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Jupiter Dividend & Growth Trust PLC
Interim Management Statement for the three months ended 31 March 2012
The Board of Jupiter Dividend & Growth Trust PLC (the "Company") is pleased to announce its interim management review for the quarter ended 31 March 2012.
The following report relates to the performance of the Company's investment portfolio in the three months leading up to 31 March 2012.
Investment Manager's Report for the Quarter ended 31 March 2012
Investor sentiment was deeply pessimistic at the start of 2012. There were well-founded fears that banks in the Eurozone faced an imminent liquidity crisis.
Markets rallied strongly in January and February, however, after the European Central Bank, under its new Italian president, threw a lifeline to Eurozone banks. In particular, Spanish and Italian banks used the provision of unlimited cheap three-year loans to refinance their country's debts while strengthening their own balance sheets. Investor sentiment was also buoyed by signs of revival in the US economy. UK equities consolidated in March. European sovereign debt concerns resurfaced, as Spanish government bond yields rose sharply, while commodity prices fell on weak data from China.
In the portfolio we opened two positions. Marston's, the pub company and brewer is a reliable company whose shares offered an attractive dividend yield. N. Brown is a catalogue and internet retailer whose shares are cheap. The company should benefit from the migration of shoppers to online, while the recent squeeze in consumer's disposable income could relax later this year. We added to our holding in Centrica ahead of its full year results. The shares offered good value and an attractive dividend yield.
We top-sliced our holding in Ricardo, the technical consulting group, and cut our position in Carnival immediately after the loss of the Costa Concordia.
The cash and other liquid assets position was reduced from 4.8 per cent. at 31 December 2011 to 3.9 per cent. at 31 March 2012.
Fund Manager, Jupiter Asset Management Limited
Total Assets as at 31 March 2012: £36,861,886
Shares in Issue on 31 March 2012:
32,319,031 Zero Dividend Preference shares
8,054,045 Common shares
91,675,333 Ordinary Income shares
|Net Asset Value (p)||Market Price (p)||Premium/(Discount)|
|Zero Dividend Preference shares||91.30||72.25||(21%)|
|Ordinary Income shares||0.00||4.25||-|
Portfolio Distribution on 31 March 2012 Percentage of Total Assets
|Cash and fixed interest||4|
The Company's exposure to other UK listed investment companies was 0.0% as at 31 March 2012.
Top Ten Holdings on 31 March 2012
|Company||Country of Listing||% of Total Assets|
|Royal Dutch Shell 'B'||United Kingdom||7.2|
|HSBC Holdings||United Kingdom||4.9|
|Babcock International Group||United Kingdom||3.3|
|William Hill||United Kingdom||3.1|
|Majestic Wine||United Kingdom||2.9|
Comparative Performance to 31 March 2012
|1 Month||3 Months||1 Year||Since Last Annual Report||Since Reconstruction|
|FTSE All-Share Index||(1.4)||5.1||(2.1)||(2.0)||9.5|
|FTSE 350 Higher Yield||(0.7)||0.9||0.5||1.6||(11.2)|
|Ordinary Income share NAV||0.0||0.0||(100.0)||(100.0)||(100.0)|
|Ordinary Income share price||0.0||0.0||(45.2)||(43.3)||(87.3)|
|Common share NAV||1.0||5.3||(5.3)||(2.7)||-|
|Common share price||1.3||9.4||(5.7)||(13.1)||-|
Jupiter Asset Management Limited ("Jupiter")
The Company's benchmark index is FTSE All-Share Index
There were no material events during the period.
Payment of dividends
A fourth interim dividend of 0.24p per Ordinary Income share for the year ended 31 December 2011 was paid to Ordinary Income shareholders on 24 February 2012.
A fourth interim dividend of 0.65p per Common share for the year ended 31 December 2011 was paid to Common shareholders on 24 February 2012.
Availability of Monthly Fact Sheets
Monthly fact sheets for the Company are available for download from www.jupiteronline.co.uk and by post or fax on request from the company secretarial department.
The Company's Ordinary Income shares, Zero Dividend Preference shares and Common shares are listed on the London Stock Exchange and the prices are published in the Financial Times under `Investment Companies'.
The Net Asset Values of the Company's Ordinary Income shares, Zero Dividend Preference shares and Common shares are calculated weekly and can be viewed on the London Stock Exchange website at www.londonstockexchange.com (under the heading 'Market News').
The objective of the Company is to provide Ordinary Income and Common shareholders with a high and rising income together with the possibility of capital appreciation and to provide Zero Dividend Preference and Common shareholders with a predetermined level of capital growth.
The investment policy of the Company is to invest mainly in a portfolio of UK listed equities, UK equity-related securities (such as convertible securities, preference shares, convertible unsecured loan stock, warrants and other similar securities) and UK fixed interest securities.
The equities selected as suitable for the portfolio will generally be those judged to be lowly valued by the Investment Manager, typically offering an attractive dividend yield with sufficiently strong cash generation from their operational activities to grow the dividend to shareholders over a number of years. Such equities are likely to be considered by the Investment Manager to be undervalued by the stock market at the time of purchase and will offer scope for capital gains.
The portfolio manager selects each stock on its individual merits as an investment rather than replicating the relevant company's weighting within its benchmark, the FTSE All Share index. The portfolio is therefore unlikely to represent the constituents of its benchmark, but instead is intended to offer a well diversified investment strategy focussed on maximising returns from the prevailing economic background.
The portfolio manager has complete flexibility to invest any proportion of the Company's investment portfolio in debt securities from time to time. Investment in debt securities will be in convertible bonds, corporate bonds and other debt securities (such as gilts) considered by the Investment Manager to be quasi-cash instruments. Investment in bonds issued by corporate issuers will generally be in those of issuers which are either rated as "investment grade" issuers or are considered by the Investment Manager to have an equivalent grade. The Investment Manager may also invest in sub-investment grade corporate bonds where it considers that their ratings are likely to improve. The percentage of the portfolio invested in debt securities at any given time will primarily be driven by tactical considerations but will also depend upon the outlook for interest rates and the scope for improved debt ratings.
The Company may invest in unlisted securities (up to a maximum of 5 per cent. of Total Assets) and derivatives but it is not the Investment Manager's present intention to do so (save, in respect of derivatives for the purposes of efficient portfolio management).
It is the Company's policy to invest no more than 15 per cent. of its gross assets in other listed investment companies (including listed investment trusts) as defined in the Listing Rules.
Any material change in the investment policy of the Company described above may only be made with the approval of Shareholders by an ordinary resolution and separate class approval of Ordinary Income shareholders.
The Company is geared by its Zero Dividend Preference and Common shares. The Company also has an overdraft facility with The Royal Bank of Scotland plc.
On behalf of the Board
Jupiter Asset Management Limited
17 May 2012
For further information, please contact:
Director of Investment Trusts
Jupiter Asset Management Limited
020 7314 4822
Company Secretarial Department
Jupiter Asset Management Limited
020 7314 4915
The Company's registered office is at 1 Grosvenor Place, London SW1X 7JJ.
This interim management statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules.
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