TIDMJDT
RNS Number : 3964B
Jupiter Dividend & Growth Trust PLC
03 April 2017
Jupiter Dividend & Growth Trust plc (the 'Company')
Annual Financial Results for the year ended 31 December 2016
This announcement contains regulated information
Financial Highlights
Performance
As at As at
31.12.16 31.12.15 % change
Total assets less current
liabilities (GBP'000) 55,956 53,957 +3.7
FTSE All-Share Index (Capital)* 3,873.22 3,444.26 +12.5
FTSE All-Share Index (Total
Return)* 6,424.25 5,502.42 +16.8
Share Performance
As at As at
31.12.16 31.12.15 % change
Zero Dividend Preference
shares
Mid market price (p) 125.75 114.75 +9.6
Net Asset Value (p) 137.58 131.73 +4.4
Discount (%) (8.6) (12.9) -
Ordinary Income shares
Mid market price (p) 3.50 3.63 -3.6
Net Asset Value (p) 0.75 1.13 -33.6
Premium (%) 366.7 221.2 -
Total dividends declared
and paid during the year
(p) 1.60 0.83 +92.8
Total Return (NAV & dividends)
(p) 2.35 1.96 +19.9
Common shares
Mid market price (p) 136.25 120.50 +13.1
Net Asset Value (p) 139.84 134.45 +4.0
Discount (%) (2.6) (10.4) -
Total dividends declared
and paid during the year
(p) 4.48 2.32 +93.1
Total Return (NAV & dividends)
(p) 144.32 136.77 +5.5
Revenue Performance
Year to Year to
31.12.16 31.12.15 % change
Revenue after taxation due
to Ordinary Income shareholders
(GBP'000) 1,317 1,174 +12.2
Return per Ordinary Income
share (p) 1.44 1.28 +12.5
Return per Common share (p)
(shown within revenue finance
costs) 4.02 3.66 +9.8
* This document contains information based on the FTSE All-Share
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 All-Share 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.
Strategic Report
Chairman's Statement
Investment Performance
The total assets less current liabilities of the Company
increased by 3.7 per cent. during the year to 31 December 2016. By
comparison, the Company's benchmark index, the FTSE All-Share
Index, increased by 12.5 per cent. (in capital terms) during the
same period.
The Net Asset Value of the Common shares increased by 4.0 per
cent. during the period under review from 134.45p to 139.84p
(including income and expenses), while the discount on the Common
shares narrowed from 10 per cent. to 3 per cent.
The Net Asset Value of the Zero Dividend Preference shares
increased by 4.4 per cent. during the period under review from
131.73p to 137.58p, while the discount on the Zero Dividend
Preference shares narrowed from 13 per cent. to 9 per cent.
Revenue & Dividends
The Company's revenues after tax for the year ended 31 December
2016 amounted to GBP1,317,000. Dividends totalling 1.60p (net) per
Ordinary Income share and 4.48p (net) per Common share were paid to
the respective shareholders for the year ending 31 December
2016.
On 17 January 2017, the Company declared a 4th interim dividend
of 0.65p (net) per Ordinary Income share and 1.82p (net) per Common
Share for the year ended 31 December 2016, which was paid on 17
February 2017.
The Company's planned liquidation on 30 November 2017
The Company has a planned life under the terms of its articles
of association to 30 November 2017, whereupon holders of Ordinary
Income, Common and Zero Dividend Preference shares will each have
an entitlement to redeem their holdings for cash in the context of
the liquidation of the Company. Further details of the capital
entitlements of each class of shareholders are set out in the
section entitled 'Capital Structure' on page 11 of the Company's
Annual Report & Accounts.
Hurdle rates between now and the end of the Company's planned
life
Between now and the end of the Company's planned life on 30
November 2017, the Manager estimates that the Company's investment
portfolio (total assets) would need to grow by approximately 6.7
per cent. (annualised, after meeting the operating expenses of the
Company) in order for the Common and Zero Dividend Preference
shareholders to expect a final entitlement on that date equal to
their preferred entitlement of 150p per share.
The Company's investment portfolio would need to grow by
approximately 20.5 per cent. on the same annualised basis in order
for the Company's Ordinary Income shareholders to expect a final
entitlement on that date equal to their closing middle market
price, as at 29 March 2017, of 4.50p per share.
In the event that the Company's investment portfolio does not
grow sufficiently to meet the final entitlements of Common and Zero
Dividend Preference shareholders on 30 November 2017 then those two
share classes will receive as much of the Company's capital assets
as are available for distribution in accordance with their
preferred entitlements to capital under the Company's articles of
association. Regrettably Ordinary Income shareholders would not
receive any capital distribution from the Company in those
circumstances.
The hurdle rates refer to capital growth only and do not take
into account any further dividend(s) which may be payable to
Ordinary Income or Common shareholders between now and 30 November
2017.
Reconstruction proposals for the Company
Detailed proposals for the liquidation or reconstruction of the
Company and information about the arrangements for shareholders
wishing to either cash in their investment at the end of the
Company's planned life on 30 November 2017 or to continue or 'roll
over' their investment in a UK capital gains tax efficient manner
have yet to be formulated in detail. The directors are considering
various options and proposals are expected to be announced in the
autumn.
A circular will be sent to all shareholders at that time
containing full details of the proposals. All shareholders will, in
any event, be given an opportunity to elect for cash should they
wish to conclude their investment in the Company on 30 November
2017 rather than roll over their investment.
Since any proposals for the continuation or reconstruction of
the Company will necessarily require the prior approval of
Shareholders at a General Meeting there can be no guarantee, at
this stage, that any such proposals will be implemented. This is
reflected in the comments in Note 1 of the Annual Report &
Accounts which relate to the going concern basis on which these
accounts have been prepared. It is anticipated that the Manager
will make a material contribution towards the cost of
implementation of the Company's reconstruction proposals.
Annual General Meeting
The Company's Annual General Meeting ('AGM') will be held on
Tuesday 13 June 2017 at 11:45 at the offices of Jupiter Asset
Management Limited, The Zig Zag Building, 70 Victoria Street,
London, SW1E 6SQ.
Outlook
Solid global growth is anticipated this year as the US economy
continues to improve, although expectations for what the Trump
administration can actually achieve may have got ahead of
themselves, especially since the high debt level burden that it and
other developed economies have has not gone away.
While this upbeat mood may continue for a while longer,
scepticism is warranted on the size and consequences of the
positive multiplier effect of Trump's proposed aggressive fiscal
easing given that the debt burden remains deflationary. If there is
a strong cyclical upturn, the US central bank (aware of the
leverage in the system) is likely to temper this with higher
interest rates. Elsewhere, the eurozone still has the potential to
be a disruptive catalyst for world financial markets. Set against
this, China might surprise on the upside.
In the UK, the risks around Brexit are substantial. Given that
the EU has a long history of putting politics ahead of economic
self-interest the possibility of a 'no deal' outcome should not be
ignored. In the longer term, the UK's open trading instincts should
prove successful. It is already a big player on the global stage in
areas like pharmaceuticals, finance, media, education and
technology - all areas which are unlikely to be much hampered by
trade agreements. London still remains an attractive place to do
business.
For the Company, every twist and turn of the Brexit saga is
likely to be reflected and amplified in the ups and downs of
sterling. The investment adviser has already taken action to
reshape the Company's assets towards more global and defensive
areas, while remaining opportunistic on those domestic businesses
whose fundamentals continue to look supportive over the medium
term. In the short term, uncertainty looks set to remain high in
2017.
Martin Boase
Chairman
3 April 2017
Investment Adviser's Review
Market Review for 2016
In the period under review the FTSE All Share (capital only)
Index returned 12.5 per cent. while the total assets of the Company
rose 3.7 per cent.
The year began with a bang when China allowed the yuan to fall
against the dollar and trading on the country's stock market was
suspended temporarily. Global investors feared a potential
implosion of the country's credit bubble on the back of faltering
growth. China later calmed markets with a massive fiscal stimulus
but the first quarter of 2016 was highly volatile as markets
underwent a bout of rotation.
In the second quarter, there were clear signs that the domestic
economy slowed as plans were put on hold ahead of the UK referendum
on EU membership in June. The latter half of that month was
particularly volatile for equities as investors responded to the
fluctuating opinion polls ahead of the vote and then immediately
afterwards to the unexpected result. Sterling fell swiftly to a
30-year low against the dollar as global investors took fright.
Although equity markets were quick to reprice global blue chip
businesses, domestic stocks were marked down to reflect the fears
of a self-inflicted recession. In fact, the UK economy slowed much
less than expected. This was due to a boost from a weaker Sterling
along with supportive action by the Bank of England. Consumer
confidence and private sector activity - particular services - held
up surprisingly well.
On the world stage, OPEC proposed its first production cap since
2008. This sent the price of Brent crude up from a trough of $28 a
barrel in January to $56 a barrel by the end of December - a near
doubling and closer to levels where UK oil majors' dividends are
fully covered. The fourth quarter was positive for UK equities
buoyed by a number of stronger-than-expected data points for the
economy and a reanimation of 'animal spirits' arising from Donald
Trump's unexpected election victory and his proposed tax cuts. Oil
prices surged in December after both OPEC and some significant
non-OPEC countries agreed to reduce output.
Policy Review
The Company was buffeted by three large bouts of sector rotation
in the equity market.
The first, early in the year was a reversion from 2015's winners
and losers. For example, we have long steered clear of mining
stocks but these bounced strongly from distressed prices after a
weaker dollar boosted commodity prices and led to a sector-wide
bear squeeze, e.g. Glencore and Anglo American rallied 75 per cent.
and 83 per cent. respectively in the quarter, while struggling
supermarkets Tesco and Morrison surged 27 per cent. and 32 per
cent. Your Company owned none of these; the rotation came at the
expense of the more reliable areas of the market in which we were
invested including some retailers such as Next.
The second, saw a gradual sell off of domestic cyclicals ahead
of the EU vote followed immediately by indiscriminate selling after
the surprise result. This hurt returns as your Company had
significant exposure to such businesses. Immediately following the
vote to Leave, domestic cyclicals such as ITV and housebuilders
Crest Nicholson and Galliford Try sold off sharply on fears that a
self-inflicted recession would curtail advertising spending in 2017
and cause a 10 per cent. fall in house prices wherein housebuilder
earnings would fall by 20 per cent.
The third, saw a huge rotation out of bond proxies and into
cyclicals (financials, miners) as the market began to price in
prospects of an upturn in ultra-low US interest rates and
significant fiscal stimulus. The effect was enhanced by Donald
Trump's surprise win in the US presidential election. Although we
did not own 'expensive' bond proxies such as Unilever, Diageo and
Reckitt Benckiser, we did own 'cheap' bond proxies such as
pharmaceuticals, telecoms and tobacco. So this rotation was not
entirely painless.
In the first half of the reporting year there were strong
returns from Verizon, Imperial Brands, Royal Dutch Shell, Royal
Mail and car insurer esure. In early February we thought pessimism
around low oil prices was overdone so we added to BP (an attractive
yield not under immediate threat) and bought Centrica which should
be able to deliver solid dividend growth even if the oil price were
to remain around $35 a barrel for the next three years. We added to
Conviviality whose transformative takeover of Matthew Clark
delivered synergies faster than expected.
A slowing in the UK domestic economy led us to reduce our
exposure to banks such as Lloyds Banking Group (Lloyds) and
businesses susceptible to a slowdown in consumer discretionary
spending such as N Brown and William Hill. We took some profits in
Cineworld as the shares were fully valued. We sold retirement home
builder McCarthy & Stone following its Initial Public Offering
(IPO) after the shares rallied some 40 per cent. to a full
valuation.
It is fair to say that the vote for Brexit was not expected by
either side. The Company had been positioned for a Remain vote so
immediately following the result we acted swiftly to reduce some of
our pure domestic exposure due to lower conviction about their
immediate prospects - we cut positions such as Balfour Beatty
(construction) and Next. We made the Company more defensive and
less reliant on discretionary spending.
That said, we added to positions where we felt the strongest
conviction, e.g. L&G, Aviva, Galliford Try and Crest Nicholson.
As the summer progressed, these stocks made significant recoveries
as companies confirmed that their current trading appeared to be
'business as usual.' We also increased our holdings in companies
with international earnings such as BAE Systems where weaker
sterling should make its products more attractive. We added to
Babcock International which benefits from long-term contracts and
good visibility in future earnings. In particular, we thought that
it was deserving of a higher valuation. We also added to Micro
Focus International which continued to deliver strong growth and a
significant dividend increase yet traded on much lower valuation
multiple than comparable companies.
Melrose operates a private equity style 'buy, improve, sell'
model. We took part in a placing to fund its purchase of Nortek
which we believe offers Melrose a clear opportunity to improve the
depressed profit margins of this US company. We also increased
international exposure by adding slightly to GlaxoSmithKline and
buying Novartis, whose shares were cheap in our view. After a
period of weakness we think the pharmaceutical giant is likely to
recover helped by rising sales of its new heart drug and a
restructuring of its eye care division. Other international
businesses held by your Company included AbbVie and Verizon.
We reduced our overall exposure to banks where lower base rates
were likely to delay prospects for a big step-up in dividends.
Thus, we trimmed Lloyds and sold Barclays in favour of adding to
HSBC where an increasingly strong capital position and the start of
a share buy-back programme suggested the high dividend yield was
sustainable and had the potential to grow if US interest rates
rose. We increased our weightings in insurance companies (Aviva,
L&G and Prudential) which already had attractive yields; these
looked set to grow further. For example, Aviva's acquisition of the
backbook of Friends Life should help the new CEO improve cash
generation and thus accelerate dividend growth.
We tended to pass on the majority of IPOs but we did take part
in the flotation of Hollywood Bowl - which continued to roll out
high quality, ten-pin bowling alleys that offer an affordable night
out. We think the business faces little competition while having
the ability to take market share from older, underinvested peers.
We saw considerable parallels with Cineworld which proved to be a
good investment for your Company. We also took part in an IPO of
Midwich Group, a B2B distributor of audio-visual equipment across
the UK and Europe. It has a large and diverse base of
customers.
Other new holdings included RPC and Informa. RPC is a plastic
product design and engineering company with global operations.
Packaging is not a high growth area but RPC has used its balance
sheet to grow strongly via select acquisitions in a highly
fragmented market. RPC enjoys steady underlying demand and good
pricing power. Informa is a publishing and events business
expanding in the US. We think it is attractively valued.
For the period under review, the strong performances came from
Micro Focus International, Royal Dutch Shell, Melrose, Mondi, TP
ICAP and BAE Systems. Set against this, negative contributions
compared to the index came from some domestic holdings (e.g. BT,
Crest Nicholson and ITV) and particularly from not holding any
miners.
Outlook
We believe there will be two defining themes for markets in
2017: policy uncertainty and stagflationary pressures. The policy
uncertainty is likely to arise as mainstream parties adapt their
policies to the rise of populism. This widens the spectrum of risk
for investors both positively and negatively. A series of elections
across the eurozone (Netherlands, France and Germany) is set to
heighten unpredictability. This necessarily includes increased
market unpredictability given that polling organisations now find
it hard to assess voters' intentions correctly. For example, should
she win (pollsters say it's unlikely) Marine Le Pen has promised
France an In-Out referendum on EU membership within six months.
That would be of systemic importance and, in our view, favours a
more risk averse positioning. The lesson of 2016 was not to
underestimate the potential for game-changing populist
backlashes.
In the UK, we will be dealing with the fallout from Brexit
uncertainty for several years. At the very least, this is likely to
restrain investment and, with sterling taking the immediate
pressure, consumers look set to face lower real disposable incomes.
Arguably, the Bank of England was overzealous in the scale of its
initial reaction to the Brexit vote and we expect it to ease back
on those measures during the course of the year.
Equity markets began 2017 in a skittish mood. For example, any
shares regarded as 'safe' were sold in favour of the so-called
'reflation trade', i.e. miners, banks and other companies that may
benefit from tax cuts/infrastructure spending and the higher
interest rates likely to arise from an uptick in inflationary
pressures. The Company has coped well enough with that, although
not owning miners has hurt relative performance. We think the
reflation trade has got a little further to run; Trump can enact
tax cuts fairly quickly and feel these will surely give a fillip to
US equities. Set against this is the likelihood that a stronger
dollar will weigh on world trade, while higher oil prices if
sustained will reverse some of the effective 'tax cut' enjoyed by
consumers last year.
In the UK, we remain wary of retailers and other areas likely to
be squeezed by higher input prices (from a weaker pound) and lower
real disposable incomes. So far, consumers have confounded
economists and carried on spending but, six to nine months hence,
we would expect higher inflation and higher oil prices to begin to
bite. Even if retailers enjoy another reasonable quarter we would
expect such companies to remain downbeat in their outlook
statements - no chief executive wants to be the last optimist
standing.
We expect real economic activity to remain muted and tail risks
to remain prevalent - placing a lid on the extent to which bond
yields can rise and thus potentially underpinning share valuations.
The election of Donald Trump does not change the structural
constraints to growth such as excessive debt, over-extended
monetary policy and demographic trends, which all remain in place.
However, this shift to populism and renewed focus on fiscal policy
at a time when economic capacity looks stretched, does increase the
spectrum of risks.
Such a scenario of low real growth, but more uncertain inflation
outlook, is likely to cause considerable volatility in markets and
create a conundrum for policy makers. Our view is that the current
short-term boost to economic activity is the tail end of the
transitory benefits of China's government stimulus and lower oil
prices from the start of 2016, pushed along by a post-US election
confidence boost. We expect these benefits to roll off over coming
months and the secular trends to reassert themselves.
Alastair Gunn
Fund Manager
Jupiter Asset Management Limited
Investment Adviser
3 April 2017
Investment Portfolio
Market
value Percentage
Company Sector GBP'000 of Portfolio
BP Oil & Gas 3,414 6.1
Royal Dutch Shell
'B' Oil & Gas 3,176 5.7
HSBC Holdings Financials 2,954 5.3
Imperial Brands Consumer Goods 1,945 3.5
Aviva Financials 1,845 3.3
GlaxoSmithKline Health Care 1,756 3.1
Legal & General Group Financials 1,669 3.0
Playtech Consumer Services 1,650 2.9
Micro Focus International Technology 1,570 2.8
WPP Consumer Services 1,541 2.8
BT Group Telecommunications 1,467 2.6
AstraZeneca Health Care 1,439 2.6
Galliford Try Consumer Goods 1,432 2.6
Crest Nicholson Consumer Goods 1,428 2.6
British American Tobacco Consumer Goods 1,386 2.5
AbbVie Health Care 1,368 2.5
Mondi Basic Materials 1,309 2.3
BAE Systems Industrials 1,296 2.3
Vodafone Group Telecommunications 1,199 2.2
Babcock International
Group Industrials 1,189 2.1
Conviviality Consumer Services 1,187 2.1
CRH Industrials 1,126 2.0
Prudential Financials 1,055 1.9
Ryanair Holdings Consumer Services 992 1.8
esure Group Financials 957 1.7
TP ICAP Financials 952 1.7
Cineworld Group Consumer Services 931 1.7
Royal Mail Industrials 923 1.7
Centrica Utilities 854 1.5
ITV Consumer Services 822 1.5
Standard Chartered Financials 762 1.4
Verizon Communications Telecommunications 756 1.4
Greencore Group Consumer Goods 750 1.3
RPC Group Industrials 745 1.3
IMI Industrials 648 1.2
Keller Group Industrials 637 1.2
Halfords Group Consumer Services 565 1.0
Informa Consumer Services 558 1.0
Melrose Industries Industrials 557 1.0
International Consolidated
Airlines Group Consumer Services 551 1.0
Novartis Health Care 531 1.0
KCOM Group Telecommunications 474 0.9
Lloyds Banking Group Financials 469 0.8
Sage Group Technology 458 0.8
Hollywood Bowl Group Consumer Services 384 0.7
Midwich Group Industrials 371 0.7
N Brown Group Consumer Services 370 0.7
Smith & Nephew Health Care 365 0.6
Gocompare.Com Group Consumer Services 336 0.6
Direct Line Insurance
Group Financials 295 0.5
Ladbrokes Coral Group Consumer Services 290 0.5
Total Investments 55,704 100.0
-------------------------------------------------- -------- -------------
Cross Holdings in other Investment Companies
It is the Company's stated policy that this exposure should not
be permitted to exceed 15 per cent. of Total Assets. As at 31
December 2016, none of the Company's assets were invested in listed
closed-ended investment funds.
Sector Analysis of Investments
Overseas UK
2015 2016 Percentage Percentage
% % Equities of Portfolio of Portfolio
7.2 11.8 Oil & Gas
7.2 11.8 Oil & Gas Producers 11.8
2.3 2.3 Basic Materials
2.3 2.3 Forestry & Paper 2.3
9.5 13.5 Industrials
4.2 4.2 Construction Materials 4.2
- 1.3 General Industrials 1.3
- 2.3 Aerospace & Defence 2.3
1.1 1.2 Industrial Engineering 1.2
2.4 2.8 Support Services 2.8
1.8 1.7 Industrial Transportation 1.7
14.9 12.5 Consumer Goods
0.6 - Automobiles & Parts -
1.5 1.3 Food Producers 1.3
6.8 5.2 Household Goods 5.2
6.0 6.0 Tobacco 6.0
9.5 9.8 Health Care
Health Care Equipment
- 0.7 & Services 0.7
9.5 9.1 Pharmaceuticals & Biotechnology 3.4 5.7
22.3 18.3 Consumer Services
2.1 2.1 Food & Drug Retailers 2.1
5.8 5.9 Media 5.9
3.3 1.7 General Retailers 1.7
11.1 8.6 Travel & Leisure 1.8 6.8
3.5 3.6 Technology
Software & Computer
3.5 3.6 Services 3.6
10.1 7.1 Telecommunications
3.5 2.2 Mobile Telecommunications 2.2
6.6 4.9 Fixed Line Telecommunications 1.4 3.5
0.8 1.5 Utilities
0.8 1.5 Gas, Water & Multiutilities 1.5
19.4 17.9 Financials
8.5 7.5 Banks 7.5
7.2 8.2 Life Insurance 8.2
3.7 2.2 Nonlife Insurance 2.2
0.5 1.7 Financial Services
0.5 1.7 General Financial 1.7
100.0 100.0 Total Equities 6.6 93.4
----- ----- ----------------------------------- ------------ ------------
Strategic Review
The Strategic Report has been prepared in accordance with the
Companies Act 2006 (Strategic Report and Directors' Report)
Regulations 2013.
The Strategic Report seeks to provide shareholders with the
relevant information to enable them to assess the performance of
the Directors of the Company during the period under review.
Business and Status
During the year the Company carried on business as an investment
trust with its principal activity being portfolio investment. The
Company has been approved by HM Revenue & Customs as an
investment trust subject to the Company continuing to meet the
eligibility conditions of sections 1158 and 1159 of the Corporation
Taxes Act 2010 and the ongoing requirements for approved companies
as detailed in Chapter 3 of Part 2 of the Investment Trust
(Approved Company) (Tax) Regulations 2011. In the opinion of the
Directors, the Company has conducted its affairs in the appropriate
manner to retain its status as an investment trust.
The Company is an investment company within the meaning of
section 833 of the Companies Act 2006.
The Company is not a close company within the meaning of the
provisions of the Corporation Tax Act 2010 and has no
employees.
The Company was incorporated in England & Wales on 28
September 1999 and started trading on 30 November 1999, immediately
following the Company's launch.
Reviews of the Company's activities are included in the
Chairman's Statement and Investment Adviser's Review on pages 4 to
6 of the Annual Report & Accounts.
There has been no significant change in the activities of the
Company during the year to 31 December 2016 and the Directors
anticipate that the Company will continue to operate in the same
manner during the current financial period.
Planned life of the Company
The life of the Company was extended in January 2009 from 30
November 2010 to 30 November 2017. On 30 November 2017 the
directors are required to convene an Extraordinary General Meeting
and propose a resolution requiring the Company to be wound up
voluntarily unless the directors have previously been released from
the obligation by the Company's shareholders.
The limited life of the Company is designed to ensure that all
shareholders can realise the underlying Net Asset Value of their
shares (after liquidation costs), irrespective of their market
price on the winding-up date.
Investment Objective
The investment 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 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 Adviser'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 Total Assets in other listed closed-ended investment funds
as defined in section 15.6.8 of the Listing Rules. As at 31
December 2016, none of the Company's assets were invested in listed
closed-ended investment funds.
Investment Strategy
The Investment Adviser is not currently limited in the asset
allocation between sectors, geographic regions or the types of
equities and equity-related securities in which the Company may
invest, but will consider each potential investment on its own
merits. The Investment Adviser will focus on the sectors that it
considers to be the most undervalued areas of the market from time
to time and the allocation of assets between different sectors will
be determined by the Investment Adviser in its absolute
discretion.
The Company concentrates on generating capital growth and income
rather than adhering closely to the Benchmark or any other indices.
It focuses on investing in companies where, in the opinion of the
Investment Adviser, valuations are low and growth in earnings or
assets is not fully appreciated. The Investment Adviser seeks to
identify companies within growth industries which enjoy certain key
characteristics, including an imaginative, proven and incentivised
management team and balance sheet strength. The portfolio also
concentrates on situations which can be easily analysed and
understood. The Investment Adviser intends to exercise caution with
respect to purchase prices and a strong sell discipline is
maintained where target valuations are exceeded.
The Board has not set an objective of a specific portfolio yield
for the Investment Adviser as the level of such yield is expected
to vary with the sectors and geographical regions to which the
Company's portfolio is exposed at any given time. However,
substantially all distributable revenues that are generated from
the Company's investment portfolio will be paid out in the form of
quarterly dividends.
Benchmark Index
The Company's benchmark index is the FTSE All-Share Index.
Gearing
Gearing is defined as the ratio of a company's total assets to
its net assets, expressed as a percentage. The effect of gearing is
that in rising markets a geared share class tends to benefit from
any out-performance of the relevant company's investment portfolio
above the cost of payment of the prior ranking entitlements of any
lenders and other creditors. Conversely, in falling markets the
value of the geared share classes suffer more if the Company's
investment portfolio under-performs the cost of those prior
entitlements.
The Company is geared by its Zero Dividend Preference and Common
shares. As at 31 December 2016, the gearing was 98.8 per cent. (31
December 2015: 98.1 per cent.).
Key Performance Indicators
At the quarterly board meetings the Directors consider a number
of performance indicators to help assess the Company's success in
achieving its objectives. The key performance indicators used to
measure the performance of the Company over time are as
follows:
-- Net Asset Value changes and the premium or discount of share
price to Net Asset Value over time;
-- Ordinary Income, Zero Dividend Preference and Common share price movement;
-- Zero Dividend Preference and Common share cover and Ordinary
Income and Common share yield and dividend rates; and
-- Peer group comparative performance.
A history of the Net Asset Value, Ordinary Income, Zero Dividend
Preference and Common share price and Benchmark Index are shown in
the monthly factsheets which can be viewed on the Company's section
of the Investment Adviser's website www.jupiteram.com/JDT and which
are available on request from the Company Secretary.
Capital Structure
Zero Dividend Preference Shares
The Zero Dividend Preference shares are designed to provide a
pre-determined capital entitlement of 150p on 30 November 2017
which ranks alongside the Common shares, behind the Company's
creditors (if any), but in priority to the capital entitlements of
the Ordinary Income shares. The Zero Dividend Preference shares are
not entitled to income and their entire return will take the form
of capital.
The Zero Dividend Preference shares entitle their holders to
vote at all general meetings of the Company. In addition, they
carry the right to vote as a class on certain proposals which would
be likely to materially affect their position.
Ordinary Income Shares
The Ordinary Income shares are designed to provide holders with
income and the possibility of capital growth alongside the Common
shares in the Ordinary Income Share Proportion*.
Ordinary Income shareholders are entitled to share alongside the
Common shares in the Company's surplus assets in the Ordinary
Income share proportion after satisfying the pre-determined
entitlements of the Zero Dividend Preference shares, the Common
shares and the Company's creditors (if any) on the planned
winding-up date of 30 November 2017. Any such surplus will be
shared with the holders of Common Shares in the Ordinary Income
Share Proportion*.
The Ordinary Income shares are geared by the Zero Dividend
Preference shares and Common shares both in terms of income, where
the Zero Dividend Preference shares have no entitlement and the
Common shares which have the entitlement in the Common Share
Proportion**, and capital, where the Zero Dividend Preference
shares and Common shares have a fixed entitlement.
The Ordinary Income shares entitle their holders to vote at all
general meetings of the Company. In addition, they carry the right
to vote as a class on certain proposals which would be likely to
materially affect their position.
Common Shares
The Common shares are designed to provide a pre-determined
capital entitlement of 150p on 30 November 2017, which ranks
alongside the Zero Dividend Preference shares, behind the Company's
creditors (if any), but in priority to the capital entitlements of
the Ordinary Income shares.
Common shares are also entitled to share in the Company's
surplus assets, after satisfying the pre-determined entitlements of
the Zero Dividend Preference shares and Common shares, (referred to
above) and the Company's creditors (if any) on the planned wind-up
date of 30 November 2017. Any such surplus will be shared alongside
the holders of Ordinary Income shares in the Common Share
Proportion**.
Common shareholders have the right to vote at general meetings
of the Company. In addition they carry the right to vote as a class
in certain circumstances. The Common shares are designed to provide
holders with income, alongside the Ordinary Income shares in the
Common Share Proportion**.
* Ordinary Income Share Proportion - the proportion of dividend
and capital distributions to which Ordinary Income shares are
entitled to share pari passu with the Common shares, calculated as
at 30 November 2010 as 80.41 per cent.
** Common Share Proportion - the proportion of dividends and
capital distributions to which the Common shares are entitled to
share pari passu with Ordinary Income shares, calculated as at 30
November 2010 as 19.59 per cent.
Dividend Policy
Dividends on the Ordinary Income Shares and the Common Shares
will be paid quarterly in arrears. From time to time, subject to
the requirements of the Corporation Tax Act 2010, the Directors may
retain income in the revenue reserve of the Company with a view to
producing a consistent level of dividends for Ordinary Income
Shareholders and Common Shareholders in subsequent accounting
periods.
Management
The Company has no employees and most of its day-to-day
responsibilities are delegated to Jupiter Asset Management Limited,
who act as the Company's Investment Adviser and Company
Secretary.
J.P. Morgan Europe Limited acts as the Company's Depositary and
the Company has entered into an outsourcing arrangement with J.P.
Morgan Chase Bank N.A. for the provision of accounting and
administrative services.
Although JAM is named as the Company Secretary, J.P. Morgan
Europe Limited provides administrative support to the Company
Secretary as part of its formal mandate to provide broader Fund
Administration services to the Company.
Viability Statement
In accordance with provision C.2.2 of the UK Corporate
Governance Code as issued by the Financial Reporting Council in
April 2016, the Board has assessed the prospects of the Company for
the period to 30 November 2017, being the date at which a
resolution will be put to shareholders at EGM for the Company to be
voluntarily wound up unless the directors have previously been
released from this obligation by the Company's shareholders. The
Board is of the opinion that this is an appropriate timeframe as it
will provide shareholders with assurances on the viability of the
Company until the end of its current planned life.
As part of its assessment, the Board has considered the
Company's business model including its investment objective and
investment policy as well as the principal risks and uncertainties
that may affect the Company as detailed below.
The Board has noted that:
-- The Company holds a highly liquid portfolio invested predominantly in UK listed equities; and
-- No significant increase to ongoing charges or operational
expenses is anticipated other than any associated costs which will
be incurred at the end of the current planned life of the
Company.
The Board has therefore concluded that there is a reasonable
expectation that the Company will be able to continue in operation
and meet its liabilities as they fall due over the period to 30
November 2017.
Risks and Uncertainties
The principal risk factors that may affect the Company and its
business can be divided into the following areas:
Investment Strategy and Share Price Movement - 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. The Board reviews the Company's
investment strategy and the risk of adverse share price movements
at its quarterly board meetings taking into account the economic
climate, market conditions and other factors that may have an
effect on the sectors in which the Company invests.
Liquidity Risk - This risk can be viewed as the liquidity of the
securities in which the Company invests and the liquidity of the
Company's shares. The Company may invest in securities that have a
very limited market which will affect the ability of the Company's
Investment Adviser to dispose of securities when he no longer feels
they offer the potential for future returns. Likewise the Company's
shares may experience liquidity problems when shareholders are
unable to realise their investment in the Company because there is
a lack of demand for the Company's shares. At its quarterly
meetings the Board considers the current liquidity in the Company's
investments when setting restrictions on the Company's exposure.
The Board also reviews, on a quarterly basis, the Company's buy
back programme and in doing so is mindful of the liquidity in the
Company's shares.
Gearing Risk - The Company's gearing (which includes the
Company's Zero Dividend Preference and Common shares) can impact
the Company's performance by accelerating the decline in value of
the Company's Total Assets at a time when the Company's portfolio
is declining. Conversely gearing can have the effect of
accelerating the increase in the value of the Company's Total
Assets at a time when the Company's portfolio is rising. At its
quarterly meetings the Board is mindful of the outlook for equity
markets when reviewing the Company's gearing.
Discount to Net Asset Value - A discount in the price at which
the Company's shares trade to Net Asset Value would mean that
shareholders would be unable to realise the true underlying value
of their investment. The Directors have powers granted to them at
the last Annual General Meeting to purchase Geared Ordinary shares
and Zero Dividend Preference shares as a method of controlling the
discount to Net Asset Value and enhancing shareholder value.
Regulatory Risk - The Company operates in a complex regulatory
environment and faces a number of regulatory risks. A breach of
section 1158 of the Corporation Tax Act 2010 could result in the
Company being subject to capital gains on portfolio movements.
Breaches of other regulations, such as the UKLA Listing Rules,
could lead to a number of detrimental outcomes and reputational
damage. Breaches of controls by service providers such as the
Investment Adviser could also lead to reputational damage or loss.
The Board relies on the services of its Company Secretary, Jupiter
Asset Management Limited, and its professional advisers to ensure
compliance with, amongst other regulations, the Companies Act 2006,
the UKLA Listing Rules and the Alternative Investment Fund Managers
Directive.
Credit and Counterparty Risk - The failure of the counterparty
to a transaction to discharge its obligations under that
transaction could result in the Company suffering a loss.
Loss of Key Personnel - The day-to-day management of the Company
has been delegated to the Investment Adviser. Loss of the
Investment Adviser's key staff members could affect investment
return. The Board is aware that Jupiter Asset Management Limited
(JAM) recognises the importance of its employees to the success of
its business. Its remuneration policy is designed to be market
competitive in order to motivate and retain staff and succession
planning is regularly reviewed. The Board also believes that
suitable alternative experienced personnel could be employed to
manage the Company's portfolio in the event of an emergency.
Operational - Failure of the Investment Adviser's core
accounting systems, or a disastrous disruption to its business,
could lead to an inability to provide accurate reporting and
monitoring. The Investment Adviser is contractually obliged to
ensure that its conduct of business conforms to applicable laws and
regulations.
Financial - inadequate financial controls could result in
misappropriation of assets, loss of income and debtor receipts and
inaccurate reporting of Net Asset Value per share. The Board
annually reviews the Investment Adviser's and the Administrator's
statements on its internal controls and procedures.
Directors
As at 31 December 2015, the Board comprises of four male
directors.
Employees, Environmental, Social and Human Rights issues
The Company has no employees as the Board has delegated the day
to day management and administration functions to Jupiter Unit
Trust Managers Limited ('JUTM'), Jupiter Asset Management Limited
('JAM') and other third parties. There are therefore no disclosures
to be made in respect of employees.
The Board has noted the Investment Adviser's policy on
Environmental, Social and Human Rights issues as detailed
below:
The Investment Adviser considers various factors when evaluating
potential investments. While an investee company's policy towards
the environmental and social responsibility, including with regard
to human rights, is considered as part of the overall assessment of
risk and suitability for the portfolio, the Investment Adviser does
not necessarily decide to, or not to, make an investment on
environmental and social grounds alone.
Global Greenhouse Gas Emissions
The Company has no greenhouse gas emissions to report from its
operations as the day to day management and administration
functions have been outsourced to third parties and it neither owns
physical assets, property nor has employees of its own. It
therefore does not have responsibility for any other emissions
producing sources under the Companies Act 2006 (Strategic Report on
Directors' Reports) Regulations 2013.
For and on behalf of the Board
Martin Boase
Chairman
3 April 2017
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report
and Accounts in accordance with applicable law and regulation.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
have elected to prepare financial statements in accordance with
United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable laws) including
Financial Reporting Standard 102, the financial reporting standard
applicable in the UK and the Republic of Ireland.
Under Company law the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the return of
the Company for that period. In preparing those financial
statements, the Directors are required to:
(a) select suitable accounting policies and then apply them
consistently;
(b) make judgements and accounting estimates that are reasonable
and prudent;
(c) state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
(d) prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Strategic Report, Directors' Report,
Directors' Remuneration Report and Statement of Corporate
Governance that comply with that law and those regulations.
The financial statements are published on www.jupiteram.com/JDT
which is a website maintained by Jupiter.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website. The work carried out by the auditor does not
include consideration of the maintenance and integrity of the
website and accordingly the auditor accepts no responsibility for
any changes that have occurred to the financial statements when
they are presented on the website. Legislation in the UK governing
the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Each of the Directors, confirm to the best of their knowledge
that:
(a) the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view
of the assets, liabilities, financial position and profit or loss
of the Company; and
(b) the Strategic Report and Report of the Directors include a
fair review of the development and performance of the Company,
together with a description of the principal risks and
uncertainties that the Company faces; and
(c) that in the opinion of the Board, the Annual Report &
Accounts taken as a whole, is fair, balanced and understandable and
it provides the information necessary to assess the Company's
performance, business model and strategy.
So far as each Director is aware at the time the report is
approved:
(a) There is no relevant audit information of which the
company's auditor is unaware; and
(b) The Directors have taken all the steps required of a company
director to make themselves aware of any relevant audit information
and to establish that the Company's auditor has been made aware of
that information.
By Order of the Board
Martin Boase
Chairman
3 April 2017
Income Statement
31 December 2016 31 December 2015
Revenue Capital Revenue Capital
Return Return Total Return Return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains from investments
held at fair
value through
profit or loss - 2,158 2,158 - 3,077 3,077
Foreign exchange
(loss)/gain - (7) (7) - 3 3
Income 2,373 - 2,373 2,224 - 2,224
Gross return 2,373 2,151 4,524 2,224 3,080 5,304
Investment management
fee (402) - (402) (397) - (397)
Other expenses (317) (3) (320) (322) (1) (323)
Net return on
ordinary activities
before finance
costs and taxation 1,654 2,148 3,802 1,505 3,079 4,584
Finance costs (324) (2,350) (2,674) (295) (3,466) (3,761)
Net return/(loss)
on ordinary activities
before taxation 1,330 (202) 1,128 1,210 (387) 823
Tax on ordinary
activities (13) - (13) (36) - (36)
------------------------- -------- -------- -------- -------- -------- --------
Net return/(loss)
on ordinary activities
after tax 1,317 (202) 1,115 1,174 (387) 787
------------------------- -------- -------- -------- -------- -------- --------
Net return/(loss)
per Ordinary
Income share 1.44p (0.22)p 1.22p 1.28p (0.42)p 0.86p
------------------------- -------- -------- -------- -------- -------- --------
Net return per
Common share 4.02p 5.85p 9.87p 3.66p 8.63p 12.29p
------------------------- -------- -------- -------- -------- -------- --------
The total column of this statement is the profit and loss
account of the Company.
All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued
in the year.
Statement of Financial Position
2016 2015
GBP'000 GBP'000
Fixed Assets
Investments held at fair value
through profit or loss 55,704 53,170
Total portfolio 55,704 53,170
Current assets
Debtors 158 149
Cash at bank 513 1,138
671 1,287
Creditors: amounts falling
due within one year (55,687) (500)
Net current (liabilities)/assets (55,016) 787
Total assets less current liabilities 688 53,957
Creditors: amounts falling
due after more than one year
Zero Dividend Preference shares
and Common shares - (52,918)
--------------------------------------- --------- ---------
Total net assets 688 1,039
--------------------------------------- --------- ---------
Capital and reserves
Called up share capital 8,235 8,235
Share premium 21,864 21,864
Special reserve 62,062 62,062
Capital reserve* (92,161) (91,959)
Revenue reserve* 688 837
--------------------------------------- --------- ---------
Total shareholders' funds 688 1,039
--------------------------------------- --------- ---------
Net Asset Value per Ordinary
Income share 0.75p 1.13p
--------------------------------------- --------- ---------
* Under the Company's Articles of Association any dividends are
distributed only from the revenue reserve.
Approved by the Board of Directors and authorised for issue on 3
April 2017 and signed on its behalf by:
Martin Boase
Chairman
Company Registration Number 3852295
Statement of Changes in Equity
Share Share Special Capital Revenue
For the year ended Capital Premium Reserve Reserve Reserve Total
31 December 2016 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2016 8,235 21,864 62,062 (91,959) 837 1,039
Net (loss)/return
for the year - - - (202) 1,317 1,115
Equity dividends
paid and declared - - - - (1,466) (1,466)
---------------------- -------- -------- --------- --------- -------- --------
Balance at 31
December 2016 8,235 21,864 62,062 (92,161) 688 688
---------------------- -------- -------- --------- --------- -------- --------
Share Share Special Capital Revenue
For the year ended Capital Premium Reserve Reserve Reserve Total
31 December 2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2015 8,235 21,864 62,062 (91,572) 424 1,013
Net (loss)/return
for the year - - - (387) 1,174 787
Equity dividends
paid and declared - - - - (761) (761)
---------------------- -------- -------- -------- --------- -------- --------
Balance at 31
December 2015 8,235 21,864 62,062 (91,959) 837 1,039
---------------------- -------- -------- -------- --------- -------- --------
Statement of Cash Flow
2016 2015
GBP'000 GBP'000
Net cash outflow from
operations (726) (716)
Dividends received 2,365 2,215
Taxation (13) (37)
Net cash inflow from
operating activities 1,626 1,462
--------------------------- --------- ---------
Purchases of investments (16,153) (15,215)
Sale of investments 15,730 14,083
Other capital charges (3) (1)
Net cash outflow from
investing activities (426) (1,133)
Cash flows from financing
activities
Equity dividends paid (1,466) (761)
Finance costs on Common
shares (359) (187)
Net cash outflow from
financing activities (1,825) (948)
--------------------------- --------- ---------
Decrease in cash and
cash equivalents (625) (619)
--------------------------- --------- ---------
Cash and cash equivalents
at the start of the year 1,138 1,757
Cash and cash equivalents
at the end of the year 513 1,138
(625) (619)
--------------------------- --------- ---------
Cash and cash equivalents
consist of:
--------------------------- --------- ---------
Cash at bank and in hand 513 1,138
513 1,138
--------------------------- --------- ---------
Notes to the Accounts
1. Accounting policies
(a) Basis of Preparation
The Financial Statements for the year ended 31 December 2016
have been prepared in accordance with UK Generally Accepted
Accounting Practice ('UK GAAP') including Financial Reporting
Standard 102, the financial reporting standard applicable in the UK
and Republic of Ireland and with the Statement of Recommended
Practice ('SORP') for Investment Trust Companies and Venture
Capital Trusts issued by the Association of Investment Companies
('AIC') in November 2014. The Company continues to adopt the going
concern basis in the preparation of the financial statements.
The financial statements have been prepared in accordance with
the Company's accounting policies as set out below. They are
presented in accordance with the Companies Act 2006 (the 'Act') and
the requirements of the Statement of Recommended Practice ('SORP')
'Financial Statements of Investment Trust Companies and Venture
Capital Trusts' issued in November 2014.
The financial statements are presented in sterling (GBP).
Statement of Compliance
The financial statements of the Company have been prepared in
compliance with United Kingdom Accounting Standards, including
Financial Reporting Standard 102, "The Financial Reporting Standard
applicable in the United Kingdom and the Republic of Ireland" ("FRS
102") and the Companies Act 2006.
(b) Revenue
Dividends on investments are included in revenue when the
investment is quoted ex-dividend. UK dividends are shown net of tax
credits. Interest on deposits is accounted for on an accruals
basis. The fixed return on a debt security is recognised on a time
apportionment basis so as to reflect the effective yield on the
debt security. Where the Company has elected to receive its
dividends in the form of additional shares rather than in cash, the
amount of the cash dividend is recognised as income. Any excess in
the value of the shares received over the amount of the cash
dividend is recognised in capital reserves.
(c) Expenses
Expenses are accounted for on an accruals basis. Management
fees, administration and other expenses are charged fully to the
revenue column of the income statement. That part of any Investment
performance fee which is deemed by the Directors to relate to the
capital outperformance of the Company's investments will be charged
to capital and that part relating to revenue outperformance will be
charged to revenue. Expenses which are incidental to the purchase
or sale of an investment are charged to capital.
(d) Finance costs
Finance costs are accounted for on an accruals basis in
accordance with the effective interest rate. Common share revenue
return is charged in full to the revenue column of the Income
Statement.
In accordance with the provisions of FRS 102 'The Financial
Reporting Standard applicable in the UK and Republic of Ireland'
the Zero Dividend Preference shares and Common shares are
classified as liabilities in the accounts and held at amortised
cost and finance costs of Zero Dividend Preference shares and
Common shares are charged to the capital column of the Income
Statement.
(e) Taxation
Withholding tax deducted at source from income received is
treated as part of the taxation charge in the income account, in
instances where it cannot be recovered. Deferred tax is recognised
in respect of all timing differences that have originated but not
reversed at the date of the Statement of Financial Position where
transactions or events that result in an obligation to pay more, or
right to pay less, tax in the future have occurred at the date of
the Statement of Financial Position. This is subject to deferred
tax assets only being recognised if it is considered more likely
than not that there will be suitable profits from which the future
reversal of the underlying timing differences can be deducted.
Timing differences are differences between the Company's taxable
profits and its results as stated in the financial statements which
are capable of reversal in one or more subsequent periods.
(f) Foreign Currency
Assets and liabilities denominated in foreign currencies are
translated at the rates of exchange ruling at the date of the
Statement of Financial Position.
Foreign currency transactions are translated at the rates of
exchange applicable at the transaction date.
Foreign currency differences are dealt with in the capital
reserve.
(g) Investments
The Company has chosen to adopt Sections 11 and 12 of FRS 102 in
respect of financial instruments.
Investments are recognised and derecognised on the trade date
where a purchase and sale of an investment is under contract whose
terms require delivery of the investment within the timeframe
established by the market concerned, and are initially measured at
cost, being the consideration given.
All investments are classified as fair value through profit or
loss and subsequently measured at fair value. Changes in the fair
value of investments listed at fair value through profit or loss
and gains and losses on disposal are recognised in the income
statement as 'Gains on investments at fair value through profit or
loss'. The fair value of listed investments is based on their
quoted bid market price of the Statement of Financial Position date
without any deduction for estimated future selling costs.
Foreign exchange gains and losses on fair value through profit
and loss investments are included within the changes in the fair
value of the investment.
(h) Going Concern
The financial statements have 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 remaining
planned life of the Company up until 30 November 2017. It is
anticipated that proposals for the continuation of the business of
the Company as a going concern (by means of a section 110 rollover
into another investment vehicle) will be put to shareholders prior
to its planned wind up date. Accordingly, these accounts have not
been prepared on a break up basis. 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. The
Directors continue to adopt the going concern basis of accounting
in preparing the financial statements.
2. Significant accounting judgements, estimates and
assumptions
Management have not made any accounting judgements to this set
of Financial Statements or prior period.
3. Income
2016 2015
GBP'000 GBP'000
Income from investments
UK dividend income
(net) 2,056 1,777
Dividends from overseas
companies 317 447
------------------------- -------- --------
2,373 2,224
------------------------- -------- --------
Total income comprises
Dividends 2,373 2,224
2,373 2,224
------------------------- -------- --------
Income from investments
Listed in the UK 2,056 1,777
Listed overseas 317 447
------------------------- -------- --------
2,373 2,224
------------------------- -------- --------
4. Return per share
2016 2015
Return per Ordinary Income share
Net revenue return applicable to
Ordinary Income shares (GBP'000) 1,317 1,174
Net capital loss (GBP'000) (202) (387)
----------------------------------------- ----------- -----------
Net total return (GBP'000) 1,115 787
----------------------------------------- ----------- -----------
Number of Ordinary Income shares
in issue during the year 91,675,333 91,675,333
Net revenue return per Ordinary
Income share 1.44p 1.28p
Net capital loss per Ordinary Income
share (0.22)p (0.42)p
----------------------------------------- ----------- -----------
Net return per Ordinary Income share 1.22p 0.86p
----------------------------------------- ----------- -----------
Return per Common share
Net revenue return applicable to
Common shares (GBP'000) 324 295
Capital growth entitlement (GBP'000) 471 695
----------------------------------------- ----------- -----------
Net total return (GBP'000) 795 990
----------------------------------------- ----------- -----------
Number of Common shares in issue
during the year 8,054,045 8,054,045
Net revenue return per Common share 4.02p 3.66p
Net capital return per Common share 5.85p 8.63p
----------------------------------------- ----------- -----------
Net total return per Common share 9.87p 12.29p
----------------------------------------- ----------- -----------
Return per Zero Dividend Preference
share
Capital growth entitlement (GBP'000) 1,879 2,771
Number of Zero Dividend Preference
shares in issue during the year 32,119,031 32,119,031
----------------------------------------- ----------- -----------
Net return per Zero Dividend Preference
share 5.85p 8.63p
----------------------------------------- ----------- -----------
5. Net Asset Value
The Net Asset Value per Ordinary Income and Common share as at
31 December 2016, calculated in accordance with the Articles of
Association, was as follows:
2016 2015
Net Net
Asset Value Asset Value
per share Net assets per share Net assets
attributable attributable attributable attributable
pence GBP'000 pence GBP'000
Ordinary Income
shares 0.75 688 1.13 1,039
----------------- ------------- ------------- ------------- -------------
2016 2015
Net Net
Asset Value Asset Value
per share Net assets per share Net assets
attributable attributable attributable attributable
pence GBP'000 pence GBP'000
----------------- ------------- ------------- ------------- -------------
Common shares 139.84 11,263 134.45 10,828
----------------- ------------- ------------- ------------- -------------
2016 2015
Net Net
Asset Value Asset Value
per share Net assets per share Net assets
attributable attributable attributable attributable
pence GBP'000 pence GBP'000
----------------- ------------- ------------- ------------- -------------
Zero Dividend
Preference
shares 137.58 44,188 131.73 42,309
----------------- ------------- ------------- ------------- -------------
6. Transactions with the Manager
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
total assets less current liabilities payable quarterly in
arrears.
The Management fee paid to JUTM for the period 1 January 2016 to
31 December 2016 was GBP402,325. Management fees of GBP105,000 were
outstanding as at 31 December 2016 (2015: GBP101,000).
With effect from 1 October 2016, the Board has agreed with the
Manager to cease calculating a performance fee for the Company.
7. Contingent liabilities and capital commitments
There were no contingent liabilities or capital commitments as
at 31 December 2016 (2015: GBPnil).
Availability of Annual Report
The Annual Report & Accounts will be posted to shareholders
shortly. Copies will also be available from the Company's
registered office, The Zig Zag Building, 70 Victoria Street, London
SW1E 6SQ. An electronic version of the Annual Report & Accounts
will also be available for download from the Company's section of
Jupiter Asset Management's website www.jupiteram.com/JDT.
For further information, please contact:
Richard Pavry
Head of Investment Trusts
Jupiter Asset Management Limited, Company Secretary
investmentcompanies@jupiteram.com
020 7314 4822
3 April 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UOAURBOASRAR
(END) Dow Jones Newswires
April 03, 2017 08:17 ET (12:17 GMT)
Jup Ord. (LSE:JDT)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Jup Ord. (LSE:JDT)
Gráfica de Acción Histórica
De May 2023 a May 2024
