The Jupiter Global Fund - Jupiter Asset Management

The Jupiter Global Fund 

Société d’Investissement à Capital Variable (SICAV) 

Annual Review and 

Audited Financial Statements 

For the year ended 30 September 2012 

R.C.S. B 110.737

the jupiter global fund 

Contents 

Contents 

Investment Objectives 4 

Management, Administration and Independent Auditor 6 

Directors 8 

Chairman’s Review 9 

Report of the Custodian 10 

Independent Auditor’s Report 11 

Statement of Net Assets 13 

Statement of Operations 19 

Statement of Changes In Net Assets 22 

Statement of Changes In Shares Issued 25 

Statistical Information 29 

Review of the Portfolio and Schedule of Investments 

■ 

Jupiter Asia Pacific 38 

■ 

Jupiter Climate Change Solutions 42 

■ 

Jupiter European Opportunities 46 

■ 

Jupiter European Growth 50 

■ 

Jupiter Global Financials 54 

■ 

Jupiter New Europe 58 

■ 

Jupiter India Select 61 

■ 

Jupiter Japan Select 65 

■ 

Jupiter Global Equities 68 

■ 

Jupiter North American Equities 71 

■ 

Jupiter China Sustainable Growth 75 

■ 

Jupiter Europa 78 

■ 

Jupiter Strategic Total Return 81 

■ 

Jupiter Global Convertibles 86 

■ 

Jupiter Dynamic Bond 93 

Notes to the Financial Statements 99 

Additional Information 114 

Notice of Meeting 115 

Proxy Form 

3


Investment Objectives 

The Jupiter Global Fund – 

Jupiter Asia Pacific 

(‘Jupiter Asia Pacific’) 


Jupiter Climate Change Solutions 

(‘Jupiter Climate Change Solutions’) 


Jupiter European Opportunities 

(‘Jupiter European Opportunities’) 


Jupiter European Growth 

(‘Jupiter European Growth’) 


Jupiter Global Financials 

(‘Jupiter Global Financials’) 


Jupiter New Europe 

(‘Jupiter New Europe’) 


Jupiter India Select 

(‘Jupiter India Select’) 


Jupiter Japan Select 

(‘Jupiter Japan Select’) 


Jupiter Global Equities 

(‘Jupiter Global Equities’) 


Jupiter North American Equities 

(‘Jupiter North American Equities’) 


Jupiter China Sustainable Growth 

(‘Jupiter China Sustainable Growth’) 

The investment objective of Jupiter Asia Pacific is to achieve long-term capital growth by 

investing primarily in quoted companies in any economic sector involved directly or 

indirectly in the Asian and Pacific Basin markets, excluding Japan. 

The investment objective of Jupiter Climate Change Solutions is to generate long-term 

capital growth from investment worldwide in companies that are responding positively to 

the challenge of environmental sustainability and climate change. 

The investment objective of Jupiter European Opportunities is to achieve long-term capital 

growth from investments in companies quoted on a European Stock Exchange. 

The investment objective of Jupiter European Growth is to achieve long-term capital growth 

by exploiting special investment opportunities in Europe. 

The investment objective of Jupiter Global Financials is to achieve long-term capital 

growth principally through investment in equities of financial sector companies on an 

international basis. 

The investment objective of Jupiter New Europe is to achieve long-term capital growth 

through investment primarily in Central and Eastern Europe, Russia, Turkey, Western 

European companies which, in the Investment Manager’s opinion, significantly benefit from 

exposure to those countries listed above and in addition investment in non European former 

member states of the USSR. 

The investment objective of Jupiter India Select is to achieve long-term capital growth 

principally through investment primarily in India and selected opportunities in Pakistan, 

Bangladesh, Sri Lanka, Bhutan, Nepal and the Maldives. 

The investment objective of Jupiter Japan Select is to achieve long-term capital growth 

through investing primarily in Japan and in selected opportunities in Asia. 

The investment objective of Jupiter Global Equities is to achieve long-term total return 

principally through investment in equities on an international basis. 

The investment objective of Jupiter North American Equities is to achieve long-term capital 

growth through investing primarily in North American securities. 

The investment objective of Jupiter China Sustainable Growth is to achieve long-term 

capital growth by investing in companies that are considered by the Investment Manager to 

be well positioned to benefit from secular trends associated with the environmentally, 

socially and economically sustainable development of Greater China. 


Jupiter Europa 

(‘Jupiter Europa’) 


Jupiter Strategic Total Return 

(‘Jupiter Strategic Total Return’) 

The investment objective of Jupiter Europa is to generate positive long-term returns across 

varying market conditions principally from a portfolio of investments in European equities 

and equity related securities. 

The investment objective of the Fund is to generate positive long-term returns across 

varying market conditions from an actively managed portfolio of different asset classes, 

including equities, bonds, convertible bonds, currencies and money market securities on an 

international basis. 

4


Investment Objectives 


Jupiter Global Convertibles 

(‘Jupiter Global Convertibles’) 


Jupiter Dynamic Bond 

(‘Jupiter Dynamic Bond’) 

The investment objective of the Fund is to achieve long-term capital growth through 

investment on a global basis in a diversified portfolio of convertible securities. 

The investment objective of Jupiter Dynamic Bond is to achieve a high income with the 

prospect of capital growth from a portfolio of investments in global fixed interest securities. 

5


Management, Administration and Independent Auditor 

■■Management, Administration and Independent Auditor 

Directors 

Registered Office 

Administrator, Custodian, 

Paying Agent & Registrar 

Management Company 

Independent Auditors 

Legal Advisers 

Adrian Creedy (Chairman) 

Garth Lorimer Turner* 

Jacques Elvinger* 

Patrick Zurstrassen* 

16, Boulevard d’Avranches, 

BP 413 

L-1160 Luxembourg 

HSBC Securities Services (Luxembourg) S.A. 

16, Boulevard d’Avranches 

BP 413 


RBS (Luxembourg) S.A. 

33, rue de Gasperich – Building B 

L-5826 Hesperange, Luxembourg 

Ernst & Young S.A. 

7, Rue Gabriel Lippman 

Parc d’Activité Syrdall 2 

L-5365 Munsbach, Luxembourg 

Elvinger Hoss & Prussen 

2, Place Winston Churchill 


Investment Adviser Until 30 April 2012: 

Jupiter Asset Management Limited 

1 Grosvenor Place 

London SW1X 7JJ 

United Kingdom 

Authorised and regulated by the Financial Services Authority 

Investment Manager Until 30 April 2012: 

Jupiter Asset Management (Bermuda) Limited 

Cumberland House 

3rd Floor, 1 Victoria Street 

Hamilton HM11, Bermuda 

Licensed to conduct investment business in or from Bermuda 

by the Bermuda Monetary Authority 

From 1 May 2012: 


1 Grosvenor Place 

London SW1X 7JJ 

United Kingdom 

Authorised and regulated by the Financial Services Authority 

Distributors Jupiter Asset Management (Bermuda) Limited (until 30 April 2012) 


Jupiter Asset Managers (Jersey) Limited 

Ground Floor 

4 Wharf Street 

St. Helier, Jersey JE2 3NR 

Channel Islands 

Jupiter Asset Management (Asia) Private Limited 

Level 31 

Six Battery Road, Raffles Place 

Singapore 049909 

*Independent 

6


Management, Administration and Independent Auditor 

■■Management, Administration and Independent Auditor (continued) 

UK Representative 

Swiss Representative 

Hong Kong Representative 


BNP Paribas Securities Services S..A. 

Succursale de Zurich 

Selnaustrasse 16 

CH-8002 Zurich 

Switzerland 

HSBC Institutional Trust Services (Asia) Limited 

1 Queens Road Central 

Hong Kong 

7


Directors 

■■Directors 

Adrian Creedy (Chairman) 

Garth Lorimer Turner** 

Jacques Elvinger* 

Patrick Zurstrassen* 

Adrian Creedy (British) is the Chief Operating Officer and Company Secretary of Jupiter 

Fund Management plc. He is a Solicitor of the Supreme Court of England and Wales. He is 

also a Director of Jupiter Asset Management Limited. Adrian Creedy superseded Garth 

Lorimer Turner as Chairman on 14 September 2012. 

Garth Lorimer Turner (British) is a Solicitor of the Supreme Court of England & Wales, a 

Solicitor of the Supreme Court of Hong Kong and a Bermuda Barrister & Attorney. He is a 

Director of several companies, including investment funds. Following the closure of Jupiter 

Asset Management (Bermuda) Limited’s Bermuda Office, Garth Lorimer Turner resigned as 

an employee of the Jupiter Group on 30 June 2012 and became an independent director. 

Jacques Elvinger is a partner of the Luxembourg law firm of Elvinger Hoss & Prussen. 

Patrick Zurstrassen is an independent director chairing the European Confederation of 

Directors’ Associations. 

*Independent 

**Independent since 30 June 2012 

8


Chairman’s Review 

■■Chairman’s Review 

Dear Shareholder 

The eurozone crisis and prospects for global growth have preoccupied 

investors’ minds in the last 12 months. 

To combat the former we have seen European leaders attending 

numerous summits, but making only slow progress, much of which 

has been driven by the European Central Bank (ECB). Amid market 

panic as 2011 closed, ECB president Mario Draghi introduced a 

lending programme for European banks – the Long Term Refinancing 

Operation (‘LTRO’) – which effectively allowed the European banks to 

borrow at favourable rates for three years. Shares across the world 

responded by rallying strongly. Better economic news from the US 

also lifted investor sentiment. 

Soon afterwards, however, tensions in the Middle East pushed up the 

oil price (any rise acts as a drag on consumption) and evidence 

emerged that growth in developing economies such as China and 

India had started to slow. In response, the authorities in these areas 

swiftly cut interest rates. Japan took the unusual step of setting an 

inflation target for the first time, offering investors hope that it would 

one day emerge from its decade-long deflation trap. 

Intense political uncertainty and heightened speculation that Greece 

would leave the euro in the second quarter prompted Draghi to say in 

July that the ECB would do whatever it took to keep the single currency 

together. Spain was given an initial €100bn bailout package in return 

for implementing austerity measures on a population, half of whose 

youth are unemployed. Meanwhile, the anticipated recovery in 

emerging giants such as China and India in the second half of 2012 

failed to materialise. Indeed these economies continued to show signs 

of slowing and implemented further stimulus measures. Against the 

backdrop of a change in leadership later in the year, the Chinese 

government introduced a US$94bn package to invest in infrastructure 

development. This came in addition to other packages from provincial 

authorities. However, concerns remained that the world’s second 

largest economy would experience a harder than expected landing 

and this would have a knock-on effect on its Asian neighbours and 

later other economies. 

The Bank of England, meanwhile, expanded its ‘Quantitative Easing’ 

(QE) programme to assist the flagging UK economy, effectively 

printing money to buy government bonds from banks; its total 

purchases of government bonds reached roughly a third of the entire 

market. In September 2012, the US too launched yet more QE until 

further notice. All this QE helped push up the gold price as more 

central banks sought to diversify their reserves away from paper 

currencies such as the US dollar, in danger of being devalued by 

continuous money printing. 

As the period came to a close, Draghi unveiled another building block 

for dealing with the eurozone crisis – a bond buying programme for the 

debt of troubled nations. Spanish and Italian bond yields fell from crisis 

levels in response but concerns remained that Spain would need to 

seek a second bailout. Looking ahead, we expect eurozone concerns 

to continue. Despite recent action from the ECB, the problems in the 

peripheral European countries have not gone away. Growth is simply 

far too low in countries such as Spain, Greece, Portugal and Italy to 

stabilise national debt levels, let alone create employment and attract 

investment. However, the US economy appears to be stabilising and 

lower inflation rates in emerging giants such as China should offer 

greater scope to cut interest rates and stimulate economies. 

The Jupiter Global Fund range offers investors a broad range of 

strategies and geographies, all of which seek to employ Jupiter’s 

emphasis on achieving robust outperformance. During the year, we 

launched another Fund, Jupiter Dynamic Bond, to take advantage of 

opportunities in the corporate bond market. The Fund is run by fixed 

income specialist Ariel Bezalel with the help of the investment 

managers of Jupiter’s fixed income and multi asset team. 

In this uncertain world, we believe that investors are likely to favour 

quality companies that can grow their earnings, maintain dividends 

and strengthen their balance sheets. Being able to manage portfolios 

actively and capitalise on opportunities when they arise is likely to be 

crucial for patient investors who, like us, believe that the world is going 

through a prolonged period of structural change. 

Adrian Creedy 

Chairman 

30 October 2012 

9


Report of the Custodian 

■■Report of the Custodian 

In our capacity as Custodian we confirm that, in our opinion, the 

Management Company and the Board of Directors have managed the 

Company during the year in accordance with the provisions of the 

principal documents of the Company and the Protection of Investors 

as stated in the Luxembourg Law and rules made there under. 

HSBC Securities Services (Luxembourg) S.A. 


BP 413 


3 December 2012 

10


Statement of Net Assets 

■■Statement of Net Assets as at 30 September 2012 

Notes 

Combined 

€ 

Jupiter 

Asia Pacific 

US$ 


Climate 

Change 

Solutions 

€ 


European 

Opportunities 

€ 


European 

Growth 

€ 

Assets 

Investments in securities at cost 1,704,776,484 29,506,062 6,847,413 87,545,357 306,232,442 

Unrealised appreciation/(depreciation) 127,595,648 2,693,568 (394,419) 26,158,428 55,437,243 

Investments in securities at fair value 2.d 1,832,372,132 32,199,630 6,452,994 113,703,785 361,669,685 

Unrealised appreciation on contracts 

for difference 

2.e, 3 82,650 – – – – 

Unrealised appreciation on forward foreign 

exchange contracts 

2.g, 5 223,877 – – – – 

Options purchased 2.f, 4 304,250 – – – – 

Other Assets 

Cash and short-term deposits 16 142,490,480 641,445 10,902 2,875,987 5,433,398 

Subscriptions receivable 47,035,562 2,958 5,013 11,908,137 1,783,213 

Due from brokers 54,151,231 334,526 – 101,498 – 

Dividends receivable 1,607,032 92,788 15,568 129,707 237,994 

Interest receivable 4,790,474 166 – 3,814 – 

Expense reimbursements receivable 12 121,864 17,544 2,279 – – 

Other accounts receivable and 

accrued income 

4,422,868 19,748 25,137 233,976 164,722 

Other Assets 254,619,511 1,109,175 58,899 15,253,119 7,619,327 

Total Assets 2,087,602,420 33,308,805 6,511,893 128,956,904 369,289,012 

Liabilities 

Unrealised depreciation on forward foreign 


2.g, 5 2,071,621 – – – – 

Unrealised depreciation on futures contracts 2.h, 6 503,982 – – – – 

Unrealised depreciation on contracts 


2.e, 3 464,699 – – – – 

Options sold 2.f, 4 5,475 – – – – 

Bank overdraft 19 776,793 2,020 – – – 

Due to brokers 109,941,752 175,914 – 5,198,740 – 

Due to shareholders 4,545,166 – 10,963 1,581,835 2,473,815 

Management and performance fees payable 7, 8 2,411,641 35,952 10,302 123,470 365,646 

Dividend distribution payable 18 9,167,545 – – 382,173 131,092 

Accounts payable and accrued expenses 1,563,430 35,896 16,738 113,024 230,825 

Total Liabilities 131,452,104 249,782 38,003 7,399,242 3,201,378 

Net Assets 1,956,150,316 33,059,023 6,473,890 121,557,662 366,087,634 

The accompanying notes form an integral part of these financial statements. 

13



■■Statement of Net Assets as at 30 September 2012 (continued) 


Asia Pacific 


Climate 

Change 

Solutions 


European 

Opportunities 


European 

Growth 

Number of Shares outstanding: 

Class L US Dollar Shares 771,032 145,492 – – 

Class L Euro Shares – 285,471 3,501,184 15,429,499 

Class L Sterling Shares 833,249 313,813 3,865,908 773,667 

Class L Swiss Franc Shares – – – – 

Class I US Dollar Shares – – – – 

Class I Euro Shares – – 1,157,947 3,871,883 

Class I Sterling Shares – – – – 

Class I Swiss Franc Shares – – – – 

Class L Euro A Shares – – – – 

Class L Euro B Shares – – – – 

Class L Sterling B Shares – – – – 

Class L US Dollar B Shares – – – – 

Net Asset Value per Share: 

Class L US Dollar Shares USD 22.18 USD 7.51 – – 

Class L Euro Shares – EUR 8.95 EUR 14.87 EUR 17.36 

Class L Sterling Shares GBP 11.83 GBP 7.81 GBP 10.27 GBP 14.77 



Class I Euro Shares – – EUR 17.05 EUR 21.68 



Class L Euro A Shares – 

– 

– – 





14




Notes 


Global 

Financials 

€ 


New Europe 

€ 


India Select 

US$ 


Japan Select 

US$ 



Equities 

US$ 


Investments in securities at cost 23,719,892 50,690,612 153,413,739 69,988,522 6,449,781 

Unrealised appreciation/(depreciation) 2,320,123 2,633,479 10,565,453 (1,903,962) 1,419,826 

Investments in securities at fair value 2.d 26,040,015 53,324,091 163,979,192 68,084,560 7,869,607 



2.e, 3 82,650 – – – – 

Unrealised appreciation on forward foreign 


2.g, 5 – – – – – 

Options purchased 2.f, 4 – – – – – 


Cash and short-term deposits 16 1,341,584 1,274,405 1,722,641 858,762 297,808 

Subscriptions receivable 168,648 34,598 21,220 – 4,699 

Due from brokers 962,166 631,611 2,431,817 215,897 21,754 

Dividends receivable 65,434 33,034 467,452 749,050 10,506 

Interest receivable 12,078 – – – – 

Expense reimbursements receivable 12 20,465 59,192 – – – 



221,855 49,266 473,750 9,622 24,732 

Other Assets 2,792,230 2,082,106 5,116,880 1,833,331 359,499 

Total Assets 28,914,895 55,406,197 169,096,072 69,917,891 8,229,106 

Liabilities 

Unrealised depreciation on forward foreign 


2.g, 5 29,446 – – – – 

Unrealised depreciation on futures contracts 2.h, 6 – – – – – 

Unrealised depreciation on contracts 


2.e, 3 – – – – – 

Options sold 2.f, 4 – – – – – 

Bank overdraft 19 34,233 1,267 328,850 2,098 – 

Due to brokers 1,331,693 569,720 3,035,334 3,152 43,053 

Due to shareholders 34,113 67,384 41,881 – 41,531 

Management and performance fees payable 7, 8 32,644 66,003 642,875 80,077 13,047 

Dividend distribution payable 18 – – – 406,622 40,905 

Accounts payable and accrued expenses 104,246 143,856 203,878 100,541 7,291 

Total Liabilities 1,566,375 848,230 4,252,818 592,490 145,827 

Net Assets 27,348,520 54,557,967 164,843,254 69,325,401 8,083,279 


15






Financials 


New Europe 


India Select 


Japan Select 



Equities 


Class L US Dollar Shares 2,263,853 326,883 1,313,491 499,274 3,351 

Class L Euro Shares 1,038,410 6,157,544 179,081 314,026 171,762 

Class L Sterling Shares 580,295 756,858 95,247 3,305,405 271,481 

Class L Swiss Franc Shares – – – – – 

Class I US Dollar Shares – – – – – 

Class I Euro Shares – – – – – 

Class I Sterling Shares – – – – – 

Class I Swiss Franc Shares – – – – – 

Class L Euro A Shares – – – – – 

Class L Euro B Shares – – – – – 

Class L Sterling B Shares – – – – – 

Class L US Dollar B Shares – – – – – 


Class L US Dollar Shares USD 6.95 USD 6.75 USD 122.66 USD 11.06 USD 12.29 

Class L Euro Shares EUR 8.26 EUR 7.30 EUR 9.87 EUR 11.86 EUR 13.97 

Class L Sterling Shares GBP 9.07 GBP 8.36 GBP 9.36 GBP 11.02 GBP 11.24 











16




Notes 


North 

American 

Equities 

US$ 


China 

Sustainable 

Growth 

US$ 


Europa* 

€ 


Strategic 

Total 

Return 

€ 



Convertibles 

€ 


Dynamic 

Bond** 

€ 


Investments in securities at cost 49,860,064 15,494,180 39,946,325 77,959,637 726,338,347 134,221,056 

Unrealised appreciation/(depreciation) 10,447,763 (2,669,840) 6,898,422 2,115,566 12,113,053 4,409,168 

Investments in securities at fair value 2.d 60,307,827 12,824,340 46,844,747 80,075,203 738,451,400 138,630,224 



2.e, 3 – – – – – – 

Unrealised appreciation on forward 

foreign exchange contracts 

2.g, 5 – – – – – 223,877 

Options purchased 2.f, 4 – – 304,250 – – – 


Cash and short-term deposits 16 4,426,575 296,691 8,048,623 14,715,791 74,228,933 28,181,380 

Subscriptions receivable 12,923 7,263 38,650 – 822,573 32,236,763 

Due from brokers 2,581 436,025 – 707,247 19,263,964 29,820,723 

Dividends receivable 76,479 17,108 – 27,392 4,171 – 

Interest receivable – – 58,616 1,221,274 3,425,664 68,900 

Expense reimbursements receivable 12 – 34,053 – – – – 



24,002 18,929 45,395 24,604 58,644 3,157,574 

Other Assets 4,542,560 810,069 8,191,284 16,696,308 97,803,949 93,465,340 

Total Assets 64,850,387 13,634,409 55,340,281 96,771,511 836,255,349 232,319,441 

Liabilities 

Unrealised depreciation on forward 

foreign exchange contracts 

Unrealised depreciation on futures 

contracts 

Unrealised depreciation on 

contracts for difference 

2.g, 5 – – 26,179 128,782 1,887,214 – 

2.h, 6 – – – 108,828 293,253 101,901 

2.e, 3 – – 464,699 – – – 

Options sold 2.f, 4 – – 5,475 – – – 

Bank overdraft 19 1,430 16,681 20,409 449,205 – – 

Due to brokers 2,564 428,543 152,165 92,354 61,404,887 38,337,838 

Due to shareholders 76,564 29,101 4,911 9,118 216,712 – 

Investment management fees payable 7, 8 80,216 16,815 461,827 64,808 538,972 75,516 

Dividend payable 18 – 68,112 – – 5,751,292 2,503,966 

Accounts payable and accrued expenses 77,275 20,691 40,466 109,557 381,595 78,321 

Total Liabilities 238,049 579,943 1,176,131 962,652 70,473,925 41,097,542 

Net Assets 64,612,338 13,054,466 54,164,150 95,808,859 765,781,424 191,221,899 

*As at 18 October 2011, the name of the Fund was changed from Jupiter European Absolute Return to Jupiter Europa. 

**Jupiter Dynamic Bond was launched on 8 May 2012. 


17





North 

American 

Equities 


China 

Sustainable 

Growth 


Europa* 


Strategic 

Total 

Return 



Convertibles 


Dynamic 

Bond** 


Class L US Dollar Shares 427,637 78,703 – 678,472 1,631,704 218,296 

Class L Euro Shares 47,073 11,534 – 589,042 3,111,408 1,887,198 

Class L Sterling Shares 2,991,528 1,054,961 – 87,533 752,659 214,150 

Class L Swiss Franc Shares – – – 782,745 6,581,194 1,000 

Class I US Dollar Shares – – – 1,119,993 16,350,465 213,407 

Class I Euro Shares – – – 5,614,598 16,616,436 6,553,762 

Class I Sterling Shares – – – 783,289 23,642,480 7,440,771 

Class I Swiss Franc Shares – – – 128,288 7,203,377 1,000 

Class L Euro A Shares – – 135,051 – – – 

Class L Euro B Shares – – 2,905,308 – – – 

Class L Sterling B Shares – – 637,343 – – – 

Class L US Dollar B Shares – – 1,613,961 – – – 


Class L US Dollar Shares USD 12.66 USD 7.25 – USD 10.01 USD 10.17 USD 10.40 

Class L Euro Shares EUR 11.87 EUR 7.48 – EUR 10.10 EUR 10.27 EUR 10.40 

Class L Sterling Shares GBP 12.07 GBP 7.24 – GBP 10.06 GBP 9.83 GBP 10.41 

Class L Swiss Franc Shares – – – CHF 9.89 CHF 10.05 CHF 10.38 

Class I US Dollar Shares – – – USD 10.09 USD 10.35 USD 10.41 

Class I Euro Shares – – – EUR 10.21 EUR 10.44 EUR 10.41 

Class I Sterling Shares – – – GBP 10.16 GBP 9.85 GBP 10.42 

Class I Swiss Franc Shares – – – CHF 10.00 CHF 10.23 CHF 10.39 

Class L Euro A Shares – – EUR 10.53 – – – 

Class L Euro B Shares – – EUR 10.58 – – – 

Class L Sterling B Shares – – GBP 10.74 – – – 

Class L US Dollar B Shares – – USD 10.76 – – – 




18


Statement of Operations 

■■Statement of Operations for the year ended 30 September 2012 

Notes 

Combined 

€ 


Asia Pacific 

US$ 


Climate 

Change 

Solutions 

€ 


European 

Opportunities 

€ 


European 

Growth 

€ 

Income 

Income from investments 2.i 38,803,047 550,961 149,600 3,135,548 3,659,416 

Deposit interest 2.i 142,495 – – 9,015 – 

Management fees rebates 2.k 4,737 6,121 – – – 

Other income 3,046,849 4,286 30,717 52,414 1,377,726 

Total Income 41,997,128 561,368 180,317 3,196,977 5,037,142 

Expenses 2.j 

Investment management fees 7 15,752,490 429,542 108,266 1,530,450 2,083,598 

Administration and custodian fees 9 1,291,484 31,156 6,492 100,670 142,218 

Management company fees 8 790,132 18,867 7,050 75,080 104,272 

Printing and professional fees 421,690 9,060 2,295 36,901 53,539 

Taxe d'abonnement 11 411,913 13,756 3,338 46,364 57,084 

Performance fees 7 393,440 – – – – 

Registration fees 282,739 6,254 1,584 25,471 36,937 

Directors' fees 10 75,000 1,682 426 6,850 9,933 

Bank charges and interest 59,065 4,155 346 1,397 13,168 

Other expenses 1,530,903 122,537 17,337 72,279 141,569 

Total Expenses 21,008,856 637,009 147,134 1,895,462 2,642,318 

Expense reimbursements 12 (121,864) (17,544) (2,279) – – 

Total Expenses after Reimbursements 20,886,992 619,465 144,855 1,895,462 2,642,318 

Net Operating Income/(Loss) for the Year 21,110,136 (58,097) 35,462 1,301,515 2,394,824 

Net realised gains/(losses) on: 

Investments in securities 2.d (18,103,083) (1,103,880) (45,758) 1,531,813 (2,039,345) 

Contracts for difference 2.e 409,936 – – – – 

Options 2.f (1,850,490) – – – – 

Forward foreign exchange contracts 2.g (8,793,542) – – – – 

Futures contracts 2.h (889,067) – – – – 

Foreign exchange transactions 2.c 4,986,019 (85,924) (13,041) (256,691) (734,189) 

Net realised gains/(losses) (3,130,091) (1,247,901) (23,337) 2,576,637 (378,710) 

Net change in unrealised 

appreciation/(depreciation) on: 

Investments 2.d 176,832,295 5,440,555 1,316,520 29,445,854 57,690,013 

Contracts for difference 2.e (651,471) – – – – 

Options 2.f 491,833 – – – – 

Forward foreign exchange contracts 2.g (904,184) – – – – 

Futures contracts 2.h (48,665) – – – – 

Increase/(Decrease) in Net Assets 

from Operations 

172,589,717 4,192,654 1,293,183 32,022,491 57,311,303 


19



■■Statement of Operations for the year ended 30 September 2012 (continued) 

Notes 



Financials 

€ 


New Europe 

€ 


India Select 

US$ 


Japan Select 

US$ 



Equities 

US$ 

Income 

Income from investments 2.i 1,177,836 1,399,787 2,416,301 1,954,193 210,552 

Deposit interest 2.i – 4,539 5,712 – – 

Management fees rebates 2.k – – – – – 

Other income 280,480 195,910 23,766 18,472 434 

Total Income 1,458,316 1,600,236 2,445,779 1,972,665 210,986 

Expenses 2.j 

Investment management fees 7 411,489 1,014,186 2,624,662 1,101,747 109,470 

Administration and custodian fees 9 29,265 190,945 230,481 67,729 6,525 

Management company fees 8 19,668 45,599 97,263 48,931 8,110 

Printing and professional fees 8,690 21,678 61,744 23,369 2,302 

Taxe d'abonnement 11 12,509 26,038 73,909 41,678 3,663 

Performance fees 7 – – – – – 

Registration fees 5,999 15,000 37,977 16,133 1,589 

Directors' fees 10 1,613 4,034 8,876 4,338 427 

Bank charges and interest 966 811 28,379 4,153 351 

Other expenses 107,371 92,573 145,589 52,016 7,852 

Total Expenses 597,570 1,410,864 3,308,880 1,360,094 140,289 

Expense reimbursements 12 (20,465) (59,192) – – – 

Total Expenses after Reimbursements 577,105 1,351,672 3,308,880 1,360,094 140,289 

Net Operating Income/(Loss) for the Year 881,211 248,564 (863,101) 612,571 70,697 


Investments in securities 2.d 1,839,130 (7,119,839) (3,254,612) (1,336,138) (97,964) 

Contracts for difference 2.e (1,055,684) – (113,052) – – 

Options 2.f – – – – – 


Futures contracts 2.h (688) – – – – 

Foreign exchange transactions 2.c (297,816) (189,469) (149,283) (160,897) (7,616) 

Net realised gains/(losses) on: 1,293,748 (7,060,744) (4,380,048) (884,464) (34,883) 



Investments 2.d 2,885,323 19,153,779 2,370,480 81,711 1,341,015 

Contracts for difference 2.e 316,222 – – – – 

Options 2.f – – – – – 


Futures contracts 2.h – – – – – 



4,465,847 12,093,035 (2,009,568) (802,753) 1,306,132 


20



■■Statement of Operations for the year ended 30 September 2012 (continued) 

Notes 


North 

American 

Equities 

US$ 


China 

Sustainable 

Growth 

US$ 


Europa* 

€ 


Strategic 

Total 

Return 

€ 



Convertibles 

€ 


Dynamic 

Bond** 

€ 

Income 

Income from investments 2.i 1,147,053 354,396 582,039 5,919,397 15,420,048 2,226,142 

Deposit interest 2.i – – 12,976 67,872 32,208 11,465 

Management fees rebates 2.k – – – – – – 

Other income 8,075 9,516 11,700 23,534 726,419 297,998 

Total Income 1,155,128 363,912 606,715 6,010,803 16,178,675 2,535,605 

Expenses 2.j 

Investment management fees 7 975,662 203,748 741,224 1,074,432 4,305,937 269,480 

Administration and custodian fees 9 56,631 16,427 43,996 110,462 312,291 38,684 

Management company fees 8 43,089 10,361 35,161 89,566 211,421 26,947 

Printing and professional fees 20,575 4,325 15,503 41,757 133,322 14,080 

Taxe d'abonnement 11 34,779 6,728 26,117 22,767 74,895 7,756 

Performance fees 7 – – 393,440 – – – 

Registration fees 14,201 2,986 10,685 28,830 88,120 8,871 

Directors' fees 10 3,819 803 2,873 7,753 23,698 2,386 

Bank charges and interest 2,158 5,580 592 1,611 4,969 556 

Other expenses 72,179 55,595 66,635 130,586 481,832 68,029 

Total Expenses 1,223,093 306,553 1,336,226 1,507,764 5,636,485 436,789 

Expense reimbursements 12 – (34,053) – – – – 

Total Expenses after Reimbursements 1,223,093 272,500 1,336,226 1,507,764 5,636,485 436,789 

Net Operating Income/(Loss) for the Year (67,965) 91,412 (729,511) 4,503,039 10,542,190 2,098,816 


Investments in securities 2.d 4,248,957 (3,757,569) (1,949,110) 3,170,726 (9,858,691) 470,276 

Contracts for difference 2.e – – 1,418,541 134,563 – – 

Options 2.f – – (1,399,645) (450,845) – – 

Forward foreign exchange contracts 2.g – – 894,622 (3,990,409) (5,061,954) (563,396) 

Futures contracts 2.h – – 56,350 (2,479,652) 1,647,135 (112,212) 

Foreign exchange transactions 2.c (304,162) (1,166) (144,439) 812,983 5,608,457 748,914 

Net realised gains/(losses) on: 3,876,830 (3,667,323) (1,853,192) 1,700,405 2,877,137 2,642,398 



Investments 2.d 9,190,095 5,530,343 7,775,155 1,766,332 33,853,433 4,409,168 

Contracts for difference 2.e – – (809,249) (158,444) – – 

Options 2.f – – 97,475 394,358 – – 

Forward foreign exchange contracts 2.g – – (7,825) (25,357) (1,065,433) 223,877 

Futures contracts 2.h – – (2,950) 208,279 (152,093) (101,901) 



13,066,925 1,863,020 5,199,414 3,885,573 35,513,044 7,173,542 




21


Statement of Changes in Net Assets 

■■Statement of Changes in Net Assets for the year ended 30 September 2012 



Notes 

Combined 

€ 


Asia Pacific 

US$ 


Climate 

Change 

Solutions 

€ 


European 

Opportunities 

€ 


European 

Growth 

€ 

172,589,717 4,192,654 1,293,183 32,022,491 57,311,303 

Capital transactions 

Received on issue of shares 1,282,983,325 10,428,819 491,887 25,271,185 267,168,827 

Paid on redemptions of shares (631,780,826) (4,573,212) (3,032,857) (45,738,618) (125,920,601) 

Dividend distributions 18 (9,828,377) – – (382,173) (131,092) 

Total Increase/(Decrease) in Net Assets 

for the Year 

813,963,839 10,048,261 (1,247,787) 11,172,885 198,428,437 

Net Assets 

Currency translation adjustment 2.b 11,557,529 – – – – 

Beginning of the year 1,130,628,948 23,010,762 7,721,677 110,384,777 167,659,197 

End of the year 1,956,150,316 33,059,023 6,473,890 121,557,662 366,087,634 


22



■■Statement of Changes in Net Assets for the year ended 30 September 2012 (continued) 



Notes 



Financials 

€ 


New Europe 

€ 


India Select 

US$ 


Japan Select 

US$ 



Equities 

US$ 

4,465,847 12,093,035 (2,009,568) (802,753) 1,306,132 


Received on issue of shares 17,270,891 23,155,260 41,043,494 25,209,504 1,116,629 

Paid on redemptions of shares (30,007,908) (68,157,497) (40,284,298) (34,207,118) (1,121,132) 

Dividend distributions 18 (361,915) – – (792,899) (40,905) 


for the Year 

(8,633,085) (32,909,202) (1,250,372) (10,593,266) 1,260,724 


Currency translation adjustment 2.b – – – – – 

Beginning of the year 35,981,605 87,467,169 166,093,626 79,918,667 6,822,555 

End of the year 27,348,520 54,557,967 164,843,254 69,325,401 8,083,279 


23



■■Statement of Changes in Net Assets for the year ended 30 September 2012 (continued) 




Notes 


North 

American 

Equities 

US$ 


China 

Sustainable 

Growth 

US$ 


Europa* 

€ 


Strategic 

Total 

Return 

€ 



Convertibles 

€ 


Dynamic 

Bond** 

€ 

13,066,925 1,863,020 5,199,414 3,885,573 35,513,044 7,173,542 

Received on issue of shares 39,234,511 2,610,435 59,628,974 18,702,669 590,377,385 188,331,405 

Paid on redemptions of shares (49,046,091) (3,002,188) (23,658,851) (87,011,870) (144,145,553) (1,779,082) 

Dividend distributions 18 – (68,112) – – (5,751,292) (2,503,966) 


for the Year 

3,255,345 1,403,155 41,169,537 (64,423,628) 475,993,584 191,221,899 


Currency translation adjustment 2.b – – – – – – 

Beginning of the year 61,356,993 11,651,311 12,994,613 160,232,487 289,787,840 – 

End of the year 64,612,338 13,054,466 54,164,150 95,808,859 765,781,424 191,221,899 




24


Statement of Changes in Shares Issued 

■■Statement of Changes in Shares Issued for the year ended 30 September 2012 


Asia Pacific 


Climate 

Change 

Solutions 


European 

Opportunities 


European 

Growth 

Class L US Dollar Shares 

Shares outstanding, beginning of the year 389,814 173,065 – – 

Shares issued 496,967 46,145 – – 

Shares redeemed (115,749) (73,718) – – 

Shares outstanding, end of the year 771,032 145,492 – – 

Class L Euro Shares 

Shares outstanding, beginning of the year – 541,909 3,030,129 5,616,255 

Shares issued – 18,461 1,436,019 13,803,001 

Shares redeemed – (274,899) (964,964) (3,989,757) 

Shares outstanding, end of the year – 285,471 3,501,184 15,429,499 

Class L Sterling Shares 

Shares outstanding, beginning of the year 941,272 343,074 4,615,564 801,428 

Shares issued 13,237 8,083 256,415 99,312 

Shares redeemed (121,260) (37,344) (1,006,071) (127,073) 

Shares outstanding, end of the year 833,249 313,813 3,865,908 773,667 

Class I Euro Shares 

Shares outstanding, beginning of the year – – 2,361,650 5,791,476 

Shares issued – – 168,472 1,790,691 

Shares redeemed – – (1,372,175) (3,710,284) 

Shares outstanding, end of the year – – 1,157,947 3,871,883 

25



■■Statement of Changes in Shares Issued for the year ended 30 September 2012 (continued) 



Financials 


New Europe 


India Select 


Japan Select 



Equities 


Shares outstanding, beginning of the year 1,308,494 627,407 1,315,111 408,988 3,833 

Shares issued 1,286,847 31,922 346,941 432,558 1,648 

Shares redeemed (331,488) (332,446) (348,561) (342,272) (2,130) 

Shares outstanding, end of the year 2,263,853 326,883 1,313,491 499,274 3,351 


Shares outstanding, beginning of the year 3,574,429 10,159,616 69,581 149,168 192,140 

Shares issued 1,165,126 3,190,373 113,195 1,289,986 5,301 

Shares redeemed (3,701,145) (7,192,445) (3,695) (1,125,128) (25,679) 

Shares outstanding, end of the year 1,038,410 6,157,544 179,081 314,026 171,762 


Shares outstanding, beginning of the year 632,398 2,482,317 54,375 3,974,075 253,679 

Shares issued 193,815 78,195 50,263 6,160 58,433 

Shares redeemed (245,918) (1,803,654) (9,391) (674,830) (40,631) 

Shares outstanding, end of the year 580,295 756,858 95,247 3,305,405 271,481 

26





North 

American 

Equities 


China 

Sustainable 

Growth 


Europa* 


Strategic 

Total 

Return 



Convertibles 


Dynamic 

Bond** 


Shares outstanding, beginning of the year 247,843 59,281 – 505,232 1,858 – 

Shares issued 282,850 192,764 – 229,761 2,023,909 220,114 

Shares redeemed (103,056) (173,342) – (56,521) (394,063) (1,818) 

Shares outstanding, end of the year 427,637 78,703 – 678,472 1,631,704 218,296 


Shares outstanding, beginning of the year 298,419 789 – 1,749,512 3,516,047 – 

Shares issued 2,618,708 11,397 – 283,466 5,006,235 1,910,293 

Shares redeemed (2,870,054) (652) – (1,443,936) (5,410,874) (23,095) 

Shares outstanding, end of the year 47,073 11,534 – 589,042 3,111,408 1,887,198 


Shares outstanding, beginning of the year 3,413,869 1,116,040 – 94,766 263,326 – 

Shares issued 3,916 79,120 – 39,183 605,391 214,150 

Shares redeemed (426,257) (140,199) – (46,416) (116,058) – 

Shares outstanding, end of the year 2,991,528 1,054,961 – 87,533 752,659 214,150 

Class L Swiss Franc Shares 

Shares outstanding, beginning of the year – – – 1,133,999 1,278,104 – 

Shares issued – – – 91,792 6,035,297 1,000 

Shares redeemed – – – (443,046) (732,207) – 

Shares outstanding, end of the year – – – 782,745 6,581,194 1,000 

Class I US Dollar Shares 


Shares issued – – – 451,156 15,383,049 213,407 


Shares outstanding, end of the year – – – 1,119,993 16,350,465 213,407 

Class I Euro Shares 


Shares issued – – – 708,520 8,919,536 6,703,716 

Shares redeemed – – – (5,284,913) (5,412,697) (149,954) 

Shares outstanding, end of the year – – – 5,614,598 16,616,436 6,553,762 

Class I Sterling Shares 


Shares issued – – – 169,124 17,523,509 7,441,486 

Shares redeemed – – – (865,453) (1,324,038) (715) 

Shares outstanding, end of the year – – – 783,289 23,642,480 7,440,771 



27





North 

American 

Equities 


China 

Sustainable 

Growth 


Europa* 


Strategic 

Total 

Return 



Convertibles 


Dynamic 

Bond** 

Class I Swiss Franc Shares 

Shares outstanding, beginning of the year – – – 232,709 2,885,140 – 

Shares issued – – – 1,510 4,753,838 1,000 


Shares outstanding, end of the year – – – 128,288 7,203,377 1,000 

Class L Euro A Shares 

Shares outstanding, beginning of the year – – 138,261 – – – 

Shares issued – – 53,416 – – – 

Shares redeemed – – (56,626) – – – 

Shares outstanding, end of the year – – 135,051 – – – 

Class L Euro B Shares 


Shares issued – – 4,392,386 – – – 

Shares redeemed – – (2,166,070) – – – 

Shares outstanding, end of the year – – 2,905,308 – – – 

Class L Sterling B Shares 


Shares issued – – 208,618 – – – 


Shares outstanding, end of the year – – 637,343 – – – 

Class L US Dollar B Shares 

Shares outstanding, beginning of the year – – – – – – 

Shares issued – – 1,771,176 – – – 


Shares outstanding, end of the year – – 1,613,961 – – – 



28


Statistical Information 

■■Statistical Information as at 30 September 2012 


Asia Pacific 


Climate Change 

Solutions 


European 

Opportunities 


European 

Growth 


30 September 2012 


























Class L US Dollar Shares 344,045 112,124 – 











29





Asia Pacific 



Solutions 


European 

Opportunities 


European 

Growth 

Total Net Assets: 


Class L US Dollar Shares USD 17,103,804 USD 1,093,232 – – 

Class L Euro Shares – EUR 2,555,838 EUR 52,076,048 EUR 267,825,123 

Class L Sterling Shares GBP 9,854,095 GBP 2,451,846 GBP 39,695,790 GBP 11,429,767 



Class I Euro Shares – – EUR 19,744,376 EUR 83,941,470 








Class L US Dollar Shares USD 7,461,727 USD 1,138,313 – – 












Class L US Dollar Shares USD 7,466,500 USD 808,193 – – 











30





Asia Pacific 



Solutions 


European 

Opportunities 


European 

Growth 







































31



■■Statistical Information as at 30 September 2012 



Financials 


New Europe 


India Select 


Japan Select 



Equities 





Class L Sterling Shares 580,295 756,858 95,247 3,305,405 271,481 













Class L Sterling Shares 632,398 2,482,317 54,375 3,974,075 253,679 










Class L US Dollar Shares 1,195,104 107,399 1,079,375 54,999 100 

Class L Euro Shares 5,032,417 9,586,042 – 138,897 278,181 

Class L Sterling Shares 6,075,366 4,641,412 13,880 3,951,992 227,303 









32






Financials 


New Europe 


India Select 


Japan Select 



Equities 



Class L US Dollar Shares USD 15,736,100 USD 2,205,128 USD 161,115,405 USD 5,523,529 USD 41,200 

Class L Euro Shares EUR 8,579,937 EUR 44,920,252 EUR 1,767,568 EUR 3,725,772 EUR 2,398,900 

Class L Sterling Shares GBP 5,260,629 GBP 6,330,049 GBP 891,641 GBP 36,431,066 GBP 3,052,277 











Class L US Dollar Shares USD 7,740,125 USD 3,738,442 USD 164,349,466 USD 4,599,114 USD 39,341 

Class L Euro Shares EUR 24,078,350 EUR 62,706,656 EUR 669,870 EUR 1,721,529 EUR 2,144,684 











Class L US Dollar Shares USD 8,857,799 USD 802,477 USD 166,327,233 USD 617,857 USD 1,050 

Class L Euro Shares EUR 42,038,820 EUR 73,349,400 – EUR 1,583,421 EUR 3,143,525 










33






Financials 


New Europe 


India Select 


Japan Select 



Equities 





























Class L Euro Shares EUR 8.35 EUR 7.65 – EUR 11.40 EUR 11.30 










34





North 

American 

Equities 


China 

Sustainable 

Growth 


Europa* 


Strategic 

Total 

Return 



Convertibles 


Dynamic 

Bond** 



Class L US Dollar Shares 427,637 78,703 – 678,472 1,631,704 218,296 

Class L Euro Shares 47,073 11,534 – 589,042 3,111,408 1,887,198 

Class L Sterling Shares 2,991,528 1,054,961 – 87,533 752,659 214,150 

Class L Swiss Franc Shares – – – 782,745 6,581,194 1,000 

Class I US Dollar Shares – – – 1,119,993 16,350,465 213,407 

Class I Euro Shares – – – 5,614,598 16,616,436 6,553,762 

Class I Sterling Shares – – – 783,289 23,642,480 7,440,771 

Class I Swiss Franc Shares – – – 128,288 7,203,377 1,000 




Class L US Dollar B Shares – – 1,613,961 – – – 


Class L US Dollar Shares 247,843 59,281 – 505,232 1,858 – 

Class L Euro Shares 298,419 789 – 1,749,512 3,516,047 – 

Class L Sterling Shares 3,413,869 1,116,040 – 94,766 263,326 – 

Class L Swiss Franc Shares – – – 1,133,999 1,278,104 – 

Class I US Dollar Shares – – – 1,038,514 1,952,515 – 

Class I Euro Shares – – – 10,190,991 13,109,597 – 

Class I Sterling Shares – – – 1,479,618 7,443,009 – 

Class I Swiss Franc Shares – – – 232,709 2,885,140 – 


Class L Euro B Shares – – 678,992 – – – 



Class L US Dollar Shares 905,341 111,430 – – – – 

Class L Euro Shares 7,274 5,000 – – – – 

Class L Sterling Shares 3,412,469 1,173,331 – – – – 

Class L Swiss Franc Shares – – – – – – 

Class I US Dollar Shares – – – – – – 

Class I Euro Shares – – – – – – 

Class I Sterling Shares – – – – – – 

Class I Swiss Franc Shares – – – – – – 






35





North 

American 

Equities 


China 

Sustainable 

Growth 


Europa* 


Strategic 

Total 

Return 



Convertibles 


Dynamic 

Bond** 



Class L US Dollar Shares USD 5,414,089 USD 570,641 – USD 6,793,017 USD 16,599,953 USD 2,269,937 

Class L Euro Shares EUR 558,950 EUR 86,310 – EUR 5,950,518 EUR 31,946,099 EUR 19,635,620 

Class L Sterling Shares GBP 36,115,297 GBP 7,641,244 – GBP 880,820 GBP 7,397,104 GBP 2,229,200 

Class L Swiss Franc Shares – – – CHF 7,740,971 CHF 66,162,038 CHF 10,383 

Class I US Dollar Shares – – – USD 11,305,816 USD 169,187,836 USD 2,220,920 

Class I Euro Shares – – – EUR 57,315,736 EUR 173,452,065 EUR 68,195,675 

Class I Sterling Shares – – – GBP 7,959,116 GBP 232,825,258 GBP 77,500,582 

Class I Swiss Franc Shares – – – CHF 1,282,877 CHF 73,683,423 CHF 10,386 

Class L Euro A Shares – – EUR 1,422,642 – – – 

Class L Euro B Shares – – EUR 30,728,466 – – – 

Class L Sterling B Shares – – GBP 6,841,890 – – – 

Class L US Dollar B Shares – – USD 17,368,486 – – – 


Class L US Dollar Shares USD 2,585,859 USD 368,010 – USD 5,003,311 USD 17,679 – 

Class L Euro Shares EUR 2,795,628 EUR 4,824 – EUR 17,462,314 EUR 33,735,423 – 

Class L Sterling Shares GBP 35,265,634 GBP 7,231,028 – GBP 941,064 GBP 2,450,126 – 

Class L Swiss Franc Shares – – – CHF 11,161,706 CHF 12,088,675 – 

Class I US Dollar Shares – – – USD 10,314,097 USD 18,721,294 – 

Class I Euro Shares – – – EUR 102,234,458 EUR 126,811,325 – 

Class I Sterling Shares – – – GBP 14,749,760 GBP 69,232,654 – 

Class I Swiss Franc Shares – – – CHF 2,303,419 CHF 27,532,062 – 





Class L US Dollar Shares USD 9,266,253 USD 1,141,469 – – – – 

Class L Euro Shares EUR 66,289 EUR 49,824 – – – – 

Class L Sterling Shares GBP 33,898,963 GBP 12,301,982 – – – – 











36





North 

American 

Equities 


China 

Sustainable 

Growth 


Europa* 


Strategic 

Total 

Return 



Convertibles 


Dynamic 

Bond** 



Class L US Dollar Shares USD 12.66 USD 7.25 – USD 10.01 USD 10.17 USD 10.40 

Class L Euro Shares EUR 11.87 EUR 7.48 – EUR 10.10 EUR 10.27 EUR 10.40 

Class L Sterling Shares GBP 12.07 GBP 7.24 – GBP 10.06 GBP 9.83 GBP 10.41 

Class L Swiss Franc Shares – – – CHF 9.89 CHF 10.05 CHF 10.38 

Class I US Dollar Shares – – – USD 10.09 USD 10.35 USD 10.41 

Class I Euro Shares – – – EUR 10.21 EUR 10.44 EUR 10.41 

Class I Sterling Shares – – – GBP 10.16 GBP 9.85 GBP 10.42 

Class I Swiss Franc Shares – – – CHF 10.00 CHF 10.23 CHF 10.39 




Class L US Dollar B Shares – – USD 10.76 – – – 


Class L US Dollar Shares USD 10.43 USD 6.21 – USD 9.90 USD 9.52 – 

Class L Euro Shares EUR 9.37 EUR 6.11 – EUR 9.98 EUR 9.59 – 

Class L Sterling Shares GBP 10.33 GBP 6.48 – GBP 9.93 GBP 9.30 – 

Class L Swiss Franc Shares – – – CHF 9.84 CHF 9.46 – 

Class I US Dollar Shares – – – USD 9.93 USD 9.59 – 

Class I Euro Shares – – – EUR 10.03 EUR 9.67 – 

Class I Sterling Shares – – – GBP 9.97 GBP 9.30 – 

Class I Swiss Franc Shares – – – CHF 9.90 CHF 9.54 – 





Class L US Dollar Shares USD 10.24 USD 10.24 – – – – 

Class L Euro Shares EUR 9.11 EUR 9.96 – – – – 

Class L Sterling Shares GBP 9.93 GBP 10.48 – – – – 











37



■■Jupiter Asia Pacific Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 

Class L US Dollar Shares USD 22.18 USD 19.14 15.88% 

Class L Sterling Shares GBP 11.83 GBP 10.59 11.71% 

Market Review 

Developments in western economies had a large impact on investor 

sentiment towards global equity markets throughout the 12 month 

review period. The eurozone sovereign debt crisis, which dominated 

the second half of 2011, dragged on into 2012 as European leaders 

struggled to find a resolution. The uncertainty surrounding the crisis 

and concerns regarding the growth rates of China and the United 

States were the main factors creating substantial market volatility. 

These fluctuations were accentuated for emerging markets, which 

tend to show greater sensitivity to changes in investor confidence. At 

the start of 2012, it appeared that the European Central Bank’s (ECB) 

measures to improve liquidity in the financial system had sparked a 

market rally. Asian markets participated strongly, with those countries 

that had underperformed to the greatest extent in the last six months 

of 2011 – such as India – benefiting the most in the bounce. But after 

two months of positive returns a renewal of concerns over the Chinese 

economy, and whether its slowdown would take the form of a ‘hard 

landing’, led global markets down. China and India, the two largest 

Asian economies, had to contend with stubborn inflation in the latter 

half of 2011 and the resultant monetary tightening by their central 

banks had an impact on their economic growth trajectories. However, 

a pledge by the ECB to do ‘whatever it takes’ to resolve the eurozone 

debt crisis precipitated a rally in global markets in the summer and 

there was a further boost in the final month of the review period after 

the US Federal Reserve launched a third round of quantitative easing 

and the ECB committed to a programme called ‘Outright Monetary 

Transactions’ via which eurozone sovereign debt would be purchased. 

Investment outlook 

Fluctuations in Asian stock markets resulting from news flow concerning 

western economies are presenting patient long-term investors with 

what are, in our view, attractive entry points. In our opinion, government, 

corporate and consumer debt profiles in the Asian region are in far 

better shape than Europe or the US. However, the Federal Reserve’s 

third round of quantitative easing is likely to precipitate a rush of liquidity 

into traditionally higher-yielding Asian assets, and this could push 

inflation in the area to uncomfortably high levels. 

We remain optimistic that although economic growth is tapering, the 

Chinese economy will nonetheless avoid a hard landing. We are also 

confident that once the transition of political power has taken place by 

the end of the year, new measures will be introduced to stimulate 

growth and manage the country’s transition from a trade and exportoriented 

economy to a consumption-led economy. Following a Fund 

manager visit to the Philippines and Indonesia in the summer, we are 

also upbeat regarding the growth prospects for the smaller countries 

in the region. We were impressed by the state of government and 

corporate finances, as well as the extent to which these economies’ 

growth is driven by domestic activity rather than export dependency. 

Ben Surtees 


Policy review 

For the year to 30 September 2012, the Fund returned 15.9%, compared 

to 19.9% for its benchmark, the MSCI AC Asia ex Japan index. The 

Fund has a larger exposure to small and mid-cap companies than the 

index and these smaller companies were the worst affected during 

periods of equity market weakness, detracting from the Fund’s relative 

performance. The Fund’s bias towards mid and small-sized companies 

will be maintained as investor antipathy towards this segment of the 

market during periods of global uncertainty provides attractive entry 

points for investors with longer time horizons. From a geographic 

perspective, the Fund’s overweight exposure to China was the biggest 

drag on relative performance. As investors fretted over the pace of the 

slowdown in the Chinese economy, its domestic equities were among 

the hardest hit. We believe that fears of a ‘hard landing’ for the economy 

are overplayed and that recent policy measures, including monetary 

easing, should allow a more managed reduction in the economic growth 

rate. The Philippines was one of the best performing regional markets; 

we have held a small overweight exposure to this country which made 

a positive contribution to performance. 

38



■■Jupiter Asia Pacific Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 

as a Percentage 

of Net Assets 

% 

Transferable securities and money market instruments admitted 

to an official exchange listing 

Equities 

Australia 2,484,623 7.52 

30,000 Coca Cola Amatil 425,046 1.29 

80,000 Computershare 693,502 2.10 

65,000 Mesoblast 456,401 1.38 

30,000 Newcrest Mining 909,674 2.75 

China and Hong Kong 10,419,782 31.52 

185,000 AIA Group 687,726 2.08 

450,000 Ajisen China Holdings 298,878 0.90 

3,100 Baidu.com ADR 355,244 1.07 

1,900,000 Bank of China 724,078 2.19 

180,000 Cathay Pacific 292,726 0.89 

74,000 China Mobile (HK) 821,215 2.48 

400,000 China Taiping Insurance Holdings 628,321 1.90 

1,100,000 Greatview Aseptic Packaging 602,205 1.82 

130,000 Hang Lung Properties 444,706 1.34 

59,800 HSBC Holdings 562,408 1.70 

60,000 Hutchison Whampoa 581,313 1.76 

9,500 Mindray Medical International 316,303 0.96 

600,000 Petrochina Co. 786,175 2.38 

1,199,000 Shanghai Electric Group 425,232 1.29 

1,400,000 Shenzhen Expressway 505,546 1.53 

375,000 Sun Art Retail Group 468,387 1.42 

16,000 Tencent Holdings 546,608 1.65 

1,200,000 United Laboratories 574,155 1.74 

900,000 Yingde Gases 798,556 2.42 

India 3,140,251 9.50 

80,000 Fortis Healthcare 156,072 0.47 

50,000 Gail India 362,831 1.10 

9,000 Godfrey Phillips India 598,066 1.81 

150,000 Max India 637,880 1.93 

120,000 Opto Circuits India 294,853 0.89 

170,000 Pantaloon Retail 721,964 2.18 

20,000 Tech Mahindra 368,585 1.12 


39



■■Jupiter Asia Pacific Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Indonesia 1,543,670 4.67 

525,000 Indofood CBP Sukses Makmur 346,983 1.05 

580,000 Indomobil Sukses Internasional 343,939 1.04 

4,700,000 Lippo Karawaci 483,751 1.46 

4,740,000 Modern Internasional 368,997 1.12 

Malaysia 355,112 1.07 

360,000 Airasia 355,112 1.07 

Philippines 1,847,956 5.59 

1,250,000 Bloomberry Resorts 335,110 1.01 

3,550,000 Energy Development 516,256 1.56 

823,800 Puregold Price Club 585,186 1.77 

3,600,000 Vista Land and Lifescapes 411,404 1.25 

Singapore 2,323,228 7.03 

430,000 Biosensors International 428,668 1.30 

350,000 Far East Hospitality REIT 294,687 0.89 

560,000 Goodpack 849,384 2.57 

175,000 Olam International 291,833 0.88 

70,000 Venture 458,656 1.39 

South Korea 4,626,519 13.99 

2,200 E-Mart 477,277 1.44 

4,750 Hyundai Wia 798,999 2.42 

16,000 KB Financial Group 570,253 1.72 

18,999 Lock & Lock 407,479 1.23 

2,700 NHN 703,990 2.13 

1,700 Samsung Electric Spn GDR 1,025,100 3.10 

3,000 Samsung Fire & Marine Insurance 643,421 1.95 

Taiwan 3,647,289 11.03 

160,000 Delta Electronics Industrial 618,430 1.87 

190,000 Hon Hai Precision Industry 596,263 1.80 

60,000 Mediatek 633,276 1.92 

40,000 St. Shine Optical 513,993 1.56 

240,000 Taiwan Semiconductor Manufacturing 735,154 2.22 

310,300 Uni-President Enterprises 550,173 1.66 


40



■■Jupiter Asia Pacific Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Thailand 1,811,200 5.48 

600,000 Bank of Ayudhya 606,725 1.84 

55,000 Big C Supercenter 334,592 1.01 

70,000 Siam City Cement 869,883 2.63 

Total Equities 32,199,630 97.40 

Total transferable securities and money market instruments 

admitted to an official stock exchange listing 

32,199,630 97.40 

Other Net Assets 859,393 2.60 

Net Assets 33,059,023 100.00 


41



■■Jupiter Climate Change Solutions Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 


Class L Euro Shares EUR 8.95 EUR 7.50 19.33% 


Market Review 

Global equities produced a solid return in the year to September 2012. 

The strength of the FTSE World Index, which gained 27.2% in euro 

terms, is remarkable given it was achieved against a backdrop of 

acute political and economic crises in the eurozone. Under the weight 

of swinging fiscal cuts, the region’s economy contracted throughout 

the period. Investors had to contend with fears of a Greek exit following 

elections in May and the risk of costly bailouts for Italy and Spain, 

especially following the near-collapse of the banking sector in the 

latter. Political solutions remained wanting and it was up to the 

European Central Bank to shore-up the region’s financial sector, first 

in December through a €1tn programme dubbed the Long Term 

Refinancing Operation (LTRO) and more recently through its 

commitment to effectively backstopping the bond markets of highlyindebted 

countries. The crisis contributed to a broad slowdown in the 

global economy, resulting in further stimulus measures by central 

banks elsewhere in the world. Most notable of these was the ‘openended’ 

Quantitative Easing policy announced by the US Federal 

Reserve in September. 

Policy review 

The Fund made solid progress during the year with a return of 19.3%. 

While this was below the performance of the broad-based benchmark, 

the FTSE World Index TR, to which the Fund has a low correlation and 

which returned 27.2% in the period under review, performance was 

very favourable against the more relevant FTSE ET50 TR index which 

returned 7.3% in euro terms.* 

Core holdings in the areas of organic and high welfare foods continued 

to make excellent progress during the year. In particular, the growth 

experienced by US companies United Natural Foods and Whole 

Foods Market is a testament to priority consumers are placing in 

natural and organic foods during difficult economic times. Elsewhere, 

several core holdings were reappraised following better than expected 

results, many of which were underpinned by structural growth drivers. 

These included Owens Corning (building efficiency), Johnson 

Matthey (auto catalysts), LKQ Corp (recycled car parts), Pall 

Corporation (fluid filtration and purification technology) and Stantec 

(infrastructure consultant). The portfolio also received a boost from 

increased mergers and acquisitions activity with Hamworthy surging 

after it received a takeover bid from a Finnish marine and energy 

services business. 

*Source: Bloomberg. The ET50 index measures the performance of the largest 

50 companies globally whose core business is in the development and 

deployment of environmental technologies. 

Less successful was our small exposure to holdings listed in southern 

Europe, although these businesses tended to have a wider global 

footprint. EDP Renovaveis, for example, struggled for most of the 

year, but rallied in the final month after governments in Spain and 

Portugal clarified their respective alternative energy policies (which 

included a reasonably favourable tax decision in Spain). Overall, 

alternative energy companies remained under pressure due to 

oversupply, falling prices and tighter project funding, while holdings 

from the waste management sector underperformed amid weakening 

pricing and broader economic weakness. FirstGroup was also a 

disappointment with the business being held back by balance sheet 

concerns and the fiasco surrounding the bid process for a major UK 

rail contract. Not holding key index stock, Apple, also detracted from 

relative performance. 

Investment outlook 

We are encouraged by the structural shifts occurring across many 

industries globally which are supporting the long term growth prospects 

of companies held in the portfolio. Continued demand for organic 

foods in the US, for example, has defied the widespread household 

deleveraging that has occurred in recent years. The tougher economic 

environment and quest for greater energy independence continue to 

underpin growth in businesses associated with fuel efficiency in 

vehicles and energy efficiency in buildings. Meanwhile, after several 

testing years of having to work hard to cut prices, wind and solar 

power companies are close to competing with conventional power on 

price, a fact which is making it easier for governments to consider this 

technology as an integral part of a country’s energy mix. For example, 

Japan has introduced a solar incentives programme which could lead 

to some $9.6 billion in new installations as the country attempts to 

diversify away from nuclear power after the Fukushima disaster. 

Notwithstanding on-going eurozone risk, weaker prospects for the US 

economy and potential downturn in corporate profits, we believe there 

is a quiet revolution occurring in the environmental space which is 

sowing the seeds for long-term growth in our investment area. 

Charles Thomas 


42

the Jupiter global fund 


■■Jupiter Climate Change Solutions Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Equities 

Alternative Energy 255,837 3.95 

46,932 Alterra Power 18,696 0.29 

132,938 Carmanah Technologies 33,295 0.51 

5,446 Centrotec Sustainable 73,752 1.14 

107,733 China Longyuan Power 54,780 0.84 

54,834 Renewable Energy Generation 32,807 0.51 

494 SMA Solar Technology 13,542 0.21 

5,032 Vestas Windsystems 28,965 0.45 

Automobile and Parts 271,683 4.20 

616 BorgWarner 33,070 0.51 

3,916 Johnson Controls 83,683 1.29 

10,624 LKQ 154,930 2.40 

Chemicals 301,809 4.66 

11,000 Air Water NPV 104,834 1.62 

7,175 Horsehead Holding 52,525 0.81 

4,759 Johnson Matthey 144,450 2.23 

Contruction and Materials 863,193 13.33 

8,831 Covanta Holding 117,233 1.81 

25,451 EDP Renovaveis 86,788 1.34 

172,740 Infigen Energy 37,627 0.58 

8,463 Keller 57,870 0.89 

10,852 NCI Building System 87,126 1.35 

3,318 Ormat Technologies 48,900 0.75 

5,332 Owens Corning 140,927 2.18 

414,348 Rurelec 40,235 0.62 

1,868 Schnitzer Steel 40,656 0.63 

3,298 Scottish & Southern Energy 58,120 0.90 

8,048 WaterFurnace Renewable Energy 109,036 1.68 

1,318 Watts Water Technologies 38,675 0.60 


43



■■Jupiter Climate Change Solutions Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Electronic and Electrical Equipment 810,877 12.53 

7,700 Azbil 120,438 1.86 

1,673 Itron 55,689 0.86 

1,172 Manz Automation 27,205 0.42 

13,293 Pure Technologies 50,228 0.78 

3,652 Regal Beloit 197,654 3.05 

2,918 Schneider Elte 138,525 2.14 

2,847 Spectris 60,785 0.94 

3,977 Vacon 160,353 2.48 

Food and Drug Retailers 404,704 6.25 

4,587 United Natural Foods 207,776 3.21 

2,605 Whole Foods Market 196,928 3.04 

Food Producers 280,856 4.34 

19,568 Cranswick 192,833 2.98 

17,899 SunOpta 88,023 1.36 

Gas, Water and Multi-Utilities 158,918 2.45 

2,725 Severn Trent 57,702 0.89 

7,805 Suez Environnement 69,344 1.07 

3,696 Veolia Environnement 31,872 0.49 

General Industrials 132,399 2.05 

3,238 Harsco 51,780 0.80 

1,095 Mayr-Melnhof Karton 80,619 1.25 

Industrial Engineering 1,030,837 15.92 

7,210 Alfa Laval 102,918 1.59 

7,424 Ameresco Class A 69,169 1.07 

2,711 Andritz 116,410 1.80 

3,800 Kurita Water Industries 65,498 1.01 

18,000 NSK 81,287 1.26 

4,183 Pall 206,842 3.19 

6,937 SKF B Shares 117,395 1.81 

405,337 TEG Group 26,028 0.40 

22,441 Tomra 151,879 2.35 

1,299 Vossloh 93,411 1.44 


44



■■Jupiter Climate Change Solutions Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Leisure Goods 50,961 0.79 

900 Shimano 50,961 0.79 

Pharmaceuticals and Biotechnology 129,240 2.00 

6,004 Novozymes 129,240 2.00 

Support Services 1,332,595 20.58 

139,205 BioteQ Environmental Technologies 18,393 0.28 

13,962 Casella Waste Systems 46,837 0.72 

753 Clean Harbors 28,118 0.43 

212,461 China Everbright International 86,722 1.34 

3,600 Daiseki 43,532 0.67 

3,615 HUB Group 'A' 84,412 1.30 

5,812 Progressive Waste Solutions 93,931 1.45 

5,011 Republic Services 105,958 1.64 

17,475 Ricardo 83,969 1.30 

44,607 RPS Group 137,771 2.13 

94,976 Shanks Group 97,670 1.51 

4,907 Sims Metal Management ADR 38,048 0.59 

8,750 Stantec 238,956 3.69 

2,099 Stericycle 146,178 2.26 

115,314 Transpacific Industries Group 82,100 1.27 

Travel and Leisure 429,085 6.63 

2,700 East Japan Railway 139,157 2.15 

43,931 FirstGroup 134,582 2.08 

23,151 National Express 61,742 0.95 

26,581 Stagecoach Group 93,604 1.45 




6,452,994 99.68 




45



■■Jupiter European Opportunities Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 



Class I Euro Shares EUR 17.05 EUR 12.89 32.27% 

Performance review 

For the 12 months to 30 September 2012, the Fund grew by 31.2% 

while its benchmark, the FTSE World Europe index returned 23.1% in 

sterling terms. Over the period the Fund ranked 21 out of 206 in the 

IMA’s Europe ex UK sector. For the three years to 30 September 

2012, the Fund ranked 29 out of 175 Funds. 

Market Review 

The travails in the eurozone have continued to dominate markets in 

the last 12 months. Towards the end of 2011, lending conditions 

between European banks became so strained that the European 

Central Bank (ECB) had to introduce its Long Term Refinancing 

Operation, a programme offering cheap three-year loans. The scheme 

eventually pumped over €1 trillion into the financial system and for a 

brief period in early 2012, markets soared on the back of this indication 

that the ECB was determined to act to prevent the eurozone from 

going into meltdown. 

In the US, meanwhile, economic indicators proved to be better than 

expected and many global companies continued to post better than 

expected results. However, prospects for world growth were later 

hampered by evidence of a slowdown in China and other emerging 

markets where central banks had been raising interest rates in order 

to tackle inflation. That policy went sharply into reverse as governments 

in countries such as India and China cut rates and attempted to 

encourage greater bank lending. Central banks were especially 

concerned that the ever-worsening crisis in the eurozone would have 

a significant effect on global growth, in particular on European demand 

for Chinese goods. 

Thanks to these fears about global growth, expectations of a ‘harder’ 

landing for the Chinese economy and the lack of a coherent policy 

response to the eurozone issue, markets fell sharply in the second 

quarter of 2012. Political instability in Europe grew as the Dutch 

coalition collapsed in April under the weight of anti-austerity pressure, 

and as elections in France and Greece approached. Greece in 

particular upset markets after it appeared that the country’s left-wing 

anti-bailout parties were gaining traction and the first round of elections 

were inconclusive. 

By the end of May, the gains made in emerging markets in the early 

part of 2012 had been given back. Markets rallied towards the end of 

the period, however, after the outcome of the second round of Greek 

elections saw a pro-austerity government take control and Mario 

Draghi, president of the ECB, announced that the institution would do 

whatever lay within its remit to ensure the single currency survived. 

Over the summer, investors continued to look to the ECB to take 

action. In September, it unveiled a bond buying plan for the debt of 

troubled eurozone nations. Meanwhile, the US Federal Reserve 

launched a third round of quantitative easing, which will continue until 

further notice. 

Policy Review 

During the 12 month period under review, sentiment towards the 

financial sector remained particularly weak thanks to fears of systemic 

financial collapse in Europe. Our underweight to eurozone financials 

proved positive for performance as did good stock selection. To some 

degree, therefore, we were able to protect the portfolio with our 

generally defensive stance and our holdings in high quality global 

franchises, which have typically been able to maintain their dividends. 

Geographically speaking, not having any holdings in peripheral 

countries such as Spain made a big contribution to performance during 

the period; as did our focus on non-eurozone countries such as 

Switzerland and the UK and core European countries such as Germany. 

At stock level, some strong defensive holdings proved resilient despite 

the volatile market conditions. Syngenta, Bayer and SAP continued to 

be strong performers on the back of robust results and we took some 

profits in several stocks which looked fully valued given their earnings 

prospects. Not holding companies exposed to regulatory risk such as 

Telefonica, which announced the suspension of its dividend in July and 

appeared to be retrenching towards its home market, also aided returns. 

On the negative side, our holding in Portuguese company Galp 

detracted thanks to the poor sentiment towards the peripheral 

eurozone nations. 

Outlook 

Given current market conditions, the Fund remains liquid, diversified 

and generally positioned with the aim of avoiding sectors affected by 

political risk, e.g. utilities. Geographically, we continue to prefer strong 

eurozone countries in Northern Europe and non-eurozone countries. 

The majority of our portfolio remains focused on companies with 

visible earnings growth that we believe should generate above 

average returns going forward. We continue to prefer structural growth 

businesses which operate in global rather than local environments, 

reducing the potential for domestic risk. These sorts of companies we 

believe can often continue to perform and maintain dividends, despite 

the low growth environment and fears about sovereign debt contagion, 

because they are responding to fundamental economic shifts such as 

demographic changes and globalisation. 

For this profile we find that, if we are opportunistic in periods of 

volatility, we can pay very little premium for what we regard as better 

quality businesses. We also take the opportunity where possible to 

add to more cyclical companies with international operations, which 

should benefit from any upturn in the global economy. 

Cédric de Fonclare 


46



■■Jupiter European Opportunities Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Equities 

Belgium 138 _ 

138,033 Nyrstar VVPR Strip 138 _ 

Channel Islands 2,629,611 2.16 

201,606 Experian Group 2,629,611 2.16 

Denmark 3,910,658 3.22 

66,480 Christian Hansen Holding 1,565,259 1.29 

19,018 Novo Nordisk ‘B’ 2,345,399 1.93 

Finland 4,247,894 3.50 

85,830 Nokian Renkaat 2,736,690 2.25 

100,279 Yit-Yhtyma 1,511,204 1.25 

France 18,183,361 14.96 

27,950 Essilor International 2,071,514 1.70 

48,589 Neopost 2,075,115 1.71 

101,377 Safran 2,845,145 2.34 

48,522 Sanofi Aventis 3,297,070 2.71 

38,140 Schneider Electric 1,810,601 1.49 

149,006 Ses Global FDR 3,131,734 2.58 

38,495 Zodiac 2,952,182 2.43 

Germany 20,114,948 16.55 

46,199 Adidas-Salomon 2,974,523 2.45 

40,668 Bayer 2,760,747 2.27 

46,384 Deutsche Boerse 1,994,744 1.64 

59,058 Fresenius Medical Care 3,367,487 2.77 

47,556 GEA Group 1,126,126 0.93 

27,659 Kabel Deutschland Holdings 1,538,255 1.26 

22,035 Linde 2,960,953 2.44 

61,235 SAP 3,392,113 2.79 

Italy 1,359,830 1.12 

175,123 Fiat Industrial 1,359,830 1.12 


47



■■Jupiter European Opportunities Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



The Netherlands 3,261,590 2.68 

28,673 ASML Holding 1,193,370 0.98 

38,579 Fugro 2,068,220 1.70 

Norway 3,285,049 2.70 

177,524 DNB Holding 1,697,365 1.40 

103,215 Telenor 1,587,684 1.30 

Sweden 2,885,633 2.37 

438,532 SEB ‘A’ shares 2,885,633 2.37 

Switzerland 16,580,768 13.64 

27,586 Dufry Group 2,626,337 2.16 

2,194 Givaudan 1,623,066 1.33 

36,743 Julius Baer Group 998,099 0.82 

7,954 Partners Group 1,272,519 1.05 

984 SGS Surveillance 1,575,064 1.30 

8,368 Swatch Group ‘B’ 2,583,758 2.13 

11,040 Syngenta 3,233,528 2.66 

281,869 UBS 2,668,397 2.19 

United Kingdom 37,244,305 30.64 

46,507 Aggreko 1,350,149 1.11 

162,533 AMEC 2,341,945 1.93 

73,104 BG Group 1,153,886 0.95 

72,222 BHP Billiton 1,756,210 1.45 

59,557 British American Tobacco 2,392,026 1.97 

48,622 Croda International 1,480,695 1.22 

168,419 GlaxoSmithKline 3,038,193 2.50 

383,022 Inmarsat 2,856,672 2.35 

68,807 Intertek Group 2,365,238 1.95 

68,203 Johnson Matthey 2,070,163 1.70 

124,158 Pearson 1,887,781 1.55 

280,500 Prudential 2,827,458 2.33 

433,176 Sage Group 1,706,956 1.40 


48



■■Jupiter European Opportunities Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



United Kingdom continued 

54,497 Shire 1,230,452 1.01 

178,075 Smiths Group 2,311,532 1.90 

169,319 Standard Chartered 2,980,707 2.45 

83,682 Weir Group 1,861,615 1.53 

48,857 Wolseley 1,632,627 1.34 



admitted to an official exchange listing 

113,703,785 93.54 

Other Net Assets 7,853,877 6.46 



49



■■Jupiter European Growth Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 




Market Review 

In the period under review, markets were caught between opposing 

forces which buffeted equities and bonds. On the one hand, the 

macroeconomic challenges facing Western countries continued to 

stifle growth. Within the eurozone, in June Spain became the fourth 

country to request a bailout for a conglomerate of regional savings 

banks. To counter this, the European Central Bank embarked on 

‘QE3’, effectively printing money. Equity markets responded positively 

aided by supportive US economic data and indications that China was 

easing fiscal policy. 

Over the 12 months ended 30 September 2012, the FTSE World (total 

return) index returned 26.9% in euro terms. The S&P500 was the 

standout performer, growing by 36.0%, while the MSCI AC Asia 

ex-Japan index was up 25.0% and the FTSE World Europe 23.1%. 

The MSCI Latin America index trailed over the period under review, 

returning 18.7%, again in euro terms. 

The obvious reason for the European markets’ relative 

underperformance is the macro challenges of the Eurozone. According 

the IMF, after 1.6% growth in the European Union economy in 2011, it 

is expected to contract by 0.2% in 2012. Developing Asia (26 countries 

including China and India) continues to outperform, growing by an 

estimated 7.8% in 2011; further growth of 6.7% is forecast in 2012. 

Meanwhile the US economy is expected to expand by 2.2% in 2012, 

after growth of 1.8% in 2011. The rate of growth in Latin America has 

slowed down. Nevertheless, the IMF expects the Brazilian economy to 

have grown by 2.7% in 2011; a further 1.5% expansion in GDP is 

forecast for 2012. 

The correlation between national economic growth and stock market 

performance is not always a good one: there are many distortions 

between broad economic growth and shareholder returns. This time, 

however, Europe’s macro problems and banking crisis explain the 

underperformance of the equity markets. This trend also held true 

within the eurozone: the stock markets of Southern European 

countries (Greece, Spain, Portugal and Italy) markedly underperformed 

their Northern European counterparts (Denmark, Germany, 

Switzerland and France), as befits their diverging macro prospects. 

Corporate profitability has remained impressively robust in Europe 

despite the deterioration in public finances and weaker growth. 

Corporate profits in Europe, ex financials, according to the investment 

bank UBS, improved by 2.6% in 2011; they forecast 2.2% profits 

growth in 2012. However, a more complex pattern emerges when 

looking at the detail. There has been a bifurcation in earnings 

performance between ‘captive’ companies – those that cannot escape 

the difficulties of the eurozone and ‘flexible’ companies that can 

escape. Broadly speaking, earnings from ‘captive’ companies such as 

banks and utilities have been disappointing. ‘Flexible’ companies, on 

the other hand, which have been able to take advantage of global 

markets (and global costs) have produced good results. 

Policy Review 

In the period under review the Fund returned 41.37% compared to a 

return of 23.1% from the FTSE World Europe TR Index (€), ranking it 

1st in its peer group of 206 funds that make up the FO Equity Europe 

inc. UK TR (€) Sector. 

To an unusual extent our individual holdings polarised clearly into 

‘winners’ and ‘losers’ – there was not much in between. The majority 

of holdings made positive absolute returns. The bulk of our winners 

were companies that we describe as ‘flexible’, global companies. 

Wirecard, which provides internet payment and processing services 

and Vopak, the Dutch based chemical and oil storage company, are 

‘plays’ on increasing world trade. Johnson Matthey (the catalysis 

specialist), Novo Nordisk (the leading insulin manufacturer), Experian 

(the credit and marketing business) and Syngenta (a world leader in 

crop protection and seeds) all have successful multinational 

businesses. There were few exceptions to these ‘flexible’ global 

companies amongst our ‘winning’ companies. The only one of note is 

Grenkeleasing, the German leasing company. Its business is wholly 

in Europe but it is a beneficiary of the mainstream banks’ problems. Its 

success is a good reminder that strong business models can flourish 

even in adverse economic conditions. 

This good work was undone by a few significant mistakes which were 

costly. Aixtron designs and manufactures equipment for the 

semiconductor industry. Its profits fell sharply as overcapacity choked 

demand. Marine Harvest also suffered from overcapacity in its 

industry, salmon farming. Overcapacity and increasing competition in 

its key market, Russia, explains Oriflame’s poor performance. Other 

disappointing performers include DNB, the Norwegian bank, and 

Modern Times Group (MTG), the Scandinavian broadcaster. The 

former has not adequately exploited its position as one of the stronger 

banks in Europe, and MTG has seen a fall in its market share. 

Indeed, we sold these four positions. In all cases we had misunderstood 

the robustness and quality of the different business models. Moreover, 

in all cases we were disappointed by management response to the 

challenges. Holdings in Fugro, Johnson Matthey and Vopak were all 

reduced for portfolio management reasons. 

There were an unusually high number of new purchases, a reflection 

that this time of great challenges and change can also be a time of 

great opportunity for some companies. The two most significant new 

purchases were Fresenius SE (the German healthcare group) and 

adidas. Fresenius is benefiting from secular trends boosting demand 

for its products such as generic drugs and clinical nutrition. Meanwhile 

adidas has shown its ability to use the strength of its brand to move 

into retail, dis-intermediating the distributors. We also opened a 

position in Zodiac Aerospace. The company offers a wide range of 

products in the growing aerospace industry. 

50



■■Jupiter European Growth Review of Portfolio as at 30 September 2012 (continued) 

Investment Outlook 

The deleveraging process in Europe has a long way to go. It is 

tempting for governments to increase money supply as a way of 

easing the debt burden at the expense of savers. Clearly the shift in 

economic power away from Europe will continue for some time. 

Accordingly, more than ever it is vital that we invest in companies 

that deliver demonstrably good, differentiated and profitable products 

and services. Those companies that can successfully tap into both 

the revenue and cost opportunities afforded globally can continue to 

flourish. Such companies exist. Our investments are held across a 

broad range of activities where we identify secular growth 

opportunities. We remain confident that our investment approach is 

an appropriate one. 

Alexander Darwall 


51



■■Jupiter European Growth Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Equities 


834,448 Experian Group 10,883,968 2.97 

Denmark 43,468,119 11.87 

175,161 Novo Nordisk ‘B’ 21,601,765 5.90 

1,015,824 Novozymes 21,866,354 5.97 

Finland 5,186,347 1.42 

191,237 Wartsila 5,186,347 1.42 

France 37,261,900 10.18 

110,000 Dassault Systemes 8,987,550 2.46 

225,000 Edenred 4,907,813 1.34 

152,035 Ingenico 6,091,662 1.66 

180,000 Schneider Elte 8,545,050 2.33 

5,000 Virbac 677,375 0.19 

105,000 Zodiac 8,052,450 2.20 

Germany 67,974,537 18.57 

100,000 Adidas Salomon 6,438,500 1.76 

190,000 Bayer 12,898,150 3.52 

307,100 Fresenius SE & Co. 28,030,552 7.66 

104,531 Grenkeleasing 5,124,110 1.40 

15,000 Sartorius 926,100 0.25 

825,000 Wirecard 14,557,125 3.98 

Ireland 883,900 0.24 

200,000 Ryanair 883,900 0.24 

Italy 5,553,000 1.52 

200,000 Luxottica 5,553,000 1.52 


40,000 Fugro 2,144,400 0.59 

2,281,229 Reed Elsevier 23,816,031 6.50 

200,000 Vopak 10,847,000 2.96 


52



■■Jupiter European Growth Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Norway 22,449,602 6.13 

1,450,000 DNB Holding 13,863,923 3.79 

1,268,581 Tomra 8,585,679 2.34 

Spain 8,158,500 2.23 

450,000 Amadeus IT Holdings 8,158,500 2.23 

Sweden 10,559,896 2.88 

150,000 Hexagon 2,511,798 0.68 

549,000 SCA 'B' 8,048,098 2.20 

Switzerland 28,369,602 7.75 

4,000 SGS Surveillance 6,402,699 1.75 

75,000 Syngenta 21,966,903 6.00 


388,000 Aggreko 11,264,062 3.08 

150,000 AVEVA Group 3,694,979 1.01 

454,369 Croda International 13,836,988 3.78 

256,000 Intertek Group 8,799,990 2.40 

407,033 Johnson Matthey 12,354,656 3.37 

666,128 Pearson 10,128,257 2.77 

948,168 Provident Financial 16,275,829 4.45 

440,700 Standard Chartered 7,758,122 2.12 




361,669,685 98.79 




53



■■Jupiter Global Financials Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 




Market Review 

Share prices made strong gains in the year to September 2012, 

recovering from a significant decline in the summer of 2011 when 

concerns over the Eurozone breaking up reached a heightened level. 

Positive momentum was increased when the European Central Bank 

launched the ‘Long Term Refinancing Operation’ at the end of 

December, a programme which provided liquidity to allow southern 

European banks to buy sovereign debt. The positive effects of this were 

short-lived, however, when bank deposits fled during the Greek election 

process in May 2012. This forced domestic banks to sell bonds and 

resulted in a sharp decline in equities. Despite clear indications that 

global economic growth was slowing, upward momentum in share 

prices was restored late in the period under review with the ECB 

committing to direct purchases of sovereign debt and the US Fed 

announced a third programme of quantitative easing. 

Policy Review 


to 29.9% for its benchmark, the FTSE AW Financials index TR in euro 

terms. The Fund maintained significant exposure to banks in North 

America which benefited from the steady recovery in the US economy 

and bottoming out of the housing market. We also held positions in 

specialist financial companies and real estate companies globally, while 

being more cautious on European financials. Despite losing out 

somewhat on recovery rallies in European stocks, the Fund made 

strong returns from its equity portfolio and good returns from bond 

positions. Although the Fund’s risk adjusted return was satisfactory, its 

allocation across stocks and bonds meant it lagged the benchmark 

return, which is 100% equity weighted. 


The outlook for global economic growth is hampered by efforts to 

reduce debt in the West and slowing growth in China. This has given 

rise to additional central bank action as this is seen as the only way to 

support economies. The extended low interest rate and investment 

return environment in the West combined with weak economies, 

particularly in Europe, is unhelpful for financial company earnings 

although supportive for valuations. Nevertheless the improving housing 

market in the US and interest rate cuts in emerging markets should help 

restore growth to more normal levels. The risk of a crisis in Europe looks 

to have been contained by the strong policy measures announced by 

the ECB but the region remains vulnerable to any political setbacks. 

We see opportunities for good returns from shares of niche businesses 

in the less economically-sensitive parts of the financial sector and from 

companies investing in growth regions of the world. We also see 

opportunities in companies which can reduce or eliminate valuation 

discounts through cost reduction initiatives, mergers and acquisitions or 

through reallocating capital away from uneconomic balance sheets (i.e. 

with unproductive or unprofitable assets). Real estate assets and 

corporate bonds should in our view continue to benefit from the 

additional liquidity provided by quantitative easing. Retail property in 

emerging markets remains an attractive way to gain exposure to rising 

consumer spending and increasing affluence. Selected financial 

company bonds still offer attractive yields with reducing risk as balance 

sheets are strengthened. 

Guy de Blonay 


54



■■Jupiter Global Financials Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Equities 

Banks 9,065,769 33.15 

24,225 ANZ Banking 483,515 1.77 

25,562 Banca Generali 267,123 0.98 

20,857 Banco Macro ADR 232,899 0.85 

210,000 Bank of China (Hong Kong) Holdings 516,609 1.89 

6,835 Bank of Georgia Holdings 109,662 0.40 

14,653 Bank of Nova Scotia 633,245 2.31 

19,974 BankUnited 380,774 1.39 

9,249 BNP Paribas 347,462 1.27 

728,000 China CITIC Bank 266,275 0.97 

57,000 DBS Group 517,417 1.89 

47,200 Grupo Financiero Banorte 'O' 202,574 0.74 

24,904 JP Morgan Chase 783,875 2.87 

805,900 Krung Thai Bank NVDR 369,766 1.35 

82,546 Mediobanca 343,556 1.26 

55,464 New York Community Bancorp 605,389 2.21 

188,990 Philippine National Bank 256,214 0.94 

72,848 Regions Financial 410,110 1.50 

17,300 Sumitomo Mitsui Financial 420,809 1.54 

9,958 Texas Capital Bancshares 384,446 1.41 

6,822 Toronto Dominion Bank 443,374 1.62 

19,824 US Bancorp 523,957 1.92 

10,709 Wells Fargo & Co 287,933 1.05 

49,737 Yes Bank 278,785 1.02 

Computer Services 762,240 2.79 

33,138 Financial Technologies (India) 474,219 1.74 

2,242,654 Quindell Portfolio 288,021 1.05 

Consumer Services 298,340 1.09 

7,848 Ebay 298,340 1.09 


55



■■Jupiter Global Financials Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Financial Services 4,567,215 16.70 

137,500 Adira Dinamika Multi Finance 112,574 0.41 

44,623 BM&F Bovespa 212,997 0.78 

6,408 Capital One Financial 282,475 1.03 

4,077,000 Clipan Finance Indonesia 132,692 0.49 

19,271 Discover Financial Services 592,032 2.16 

6,753 Equifax 242,709 0.89 

8,513 Frank Resources 822,307 3.01 

4,458 IntercontinentalExchange 466,254 1.70 

1,546 MasterCard 540,710 1.98 

12,534 Moody's 431,570 1.58 

15,666 Morgan Stanley 204,090 0.75 

27,885 Schroders 411,404 1.50 

1,318 VZ Holding 115,401 0.42 

Non-Life Insurance 1,384,846 5.06 

13,334 AIG 342,518 1.25 

3,036 Everest Re Group 251,606 0.92 

19,421 Lancashire Holdings 200,632 0.73 

24,480 Sampo 'A' 590,090 2.16 

Real Estate and Investment Services 3,862,155 14.12 

8,684 Boardwalk REIT 445,331 1.63 

569,000 CapitaRetail China Trust 526,922 1.93 

5,160,000 CSI Properties 168,650 0.62 

27,919 Fabege 207,370 0.76 

271,000 Far East Hospitality Trust 176,569 0.65 

62 Fukuoka REIT 351,685 1.29 


58,462 ICAP 235,830 0.86 

20,825 Iguatemi Empresa De Shopping 404,756 1.48 

20,380 Patrizia Immobilien 94,522 0.34 

66,111 Savills 334,775 1.22 

40,443 VIB Vermoegen 354,180 1.29 

114,801 Westfield Retail Trust 269,053 0.98 


56



■■Jupiter Global Financials Schedule of Investments as at 30 September 2012 (continued) 

Quantity/ 

Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 




Corporate Bonds 6,099,450 22.31 

489,000 Amlin 6.5% Variable 19/12/2026 579,060 2.12 

600,000 Barclays Bank 14% Variable Perpetual 947,802 3.47 

2,500,000 Bayport Management 13% 19/11/2015 304,586 1.11 

1,000,000 ELM 7.635% Variable Perpetual 759,066 2.78 

857,000 International Personal Finance 11.5% 06/08/2015 953,798 3.49 

502,000 Investec 9.625% 17/02/2022 671,246 2.45 

1,150,000 Scor 6.154% Variable Perpetual 1,068,753 3.91 

900,000 SLM 8% 25/03/2020 815,139 2.98 

Total Bonds 6,099,450 22.31 



26,040,015 95.22 




57



■■Jupiter New Europe Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 




Market Review 

Regional markets were heavily influenced by external factors in the 

period under review, in particular by the eurozone crisis. While share 

prices have been pressured by weak sentiment, the largest economies 

in our region and the operational results of the companies in our portfolio 

have shown considerable resilience. The Russian economy has largely 

recovered from the recession of 2008-09 and recent statistics suggest 

that Russian consumers are in a good position. Unemployment is at its 

lowest level since 1999, while real wage growth is allowing for increasing 

levels of spending, helping to drive real annual retail sales growth. 

However, Russian equities have not performed as strongly as might 

have been expected during the year to 30th September 2012.In Turkey, 

the government has enjoyed some success in rebalancing the economy 

and preventing it from overheating following an 8.5% surge in GDP in 

2011. Growth moderated to3.2% year on year in the first quarter of 

2012, while the current account deficit narrowed to 8.6% of GDP in May, 

down from10% at the end of 2011. 

Policy Review 

For the year to 30 September 2012, the Fund has returned 18.3% 

compared to 23.8% for its benchmark the MSCI Emerging Markets 

Europe 10/40 index. The underweight position in central Europe has 

weighed on performance, particularly in the last nine months or so, as 

central bank measures to increase liquidity coupled with tentative signs 

of progress in resolving the eurozone crisis caused these markets to 

rally in spite of weakening fundamentals. The main stock-specific factor 

working against performance has been the Fund’s position (3.6% as at 

30 September 2011) in Russia vodka producer Synergy (-21% in GBP 

in the 12 months to 30 September 2012), which suffered from 

unfavourable regulatory developments, including a sharp increase in 

excise duty, causing results to disappoint. The Fund has an overweight 

stance in Russia and Turkey. In Russia, key positions include consumerfocused 

stocks such as food retailer Okey, and infrastructure plays such 

as Russia’s largest transport construction company Mostotrest. In 

Turkey, we hold significant positions in banks, which provide exposure 

to the underleveraged consumer and underpenetrated mortgage 

market. The Fund has almost no positions in central Europe (other than 

a small holding in Polish insurer PZU) as these economies have 

suffered a sharp slowdown in recent months due to their greater 

exposure to the crisis in the Eurozone. 


The success of Turkish policymakers in reducing macroeconomic 

volatility has allowed investors to increase their focus on the country’s 

long-term growth drivers: favourable demographics, rising productivity 

and improved governance. Following a recent research trip, we have 

increased the Fund’s Turkish exposure by around 10% on the view that 

corporate earnings are set to surprise positively, creating scope for the 

market to continue performing strongly. We believe that Turkey currently 

offers better opportunities than central European markets to which we 

currently have no exposure on the view that those countries will be 

badly affected by the slowdown in the eurozone. 

After 18 years of negotiations, Russia finally joined the World Trade 

Organisation this summer. While the gains from membership are mostly 

of a long-term nature, it is an important signal of the government’s 

commitment to liberalise the economy. Russian equities look 

increasingly attractive from a dividend perspective following 

encouragement from the government to increase payout ratios. As a 

result, the dividend yield for the Russian market – which historically was 

lower than in other markets – has now caught up with emerging market 

peers and stands at around 3.2%. Long term structural growth drivers, 

macroeconomic strength and low valuations combine to create 

compelling investment opportunities in Russia and Turkey. 

Elena Shaftan, Ingrid Kukuljan and Colin Croft 


58



■■Jupiter New Europe Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Equities 

Austria 2,608,208 4.78 

80,000 Do & Co Restaurants & Catering 2,608,208 4.78 

Poland 569,693 1.04 

6,500 PZU Group 569,693 1.04 

Russia 40,101,589 73.51 

24,513 Bashneft 1,149,139 2.11 

145,000 Cherkizovo Group GDR 1,303,279 2.39 

430,000 Etalon Group GDR 2,091,336 3.83 

50,000 Eurasia Drilling GDR 1,227,694 2.25 

800,000 Gazprom 3,140,536 5.76 

89,000 Globaltrans Investment GDR 1,427,019 2.62 

405,000 Hydraulic Machines & Systems GDR 1,488,671 2.73 

106,500 Lukoil ADR 5,117,894 9.38 

365,000 M Video 2,344,750 4.30 

195,000 Mobile Telesystems 1,107,303 2.03 

340,000 Mostotrest 1,578,765 2.89 

160,000 Nomos Bank GDR 1,540,247 2.82 

75,081 Norilsk Nickel ADR 933,966 1.71 

17,263 Novatek GDR 1,602,384 2.94 

180,000 Okey Group GDR 1,329,879 2.44 

406,232 Rosneft Oil GDR 2,114,056 3.87 

2,105,615 Sberbank of Russia 4,763,786 8.73 

1,450,000 Surgutneftegaz Preferred 750,386 1.38 

189,600 Synergy 2,158,484 3.96 

695 Transneft 995,640 1.82 

60,000 Uralkali GDR 1,936,375 3.55 


59



■■Jupiter New Europe Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Equities 

Turkey 10,044,601 18.41 

315,000 Enka Insaat 627,393 1.15 

1,210,000 Garanti Bankasi 3,969,693 7.28 

600,000 KOC Holding 1,859,804 3.41 

220,000 Tofas Turk Otomobil Fabrikasi 859,286 1.57 

125,000 Turkiye Halk Bankasi 753,093 1.38 

490,000 Turkiye IS Bankasi ‘C’ 1,206,199 2.21 

232,000 Ulker Biskuvi Sanayi 769,133 1.41 




53,324,091 97.74 




60



■■Jupiter India Select Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 

Class L US Dollar Shares USD 122.66 USD 124.97 (1.85)% 


Class L Sterling Shares GBP 9.36 GBP 9.90 (5.45)% 

Market Review 

At the start of the period under review, global risk aversion undermined 

emerging market performance, affecting India badly. Poor domestic 

economic figures relating to weakening growth and inflation added to 

the country’s woes and political wrangling compounded pressure on the 

market. As 2012 arrived, both the Indian equity market and the rupee 

staged strong rallies. The central bank signalled a more accommodative 

stance through liquidity measures which included the relaxation of the 

cash reserve ratio from 6.0% to 5.5%, a move which it was hoped would 

encourage greater lending. The start of the second quarter bore witness 

to an unexpected move by the central bank, namely a 50 basis point cut 

in interest rates. However, the impact of the cut was overshadowed by 

S&P’s decision the same month to downgrade India’s sovereign rating 

outlook from ‘stable’ to ‘negative’. Indian equities continued to fall in May 

on the back of pervasive negative sentiment arising from the ongoing 

eurozone crisis, weaker numbers from the US and China and 

disappointing domestic economic data and average market returns over 

the summer period were negligible. August saw good rains throughout 

the country and a return to normal historical levels for the monsoon 

which was delayed earlier this year. The Indian government commenced 

a feverish bout of policymaking in early September, opening up the 

retail and aviation sectors to foreign investors and reducing diesel 

subsidies. Key decisions were also taken regarding pension and 

insurance reform. This precipitated a significant rally in Indian equities, 

lifting many of the stocks held in the portfolio, which outperformed for 

the month. 

Policy Review 

For the year to 30 September 2012, the Fund returned -1.8%, compared 

to 7.5% for its benchmark, the MSCI India index in US dollar terms. In 

terms of sectors, our overweight position in consumer goods detracted 

from performance and stock-wise, HSIL and Opto Circuits made poor 

returns. The latter – a manufacturer of medical monitoring equipment 

and stents suffered a share-price correction of almost 18% in August 

due to a negative credit rating on one of its debt lines. The management 

team is taking steps to decrease the company’s high level of working 

capital and is setting up new manufacturing facilities in Malaysia. 

However we are confident that the company does not have cash flow 

problems and is well placed to enjoy strong growth going forward. 

Conditions have been extremely challenging for investors in India in the 

past year. In our view, however, the relatively poor performance of the 

equity market for the majority of period under review belies the corporate 

health of many of India’s companies, most of which published decent 

results at the end of the first half of 2012. Sectors have suffered across 

the board: there has been no ‘safe place’ to hide, but our insistence on 

being underweight in Basic Materials, Technology and Oil & Gas paid 

some dividends. Our preference for investing in small cap companies 

detracted from the Fund’s performance in the year under review but we 

will be maintaining these positions as the underlying fundamentals are 

still compelling and we are confident that, in the longer term, these 

holdings will make good returns for the Fund as they have done before. 


After a lengthy period of inactivity, the Indian government has finally 

started to enact much-needed reforms. Markets have reacted positively 

to the changes, which have included opening up both the multi-brand 

retail and the airline sectors to foreign direct investment. The government 

has also increased diesel prices and capped LPG subsidies, all of which 

should ease the fiscal deficit. A decision on the scrapping of short-term 

capital gains tax on stocks is imminent and, if approved, will have a 

hugely positive impact on the market. 

The ruling party does not have a political majority but in our view this 

does not present a problem because the opposition is too fragmented to 

rock the boat. A coalition partner withdrew after the government began 

implementing reforms and it is possible that they may issue a vote of no 

confidence when Parliament reconvenes in November but in our view 

that will only hasten the pace of reform in the preceding period. 

It is important to keep in mind that although India is relatively insulated 

from major events on the global economic scene, its fate is still linked to 

the global investment climate and investor sentiment but we are feeling 

more optimistic than we were a few months ago as we see these policy 

reforms as concrete steps to tackle the deficit reduction and improve the 

investment climate. 

Avinash Vazirani 


61



■■Jupiter India Select Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Equities 

India 160,325,830 97.26 

280,000 Adani Enterprises 1,067,817 0.65 

100,000 Aditya Birla Nuvo 1,702,436 1.03 

300,000 Anant Raj Industries 406,674 0.25 

26,000 Aventis Pharma 1,172,107 0.71 

100,000 Axis Bank 2,153,759 1.31 

50,000 Bajaj Auto 1,734,856 1.05 

300,000 Bharat Forge 1,737,890 1.05 

350,000 Bharti Airtel 1,761,447 1.07 

360,000 Castrol (India) 2,124,372 1.29 

541,186 Central Bank of India 802,365 0.49 

40,000 CESC 251,512 0.15 

80,000 Corporation Bank 633,008 0.38 

590,000 Dabur India 1,431,794 0.87 

658,236 Deccan Gold Mines 251,464 0.15 

2,000,000 Dena Bank 4,023,130 2.44 

1,500,000 Dhanlaxmi Bank 1,579,771 0.96 

1,300,000 Dish TV India 2,034,600 1.23 

836,261 EIH Associated Hotels 2,078,563 1.26 

464,589 EIH Associated Hotels NP 273,935 0.17 

110,000 Elpro International 693,014 0.42 

220,000 Engineers India 985,610 0.60 

600,000 Eros International 2,258,707 1.37 

669,086 First Leasing Company of India 637,436 0.39 

241,334 Force Motors 2,047,759 1.24 

1,000,000 Fortis Healthcare 1,950,896 1.18 

47,251 Gillette India 1,907,464 1.16 

216,422 Godfrey Phillips India 14,381,631 8.72 

200,000 HCL Technologies 2,189,591 1.33 

2,003,717 Heidelberg Cement India 1,857,650 1.13 

200,000 Hindustan Unilever 2,069,770 1.26 

50,000 Hirco 34,508 0.02 


62



■■Jupiter India Select Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



India continued 

104,747 Housing Development Finance 1,537,891 0.93 

1,349,996 HSIL 3,366,992 2.04 

200,000 ICICI Bank 4,014,788 2.44 

50,000 ICICI Bank ADR 1,994,750 1.21 

540,950 IL&FS Transportation Network 1,995,295 1.21 

431,798 IndusInd Bank 2,908,671 1.76 

75,000 Infosys Technologies 3,604,536 2.19 

530,715 ING Vysya Bank 4,167,680 2.53 

426,000 Ishaan Real Estate 222,446 0.13 

50,000 Jammu & Kashmir Bank 884,160 0.54 

225,000 JBF Industries 613,210 0.37 

2,300,000 Kolar Gold 283,958 0.17 

100,000 Mahindra & Mahindra 1,639,397 0.99 

456,000 Max India 1,939,156 1.18 

187,000 Milkfood 294,797 0.18 

30,000 Multi Commodity Exchange of India 729,026 0.44 

2,000,000 National Hydroelectric Power 731,823 0.44 

560,000 Navneet Publications India 614,731 0.37 

81,000 Nestle India 6,760,033 4.10 

2,800,290 Opto Circuits India 6,880,606 4.17 

43,237 Oracle Financial Services 2,466,628 1.50 

500,000 Oriental Bank of Commerce 2,861,409 1.74 

350,000 Pantaloon Retail 1,486,397 0.90 

700,000 Petronet LNG 2,096,218 1.27 

300,000 Phillips Carbon Black 554,555 0.34 

750,000 Power Finance 2,686,748 1.63 

44,600 Procter & Gamble Hygiene and Healthcare 2,088,154 1.27 

400,000 PTC India 537,681 0.33 

2,101,254 Punjab & Sind Bank 2,706,990 1.64 

188,123 Punjab National Bank 'F' 3,067,320 1.86 


63



■■Jupiter India Select Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



India continued 

350,406 Rural Electrification 1,449,921 0.88 

850,000 Satyam Computer Services 1,784,766 1.08 

750,000 Sicagen India 233,197 0.14 

313,628 SJVN 118,922 0.07 

784,507 Southern Online Bio Technologies 66,187 0.04 

50,000 State Bank of India 2,123,993 1.29 

425,000 Sun Pharmaceuticals 5,604,489 3.40 

300,000 Syndicate Bank 618,542 0.38 

500,000 Tata Motors 2,536,259 1.54 

56,685 Tata Motors ADR 1,397,569 0.85 

250,000 Tech Mahindra 4,607,309 2.79 

1,160,000 Texmaco Rail & Engineering 1,286,567 0.78 

225,000 Torrent Power 750,142 0.47 

750,000 Unitech Corporate Parks 403,774 0.24 

362,000 United Spirits 8,359,733 5.07 

251,411 Visaka Industries 639,669 0.39 

838,774 Websol SL Energy Systems 221,839 0.13 

254,400 Whirlpool of India 1,254,034 0.76 

400,000 Yes Bank 2,897,336 1.76 

Sri Lanka 3,650,862 2.22 

76,800 Chevron Lubricants Lanka 113,680 0.07 

700,000 Distilleries Company of Sri Lanka 866,654 0.53 

1,533,333 John Keells Holdings 2,670,528 1.62 


Open-ended Funds 

Mauritius 

50,000 Taj Performance Fund* 2,500 – 

Total Open-ended Funds 2,500 – 



163,979,192 99.48 



*Liquidated. Valuation based on value determined by the Board of Directors. 


64



■■Jupiter Japan Select Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 

Class L US Dollar Shares USD 11.06 USD 11.25 (1.69)% 


Class L Sterling Shares GBP 11.02 GBP 11.78 (6.45)% 

Performance Review 

Over the year to 30 September 2012, the Fund fell 1.7% in US dollar 

terms, performing in line with its benchmark, the Topix, which also 

fell 1.7%. 

Market Review 

The Japanese economy recovered from the tsunami-induced 

recession with many industries quickly overcoming supply chain 

problems, despite persistent power shortages in the Tokyo area. 

Nevertheless, the Japanese market remained weak early in the year 

under review as exporters were affected by external factors such as a 

eurozone crisis, slower global growth, the yen’s relentless strength 

and floods in Thailand where many Japanese manufacturers have a 

significant production base. 

Japanese equities rallied in early 2012, helped by the yen’s weakness 

after the Bank of Japan adopted an explicit inflation target for the first 

time and increased its quantitative easing programme. However, the 

market lost all the gains by the end of May mainly due to the yen’s 

strength as a deepening eurozone crisis fuelled investors’ flight to the 

safe-haven currency. Japanese equities became range-bound after 

that, affected by concerns over China’s economic slowdown and 

anti-Japan protests due to the disputed Senkaku islands. Once again, 

domestically-oriented stocks outperformed their more export-focused 

peers at this time. 

Policy Review 

The Fund’s performance was supported by its focus on domestic 

stocks such as Astellas Pharma, housing products maker LIXIL 

(formerly JS Group), Sumitomo Mitsui Financial, TV broadcaster Fuji 

Media and internet services company Bit-isle. Not holding electric 

utilities was also positive for performance as they were affected by 

concerns over post-Fukushima maintenance costs. Among exporters, 

stock selection in the chemicals sector contributed positively, with 

our holdings in Nissan Chemical and Nitto Denko making 

strong contributions. 

Meanwhile, stock selection in the telecoms sector detracted from 

performance as we were overweight in NTT DoCoMo which 

underperformed, while we sold out of Softbank which later outperformed. 

Among companies that rely on domestic demand, we initiated holdings 

in LIXIL, Bit-isle and bicycle retailer Asahi. We also added investment 

in selected exporters and cyclical stocks as the polarisation in the 

market performance pushed their valuations to extremely low levels. 

We established a new position in auto parts maker Denso, taking 

advantage of its share price weakness. 


Japanese equities have underperformed most of their global peers in 

recent months, affected by concerns about falling demand from China. 

Investors have been alarmed by anti-Japanese riots in China and the 

frosty rhetoric from the Chinese government regarding the Senkaku 

Islands. Trade flows between the two economies are massive and 

crucial for both parties and we believe diplomats will strive to cool the 

dispute before any serious economic damage is sustained. 

Domestically, the main opposition LDP has recently chosen a former 

prime minister, Shinzo Abe, as its leader. Current Prime Minister Noda 

and his party, the DPJ, are hugely unpopular and the LDP is expected 

to win the next general election, or it may form a coalition with the new 

Japan Restoration Party headed by Mayor of Osaka Toru Hashimoto. 

Abe is a strong proponent of ridding Japan of deflation and an Abe 

administration is likely to install a dovish governor of the Bank of 

Japan who would propose more aggressive monetary easing. 

Rarely has a political change been good for Japanese equities, mainly 

because the superficial switches of personnel have led to almost no 

genuine action. However, a resounding LDP win at the next election 

should mean a more positive political environment for equities – it is 

indeed hard to believe that it could be much worse. 

Simon Somerville 


65



■■Jupiter Japan Select Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Equities 

Japan 68,084,560 98.21 

40,000 Aeon Delight 886,828 1.28 

50,000 Aeon Mall 1,230,274 1.77 

130,000 Air Water 1,601,031 2.31 

50,000 Asahi 857,327 1.24 

160,000 Asahi Glass 1,071,820 1.55 

25,000 Astellas Pharma 1,276,973 1.84 

70,000 Azbil Corporation 1,414,879 2.04 

15,000 Benesse 730,435 1.05 

110,000 Bit-Isle 1,150,660 1.66 

90,000 Bridgestone 2,098,551 3.03 

75,000 Canon 2,410,628 3.48 

50,000 Denso 1,578,744 2.28 

25,000 East Japan Railway 1,665,056 2.40 

1,000 Fuji Media Holdings 1,646,377 2.37 

30,000 Honda Motor 926,377 1.34 

80,000 Hoya 1,767,472 2.55 

5,000 Japan Airlines 235,105 0.34 

1,500 Jupiter Telecommunications 1,530,435 2.21 

70,000 Koito Manufacturing 813,398 1.17 

50,000 Komatsu 990,016 1.43 

90,000 Lixil Group 2,158,841 3.11 

50,000 Makita 1,951,691 2.81 

40,000 Mitsubishi 731,208 1.05 

300,000 Mitsubishi UFJ Financial 1,414,493 2.04 

40,000 Murata Manufacturing 2,141,063 3.09 

23,000 Nihon M&S Center 670,518 0.97 

130,000 Nissan Chemical Industries 1,462,029 2.11 

300,000 Nissan Motor 2,570,048 3.71 

35,000 Nitto Denko 1,677,295 2.42 

60,000 Nomura Research Institute 1,243,671 1.79 

1,900 NTT Docomo 3,098,744 4.47 


66



■■Jupiter Japan Select Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Japan continued 

75,000 Omron 1,449,275 2.09 

330,000 Resona 1,360,386 1.96 

200,000 Sekisui Chemical 1,620,612 2.34 

55,000 Seven & I Holdings 1,698,357 2.45 

80,000 Shinko Plantech 656,489 0.95 

110,000 Start Today 1,587,117 2.29 

150,000 Sumitomo 2,034,783 2.93 

120,000 Sumitomo Electric Industries 1,275,362 1.84 

100,000 Sumitomo Mitsui Financial 3,143,317 4.53 

1,050,000 Sumitomo Mitsui Trust Holdings 3,138,164 4.53 

110,000 Tokio Marine Holdings 2,825,636 4.08 

350,000 Toshiba 1,127,214 1.63 

1,000 United Urban Investment 1,165,861 1.68 




68,084,560 98.21 




67



■■Jupiter Global Equities Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 




Market Review 

Concerns over global growth and the absence of a satisfactory 

resolution to the eurozone crisis have been the main influences on 

markets in the period under review. Towards the end of 2011, markets 

fell as investor confidence waned, but sentiment was restored by the 

introduction of a lending programme for European banks called the 

Long Term Refinancing Operation in early 2012. Global equities 

rallied, supported also by better economic data from the US. However, 

by the second quarter, evidence had begun to emerge that growth in 

developing economies such as China and India was slowing and 

interest rates in those countries were cut by way of response. 

Performance in global markets fell back and, at the same time, 

concerns over the solvency of Spain’s financial sector mounted. This 

nervousness was compounded after the Dutch government collapsed 

over failure to agree austerity measures and socialist leader François 

Hollande became President of France. The head of the European 

Central Bank (ECB), Mario Draghi, announced in a pivotal speech in 

July that he would do ‘whatever it takes’ to ensure the survival of the 

eurozone, commitment that shored up global markets through the 

summer months. In early September, a bond-buying operation called 

‘Outright Monetary Transactions’ was launched by the ECB in an 

attempt to bring down worryingly high yields on southern European 

sovereign debt. With key economic data remaining gloomy, the US 

Federal Reserve nonetheless felt obliged to introduce a third round of 

quantitative easing in September, and the ensuing rush of liquidity 

boosted markets at the end of the period under review. 

Policy Review 


to 22.3% for its benchmark, the MSCI World index in US dollar terms. 

Our underweight position in financials weighed on performance in the 

period under review. The Fund has a heavily overweight bias towards 

consumer goods and services – almost double that of the index – and 

this has served us well in terms of performance. Sector-wise, basic 

materials and technology also made good returns. Consumer staple 

companies with international reach such as Wal-Mart and Philip Morris, 

both of which are core holdings for the Fund, made strong returns while 

Australia’s Newmont Mining detracted, suffering from the drop in global 

commodity prices. The Fund’s overweight position in two northern 

European economies – Germany and the Netherlands – supported 

performance and has been ramped up from just over 6% to just over 

11% in the period under review. 


Signs of stability have emerged in the US property market and the 

eurozone countries have made some progress in tackling the debt 

crisis, but much work still needs to be done. We have selective 

exposure to both these regions, as we believe it is possible to pick up 

high quality companies at reasonable valuations, especially within the 

large-cap sector. We continue to see the best value in emerging 

market equities but the Federal Reserve’s third round of quantitative 

easing is likely to precipitate a rush of liquidity into traditionally higheryielding 

emerging market assets, and this could push inflation in those 

areas to uncomfortably high levels. In the meantime, however, 

fluctuations in emerging markets resulting from news flow concerning 

western economies are presenting patient long-term investors with 

what are, in our view, attractive entry points. 

We remain optimistic that although economic growth is tapering, the 

Chinese economy will nonetheless avoid a hard landing. We are also 

confident that once the transition of political power has taken place by 

the end of the year, new measures will be introduced to stimulate 

growth and manage the country’s transition from a trade and exportoriented 

economy to a consumption-led economy. Following a visit to 

the Philippines and Indonesia in the summer, we are also upbeat 

regarding the growth prospects for the smaller countries in Asia. We 

were impressed by the state of government and corporate finances, 

as well as the extent to which these economies’ growth is driven 

domestically rather than through export dependency. Overall, we have 

slowly been increasing the portfolio’s exposure to emerging market 

equities through the course of the period under review. 

Ben Surtees 


68



■■Jupiter Global Equities Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Equities 

China 205,261 2.54 

3,500 Mindray Medical ADR 116,533 1.44 

100,000 Yingde Gases 88,728 1.10 

Denmark 576,910 7.14 

1,700 Novo Nordisk ‘B’ 270,925 3.35 

11,000 Novozymes 305,985 3.79 

France 534,320 6.61 

2,000 Dassault Systemes 211,168 2.61 

4,500 Edenred 126,843 1.57 

3,200 Schneider Elte 196,309 2.43 

Germany 491,753 6.08 

1,750 Bayer 153,518 1.90 

2,200 Fresenius SE & Co. 259,492 3.21 

1,100 SAP 78,743 0.97 

Great Britain 476,448 5.89 

5,727 Johnson Matthey 224,635 2.78 

9,111 Pearson 179,016 2.21 

3,200 Standard Chartered Bank 72,797 0.90 

Hong Kong 416,189 5.15 

10,000 HSBC Holding 94,048 1.16 

26,000 Li & Fung 40,271 0.50 

130,000 Sun Art Retail Group 162,374 2.01 

249,750 United Laboratories 119,496 1.48 

India 92,146 1.14 

5,000 Tech Mahindra 92,146 1.14 

Ireland 188,088 2.33 

11,159 Experian Group 188,088 2.33 

Japan 304,986 3.77 

2,300 Canon 73,926 0.91 

5,900 Toyota Motor 231,060 2.86 


69



■■Jupiter Global Equities Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



The Netherlands 422,600 5.23 

13,142 Reed Elsevier 177,301 2.19 

3,500 Vopak 245,299 3.04 

Singapore 181,807 2.25 

47,000 Singapore Telecommunications 122,837 1.52 

9,000 Venture 58,970 0.73 

South Korea 195,975 2.42 

325 Samsung Electronics GDR 195,975 2.42 

Switzerland 488,101 6.04 

3,500 Nestlé 223,156 2.76 

700 Syngenta 264,945 3.28 

United States of America 3,295,023 40.77 

1,400 Chevron 164,038 2.03 

7,016 Cisco Systems 131,866 1.63 

9,342 Coca Cola 357,845 4.43 

1,725 Colgate Palmolive 185,196 2.29 

6,000 CVS Caremark 289,530 3.58 

6,617 General Electric 150,504 1.86 

3,567 McDonalds 332,676 4.12 

11,721 Microsoft 353,857 4.38 

854 Monsanto 78,030 0.97 

3,000 Navistar International 64,935 0.80 

4,250 Newmont Mining 240,210 2.97 

7,381 Pfizer 184,119 2.28 

4,400 Philip Morris International 398,926 4.94 

4,911 Walmart Stores 363,291 4.49 




7,869,607 97.36 




70



■■Jupiter North American Equities Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 




Market Review 

US equities outperformed most of their global peers over the year under 

review, helped by a firm economic growth early in the period and more 

action from the Federal Reserve later. 

US equities started the period on a positive note as signs of economic 

recovery began to emerge within the country. The economy improved 

firmly towards the end of 2011 and early 2012, with manufacturing 

strengthening and unemployment falling. Against growing eurozone 

concerns, the European Central Bank introduced its Long Term 

Refinancing Operation in December which eased fears of a 

financial crisis. 

However, eurozone concerns resurged in April and increased volatility 

once again in equity markets. At around the same time, the economic 

recovery in the US began to falter with manufacturing and the job 

market stagnating. The housing market, however, showed increasing 

signs of stabilising. 

US equities rose from June onwards as European leaders moved a step 

closer to integration of the eurozone banking system. In addition, signs 

of a global economic slowdown increased expectations of further 

monetary easing worldwide. The Federal Reserve extended ‘Operation 

Twist’ (to buy long-dated government bonds and sell short ones)in June 

and in September, implemented a third round of quantitative easing (to 

buy $40bn worth of mortgage-backed securities every month). 

Performance and Policy Review 

Over the year to 30 September 2012, the Fund returned 21.4% in US 

dollar terms compared to 22.9% for its peer group, the FO Equity North 

America, and 29.5% for its benchmark, the S&P 500 index. 

Our overweight stance in cash again detracted from performance. We 

maintained high cash levels of the portfolio throughout the period as we 

remained concerned about ongoing sovereign debt issues in Europe. 

Not holding Apple was also negative for performance as the stock 

continued to rally, although we believe its valuation looks stretched. 

However, stock selection in the consumer services sector contributed 

positively to performance. Our holding in cable TV company Comcast 

made a significant contribution on expectations that its cable business 

would continue to grow strongly. Similarly, eBay outperformed as it 

delivered stellar profit growth and turned around its internet marketplace 

business. Some of our more defensive consumer-related stocks such 

as CVS Caremark and Pfizer also performed well. 

Among our industrial holdings, Tyco International continued to rise, 

helped by the sale of its flow-control unit to Pentair. Water treatment 

technology provider Pall also added value before we sold the stock, 

taking profits following a strong run. 

In terms of transactions, we took advantage of share price weakness to 

add to our holdings in Wells Fargo and Bank of America and to initiate 

a position in SunTrust Banks. Although US banks should benefit from 

any recovery in the housing market, they have lagged other creditsensitive 

stocks due to eurozone concerns. Meanwhile, we sold out of 

our holding in IBM after a strong run following good quarterly results. 

Outlook 

Increasing signs of stability have emerged in the US property market. 

Although the country’s housing market is still depressed, the US is 

rare among developed economies in having population growth, which 

should help absorb excess inventories. While an eventual recovery in 

the housing market should bolster the domestic economy over time, 

the development of shale gas is likely to give impetus to a manufacturing 

renaissance through lower energy costs. 

Europe, however, poses the single greatest risk to investors in US 

equities. The failure of policymakers to address core shortcomings of 

solvency in their financial systems and government accounts has the 

potential to be profoundly destabilising. While the ECB’s plan to buy 

government bonds has calmed equity markets, it is hardly a panacea 

and does nothing to alter the structural deficiencies facing the region. 

Hyperactive central banks have driven rates of return on perceived 

risk-free assets to extremely low levels in their efforts to avoid credit 

impairment in the financial system. This has created a bubble in many 

sovereign bond markets. US Treasuries and UK gilts which were once 

regarded as safe assets are now anything but and in order to protect 

our purchasing power in the long term, we are likely to be better 

served by high quality equities than by Western government bonds. 

Sebastian Radcliffe 


71



■■Jupiter North American Equities Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Equities 

Canada 1,206,253 1.87 

30,878 Research In Motion 220,623 0.34 

61,770 SXR Uranium One 147,656 0.23 

43,747 Yamana Gold 837,974 1.30 

Ireland 753,384 1.17 

12,610 Covidien 728,363 1.19 

Switzerland 2,759,228 4.27 

17,284 Ace 1,305,288 2.02 

25,947 Tyco International 1,453,940 2.25 

United States of America 54,885,987 84.94 

19,347 Abbott Laboratories 1,341,424 2.08 

16,815 Agilent Technologies 648,639 1.00 

7,055 Altria Group 239,059 0.37 

22,837 American Express 1,292,003 2.00 

5,034 Amgen 424,190 0.66 

45,226 Applied Materials 509,923 0.79 

21,248 Avery Dennison 672,818 1.04 

119,576 Bank of America 1,073,195 1.66 

8,401 Baxter International 505,950 0.78 

18,501 Bristol Myers Squibb 626,351 0.97 

7,274 CenturyLink 296,961 0.46 

19,811 Chevron 2,321,255 3.59 

76,117 Cisco Systems 1,430,619 2.21 

34,480 Citigroup 1,136,978 1.76 

8,401 Colgate-Palmolive 901,931 1.40 

56,580 Comcast 2,025,281 3.14 

25,229 Comcast Special Class A 878,095 1.36 

15,335 ConocoPhillips 879,999 1.36 

18,823 Corning 250,440 0.39 

38,694 CVS Caremark 1,867,179 2.89 

33,647 Dish Network ‘A’ 1,042,384 1.61 


72



■■Jupiter North American Equities Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



United States of America continued 

18,702 Ebay 918,736 1.42 

50,018 EMC Mass 1,376,746 2.13 

30,756 Emerson Electric 1,486,899 2.30 

776 Google 586,838 0.91 

11,814 Halliburton 404,452 0.63 

10,199 Hess 548,451 0.85 

24,423 Honeywell International 1,471,486 2.28 

10,921 Itron 469,767 0.73 

31,825 Johnson & Johnson 2,197,039 3.40 

16,815 JP Morgan Chase & Co. 683,950 1.06 

13,124 Kraft Foods 541,037 0.84 

14,887 Krispy Kreme Doughnuts 118,128 0.18 

31,057 Kroger 732,479 1.13 

6,858 Legg Mason 170,353 0.26 

7,503 Level 3 Communications 171,256 0.27 

8,401 Lincoln International 202,800 0.31 

32,873 Medtronic 1,428,825 2.21 

21,078 Merck & Co. 953,463 1.48 

71,141 Microsoft 2,147,747 3.32 

3,599 Monsanto 328,841 0.51 

19,249 Newmont Mining 1,087,954 1.68 

13,644 Occidental Petroleum 1,176,863 1.82 

42,060 Oracle 1,312,903 2.03 

13,448 Pepsico 950,168 1.47 

75,782 Pfizer 1,890,382 2.93 

7,055 Philip Morris International 639,642 0.99 

7,667 Phillips 66 356,784 0.55 

17,910 Procter & Gamble 1,241,253 1.92 


73



■■Jupiter North American Equities Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



United States of America continued 

6,718 Prudential Financial 368,247 0.57 

5,703 Raytheon 328,179 0.51 

30,784 Republic Services 841,173 1.30 

7,120 Schlumberger 521,576 0.81 

51,183 Sprint 286,369 0.44 

19,080 SunTrust Banks 539,487 0.83 

5,595 Time Warner 253,929 0.39 

18,035 Travelers 1,233,684 1.91 

24,677 Walmart Stores 1,825,481 2.83 

11,854 Waters 996,981 1.54 

40,125 Wells Fargo & Co. 1,394,143 2.16 

4,980 Yum Brands 336,822 0.52 


Bonds 

United States of America 702,975 1.09 

630,000 Level 3 Financing 10% 01/02/2018 702,975 1.09 

Total Bonds 702,975 1.09 



60,307,827 93.34 

Other Net Liabilities 4,304,511 6.66 



74



■■Jupiter China Sustainable Growth Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 




Market Review 

For most of the year under review, Chinese equities continued to see 

a two-speed market whereby a small number of large-cap dividend 

paying stocks became increasingly overvalued as investors sought 

protection from slowing earnings growth. Meanwhile, mid and smallcap 

growth stocks fell and are now trading at around their lowest 

valuations in the last 10 years. 

China’s pace of economic growth clearly slowed over the course of the 

period, in response to various policy brakes applied by the authorities to 

curb rising inflation. Having seen small and mid-sized enterprises 

struggle to meet working capital requirements as credit was drained 

from the financial system, the People’s Bank of China began to reverse 

its monetary policy in November 2011. The central bank has reduced 

the amount that it requires banks to hold in reserve, encouraged loan 

origination and cut policy interest rates twice since then. 

While it is tricky to predict when the Chinese economy may reach 

inflection point, evidence suggests that monetary and fiscal stimulus 

measures are producing some effect. In addition, consumer activity 

has remained resilient with retail sales rising by a real rate of 11.4% 

during the first eight months of 2012, compared to 11.3% over the 

same period of 2011. 

Policy Review 

Over the year to 30 September 2012, the Fund returned 16.8% in US 

dollar terms, compared to 8.0% for its peer group, the FO Equity 

China, and 21.4% for its benchmark, the MSCI ZhongHua index. 

The Fund’s performance was adversely affected by investors’ risk 

aversion and flight to the perceived safety of large-cap stocks. Our 

underweight stance in large-caps, especially in the financial sector, 

detracted from performance. In line with our investment strategy, we 

did not hold large Hong Kong property developers such as Cheung 

Kong and Sun Hung Kai and banks including Bank of China which 

outperformed during the period. 

Although our overweight stance in the mid and small-cap sectors was 

detrimental for performance, good stock selection among them offset 

the negative impact of the asset allocation. In particular, some of the 

portfolio’s resources and industrial holdings made strong contributions 

to performance. Environmental protection company China Everbright 

International, gas distributor China Gas, Hollysys Automation 

Technologies, China Oil & Gas, ERA Mining Machinery and railway 

trains maker CSR all added value. Among our technology holdings, 

AAC Technologies, a supplier of acoustic components for smart phones 

and tablet PCs, outperformed on the back of strong earnings results. 

In terms of transactions, we locked in profits in resources and industrial 

shares that had performed strongly. These included China Gas, China 

Oil & Gas, ERA Mining Machinery and CSR. As the year progressed, 

we reduced our underweight stance in the financial sector, acquiring 

selected stocks that we believe will benefit from China’s looser 

monetary policy and stimulus measures. We initiated positions in 

Hang Lung Properties and China Construction Bank. 

Outlook 

The recent results season brought some better news, with profit 

margins delivering positive surprises thanks to falling input prices. 

Against the weak economic backdrop, this trend is expected to 

continue as inflation remains muted. Meanwhile, consensus GDP 

figures continue to fall followed inevitably by cuts in analysts’ earnings 

forecasts. Much of this, however, appears to be already reflected in 

share prices. 

We expect a modest recovery in economic growth over the balance of 

the year. With the manufacturing purchasing managers index showing 

some improvement, we expect to see a pick-up in output in the fourth 

quarter against a continuing backdrop of benign inflation. 

The 18th Party Congress is scheduled to commence on the 8th of 

November after which we will start getting more clarity as to the 

make-up of the next ruling elite and any refining of their policies. 

Coinciding with this important period of leadership change, we expect 

the Chinese authorities to ease their monetary policy further and 

introduce more stimulus measures. We expect the recent polarisation 

of the market in favour of large-cap stocks to reverse sharply when the 

macro backdrop begins to improve. 

Philip Ehrmann 


75



■■Jupiter China Sustainable Growth Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Equities 

China 9,106,933 69.76 

25,000 3SBio ADR 324,250 2.48 

50,000 AAC Technologies Holdings 179,907 1.38 

100,000 Anhui Conch Cement 311,775 2.39 

1,000,000 Beijing Enterprises Water 238,587 1.83 

250,000 China Communications Construction 201,992 1.55 

625,000 China Construction Bank 433,244 3.32 

140,000 China Distance Education Holdings ADR 443,100 3.39 

550,000 China Everbright International 290,108 2.22 

154,000 China Foods 160,077 1.23 

300,200 China Metal Recycling 277,784 2.13 

300,000 China Minsheng Banking 236,394 1.81 

120,000 China Pacific Insurance 362,523 2.78 

250,000 China Taiping Insurance Holding 392,701 3.01 

350,000 China Unicom 571,898 4.38 

170,000 CITIC Securities 'H' 300,361 2.30 

97,900 Concord Medical Services ADR 347,545 2.66 

13,000 Focus Media Holding ADR 303,355 2.32 

35,000 Hollysys Automation Technologies 345,275 2.64 

3,340 Home Inns & Hotels ADR 82,531 0.63 

500,000 Industrial and Commercial Bank of China 295,009 2.26 

500,000 MIE Holdings 122,517 0.94 

1,200,000 O-Net Communications Group 275,471 2.11 

700,000 Shanghai Electric Group 248,259 1.90 

300,000 SOHO China 185,130 1.42 

15,000 Spreadtrum Communications ADR 305,550 2.34 

15,000 Tencent Holdings 512,445 3.92 

550,000 United Laboratories 263,154 2.02 

200,000 Vinda International Holdings 275,729 2.11 

31,836 Vipshop Holdings ADR 237,337 1.82 

1,300,000 West China Cement 228,011 1.75 

400,000 Yingde Gases 354,914 2.72 


76



■■Jupiter China Sustainable Growth Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

US$ 

Fair Value 



% 



Hong Kong 3,717,407 28.48 

40,135 Charm Communications ADR 235,191 1.80 

100,000 China Merchants Holdings 309,195 2.37 

130,000 China Resources Power Holding 284,176 2.18 

65,000 ENN Energy Holdings 273,278 2.09 

400,000 Far East Horizon 245,293 1.88 

600,000 Guotai Junan International 159,015 1.22 


20,000 Hong Kong Exchanges and Clearing 301,909 2.31 

250,000 Kunlun Energy 437,839 3.35 

600,000 Lee & Man Paper Manufacturing 264,251 2.03 

800,000 Sino Biopharmaceutical 294,042 2.25 

378,000 SOCAM Development 360,987 2.77 

600,000 Xinyi Glass 278,566 2.13 




12,824,340 98.24 




77



■■Jupiter Europa* Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 

Class L Euro A Shares EUR 10.53 EUR 9.50 10.84% 

Class L Euro B Shares EUR 10.58 EUR 9.59 10.32% 

Class L Sterling B Shares GBP 10.74 GBP 9.71 10.61% 

Class L US Dollar B Shares USD 10.76 USD 10.00* 7.60% 

* Inception date of 2 November 2011 

Market Review 

In the year under review, the eurozone crisis and slower global growth 

continued to dominate market sentiment. Following expectations that 

Greece could leave the euro, the European Central Bank (ECB) 

stepped in where governments feared to tread and said it would do 

whatever was necessary to keep the currency union together. Markets 

rallied over the period on this and further quantitative easing from the 

US Federal Reserve, the Bank of England and the Bank of Japan. 

Despite this, there were periods of heightened volatility and company 

results were mixed as China continued to slow and growth elsewhere 

such as the US was insufficient to compensate. 

Policy Review 

As of October 2011, the Jupiter Europa Hedge Fund Limited was 

rolled into the Fund, which was subsequently re-named Jupiter 

Europa. The weights and some of the names comprising the Fund’s 

top long holdings shifted accordingly and represent the manager’s 

highest conviction selections. Characteristically, these companies 

offer some combination of earnings quality, compounding growth, 

unique niche positioning, a defensive nature or restructuring potential. 

The Fund began the year with just 20% of the portfolio in long positions. 

This reflected the highly uncertain macroeconomic environment and a 

window of opportunity for individual stock shorts. However, as the year 

progressed, the net position was actively managed in response to the 

frequent changes in the outlook, which contributed to performance. In 

particular, the flexibility and rapid implementation of index option 

strategies meant that adequate protection could be effected without 

forced selling of conviction long positions or over-concentration in 

individual short stock positions. 

On the long side, contributors to the Fund this year included some 

long-held positions and more recent holdings. In the former category 

were: NovoNordisk, Syngenta, Intertek, Azimut and Admiral. The 

single most significant contributor, NovoNordisk, has maintained its 

dominant position in the rapidly growing diabetes care market and has 

a strong pipeline of ever improving products. In the latter category 

were cable operators Ziggo and Kabel Deutschland, residential 

property company TAG Immobilien AG and software company 

Gemalto. In the case of TAG Immobilien, knowledge of the company 

over a long period of time, good communication with management and 

solid sector drivers in Germany led to a successful relative over-weight 

to this smaller-capitalisation investment. 

On the short side, positions established based on our view of their 

domestic markets at the beginning of the year in utilities, 

telecommunications and the industrial and consumer sectors largely 

paid off, though many cyclical shorts ultimately dragged on 

performance in absolute terms. Top short contributors included utilities 

A2A and Iberdrola and telecoms companies Telefonica and Bouygues. 

Several short positions were closed including Nokia, which was taken 

on the basis of an untenable business model. However, some short 

positions such as Electrolux, despite having in our view a weak 

long-term competitive outlook, benefited from significant cyclical 

re-rating over the year. 

The combination of attractive core long positions, shorting opportunities 

and responsive management of net positions is reflected in the 

performance for the year of 10.3% compared to 0.9% for the 

benchmark, the 3-month Euribor. 


Developments in peripheral Europe’s sovereign debt crisis are likely to 

remain the critical factor driving European markets. With the ECB’s 

formal backstop and approval of the rescue Fund by the German 

constitutional court, the building blocks for combating the eurozone 

crisis may have already been laid. However, real risks remain. In 

particular the backlash against austerity is becoming ever more 

strident, possibly limiting further reform efforts and their effectiveness 

especially with regard to national bailouts. 

Despite the current political and technical difficulties faced by all sides 

over the exact terms of bailouts, we expect the next few months to be 

a window of opportunity to resolve the issue. In this event, we also 

anticipate a positive market reaction, possibly sustained by investors 

that have remained on the side-lines so far. Greece’s enormous debt, 

collapsing economy and political instability could reignite fears of euro 

exit, but near-term we expect concessions and trade-offs to maintain 

the unstable status-quo. 

Growth prospects are a concern for equities, which have proved 

resilient overall so far. Given that improvements in credit, sentiment 

and demand will lag our assumed structural improvements, the extent 

to which companies are affected so far could begin to manifest itself in 

the latest company results. 

Stephen Pearson and Michael Buhl-Nielsen 


*As at 18 October 2011, the name of the Fund was changed from Jupiter 

European Absolute Return to Jupiter Europa. 

78



■■Jupiter Europa* Schedule of Investments as at 30 September 2012 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Equities 

Belgium 1,073,709 1.98 

216,430 Nyrstar 1,073,709 1.98 

Denmark 3,845,203 7.10 

17,792 Novo Nordisk ‘B’ 2,194,202 4.05 

35,519 Novozymes 764,572 1.41 

8,369 Ringkjobing Landbobank 886,429 1.64 

France 11,256,621 20.78 

52,386 Bourbon 1,172,923 2.17 

13,002 Dassault Systemes 1,062,328 1.96 

17,001 Gemalto 1,161,678 2.14 

29,596 Maisons France Confort 758,694 1.40 

32,262 Rubis 1,473,567 2.72 

26,756 Schneider Elte 1,270,174 2.34 

74,914 Ses Global FDR 1,574,505 2.91 

38,706 Touax 979,068 1.81 

44,399 Transgene 396,039 0.73 

18,355 Zodiac 1,407,645 2.60 

Germany 10,908,053 20.14 

87,709 Aareal Bank 1,399,397 2.58 

25,542 Adidas Salomon 1,644,522 3.04 

17,578 Bayer 1,193,283 2.20 

26,199 Fraport 1,194,805 2.21 

17,497 Fresenius Medical Care 997,679 1.84 

54,295 GEA Group 1,285,706 2.37 

29,787 Kabel Deutsche Holdings 1,656,604 3.06 

183,640 TAG Immobilien 1,536,057 2.84 

Italy 1,152,344 2.13 

129,078 Azimut Holding 1,152,344 2.13 



79



■■Jupiter Europa* Schedule of Investments as at 30 September 2012 (continued) 

Quantity 

Description 

Fair Value 

€ 

Fair Value 



% 



Luxembourg 1,582,071 2.92 

85,115 IVS Group 831,786 1.54 

10,075 RTL Group 750,285 1.38 


28,952 ASML Holding 1,204,982 2.22 

122,177 Reed Elsevier 1,275,528 2.36 

50,217 Ziggo 1,341,296 2.48 

Norway 2,935,249 5.42 

135,344 DNB Holding 1,294,068 2.39 

74,691 Orkla 445,827 0.82 

30,742 Yara International 1,195,354 2.21 

Portugal 1,200,639 2.22 

96,495 Galp Energia ‘B’ 1,200,639 2.22 

Sweden 2,503,459 4.62 

28,181 Modern Times Group ‘B’ 983,542 1.81 

230,983 SEB ‘A’ shares 1,519,917 2.81 

Switzerland 5,866,839 10.83 

22,695 Actelion 890,732 1.64 

14,782 Dufry Group 1,407,326 2.60 

7,936 Roche Holding 1,160,063 2.14 

6,809 Syngenta 1,994,302 3.68 

36,190 Temenos Group 414,416 0.77 

United Kingdom 698,754 1.29 

820,121 ImmuPharma 698,754 1.29 




46,844,747 86.49 





80



■■Jupiter Strategic Total Return Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 




Class L Swiss Franc Shares CHF 9.89 CHF 9.84 0.51% 

Class I US Dollar Shares USD 10.09 USD 9.93 1.61% 


Class I Sterling Shares GBP 10.16 GBP 9.97 1.91% 

Class I Swiss Franc Shares CHF 10.00 CHF 9.90 1.01% 

Performance Review 

In the period to 30 September 2012, the total return for the euro class 

was 1.20% compared with a return of 0.62% for its benchmark, the 

Euribor 1 month TR index. The Sterling, Swiss franc and US dollar 

classes’ total returns were respectively 1.31%, 0.51% and 1.11% 

compared with their benchmarks. 

Market Review 

In the period under review, markets were caught between opposing 

forces. One the one hand, the chronic inability of eurozone politicians 

to address the financial problems arising from their political 

Frankenstein made life unnecessarily harsher for millions of people. 

Austerity, once regarded as a medicine, became the poison that 

enervated the global economy. To counter this and the other 

contractionary forces arising from the mass deleveraging of 

commercial bank balance sheets, central banks unleashed a nearrolling 

programme of unorthodox monetary policies to manipulate the 

price of financial assets. However, despite renewed attempts by EU 

leaders to formulate a convincing response to the sovereign debt 

crisis such as installing technocratic governments in Greece and Italy, 

investors continued to worry about the impact on global growth. 

Investor sentiment was deeply pessimistic at the start of 2012. There 

were well-founded fears that eurozone banks lacked the wherewithal 

to refinance maturing sovereign debt due to be rolled-over in the 

spring as several member states had lost effective access to bond 

markets. Circumstances soon changed. The European Central Bank 

(ECB)used its Long Term Refinancing Operation (LTRO) to offer 

commercial banks unlimited cheap three-year loans in exchange for 

collateral of varying quality. The yields on Italian and Spanish 

sovereign debt fell sharply as banks repurchased their debt, reducing 

yields and thus the cost of financing deficits. This backdoor 

monetisation was intended to buy time for politicians to agree on 

sensible fiscal policies but it also permitted core banks to divest 

themselves of peripheral debt and repatriate capital. 

The LTRO transformed a solvency crisis into a liquidity-driven rally. 

Equity markets responded positively aided by supportive US economic 

data and indications that China was easing fiscal policy. The UK 

economy remained weak and its budget deficit high. 

On 2 March 2012, all EU member states excepting the UK and the 

Czech Republic, signed the Fiscal Stability Treaty as a step towards 

fiscal union. This required them to run a budget that was either 

balanced or in surplus. Such requirements were likely to intensify preexisting 

recessionary conditions in some member states. Almost 

immediately, the new government in Spain announced it would flout 

these rules. Shortly afterwards it became the fourth country to require 

a bailout when it was forced to nationalise 90% of Bankia, a 

conglomerate of seven regional savings banks. Cyprus became the 

fifth just days before it took over the rotating presidency of the EU. 

A profound change in mood swept across markets over the summer 

after Mario Draghi said the ECB was prepared to do whatever it took 

to preserve the euro. Unlike equities, sovereign bond and currency 

markets continued to react to the intensity of Europe’s problems. An 

internal flight to safety saw yields for the two-year bonds of perceived 

havens (Germany, Austria, Netherlands, Finland and France) turn 

negative whereas debt servicing costs for Spain and Italy remained 

unsustainably high. 

Elsewhere in the world, central banks redoubled their efforts to boost 

growth in the face of a global slowdown. In September, the ECB’s 

commitment to unlimited, direct purchases of sovereign debt (subject 

to conditions) and the US Federal Reserve’s move to open-ended 

Quantitative Easing underpinned further gains in equities. 

Policy Review 

The aim of the Fund is to generate positive long-term returns across 

varying market conditions. In order to help achieve this while 

minimising volatility, we use a wide range of different, offsetting 

strategies to respond to dynamic changes in financial markets. 

In the period under review, the tendency of stock markets to switch 

almost daily between ‘risk on’ and ‘risk off’ modes created much 

turbulence. In order to eschew unwanted volatility we maintained our 

net equity exposure at a very low level, typically around 2.5%, 

preferring to gain equity exposure by holding convertible bonds since 

they also offered significant downside protection. Our cautious position 

in risk assets helped to protect the Fund in 2011 but also allowed it to 

gain ground in early 2012 and again in late summer/early autumn. The 

other reason we maintained a low equity exposure was because we 

had sizable short positions in some government bonds and sovereign 

debt that we considered to be extremely overvalued. There is a 

positive correlation between long equity and short bonds and we 

wished to avoid doubling up. 

81



■■Jupiter Strategic Total Return Review of Portfolio as at 30 September 2012 (continued) 

Policy Review continued 

Central banks have created a world of zero interest rates and then 

indulged in massive purchases of government bonds. By the summer 

of 2012, the Bank of England owned about half of the free float of UK 

gilts with a maturity over three years. Most gilts offered negative real 

returns. We were short as the downside risks dominated, while the 

upside depended on prospects for further quantitative easing, to which 

there is a natural limit. We were also short in some eurozone sovereign 

debt, although this was costly to performance for much longer than we 

expected as we underestimated the positive impact of the LTRO. 

Besides lowering interest rates, central bank asset purchases are 

intended to nudge investors into risk assets by inducing a rebalancing 

of portfolios. Often, they chose risk assets that lay outside of the home 

country of the central bank. Like a shoal of fish that suddenly switches 

direction, this global capital moved from ‘safe’ havens to risk assets 

and back causing sizable price distortions which themselves had 

knock-on effects. 

For example, capital flows into Switzerland pushed the franc to levels 

that hurt its exporters and threatened to push the country into 

recession. Switzerland’s move to peg its currency against the euro led 

the Swiss National Bank to sell francs and buy German, Dutch, 

French, Finnish and Australian bonds. 

Zero interest rates also influenced the carry trade. Once it was the yen 

that was borrowed to fund higher yielding assets. Zero interest rates 

have widened the number of currencies to borrow against while 

reducing the number with attractive yields. 

Australia, whose dollar yielded 4.25% at the start of 2012, has been a 

prime target for the carry trade with some 80% of the government 

bond market being owned by foreigners. We believed that this together 

with tight monetary policy had driven the currency to over valuation. In 

our view, the consensus expectations for strong growth in demand for 

the country’s natural resources was overly optimistic given the decline 

in China’s demand for raw materials. Thus, we positioned the Fund to 

be long Australian bonds (where we expected a rate cut) and short the 

Australian dollar. Even a board member of the Reserve Bank of 

Australia said ‘there’s too much froth in the Australian currency’. We 

later took profits from our long position in the bonds after they reached 

our target. The Fund also gained from its dollar short (the RBA cut 

rates to 3.75% in April) and, although the carry trade continues, we 

have maintained the short. 

Confidence matters. Whether or not a country can maintain access to 

the bond markets in order to roll-over its debts depends on how 

confident bond markets are that a county is willing and able to pay its 

debts with a currency that has a value that can be maintained. In the 

US, signs of moderate economic growth together with signs of 

stabilisation in the housing market led us to be long of the dollar. 

In Japan, the trade balance moved into deficit for the first time in three 

decades. This indication of the economy’s fragility had led us to be 

short of the yen in anticipation of it weakening. Many have been 

bearish on the yen for a long time, indeed Japan has been in a 

deflationary spiral for some twenty years. A weaker yen is one remedy. 

We have no crystal ball but take the view that overvalued situations 

eventually correct. The Bank of Japan continued with quantitative 

easing and in February was explicit in setting a goal of 1% inflation at 

a time when the current inflation rate was -0.1%. 

Identifying overvalued situations where fundamentals are likely to 

deteriorate is not difficult. However what adds uncertainty is the extreme 

short-term nature of global capital flows. In South Africa, we were short 

of the rand (against the Mexican peso, where terms of trade and exports 

are improving) because the labour and political situation continued to 

deteriorate, thus weakening the fundamentals for the economy. This 

position has not yet yielded results because, as an emerging market, 

the country received periodic inflows of global capital such that the rand 

can rally strongly during ‘risk on’ periods. In addition, passive inflows 

intensified after the South African bond market was included in the 

World Government Bond Index in autumn 2012. 

The launch of future contract in French OAT bonds provided us with 

an opportunity to open a short position as we anticipated deterioration 

in that market as the debt crisis continued to claim larger scalps. In our 

view, the yield gap between French OATs and German bunds was too 

narrow, making the former vulnerable because of fundamental 

weaknesses in France’s economic fabric. 


In the face of a global economic slowdown and debt deleveraging, 

central banks around the world have redoubled their efforts to boost 

growth. However, it is of concern that they have begun to make a 

habit out of the unconventional monetary policy that was once 

considered a necessity. 

Without private demand for loans, the massive amount of liquidity 

created by central banks stays mainly within the financial system 

pushing the yields on bonds down and the price/earnings ratios on 

shares up. Asset prices then fluctuate according to news flow rather 

than reacting to fundamentals. 

Zero interest rate regimes may even be a trap, i.e. hard to get out of. 

When private demand for loans eventually returns and the money 

supply balloons, central banks will have to mop up excess liquidity fast 

to contain inflation. However, aggressive tightening risks jeopardising 

a nascent recovery, whereas any delay could raise inflation 

expectations and send bond yields sharply higher. Either way a major 

ordeal awaits bond markets. 

Mindful of this, the Fund’s largest active exposures are short positions 

in sovereign bonds, reflecting their extreme overvaluation. It is also 

positioned to take advantage of certain distortions in currency 

valuations and to maintain some exposure to equity markets through 

convertibles as central banks appear intent on keeping the show on 

the road. 

Miles Geldard and Lee Manzi 


82



■■Jupiter Strategic Total Return Schedule of Investments as at 30 September 2012 

Quantity/ 

Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



Equities 

Channel Islands 589,964 0.62 

4,700 ETFS Physical Platinum 589,964 0.62 

Germany 229,800 0.24 

15,000 Deutsche Post 229,800 0.24 

Japan 1,563,212 1.63 

5,600 East Japan Railway 288,621 0.30 

220 Fuji Media Holdings 280,287 0.29 

15,900 Kao 364,565 0.38 

50,000 Sekisui Chemical 313,524 0.33 

13,000 Sumitomo Mitsui Financial 316,215 0.33 

United Kingdom 298,317 0.31 

73,000 BAE Systems 298,317 0.31 


Bonds 

Belgium 188,913 0.20 

250,000 Sofina 1% 19/09/2016 188,913 0.20 

British Virgin Islands 806,324 0.84 

6,500,000 Power Regal Group 2.25% 02/06/2014 806,324 0.84 

Denmark 1,175,569 1.23 

900,000 Danske Bank 4% 09/12/2015 1,175,569 1.23 

Finland 2,074,248 2.16 

1,100,000 Solidium Oy 0.5% 29/09/2015 1,151,480 1.20 

700,000 UPM-Kymmene 6.625% 23/01/2017 922,768 0.96 

France 5,466,334 5.71 

1,100,000 Carrefour 3.625% 06/05/2013 1,119,305 1.17 

1,100,000 Electricite De France 4.625% 06/11/2013 1,147,691 1.20 

7,500 Faurecia 3.25% 01/01/2018 139,913 0.15 

50,000 Maurel et Prom 7.125% 31/07/2014 901,250 0.94 

1,000,000 Sanofi-Aventis 3.5% 17/05/2013 1,019,450 1.06 

1,100,000 Vivendi 4.5% 03/10/2013 1,138,725 1.19 


83



■■Jupiter Strategic Total Return Schedule of Investments as at 30 September 2012 (continued) 

Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



Germany 20,517,738 21.41 

6,500,000 Bundesrepublik Deutschland 4.25% 04/07/2014 6,983,675 7.29 

6,000,000 Bundesobligation 2.5% 10/10/2014 6,300,171 6.57 

6,000,000 Bundesschatzanweisungen 1.75% 14/06/2013 6,074,442 6.34 

1,000,000 Nordenia Holdings 9.75% 15/07/2017 1,159,450 1.21 

Japan 2,005,028 2.09 

60,000,000 Aeon Credit Services 0% 23/03/2016 732,042 0.76 

30,000,000 Aeon Credit Services 0% 23/03/2017 371,593 0.39 

80,000,000 KDDI 0% 14/12/2015 901,393 0.94 

Malaysia 1,099,237 1.15 

1,500,000 Pulai Capital 0% 22/03/2019 1,099,237 1.15 

Norway 2,570,370 2.68 

1,606,000 Eksportfinans 5.5% 26/06/2017 1,271,554 1.33 

1,600,000 Seadrill 6.5% 05/10/2015 1,298,816 1.35 


1,300,000 ABN Amro 1.891% FRN 07/10/2013 1,314,430 1.37 

1,000,000 BAT Holdings 4.375% 15/09/2014 1,070,006 1.12 

1,100,000 ENBW Energie 6% 20/11/2013 1,164,668 1.22 

1,300,000 Heineken 5% 04/11/2013 1,360,775 1.42 

1,000,000 ING Bank 3.375% 03/03/2015 1,048,861 1.09 

1,400,000 ING Bank 1.775% FRN 18/10/2013 1,091,237 1.14 

1,200,000 Lukoil 2.625% 16/06/2015 1,028,440 1.07 

1,100,000 RWE Finance 6.125% 26/10/2012 1,104,180 1.15 

1,000,000 Siemens Financieringsmat 1.05% 16/08/2017 784,130 0.82 

1,000,000 Siemens Financieringsmat 1.65% 16/08/2019 783,511 0.82 

1,000,000 Unilever 4.875% 21/05/2013 1,028,550 1.07 

Singapore 1,558,664 1.63 

2,500,000 Temasek Financial 0% 14/12/2013 1,558,664 1.63 

Sweden 1,183,954 1.24 

1,100,000 Skandinaviska Enskilda Banken 5.5% 06/05/2014 1,183,954 1.24 


84



■■Jupiter Strategic Total Return Schedule of Investments as at 30 September 2012 (continued) 

Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 




750,000 Bank of Scotland 9.375% 15/05/2021 1,100,605 1.15 


1,100,000 BG Energy Capital 3.375% 15/07/2013 1,124,145 1.17 

850,000 Cooperative Bank 4.75% 11/11/2021 1,230,985 1.29 

1,100,000 GlaxoSmithKline 5.125% 13/12/2012 1,110,670 1.16 

1,100,000 Henderson Group 7.25% 24/03/2016 1,466,740 1.53 

800,000 HSBC 6.375% Variable 18/10/2022 1,081,387 1.13 

1,100,000 Imperial Tobacco 4.375% 22/11/2013 1,144,300 1.20 

2,100,000 Man Group 2.023% FRN 22/09/2015 1,332,549 1.39 

1,000,000 Royal Bank of Scotland 5.25% 15/05/2013 1,028,050 1.07 

850,000 Sainsbury's 4.25% 16/07/2014 1,251,692 1.31 

1,000,000 Standard Chartered Bank 5.875% 26/09/2017 1,104,902 1.15 

1,100,000 Thames Water Utilities 3.25% 09/11/2016 1,189,430 1.24 

500,000 TUI Travel 6% 05/10/2014 637,600 0.67 

1,000,000 William Hill 7.125% 11/11/2016 1,384,082 1.44 

United States 9,991,771 10.43 

1,100,000 Citigroup 4.75% Variable 31/05/2017 961,125 1.00 

1,300,000 Citigroup 0.416% FRN 05/03/2014 1,286,740 1.34 

1,000,000 Goldman Sachs 3.75% 04/02/2013 1,010,250 1.05 

1,200,000 Goldman Sachs 0.668% FRN 23/05/2016 1,129,500 1.18 

1,300,000 HSBC Finance 0.9% FRN 05/04/2013 1,299,480 1.36 

800,000 JP Morgan Chase 6.125% Variable 30/05/2017 913,508 0.95 

800,000 JP Morgan Chase 0.475% FRN 26/09/2013 800,880 0.84 

1,000,000 Merrill Lynch 0.908% FRN 22/07/2014 984,700 1.03 

1,100,000 Procter & Gamble 3.375% 07/12/2012 1,106,435 1.16 

11,500 United Technologies 7.5% Pref 01/08/2015 499,153 0.52 

Total Bonds 77,393,910 80.78 



80,075,203 83.58 




85



■■Jupiter Global Convertibles Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 30.09.11 % Change 









Market Review 

Global markets experienced wide swings in performance under the 

influence of weakening growth forecasts and rising risk aversion as 

the eurozone debt crisis intensified. Despite stronger economic 

growth, emerging markets were not immune from events in developed 

countries, because of both the potential fallout through global trade 

links, and the impact of the worsening crisis on investor sentiment. 

Following the sharp falls experienced in the summer of 2011 

precipitated by the downgrade by S&P of US debt, unconvincing 

proposals to deal with the eurozone sovereign debt crisis and a 

general deterioration of economic statistics, notably in global 

manufacturing, markets struggled to gain positive momentum for the 

remainder of the year in the absence of a coherent political response 

in Europe. 

Equity markets were strong in January and February as defensivelypositioned 

investors responded in Pavlovian fashion to the European 

Central Bank’s (ECB) long-term refinancing operation. The willingness 

to lend unlimited three-year money to eurozone banks at 1% averted 

an imminent banking collapse and helped to strengthen balance 

sheets. It also provided a politically acceptable way for the imminently 

maturing government debts of Italy, Spain and others to be rolled over 

at interest rates that would not further destabilise sovereign debt 

markets. 

Equities consolidated in March as sovereign debt concerns resurfaced. 

Spanish government bond yields rose sharply. Weak economic data 

from China rekindled concerns about a sharp slowdown in the world’s 

second largest economy. Markets fell sharply in May, erasing gains for 

the year after an inconclusive election in Greece favoured anti-bailout 

parties. However, the result of Greece’s second election proved to be 

a sideshow as Spain became the fourth member of the eurozone to 

ask for a bailout, swiftly followed by Cyprus. 

A profound change in mood swept across markets over the summer 

after Mario Draghi said the ECB was prepared to do whatever it took 

to preserve the euro. Unlike equities, sovereign bond and currency 

markets continued to react to the intensity of Europe’s problems. An 

internal flight to safety saw yields for the two-year bonds of perceived 

havens turn negative whereas debt servicing costs for Spain and Italy 

remained unsustainably high. 

Elsewhere in the world, central banks redoubled their efforts to boost 

growth in the face of a global slowdown. In September, the ECB’s 

commitment to unlimited, direct purchases of sovereign debt, subject 

to conditions, and the US Federal Reserve’s move to open-ended 

Quantitative Easing underpinned further gains in equities. 

Policy Review 

For much of the period under review we kept the delta (or share price 

sensitivity) 1 of the portfolio toward the lower to neutral end of our 

range, in line with our cautious top-down view driven by the ongoing 

eurozone debt crisis and global growth concerns. The technical 

valuation of convertibles rose from their lows in November 2011 to 

reach fair value by April 2012. The Fund remained well diversified, 

holding approximately 90 securities. Within this we had a bias to hold 

defensive and higher credit quality names. 

Our biggest regional exposures have been in Asia followed by the US; 

these areas accounted for 35%-40% and 22%-24% of the Fund’s 

regional exposure respectively. In particular, we favouredconvertibles 

in Asia ex-Japan, where economies have a more robust fiscal and 

debt position than Europe and North America as well as inherently 

greater growth potential. That said, in December 2011 we first noticed 

indications that the American housing market might be stabilizing and 

took the view that, if sustained, this should lead to wider improvements 

given that personal consumption is a major component of the US 

economy. In our view, concerns about the ‘fiscal cliff’ are overdone 

and, although the labour market is worryingly weak, unemployment 

tends to be a lagging indicator when economies are recovering. 

Set against this, the fragile and often chaotic position in the eurozone 

warranted caution. There were several short-covering rallies largely 

driven by the pronouncements of politicians, but firm action eluded 

them. Equities remained volatile. 

Faced with this, we remained defensively positioned. Our normal 

range for the delta of the Fund is 30%-50%. During the end of 2011 

and the early New Year when liquidity was poor, we kept about 5% of 

the Fund in cash and maintained the delta towards the lower end of 

our range while accumulating securities selectively. As 2012 

progressed, and following the LTRO, we gradually increased the delta 

toward the high-30s and ended the period under review with a 

midrange delta of 40%. This reflected our constructive view towards 

convertibles alongside a cautious approach to macroeconomic risk. 

1 

Note: Delta is the measure of the sensitivity of the convertible price to the 

underlying share price 

86



■■Jupiter Global Convertibles Review of Portfolio as at 30 September 2012 (continued) 

Policy Review continued 

Within this, our major delta exposure was in the US, where there was 

material upside potential and economic prospects appeared more 

robust. The delta of our Asian convertibles was lower although the 

region remained a core exposure for the Fund. 


Grave concerns about stagnation of the US labour market led the 

Federal Reserve, America’s central bank, to take extraordinary 

measures. These aimed to reduce borrowing costs for businesses, 

support mortgage markets and help to make broader financial conditions 

more accommodative. In particular, the Federal Reserve committed to 

continuing with these policies until there was a substantial improvement 

in the labour market. 

By indicating that interest rates would be kept at their current ultra-low 

level until at least mid-2015, the Fed’s actions are likely to keep a lid on 

short-term bond yields, thus increasing the pressure on investors to 

move out of low-risk assets and into the stock market. All things being 

equal, this should provide a supportive background for financial assets 

in the final quarter of 2012. 

But things are rarely equal. For example, the European Central Bank 

lacks the freedom enjoyed by central banks in the US, UK and Japan, 

while electorates in Greece, Portugal, Spain and elsewhere are showing 

increasing signs that there are limits to how much austerity they will 

endure. At issue is how society will resolve the build-up of debts that 

cannot be repaid. Nevertheless, central banks appear intent on keeping 

the show on the road. Maintaining some exposure to equity markets 

through convertibles therefore seems prudent. 

Miles Geldard and Lee Manzi 


87



■■Jupiter Global Convertibles Schedule of Investments as at 30 September 2012 

Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



Bonds 

Australia 4,867,771 0.64 

2,000,000 Western Areas 6.375% 02/07/2014 1,600,377 0.21 

4,000,000 Western Areas 6.4% 02/07/2015 3,267,394 0.43 

Belgium 19,186,400 2.51 

10,300,000 Groupe Bruxelles Lambert 0.125% 21/09/2015 10,118,565 1.32 

12,000,000 Sofina 1% 19/09/2016 9,067,835 1.19 

Bermuda 14,569,338 1.90 

89,000 Bunge 4.875% Pref Perpetual 6,745,111 0.88 

70,000,000 Rexlot Holdings 6% 28/09/2016 7,824,227 1.02 

British Virgin Islands 40,678,723 5.31 

15,300,000 Billion Express 0.75% 18/10/2015 12,668,503 1.66 

54,000,000 Bright North 1.25% 13/04/2016 6,142,265 0.80 

10,800,000 PB Issuer 1.75% 12/04/2016 8,073,298 1.05 

4,000,000 PB Issuer 1.875% 22/10/2018 3,095,352 0.40 

86,250,000 Power Regal Group 2.25% 02/06/2014 10,699,305 1.40 

Cayman Islands 12,888,461 1.68 

1,270,000,000 Zeus Cayman 0% 18/08/2016 12,888,461 1.68 


7,100,000 Derwent London 2.5% 15/07/2016 9,740,249 1.27 

3,500,000 WPP 5.75% 19/05/2014 6,533,310 0.86 

China 4,684,556 0.61 

40,000,000 China Petroleum & Chemical 0% 24/04/2014 4,684,556 0.61 

Cyprus 6,991,008 0.91 

9,000,000 Holdgrove 1% 24/09/2017 6,991,008 0.91 

Finland 13,503,720 1.76 

12,900,000 Solidium Oy 0.5% 29/09/2015 13,503,720 1.76 


88



■■Jupiter Global Convertibles Schedule of Investments as at 30 September 2012 (continued) 

Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



France 80,409,356 10.50 

143,000 Atos 2.5% 01/01/2016 8,599,305 1.12 

140,010 Cap Gemini 3.5% 01/01/2014 5,538,796 0.72 

261,000 Eurazeo 6.25% 10/06/2014 14,300,190 1.87 

285,350 Faurecia 3.25% 01/01/2018 5,323,204 0.70 

107,000 Fonciere des Regions 3.34% 01/01/2017 9,222,592 1.21 

490,000 Maurel et Prom 7.125% 31/07/2014 8,832,250 1.15 

59,000 Misarte 3.25% 01/01/2016 9,142,072 1.19 

55,000 Nexans 4% 01/01/2016 3,077,021 0.40 

41,000 Technip 0.25% 01/01/2017 4,503,104 0.59 

41,500 Technip 0.5% 01/01/2016 4,139,268 0.54 

142,000 TEM 4.25% 01/01/2015 7,731,554 1.01 

Germany 30,134,685 3.94 

8,600,000 Adidas 0.25% 14/06/2019 9,578,250 1.25 

12,900,000 KFW 1.5% 30/07/2014 15,423,885 2.02 

5,000,000 KFW 3.25% 27/06/2013 5,132,550 0.67 

Hong Kong 10,467,708 1.37 

13,500,000 Hong Kong Exchanges and Clearing 0.5% 23/10/2017 10,467,708 1.37 

India 5,738,542 0.75 

7,400,000 Tata Steel 4.5% 21/11/2014 5,738,542 0.75 

Isle of Man 11,799,013 1.54 

14,200,000 AngloGold Holdings 3.5% 22/05/2014 11,799,013 1.54 

Japan 108,340,232 14.15 

700,000,000 Aeon 0.3% 22/11/2013 7,416,852 0.97 

840,000,000 Aeon Credit Services 0% 23/03/2016 10,248,591 1.34 

170,000,000 Aeon Credit Services 0% 23/03/2017 2,105,692 0.27 

600,000,000 Asahi Group Holdings 0% 26/05/2023 6,035,204 0.79 

350,000,000 Bank of Kyoto 0% 31/03/2014 3,449,009 0.45 

900,000,000 Fukuyama Transporting 0% 22/03/2017 9,196,360 1.20 

670,000,000 IHI 0% 29/03/2016 6,670,850 0.87 

1,050,000,000 KDDI 0% 14/12/2015 11,830,780 1.54 

810,000,000 Matsumotokiyo 0% 23/08/2013 8,817,739 1.15 

300,000,000 Nichias 0% 02/08/2017 3,075,173 0.40 


89




Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



Japan continued 

420,000,000 OSG 0% 04/04/2022 4,312,067 0.56 

325,000,000 Sato Holdings 0% 13/04/2017 3,306,717 0.43 

620,000,000 Sawai Pharmaceutical 0% 17/09/2015 6,953,345 0.91 

960,000,000 Sekisui House 0% 05/07/2016 9,927,164 1.30 

375,000,000 Senko 0% 20/07/2017 3,793,498 0.50 

680,000,000 Unicharm 0% 24/09/2015 8,100,772 1.06 

310,000,000 Yamato Holdings 0% 07/03/2016 3,100,419 0.41 

Malaysia 15,368,231 2.01 

9,250,000 Pulai Capital 0% 22/03/2019 6,778,628 0.89 

10,000,000 YTL Corp Finance (Labuan) 1.875% 18/03/2015 8,589,603 1.12 


8,900,000 Celesio Finance 2.5% 07/04/2018 8,770,950 1.14 

19,800,000 Lukoil 2.625% 16/06/2015 16,969,262 2.22 

15,500,000 Siemens Financieringsmat 1.05% 16/08/2017 12,154,017 1.59 

6,000,000 Siemens Financieringsmat 1.65% 16/08/2019 4,701,066 0.61 

5,900,000 Wereldhave 2.875% 18/11/2015 5,752,854 0.75 

Singapore 43,931,431 5.73 

15,000,000 Capitaland 2.875% 03/09/2016 9,590,992 1.25 

17,500,000 Ruby Assets 1.6% 01/02/2017 12,409,761 1.62 



Sweden 11,302,390 1.48 

11,000,000 Industrivarden 1.875% 27/02/2017 11,302,390 1.48 

Switzerland 8,605,363 1.12 

10,000,000 Swiss Prime Site 1.875% 21/06/2016 8,605,363 1.12 

Taiwan 30,657,676 4.00 

14,400,000 Cathay Financial Holding 0% 14/08/2014 11,772,863 1.54 

11,200,000 Hon Hai Precision 0% 12/10/2013 9,072,168 1.18 

12,400,000 Wistron 0% 19/01/2015 9,812,645 1.28 

Thailand 7,656,944 1.00 

282,000,000 BTS Group Holdings 1% 25/01/2016 7,656,944 1.00 


90




Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



United Arab Emirates 10,394,800 1.36 

10,400,000 Aabar Investments 4% 27/05/2016 10,394,800 1.36 


5,200,000 Man Group 2.023% FRN 22/09/2015 3,299,646 0.43 

4,200,000 Pennon Group 4.625% 20/08/2014 7,020,085 0.92 

5,900,000 Sainsbury 4.25% 16/07/2014 8,688,216 1.13 

3,400,000 Shire Pharmaceuticals 2.75% 09/05/2014 2,930,331 0.38 

6,100,000 Tui Travel 6% 05/10/2014 7,778,721 1.02 

United States 151,545,784 19.79 

13,000,000 Amgen 0.375% 01/02/2013 11,227,648 1.47 

9,400,000 Archer 0.875% 15/02/2014 7,297,355 0.95 

6,000,000 D.R. Horton 2% 15/05/2014 7,713,928 1.01 

6,000,000 Gilead Sciences 1% 01/05/2014 7,036,510 0.92 

10,500,000 Health Care 3% 01/12/2029 9,687,592 1.26 

7,000,000 Intel 2.95% 15/12/2035 5,954,816 0.78 

3,600,000 Intel 3.25% 01/08/2039 3,475,446 0.45 

4,800,000 Janus Capital 3.25% 15/07/2014 3,948,431 0.52 

5,500,000 Jarden 1.875% 15/09/2018 4,381,133 0.57 

6,800,000 Lam Research 1.25% 15/05/2018 5,130,546 0.67 

25,200,000 Microsoft 0% 15/06/2013 20,488,626 2.68 

13,500,000 Molson Coors Brewing 2.5% 30/07/2013 10,819,452 1.41 

11,000,000 NetApp 1.75% 01/06/2013 9,792,669 1.28 

135,000 PPL 8.75% 01/05/2014 5,686,201 0.74 

5,500,000 Ryland Group 1.625% 15/05/2018 5,176,706 0.68 

9,300,000 SanDisk 1.5% 15/08/2017 8,138,526 1.06 

10,300,000 Symantec 1% 15/06/2013 8,709,719 1.14 

11,000,000 Toll Brothers Finance 0.5% 15/09/2032 8,677,015 1.13 

189,000 Unitech 7.5% Pref 01/08/2015 8,203,465 1.07 


91




Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



Total Bonds 738,060,839 96.38 

Warrants 

United States 390,561 0.05 

100,000 Bank of America Warrants 16/01/2019 273,552 0.04 

151,966 Owens Corning Warrants 31/10/2013 117,009 0.01 

Total Warrants 390,561 0.05 



738,451,400 96.43 




92



■■Jupiter Dynamic Bond Review of Portfolio as at 30 September 2012 

Performance 

NAV 30.09.12 

Date of 

Inception* 

% Change 









* Inception date of 8 May 2012 

Market Review 

Shortly after the Fund was launched in May 2012, the Monetary Policy 

Committee voted to keep UK interest rates on hold at 0.5%, where 

they have now been for the past three years. The Bank of England 

commenced a further round of quantitative easing, despite already 

having repurchased approximately a third of the gilt market. Markets 

responded positively in June to the agreement reached by eurozone 

nations to offer support to the Spanish banking sector. Spain’s woes 

continued into July as yields on its government bonds rose to 

seemingly unsustainable levels. Commitment from European Central 

Bank (ECB) chief Mario Draghi to ‘do whatever it takes’ to preserve 

the Euro temporarily assuaged investor concerns and bond market 

performance improved in July. By August, it had become clear that a 

further monetary policy response was likely in both the United States 

and Europe, and trading volumes were thin as investors awaited the 

inevitable. Sure enough, at the start of September, Mario Draghi 

unveiled a European sovereign bond-buying programme called 

‘Outright Monetary Transactions’ and the US Federal Reserve 

announced a third and open-ended round of quantitative easing. 

Policy Review 

The Fund was launched on 8 May 2012. The Fund was only invested 

up to 70% for its first full month of trading and this contributed to 

outperformance in June. Corporate bond exposure was limited to 

defensive areas and financial holdings only comprised approximately 

8% of the Fund. Australian government bonds initially comprised a 

significant position but have been steadily reduced in the period under 

review as risk has been added. This is on the view that policy 

developments in Europe and the US have been positive for markets in 

general. Recently, we have been buying financials, adding to UK 

banks like Lloyds and RBS. Their outstanding paper is diminishing as 

they continue to announce buybacks and we think there are ongoing 

buybacks in the pipeline that will typically execute at a decent premium 

to where they are trading in the secondary market. We are avoiding 

peripheral European banks but still getting decent returns from core 

European banks. Although a lot of returns have been booked from US 

financials, we still think they are pretty attractive versus the general 

investment grade market so banks like Goldman Sachs, Citigroup and 

Bank of America are core holdings for the Fund. 


Our outlook for the remainder of the year is quite positive. The 

introduction of a third round of Quantitative Easing (QE3) illustrates 

the Federal Reserve’s determination to support markets. In our view, 

there is currently a sustainable recovery taking place in the US. Higher 

risk assets will benefit from a deluge of liquidity that the market has yet 

to register fully, despite the rally since QE3 was announced. 

However, despite the fact that Europe appears to be coming to terms 

with the need to unite behind its debts and the commitment by the 

chairman of the ECB to do ‘whatever it takes’ to stave off disaster, it is 

hard to foresee meaningful economic growth in the near term. 

Macroeconomic data remains poor and if fundamentals fail to improve 

as we head into 2013, we will have to take a more cautious stance and 

de-risk the portfolio. China continues to be a key uncertainty, with a slew 

of mixed reports muddying the waters as to how the slowdown there is 

unfolding. In addition, as we get closer to the end of 2012, markets are 

becoming jittery about the US fiscal cliff. Commentators currently 

forecast a potential impact of 4% to US GDP but it is our understanding 

that there is a great deal of work going on behind the scenes to mitigate 

this to more like 1%. Ultimately, we believe that there is a political 

solution to the problem. Although the current environment has led to 

traditional ‘safe-haven’ assets such as UK government bonds and 

German bunds trading on very low yields, we believe that there are still 

plenty of attractive fixed interest investment opportunities available. 

However, we expect default rates, especially in Europe, to edge slowly 

higher, therefore it is crucial to be highly selective. 

Ariel Bezalel 


93



■■Jupiter Dynamic Bond Schedule of Investments as at 30 September 2012 

Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



Bonds 

Australia 16,872,542 8.82 

15,500,000 Australia 4.75% 21/04/2027 14,595,187 7.63 

615,000 BHP Billiton Finance 4.3% 25/09/2042 764,598 0.40 

1,950,000 Drill Rigs Holdings 6.5% 01/10/2017 1,512,757 0.79 

Austria 166,375 0.09 

200,000 Sappi Papier 8.375% 15/06/2019 166,375 0.09 

Bermuda 7,101,068 3.71 

1,050,000 Central European Media Enterprises 11.625% 15/09/2016 1,105,440 0.58 

2,000,000 Chloe Marine 12% 28/12/2016 1,681,547 0.88 

730,000 Fidelity International 7.125% 13/02/2024 1,007,616 0.52 

2,500,000 Golden Close Maritime 11% 09/12/2015 2,088,825 1.09 

1,500,000 Seadrill 6.5% 05/10/2015 1,217,640 0.64 

Canada 527,487 0.28 

500,000 Bombardier 6.215% 15/05/2021 527,487 0.28 

Cayman Islands 4,895,629 2.56 

1,000,000 Castle Holdco 10% 08/05/2018 1,278,019 0.67 

1,000,000 Petrobras International Finance 5.875% 07/03/2022 1,146,250 0.60 

1,800,000 RDS Ultra-Deepwater 11.875% 15/03/2017 (B3SLJ97) 1,561,297 0.82 

1,050,000 RDS Ultra-Deepwater 11.875% 15/03/2017 (B50Y3S5) 910,063 0.47 

Croatia 1,082,750 0.57 

1,000,000 Agrokor 10% 07/12/2016 1,082,750 0.57 

Czech Republic 326,625 0.17 

300,000 CET 21 Spol 9% 01/11/2017 326,625 0.17 

Denmark 3,054,170 1.60 

1,500,000 TDC 5.625% 23/02/2023 2,245,509 1.18 

1,000,000 Welltec 8% 01/02/2019 808,661 0.42 

Finland 1,668,891 0.87 

1,266,000 UPM-Kymmene 6.625% 23/01/2017 1,668,891 0.87 


94



■■Jupiter Dynamic Bond Schedule of Investments as at 30 September 2012 (continued) 

Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



France 1,619,933 0.85 

2,000,000 PagesJaunes Finance 8.875% 01/06/2018 1,619,933 0.85 

Germany 9,807,474 5.13 

700,000 Commerzbank 7.75% 16/03/2021 672,063 0.35 

1,486,000 HSH Nordbank 4.375% Variable 14/02/2017 1,021,848 0.53 

203,000 HSH Nordbank 1.153% FRN 14/02/2017 139,268 0.07 

1,200,000 IKB Deutsche Industriebank 1.195% FRN 28/05/2013 1,110,900 0.58 

2,250,000 Kabel Deutschland Holding 6.5% 31/07/2017 2,401,551 1.26 

1,167,000 Kabel Deutschland Vertrieb und Service 6.5% 29/06/2018 1,245,189 0.65 

500,000 KP Germany 11.625% 15/07/2017 526,250 0.28 

1,000,000 Nordenia Holdings 9.75% 15/07/2017 1,159,450 0.61 

200,000 Techem 6.125% 01/10/2019 207,280 0.11 

200,000 Techem Energy Metering Service 7.875% 01/10/2020 209,500 0.11 

500,000 Unitymedia Hessen 7.5% 15/03/2019 550,000 0.29 

500,000 Unitymedia KabelBW 9.5% 15/03/2021 564,175 0.29 

Ireland 5,951,767 3.11 

1,000,000 Ardagh Glass Finance 8.75% 01/02/2020 1,004,167 0.52 

700,000 Ardagh Packaging Finance 7.375% 15/10/2017 (B4NJW94) 744,800 0.39 

900,000 Ardagh Packaging Finance 7.375% 15/10/2017 (B8L4HJ4) 950,085 0.50 

700,000 Ardagh Packaging Finance 9.25% 15/10/2020 719,985 0.38 

2,200,000 Depfa Bank 0.952% Variable 15/12/2015 1,617,880 0.84 

1,000,000 Nara Cable Funding 8.875% 01/12/2018 914,850 0.48 

Isle of Man 2,326,566 1.22 

2,800,000 AngloGold Holdings 3.5% 22/05/2014 Convertible 2,326,566 1.22 

Luxembourg 12,263,410 6.41 

850,000 ARD Finance 11.125% 01/06/2018 855,907 0.45 

464,000 Cabot Financial Luxembourg 10.375% 01/10/2019 586,431 0.31 

800,000 Cirsa Funding Luxembourg 8.75% 15/05/2018 758,840 0.40 

1,000,000 Codere Finance 8.25% 15/06/2015 874,600 0.46 

600,000 FMC Finance VIII 6.5% 15/09/2018 691,320 0.36 

750,000 Lecta 8.875% 15/05/2019 746,250 0.39 


95




Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



Luxembourg continued 

950,000 Mark IV Europe 8.75% 15/12/2017 906,300 0.47 

400,000 Matterhorn Midco 7.75% 15/02/2020 398,500 0.21 

3,700,000 Pacific Drilling 8.25% 23/02/2015 2,925,533 1.53 

750,000 Spie BondCo 3 11% 15/08/2019 791,775 0.41 

750,000 Sunrise Communications International 8.5% 31/12/2018 813,525 0.42 

150,000 Sunrise Communications International 5.625% 31/12/2017 128,211 0.07 

100,000 Sunrise Communications International 7% 31/12/2017 106,995 0.05 

400,000 Telenet Finance V 6.25% 15/08/2022 402,520 0.21 

650,000 Telenet Finance V 6.75% 15/08/2024 652,438 0.34 

633,000 Zinc Capital 8.875% 15/05/2018 624,265 0.33 

Mauritius 839,260 0.44 

7,000,000 Bayport Management 13%12/06/2017 839,260 0.44 

Mexico 2,124,214 1.11 

1,250,000 America Movil 3.125% 16/07/2022 1,001,051 0.52 

1,000,000 America Movil 4.125% 25/10/2019 1,123,163 0.59 


1,750,000 Clondalkin Acquisition 2.252% FRN 15/12/2013 1,666,875 0.87 

2,630,000 Clondalkin Acquisition 2.38875% FRN 15/12/2013 1,933,434 1.01 

1,410,000 InterXion Holding 9.5% 12/02/2017 1,582,725 0.83 

1,000,000 Lukoil International Finance 2.625% 16/06/2015 857,033 0.45 

1,500,000 New World Resources 7.875% 01/05/2018 1,481,475 0.77 

500,000 Swiss Re 6.3024% Variable Perpetual 595,971 0.31 

Norway 9,515,524 4.98 

5,054,526 Boa Deep 7.71% FRN 27/04/2016 703,778 0.37 

1,000,000 DNB NOR Bank 6.0116% Variable Perpetual 1,236,003 0.65 

8,747,000 Eksportfinans 5.5% 26/06/2017 6,925,459 3.62 

800,000 Polarcus Alima 12.5% 29/10/2015 650,284 0.34 

Sweden 1,359,000 0.71 

1,200,000 Eileme 2 11.75% 31/01/2020 1,359,000 0.71 

United Arab Emirates 155,503 0.08 

200,000 Baghlan Group 14.75% 27/06/2015 155,503 0.08 


96




Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 




750,000 Amlin 6.5% Variable 19/12/2026 888,129 0.46 


750,000 Barclays Bank 14%Variable Perpetual 1,184,752 0.62 

1,950,000 Beazley Group 7.25% Variable 17/10/2026 2,264,913 1.18 

884,000 BG Energy Capital 6.5% Variable 30/11/2072 731,992 0.38 

1,000,000 Co-Operative Bank 5.625% Variable 16/11/2021 1,051,108 0.55 

342,000 Coventry Building Society 6.092% Variable Perpetual 393,517 0.21 

400,000 Dixons Retail 8.75% 15/09/2017 505,319 0.26 

750,000 Elli Finance UK 8.75% 15/06/2019 1,018,187 0.53 

2,635,000 HBOS Capital Funding 6.461% Variable Perpetual 2,518,752 1.32 

750,000 International Personal Finance 11.5% 06/08/2015 834,713 0.44 

666,000 Investec Bank 9.625% 17/02/2022 890,538 0.47 

250,000 Jaguar Land Rover 8.25% 15/03/2020 338,346 0.18 

400,000 LBG Capital No.1 7.869% 25/08/2020 490,659 0.26 

1,320,000 Lloyds TSB Bank 6.35% Variable Perpetual 957,000 0.50 

1,400,000 Lowell Group Financing 10.75% 01/04/2019 1,837,905 0.96 

1,234,000 OTE 5% 05/08/2013 1,126,334 0.59 

850,000 Phones4u Finance 9.5% 01/04/2018 1,082,216 0.57 

500,000 Pipe Holdings 9.5% 01/11/2015 631,203 0.33 

1,000,000 Priory Group No.3 7% 15/02/2018 1,316,423 0.69 

400,000 Prudential 11.75% Variable Perpetual 350,225 0.18 

1,030,000 Punch Taverns Finance 7.274% 15/04/2022 1,239,463 0.65 

500,000 Royal Bank of Scotland 6.934% 09/04/2018 511,022 0.27 

1,452,000 Royal Bank of Scotland 1.272% FRN 28/01/2016 1,275,292 0.67 

500,000 Royal Bank of Scotland 4.41% FRN 17/02/2017 306,570 0.16 

750,000 RSA Insurance 6.701% Variable Perpetual 888,505 0.46 

1,000,000 Spirit Issuer 5.472% 28/12/2028 944,419 0.49 

1,000,000 Spirit Issuer 5.86% 28/12/2014 1,069,026 0.56 

300,000 Spirit Issuer 6.582% 28/12/2018 320,933 0.17 

1,400,000 SSE 5.625% Variable Perpetual (B734HC8) 1,083,753 0.57 

400,000 SSE 5.625% Variable Perpetual (B8C1C88) 405,940 0.21 


97




Nominal 

Description 

Fair Value 

€ 

Fair Value 



% 



United Kingdom continued 

1,000,000 Towergate Finance 8.5% 15/02/2018 1,262,357 0.66 

1,200,000 Tui Travel 6% 05/10/2014 1,530,240 0.80 

2,108,000 Tullett Prebon 7.04% 06/07/2016 2,667,520 1.38 

United States 14,486,186 7.58 

237,000 Altria Group 9.7% 10/11/2018 262,216 0.14 

250,000 Bank of America 4.75% 23/05/2017 218,588 0.11 

1,500,000 BPA Laboratory 12.25% 01/04/2017 1,121,084 0.59 

810,000 CEDC Finance 8.875% 01/12/2016 556,875 0.29 

1,700,000 CenturyLink 5.8% 15/03/2022 1,445,367 0.76 

3,000,000 Citigroup 4.75% Variable 31/05/2017 2,621,250 1.37 

750,000 Dresdner Funding 8.151% 30/06/2031 527,622 0.28 

1,000,000 GE Capital Trust IV 4.625% 15/09/2066 946,333 0.49 

1,380,000 GE Capital Trust V 5.5% Variable 15/09/2066 1,547,531 0.81 

1,500,000 Goldman Sachs 6.125% 14/05/2017 2,024,305 1.06 

1,500,000 Merrill Lynch 4.625% 14/09/2018 1,496,264 0.78 

1,000,000 Microsoft 0% 15/06/2013 813,041 0.43 

1,000,000 SLM 8% 25/03/2020 905,710 0.47 

Total Bonds 138,630,224 72.50 



138,630,224 72.50 




98


Notes to the Financial Statements 

■■Notes to the Financial Statementsfor the year ended 30 September 2012 

1. General Information 

The Jupiter Global Fund (the ‘Company’) is an open-ended 

investment company which qualifies as an undertaking for 

collective investment in transferable securities (UCITS) under 

part I of the law of 17 December 2010 regarding undertakings 

for collective investment. It was incorporated in Luxembourg as 

a société d’investissement à capital variable (SICAV) on 

22 September 2005 for an unlimited duration. 

The Company may issue multiple classes of Shares in several 

Funds (the ‘Funds’). A separate pool of assets and liabilities is 

maintained for each Fund and is invested in accordance with the 

investment objective applicable to the relevant Fund. All liabilities 

attributable to a particular Fund are binding solely upon that Fund. 

As at 30 September 2012, the Company was comprised of the 

following Funds: 

The Jupiter Global Fund – Jupiter Asia Pacific 

(‘Jupiter Asia Pacific’) 

The Jupiter Global Fund – Jupiter Climate Change Solutions 

(‘Jupiter Climate Change Solutions’) 

The Jupiter Global Fund – Jupiter European Opportunities 

(‘Jupiter European Opportunities’) 

The Jupiter Global Fund – Jupiter European Growth 

(‘Jupiter European Growth’) 

The Jupiter Global Fund – Jupiter Global Financials 

(‘Jupiter Global Financials’) 

The Jupiter Global Fund – Jupiter New Europe 

(‘Jupiter New Europe’) 

The Jupiter Global Fund – Jupiter India Select 

(‘Jupiter India Select’) 

The Jupiter Global Fund – Jupiter Japan Select 

(‘Jupiter Japan Select‘) 

The Jupiter Global Fund – Jupiter Global Equities 

(‘Jupiter Global Equities’) 

The Jupiter Global Fund – Jupiter North American Equities 

(‘Jupiter North American Equities‘) 

The Jupiter Global Fund – Jupiter China Sustainable Growth 

(‘Jupiter China Sustainable Growth‘) 

The Jupiter Global Fund – Jupiter Europa 

(previously known as Jupiter European Absolute Return) 

(‘Jupiter Europa‘) 

The Jupiter Global Fund – Jupiter Strategic Total Return 

(‘Jupiter Strategic Total Return‘) 

The Jupiter Global Fund – Jupiter Global Convertibles 

(‘Jupiter Global Convertibles‘) 

The Jupiter Global Fund – Jupiter Dynamic Bond 

(‘Jupiter Dynamic Bond‘) 

The Company currently offers Class L and I Shares for sale in 

the following Funds: 

• Jupiter European Opportunities 

• Jupiter European Growth 

• Jupiter Strategic Total Return 

• Jupiter Global Convertibles 

• Jupiter Dynamic Bond 

The Company currently offers Class L Shares for sale in the 

following Funds: 

• Jupiter Asia Pacific 

• Jupiter Climate Change Solutions 

• Jupiter Global Financials 

• Jupiter New Europe 

• Jupiter India Select 

• Jupiter Japan Select 

• Jupiter Global Equities 

• Jupiter North American Equities 

• Jupiter China Sustainable Growth 

• Jupiter Europa 

Class I Shares are reserved for Institutional Investors while 

Class L Shares are available for subscription by retail investors. 

On 31 October 2011, Jupiter Europa Hedge Fund Limited 

contributed its assets into The Jupiter Global Fund – Jupiter 

Europa. The total value of the contribution in kind was EUR 

45,638,240.88. 

Shareholders in Jupiter Europa Hedge Fund Limited holding 

41,855.3709 Class US Dollar Shares opted to exchange those 

shares against 925,829.085 Jupiter Europa Class L US Dollar B 

Shares. The Jupiter Europa Class L US Dollar B Shares were 

issued at a Net Asset Value per Share of USD 10.00. 

Shareholders in Jupiter Europa Hedge Fund Limited holding 

238,435.9903 Class Euro Dollar Shares opted to exchange 

those shares against 4,005,592.715 Jupiter Europa Class L 

Euro B Shares. The Jupiter Europa Class L Euro B Shares were 

issued at a Net Asset Value per Share of EUR 9.76. 

On 16 March 2012, Jupiter Hyde Park Hedge Fund Limited 

contributed its assets into The Jupiter Global Fund – Jupiter 

Europa. The total value of the contribution in kind was EUR 

7,469,422.60. 

Shareholders in Jupiter Hyde Park Hedge Fund Limited holding 

6,577.252 Class Euro Shares opted to exchange those shares 

against 87,424.423 Jupiter Europa Class L Euro B Shares. The 

Jupiter Europa Class L Euro B Shares were issued at a Net 

Asset Value per Share of EUR 10.07. 


13,021.939 Class Sterling Shares opted to exchange those 

shares against 177,995.622 Jupiter Europa Class L Sterling B 

Shares. The Jupiter Europa Class L Sterling B Shares were 

issued at a Net Asset Value per Share of GBP 10.21. 



shares against 336,113.134.50 Jupiter Europa Class L US 

Dollar B Shares. The Jupiter Europa Class L US Dollar B Shares 

were issued at a Net Asset Value per Share of USD 10.29. 

On 23 March 2012, Jupiter Financials Hedge Fund Limited 

contributed its assets into The Jupiter Global Fund - Jupiter 

Global Financials. The total value of the contribution in kind was 

EUR 4,381,624.99. 

99



■■Notes to the Financial Statementsfor the year ended 30 September 2012 (continued) 

1. general Information continued 

Shareholders in Jupiter Financials Hedge Fund Limited holding 

20,313.591 Class Euro Shares opted to exchange those shares 

against 267,841.428 Jupiter Global Financials Class L Euro 

Shares. The Jupiter Global Financials Class L Euro Shares were 

issued at a Net Asset Value per Share of EUR 7.84. 


7,046.067 Class Sterling Shares opted to exchange those shares 

against 89,326.532 Jupiter Global Financials Class L Sterling 

Shares. The Jupiter Global Financials Class L Sterling Shares 

were issued at a Net Asset Value per Share of GBP 9.00. 



shares against 258,089.531 Jupiter Global Financials Class L 

US Dollar Shares. The Jupiter Global Financials Class L US 

Dollar Shares were issued at a Net Asset Value per Share of 

USD 6.75. 

2. Summary of Significant Accounting Policies 

a) Basis of preparation 

The financial statements have been prepared in conformity with 

Luxembourg generally accepted accounting principles applicable 

to investment Funds. 

b) Financial Statements 

Financial statements are presented for each Fund in the base 

currency of the Fund and the combined Statement of Net Assets, 

Statement of Operations and Statement of Changes in Net 

Assets are presented in Euro (EUR), based on the exchange 

rate ruling at the date of these financial statements. 

The difference between opening Net Assets stated at exchange 

rates ruling at the beginning of the year and their value at the 

end of the year is shown as a ‘Currency translation adjustment’ 

in the Statement of Changes in Net Assets. 

c) Foreign currency translation 

Assets and liabilities denominated in currencies other than the 

Fund’s base currency are translated into that base currency at 

exchange rates ruling at the date of these financial statements. 

Transactions occurring during the year in currencies other than 

the base currency are translated at rates of exchange ruling on 

the transaction dates. Differences arising on translation are 

included in the Statement of Changes in Net Assets. 

The exchange rates used for the financial statements as at 

30 September 2012 are as follows: 

EUR/USD: 1.29226 

EUR/GBP: 0.79811 

EUR/SEK: 8.43811 

EUR/CHF: 1.20948 

EUR/JPY: 100.30090 

EUR/NOK: 7.36540 

d) Investments 

Securities are initially recognised at cost, being the fair value of 

the consideration given. 

Securities listed on an official stock exchange or dealt in on any 

regulated market are valued at the last available price. 

Closed-ended funds are valued at their last available price. 

Wherever practicable, the last available Net Asset Value is 

deemed to include the Net Asset Value calculated on the same 

Valuation day for any underlying fund which itself has a valuation 

point at or before the Company’s Valuation Point being 1pm 

Luxembourg time. 

In the event that any of the securities held by the Company’s 

portfolio on the relevant day are not listed on any stock exchange 

or dealt in on any regulated market or if, with respect to securities 

listed on any stock exchange or dealt in on any other regulated 

market, the basis of the price as determined above is not 

representative of the fair market value of the relevant securities, 

the value of such securities will be determined based on the 

reasonably foreseeable sales price determined prudently and in 

good faith by the Board of Directors of the Company (the ‘Board 

of Directors’). 

Gains or losses arising on the disposal of investments are 

calculated by reference to the net sales proceeds and the 

average cost attributable to those investments. 

All purchases and sales of securities are recognised on the 

trade date, i.e. the date the Fund commits to purchase or sell 

the security. 

e) Contracts for difference 

Contracts for difference are valued using the local daily price of 

the underlying listed equity, converted into the currency of the 

unlisted asset as appropriate. The unrealised appreciation/ 

(depreciation), on contracts for difference is included in the 

Statement of Net Assets as ‘Unrealised appreciation/ 

(depreciation) on contracts for difference’. Contracts for 

difference are reset at month end after the valuation point. 

f) Options 

Options are contractual agreements that convey the right, but 

not the obligation, for the purchaser either to buy or sell a specific 

amount of a financial instrument at a fixed price, either at a fixed 

future date or at any time before maturity. 

OTC options are valued using independent third party OTC 

pricing for straight forward options via an automated macro 

deriving prices from Bloomberg and the Black-Scholes model. 

The Company purchases and sells put and call options through 

regulated exchanges and OTC markets. Options purchased by 

the Company provide the Company with the opportunity to 

purchase (call options) or sell (put options) the underlying asset 

at an agreed-upon value either on or before the expiration of the 

option. The Company is exposed to credit risk on purchased 

options only to the extent of their carrying amount, which is their 

fair value. 

Options are generally settled on a net basis. 

g) Forward foreign exchange contracts 

The Company enters into forward foreign exchange contracts to 

hedge against exposures to foreign currency fluctuations. The 

carrying value of these contracts is the gain or loss that would be 

realised if the position was closed out on the valuation date, and is 

included in the Statement of Net Assets as ‘Unrealised appreciation/ 

(depreciation) on forward foreign exchange contracts’. Upon the 

closing of the contract, the gain or loss is recorded in the ‘Net 

realised gains/(losses) on forward foreign exchange contracts’. 

100




2. Summary of Significant Accounting Policies 

continued 

h) Financial Futures Contracts on Securities and Indices 

Regulated financial futures contracts are valued at the exchange 

quoted settlement price. Initial margin deposits are made upon 

entering into the contracts and can be either in cash or securities. 

During the year the contracts are open, changes in the value of 

the contracts are recognised as unrealised gains and losses by 

‘marking-to-market’ on a daily basis to reflect the market value of 

the contracts at the end of each business day’s trading. The 

unrealised appreciation/depreciation on futures contracts is 

included in the Statement of Net Assets as ‘Unrealised 

appreciation/(depreciation) on futures contracts’. Variation margin 

payments are made or received, depending upon whether losses 

or gains are incurred. When a contract is closed, the Company 

records a realised gain or loss equal to the difference between the 

proceeds from, or cost of, the closing transaction and the initial 

cost of the contract. 

i) Income recognition 

Bonds may be purchased at a discount or at a premium. Such 

discount or premium is amortised over the life of the bond using 

straight line amortisation. Amortisation is recorded as part of 

interest income. 

Interest income is accrued on a daily basis. 

Dividend income is presented in the Statement of Operations on 

a net basis, and is recognised when the right to receive the 

dividend is established, on the ex-date. 

Interest, dividends and capital gains on securities may be subject 

to withholding or capital gains taxes in certain countries. 

j) Expense recognition 

Expenses are accounted for on an accrual basis. Expenses are 

charged to the Statement of Operations except for expenses 

incurred on the acquisition of an investment which are included 

within the cost of that investment and expenses arising on the 

disposal of investments, which are deducted from the disposal 

proceeds. 

k) Management fee rebates 

Until 8 June 2012 part of the Company’s assets were invested in 

other collective investment vehicles in which management fees 

were accrued on all assets under management on a regular 

basis. The Company had entered into arrangements, whereby 

part or all of the management fees paid in respect of the 

Company’s investments were retroceded. The retroceded fees 

are accrued on each valuation day, where applicable, and are 

recognised as ‘Management fees rebates’ in the Statement of 

Operations. The management fee rebates recognised in the 

financial statements relate to Jupiter Asia Pacific’s holding in the 

Jupiter India Fund which has been sold in its entirety during the 

course of the year. The last sale took place on 8 June 2012. 

l) Dividends payable 

Dividends payable by the Company are recorded on the ex-date. 

Refer to Note 18 for details of dividends declared during the year 

ended 30 September 2012. 

m) Net Asset Value per Share 

The Net Asset Value per Share is calculated by dividing the Net 

Assets of the relevant Class of Shares in a Fund included in the 

Statement of Net Assets by the number of Shares of the relevant 

class in that Fund in issue at the year end. 

n) Use of Estimates 

The preparation of financial statements in conformity with 

accounting principles generally accepted in Luxembourg 

requires management to make estimates and assumptions that 

affect the reported amounts of assets and liabilities and 

disclosure of contingent assets and liabilities at the date of the 

financial statements and the reported amounts of revenues and 

expenses during the reporting year. Actual results could differ 

from those estimates. 

101




3. Contracts for difference 

As at 30 September 2012, the Company had the following open contracts for differences: 


Description 

Currency 

Number of 

purchased 

contracts 

Market 

Value 

€ 

Unrealised 

appreciation/ 

(depreciation) 

€ 

AXA EUR 32,772 385,399 902 

Barclays Bank GBP 230,411 627,192 59,891 

Capital Shop REIT GBP (46,779) (191,867) 7,065 

Citigroup USD 15,810 403,429 21,713 

Great Eagle Holdings USD 91,000 214,779 1,378 

Hannover Ruckversicherung EUR 4,169 207,387 4,898 

Henderson Group GBP 145,884 194,394 (19,354) 

London Stock Exchange Group GBP 22,927 269,527 (42,823) 

Newcastle Investment USD 34,732 200,905 (4,328) 

Paragon Group of Companies GBP 216,895 560,235 30,919 

Qualitas Controladora USD 373,527 400,345 11,982 

Redwood Trust USD 27,158 307,147 4,561 

Siam Commercial Bank NVDR USD 74,800 317,708 9,853 

Sparebank 1 SR Bank NOK 86,262 430,396 15,016 

Swiss Life Rentenanstalt CHF 2,717 252,158 (9,031) 

T&D Holdings JPY 29,800 251,028 (13,048) 

UNITE Group GBP 28,408 90,676 3,056 


Description 

Currency 

Number of 

purchased 

contracts 

4,920,838 82,650 

Market 

Value 

€ 

Unrealised 

appreciation/ 


€ 

A2A EUR (424,040) (164,973) 14,481 

Admiral Group GBP 103,730 1,385,475 (163,279) 

Altran Technology EUR (71,279) (358,854) (44,514) 

Amec GBP 84,987 1,224,581 38,054 

Astrazeneca GBP (16,840) (626,244) (3,706) 

Atlas Copco SEK (31,617) (576,460) (19,875) 

Atos EUR (12,074) (662,621) (100,576) 

BASF EUR (9,509) (631,017) (43,266) 

Bouygues EUR (17,468) (334,032) 11,398 

102




3. Contracts for differences continued 

Jupiter Europa continued 

Description 

Currency 

Number of 

purchased 

contracts 

Market 

Value 

€ 

Unrealised 

appreciation/ 


€ 

Clariant CHF (42,768) (397,981) (18,911) 

E.On EUR (26,689) (496,816) (8,807) 

EDF EUR (30,084) (496,236) (9,176) 

Electrolux ‘B’ SEK (34,422) (665,744) (9,896) 

EVS Broadcast Equipment EUR (9,358) (401,411) (41,128) 

Experian Group GBP 104,582 1,364,096 42,240 

Fuchs Petrolub PFD EUR (13,040) (647,990) (41,630) 

Givaudan ‘N’ CHF 1,197 885,510 (7,034) 

Hamburger Hafen EUR (20,324) (404,448) (10,568) 

Hexagon SEK (28,756) (481,528) (27,228) 

HSBC Holdings GBP 201,796 1,457,889 68,023 

Iberdrola EUR (127,577) (453,472) (51,095) 

Indra Sistemas EUR (59,741) (459,139) (3,734) 

Intertek Group GBP 41,747 1,435,052 (44,388) 

Kone 'B' EUR (10,651) (576,485) (58,314) 

Lagardere Groupe EUR (25,097) (541,656) 19,136 

Marks & Spencer Group GBP (114,859) (518,018) (650) 

Nokian Renkaat EUR 36,309 1,157,712 21,604 

Obrascon Huarte Lain EUR (28,460) (514,770) (40,342) 

Oriflame Cosmetics SEK (21,447) (580,261) 8,487 

Prudential GBP 142,718 1,438,607 24,614 

Ramirent EUR (65,731) (406,218) (11,832) 

Sainsbury ‘J’ GBP (107,670) (470,216) (26,165) 

Sandvik NPV SEK (47,863) (504,967) (1,238) 

SBM Offshore EUR (27,000) (302,670) 9,067 

SEB EUR (9,472) (509,025) 15,629 

Skanska ‘B’ SEK (48,798) (616,179) (24,937) 

SKF ‘B’ SEK (19,000) (321,539) 3,361 

St Microelectronics EUR (84,187) (356,785) 40,326 

Telecom Italia EUR (572,514) (450,855) (27,194) 

Telefonica EUR (44,721) (470,241) (21,243) 

TF1 EUR (53,566) (347,161) 54,640 

Veolia Environnement EUR (54,401) (469,127) (11,288) 

Vossloh EUR (6,477) (465,761) (16,063) 

Wolseley GBP 36,973 1,235,506 52,318 

(5,096,472) (464,699) 

103




4. Options 

Open option contracts as at 30 September 2012 are as follows: 

Fund 

Options 

purchased 

Number of 

Contracts Currency Commitment 

Fair value 

€ 

% of 



EUX DJ Euro 2425P 

Maturity 19/10/2012 

Euro STX 50 P2450 


550 

450 

EUR 

EUR 

– 

– 

148,775 

155,475 

0.27 

0.29 


Options sold 

Euro STX 50 C2700 


304,250 0.56 

365 EUR 8,958,049 (5,475) (0.01) 

(5,475) (0.01) 

5. Forward Foreign Exchange Contracts 

Open forward foreign exchange contracts as at 30 September 2012 are as follows: 




Currency 

bought 

Currency 

sold 

Maturity 

date 

Unrealised 

appreciation/ 


€ 

EUR 750,000 AUD 935,315 6 December 2012 438 

EUR 1,500,000 USD 1,977,087 18 December 2012 (28,556) 

USD 968,359 EUR 750,000 18 December 2012 (1,328) 

(29,446) 

EUR 47,014 GBP 37,407 15 October 2012 156 

GBP 6,830,166 EUR 8,540,852 15 October 2012 15,133 

USD 17,302,031 EUR 13,428,223 15 October 2012 (41,468) 

(26,179) 

104




5. Forward Foreign Exchange Contracts continued 




Currency bought 

Currency 

sold 

Maturity 

date 

Unrealised 

appreciation/ 


€ 

CHF 9,146,003 EUR 7,567,162 15 October 2012 (4,437) 

EUR 85,776 CHF 104,172 15 October 2012 (362) 

EUR 756,252 GBP 609,932 15 October 2012 (7,795) 

GBP 9,464,195 EUR 11,833,869 15 October 2012 21,701 


EUR 11,026,064 GBP 8,812,471 25 October 2012 (11,636) 

EUR 3,088,790 JPY 313,821,043 25 October 2012 (39,504) 

EUR 1,575,829 SGD 2,506,750 25 October 2012 (5,540) 

EUR 11,386,804 USD 14,800,113 25 October 2012 (63,077) 

USD 113,365 EUR 87,070 25 October 2012 633 

USD 6,397,644 ZAR 53,000,000 23 November 2012 24,749 

(128,782) 

CHF 140,179,698 EUR 115,976,850 15 October 2012 (63,870) 

EUR 116,886 CHF 141,565 15 October 2012 (173) 


EUR 499,802 USD 649,039 15 October 2012 (2,366) 

GBP 249,797,514 EUR 311,844,496 15 October 2012 1,070,874 


EUR 4,981,643 AUD 6,176,240 25 October 2012 12,805 

EUR 8,759,852 CHF 10,603,657 25 October 2012 (8,774) 


EUR 116,559,581 JPY 11,818,218,516 25 October 2012 (1,249,166) 

EUR 42,423,971 SGD 67,381,054 25 October 2012 (82,968) 

EUR 334,040,014 USD 433,198,776 25 October 2012 (1,097,602) 

GBP 4,590,000 EUR 5,745,760 27 December 2012 (1,933) 

(1,887,214) 

105




5. Forward Foreign Exchange Contracts continued 



Currency bought 

Currency 

sold 

Maturity 

date 

Unrealised 

appreciation/ 


€ 

CHF 21,011 EUR 17,384 15 October 2012 (10) 

GBP 80,844,821 EUR 101,279,228 15 October 2012 (6,855) 


EUR 14,211,590 AUD 17,683,766 31 October 2012 (9,353) 

EUR 34,336,772 GBP 27,319,277 31 October 2012 122,347 

EUR 822,504 SEK 7,000,000 31 October 2012 (5,952) 

EUR 32,928,817 USD 42,400,518 31 October 2012 128,941 

USD 365,227 EUR 284,013 31 October 2012 (1,484) 

223,877 

106




6. Futures Contracts 

Open futures contracts as at 30 September 2012 are as follows: 



Description 

A$ Currency Future 

Maturity: 17 December 2012- 86 contracts 

Commitment Amount 30/09/12: EUR 6,910,893 

CBT US 5YR Note 






LIFFE Long Gilt Future 



Euro OAT Futures 



CME JPY Future 



Unrealised 

appreciation/ 

(depreciation 

€ 

(3,441) 

(23,052) 

(23,548) 

2,619 

(46,930) 

(14,476) 

(108,828) 


CME S&P 500 E-Mini Index Future 



(293,253) 

(293,253) 


EUX Euro BUND 



EUX Euro BOBL 



Euro OAT Futures 









(2,550) 

1,300 

(39,892) 

(4,988) 

(55,771) 

(101,901) 

107




7. Investment Management and Performance Fees 

The Management Company appointed Jupiter Asset 

Management (Bermuda) Limited (‘JAMB’) as Investment 

Manager to provide certain administrative and management 

services. Jupiter Asset Management Limited (‘JAML’ or the 

‘Investment Manager’) replaced JAMB as Investment Manager 

with effect from 1 May 2012. 

The Investment Management Fee is calculated per Fund on the 

basis of the daily Net Asset Value of each Fund and is payable 

monthly in arrears. The fee rate per annum charged and applicable 

to each Class of Shares during the year ended 30 September 

2012 are as follows: 

• Jupiter Asia Pacific, 

Jupiter Climate Change Solutions, 

Jupiter Global Financials, 

Jupiter New Europe, 

Jupiter Japan Select, 

Jupiter Global Equities, 

Jupiter North American Equities, 

Jupiter China Sustainable Growth: 

Class L Shares 1.50% 

• Jupiter European Opportunities, 

Jupiter European Growth: 


Class I Shares 0.75% 

• Jupiter India Select: 


• Jupiter Europa: 

Class L Shares A 1.75% 

Class L Shares B 1.50% 

(from 18 October 2011 and 

1.25% until 17 October 2011) 

• Jupiter Strategic Total Return: 



(from 11 May 2012 and 

0.75% until 10 May 2012) 

• Jupiter Global Convertibles: 



• Jupiter Dynamic Bond: 



Where a fund invests in other funds managed by the Investment 

Manager, the Fund will not be subject to additional management 

fees. These related management fee reimbursements are 

included as ‘Management fee rebates’ in the Statement of 

Operations and amounted to €4,737 for the year ended 

30 September 2012. 

In addition, the Investment Manager may become entitled to 

receive a Performance Fee from Jupiter Global Financials, 

Jupiter Europa (with the exception of the Class L, Shares A), 

Jupiter New Europe and Jupiter Strategic Total Return (with the 

exception of Class I shares), calculated by reference to the outperformance 

of the Net Asset Value per Share in any given 

Class over the total return of the relevant benchmark for that 

Class over the course of a Performance Year. The Performance 

Fee accrued is based on the Fund specific performance fee rate 

stated below. Any Performance Fee earned by the Investment 

Manager is accumulated by the Fund and is payable to the 

Investment Manager in arrears on the last day of each accounting 

year. No performance fee is payable by any of the other Funds 

other than those mentioned above. 

• Jupiter Global Financials, 

Jupiter New Europe: 

Class L Shares 15% 

• Jupiter Europa: 

Class L Shares B 15% 

• Jupiter Strategic Total Return: 

Class L Shares 10% 

The Performance Fees are calculated on the basis of the outperformance 

of the Net Asset Value per Share of a Fund over 

the Benchmark Index for that Fund, being: 

(i) 

the FTSE All World Financials Index (Total Return as at 

midday) redenominated into the currency for each Class of 

Jupiter Global Financials; 

(ii) the 3 months EURIBOR, 3 months US Dollar LIBOR and 3 

months Sterling LIBOR for the respective Class L Shares of 

Jupiter Europa; 

(iii) the MSCI Emerging Markets Europe 10/40 Index (Total 

Return) for Jupiter New Europe and 

(iv) the 1 month EURIBOR, 1 month US Dollar LIBOR, 1 month 

CHF LIBOR and 1 month Sterling LIBOR for the respective 

Class L Shares of Jupiter Strategic Total Return. 

The Performance Fees charged for the year ended 30 September 

2012 to Jupiter Europa was €393,440 and to each of the other 

Fund was nil. 

8. Management Company Fee 

On 1 October 2005, RBS (Luxembourg) S.A. was appointed as 

the Management Company. The list of the Funds managed by the 

Management Company may be obtained, on request, at the 

registered office of the Management Company. 

The Management Company is responsible on a day-to-day basis, 

under the supervision of the Directors of the Company, for 

providing administration, marketing and investment management 

services in respect of all Funds. 

The Management Company has been permitted by the Company 

to delegate its investment management functions to investment 

managers authorised by the Company, comprising the 

Investment Manager. 

In the context of its marketing function, the Management Company 

may enter into agreements with Distributors pursuant to which the 

Distributors agree to act as intermediaries or nominees for 

investors subscribing for Shares through their facilities. 

In the context of its administration functions, the Management 

Company has been permitted by the Company to delegate its 

administration functions to third parties authorised by the 

Company, comprising the Administrator. 

108




8. Management Company Fee continued 

The Management Company will monitor on a continual basis the activities of the third parties to which it has delegated functions. The agreements 

entered into between the Management Company and the relevant third parties provide that the Management Company can give at any time 

further instructions to such third parties, and that it can withdraw their mandate with immediate effect if this is in the interest of the Shareholders. 

The Management Company’s liability towards the Company is not affected by the fact that it has delegated certain functions to third parties. 

RBS (Luxembourg) S.A. is entitled, for the provision of management company services rendered to the Company, to receive the following fee 

per annum based on the Net Asset Value attributable to each Fund with an overall minimum annual fee for the Company of €8,500 per Fund. 

Net Asset Value 

Up to 1 March 2012 After 1 March 2012 

Fee rates 

Funds under 

VaR Approach 

Fee rates 

Funds under 

Commitment 

Approach 

Fee rates 

€0 – €100,000,000 0.075% 0.07% 0.06% 

€100,000,000 – €200,000,000 0.060% 0.06% 0.05% 

€200,000,000 and above 0.050% 0.05% 0.04% 

All the Funds are using the commitment approach to measure and monitor the global expense except for Jupiter Global Financials, Jupiter 

Strategic Total Return and Jupiter Europa which are using the Value-at-Risk (‘VaR’) approach. 

9. Administration and Custodian Fees 

HSBC Securities Services (Luxembourg) S.A. (‘HSBC’) has been appointed to perform central administration duties for the Company 

pursuant to a delegation of such duties to it by the Management Company. 

HSBC, as Administrator and Custodian, is entitled to receive fees in accordance with market practice in Luxembourg. This fee is calculated 

on the basis of the Net Asset Value of each Fund. Such fee does not include normal banking and brokerage fees and commissions on 

transactions relating to the assets and liabilities of the Fund or any reasonable out-of pocket expenses incurred in connection with the 

Company and chargeable to the Company. 

HSBC is entitled to receive the following fees per annum based on the Net Asset Value of each Fund as the agreed remuneration for its 

Transfer agent, Custodian and Administration function. 

Transfer Agency 

Administration 

fee Custodian fee 

fee 

€0 – €100,000,000 0.02% 0.01% 0.05% 

€100,000,000 – €500,000,000 0.015% 0.01% 0.04% 

€500,000,000 and above 0.01% 0.01% 0.03% 

Custodian fees charged per annum are based on the assets of the country of the underlying investments together with certain transaction 

charges based on the number of transactions in a particular country. 

10. Directors’ Fees, Expenses and Interests 

Mr. Garth Lorimer Turner was the Managing Director of JAMB and also therefore had an interest in the Investment Management Agreement 

up to 30 June 2012. 

Mr. Jacques Elvinger is a partner of the Luxembourg law firm of Elvinger Hoss & Prussen, which provides legal services to the Company. 

Mr. Adrian Creedy is a Director of the Investment Manager and has an interest in the Investment Management Agreement. He has a 

beneficial interest in 15,520.54 shares of Jupiter Global Convertibles Class I GBP. 

Each Director receives fees of €15,000 per annum. Fees due to Mr. Adrian Creedy are paid directly to JAML. Fees paid to Mr. Garth Lorimer 

Turner up to 30 June 2012 were paid to JAMB and thereafter to Mr. Garth Lorimer Turner. In addition, all Directors are entitled to reimbursement 

by the Company of any expenses directly incurred in the execution of their duties as Directors. 

Directors insurance for the year ended 30 September 2012 was €26,893 and is presented in the Statement of Operations as ‘Other expenses’. 

Save as referred to above, no Director holds any shares in the Company nor has any interest in any transaction which, during the year under 

review, has been effected by the Company and is unusual in its nature or conditions, or is significant to the business of the Company. 

109




11. Taxe d’abonnement 

The Company is liable in Luxembourg to a tax (taxe d’abonnement), such tax being payable quarterly and calculated on the Net Asset Value 

of the Company at the end of the relevant calendar quarter. The taxe d’abonnement is levied at a rate of 0.01% per annum on funds or 

Classes reserved to Institutional Investors (Class I) and at 0.05% per annum on other Funds or Classes (Class L). No such tax is payable in 

respect of the portion of the assets of each Fund invested in other Luxembourg collective investment undertakings which are subject to this 

tax. Under current law and practice, the Company is not liable to Luxembourg taxes on income or capital gains, nor are dividends paid by 

the Company liable to any Luxembourg withholding tax. 

12. Expense Reimbursements 

The Investment Manager has agreed to bear the expenses of each Class above a certain limit (based on total expenses excluding 

performance fees and specific security charges expressed as a percentage of average Net Assets) as follows: 

• Jupiter Asia Pacific 2.00% 

• Jupiter Climate Change Solutions 2.00% 

• Jupiter European Opportunities 

Class ‘L’ 2.00% 

Class ‘I’ 1.25% 

• Jupiter European Growth 

Class ‘L’ 2.00% 

Class ‘I’ 1.25% 

• Jupiter Global Financials 2.00% 

• Jupiter New Europe 2.00% 

• Jupiter India Select 2.20% 

• Jupiter Japan Select 2.00% 

• Jupiter Global Equities 2.00% 

• Jupiter North American Equities 2.00% 

• Jupiter China Sustainable Growth 2.00% 

• Jupiter Europa 

Class ‘L’ ‘A’ 2.25% 

Class ‘L’ ‘B’ 2.00% 

(from 2 November 2011 and 

1.75% until 1 November 2011) 

• Jupiter Strategic Total Return 

Class ‘L’ 1.75% 

Class ‘I’ 1.15% 

(from 8 May 2012 and 

1.25% until 7 May 2012) 

• Jupiter Global Convertibles 

Class ‘L’ 2.20% 

Class ‘I’ 1.40% 

• Jupiter Dynamic Bond 

Class ‘L’ 1.75% 

Class ‘I’ 1.00% 

Expenses in excess of the above limits are recorded as ‘Expense reimbursements’ in the Statement of Operations. The expense 

reimbursements accrued by the Funds during the year ended 30 September 2012 amounted to €121,864. The reimbursement is paid to the 

Funds by the Investment Manager annually in arrears. 

13. Transactions with Connected Parties 

All transactions with connected parties were carried out on an arm’s length basis. The Investment Manager and its affiliates, the Directors, 

Management Company and other related agents of the Company are considered connected parties. 

14. Soft Dollar Arrangements 

The Investment Manager may from time to time receive goods and services which are paid for out of broker commissions provided that they 

relate to execution and research services which meet the criteria laid down by United Kingdom’s Financial Services Authority Rules and the 

SFC Code on Unit Trusts and Mutual Funds. 

There were no soft dollar benefits received by the Company or the Investment Manager during the year ended 30 September 2012. 

15. Dilution Levy 

Until 21 May 2012, in circumstances where the value of the assets of a Fund may be reduced as a result of costs incurred in dealing in a Fund’s 

investments, including taxes, stamp duties and transaction charges or as a result of dealings in such investments at prices other than the prices 

used to calculate the Net Asset Value of the Fund, the Board of Directors could, in their discretion but subject to applicable law, impose on a 

Shareholder or applicant for Shares a dilution levy in respect of any subscription or redemption of Shares where they reasonably considered 

such levy would avoid or mitigate any potential adverse effects on Shareholders and would be fair to all Shareholders and potential Shareholders. 

The maximum dilution levy which could be applied to a dealing request was 2% of the Net Asset Value of the relevant Class. 

From 21 May 2012 the Funds adopted a partial swing pricing process. Under certain circumstances (for example, large volumes of deals) 

investment and/or disinvestment costs may have an adverse effect on the Shareholders’ interests in a Fund. In order to prevent this effect, 

the Board of Directors have the authority to allow for the Net Asset Value per Share to be adjusted by effective dealing and other costs and 

fiscal charges which would be payable on the effective acquisition or disposal of assets in the relevant Fund if the net capital activity exceeds, 

as a consequence of the sum of all subscriptions, redemptions or switches in such a Fund, such threshold percentage (the ‘Threshold’) as 

may be determined from time to time by the Board of Directors, of the Fund’s total Net Assets on a given Valuation Day. 

110




15. Dilution Levy continued 

If the net capital activity on a given Valuation Day leads to a net inflow of assets in the relevant Fund, the Net Asset Value used to process 

all subscriptions, redemptions or switches in such a Fund is adjusted upwards by a swing factor that shall be determined from time to time 

by the Board of Directors. 

If the net capital activity on a given Valuation Day leads to a net outflow of assets in the relevant Fund, the Net Asset Value used to process 

all subscriptions, redemptions or switches in such a Fund is adjusted downwards by a swing factor that shall be determined from time to time 

by the Board of Directors. 

None of the Funds applied swing pricing on the year end valuation date. 

16. Cash and Short Term Deposits 

As at 30 September 2012, the following Funds have restricted cash as follows: 

Jupiter Asia Pacific KRW 13,558.00 

US$ 70.02 

TWD 10,280,008.00 

INR 4,618,613.34 

PHP 5,064,398.34 

Jupiter Global Financials INR 1.16 

Jupiter India Select INR 48,347,022.83 

US$ 113,136.77 

Jupiter Strategic Total Return QAR 0.01 

17. Statement of Changes in the Portfolio 

A listing of the statement of changes in the portfolio during the year is available upon request to any investor at the registered office of the 

Fund free of charge. 

18. Dividend Distributions 

During the year ended 30 September 2012, the Company declared the following dividends: 

Fund Share Class Ex-date Pay date 

Rate per Share 

in Fund 

Currency 

Jupiter European Opportunities Class L 28 September 2012 31 December 2012 GBP 0.0789 

Jupiter European Growth Class L 28 September 2012 31 December 2012 GBP 0.1352 

Jupiter Global Financials Class L 20 March 2012 29 March 2012 GBP 0.4998 

Jupiter Japan Select Class L 20 March 2012 29 March 2012 GBP 0.0735 

Class L 28 September 2012 31 December 2012 GBP 0.0760 

Jupiter Global Equities Class L 28 September 2012 31 December 2012 GBP 0.0931 

Jupiter China Sustainable Growth Class L 28 September 2012 31 December 2012 GBP 0.0399 

Jupiter Global Convertibles Class I 28 September 2012 31 December 2012 GBP 0.1905 


Jupiter Dynamic Bond Class I 28 September 2012 31 December 2012 USD 0.1352 

Class I 28 September 2012 31 December 2012 EUR 0.1436 

Class I 28 September 2012 31 December 2012 GBP 0.1365 

Class I 28 September 2012 31 December 2012 CHF 0.1362 

Class L 28 September 2012 31 December 2012 USD 0.1108 

Class L 28 September 2012 31 December 2012 EUR 0.1170 


Class L 28 September 2012 31 December 2012 CHF 0.1068 

111




19. overdraft Credit Facilities 

The Company has multi-currency overdraft credit facilities with HSBC Bank Plc (as Lender, the ‘Bank’) and HSBC Securities Services 

(Luxembourg) S.A. (as ‘Custodian’) on a per Fund basis equal to the lesser of the amount below and 10% of Net Value of Assets in Custody 

of the relevant Fund as follows: 

Fund Until 4 April 2012 From 5 April 2012 

Interest % Amount US$ Interest % Amount US$ 

Jupiter Asia Pacific 1.25 4,000,000 1.25 3,000,000 

Jupiter Climate Change Solutions 1.25 2,500,000 1.25 1,100,000 

Jupiter European Opportunities 1.25 18,000,000 1.25 17,000,000 

Jupiter European Growth 1.25 56,000,000 1.25 24,000,000 

Jupiter Global Financials 1.25 26,000,000 1.25 5,500,000 

Jupiter New Europe 1.25 26,000,000 1.25 15,000,000 

Jupiter India Select 2.00 5,000,000 2.00 5,000,000 

Jupiter Japan Select 1.25 12,000,000 1.25 9,000,000 

Jupiter Global Equities 1.25 1,500,000 1.25 900,000 

Jupiter North American Equities 1.25 10,000,000 1.25 7,500,000 

Jupiter China Sustainable Growth 1.25 3,500,000 1.25 1,500,000 

Jupiter European Absolute Return 1.25 4,000,000 1.25 4,000,000 

Jupiter Strategic Total Return 1.25 21,000,000 1.25 24,000,000 

Jupiter Global Convertibles 1.25 21,000,000 1.25 50,000,000 

Jupiter Dynamic Bond (from 12 June 2012) – – 1.25 8,000,000 

The overdraft balances bear interest at rates of LIBOR plus the rate listed above per annum. In addition, each of the Funds pays the Bank 

a fee of USD 1,000 per annum, paid in advance on the date of agreement and each anniversary date of the agreement. 

The facilities have no fixed term and are secured, except for Jupiter India Select, by the investments of the Funds. 

112




20. transaction Costs 

For the year ended 30 September 2012, the Funds incurred transaction costs related to purchase or sale of securities as follows: 

Fund Amount in Fund currency 

Jupiter Asia Pacific USD 132,117 

Jupiter Climate Change Solutions EUR 7,486 

Jupiter European Opportunities EUR 242,519 

Jupiter European Growth EUR 776,913 

Jupiter Global Financials EUR 537,158 

Jupiter New Europe EUR 260,485 

Jupiter India Select USD 326,865 

Jupiter Japan Select USD 159,790 

Jupiter Global Equities USD 5,773 

Jupiter North American Equities USD 23,476 

Jupiter China Sustainable Growth USD 87,049 

Jupiter Europa EUR 131,779 

Jupiter Strategic Total Return EUR 55,459 

Jupiter Global Convertibles EUR 47,334 

Jupiter Dynamic Bond EUR 3,575 

The above transaction costs include broker’s fees, custodian’s transaction specific fees, stamp duty fees, or security transaction taxes, 

where applicable. These costs are directly linked to the acquisition or sale of investments, to the extent that such costs as shown separately 

on transaction confirmations. 

These costs are included in the Statement of Net Assets as ‘Cost of investments’ and in the Statement of Operations as ‘Other expenses’. 

21. Subsequent Events 

There were no significant events after the reporting period. 

113


Additional Information 

PEA Compliance Note 

■■Notes to the Financial Statementsfor the six months ended 

(not forming part of the Notes to the Financial 

Statements) 

Jupiter European Opportunities - French PEA restriction 

Jupiter European Opportunities has been eligible to be held within a 

French ‘Plan d’Épargne en Actions’ (‘PEA’) since 6 July 2010. The Fund 

has undertaken, by virtue of the application of article 91, paragraph L of 

Annex II of the French ‘Code général des impôts’, to ensure that at least 

75% of the net assets of the Fund are permanently invested in the 

eligible securities mentioned in paragraphs a, b and c of section 1° of 

article L.221-31 of the French ‘Code monétaire et financier’. 

The Fund has been in compliance during the year under review. 

UK Tax Reporting Fund Regime 


Statements) 

All Funds are Reporting Funds for UK taxation purposes for the year 

ended 30 September 2012. Tax reporting information for the year end 

in respect of these Funds is available at www.jupiteronline.com. 

Risk management disclosures 


Statements) 

The commitment approach 

The following Funds use the commitment approach in order to monitor 

and measure their global exposure: 












Jupiter Dynamic Bond Fund 

The VAR approach 

The following Funds uses the Value-at-Risk (‘VaR’) approach in order 

to monitor and measure their global exposure: 

The VaR figures have been calculated based on the following 

input data: 

- VaR method: Historical simulation 

- Confidence interval: 99% 

- Analysis time horizon: One month (20 days) 

- Time series extension: 1 year 


Methodology: Relative VaR 

Benchmark applied: FTSE All World Financials index 

CSSF Limit: 200% 

The utilisation of VaR from 1 October 2011 to 30 September 2012 was 

as follows: 

- MIN: 47.4% 

- MAX: 154.0% 

- AVERAGE: 87.9% 

The average leverage used, computed with commitment approach, 

was 19%. 


Methodology: Absolute VaR 



as follows: 

- MIN: 2.71% 

- MAX: 10.58% 



was 72%. 


Methodology: Absolute VaR 



as follows: 

- MIN: 0.53% 

- MAX: 1.48% 



was 102%. 

114


Notice of Meeting 

■■The Jupiter Global Fund (a société d’investissement à capital variable incorporated in, and under 

the law of, the Grand Duchy of Luxembourg with number B 110.737) 

Notice of Meeting of Annual General Meeting of Shareholders 

NOTICE is hereby given to the shareholders in The Jupiter Global Fund that the ANNUAL GENERAL MEETING of The Jupiter Global Fund will 

be held at its registered office at 16, Boulevard d’Avranches, L-1160 Luxembourg at 10 am (Luxembourg time) on 11 January 2013 for the purpose 

of considering and voting upon the following matters: 

AGENDA 

1 Acceptance of the Chairman’s Review Statement and the Independent Auditor’s Report and approval of the financial statements for the 

year ended 30 September 2012. 

2 Dividend distribution. 

3 Discharge of the Board of Directors. 

4 Election of Mrs Paula Moore and re-election of Mr Adrian Creedy, Maître Jacques Elvinger, Mr Garth Lorimer Turner and Mr Patrick 

Zurstrassen as Directors. 

5 Re-election of the Independent Auditor. 

6 Approval of Directors’ fees of 75,000 Euro net from 1 January to 31 December 2013. 

By Order of the Board of Directors 

14 November 2012 

Registered office: 



Notes: 

1 If you cannot be personally present at the Annual General Meeting, please sign and date the enclosed form of proxy and return it to the 

administrator, HSBC Securities Services (Luxembourg) S.A., 16, Boulevard d’Avranches, L-1160 Luxembourg. To be valid, forms of proxy 

must be received by 11 January 2013. Completion and return of a form of proxy will not prevent a Shareholder from attending the meeting 

and voting in person. 

2 Under Luxembourg law, there is no quorum requirement at the Annual General Meeting and to be validly passed, the resolutions require 

approval of a majority of the votes cast (whether in person or by proxy). 

3 The Annual Report (which includes the Chairman’s Review Statement, the Independent Auditor’s Report and the financial statements) are 

available to Shareholders at the registered office of the Company, the Custodian and from every Paying Agent and Distributor and are also 

available at www.jupiterinternational.com 

115


Form of Proxy 

■■The Jupiter Global Fund (a société d’investissement à capital variable incorporated in, and under 

the law of, the Grand Duchy of Luxembourg with number B 110.737) 

Form of Proxy for use at the Annual General Meeting of Shareholders in The Jupiter Global Fund to be held on 

11 January 2013 

PLEASE COMPLETE IN BLOCK CAPITALS 

I/We 

of 

Account no: 

being a shareholder in The Jupiter Global Fund hereby appoints the Chairman of the meeting or (see note iv) the following person: 

my/our proxy to vote on my/our behalf on the resolutions to be proposed at the Annual General Meeting of the Company to be held at 10 am 

(Luxembourg time) on 11 January 2013 at 16 Boulevard d’Avranches, L-1160 Luxembourg and at any adjournment thereof. My/our proxy shall 

vote on the resolutions to be proposed at the Annual General Meeting as indicated below or in the absence of any such indication, my/our proxy 

shall vote or abstain as he thinks fit. 

Please indicate with an ‘X’ in the spaces below how you wish your votes to be cast at the Annual General Meeting. Subject to any voting 

instructions so given, the proxy will vote on the resolution and such other business as may properly come before the meeting as he/ 

she may think fit. 

Resolution For Against 

Report and accounts 

Dividend distribution 

Discharge of Directors 

Election and re-election of Directors 

Re-election of the Independent Auditor 

Approval of Directors’ fees 

to be 

Signed this day of 2013 

Signature(s) of shareholder(s) 

Notes: 

(i) If there is more than one shareholder, the signature of any one holder will be sufficient but the names of ALL joint shareholders should be 

included in full. 

(ii) Proxies need not be a shareholder. Completion and return of a form of proxy will not prevent a shareholder from attending the meeting and 

voting in person. 

(iii) An instrument appointing a proxy must be in writing under the hand of the appointor or attorney authorised in writing, or if the appointor is a 

corporation, either under its seal or under the hand of the officer, attorney or other person authorised to sign it. 

(iv) Shareholders wishing to appoint their own proxy, should cross out the words ‘the Chairman of the meeting or’ and then insert the name of their 

proxy. Any alteration should be initialled by the persons who sign this form. 

(v) To be valid, this form of proxy must reach the office of HSBC Securities Services (Luxembourg) S.A., 16, Boulevard d’Avranches, L-1160 

Luxembourg, no later than the close of business (Luxembourg time) 48 hours prior to the meeting.

1399-12.12

The Jupiter Global Fund - Jupiter Asset Management

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