Jupiter Green Investment Trust PLC : Interim Ma...

Jupiter Green Investment Trust PLC
Interim Management Statement for the three months to 31 December 2011

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 2011.  

Investment Manager's Report

Performance Review
For the three months ended 31 December 2011 the total return for the Trust was 3.8 per cent.* compared to a return of 8.9 per cent.* for the Trust's benchmark index, the MSCI World Small Cap Index.

Market and Fund Review

The December quarter was highly volatile for global stock markets.  The period started strongly as eurozone fears eased and data in the US showed signs of improvement. Expectations also ran high ahead of the EU Summit at which several measures were discussed including recapitalising the region's banks, bolstering the bailout facility and relieving some of Greece's debt. The ebullient mood was short lived, however. Sentiment turned sharply in November following abrupt leadership changes in Greece and Italy, poor regional debt auctions and contagion fears surrounding systemically important countries, Italy and Spain. These losses were recouped in the final days of the month amid growing confidence that German-led plans for greater fiscal union in the region and intervention by Western central banks to boost liquidity in Europe's banking sector. In December, efforts by the ECB to ease bank funding pressures helped calm global stock markets, although eurozone concerns remained. Sentiment was also buoyed by reasonably robust US data and falling inflation in China.

Fund performance
The Trust underperformed in a volatile quarter. Relative performance was impeded by having underweight exposure to the US (which comprises 46 per cent. of the benchmark) and holding cash in a rising market.

At the stock level, however, the Trust's North American holdings (about 30 per cent. of Trust) made excellent progress, albeit with some exceptions. Highlights included Wabtec Corp, a global rail services business which makes equipment for railcars and locomotives. The business continues to experience solid EPS share growth momentum, in part driven by a positive acquisition strategy. Emcor, an electrical and mechanical construction specialist, made significant gains on the back of solid results and an encouraging acquisition strategy, while positive results buoyed LKQ Corp, a recycled auto-parts company. From other regions, high welfare pork business Cranswick recovered ground after it announced better-than-expected first half results, despite challenges caused by consumer pressures in the UK.

Less successful was Vestas Wind Systems which continued to lose ground with the market concerned by higher costs (in part due to operational deficiencies that need to be addressed) and project delays. The stock appears to be pessimistically priced, although we will be monitoring the management team's actions to address internal control issues very closely in the coming months. Waste management company Shanks ended lower after it lost two council contracts in the UK. While disappointing, the businesses is  expected to meet management guidance and the company is  well positioned for contract wins with about half of the UK's local authorities still to launch tenders. Meanwhile, Japanese holdings Daiseki and Shimano had a lacklustre month after recent strong performances, with losses during the quarter exacerbated by currency intervention by the Bank of Japan.

We took advantage of the conditions to increase the holding in Green Mountain Coffee Roasters at an attractive valuation. This company distributes fair-trade coffee in the US and has experienced rapid growth in recent years.  

Investment Outlook
Amid the turbulent economic backdrop of the past two years, increased austerity in the public and private sectors has had a quite specific impact on the environmental sectors. Share prices have struggled on concern about overcapacity, increased competition and lower subsidies, particularly in the renewable energies sector. However, we believe that 2012 presents a far better outlook for the environmental investing with the potential for significant restructuring in several of our core industries. This is being driven by closer price parity between alternative and mainstream energy suppliers and growing demand for environmental solutions from emerging markets. The recent Durban Climate Change Conference is another potentially influential factor for green investing in 2012. The fact that the conference resulted in the foundations of a bilateral agreement on emission reductions was encouraging, especially given the very low expectations leading into the talks. While Europe's debt crisis remains a considerable concern that must be monitored very closely, we believe there is potential for some meaningful returns this year should worst case expectations be averted.

Charles Thomas
Jupiter Asset Management Limited
Investment Manager
8 February 2012

Total Assets as at 31 December 2011: £33,687,226

Shares in Issue

Shares bought back in the period                     200,000
Share in issue as at 31 December 2011                36,720,140
Shares held in Treasury at 31 December 2011                  3,264,834
Total Voting Rights as at 31 December 2011                33,455,306

	Net Asset Value (p)	Market Price (p)	Premium/ (Discount)
Ordinary excluding income/expenses	100.69	84.50	(16%)
Ordinary including income/expenses	100.90	84.50

Portfolio Distribution on 31 December 2011

United Kingdom	26%
North America	35%
Europe	17%
Japan	10%
Other	4%
Cash and fixed interest	8%
	100%

The Company's exposure to other UK listed investment companies was nil on 31 December 2011.

Top Ten Holdings on 31 December 2011

Company	Country of Listing	Activity	% of total assets
Novozymes	Denmark	Demographics	4.2
Cranswick	United Kingdom	Demographics	3.8
Wabtec	United States	Demographics	3.5
Whole Foods Market	United States	Demographics	3.3
First Group	United Kingdom	Demographics	2.7
Ricardo Group	United Kingdom	Resource Efficiency	2.5
Johnson Matthey	United Kingdom	Resource Efficiency	2.4
Stantec Inc	Canada	Infrastructure	2.4
Kurita Water Inds	Japan	Resource Efficiency	2.2
Horsehead Holdings	United States	Resource Efficiency	2.2
			29.2

Comparative Performance to 31 December 2011

	Three months %	One year %	Since launch %
Total Assets*	3.8	(10.4)	3.7
MSCI World Small Cap Index (total return)	8.9	(10.0)	20.8
Ordinary Share NAV	3.8	(10.4)	3.7
Ordinary Share Price	(0.9)	(9.1)	(15.5)

* Performance adjusted for share issue/cancellation since launch

Material Events

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

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.

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.

Company Information

Year end:        31 March

Results:        interim results to 30 September 2012 announced November 2012;
final results to 31 March 2012, announced June/July 2012

Monthly fact sheets for the Company are available for download from www.jupiteronline.co.uk 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
Director of 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
8 February 2012

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information contained therein.

Source: Jupiter Green Investment Trust PLC via Thomson Reuters ONE

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