Jupiter Green Investment Trust PLC
Multimedia
Jupiter Green Investment Trust PLC AGM update
Chairman Michael Naylor and Portfolio Manager Jon Wallace provide an update for Shareholders on the Jupiter Green Investment Trust PLC.
Please click here to attend the virtual AGM.
AGM
In light of the fact that we are holding an open meeting but recognise some shareholders might be reluctant to travel in this environment, we are pleased to be able to provide a facility for shareholders to follow the AGM remotely and submit questions to the board on the business of the meeting.
How to join the virtual meeting
You will need to visit https://webcast.openbriefing.com/jupiter-agm21/ using your smartphone, tablet or computer. You will then be prompted to enter your unique 11 digit Investor Code (IVC) including any leading zeros and ‘PIN’. Your PIN is the last 4 digits of your IVC. This will authenticate you as a shareholder.
Your IVC can be found on your share certificate, or Signal Shares users (www.signalshares.com) will find this under ‘Manage your account’ when logged in to the Signal Shares portal. You can also obtain this by contacting Link, our Registrar, by calling +44 (0) 371 277 1020*
Access to the AGM will be available from 30 mins before start of event although you will not be able to submit questions until the meeting is declared open.
If you wish to appoint a proxy other than the Chair of the meeting and for them to attend the virtual meeting on your behalf, please submit your proxy appointment in the usual way before contacting Link Group on +44 (0) 371 277 1020* in order to obtain their IVC and PIN. It is suggested that you do this as soon as possible and at least 48 hours (excluding non-business days) before the meeting.
If your shares are held within a nominee and you wish to attend the electronic meeting, you will need to contact your nominee as soon as possible. Your nominee will need to present a corporate letter of representation to Link Group, our registrar, as soon as possible and at least 72 hours (excluding non-business days) before the meeting, in order that they can obtain for you your unique IVC and PIN to enable you to attend the electronic meeting.
*Lines are open from 9.00 a.m. to 5.30 p.m. Monday to Friday, calls are charged at the standard geographic rate and will vary by provider. Calls outside the UK will be charged at the applicable international rate.
Overview
Please bear in mind that all investments involve risk and the value of, and any potential income from, your investment may fluctuate and are not guaranteed.
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.
Jupiter Asset Management Limited, as the Company’s Investment Adviser, selects each stock on its individual merits as an investment rather than replicating the relevant company’s weighting within the Company’s benchmark index. The Company’s investment portfolio is therefore unlikely to represent the constituents of its benchmark index, but instead is intended to offer a well diversified investment strategy focused on maximising returns from the prevailing economic background.
The Investment Adviser may enter into contracts for differences in order to gain both long and short exposure for the Company to indices, sectors, baskets of 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 individual portfolio 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. First, the individual portfolio 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.
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.
In the years since the launch of Jupiter’s first green fund in 1988, environmental issues have become a major global concern. There is now broad acceptance that problems such as energy security, climate change, freshwater scarcity, local pollution and waste are simply not going to disappear without concerted action to tackle them on a global scale.
It is Jupiter’s Environment & Sustainability team’s view that environmental solutions businesses will have deep, long-term structural impact across three key areas – infrastructure, resource efficiency and demographics. We believe that these categories communicate the link between environmental and economic issues. They also reflect Jupiter’s belief that investment in environmental solutions businesses is an investment in long-term global structural growth.
- Infrastructure There has been a marked increase in global infrastructure spending in recent years as emerging market economies look to support rapid growth and mature economies seek to modernise. Patterns in both emerging and developed markets have trended towards infrastructure of lower environmental impact (i.e. less pollution, more alternative energy sources etc.) in recognition of its longer-term economic benefits. This is creating opportunities for businesses involved in renewable energy generation, smart electrical grids, clean and wastewater systems, engineering consultants, transport infrastructure and communication networks.
- Resource efficiency Increased global demand for natural resources has stimulated significant investment in resource efficiency (i.e. lower impact methods of using existing resources such as energy, water and land, as well as resource recycling). This is presenting opportunities for businesses involved in energy and water efficiency, wastewater recycling, air pollution technology, waste recycling (from residential to industrial materials) and sustainable agriculture and land management.
- Demographics Rising populations and changing demographic patterns around the world create unique challenges when it comes to environmental and economic sustainability. Ageing populations in the West are putting pressure on healthcare, for example, while a growing global population is affecting agriculture and food production. These challenges have created opportunities for businesses that are providing sustainable, low impact solutions in sustainable consumption, public transport, health, agriculture and education.
Jupiter continues to use a stock-focused investment approach. Taking a long-term company focussed approach to investment, every stock within the portfolio is there on its own fundamental merit. These are companies with strong management teams, sound balance sheets and defendable market positions that convert a high proportion of profit into cash. While the Company is global in scope, specific geographical exposures are a consequence of stock picking process rather than targeted asset allocation.
Equally, Jupiter’s investment universe remains the same. Jupiter focuses on companies which respond to environmental challenges by developing a product or service which provides environmental solutions. Environmental investment opportunities now exist over a wide cross-section of the global economy. This provides a deep investment universe that allows Jupiter to create diversified portfolios underpinned by a variety of economic drivers.
Key literature
Performance report
Announcements
3rd party sources info
Third party sources of information on the Company
Research:
Investment Trust Intelligence – Investment Research
Data:
JUPITER GREEN INVESTMENT TRUST PLC JGC Stock | London Stock Exchange
FE investegate – Recent Regulatory News Announcements to the London Stock Exchange for Jupiter Green Investment Trust PLC
The Association of Investment Companies
Morningstar – Investment Trusts – Prices, Performance, Education, Research.
How to buy:
Hargreaves Lansdown – Pricing and analysis for Jupiter Green Investment Trust PLC
Interactive Investor – Comment and analysis
These links are provided for your convenience and Jupiter accepts no responsibility for the content of such websites.
Dividend installment plan
Dividend Reinvestment Plan
Shareholders may elect for the company’s registrar, Link Asset Services, to reinvest dividends automatically on their behalf.
Signal shares also allows you to manage your shareholding online. If you are a direct investor you can view your shareholding, change the way the registrar communicates with you or the way you receive your dividends, and buy and sell shares. If you haven’t used this service before, all you need to do is enter the name of the company and register your account. You’ll need your Investor code (IVC) printed on your share certificate in order to register.
*Calls to this number are charged at the standard geographical rate and will vary by provider. Calls outside of the United Kingdom will be charged at the applicable international rate. Lines are open from 09.00 – 17.30 Monday to Friday. 3rd party calls may be recorded.
**Links are provided for your convenience and Jupiter accepts no responsibility for the content of such websites.
Annual Financial Results for the year ended 31 March 2021
Jupiter Green Investment Trust plc (‘the company’)
Legal Entity Identifier: 549300MFRCR13CT1L845
Annual Financial Results for the year ended 31 March 2021
Financial Highlights for the year ended 31 March 2021
Capital Performance | As at | As at |
|
| 31.03.21 | 31.03.20 |
|
Total assets less current liabilities (£’000) | 53,304 | 32,581 |
|
|
|
|
|
Ordinary Share Performance | As at | As at |
|
| 31.03.21 | 31.03.20 | % change |
|
|
|
|
Mid-market price (p) | 264.00 | 160.50 | +64.5 |
Undiluted net asset value per ordinary share▲ | 266.73 | 173.31 | +53.9 |
Undiluted net asset value per ordinary share (p) |
|
|
|
(with dividend paid of 1.3p added back: 2020 2.3p) ▲ | 268.03 | 175.61 | +52.6 |
Diluted net asset value per ordinary share | 258.24 | 173.31 | +49.0 |
Diluted net asset value per ordinary share(p)(with dividend paid of 1.3p added back: 2020 2.3p) | 259.54 | 175.61 | +47.8 |
MSCI World Small Cap Index*** | 401.82 | 249.58 | +61.0 |
Discount to net asset value (%)▲ | 1.02 | 7.39 |
|
Ongoing charges ratio (%) excluding finance costs ▲ | 1.73 | 1.59 | +8.8 |
Performance (excluding dividend income) Since Launch
|
|
|
| Year- |
|
|
|
|
| on-year |
|
|
| Net asset |
| change in | Year- |
| Total assets | value | Dividends | Net Asset | on-year |
| less | per | declared per | Value per | change in |
| current | ordinary | ordinary | ordinary | benchmark |
Year ended 31 March | liabilities | share | share | share | index*** |
| £’000 | p | p | % | % |
8 June 2006 (launch) | 24,297 | 97.07 | – | – | – |
2007 | 31,679 | 118.07 | – | +22.3* | – |
2008 | 52,734 | 114.14 | – | -3.9** | – |
2009 | 33,809 | 76.86 | – | -32.7 | -36.5 |
2010 | 43,590 | 106.65 | – | +38.8 | +41.6 |
2011 | 41,085 | 120.49 | 0.40 | +13.0 | +11.0 |
2012 | 36,181 | 108.49 | 0.60 | -10.0 | -23.8 |
2013 | 37,571 | 124.42 | 1.20 | +14.7 | +10.3 |
2014 | 38,142 | 145.00 | 1.10 | +16.5 | +28.6 |
2015 | 38,545 | 152.35 | 0.55 | +5.1 | +10.6 |
2016 | 33,418 | 150.79 | 0.65 | -1.0 | -3.3 |
2017 | 38,509 | 184.33 | 1.20 | +22.2 | +28.4 |
2018 | 40,147 | 191.31 | 1.30 | +3.8 | +3.7 |
2019 | 35,934 | 188.70 | 2.20 | -1.4 | +6.0 |
2020 | 32,581 | 173.31 | 2.40 | -8.2 | +3.4 |
2021 | 53,304 | 266.73^ | 0.64† | +53.9 | +61.0 |
* In September 2006, new ordinary shares totalling 1,058,859 were issued and in November 2006, new ordinary shares totalling 600,000 were issued. Investment performance adjusted for the new issues of Ordinary shares.
** In April, July and August 2007, new ordinary shares totalling 20,249,074 were issued and a total of 737,963 ordinary shares were cancelled in March 2008. Investment performance adjusted for the new issues and the subsequent cancellation of shares.
*** With effect from 2 September 2020 the company retrospectively changed its benchmark from the FTSE ET100 Total Return Index to the MSCI World Small Cap Index, both expressed in sterling terms.
^ Being the exercise price for the purposes of the 2022 subscription rights.
† A final dividend of 0.64p is subject to approval by shareholders at the Annual General Meeting to be held on 1 September 2021.
▲ For definitions of the above Alternative Performance Measures please refer to the Glossary of Terms in the Annual Report & Accounts.
Strategic Report
Chairman’s Statement
It is with pleasure that I present the Annual Report and Accounts for the Jupiter Green Investment Trust PLC for the twelve months to 31 March 2021.
The quite extraordinary period covered by this report, capturing almost the entirety of the COVID-19 global pandemic to date, has understandably dominated investor’s thinking. A year ago, the world was plunged into the steepest economic contraction in decades, recovering hesitantly at times, and it was only the announcement of successful vaccine trials in November 2020 that gave investors more confidence in the future recovery. Even now, as millions of people across the world receive a vaccine every day, there are traumatic images and news stories from parts of the world still in the grip of the pandemic.
What is becoming clear, however, is that environmental solutions will be at the heart of recovery plans and key to a reinvigorated post-COVID economy. Not only does this represent an encouraging contrast to the years following the last major global crisis in 2008/9, but it also marks a very favourable long-term investment landscape for the company.
Europe, once again, appears to be taking the lead. On 16 September, the European Commission proposed reducing greenhouse gas emission by at least 55% by 2030 from 1990 levels, a hike on the 40% cut currently targeted. The European Union’s €750bn recovery package also has climate change at its heart, including investment in renewable energy, clean hydrogen, batteries and sustainable energy infrastructure. In the UK, Boris Johnson has pledged to help the country “build back better”, for example by investing in the infrastructure needed to build sufficient offshore wind farms to allow for the generation of enough electricity to power every home in the UK within a decade.
Meanwhile, the victory for Joe Biden in the US presidential election – and crucially also for the Democrats in Georgia’s Senate race, which gave them the narrowest of majorities across Congress – represents a return to the climate change policy fold for the US. The US has already returned to the 2015 Paris Agreement on climate change, and President Biden’s $2 trillion infrastructure and climate bill has profound implications for development on reducing carbon emissions, expanding sustainable housing and public transport.
In January 2021 the company was advised by the Investment Adviser, Jupiter Asset Management Limited, that Charlie Thomas, the fund manager of the company since 2006, would be leaving Jupiter to take on a new role. Further to this news, the board was pleased to announce that Jupiter fund manager Jon Wallace has been appointed to assume lead fund management responsibility for the company.
Jon is well known to the board, having worked closely with Charlie on the Trust since 2014 after joining Jupiter’s Environmental Solutions team in 2009. Jon has an in-depth knowledge of the portfolio, and a strong expertise in seeking out the key innovators in the green technology space. We look forward to working closely with him to continue to deliver an exciting and differentiated investment opportunity for our growing shareholder base.
The board would like to extend its thanks to Charlie for his commitment to the company and its shareholders over the past 14 years, and wishes him the very best for his new challenge.
I am also pleased to note that Jupiter has committed to achieving net zero emissions by 2050 across its full range of investments and operations, including your own company, reflecting the urgent need to limit global warming to less than 1.5 degrees C in line with the Paris Agreement. The Investment Adviser has also aligned its strategy, purpose and principles with the UN Global Compact such that all investment decision-making and engagement is guided by the principles of the UNGC and all investee companies are expected to abide by the Compact’s Ten Principles, committing to meeting fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.
Investment performance
During the twelve months under review the total return on the net asset value of the company’s ordinary shares was 52.6%. This compares with an increase of 64.5% in the company’s share price and a 61.0% gain for the company’s new benchmark index, the MSCI World Small Cap Index.
As referenced in the interim report for this year, the change of benchmark was undertaken due to a shift in the investment focus of the company towards companies innovating to drive environmental solutions, many of which are classified as smaller companies. A review of the investment performance of the company over the course of the period, as well as further rationale on the adjustment in investment focus, is set out by Jon Wallace in the Investment Adviser’s Review.
Dividend
On 2 September 2020, the board released a statement to the London Stock Exchange in which we explained that the changes to the investment focus of the company and the increasing bias towards smaller, innovative, companies were likely to provide the potential for higher capital growth while reducing the level of dividend income available for distribution to shareholders. As a result of the changes in the investment focus, the board has taken the decision to establish a dividend policy that would result in paying one final dividend per annum in October each year equal to the current revenue of the company. A resolution to declare a final dividend of 0.64p per share (2020: 1.30p) will be proposed at the company’s Annual General Meeting (‘AGM’) on 1 September 2021. Subject to shareholder approval, the final dividend will be paid on 1 October 2021 to those shareholders on the register as at 17 September 2021.
Capital and Reserves
The board is mindful of the need to maintain a flexible approach to share buybacks in order to support the discount management policy. As at 31 March 2020, most of the capital of the company was held in a share premium account and was therefore not available for distribution to shareholders or for share buybacks.
The board obtained shareholder approval at the AGM on 16 September 2020 to cancel the balance on the share premium account of £29.7 million and to allocate this amount, less £16,275, to a distributable reserve account of the company in order to increase distributable reserves. These reserves can be used to make distributions by way of dividends to, or share buybacks from, shareholders. This is a common procedure employed by investment trust companies which has no impact on the net assets of the company. The cancellation of the share premium account was approved by Companies House with effect from 29 October 2020.
Shares in the company traded at a premium to net asset value for most of the period since October 2020 which allowed the directors to issue shares out of treasury to satisfy investor demand. The total amount raised through tap issuance up to 31 March 2021 was £3.2m.
Shareholders were given the opportunity to subscribe for new ordinary shares on 1 April 2021 on the basis of one new ordinary share for every ten held. The subscription price was 173.31p. Subscriptions were received from shareholders resulting in the issue of 1,182,328 shares from treasury on this occasion. As a result of both tap issuance in the period and subscription share issuance, the share capital of the company increased by £5.2m. Since 31 March 2021 a further 342,000 shares have been issued (excluding the subscription exercise), raising the share capital by a further £0.9m. While this represents good progress against the company’s strategic objective to increase the size of the company the board recognises that the size of the company remains at the lower end of the size which is attractive to institutional and wealth management investors. More work is therefore planned to grow the company and on 14 June 2021 the board was given increased authority by shareholders to issue new shares, in addition to its existing authority passed at the last annual general meeting. This new authority will allow the board to continue to satisfy the demand for shares in the company up to the next annual general meeting on 1 September.
Gearing
Gearing is defined as the ratio of a company’s long term debt less cash held compared to its equity capital, expressed as a percentage. The effect of gearing is that, in rising markets, the company tends to benefit from any growth of the company’s investment portfolio above the cost of borrowing. Conversely, in falling markets the company suffers more if the company’s investment portfolio underperforms the borrowing cost.
On 24 August 2020 the company entered into a revolving loan facility agreement with Royal Bank of Scotland International Limited for £5 million which the investment adviser has been authorised by the board to draw down for investment purposes. The facility to gear the company’s investment portfolio is deployed tactically by the investment adviser with a view to enhancing shareholder returns. The directors have determined that the maximum level of gearing will be 25% of the company’s total assets at the time of drawdown.
As at 31 March 2021 the company’s net gearing level was 0% (being the amount of drawn down bank debt, less cash held on the balance sheet pending investment on that date, as a proportion of the company’s total assets).
Outlook
With the UN COP26 conference on the horizon, the issue of climate change is an area of unusual unanimity among world leaders. The UK has recently announced more ambitious targets towards net zero emissions, and even China – by far the world’s biggest carbon emitter – has shifted policy, committing to be carbon neutral by 2060. These commitments are to be welcomed, but it is crucial that these promises are delivered upon. We live on a planet that has finite resources, which we are already over-consuming. The debate surrounding these critical issues will evolve over the next decade and will ultimately impact business models, with major implications across a wide variety of industries.
Climate change is a long-term problem that will need long-term solutions, which is why we feel that environmental themes can present multi- year, indeed even multi-decade, opportunities. Jon Wallace and his team will look to take advantage of any underappreciated opportunities that arise as a result of ongoing market turmoil with an eye towards generating long-term returns for the company’s shareholders. As we have seen in the past, unprecedented change can create significant investment opportunities across each of the seven investment themes that comprise the portfolio.
Michael Naylor
Chairman
5 July 2021
Investment Adviser’s Review
Market review
The period under review began with the extraordinary global market turbulence triggered by the COVID-19 pandemic. Global equities sold off sharply in March 2020 as many economies went into lockdowns, although markets rebounded strongly in April, led by US equities. Unprecedented levels of swift support from both government and central banks, coupled with a gradual easing in lockdown measures, underpinned an especially strong recovery in growth and technology stocks.
While investor sentiment weakened somewhat in September and October, November marked a pivotal moment for the pandemic following successful COVID-19 vaccine trials; investors began to shift their focus towards a world post COVID-19. A Biden victory in the US presidential election at the beginning of November was also supportive for markets as it was viewed as the more ‘market- friendly’ outcome. Equities continued to trend higher in December, supported by ongoing global vaccine rollouts.
Moving into 2021, global equities rose over Q1, supported by successful rollouts of COVID-19 vaccines in the US and UK, and ongoing supportive fiscal and monetary policy. Bullish sentiment about greater economic growth expected later this year was further boosted by significant fiscal stimulus from the new Biden administration in the US in March. A $1.9trn stimulus package was swiftly passed as well as plans for a further $2trn package of infrastructure measures aiming to address the long-term effects of the pandemic and reinvigorate productivity and the economy in the US. Lowly valued parts of the market fared well, as did smaller companies.
Environmental solutions were a big theme over the period, becoming a central feature of economic recovery programmes of many countries. In the US for example, Biden’s $2trn infrastructure proposal would mark a step change in the use of environmental solutions such as clean energy in the transportation, electricity and building sectors. In September, the European Commission announced that by 2030 it aimed to reduce greenhouse gas emissions by at least 55% from 1990 levels, compared to its previous target of 40%. The EU’s recovery package also embeds action on climate change by including investment in renewable energy, clean hydrogen, batteries and sustainable energy infrastructure. China unexpectedly pledged to be carbon neutral by 2060.
Investment review
Our company’s approach to investing in environmental solutions remains focused on seven sustainable themes:
- Circular economy: solutions for sustainable materials and resource stewardship
- Clean energy: generation, storage and distribution
- Water: conservation and management
- Mobility: technologies and services for sustainable movement
- Energy efficiency: enabling a low carbon transition
- Sustainable agriculture, nutrition and health: solutions protecting natural resources and well-being
- Environmental services: pollution control, testing and impact management
The COVID-19 pandemic and its associated economic crisis have triggered an acceleration in a number of structural sustainability trends in which the company is invested, including: sustainable agriculture, nutrition and health, sustainable mobility, clean energy, environmental services and the circular economy.
As a result, during the period under review we increased the company’s investment focus on companies which are innovating technological solutions to environmental challenges (‘innovators’) and those companies that already have a proven solution set to continue rapid growth within their addressable markets (‘accelerators’). We believe this should deliver higher capital growth and overall higher returns to shareholders, with a focus on delivering an above-market total return. We expect lower dividend payments as a result of this approach.
A natural feature of these changes is a greater focus on smaller and mid-size companies which are often at the forefront of the innovation driving environmental solutions. In light of this, the benchmark of the company is now the MSCI World Small Cap Index. We believe this widely-used index will provide a more suitable and understandable reference point by which investors can assess the performance of the company in the long-term.
Portfolio transition over the 12 month period
| 31.03.21 (% ex cash) | 31.03.20 (% ex cash) |
Innovator | 16 | 6 |
Accelerator | 48 | 40 |
Established Leader | 36 | 54 |
‘Innovator’ and ‘Accelerator’ companies were a dominant driver of returns over the period, with contribution notably strong from those companies in the Clean Energy and Circular Economy themes. Amongst the top performers were wind turbine maker Vestas, offshore wind developer Orsted, and fuel cell technology leader Ceres Power, all of which sit in the Clean Energy theme.
In the Circular Economy theme, Re:NewCell also contributed significantly to overall performance. Alongside Ceres Power, Re:NewCell is a newcomer to the company that embodies an ‘Innovator’ stage company, bringing new solutions to the mass textile industry that enable recycling of clothing materials in a true ‘circular’ model. This solution will, we believe, begin to positively address the deep sustainability challenges within the global textile industry.
Another addition to the portfolio was Borregaard, a Norwegian biorefinery also in the Circular Economy theme albeit closely linked to Sustainable Agriculture. Borregaard uses waste wood to develop wood-based substitutes for petroleum and we believe is an example of a compelling environmental solution with a large addressable market, but one that hasn’t yet received the attention of the wider investment market. We believe it should benefit from the commitments of consumer goods companies to use more natural ingredients and avoid petroleum, as well as from supportive policy developments.
In other trading news, we added to our position in DSM (Sustainable Agriculture, Nutrition & Health). While we had previously bought shares in the company on broad market weakness, its continued shift to higher value nutrition markets under the new management line-up and a strengthened balance sheet give the company a strong platform to grow earnings in the medium term. During this time frame, we also believe it is set to benefit from emerging environmental solutions including those addressing challenges in the agriculture sector and aquaculture markets, both of which are now rapidly seeking to address a large (and growing) climate and broader environmental footprint.
Notable holdings that detracted from performance in absolute terms were Loop Industries (Circular Economy), East Japan Railway Company (Sustainable Mobility), Cranswick (Sustainable Agriculture Nutrition & Health), and Pennon Group (Water) – all of which are no longer held – as well as Teamviewer (Energy Efficiency).
Top five contributors and detractors |
| ||
|
|
| |
Detail | % Average Weight | Total Return (%) | Contribution to Return (%) |
VESTAS WIND SYSTEMS A/S | 3.86 | 130.76 | 4.08 |
HANNON ARMSTRONG SUSTAINABLE | 2.91 | 158.14 | 3.16 |
RE:NEWCELL AB | 1.28 | 85.33 | 2.89 |
ORSTED A/S | 3.73 | 50.31 | 2.01 |
CERES POWER HOLDINGS PLC | 1.13 | 193.80 | 1.88 |
RICARDO PLC | 0.19 | -14.91 | -0.13 |
PENNON GROUP PLC | 1.24 | -10.68 | -0.20 |
TEAMVIEWER AG | 0.75 | -16.69 | -0.29 |
EAST JAPAN RAILWAY CO | 0.37 | -24.20 | -0.33 |
LOOP INDUSTRIES INC | 0.06 | -42.46 | -0.55 |
Source: Bloomberg. |
|
|
|
Outlook
It has been encouraging to see how, over the course of the COVID-19 pandemic, the drivers of green investment have continued to gain momentum. This was by no means assured at the beginning of the review period, and stands in notable contrast to the years following the last major global crisis in 2008/9.
Looking beyond the many headlines of the heightened financial and political capital that is mobilising to address pressing environmental challenges such as climate change, it is now becoming clear that our investment opportunity is entering a new and decisive phase. The continued growth of environmental solutions that have for many years been central to global efforts to address related challenges, such as Clean Energy technologies, will of course continue to play a key role in achieving critical sustainability goals. However, they alone will be insufficient. Developing and applying new, innovative solutions towards ‘hard to tackle’ sectors of the economy that have to date made little progress transitioning to an environmentally sustainable pathway marks the next major challenge and one that brings with it a new opportunity set.
The company is well-positioned to take advantage in this evolving landscape, having the flexibility to meaningfully invest in smaller, ‘innovator’ stage companies as well as unquoted companies. While there are no unlisted companies in the portfolio currently, we are committed to investing in such opportunities in the future where we see the potential to achieve higher returns as well as adding diversity to the company’s existing investments.
Jon Wallace
Fund Manager
Jupiter Asset Management Limited
Investment Adviser
5 July 2021
Latest Insights
Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested.
We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice.
Investment trust companies are traded on the London stock exchange, therefore the ability to buy or sell shares will be dependent on their market price, which may be at a premium or discount to their net asset value.
Jupiter Green Investment Trust PLC
The Jupiter Green Investment Trust can borrow money and use it to invest, known as being ‘geared’. This may increase returns but can also result in sudden and large falls in the value of the shares. In the event it is necessary for the company to repay sums it has borrowed during market declines, this repayment could have a negative effect on future capital growth.
Before making an investment decision, please read the PRIIPS Key Information Document which is available from Jupiter on request and at www.jupiteram.com.
Past performance is no guide to the future.
Company examples are for illustrative purposes only and are not a recommendation to buy or sell.
The Company currently conducts its affairs so that its shares can be recommended by Financial Advisers to ordinary retail investors in accordance with the Financial Conduct Authority’s (FCA) rules in relation to non-mainstream pooled investment products and intends to continue to do so for the foreseeable future. The Company’s shares are excluded from the FCA’s restrictions which apply to non-mainstream pooled investment products because they are shares in an investment trust.
This website provides links to third party websites over which Jupiter has no control. These links are provided for your convenience and Jupiter accepts no responsibility for the content of such websites.