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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
European Opportunities Trust Plc | LSE:JEO | London | Ordinary Share | GB0000197722 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 843.00 | 842.00 | 843.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMJEO
RNS Number : 4798X
Jupiter European Opps. Trust PLC
21 February 2017
Jupiter European Opportunities Trust PLC
Half Yearly Financial Report for the six months to 30 November 2016 (unaudited)
Financial Highlights
Capital Performance
30 November 31 May % change 2016 2016 Total assets less current liabilities (GBP'000) 619,154 613,922 +0.9
Ordinary Share Performance
30 November 31 May % change 2016 2016 Net asset value (pence) 554.92 550.23 +0.9 Net asset value total return (pence) 560.42 554.03 +1.2 Middle market price (pence) 523.75 530.00 -1.2 FTSE World Europe ex UK Total Return Index* 1,083.76 977.23 +10.90 Discount to net asset value (%) (5.6) (3.7) - Ongoing charges figure (%) 1.10 1.08 -
* This document contains information based on the FTSE World Europe ex UK Total Return Index. 'FTSE(R)' is a trade mark owned by the London Stock Exchange Plc 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.
Performance since launch
Year- on-year Net Asset change in Year- Total Assets Value Net Asset on-year less per Value per change in Current Ordinary Ordinary Benchmark Liabilities Share Share Index Year ended 31 May GBP'000 p % % 20 November 2000 (launch) 93,969 94.66 - - 2001 83,600 89.29 -5.7 -8.0 2002 91,028 91.12 +2.0 -10.7 2003 84,592 83.82 -8.0 -19.0 2004 97,915 109.25 +30.3 +15.7 2005 (restated)*** 117,679 133.54 +22.2 +19.3 2006 154,927 167.47 +25.4 +26.2 2007 182,278 224.58 +34.1 +30.0 2008 188,519 230.56 +2.7 -0.1 2009 131,457 162.35 -29.6 -25.3 2010 185,504 232.40 +43.1 +14.4 2011 252,813 316.73 +36.3 +24.2 2012 231,584 291.05 -8.1 -24.2 2013 340,801 403.58 +38.7 +43.3 2014 409,191 451.26 +11.8 +13.4 2015 558,389 546.27 +21.1 +4.7 2016 613,922 550.23 +0.7 -3.7 30 November 2016 619,154 554.92 +0.9 +10.9
***Prior to 2005, financial information was prepared under UK GAAP. From 2006 all information is prepared under IFRS.
Chairman's Statement
Over the six months to 30 November 2016 the Net Asset Value per share of your Company rose by 1.2 per cent. This performance was behind the return on the Company's benchmark, the FTSE World Europe ex UK Total Return Index, which increased by 10.9 per cent. over the same period.
Since the end of November 2016 the Net Asset Value per share has increased by 5.8 per cent. to 592.83 pence (as at 31 January 2017), which compares with a return of 7.7 per cent. for the benchmark over the same period.
The background to your Company's recent underperformance is considered in depth by our portfolio manager, Alexander Darwall, in his Investment Adviser's report below and I will not seek to cover the same ground here except to observe that your Company has experienced similar periods of underperformance in earlier investment cycles. Nevertheless, it is pertinent to note that the return on the net asset value per share of your Company has significantly outperformed the Company's benchmark over three and five years. Since the Company's launch in November 2000 the total return on the net asset value per share, with dividends reinvested on their payment dates, has been 603.7 per cent. (as at 30 November 2016), which compares with a total return of 120.0 per cent. by the Company's benchmark over the same period.
Gearing
At the end of the period under review the gearing level on the Company's investment portfolio had increased to 15 per cent.
Our portfolio manager tends to increase gearing at times of perceived low valuations, while reducing it as markets recover. This approach has added sustained value over the course of your Company's history and we continue to encourage the portfolio manager to consider the use of gearing as a tactical tool to improve returns.
Outlook
All companies in our investment universe have to face the challenges arising from technological advances, changing fashion, the rising tide of regulation, and other developments too numerous to mention. Some will adapt successfully, and their shareholders will be amply rewarded for backing them. Others, lacking the necessary vision to override such challenges, will fail. Your manager seeks to identify successful managements, in a variety of different spheres, ahead of the majority of investors. Success is not guaranteed; but the long term record speaks for itself.
Hugh Priestley
Chairman
21 February 2017
Investment Adviser's Review
Performance was poor in the period under review. Whilst the FTSE World Europe ex UK Total Return Index, your Company's benchmark, rose by 10.9 per cent., Sterling adjusted, the Net Asset Value of the Company's Ordinary shares returned 1.2 per cent. during the six months to 30 November 2016. The Company's total borrowings rose during the period under review to GBP106.4m at 30 November, representing gearing of 15 per cent.
The FTSE World Index was up by 20.8 per cent., Sterling adjusted, a better performance than Europe largely because America's S&P 500 Index was up 23.1 per cent. Other markets advanced strongly. The MSCI Latin America Index was 34.1 per cent. higher; the MSCI AC Asia ex-Japan Index was up by 25.8 per cent.; and the Japanese Nikkei 225 Index advanced by 20.8 per cent.
Whilst the obvious explanation for the relatively disappointing performance of the European equity markets is political events - the European Union (EU) crisis and the perceived threat of the new US Administration - the real explanation lies in Europe's economic policies. The core of the policy is Quantitative Easing, a cheap money policy. The European Central Bank's (ECB) main refinancing rate was reduced to 0 per cent. early in 2016. It is questionable whether this, together with a marked reluctance to reform the labour markets, is a successful policy. Growth rates remain low in Europe. The International Monetary Fund's latest forecasts (October 2016) are for 1.9 per cent. growth in the EU in 2016 and 1.7 per cent. in 2017; they forecast 3.1 per cent. and 3.4 per cent. world growth in 2016 and 2017 respectively. Clearly Europe is falling behind. Corporate borrowing growth has been moderate as companies are reluctant to commit more capital in Europe. As far as the banks are concerned there is a further challenge. More companies are going directly to the capital markets for funding, disintermediating the banks.
The macro backdrop neither explains nor excuses investment performance. Sector weightings, the underweight positions in oil and gas, basic materials and to a lesser extent financials all penalised performance and partly explain the outcome. But as always stock selection is the key. We aim to identify companies that should benefit from 'super-macro' drivers: regulatory changes, technology developments, changes in consumer or customer behaviour, or a shifting competitive landscape. We seek evidence that these drivers have indeed started to unlock multi-year, 'micro' opportunities for a given company. When we are correct these drivers can override the impact of macro factors. Equally, where we suffer reverses it is usually because our analysis of these drivers was mistaken.
Although the list of 'winners' is an eclectic one with a huge diversity of activities, we can identify which of the drivers explains success. Thus Marine Harvest, the largest salmon farming company in the world, is clearly a beneficiary of changing consumer habits, in this case increasing consumption of salmon in the West; BioMerieux, a French diagnostics company, is enjoying a technological advantage over its competitors; and RELX, the Anglo-Dutch provider of information and risk analytics, benefits from its use of digital technology and regulatory changes. Amadeus, another 'winner', is using its industry leading technology in airline bookings to develop in the hotel booking segment.
Of the underperforming stocks there is a distinction to be made between those where we have concerns and those where we don't. The biggest single negative impact was NovoNordisk: we are concerned. Our confidence in robust US pricing for their insulin products was misplaced. The shock of NovoNordisk's near term challenges has caused us to reconsider our investment. We have concluded that there are many reasons why we believe that the company has good prospects: the development of a new class of drug to treat diabetes, steady demand growth, and scope for innovation and differentiation.
For these and other reasons we have retained a significant position. Ingenico and Novozymes also detracted significantly from performance. The former, a world leader in the electronic payments business, has suffered from a slowdown in growth in the US. We consider their problems to be temporary rather than structural. In fact we believe that new opportunities for Ingenico present themselves in countries like India where the authorities are encouraging electronic money transactions. We have therefore maintained our investment. The growth rate at Novozymes has declined. The company's prospects appear to be to a certain extent dependent on energy prices. We are reviewing this position. Amongst the other notable underperformers were Grenke and ALK Abello. Neither of these gives us cause for concern. Both companies continue to generate good profits growth and we remain encouraged by their prospects. Inmarsat was another disappointing performer. In both its maritime and aviation operations the news flow has as yet failed to justify management's bullish assertions. The coming months are critical in seeing whether or not this optimism is well founded.
Of the outright sales, ARM Holdings was sold following an offer to purchase the company. Leonteq too was sold. Only a 1.4 per cent. position at peak this was sold as we lost confidence in the management's ability to grow the business. Autoliv, another small holding, was sold as we considered that there were better ways to profit from the substantial innovation in the automotive sector. Instead we initiated a position in Umicore, a global materials technology and recycling group. Its rechargeable battery materials put it in a leading place to benefit from the development of electrification of cars. This was one of only a few new positions and none was big. The largest new investment was that of Edenred, constituting barely 1 per cent. of the portfolio at the period end. Edenred is the world leader in prepaid corporate services. These services include government funded benefits and corporate expense management mainly in Europe and Brazil. Under new management we consider that the company will extend its reach, benefitting from digital technology. We added to existing holdings in Syngenta (because there was substantial upside assuming that the bid goes through as agreed). Of particular note was the substantial addition to the holding in Carnival. A good industry structure combined with growing demand for cruising, especially in China, should lead to healthy profits growth.
The political and other macro events in 2016 presage great changes. Further upheavals in Europe can reasonably be expected in 2017. Yet we do not anticipate what those changes will be. It is too soon to tell. There will be challenges and opportunities. Our strategy remains entirely consistent, focusing on individual company opportunities which can prosper in a range of macro-economic scenarios. Correctly identifying 'winners' from the range of 'drivers', as described above, should shape prospects for your Company more than macro vicissitudes. In any case, the broad geographic exposure of 'our' companies operating across the world mitigates much of the regional macro risk. We remain confident that plenty of good investment opportunities exist and that our process for identifying such opportunities is an appropriate one.
Alexander Darwall
Fund Manager
Jupiter Asset Management Limited
21 February 2017
Investment Portfolio as at 30 November 2016
30 November 2016 31 May 2016 Market Percentage Market Percentage value of value of Company Country of Listing GBP'000 portfolio GBP'000 portfolio Syngenta Switzerland 63,813 8.8 54,524 7.7 Wirecard Germany 57,368 7.9 46,812 6.6 RELX Netherlands 54,872 7.6 48,733 6.9 Provident Financial UK 50,978 7.0 48,015 6.8 Novo Nordisk Denmark 47,682 6.6 62,788 8.9 Inmarsat UK 42,722 5.9 33,427 4.7 Deutsche Börse Germany 39,652 5.5 31,779 4.5 Amadeus Spain 37,526 5.2 31,316 4.4 Fresenius Germany 37,019 5.1 33,418 4.7 Experian UK 35,124 4.9 30,355 4.3 Carnival UK 27,061 3.7 6,028 0.9 Grenke Germany 26,650 3.7 31,659 4.5 Ryanair Ireland 18,302 2.5 16,732 2.4 Grifols Spain 16,807 2.3 16,658 2.4 Ingenico France 16,214 2.2 21,703 3.1 BioMerieux France 14,652 2.0 6,729 0.9 Novozymes Denmark 14,254 2.0 45,999 6.6 Coloplast Denmark 13,238 1.8 18,953 2.7 Royal Caribbean Cruises Liberia 12,125 1.7 9,944 1.4 Dassault Systemes France 9,567 1.3 8,511 1.2 Luxottica Group Italy 8,887 1.2 10,957 1.5 Intrum Justitia Sweden 8,502 1.2 6,015 0.8 Worldpay Group UK 7,833 1.1 8,063 1.1 ALK-Abello Denmark 7,826 1.1 7,666 1.1 Arrow Global Group UK 7,756 1.1 1,398 0.2 Edenred France 7,661 1.1 - - Gemalto Netherlands 6,740 0.9 2,310 0.3 Saga UK 5,362 0.7 8,740 1.2 Lonza Group Switzerland 4,991 0.7 2,963 0.4 Marine Harvest Norway 4,694 0.7 14,305 2.0 KWS Saat Germany 4,588 0.6 4,494 0.6 Essilor International France 3,349 0.5 4,486 0.6 Umicore Belgium 2,880 0.4 2,598 0.4 Genus UK 2,812 0.4 - - Ossur Denmark 1,944 0.3 1,836 0.3 Elementis UK 1,550 0.2 4,003 0.6 Alfa Laval Sweden 602 0.1 - - ---------------------- ------------------- --------- ------------ ------- ---------- Total 723,603 100.0 ------------------------------------------- --------- ------------ ------- ----------
Cross Holdings in other Investment Companies
As at 30 November 2016 and 31 May 2016, none of the Company's assets were invested in the securities of other listed closed-ended investment companies. It is the Company's stated policy that it will not invest in other listed closed-ended investment companies.
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. Details of related party transactions are contained in the Annual Report and Accounts of the Company for the year ended 31 May 2016.
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, liquidity risk, gearing risk, the discount to Net Asset Value, regulatory risk, loss of key personnel, operational and financial risks. A detailed explanation of the Risks and Uncertainties facing the Company can be found in the Annual Report and Accounts for the year ended 31 May 2016.
Going Concern
The Half Yearly Financial Report has been prepared on a going concern basis. The Directors consider that this is the appropriate basis as they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. In considering this, the Directors took into account the Company's investment objective, risk management policies and capital management policies, the diversified portfolio of readily realisable securities which can be used to meet short-term funding commitments and the ability of the Company to meet all of its liabilities and ongoing expenses. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Directors' Responsibility Statement
We, the Directors of Jupiter European Opportunities Trust PLC, confirm to the best of our knowledge that:
(a) The condensed set of financial statements have been prepared in accordance with the Accounting Standards Board's statement 'Half-Yearly Financial Reports' and give a true and fair view of the assets, liabilities, financial position and profit of the Company for the period ended 30 November 2016;
(b) The Chairman's Statement, the Investment Adviser's Review and the Interim Management Report include a fair review of the information required by Disclosure and Transparency Rule 4.2.7R; and
(c) The Interim Management Report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R on related party transactions.
The Half Yearly Financial Report has not been audited or reviewed by the Company's auditors.
By Order of the Board
H M Priestley
Chairman
21 February 2017
Statement of Comprehensive Income
For the six months to 30 November 2016 (unaudited)
30 November 2016 30 November 2015 Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Gain on investments at fair value through profit or loss - 15,048 15,048 - 30,701 30,701 Foreign exchange (loss)/gain on loan - (5,676) (5,676) - 1,218 1,218 Currency exchange gain/(loss) - 354 354 - (108) (108) Income 4,703 - 4,703 3,161 - 3,161 ------------------------------ ------- ------- ------- ------- ------- -------- Total income 4,703 9,726 14,429 3,161 31,811 34,972 ------------------------------ ------- ------- ------- ------- ------- -------- Investment management fee (2,823) - (2,823) (2,455) - (2,455) Investment performance fee - (23) (23) - (8,806) (8,806) Other expenses (316) - (316) (327) - (327) ------------------------------ ------- ------- ------- ------- ------- -------- Total expenses (3,139) (23) (3,162) (2,782) (8,806) (11,588) ------------------------------ ------- ------- ------- ------- ------- -------- Net return before finance costs and taxation 1,564 9,703 11,267 379 23,005 23,384 Finance costs (475) - (475) (286) - (286) ------------------------------ ------- ------- ------- ------- ------- -------- Return before taxation 1,089 9,703 10,792 93 23,005 23,098 Taxation (475) - 571 198 - 198 ------------------------------ ------- ------- ------- ------- ------- -------- Net return after taxation 1,660 9,703 11,363 291 23,005 23,296 ------------------------------ ------- ------- ------- ------- ------- -------- Return per Ordinary share 1.49p 8.70p 10.19p 0.27p 21.57p 21.84p ------------------------------ ------- ------- ------- ------- ------- --------
The total column of this statement is the income statement of the Company prepared in accordance with International Financial Reporting Standards (IFRS). The supplementary revenue return and capital return columns are both prepared under guidance produced by the Association of Investment Companies (AIC).
All items in the above statement derive from continuing operations.
The return after taxation is also the total comprehensive profit for the year.
All income is attributable to the equity holders of Jupiter European Opportunities Trust PLC.
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 2016
30 November 31 May 2016 2016 (unaudited) (audited) GBP'000 GBP'000 Non current assets Investments held at fair value through profit or loss 723,603 707,402 Current assets Other receivables 5,331 4,279 Cash and cash equivalents 4,517 6,091 ------------------------------------------ ----------- --------- 9,848 10,370 ------------------------------------------ ----------- --------- Total assets 733,451 717,772 ------------------------------------------ ----------- --------- Current liabilities Other payables (114,297) (103,850) ------------------------------------------ ----------- --------- Total net assets less current liabilities 619,154 613,922 ------------------------------------------ ----------- --------- Capital and reserves Called up share capital 1,116 1,116 Share premium 193,561 193,555 Special reserve 33,687 33,687 Capital redemption reserve 45 45 Retained earnings 390,745 385,519 ------------------------------------------ ----------- --------- Total equity shareholders' funds 619,154 613,922 ------------------------------------------ ----------- --------- Net Asset Value per Ordinary share 554.92p 550.23p ------------------------------------------ ----------- ---------
Statement of Changes in Equity
For the six months to 30 November 2016
Capital Share Share Special Redemption Retained For the six months to Capital Premium Reserve Earnings Earnings Total ----------------------------- ------- ------- ------- ---------- -------- ------- 30 November 2016 (unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ----------------------------- ------- ------- ------- ---------- -------- ------- Balance at 1 June 2016 1,116 193,555 33,687 45 385,519 613,922 ----------------------------- ------- ------- ------- ---------- -------- ------- Net profit for the period - - - - 11,363 11,363 ----------------------------- ------- ------- ------- ---------- -------- ------- Ordinary shares issue - 6 - - - 6 ----------------------------- ------- ------- ------- ---------- -------- ------- Dividends declared - - - - (6,137) (6,137) ----------------------------- ------- ------- ------- ---------- -------- ------- Balance at 30 November 2016 1,116 193,561 33,687 45 390,745 619,154 ----------------------------- ------- ------- ------- ---------- -------- ------- Capital Share Share Special Redemption Retained For the six months to Capital Premium Reserve Reserve Earnings Total 30 November 2015 (unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ----------------------------- ------- ------- ------- ---------- -------- ------- Balance at 1 June 2015 1,022 142,988 33,687 45 380,647 558,389 ----------------------------- ------- ------- ------- ---------- -------- ------- Net profit for the period - - - - 23,296 23,296 ----------------------------- ------- ------- ------- ---------- -------- ------- Ordinary shares issue 66 34,683 - - - 34,749 ----------------------------- ------- ------- ------- ---------- -------- ------- Dividends declared and paid * - - - - (4,133) (4,133) ----------------------------- ------- ------- ------- ---------- -------- ------- Balance at 30 November 2015 1,088 177,671 33,687 45 399,810 612,301 ----------------------------- ------- ------- ------- ---------- -------- -------
* Dividends paid during the period were paid out of revenue reserves.
Cash Flow Statement
For the six months to 30 November 2016 (unaudited)
2016 2015 GBP'000 GBP'000 Cash flows from operating activities Investment income received (gross) 6,605 4,633 Investment management fee paid (2,794) (2,317) Investment performance fee paid (5,325) (12,609) Other cash expenses (308) (307) ------------------------------------- ---------------- -------- Net cash outflow from operating activities before taxation and interest (1,822) (10,600) ------------------------------------- ---------------- -------- Interest paid (418) (218) Taxation 262 232 ------------------------------------- ---------------- -------- Net cash outflow from operating activities (1,978) (10,586) ------------------------------------- ---------------- -------- Cash flows from investing activities Purchases of investments (95,078) (98,961) Sales of investments 91,298 52,126 ------------------------------------- ---------------- -------- Net cash outflow from investing activities (3,780) (46,835) ------------------------------------- ---------------- -------- Cash flows from financing activities Ordinary shares issued 6 34,749 Net drawdown of loan 3,824 24,847 ------------------------------------- ---------------- -------- Net cash inflow from financing activities 3,830 59,596 ------------------------------------- ---------------- -------- (Decrease)/increase in cash (1,928) 2,175 ------------------------------------- ---------------- -------- Cash and cash equivalents at start of period 6,091 5,669 Realised gain/(loss) on foreign currency 354 (108) ------------------------------------- ---------------- -------- Cash and cash equivalents at end of period 4,517 7,736 ------------------------------------- ---------------- --------
Notes to the Financial Statements
1. Accounting Policies
The Accounts comprise the unaudited financial results of the Company for the period to 30 November 2016. The Accounts are presented in pounds Sterling, as this is the functional currency of the Company.
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 (EU). Where presentational guidance set out in the Statement of Recommended Practice (SORP) for Investment Trusts issued by the Association of Investment Companies (AIC) in November 2014 is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP.
The Company continues to adopt the going concern basis in the preparation of the financial statements.
2. Gains on investments
Six months to Six months to 30 November 2016 30 November 2015 GBP'000 GBP'000 Net gain realised on sale of investments 28,054 19,196 Movement in unrealised (losses)/gains (13,006) 11,505 -------------------------------------- ---------------- ---------------- Gains on investments 15,048 30,701 -------------------------------------- ---------------- ---------------- 3. Return per Ordinary share Six months to Six months to 30 November 2016 30 November 2015 GBP'000 GBP'000 Net revenue profit 1,660 291 Net capital profit 9,703 23,005 ------------------------------ ---------------- ---------------- Net total profit 11,363 23,296 ------------------------------ ---------------- ---------------- Weighted average number of Ordinary shares in issue during the period 111,575,331 106,657,219 Revenue earnings per Ordinary share (p) 1.49 0.27 Capital return per Ordinary share (p) 8.70 21.57 ------------------------------ ---------------- ---------------- Total return per Ordinary share (p) 10.19 21.84 ------------------------------ ---------------- ---------------- 4. Net Asset Value per Ordinary share
The Net Asset Value per Ordinary share is based on the net assets attributable to the Ordinary shareholders of GBP619,154,000 (31 May 2016: GBP613,922,000) and on 111,575,331 (31 May 2016: 111,575,331) Ordinary shares, being the number of Ordinary shares in issue at the period end.
5. Related Parties
Jupiter Unit Trust Managers Limited ('JUTM'), the Alternative Investment Fund Manager, is a company within the same group as Jupiter Asset Management Limited, the Investment Adviser. JUTM receives investment management fees as set out below.
JUTM is contracted to provide investment management services to the Company (subject to termination by not less than twelve months' notice by either party) for an annual fee of 0.75 per cent. of the net assets of the Company after deduction of the value of any Jupiter managed investments, payable quarterly in arrears.
The management fee payable to JUTM for the period 1 June 2016 to 30 November 2016 was GBP2,823,000 (31 May 2016: GBP5,102,000) with GBP1,372,000 (31 May 2016: GBP1,343,000) outstanding at period end.
JUTM 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. No performance fee is payable in respect of the period under review.
The Company has invested from time to time in funds managed by Jupiter Investment Management Group Limited or its subsidiaries. There was no such holding as at 30 November 2016 (31 May 2016: Nil). No investment management fee is payable by the Company to Jupiter Asset Management Limited in respect of the Company's holdings in investment trusts, open-ended funds and investment companies in respect of which Jupiter Investment Management Group Limited, or any subsidiary undertaking of Jupiter Investment Management Group Limited, receives fees as investment manager or investment adviser.
A copy of the Half-Yearly Financial Report will shortly be available for download from the Company's website www.jupiteram.com/JEO
For further information, please contact:
Richard Pavry
Head of Investment Trusts
Jupiter Asset Management Limited, Company Secretary
investmentcompanies@jupiteram.com
020 3817 1496
21 February 2017
This information is provided by RNS
The company news service from the London Stock Exchange
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