TIDMJDT
Jupiter Dividend & Growth Trust PLC
Interim Management Statement for the three months ended 31 March 2012
The Board of Jupiter Dividend & Growth Trust PLC (the "Company") is pleased to
announce its interim management review for the quarter ended 31 March 2012.
The following report relates to the performance of the Company's investment
portfolio in the three months leading up to 31 March 2012.
Investment Manager's Report for the Quarter ended 31 March 2012
Manager's Review
Investor sentiment was deeply pessimistic at the start of 2012. There were well-
founded fears that banks in the Eurozone faced an imminent liquidity crisis.
Markets rallied strongly in January and February, however, after the European
Central Bank, under its new Italian president, threw a lifeline to Eurozone
banks. In particular, Spanish and Italian banks used the provision of unlimited
cheap three-year loans to refinance their country's debts while strengthening
their own balance sheets. Investor sentiment was also buoyed by signs of revival
in the US economy. UK equities consolidated in March. European sovereign debt
concerns resurfaced, as Spanish government bond yields rose sharply, while
commodity prices fell on weak data from China.
In the portfolio we opened two positions. Marston's, the pub company and brewer
is a reliable company whose shares offered an attractive dividend yield. N.
Brown is a catalogue and internet retailer whose shares are cheap. The company
should benefit from the migration of shoppers to online, while the recent
squeeze in consumer's disposable income could relax later this year. We added to
our holding in Centrica ahead of its full year results. The shares offered good
value and an attractive dividend yield.
We top-sliced our holding in Ricardo, the technical consulting group, and cut
our position in Carnival immediately after the loss of the Costa Concordia.
The cash and other liquid assets position was reduced from 4.8 per cent. at 31
December 2011 to 3.9 per cent. at 31 March 2012.
Anthony Nutt
Fund Manager, Jupiter Asset Management Limited
Total Assets as at 31 March 2012: GBP36,861,886
Shares in Issue on 31 March 2012:
32,319,031 Zero Dividend Preference shares
8,054,045 Common shares
91,675,333 Ordinary Income shares
+-----------------------+------------------+----------------+------------------+
| |Net Asset Value |Market Price (p)|Premium/(Discount)|
| |(p) | | |
+-----------------------+------------------+----------------+------------------+
|Zero Dividend |91.30 |72.25 |(21%) |
|Preference shares | | | |
| | | | |
+-----------------------+------------------+----------------+------------------+
|Common shares |91.30 |78.25 |(14%) |
| | | | |
+-----------------------+------------------+----------------+------------------+
|Ordinary Income shares |0.00 |4.25 |- |
+-----------------------+------------------+----------------+------------------+
Portfolio Distribution on 31 March 2012 Percentage of Total Assets
United Kingdom 95
Europe 1
Cash and fixed interest 4
100%
The Company's exposure to other UK listed investment companies was 0.0% as at
31 March 2012.
Top Ten Holdings on 31 March 2012
Company Country of Listing % of Total Assets
Royal Dutch Shell 'B' United Kingdom 7.2
Glaxosmithkline United Kingdom 7.1
Vodafone United Kingdom 6.8
BP United Kingdom 6.6
Astrazeneca United Kingdom 6.4
HSBC Holdings United Kingdom 4.9
Babcock International Group United Kingdom 3.3
William Hill United Kingdom 3.1
IMI United Kingdom 3.0
Majestic Wine United Kingdom 2.9
51.3
Comparative Performance to 31 March 2012
+----------------+-------+--------+-------+---------------+--------------------+
| |1 Month|3 Months|1 Year |Since Last |Since Reconstruction|
| | | | |Annual Report | |
+----------------+-------+--------+-------+---------------+--------------------+
| |% |% |% |% |% |
+----------------+-------+--------+-------+---------------+--------------------+
|Total Assets |1.0 |5.3 |(7.0) |(4.4) |(8.3) |
+----------------+-------+--------+-------+---------------+--------------------+
|FTSE All-Share |(1.4) |5.1 |(2.1) |(2.0) |9.5 |
|Index | | | | | |
+----------------+-------+--------+-------+---------------+--------------------+
|FTSE 350 Higher |(0.7) |0.9 |0.5 |1.6 |(11.2) |
|Yield | | | | | |
+----------------+-------+--------+-------+---------------+--------------------+
|Ordinary Income |0.0 |0.0 |(100.0)|(100.0) |(100.0) |
|share NAV | | | | | |
+----------------+-------+--------+-------+---------------+--------------------+
|Ordinary Income |0.0 |0.0 |(45.2) |(43.3) |(87.3) |
|share price | | | | | |
+----------------+-------+--------+-------+---------------+--------------------+
|Common share NAV|1.0 |5.3 | (5.3) | (2.7) | - |
+----------------+-------+--------+-------+---------------+--------------------+
|Common share |1.3 |9.4 | (5.7) | (13.1) | - |
|price | | | | | |
+----------------+-------+--------+-------+---------------+--------------------+
Sources
Jupiter Asset Management Limited ("Jupiter")
The Company's benchmark index is FTSE All-Share Index
Material Events
There were no material events during the period.
Payment of dividends
A fourth interim dividend of 0.24p per Ordinary Income share for the year ended
31 December 2011 was paid to Ordinary Income shareholders on 24 February 2012.
A fourth interim dividend of 0.65p per Common share for the year ended 31
December 2011 was paid to Common shareholders on 24 February 2012.
Availability of Monthly Fact Sheets
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 Income shares, Zero Dividend Preference shares and Common
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 Income shares, Zero Dividend
Preference shares and Common shares are calculated weekly and can be viewed on
the London Stock Exchange website at www.londonstockexchange.com (under the
heading 'Market News').
INVESTMENT OBJECTIVE
The objective of the Company is to provide Ordinary Income and Common
shareholders with a high and rising income together with the possibility of
capital appreciation and to provide Zero Dividend Preference and Common
shareholders with a predetermined level of capital growth.
INVESTMENT POLICY
The investment policy of the Company is to invest mainly in a portfolio of UK
listed equities, UK equity-related securities (such as convertible securities,
preference shares, convertible unsecured loan stock, warrants and other similar
securities) and UK fixed interest securities.
The equities selected as suitable for the portfolio will generally be those
judged to be lowly valued by the Investment Manager, typically offering an
attractive dividend yield with sufficiently strong cash generation from their
operational activities to grow the dividend to shareholders over a number of
years. Such equities are likely to be considered by the Investment Manager to be
undervalued by the stock market at the time of purchase and will offer scope for
capital gains.
The portfolio manager selects each stock on its individual merits as an
investment rather than replicating the relevant company's weighting within its
benchmark, the FTSE All Share index. The portfolio is therefore unlikely to
represent the constituents of its benchmark, but instead is intended to offer a
well diversified investment strategy focussed on maximising returns from the
prevailing economic background.
The portfolio manager has complete flexibility to invest any proportion of the
Company's investment portfolio in debt securities from time to time. Investment
in debt securities will be in convertible bonds, corporate bonds and other debt
securities (such as gilts) considered by the Investment Manager to be quasi-cash
instruments. Investment in bonds issued by corporate issuers will generally be
in those of issuers which are either rated as "investment grade" issuers or are
considered by the Investment Manager to have an equivalent grade. The Investment
Manager may also invest in sub-investment grade corporate bonds where it
considers that their ratings are likely to improve. The percentage of the
portfolio invested in debt securities at any given time will primarily be driven
by tactical considerations but will also depend upon the outlook for interest
rates and the scope for improved debt ratings.
The Company may invest in unlisted securities (up to a maximum of 5 per cent. of
Total Assets) and derivatives but it is not the Investment Manager's present
intention to do so (save, in respect of derivatives for the purposes of
efficient portfolio management).
It is the Company's policy to invest no more than 15 per cent. of its gross
assets in other listed investment companies (including listed investment trusts)
as defined in the Listing Rules.
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 and
separate class approval of Ordinary Income shareholders.
The Company is geared by its Zero Dividend Preference and Common shares. The
Company also has an overdraft facility with The Royal Bank of Scotland plc.
On behalf of the Board
Jupiter Asset Management Limited
17 May 2012
For further information, please contact:
Richard Pavry
Director of Investment Trusts
Jupiter Asset Management Limited
rpavry@jupiter-group.co.uk
020 7314 4822
Faith Pengelly
Company Secretarial Department
Jupiter Asset Management Limited
fpengelly@jupiter-group.co.uk
020 7314 4915
The Company's registered office is at 1 Grosvenor Place, London SW1X 7JJ.
This interim management statement has been prepared solely to provide
information to meet the requirements of the UK Listing Authority's Disclosure
and Transparency Rules.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Jupiter Dividend & Growth Trust PLC via Thomson Reuters ONE
[HUG#1613055]
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