption reserve	45	45
Retained earnings (Note 6)	199,618	152,240
Total equity	277,151	228,053
Net Asset Value per Ordinary share (Note 7)	346.14p	291.05p

Statement of Changes in Equity

For the six months to 30 November 2012

				Capital
	Share	Share	Special		Redemption	Retained
For the six months to	Capital	Premium	Reserve		Reserve	Earnings	Total
30 November 2012	£'000	£'000	£'000		£'000	£'000	£'000
1 June 2012	795	41,286	33,687		45	152,240	228,053
Net gain for the period	-	-	-		-	48,850	48,850
Ordinary share issue	5	1,715	-		-	-	1,720
2012 interim dividend	-	-	-		-	(1,472)	(1,472)
Balance at 30 November 2012	800	43,001	33,687		45	199,618	277,151
					Capital
	Share	Share	Special		Redemption	Retained
For the six months to	Capital	Premium	Reserve		Reserve	Earnings	Total
30 November 2011	£'000	£'000	£'000		£'000	£'000	£'000
1 June 2011	798	41,286	34,376		42	176,311	252,813
Net loss for the period	-	-	-		-	(41,426)	(41,426)
Ordinary share cancellation	(3)	-	(689)		3	-	(689)
2011 interim dividend	-	-	-		-	(4,217)	(4,217)
Balance at 30 November 2011	795	41,286	33,687		45	130,668	206,481

Cash Flow Statement
For the six months to 30 November 2012 (unaudited)
		2012	2011
		£'000	£'000
Cash flows from operating activities
Purchases of investments		(21,436)	(54,863)
Sales of investments		23,005	44,853
Realised gains/(losses) on foreign currency		36	(193)
Investment income received		3,348	2,148
Interest received		1	2
Investment management fee paid		(1,114)	(1,524)
Investment performance fee paid		-	(4,237)
Other cash expenses		(350)	(404)
Dividend paid		(1,472)	(4,217)
Cash inflow/(outflow) from operating activities before finance costs and taxation		2,018	(18,435)
Finance costs paid		(306)	(291)
Taxation (paid)/received		(4)	278
Net cash inflow/(outflow) from operating activities		1,708	(18,448)
Financing activities
Ordinary shares cancelled		-	(689)
Short-term loans received		102,817	89,000
Short-term loans repaid		(102,726)	(74,000)
Increase/(decrease) in cash		1,799	(4,137)
Cash and cash equivalents at start of period		(384)	488
Cash and cash equivalents at end of period		1,415	(3,649)

Notes to the Financial Statements for the six months to 30 November 2012

1.  Accounting Policies

The accounts comprise the unaudited financial results of the Company for the six months to 30 November 2012. The accounts are presented in pounds sterling, as this is the functional currency of the Company.

During the period JEOT Securities Limited, the Company's wholly owned subsidiary, was placed into members' voluntary liquidation.

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.

A summary of the principal accounting policies, all of which have been applied consistently throughout the period, is set out below:

Revenue recognition

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

Revenue includes dividends from investments quoted ex-dividend on or before the balance sheet date.

Deposit and other interest receivable is accounted for on an accruals basis.

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 AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the Statement of Comprehensive Income.

An analysis of retained earnings broken down into revenue items and capital items is given in Note 6. The Company's Articles prevent the distribution of capital profits. In arriving at this breakdown, expenses have been presented as revenue items except for that part of any Investment performance fee which is deemed by the Directors to relate to the capital outperformance of the Company's investments. Any such amount is charged to capital.

Investments

All investments are classified as held at fair value through profit or loss. Changes in the fair value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the statement of comprehensive income as 'Gains on investments at fair value through profit or loss'. The fair value of listed investments is based on their quoted bid market price at the balance sheet date without any deduction for estimated future selling costs. All purchases and sales are accounted for on a trade date basis.

2.  Gains on investments

	Six months to	Six months to
	30 November 2012	30 November 2011
	£'000	£'000
Net gain/(loss) realised on sale of investments	5,843	(8,185)
Movement in investment holding gains	42,602	(33,280)
Gains/(loss) on investments	48,445	(41,465)

3.  Return per Ordinary Share
The return per Ordinary share figure is based on the net gain for the six months of £48,850,000 (six months to 30 November 2011: Loss £41,426,000) and on 79,573,348 Ordinary shares (six months to 30 November 2011: 79,625,230), being the weighted average number of Ordinary shares in issue during the period.

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

	Six months to	Six months to
	30 November 2012	30 November 2011
	£'000	£'000
Net revenue profit	884	232
Net capital profit/(loss)	47,966	(41,658)
Net total profit/(loss)	48,850	(41,426)
Weighted average number of Ordinary
shares in issue during the period	79,573,348	79,625,230
Revenue return per Ordinary share	1.11p	0.29p
Capital return per Ordinary share	(60.28)p	(52.32)p
Total return per Ordinary share	61.39p	(52.03)p

4.  Transaction costs
During the period expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains/(losses) on investments in the Statement of Comprehensive Income. The total costs were as follows:

	Six months to	Six months to
	30 November 2012	30 November 2011
	£'000	£'000
Purchases	53	148
Sales	23	55
	76	203

5.  Comparative information
The financial information contained in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the six months to 30 November 2012 and 30 November 2011 has not been audited.

The information for the year ended 31 May 2012 has been extracted from the latest published audited financial statements. The audited financial statements for the year ended 31 May 2012 have been filed with the Register of Companies. The report of the auditors on those accounts contained no qualification or statement under section 498(2) of the Companies Act 2006.

6.  Retained earnings

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

	Revenue	Capital	Total
	£'000	£'000	£'000
At 1 June 2012	4,341	147,899	152,240
Net return for the period	884	47,966	48,850
Dividend paid	(1,472)	-	(1,472)
At 30 November 2012	3,753	195,865	199,618

7.  Net Asset Value per Ordinary share
The Net Asset Value per Ordinary share is based on the net assets attributable to the equity shareholders of £277,151,000 (31 May 2012: Group £231,584,000) and on 80,069,523 Ordinary shares (31 May 2012: 79,569,523), being the number of Ordinary shares in issue at the period end.

8. Related Party Transactions
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 years notice by either party) for a quarterly fee of 0.1875 per cent. of the net 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.

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 per cent. of the amount by which the increase in the  Net Asset Value per Ordinary share (plus any dividends per Ordinary share paid or payable and any accrual for unpaid performance fees for the period) exceeds the 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 per cent. of the Total Assets of the Company.

  Jupiter Administration Services Limited is contracted to provide secretarial, accounting and administrative services to the Company for an annual fee of £71,274, adjusted each year in line with the Retail Price Index, payable quarterly.

  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 30 November 2012 was East European Food Fund representing 0.01 per cent. of total investments.

Planned Life of the Company
The Articles of Association provide that at the annual general meeting of the Company to be held in 2014 an ordinary resolution shall be proposed that the Company shall continue in existence as an investment trust. If the resolution is passed, a similar ordinary resolution will be proposed at every third annual general meeting thereafter. If that resolution is not passed at any of those meetings, the Directors shall, within 90 days of the date of the resolution, put forward to Shareholders proposals (which may include proposals to wind up or reconstruct the Company) whereby Shareholders are entitled to receive cash in respect of their shares equal as near as practicable to that to which they would be entitled on a liquidation of the Company at that time (and whether or not Shareholders are offered other options under the proposals).

Dividend Policy
The Directors intend to manage the Company's affairs to achieve Shareholder returns through capital growth rather than income.  It is therefore not expected that the Company will pay an annual dividend.  However, in order to qualify for approval by HM Revenue and Customs as an investment trust, no more than 15 per cent. of the income which the Company derives from Ordinary shares or securities can be retained in respect of each accounting period.  As such, there are circumstances in which the Company could be obliged to declare a dividend to Ordinary Shareholders.

Discount Control Policy
The Directors have always believed that it is not in Shareholders' interest for the Company's shares to trade at a significant discount to their prevailing estimated net asset value.  The Directors review the level of the discount between the middle market price of the Company's Ordinary shares and their Net Asset Value on a regular basis.

Shareholder authority is in place, up to the next Annual General Meeting in October 2013 when renewal will be sought, for the company to purchase up to 14.99 per cent. of its own shares at a price that is not less than 1p and not more than 5 per cent. above the average of the middle market quotations for the five business days preceding the day of purchase.  The Board believes that the power to purchase its own shares in the market will potentially benefit all shareholders of the Company.  The purchase of Ordinary shares at a discount to the underlying Net Asset Value would enhance the NAV on the remaining Ordinary shares if they were cancelled on repurchase or reissued at a lesser discount than that on which they were first repurchased.  In the last 3 years the following shares have been bought back:

Date			No. of shares	Price	NAV
4	February 2010		115,000	185.09p	213.83p
5	February 2010		150,000	184.00p	213.83p
8	February 2010		100,000	182.50p	213.83p
8	February 2010		65,000	184.25p	213.83p
9	February 2010		35,000	182.00p	213.73p
16		February 2010	125,000	186.00p	218.33p
7	April 2010		275,000	212.00p	246.89p
9	April 2010		130,000	214.00p	246.89p
16		April 2010	155,000	216.98p	247.37p
11		July 2011	250,000	273.97p	299.97p
			1,400,000

Interim Management Report

Related Party Transactions

During the first six months of the current financial year no transactions with related parties have taken place which have materially affected the financial position or performance of the Company during the period.  Details of related party transactions are contained in the Annual Report & Accounts 2012 and in Note 8 to this report.

Principal Risks and Uncertainties

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. Other key risks faced by the Company relate to foreign currency movements, interest rates, use of derivatives, liquidity risk, gearing risk, the discount to Net Asset Value, regulatory risk, loss of key personnel, operation and financial risks. A detailed explanation of the Risks and Uncertainties facing the Company can be found on page 13 under the heading 'Risks and Uncertainties' in the Company's report and accounts for the year to 31 May 2012.

Directors' Responsibility Statement

In accordance with Chapter 4 of the Disclosure and Transparency Rules the Directors confirm that to the best of their knowledge:

1. the condensed set of financial statements has been prepared in accordance with applicable UK accounting standards and gives a true and fair view of the assets, liabilities, financial position and return of the Company;  

2. the half-yearly report includes a fair review of the important events that have occurred during the first six months of the financial year and their impact on the financial statements; 

3. the Directors' Statement of Principal Risks and Uncertainties shown above is a fair review of the principal risks and uncertainties for the remainder of the financial year; and  

4. the half-yearly report includes details on related party transactions. 

The half-yearly financial report for the six months to 30 November 2012 comprises the Chairman's Statement, Manager's Review, the Directors' Responsibility Statement and a condensed set of financial statements, and has not been audited or reviewed by the auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

By Order of the Board

H M Priestley
Chairman
22 January 2013

Investment Objective and Restrictions

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 will at all times invest and manage its assets with the objective of spreading risk and in accordance with its published investment policy as set out in the Annual Report 2012. In order to comply with the Listing Rules:

1. the Company will not conduct any trading activity which is significant in the context of its group as a whole; and 

2. the Company will not invest more than 10 per cent. of its Gross Assets in other listed closed-ended investment funds, whether managed by the Manager or not, except that this restriction shall not apply to investments in listed closed-ended investment funds which themselves have stated investment policies to invest no more than 15 per cent. of it Gross Assets in other closed-ended investment funds. 

The Company does not make investment in other closed-ended funds. For the avoidance of doubt, this means that the Company will not invest more than 15 per cent. of its Gross Assets in other listed closed-ended investment funds, notwithstanding whether or not such funds have stated policies to invest no more than 15 per cent. of these gross assets in other closed-ended investment funds.

The foregoing represents the full text of the Half-Yearly Report for the six months to 30 November 2012, which will be posted to those shareholders who have requested to receive a copy shortly.  The Report will also be available for download from the Company's website (www.jupiteronline.com) or on request from the Company Secretary.

The interim report for the 6 months ended 30 November 2012 has not been reviewed by the Company's auditors.

By order of the Board

Jupiter Asset Management Limited

Secretaries
Enquiries:
Richard Pavry
Jupiter Asset Management Limited
020 7412 0703

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Source: Jupiter European Opportunities Trust PLC via Thomson Reuters ONE

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