Jupiter Sec SplitTst Interim Management Statement
17 Septembre 2013 - 12:10PM
UK Regulatory
TIDMJSS
Jupiter Second Split Trust PLC
Interim Management Statement for the three months ended 31 July 2013.
The Board of Jupiter Second Split Trust PLC (the "Company") announce its
Interim Management Statement for the quarter ended 31 July 2013.
The following report relates to the performance of the Company's
investment portfolio in the three months leading up to 31 July 2013.
For the period from 1 May 2013 to 31 July 2013, the Company's Total
Assets have decreased by 0.8% compared to 0.1% increase for the 3 month
sterling LIBOR.
Manager's Review
The period under review was volatile in asset markets with central bank
policy once again driving sentiment. May saw something of a boom and
bust in asset markets. "Abenomics" in Japan continued to drive a
precipitous surge in equities early in the month, which was undone by
the indication from Federal Reserve Chairman, Ben Bernanke, that
quantitative easing (QE) in the US may be tapered off in the next few
months if the economy continues to improve. Asset markets continued to
fall in June on the back of the Fed chairman's comments, underscoring
how difficult it will be to wean markets off the flow of easy money.
Yields for US treasury bonds increased to levels that potentially
jeopardise the recovery, while sovereigns and corporations around the
world experienced a sharp rise in borrowing costs. Concerns about a
liquidity squeeze in China added to the market's woes. Asset markets
bounced in July following comments by Ben Bernanke intended to ease
fears about a tapering of Fed policy. US stocks reached new highs and
most developed markets performed strongly. Bond markets in the UK and
the eurozone saw a limited retracement after both the Bank of England
and the European Central Bank issued forward guidance on interest rates
in an effort to stifle a rise in yields.
The portfolio lost some ground due to generally erratic price movements
across our key markets. The drop in the Norwegian krone against the euro
was particularly surprising given Norway's excellent balance sheet. In
our view, some of the setbacks in bonds were overdone, especially in
Australia where the economy is feeling the impact of lower commodity
prices. This provided the opportunity to add to our holding in
Australian government bonds during June. We also reconfigured our
Japanese exposure, reducing our short in the country's government bonds,
while adding a short position in the yen, which has the potential to
depreciate further given the scale of its QE programme.
We retain our short position in the euro, which should look increasingly
unattractive against the US dollar the more US monetary policy
normalises. The US dollar is a favoured long currency position in the
portfolio, as is the Norwegian krone. Long positions are also retained
in US stock indices including financials, which are attractive given the
relative strength of the domestic economy.
Outlook
We maintain the view that the "investor of the last resort" policies
central banks have adopted in recent years will prove hard to unwind
given the dependencies these policies have created in finance markets
and the wider global economy. We are particularly aware that at a time
when the Federal Reserve is ostensibly trying to head off bubbles
created by its own hand, governments in the West continue to struggle
with high and growing debt levels, some of which are only just
serviceable in an artificially low interest rate environment.
Nevertheless, while money printing is very artificial, we are mindful
that it can be risky to stand in the way of it.
Philip Gibbs
Fund Manager, Jupiter Asset Management Limited
Total Assets as at 31 July 2013: GBP232,743,691
Shares in Issue on 31 July 2013:
432,723,586 Zero Dividend Preference shares
216,361,793 Geared Ordinary shares
Net Asset Value
(p) Market Price (p) Premium/ (Discount)
Geared Ordinary
excluding
income/expenses 33.08 27.375 (17%)
Geared Growth
including
income/expenses 33.10
Packaged Units
excluding
income/expenses 107.58 102.75 (4%)
Packaged Units
including
income/expenses 107.60
Zero Dividend
Preference shares 37.25 38.125 2%
Underlying Currencies as a Percentage of Gross Currency Exposure*
UK Sterling (base currency) 106%
US Dollar 18%
Canadian Dollar 1%
Euro -23%
Japanese Yen -15%
Australian Dollar 1%
Norwegian Krona 12%
100%
*The fund is sterling based. This table aggregates physical and
synthetic exposures in the portfolio.
Country Allocation as a Percentage of Total Assets*
Long Short Long Short
Bonds Bonds Equities Equities
United Kingdom 21% 0% 0% 0%
United States 1% -1% 7% 0%
Norway 1% 0% 0% 0%
Australia 12% 0% 0% 0%
Japan 0% -19% 0% 0%
Total 35% -20% 7% 0%
Top Ten Long Positions as a Percentage of Total Assets*
Company Country of Listing % of Total Assets
Barclays Bank 14% Var Sub Perp United Kingdom 13.7
Australia 5.75% 15/5/2021 Australia 6.4
S&P 500 Futures Sep 13 United States 5.9
Australia 5. 5% 21/04/2023 Australia 5.6
LBG Capital 2 Plc 6.385% 12/05/2020 United Kingdom 3.7
LBG Capital 2 Plc 15% 21/12/2038 United Kingdom 3.0
Altria 9.95% 10/11/2038 United States 1.3
Select Sector SPDR Trust United States 1.2
Norway 4.25% 19/05/2017 Norway 0.5
Norway 4.5% 22/05/2019 Norway 0.5
41.8
*Some of this exposure is through derivatives. Exposure to other UK
listed investment companies is nil.
Comparative Performance to 31 July 2013
One Three One Last Since
Reconstruction
Month Month Year Annual Report (3 Nov 2009)
% % % % %
Total Assets* 0.4 (0.8) (2.1) (0.5) 9.2
Benchmark** 0.0 0.1 0.6 0.4 2.7
Geared Growth Share NAV 0.1 (6.1) (17.7) (11.1) (17.3)
Geared Growth Share Price (1.3) (5.6) (19.5) (13.8) (31.6)
Sources
* Jupiter Asset Management Limited ("Jupiter")
** The Company's benchmark index is 3 month sterling LIBOR calculated as
at the first business day of each calendar month.
Availability of Monthly Fact Sheets
Monthly fact sheets for the Company are available for download from
www.jupiteronline.com and by post or fax on request from the company
secretarial department.
The Company's Geared Growth shares are listed on the London Stock
Exchange and the prices are published in the Financial Times under
`Investment Companies'.
The Net Asset Values of the Company's Geared Growth shares are
calculated weekly and can be viewed on the London Stock Exchange website
at www.londonstockexchange.com (under the heading 'Market News').
INVESTMENT OBJECTIVE
The objective of the Company is to achieve absolute returns. The Company
aims to provide Geared Ordinary shareholders with capital growth, with
income as a secondary objective, and to provide New Zero Dividend
Preference shareholders with a predetermined final capital entitlement
on the Winding-Up Date.
INVESTMENT POLICY
The investment policy of the Company is to invest in listed equities and
equity related securities (such as contracts for difference, convertible
securities, preference shares, convertible unsecured loan stock,
warrants and other similar securities).
The Investment Manager ('Jupiter Asset Management Limited') is not
limited in the asset allocation of the Company's investment portfolio
between sectors, geographic regions or the types of equities and equity
related securities in which the Company may invest, but instead the
Investment Manager considers each potential investment on its own
merits. The Investment Manager focuses 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 Manager in his absolute discretion.
In addition to equities, and equity related securities (including
derivatives), the types of investment and assets in which the property
of the Company may be invested include cash, near cash, fixed interest
securities, currency exchange transactions, index linked securities,
money market instruments (MMIs) and deposits.
These instruments may be used for the purposes of both efficient
portfolio management and, where it is considered to be appropriate for
investment purposes by the Investment Manager and the Board, to adopt an
investment strategy aimed at achieving positive returns across market
cycles with low levels of volatility. This strategy will seek to take
advantage of specific macroeconomic circumstances and market pricing
anomalies.
At times the portfolio may be concentrated in any one or a combination
of such assets and as well as holding physical long positions the
Investment Manager may create synthetic long and short positions through
the use of equity related securities.
The Investment Manager will seek to limit volatility through diversified
portfolio holdings and sector exposures, active management of the
Company's net and gross portfolio exposure to the market, and through
the use of derivatives.
The Company's investment portfolio is focused on companies where, in the
opinion of the Investment Manager, valuations are low and growth in
earnings or assets is not fully appreciated. The Investment Manager
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 Company manages an adequate spread of investment risk, with no one
investment making up more than 15% of the Total Assets of the Company at
the time of investment.
The Board has not set an objective of a specific Portfolio Yield for the
Company and 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 are expected to be
paid out in the form of annual dividends.
It is the Company's stated policy that not more than 10%, in aggregate,
of Total Assets may be invested in other UK listed investment companies
unless such companies have stated investment policies to invest no more
than 15% of their Total Assets in other UK listed investment companies
(including listed investment trusts).
The Company may make use of short-term borrowings such as an overdraft
facility for liquidity and investment purposes in order to gear the
returns on the Company's investment portfolio but in any event
borrowings will not exceed, at any one time, 25% of Total Assets without
shareholder approval by ordinary resolution.
The Company may also hedge currency exposures and unlisted securities
(up to a maximum of 5% of Total Assets).
Any material change in the investment policy of the Company described
above may only be made with the approval of Shareholders by an ordinary
resolution and the separate class approval of Geared Ordinary
Shareholders.
On 2 August 2013 an announcement was made regarding a change of
individual Fund Manager within Jupiter Asset Management Limited for the
Company.
For further information, please contact:
Richard Pavry
Investment Trusts
Jupiter Asset Management Limited
rpavry@jupiter-group.co.uk
020 7314 4822
Celia L. Whitten
Company Secretarial Department
Jupiter Asset Management Limited
cwhitten@jupiter-group.co.uk
020 7314 5565
The Company's Registered office is at 1 Grosvenor Place, London SW1X
7JJ.
This interim management statement has been prepared solely to provide
information to meet the requirements of the UK Listing Authority's
Disclosure and Transparency Rules.
Jupiter Asset Management Limited
This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Jupiter Second Split Trust PLC via Thomson Reuters ONE
HUG#1729621
http://www.jupiteronline.co.uk/
Jupiter Second Split Trust (LSE:JSS)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Jupiter Second Split Trust (LSE:JSS)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
