木星收益信託 ( 本基金之配息來源可能為本金 ) Jupiter Income Trust 基金年度報表 年度財務報表 ( 會計年度結束於 2017 年 12 月 31 日 )

Transcription

1 年度財務報表 ( 會計年度結束於 2017 年 12 月 31 日 ) 木星收益信託 ( 本基金之配息來源可能為本金 ) Jupiter Income Trust 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 0 / 13 基金年度報表 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用

2 木星收益信託 ( 本基金之配息來源可能為本金 ) (Jupiter Income Trust) 投資目標 主要投資於英國股票和具固定收益性質之證券, 少部份則投資於英國以外, 以期達到在考量到通膨因素下, 仍能創造出高收益的回報 基金狀態 基金績效變化與同類型基金排名 ( 自成立日至 2017/12/31) 1 年 3 年 5 年 10 年 發行至今 * 績效成長 % 同類基金排名 54/85 11/79 18/75 41/56 1/8 四分位排名 3rd 1st 1st 3rd 1st 資料來源 :Financial Express, 零售類股,bid to bid, net income reinvested. * 基金發行日 :1987 年 08 月 03 日 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 1 / 13

3 董事 木星單位信託管理有限公司之董事如下 : R Corfield P M Moore R V Parker N Ring A Sargent 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 2 / 13

4 比較表 每單位淨資產變動 績效 日期 2017/12/ /12/ /12/31 期初每單位資產淨值 p p p 營業費用前收益 * 59.52p 95.40p 16.62p 營業費用 (9.53p) (8.53p) (8.38p) 營業費用後收益 * 49.99p 86.87p 8.24p 單位收益分配 (21.53p) (20.04p) (18.48p) 期末每單位資產淨值 p p p * 之後的直接交易成本 0.36p 0.75p 0.20p 扣除費用後報酬率 9.23% 18.30% 1.70% 其他資訊 期末淨資產價值 ( 單位 : 仟元 ) 1,358,686 1,366,328 1,299,692 期末單位數 238,335, ,131, ,743,423 營業費用 1.69% 1.69% 1.69% 直接交易成本 0.06% 0.15% 0.04% 價格 最高單位價格 p p p 最低單位價格 p p p 基金投資組合週轉率 2017/1/1~ 2017/12/ /1/1~ 2016/12/31 投資組合週轉率 11.20% 32.09% 總費用比率此費用指的是基金營運與操作時的成本, 包括行銷與分銷成本 費用將會降低潛在的投資成長幅度 2017/1/1~ 2017/12/ /1/1~ 2016/12/31 零售類股 - 總費用比率 ( 年化 ) 1.69% 1.69% 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 3 / 13

5 持股明細表 ( 至 2017/12/31) 持股數投資標的 # 市值 ( 英鎊 ) 佔總資產比率 % 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 4 / 13

6 持股明細表 ( 至 2017/12/31)( 接上頁 ) 持股數投資標的 # 市值 ( 英鎊 ) 佔總資產比率 % 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 5 / 13

7 持股明細表 ( 至 2017/12/31)( 接上頁 ) 持股數投資標的 # 市值 ( 英鎊 ) 佔總資產比率 % 投資組合資產總值 其他資產價值 淨資產價值 所持股份除非特別敘明, 原則上為普通股或股票單位 #: 括弧內數字為前一會計年度結束於 2016 年 12 月 31 日時之投資比重 *: 代表未上市證券 : 代表未核准證券 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 6 / 13

8 前 10 大買進與賣出持股一覽 ( 期間自 2017/1/1 至 2017/12/31) 買進買進成本 ( 英鎊 ) 賣出賣出金額 ( 英鎊 ) 前十名買進標的金額 其他買進標的金額 買進總金額 前十名賣出標的金額 其他賣出標的金額 賣出總金額 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 7 / 13

9 總收益報表 ( 至 2017/12/31) 2017/1/1 ~ 2017/12/ /1/1 ~ 2016/12/31 ( 英鎊 ) ( 英鎊 ) ( 英鎊 ) ( 英鎊 ) 收益淨資本利得 157,477, ,788,065 收入 92,359,749 80,614,315 費用 (32,770,756) (28,416,762) 應付利息和費用 (9) (5) 稅前淨收益 59,588,984 52,197,548 所得稅 (1,355,588) (1,186,073) 稅後淨收益 58,233,396 51,011,475 收益分配前總收益 215,710, ,799,540 配息 / 資本增值 (90,744,244) (79,176,821) 基金受益人之資產變動額 124,966, ,622,719 基金受益人淨資產變動表 ( 至 2017/12/31) 2017/1/1 ~ 2017/12/ /1/1 ~ 2016/12/31 ( 英鎊 ) ( 英鎊 ) ( 英鎊 ) ( 英鎊 ) 年初淨資產總值 2,243,105,503 1,845,454,731 新增申購基金單位總金額 202,762, ,903,625 贖回基金單位總金額 (113,099,698) (142,289,138) 89,662, ,614,487 詳上表基金受益人之資產變動額 124,966, ,622,719 資本增值型單位保留收益 2,796,487 1,368,141 未分配收益 49,150 45,425 年末淨資產總值 2,460,580,370 2,243,105,503 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 8 / 13

10 資產負債表 至 2017/12/31 至 2016/12/31 ( 英鎊 ) ( 英鎊 ) 資產投資 2,386,847,150 2,116,942,547 流動資產 : 應收帳款 9,350,678 7,972,584 短期存款 10,000,000 49,800,000 現金及銀行餘額 96,503, ,531,216 資產總計 2,502,703,745 2,280,246,347 負債應付帳款 : 應付收益分配 (39,958,645) (35,368,139) 其它應付款 (2,164,730) (1,772,705) 負債總計 (42,123,375) (37,140,844) 基金受益人淨資產價值 2,460,580,370 2,243,105,503 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 9 / 13

11 基金獨立查核機構出示意見 本財務報告已依據授權基金建議實務說明 金融行為監管局之集合投資計畫資料手冊規則及信託契約妥善編製 ; 管理機構報告與本財務報告一致 ; 沒有任何跡象顯示適當之會計紀錄未被保存或該財務報告與前開紀錄不一致 ; 及 就我們最佳之認知及相信, 我們已獲悉所有本稽核所需之資訊及解釋 Ernst & Young LLP Statutory Auditor Edinburgh 19 February 2018 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 10 / 13

12 基金之經理 註冊 與管理機構 Jupiter Unit Trust Managers Limited PO Box Chelmsford CM99 2BG Tel: Fax: 登記地址 The Zig Zag Building 70 Victoria Street London SW1E 6SQ 受英國金融行為監管局規管 受託機構 National Westminster Bank plc Trustee and Depositary Services Floor Bishopsgate London EC2M 4RB 受英國審慎監管局核准並受金融行為監管局與審慎監管局規管 投資顧問 Jupiter Asset Management Limited The Zig Zag Building 70 Victoria Street London SW1E 6SQ 受英國金融行為監管局規管 查核機構 PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 11 / 13

13 本基金財務報告中文簡譯本內容與英文版財務報告如有任何歧異, 應以英文版財務報告為主 本基金財務報告中文簡譯本僅供投資人參考用 12 / 13

14 For the year ended 31 December 2017 ANNUAL Report & Accounts ON THE PLANET TO PERFORM 1 On the planet to perform

15

16 Contents Fund Information* 1 Investment Review* 2 Directors* 3 Responsible Stewardship* 3 Other Information 3 Warning to Unitholders 3 Remuneration and Tax Information Reporting 4 Comparative Tables 5 Portfolio Statement* 8 Top 10 Purchases and Sales 11 Statement of Authorised Fund Manager s Responsibility in relation to the Financial Statements of the Scheme 12 Statement of Trustee s Responsibility in relation to the Financial Statements of the Scheme 12 Report of the Trustee 12 Independent Auditors Report 13 Statement of Total Return 15 Statement of Change in Net Assets Attributable to Unitholders 15 Balance Sheet 16 Directors Statement 16 Notes to the Financial Statements 17 Distribution Tables 27 General Information* 29 *These collectively comprise the Authorised Fund Manager s Report

17 ANNUAL REPORT Jupiter Income Trust For the year ended 31 December 2017 Fund Information Investment Objective To produce a high income, increasing at least in line with inflation, from a managed portfolio chiefly invested in UK equities and fixed interest stocks, although with some overseas exposure. Investment Policy To invest principally in the UK in high quality companies with above average income and sound prospects. The Manager has the power to use derivatives but it is intended that these will only be used for efficient portfolio management and not for investment purposes. Status The Trust operates under the Investment Funds Sourcebook (FUND) where applicable and the Collective Investment Schemes Sourcebook (COLL) of the Financial Conduct Authority. The Trust is an authorised unit trust scheme under section 237 of the Financial Services and Markets Act 2000 and is a UCITS scheme as defined by the COLL rules. It is in the UK Equity Income Investment Association sector. The Trust is a qualifying fund for inclusion within a stocks and shares Individual Savings Account (ISA). It is the Manager s intention to continue to manage the affairs of the Trust in order to meet the qualifying requirements as outlined in current legislation. Unit Classes In addition to the basic class of units which are available to all types of investors, the Trust also offers I-Class units which are available to investors who invest a minimum of 5,000,000 and Z-Class units which are available to investors who invest a minimum of 125,000,000. Further details are available from the Manager on request. Please note that in order to distinguish between the unit classes within the Trust they are defined in this report as either Retail Units (non I-Class and non Z-Class) or I-Class Units or Z-Class units. The unit types associated with each unit class are disclosed in the Comparative Tables on pages 4 and 5. Change of Auditor With effect from 24 November 2017 the Fund s Auditor changed from Ernst & Young LLP to PricewaterhouseCoopers LLP. Cumulative Performance (% change to 31 December 2017) 1 year 3 years 5 years 10 years Since launch* Percentage Growth , Sector position 54/85 11/79 18/75 41/56 1/8 Quartile ranking 3rd 1st 1st 3rd 1st Source: FE, I-Class Units, bid to bid, net income reinvested. *Launch date 3 August This document is for informational purposes only and is not investment advice. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice. Current tax levels and reliefs will depend on your individual circumstances and are subject to change in the future. Past performance is no guide to the future. All of the Trust s expenses are charged to capital. This has had the effect of increasing the distributions paid on an annualised basis on Retail Units by up to 1.69% of the class average Net Asset Value during the period under review (I-Class Units 0.94% and Z-Class Units 0.84%) and constraining the class capital performance to an equivalent extent. For definitions please see the glossary at jupiteram. com. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. Company examples are for illustrative purposes only and are not a recommendation to buy or sell. Quoted yields are not guaranteed and may change in the future. Jupiter Unit Trust Managers Limited is authorised and regulated by the Financial Conduct Authority and their registered address is The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ. 1

18 Investment Review Performance Review For the year ended 31 December 2017 the total return on the units was 10.1%* compared with a rise of 13.1%* for the FTSE All-Share Index, which is the fund s benchmark. Over five years the fund has risen 77.5%* compared with a rise of 63.0%* for the same benchmark. The fund was ranked 54th out of 85 funds in its universe of comparable funds over one year and 18th out of 75 over five years in the IA UK Equity Income sector. *Source: FE, bid to bid, net income re-invested. The statistics disclosed above relate to I-Class Units unless otherwise stated. Dividends A final distribution of will be paid to holders of Retail income units on 28 February 2018, bringing the total paid in respect of the period under review for Retail income units of , compared to for the same period last year. Also, for holders of I-Class income units a final distribution of per unit will be paid on 28 February 2018 (I-Class accumulation units ) bringing the total paid in respect of the period under review to for I-Class income units (I-Class accumulation units ), compared to for I-Class income units (I-Class accumulation units ) for the same period last year. Market and Policy Review There were varying levels of concern over the period as to whether Donald Trump would enact his promised economic reforms and what the impact of Brexit would be on the UK economy. The Chinese and Asian economies did better than anticipated at the start of the year. These overall concerns led to a poor environment for value based investing with the best returns coming from shares that already have very lofty valuations. The fund is run with a value style selecting lowly valued securities and this made for an overall difficult environment with returns less than the benchmark. I am looking to purchase a diversified list of statistically cheap stocks. This is achieved by using two value based screens to provide a pool of potential investments. The characteristics of each company are then analysed. We look for the ability of a company to generate cash as opposed to profits, the margin of safety in the valuation and the ability of the balance sheet to cope with unanticipated events. Importantly, the investment process concentrates on measuring value and not on forecasting the future earnings of a company or those of individual economies. New holdings or additions were made in WPP, Imperial Brands, Marks & Sr, Pearson, Stagecoach Aggreko, Capita and Ralph Lauren. All these businesses are facing issues and in most cases a new management team are aiming to address them and restore shareholder value. Capita has repaired the balance sheet by disposing of a business, appointed a new Chairman and CEO, adopted more conservative accounting and a new strategy. Ralph Lauren is shrinking the number of brands, retail square footage and stock to restore value to this global consumer brand. These purchases were funded by the complete sales of RELX, Schroders NV, National Express, Coach, Hansteen and the partial sales of Hiscox and Wolters Kluwer. Investment Outlook The sharp rise in stock markets has left the median Graham and Dodd Price/Earnings ratio in the UK stock market at c.20x (over 25x on a similar accounting basis to the US). This long term measure of value divides the current value of each company by its average earnings over the last ten years. This attempts to capture a business cycle and hence how lowly or highly valued a company is over a cycle rather than just at a one moment in time. The area of greater concern is the US stock market which has a Graham and Dodd Price/ Earnings ratio of 33x. This exceeds the peak levels in 1929 but not quite that of The Graham and Dodd valuation of the fund is approximately 11x, a very substantial discount to the average valuation. These low valuations are found particularly in financials, commodities and consumer services. Conversely, stocks with high levels of growth or low volatility of profits (consumer staples) are very highly valued and the fund has little exposure. Whilst the fund has some more economic risk than average, it comes with a very low valuation compared to the UK stock market. Ben Whitmore Fund Manager 2

19 Directors The Directors of Jupiter Unit Trust Managers Limited are: R Corfield P M Moore R V Parker N Ring A Sargent Responsible Stewardship Jupiter believes that responsible stewardship is an important issue and aims to act in the best interests of all its stakeholders by engaging with the companies that it invests in, and by exercising its voting rights with care. We believe companies with high standards of corporate responsibility, governance and sustainable business practices create an appropriate culture to enhance good investment performance. Jupiter s Corporate Governance and Voting Policy and its compliance with the UK Stewardship Code, together with supporting disclosure reports are available at Other Information This document contains information based on the FTSE All-Share Index and the Industry Classification Benchmark (ICB). FTSE is a trade mark owned by the London Stock Exchange Plc and is used by FTSE International Limited ( FTSE ) under licence. The FTSE All-Share Index is calculated by FTSE. FTSE does not sponsor, endorse or promote the product referred to in this document and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. All copyright and database rights in the index values and constituent list vest in FTSE. The ICB is a product of FTSE and all intellectual property rights in and to ICB vest in FTSE. Jupiter Asset Management Limited has been licensed by FTSE to use ICB. FTSE and its licensors do not accept liability to any person for any loss or damage arising out of any error or omission in ICB. Warning to Unitholders Customers of financial institutions can be prone to attempts by fraudsters to obtain personal information or money. There are many ways they can initiate contact, such as s, letters and cold calls, but methods are constantly evolving so it is important that you are aware of the types of scams so that you are better able to protect yourself. Please visit our website or call for further information. 3

20 Remuneration Following the implementation of the UCITS V Directive Jupiter Unit Trust Managers Limited (JUTM) is required to have a remuneration policy in place consistent with the principles outlined in SYSC 19E of the FCA Handbook (UCITS Remuneration Code). Details of the remuneration policy, including the applicable financial and nonfinancial criteria, are set out in the detailed remuneration policy disclosures available on the Jupiter website: Management-plc/Governance/Risk-management The quantitative remuneration disclosures required under the UCITS V Directive will be reported after the end of the 2017 performance year as prior to that date not all of the required information will be available. Tax Information Reporting UK tax legislation requires fund managers to provide information to HMRC on certain investors who purchase units in unit trusts. Accordingly, the fund may have to provide information annually to HMRC on the tax residencies of those unitholders that are tax resident out with the UK, in those countries that have signed up to the OECD s ( Organisation for Economic Cooperation and Development ) Common Reporting Standard for Automatic Exchange of Financial Account Information (the Common Reporting Standard ), or the United States (under the Foreign Account Tax Compliance Act, FATCA ). All new unitholders that invest in the fund must complete a certification form as part of the application form. Existing unitholders may also be contacted by the Registrar should any extra information be needed to correctly determine their tax residence. Failure to provide this information may result in the account being reported to HMRC. For further information, please see HMRC s Quick Guide: Automatic Exchange of Information information for account holders: gov.uk/government/publications/ exchange-of-information-account-holders. 4

21 Comparative Tables Change in net assets Retail Income I-Class Income Opening net asset value p p p p p p Return before operating charges* 59.52p 95.40p 16.62p 62.07p p 17.04p Operating charges (9.53p) (8.53p) (8.38p) (5.61p) (5.01p) (4.85p) Return after operating charges* 49.99p 86.87p 8.24p 56.46p 95.96p 12.19p Distributions on income unit (21.53p) (20.04p) (18.48p) (22.76p) (21.02p) (19.19p) Closing net asset value p p p p p p *after direct transaction costs of: 0.36p 0.75p 0.20p 0.38p 0.79p 0.20p Performance Return after charges 9.23% 18.30% 1.70% 9.90% 19.36% 2.43% Other information Closing net asset value ('000) 1,358,686 1,366,328 1,299, , , ,493 Closing number of units 238,335, ,131, ,743, ,633, ,855, ,232,367 Operating charges 1.69% 1.69% 1.69% 0.94% 0.94% 0.94% Direct transaction costs 0.06% 0.15% 0.04% 0.06% 0.15% 0.04% Prices Highest unit price p p p p p p Lowest unit price p p p p p p Change in net assets Z-Class Income** Opening net asset value p p p Return before operating charges* 62.24p p (27.36p) Operating charges (5.04p) (4.38p) (2.90p) Return after operating charges* 57.20p 96.58p (30.26p) Distributions on income unit (22.78p) (21.05p) (18.92p) Closing net asset value p p p *after direct transaction costs of: 0.38p 0.77p 0.20p Performance Return after charges 10.01% 19.47% (5.55%) Other information Closing net asset value ('000) 37, ,550 Closing number of units 6,269,334 85, ,490 Operating charges 0.84% 0.84% 0.84% Direct transaction costs 0.06% 0.15% 0.04% Prices Highest unit price p p p Lowest unit price p p p **Z-Class Income and Accumulation units were introduced on 24 April

22 Comparative Tables continued Change in net assets I-Class Accumulation Z-Class Accumulation** Opening net asset value p p p p p p Return before operating charges* 77.98p p 19.75p 78.68p p (30.57p) Operating charges (7.06p) (6.14p) (5.65p) (6.50p) (5.03p) (3.17p) Return after operating charges* 70.92p p 14.10p 72.18p p (33.74p) Distributions on accumulation units (28.55p) (25.39p) (22.31p) (28.66p) (25.43p) (22.27p) Retained distributions on accumulation units 28.55p 25.39p 22.31p 28.66p 25.43p 22.27p Closing net asset value p p p p p p *after direct transaction costs of: 0.48p 0.97p 0.24p 0.49p 0.95p 0.23p Performance Return after charges 9.99% 19.68% 2.44% 10.14% 19.86% (5.38%) Other information Closing net asset value ('000) 68,278 44,844 17,719 12, Closing number of units 8,746,024 6,322,869 2,987,895 1,647, Operating charges 0.94% 0.94% 0.94% 0.84% 0.84% 0.84% Direct transaction costs 0.06% 0.15% 0.04% 0.06% 0.15% 0.04% Prices Highest unit price p p p p p p Lowest unit price p p p p p p ** Z-Class Income and Accumulation units were introduced on 24 April

23 Comparative Tables continued Portfolio Turnover Rate The Portfolio Turnover Rate (PTR) of the Trust, based on the figures included within the financial statements for the period as indicated below, is as follows: Year to Year to Portfolio Turnover Rate 11.20% 32.09% The PTR provides an indication of the rate the Manager has bought and sold the underlying assets of the Trust during the period as indicated above. In general, the higher the PTR of a fund, the greater level of portfolio transaction costs will be incurred. Risk and reward indicator The Risk and Reward Indicator table demonstrates where the Trust ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Trust. The shaded area in the table below shows the Trust s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk Retail Units I-Class Units Z-Class Units The lowest category does not mean no risk. Some risk will still be present in funds with a risk and reward rating of 1. The Trust is in this category as it invests in a wide range of company shares, which carry a degree of risk. Charges The charges you pay are used to pay the costs of running the Trust, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. Charges taken from the Fund over the year to: Ongoing charges for Retail Units 1.69% 1.69% Ongoing charges for I-Class Units 0.94% 0.94% Ongoing charges for Z-Class Units 0.84% 0.84% 7

24 Portfolio Statement as at 31 December 2017 Holding Portfolio of investments# Market value % of Total net assets UNITED KINGDOM 79.53% (78.09%) Basic Materials 3.13% (1.72%) Mining 3.13% 5,000,000 Anglo American 77,000, Consumer Goods 4.60% (4.86%) Beverages 1.65% 1,500,000 Diageo 40,582, Tobacco 2.95% 2,300,000 Imperial Brands 72,668, Consumer Services 17.29% (16.71%) Food & Drug Retailers 2.96% 35,000,000 Tesco 72,887, General Retailers 3.80% 8,000,000 Halfords 28,056, ,000,000 Marks & Sr 65,457, Media 6.08% 14,000,000 Pearson 102,620, ,000 RELX 6,920, ,000,000 WPP 40,140, Travel & Leisure 4.45% 34,000,000 FirstGroup 37,978, ,000,000 Ladbrokes Coral 59,994, ,000,000 Stagecoach 11,592, Financials 21.62% (22.26%) Banks 10.40% 17,000,000 HSBC Holdings (London listed) 129,829, ,500,000 Royal Bank of Scotland 48,510, ,000,000 Standard Chartered 77,420, Equity Investment Instruments 0.00% 5,000,000 European Monthly Income Trust* Financial Services 2.41% 14,686,119 Ashmore 59,214, General Financial 2.86% 13,170,805 TP ICAP 70,463, Life Insurance 5.60% 22,000,000 Aviva 110,550, ,000,000 Legal & General 27,330, Non Life Insurance 0.35% 600,000 HISCOX 8,712,

25 Portfolio Statement continued Holding Healthcare 6.30% (7.50%) Portfolio of investments# Pharmaceuticals & Biotechnology 6.30% Market value % of Total net assets 1,500,000 AstraZeneca 76,140, ,000,000 GlaxoSmithKline 78,750, ,840,171 TMO Renewables Placing* 285,714 TMO Renewables Private Placing Warrants* Industrials 11.32% (7.85%) Aerospace & Defence 2.91% 12,500,000 BAE Systems 71,500, General Industrials 4.49% 4,000,000 NEX 24,240, ,800,000 Smith 86,130, Support Services 3.92% 6,000,000 Aggreko 47,670, ,000,000 Capita 48,684, Oil & Gas 8.35% (8.64%) Oil & Gas Producers 8.35% 30,000,000 BP 155,850, ,000,000 Royal Dutch Shell 'B' 49,730, Telecommunications 4.03% (4.59%) Fixed Line Telecommunications 1.47% 13,500,000 BT 36,254, Mobile Telecommunications 2.56% 27,000,000 Vodafone 63,072, Utilities 2.89% (3.96%) Gas, Water & Multiutilities 2.89% 52,000,000 Centrica 71,084,

26 Portfolio Statement continued Holding Portfolio of investments# Market value % of Total net assets OVERSEAS 17.47% (16.29%) Australia 2.40% (2.07%) 29,000,000 South32 59,160, Eire 0.00% (0.00%) 4,911,980 Anglo Irish Bank* Netherlands 1.80% (2.76%) 1,144,711 Wolters Kluwer Certificates 44,339, United States 13.27% (11.46%) 3,100,000 Cisco Systems 88,522, ,500,000 Ericsson B 80,339, ,100,000 H & R Block 41,283, ,500,000 HP 23,470, ,000 Ralph Lauren 53,158, ,000,000 Verizon Communications 39,547, Portfolio of investments 2,386,849, Net other assets 73,731, Net assets 2,460,580, All holdings are ordinary shares or stock units unless otherwise stated. The sectors as shown are based on the Industry Classification Benchmark (see page 3). #The figures in brackets show allocations as at 31 December *Represents an unquoted security. Represents an unapproved security. 10

27 Top 10 Purchases and Sales The top 10 purchases and sales for the year ended 31 December 2017 Purchases Cost Sales Proceeds Capita 59,146,101 Hansteen Holdings 41,476,438 Aggreko 51,923,228 RELX 39,926,408 WPP 39,755,045 Tapestry 35,886,866 Ralph Lauren 38,893,999 Wolters Kluwer Certificates 31,588,567 Centrica 26,604,373 HISCOX 25,937,043 Ericsson B 23,279,946 National Express 11,487,652 Pearson 18,858,827 AstraZeneca 10,325,067 Anglo American 17,796,578 TP ICAP 9,566,513 Smith 10,594,749 NEX 8,606,445 Stagecoach 9,946,836 BAE Systems 6,597,395 Total top 10 purchases 296,799,682 Total top 10 sales 221,398,394 Remaining purchases 50,436,095 Remaining sales 13,482,563 Total purchases 347,235,777 Total sales 234,880,957 11

28 Statement of Authorised Fund Manager s responsibilities in relation to the financial statements of the Scheme The Financial Conduct Authority s Collective Investment Schemes (COLL) and where applicable Investment Funds (FUND) Sourcebooks, as amended (the Sourcebooks) require the Authorised Fund Manager (the Manager ) to prepare financial statements for each annual accounting period which give a true and fair view of the financial affairs of the Scheme and of its revenue and expenditure for the period. In preparing the financial statements the Manager is required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; prepare the accounts on a going concern basis, unless it is inappropriate to do so; comply with the requirements of the Statement of Recommended Practice for Authorised Funds; follow applicable accounting standards; and keep proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements. The Manager is responsible for the management of the Scheme in accordance with the Sourcebooks and the Scheme s Trust Deed and Prospectus. The Manager is also responsible for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of Trustee s responsibilities in relation to the financial statements of the Scheme The Trustee must in the context of its role act honestly, fairly, professionally, independently and in the interests of the Scheme and its investors. The Trustee is responsible for the safekeeping of all custodial assets and maintaining a record of all other assets of the Scheme in accordance with the Regulations. The Trustee must ensure that: the Scheme s cash flows are properly monitored and that cash of the Scheme is booked into the cash accounts in accordance with the Regulations; the sale, issue, redemption and cancellation of units are carried out in accordance with the Regulations; the value of units of the Scheme are calculated in accordance with the Regulations; any consideration relating to transactions in the Scheme s assets is remitted to the Scheme within the usual time limits; the Schemes income is applied in accordance with the Regulations; and the instructions of the Authorised Fund Manager (the AFM ) are carried out (unless they conflict with the Regulations). The Trustee also has a duty to take reasonable care to ensure that the Scheme is managed in accordance with the Regulations and the Scheme documents in relation to the investment and borrowing powers applicable to the Scheme. A copy of the Report of Trustee is set out below. Report of the Trustee Jupiter Income Trust Having carried out such procedures as we considered necessary to discharge our responsibilities as Trustee of the Scheme, it is our opinion, based on information available to us and explanations provided, that, in all material respects, acting through the AFM: has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Scheme s units and the application of the Scheme s revenue in accordance with the Regulations and the Scheme Documents; and has observed the investment and borrowing powers and restrictions applicable to the Scheme. National Westminster Bank plc Trustee & Depositary Services London 19 February

29 Independent Auditors Report to the Unitholders of the Jupiter Income Trust Report on the audit of the financial statements Opinion In our opinion, the Jupiter Income Trust s financial statements (the financial statements ): give a true and fair view of the financial position of the Trust as at 31 December 2017 and of the net revenue and the net capital gains of its scheme property for the year then ended; and have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law, the Statement of Recommended Practice for UK Authorised Funds, the Collective Investment Schemes sourcebook and the Trust Deed. We have audited the financial statements, included within the Annual Report, which comprise: the balance sheet as at 31 December 2017; the statement of total return and the statement of change in net assets attributable to unitholders for the year then ended; the notes to the financial statements, which include a description of the significant accounting policies; and the distribution tables. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) ( ISAs (UK) ) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remained independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you when: the Authorised Fund Manager s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the Authorised Fund Manager has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Trust s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Trust s ability to continue as a going concern. Reporting on other information The other information comprises all of the information in the Annual Report other than the financial statements and our auditors report thereon. The Authorised Fund Manager is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities. Authorised Fund Manager s Report In our opinion, the information given in the Authorised Fund Manager s Report for the financial year for which the financial statements are prepared is consistent with the financial statements. 13

30 Independent Auditor s Report to the Unitholders of the Jupiter Income Trust continued Responsibilities for the financial statements and the audit Responsibilities of the Authorised Fund Manager for the financial statements As explained more fully in the Authorised Fund Manager s Responsibilities Statement set out on page 12, the Authorised Fund Manager is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Authorised Fund Manager is also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Authorised Fund Manager is responsible for assessing the Trust s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Authorised Fund Manager either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so. Auditors responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council s website at: auditorsresponsibilities. This description forms part of our auditors report. Use of this report This report, including the opinions, has been prepared for and only for the Trust s unitholders as a body in accordance with paragraph of the Collective Investment Schemes sourcebook and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Other required reporting Opinion on matter required by the Collective Investment Schemes sourcebook In our opinion, we have obtained all the information and explanations we consider necessary for the purposes of the audit. Collective Investment Schemes sourcebook exception reporting Under the Collective Investment Schemes sourcebook we are required to report to you if, in our opinion: proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 19 February

31 Statement of Total Return for the year ended 31 December 2017 Year to Year to Note Income Net capital gains 3 157,477, ,788,065 Revenue 4 92,359,749 80,614,315 Expenses 5 (32,770,756) (28,416,762) Interest payable and similar charges (9) (5) Net revenue before taxation 59,588,984 52,197,548 Taxation 6 (1,355,588) (1,186,073) Net revenue after taxation 58,233,396 51,011,475 Total return before distributions 215,710, ,799,540 Distributions 7 (90,744,244) (79,176,821) Change in net assets attributable to unitholders from investment activities 124,966, ,622,719 Statement of Change in Net Assets Attributable to Unitholders for the year ended 31 December 2017 Year to Year to Opening net assets attributable to unitholders 2,243,105,503 1,845,454,731 Amounts receivable on issue of units 202,762, ,903,625 Amounts payable on cancellation of units (113,099,698) (142,289,138) 89,662, ,614,487 Change in net assets attributable to unitholders from investment activities (see statement of total return above) Retained distribution on accumulation units 124,966, ,622,719 2,796,487 1,368,141 Unclaimed distributions 49,150 45,425 Closing net assets attributable to unitholders 2,460,580,370 2,243,105,503 15

32 Balance Sheet as at 31 December Note Assets Investments 2,386,849,150 2,116,942,547 Current Assets: Debtors 8 9,350,678 7,972,584 Short term deposits 10,000,000 49,800,000 Cash and bank balances 96,503, ,531,216 Total assets 2,502,703,745 2,280,246,347 Liabilities Creditors: Distribution payable (39,958,645) (35,368,139) Other creditors 9 (2,164,730) (1,772,705) Total liabilities (42,123,375) (37,140,844) Net assets attributable to unitholders 2,460,580,370 2,243,105,503 Directors Statement Jupiter Income Trust This report has been prepared in accordance with the requirements of the Financial Conduct Authority s Collective Investment Schemes Sourcebook and Investment Funds Sourcebook where applicable and the Statement of Recommended Practice issued by the Investment Association. Directors: Paula Moore, Robert Parker Jupiter Unit Trust Managers Limited London 19 February

33 Notes to the Financial Statements for the year ended 31 December Accounting Policies (a) Basis of Accounting The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments, in compliance with the Financial Conduct Authority s Collective Investment Schemes sourcebook. They have been prepared in accordance with FRS102 and the Statement of Recommended Practice for Authorised Funds (SORP) for Financial Statements of Authorised Funds issued by The Investment Management Association (now referred to as the Investment Association) in May 2014 (the 2014 SORP). As stated in the Statement of Managers Responsibilities in relation to the Report and Financial Statements of the Fund on page 12, the Manager continues to adopt the going concern basis in the preparation of the financial statements of the Fund. The accounting policies outlined below have been applied on a consistent basis throughout the year. (b) Revenue All dividends from companies declared ex-dividend during the year ended 31 December 2017 are included in revenue, net of any attributable tax. UK dividends are shown net of any associated tax credits attached to the income. Dividends from UK REITs are split into PID (Property Income Distributions) and Non-PID components for tax purposes. Revenue arising from UK REITs tax-exempt rental business is colloquially known as PID revenue and is taxable in the hands of the Fund. A UK REIT may also carry out activities that give rise to taxable profits and gains, it is from these that the REIT will make a Non-PID distribution, these are treated for tax purposes in the same way as dividends from UK companies. Overseas revenue received after the deduction of withholding tax is shown gross of tax, with the tax consequences shown within the tax charge. Bank interest and interest on short-term deposits are accrued up to the year end date. Underwriting commission is taken to revenue and recognised when the issue takes place, except where the Fund is required to take up all or some of the shares underwritten, in which case an appropriate proportion of the commission received is deducted from the cost of the shares. Special dividends are reviewed on a case by case basis when determining if the dividend is to be treated as revenue or capital. The tax treatment follows the accounting treatment of the principal amount. (c) Short term Deposits Short term deposits are highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. (d) Expenses All expenses, including overdraft interest, but excluding those relating to the purchase and sale of investments are charged against the revenue of the Fund. All of the Fund s expenses are recognised on an accruals basis. (e) Valuation of Investments The investments of the Fund have been valued using bid market values ruling on international stock exchanges at 12 noon on 29 December 2017, being the last valuation point of the year. Market value is defined by the SORP as fair value which is generally the bid value of each security. Where a stock is unlisted or where there is a non liquid market, a valuation for this stock has been obtained from market makers where possible, and suspended stocks are normally valued at their suspension price. However, where the Manager believes that these prices do not reflect a fair value, or where no reliable price exists for a security, it is valued at a price which in the opinion of the Manager reflects a fair and reasonable price for that investment. 17

34 Notes to the Financial Statements continued 1. Accounting Policies continued (e) Valuation of Investments continued A Pricing and Valuation Committee (PVC) of the Investment Manager is responsible for approving unquoted prices. The PVC meets on a quarterly basis and consists of representatives from various parts of the Investment Manager who act as an independent party, segregated from the the fund management function to review and approve fair value pricing decisions and pricing models on a regular basis. (f) Foreign Exchange Transactions in foreign currencies are translated into Sterling at the rates ruling at the dates of the transactions. Assets and liabilities expressed in foreign currencies are translated at the rates ruling at 12 noon on 29 December 2017, being the last valuation point of the year. (g) Taxation Corporation Tax is provided at 20% on revenue, other than UK dividends and overseas dividends, after deduction of expenses. Where overseas tax has been deducted from overseas revenue that tax can, in some instances, be set off against Corporation Tax payable, by way of double taxation relief. The charge for Tax is based on the profit for the year and takes into account deferred taxation because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred Tax is provided using the liability method on all timing differences, calculated at the rate at which it is anticipated the timing differences will reverse. Deferred Tax assets are recognised only when, on the basis of available evidence, it is more likely than not that there will be taxable profits in the future against which the Deferred Tax can be offset. 2. Distribution Policies (a) Basis of Distribution All of the net revenue available for distribution at the end of the final accounting period will be distributed/ accumulated to unitholders as a dividend distribution. In order to achieve a controlled dividend flow to unitholders, interim distributions may be made at the Manager s discretion, up to a maximum of the distributable revenue available for the period. The distribution dates in respect of this Fund are summarised in Note 2(b). Should expenses and taxation together exceed revenue, there will be no distribution and the shortfall will be met from capital. If, in respect of a particular accounting period, the average income allocation to unitholders (disregarding, for this purpose, any units held by the Manager or Trustee or their associates) would be less than 25, the Manager reserves the right (with the agreement of the Trustee) not to make any income allocation and, in such an event, the amount of net revenue remaining for that period will be credited to capital and reflected in the value of units. (b) Distribution/Accumulation Dates Net revenue, if any, will be distributed or accumulated to unitholders as a dividend distribution, semi-annually on 31 August (interim) and 28 February (final) or 29 February (for leap years) in respect of the accounting periods ending 30 June (interim) and 31 December (final). (c) Expenses charged to capital for distribution purposes The Manager s periodic charge and all other expenses which were initially charged to revenue, are deducted from the capital of the Fund for the purpose of calculating any distribution/accumulation. (d) Stock Dividends The ordinary element of stock dividends is treated as revenue and forms part of any distribution/accumulation. In the case of an enhanced stock dividend, the value of the enhancement is treated as capital and does not form part of any distribution/accumulation. 18

35 Notes to the Financial Statements continued 3. Net capital gains The net gains on investments during the year comprise: Currency losses (72,207) (327,049) Transaction charges (2,455) (3,230) Gains on non-derivative securities 157,551, ,878,344 Special dividends 1,240,000 Net capital gains 157,477, ,788, Revenue UK dividends 78,013,402 69,049,946 Overseas dividends 13,048,104 10,312,593 Bank interest 16, ,498 Deposit interest 21, ,278 Revenue from REITs 1,260, ,000 Total revenue 92,359,749 80,614, Expenses Payable to the Manager, associates of the Manager and agents of either of them: Manager s periodic charge 28,164,183 24,525,592 Registration fees 4,284,534 3,605,565 32,448,717 28,131,157 Payable to the Trustee, associates of the Trustee and agents of either of them: Trustee's fee 217, ,185 Safe custody fees 85,007 59, , ,227 Other expenses: Audit fee* 10,200 16,200 Financial Conduct Authority fee Professional fee 9,600 19,957 16,378 Total expenses 32,770,756 28,416,762 *The audit fee (excluding VAT) incurred during the year was 8,500 ( : 13,500). 19

36 Notes to the Financial Statements continued 6. Taxation (a) Analysis of charge in the year: Irrecoverable overseas tax 1,355,588 1,186,073 Total tax (Note 6.(b)) 1,355,588 1,186,073 (b) Factors affecting tax charge for the year: The tax assessed for the year is lower (2016: lower) than the standard rate of Corporation Tax in the UK for an authorised unit trust. The differences are explained below: Net revenue before taxation 59,588,984 52,197,548 Corporation Tax at 20% (2016: 20%) 11,917,797 10,439,510 Effects of: Current year expenses not utilised 6,294,505 5,432,998 Revenue not subject to taxation (18,212,302) (15,872,508) Irrecoverable overseas tax 1,355,588 1,186,073 Total tax charge for the year (Note 6.(a)) 1,355,588 1,186,073 Authorised unit trusts are exempt from tax on capital gains, therefore any capital return is not included in the above reconciliation. (c) Provision for Deferred Tax At 31 December 2017 there are surplus management expenses of 542,503,435 ( : 511,030,913). It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore a Deferred Tax asset of 108,500,687 ( : 102,206,182) has not been recognised. 20

37 Notes to the Financial Statements continued 7. Distributions The distributions/accumulations take account of amounts received on the issue of units and deducted on the cancellation of units and comprise: Interim distribution/accumulation 50,027,761 43,532,166 Final distribution/accumulation 41,296,717 36,077,429 91,324,478 79,609,595 Amounts received on issue of units (1,647,047) (1,915,185) Amounts paid on cancellation of units 1,066,813 1,482,411 Net distributions/accumulations for the year 90,744,244 79,176,821 Reconciliation of net revenue after taxation to Distributions/Accumulations: Net revenue after taxation for the year 58,233,396 51,011,475 Charges borne by capital 32,770,756 28,416,762 Tax relief on capitalised expenses (259,647) (250,354) Net movement in revenue account (38) (127) Equalisation on conversions (223) (935) Net distributions/accumulations for the year 90,744,244 79,176,821 Details of the distributions/accumulations in are shown in the Distribution Tables on pages 27 and Debtors Accrued revenue 5,681,733 6,859,331 Amounts receivable for issue of units 1,800, ,676 Overseas tax recoverable 67,777 98,665 Sales awaiting settlement 1,800, ,912 Total debtors 9,350,678 7,972, Other creditors Accrued expenses 1,051, ,924 Amounts payable for cancellation of units 537, ,781 Purchases awaiting settlement 575,319 Total other creditors 2,164,730 1,772,705 21