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

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 months %	One year %	Since launch %
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
[e-mail]  
020 7314 4822

Faith Pengelly
Company Secretarial Department
Jupiter Asset Management Limited
[e-mail]
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

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Source: Jupiter Green Investment Trust PLC via Thomson Reuters ONE

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