木星生態基金 Jupiter Ecology Fund 基金年度報表 基金年度財務報表 ( 會計年度結束於 2015 年 2 月 28 日 ) 基金年度財務報表 ( 會計年度結束於 2017 年 3 月 31 日 ) 會計年度截至 2017 年 3 月 31 日

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1 基金年度財務報表 ( 會計年度結束於 2017 年 3 月 31 日 ) 基金年度財務報表 ( 會計年度結束於 2015 年 2 月 28 日 ) 木星生態基金 Jupiter Ecology Fund 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 會計年度截至 2017 年 3 月 31 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

2 木星生態基金 (Jupiter Ecology Fund) 投資目標 本基金投資於全球積極且長期關注於環境保護之公司, 以達到長期資本成長及永續收益增加, 並兼顧環境保護之政策 木星生態 I-Class 資本增值型 該單位型態成立日期於 2009 年 6 月 15 日, 首次單筆最低申購金額於 2011 年 9 月 19 日起為 500 萬英鎊 如欲進一步了解基金相關資訊, 請詳該基金之公開說明書及投資人須知, 投資人可至境外基金資訊觀測站查詢或洽總代理人詢問 基金狀態 基金績效變化與同類型基金排名 ( 自成立日至 2017/03/31) 1 年 3 年 5 年 10 年 發行至今 * 績效成長 % 同類基金排名 219/ / / /132 9/14 四分位排名 4th 4th 3rd 4th 3rd 資料來源 :Financial Express, Income Units, bid to bid, net income reinvested. * 基金發行日 :1988 年 04 月 01 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日期 2017/3/ /3/ /3/31 年初每單位資產淨值 p p p 營業費用前收益 * 72.94p 0.85p 30.88p 營業費用 (5.53p) (4.80p) (4.68p) 營業費用後收益 * 67.41p (3.95p) 26.20p 收益型單位分配 (0.47p) (0.36p) (0.36p) 年末每單位資產淨值 p p p * 之後的直接交易成本 0.06p 0.06p 0.05p 績效 扣除費用後報酬率 22.79% (1.32%) 9.55% 其他資訊 期末淨資產價值 ( 單位 : 仟元 ) 175, , ,615 期末單位數 48,506,408 55,478,156 84,504,232 營業費用 1.68% 1.68% 1.69% 直接交易成本 0.02% 0.02% 0.02% 價格 最高單位價格 p p p 最低單位價格 p p p 投資組合周轉率 2016/04/01~ 2017/3/ /04/01~ 2016/3/31 基金投資組合週轉率 4.82% 10.09% 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 2016/04/01~ 2017/3/ /04/01~ 2016/3/31 收益型 I-Class 資本增值型 * 收益型 I-Class 資本增值型 * 基金費率 1.68% 0.78% 1.68% 0.78% * 木星生態 I-Class 資本增值型 : 成立日期於 2009 年 6 月 15 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 3/13

5 投資組合明細表 ( 至 2017/03/31) 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 投資組合明細表 ( 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 投資組合明細表 ( 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 註 : 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 3 月 31 日時之投資比重 *: 代表未上市證券 : 代表未核准證券 : 代表投資木星投資管理集團有限公司的商品 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 20 大買進與賣出持股一覽 ( 期間自 2016/4/1 至 2017/3/31) 買進買進成本 ( 英鎊 ) 賣出賣出金額 ( 英鎊 ) 買進總金額 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 2017/03/31) 2016/04/01 ~ 2017/03/ /04/01 ~ 2016/03/31 ( 英鎊 ) ( 英鎊 ) ( 英鎊 ) ( 英鎊 ) 收益淨投資 ( 損失 )/ 利得 103,693,572 (6,016,286) 收入 8,273,675 7,004,838 費用 (5,468,721) (5,367,626) 應付利息和費用 (18) (11) 稅前收益 2,804,936 1,637,201 所得稅 (538,526) (403,522) 稅後收益 2,266,410 1,233,679 配息 / 資本增值前總收益 105,959,982 (4,782,607) 配息 / 資本增值 (2,754,861) (1,876,062) 基金受益人之資產變動額 103,205,121 (6,658,669) 基金受益人淨資產變動表 ( 至 2017/03/31) 2016/04/01 ~ 2017/03/ /04/01 ~ 2016/03/31 ( 英鎊 ) ( 英鎊 ) ( 英鎊 ) ( 英鎊 ) 年初淨資產總值 460,018, ,743,117 新增申購基金單位總金額 21,186,661 25,244,863 贖回基金單位總金額 (41,813,758) (38,209,445) (20,627,097) (12,964,582) 基金受益人之資產變動額 ( 詳上表 ) 103,205,121 (6,658,669) 資本增值型單位未分配收益 1,259, ,417 未分配收益 - 1,977 年末淨資產總值 543,855, ,018,260 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 2017/03/31) 至 2017/3/31 至 2016/3/31 ( 英鎊 ) ( 英鎊 ) 資產投資 513,142, ,528,330 流動資產 : 應收帳款 3,978,656 1,071,199 短期存款 4,256,003 21,592,724 現金及銀行餘額 24,815,254 21,685,592 資產總計 546,192, ,877,845 負債應付帳款 : 銀行透支 (1,369,525) (1,112,078) 應付收益分配 (293,958) (166,519) 其它應付款 (673,340) (580,988) 負債總計 (2,336,823) (1,859,585) 基金受益人淨資產價值 543,855, ,018,260 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 17 May 2017 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 木星生態基金相關機構 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 Ernst & Young LLP Ten George Street Edinburgh EH2 2DZ 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 Jupiter Ecology Fund For the year ended 31 March 2017 ANNUAL Report & Accounts ON THE PLANET TO PERFORM 1 On the planet to perform

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16 ANNUAL REPORT Jupiter Ecology Fund For the year ended 31 March 2017 Investment Objective To achieve long-term capital appreciation together with a growing income consistent with a policy of protecting the environment. Investment Policy To invest worldwide in companies which demonstrate a positive commitment to the long-term protection of the environment. 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 Fund operates under the Investment Funds Sourcebook (FUND) where applicable and the Collective Investment Schemes Sourcebook (COLL) of the Financial Conduct Authority. The Fund is an authorised unit trust scheme under Section 237 of the Financial Services and Markets Act 2000 and is a UCITS scheme as defined in the COLL rules. It is in the Global Investment Association sector. The Fund 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 Fund 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 Fund also offers I-Class units which are available to investors who invest a minimum of 5,000,000. Further details are available from the Manager on request. Please note that in order to distinguish between the unit classes within the Fund they are defined in this report as either Retail Units (non I-Class) or I-Class Units. The unit types associated with each unit class are disclosed in the Comparative Tables on page 6. Percentage change and sector ranking from launch to 31 March year 3 years 5 years 10 years Since launch* Percentage growth Sector position 219/ / / /132 9/14 Quartile ranking 4th 4th 3rd 4th 3rd Source: FE, I-Class Units, bid to bid, net income reinvested. *Launch date 1 April 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. 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

17 Jupiter Ecology Fund Screening and Criteria Summary Introduction The Jupiter Ecology Fund has a global growth remit and focuses on companies providing solutions to environmental and social problems. Companies must meet both our comprehensive financial assessment and environmental and social criteria and for the Jupiter Ecology Fund this includes looking at a full range of ethical exclusions. Ethical and Environmental Screening Ethical and environmental screening for the Jupiter Ecology Fund is undertaken by Jupiter s sustainability analysts who specialise in the environmental and social performance of companies. Companies are invested against a set of ethical and environmental criteria summarised below. Additional research is provided by external research provider Sustainalytics. Ethical and Environmental Criteria Summary The Jupiter Ecology Fund invests in companies providing solutions to environmental and social problems, focussing on companies which respond to environmental challenges by developing a product or service which provides sustainable long-term solutions. The Jupiter Ecology Fund also seeks to avoid investments in industrial activities, which do not fit with its environmental and social goals. Examples of such negative activities include: manufacturing of armaments, alcoholic drinks or tobacco products; publication of pornographic material; generation of nuclear power; and operation of gambling facilities. The Jupiter Ecology Fund will not invest in any company that derives over 10% of its turnover from any one of these activities. It may however, invest in a company which derives less than 10% of turnover from any one of these activities, but only if it makes an outstanding contribution to sustainable development in other respects. Additionally, the Jupiter Ecology Fund will not invest in any company that conducts or commissions animal tests carried out for cosmetic and toiletry purposes. A company involved in animal testing on other products, and their ingredients, will only be suitable for investment if it has made a substantial commitment to minimise animal testing, and in other respects makes an outstanding contribution to sustainable development. In order to respond to stock market opportunities, up to 5% of the Jupiter Ecology Fund s assets may be invested in companies that appear suitable but for which research is still in progress. If the research has not been completed within three months of the investment date, the holding will be sold. Further details of the Fund can be found on 2

18 Investment Review Performance Review For the year ended 31 March 2017, the total return on the units was 23.9%* compared to returns of 32.9%* for the FTSE All World Index, 28.4%* for the FTSE ET100 TR Index and 28.6%* for the IA Global sector. Over five years the Fund returned 76.8%* compared to returns of 98.6%* for the FTSE All World Index, 95.0%* for the FTSE ET100 TR Index and 75.8%* for the IA Global sector. The Fund was ranked 219th out of 264 funds over the period, 137th out of 201 funds over five years and 9th out of 14 funds since launch in the IA Global sector. Source: FE, bid to bid, net income reinvested. The statistics disclosed above relate to I-Class units unless otherwise stated, Market Review In terms of political history, the year under review was certainly absorbing. The UK s EU referendum in June 2016 produced a shock Brexit result, with the voting public spurred on by a highly-vocal, yet marginal, political party in UKIP. This result alone was a strong signal of the populism that had started to challenge the western political establishment. Yet it was soon eclipsed by the election of property tycoon and television personality Donald Trump as US president. His campaign was built on a promise to make America great again (a slogan borrowed from President Ronald Reagan s 1980 election campaign), and was rich in anti-establishment and protectionist rhetoric, as well as promises of tax cuts and fiscal munificence. Global markets panicked after the Brexit result, but were soon calmed by stimulus measures from the Bank of England and robust UK economic data in the months that followed. Sterling remained relatively depressed, however, due to the hard-line stance of the UK government as it triggered Article 50 and set off the two-year negotiation period. Trump s victory, on the other hand, provided a significant boost to risk appetite in markets. His spending agenda, which has the potential to spur growth and inflation, lifted stock prices in the financials, industrials and resources sectors at the expense of some high income bond proxy shares. In the months after the election, the US stock market reached new highs and market volatility generally abated. The period was less compelling from an environmental policy standpoint. Experts of all types have been vilified during the rise of populism and Trump has famously labelled anthropomorphic climate change a hoax. In his first months in office he signed an executive order to repeal Obama s Clean Power Plan and has appointed Scott Pruitt as the head of the Environmental Protection Agency (EPA) a deeply worrying move given Pruitt had previously attempted to sue the EPA on behalf of the coal industry. Policy Review Looking at the headline performance figure, it was a good year for the Fund. Buoyant trading among holdings in the industrial sector and businesses expected to benefit from greater infrastructure spending provided a boost to performance. Relative to the broader market, however, it was tougher going. Not only was the political backdrop less than favourable to our environmentallyfocused Fund, the strength of stocks from the financials and resources sectors, which we obviously avoid, made the Fund s strong absolute return look substandard, although this is far from a like-for-like comparison. Meanwhile, gains made by Tesla impeded the Fund s performance against the environmental-solutions focused FTSE ET100 Index. Tesla is a large index constituent which is not held in the Fund, in part due to its high valuation and concerns about its business model. A number of key holdings benefited from the Trumpeffect. These included Republic Services (waste and energy) and A. O. Smith (water heaters and boilers) both of which were supported by the prospect of higher industrial activity in the US. The latter, which is expanding internationally, also benefitted from robust sales growth in China. Casella Waste Systems, another beneficiary of this effect, had an excellent year. Its share price more than doubled as the business executed well on its strategy of seeking to boost returns on its landfill sites, while lowering debt and costs. Other highlights included Xylem, due to improved demand for its water technologies, and smart meter specialist Itron. The Fund s exposure to Japan added good value, with NSK (bearings), Azbil (automation products) and Daiseki (industrial waste and recycling) each making a solid contribution to performance. The conditions proved less amenable for US solar stocks, First Solar and SunPower. These companies had already come under pressure after the extension of US solar investment tax credits in late Paradoxically, this policy change led to some overcapacity in the sector as project planning became less urgent and spending was delayed. Trump s election proved a further headwind, although it appears unlikely he will look to roll back the current tax credit programme. We believe the adjustment in valuations has been more than sufficient for prevailing risks. It is worth noting that the wind sector has not suffered in the same way and Vestas Wind Systems, a core holding in the Fund, performed robustly and continued to take on significant new orders. Elsewhere, it was a tough year for Stericycle, the specialist medical waste company, whose earnings suffered due to a challenging pricing environment. 3

19 Investment Review continued In terms of transactions, we established new positions in Horiba, a Japanese company that makes precision instruments for environmental monitoring, and Dong Energy, a Danish energy business which has transformed itself into a world leader in offshore wind power. We took profits in Cranswick, a long standing holding that had done very well for the Fund. Outlook There is little doubt these are challenging times when it comes to the political backdrop for environmental investing and we will continue to watch the Trump administration s climate policies closely. His pledge to make America great again seems to involve an attempt to boost the US coal (and wider fossil fuels) industry. However potential benefits of his policies to the coal sector may prove particularly short-lived given how uneconomic this industry has become in the era of cheap gas and disruptive renewable energy. It is worth highlighting that his federal policies may not be matched at the state level where some 29 states have legal renewable portfolio standards, while a further eight states have voluntary systems in place. So long as the wind power tax credit scheme remains in place, onshore wind power in the US will remain a commercially attractive energy choice, alongside gas. At the time of writing the implications for the Paris climate accord, which was hastily ratified only a few weeks before the election, were unclear. To pull out now could potentially come at a high economic and political, as well as environmental, cost for the US. The accord s other stakeholders are standing firm in their resolve and the US could be left behind in the technological revolution happening in the areas of renewable energy and energy efficiency. Time will tell whether the economics of this technological revolution will give the president pause for thought when it comes to the Paris Accord. Moreover, in his first 100 days in office, the president has learned a hard lesson about the limitations of his position and there is growing scepticism about other key aspects of his policy agenda, including his spending and tax plans. As investors, we have to heed this lesson too and be careful not to get carried away with overly optimistic or pessimistic prognoses about Trump s potential economic impact. Despite the uncertainties presented by the new US administration, we believe the investment case for renewables remains unblemished and the recent operational performance in the US, in the likes of Vestas, is testament to that. This is one sector that has long been subject to the influence of the prevailing political backdrop and as investors we have had to remain cognisant of the potential for changes in support due to shifting regimes. For this reason, we have been selective when investing in renewables. We typically focus on industry leaders (e.g. Vestas Wind Systems, Dong Energy and First Solar) and businesses in parts of the supply chain that offer relative immunity to supply and demand changes. Moreover, we tend to assign a relatively modest portion of the portfolio to this area and consider it one of a broad range of sustainable solutions themes that we invest in (others include energy efficiency, sustainable infrastructure, industrial recycling, and organic and high welfare food). Overall, while the political noise coming out of the US may be unfavourable and may create some headwinds, this must be viewed in a global context where we continue to see growing opportunities, most notably in Europe and Asia where the political and economic imperatives for addressing environmental issues are increasingly apparent. We believe our longer-term investment thesis remains intact and that the structure push towards a more sustainable global economy is continuing apace. Charlie Thomas Fund Manager 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 4

20 Other Information This document contains information based on the FTSE World Index, FTSE ET100 TR 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 World Index and FTSE ET100 TR Index are 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. Industry Classification Benchmark ( 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. 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. 5

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* 72.94p 0.85p 30.88p 77.57p 0.50p 32.64p Operating charges (5.53p) (4.80p) (4.68p) (2.74p) (2.37p) (2.32p) Return after operating charges* 67.41p (3.95p) 26.20p 74.83p (1.87p) 30.32p Distributions on income units (0.47p) (0.36p) (0.36p) (2.63p) (2.11p) (2.07p) Closing net asset value p p p p p p *after direct transaction costs of: 0.06p 0.06p 0.05p 0.07p 0.06p 0.05p Performance Return after charges 22.79% (1.32%) 9.55% 23.89% (0.59%) 10.49% Other information Closing net asset value ('000) 175, , , , ,854 96,274 Closing number of units 48,506,408 55,478,156 84,504,232 46,424,193 48,154,833 30,346,541 Operating charges 1.68% 1.68% 1.69% 0.78% 0.78% 0.79% Direct transaction costs 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% Prices Highest unit price p p p p p p Lowest unit price p p p p p p Change in net assets I-Class Accumulation Opening net asset value p p p Return before operating charges* 79.61p 0.82p 33.05p Operating charges (2.82p) (2.41p) (2.35p) Return after operating charges* 76.79p (1.59p) 30.70p Distributions on accumulation units (2.70p) (2.15p) (2.09p) Retained distributions on accumulation units 2.70p 2.15p 2.09p Closing net asset value p p p *after direct transaction costs of: 0.07p 0.06p 0.06p Performance Return after charges 23.91% (0.49%) 10.51% Other information Closing net asset value ('000) 188, , ,854 Closing number of units 47,486,532 45,173,170 39,930,304 Operating charges 0.78% 0.78% 0.79% Direct transaction costs 0.02% 0.02% 0.02% Prices Highest unit price p p p Lowest unit price p p p 6

22 Comparative Tables continued Portfolio Turnover Rate The Portfolio Turnover Rate (PTR) of the Fund, 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 4.82% 10.09% The PTR provides an indication of the rate the Manager has bought and sold the underlying assets of the Fund 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. A negative turnover rate is an indication that over the period there is available cash awaiting investment or is being held in anticipation of settling any unit liquidations, thereby reducing the level of dealing activity. Risk and reward indicator The Risk and Reward Indicator table demonstrates where the Fund 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 Fund. The shaded area in the table below shows the Fund s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk Retail Units I-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 Fund 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 Fund, 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 1.68% 1.68% Ongoing charges for I-Class Units 0.78% 0.78% 7

23 Portfolio Statement as at 31 March 2017 Holding AUSTRALIA 0.38% (0.26%) Portfolio of investments# Market value % of Total net assets 275,728 Sims Metal Management 2,091, AUSTRIA 2.82% (2.12%) 185,790 Andritz 7,610, ,633 Lenzing AG 3,341, ,962 Zumtobel AG 4,401, CANADA 3.96% (4.38%) 744,408 Pure Technologies 2,059, ,760 Stantec 8,005, ,429 SunOpta 2,383, ,218 Waste Connections 9,113, CAYMAN ISLANDS 0.00% (0.39%) CHANNEL ISLANDS 0.00% (0.07%) CHINA (INCLUDING HONG KONG) 1.94% (0.97%) 12,690,000 China Longyuan Power 7,921, ,245 Hollysys Automation Technologies 2,648, DENMARK 5.53% (5.02%) 176,393 Dong Energy 5,401, ,780 Novozymes 6,360, ,512 Vestas Wind Systems 18,325, FRANCE 4.97% (5.91%) 10,942 Eurofins Scientific 3,780, ,778 Schneider Electric 10,019, ,047 Suez Environment 6,481, ,178 Veolia Environnement 6,732, GERMANY 3.78% (2.78%) 101,414 Fielmann 6,252, ,000 Infineon Technologies 7,803, ,750 Innogy Se 3,453, ,237 Vossloh 3,071, IRELAND 3.14% (1.28%) 269,988 Johnson Controls 9,136, ,000 Pentair 7,927, ISLE OF MAN 0.00% (0.62%) JAPAN 12.60% (10.50%) 469,800 Azbil 12,602, ,100 Daiseki 7,351, ,700 East Japan Railway 9,377, ,000 Horiba 9,347, ,400 Miura 5,431, ,800 NSK 11,116, ,800 Shimano 7,325, ,000 Toray Industries 5,968,

24 Portfolio Statement continued Holding LUXEMBOURG 1.37% (0.00%) Portfolio of investments# Market value % of Total net assets 87,500 Jupiter Global Ecology Diversified D Accumulation (GBP) 896, ,500 Jupiter Global Ecology Diversified D Income (GBP) 892, ,000 Jupiter Global Ecology Diversified I Accumulation (EUR) 224, ,500 Jupiter Global Ecology Diversified I Accumulation (GBP) 896, ,650 Jupiter Global Ecology Diversified I Income (GBP) 4,297, ,000 Jupiter Global Ecology Diversified L Accumulation (EUR) 223, NETHERLANDS 1.98% (1.78%) 304,000 Sensata Technologies 10,753, NORWAY 1.84% (1.85%) 1,163,578 Tomra Systems 9,980, SPAIN 1.96% (2.08%) 1,797,018 EDP Renovaveis 10,635, SWEDEN 3.14% (2.91%) 570,791 Alfa Laval 8,609, ,331 SKF 8,499, UNITED KINGDOM 14.56% (15.41%) 645,654 Atkins (WS) 9,717, ,143 Cranswick 17,578, ,934,660 FirstGroup 7,893, ,910 Johnson Matthey 12,221, ,122,482 Jupiter Green Investment Trust 1,936, ,339,512 National Express 8,387, ,468,837 Renewi 9,042, ,180,312 RPS Group 7,895, ,924 Spectris 3,894, ,981 Tandem 603, UNITED STATES 30.38% (32.43%) 420,400 A.O. Smith 17,257, ,000 BorgWarner 7,783, ,381 Casella Waste Systems 5,008, ,800 Clean Harbors 7,724, ,002 Covanta 8,721, ,895 First Solar 3,481, ,177 Itron 11,201, ,046 LKQ 15,588, ,402 Ormat Technologies 6,529, ,391 Owens Corning 10,010, ,045 Regal Beloit 12,533, ,096 Republic Services 12,767,

25 Portfolio Statement continued Holding Portfolio of investments# Market value % of Total net assets 119,175 Stericycle 7,786, ,708 Sunpower Corporation 1,812, ,404 United Natural Foods 9,982, ,500 Wabtec 4,250, ,500 Waste Systems* 114,000 Watts Water Technologies 5,712, ,858 Whole Foods Market 4,272, ,410 Xylem 12,796, Portfolio of investments 513,142, Net other assets 30,713, Net assets 543,855, All holdings are ordinary shares or stock units unless otherwise stated. #The figures in brackets show allocations as at 31 March *Represents an unquoted security. Represents an unapproved security. Represents an investment in a Jupiter Investment Management Group Limited product. 10

26 Purchases and Sales The top 20 purchases and all the sales for the year ended 31 March 2017 Purchases Cost Sales Proceeds Jupiter Global Ecology Diversified I Income (GBP) 6,650,000 Air Water 5,527,589 Horiba 5,779,774 Cranswick 4,146,386 Dong Energy 4,822,194 United Natural Foods 3,838,518 Innogy Se 3,648,065 Eurofins Scientific 3,739,828 Lenzing AG 2,644,372 Novozymes 3,418,912 China Longyuan Power 2,515,799 Casella Waste Systems 3,107,262 Infineon Technologies 2,299,520 Stantec 2,982,685 Daiseki 1,836,375 Wacker Chemie AG 2,911,719 NSK 1,634,281 Jupiter Global Ecology Diversified I Income (GBP) 2,625,000 Renewi 1,497,798 Miura 2,443,308 East Japan Railway 1,371,317 Spectris 2,152,137 Itron 1,353,357 Republic Services 1,884,293 Waste Connections 1,074,592 Waste Connections 1,411,221 Jupiter Global Ecology Diversified D Accumulation (GBP) 875,000 Johnson Controls 1,392,249 Jupiter Global Ecology Diversified D Income (GBP) 875,000 Adient 991,360 Jupiter Global Ecology Diversified L Accumulation (GBP) 875,000 Boer Power Holdings 937,017 Sunpower 612,838 Nature Group 562,162 Zumtobel AG 572,138 Lenzing AG 548,202 Johnson Controls 385,065 Newalta 306,391 Vossloh 381,397 Schneider Electric 274,280 Total top 20 purchases 41,703,882 Remaining purchases 568,631 Total purchases 42,272,513 Total sales 45,200,519 11

27 Statement of Total Return for the year ended 31 March 2017 Year to Year to Notes Income Net capital gains/(losses) 3 103,693,572 (6,016,286) Revenue 4 8,273,675 7,004,838 Expenses 5 (5,468,721) (5,367,626) Interest payable and similar charges (18) (11) Net revenue before taxation 2,804,936 1,637,201 Taxation 6 (538,526) (403,522) Net revenue after taxation 2,266,410 1,233,679 Total return before distributions/accumulations 105,959,982 (4,782,607) Distributions/Accumulations 7 (2,754,861) (1,876,062) Change in net assets attributable to unitholders from investment activities 103,205,121 (6,658,669) Statement of Change in Net Assets Attributable to Unitholders for the year ended 31 March 2017 Year to Year to Opening net assets attributable to unitholders 460,018, ,743,117 Amounts receivable on issue of units 21,186,661 25,244,863 Amounts payable on cancellation of units (41,813,758) (38,209,445) (20,627,097) (12,964,582) Change in net assets attributable to unitholders from investment activities 103,205,121 (6,658,669) (see statement of total return above) Retained distribution on accumulation units 1,259, ,417 Unclaimed distributions 1,977 Closing net assets attributable to unitholders 543,855, ,018,260 12

28 Balance Sheet as at 31 March Notes Assets Investments 513,142, ,528,330 Current Assets: Debtors 8 3,978,656 1,071,199 Short term deposits 4,256,003 21,592,724 Cash and bank balances 24,815,254 21,685,592 Total assets 546,192, ,877,845 Liabilities Creditors: Bank overdrafts (1,369,525) (1,112,078) Distribution payable (293,958) (166,519) Other creditors 9 (673,340) (580,988) Total liabilities (2,336,823) (1,859,585) Net assets attributable to unitholders 543,855, ,018,260 Directors Statement Jupiter Ecology Fund 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 17 May

29 Notes to the Financial Statements for the year ended 31 March Accounting Policies (a) Basis of Accounting The financial statements have been prepared on the historical basis, as modified by the revaluation of investments,in compliance with UK GAAP and the adoption of Financial Reporting Standard 102 (FRS102) and in accordance with the Statement of Recommended Practice for Authorised Funds (SORP) issued by the Investment Association in May On 8 March 2016, the Financial Reporting Council issued Amendments to FRS102 - Fair value disclosures. The amendments must be adopted for accounting periods beginning on or after 1 January 2017, but, as is permitted, the fund has early adopted the amendments in these financial statements. This amendment updates the SORP requirements from levels a, b, ci and ci.i to align the Fair Value disclosures in accordance to International Financial Reporting Standards levels 1, 2, 3. (b) Revenue All dividends from companies declared ex-dividend during the year ended 31 March 2017 are included in revenue, net of any attributable tax. Interest on any debt securities is recognised on an effective interest rate basis. 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) 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. (d) Valuation of Investments The investments of the Fund have been valued using bid market values ruling on international stock exchanges at 12 noon on 31 March 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. (e) 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 31 March 2017, being the last valuation point of the year. 14

30 Notes to the Financial Statements continued (f) 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 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) Distributions/Accumulations Dates Net revenue, if any, will be distributed or accumulated to unitholders as a dividend distribution, semi-annually on 30 November (interim) and 31 May (final) in respect of the accounting periods ending 30 September (interim) and 31 March (final). 15

31 Notes to the Financial Statements continued 3. Net capital gains/(losses) The net gains/(losses) on investments during the year comprise: Currency gains 4,780,588 1,016,292 Transaction charges (1,936) (3,569) Gains/(losses) on non-derivative securities 98,915,622 (7,029,009) Losses on forward foreign currency contracts (see Note 12) (702) Net capital gains/(losses) 103,693,572 (6,016,286) 4. Revenue UK dividends 1,826,195 2,051,166 Overseas dividends 6,310,826 4,900,968 Bank interest 13,729 14,882 Deposit interest 83,037 37,628 Interest on debt securities 39,888 Inland revenue interest 194 Total revenue 8,273,675 7,004, Expenses Payable to the Manager, associates of the Manager and agents of either of them: Manager s periodic charge 5,061,876 4,907,890 Registration fees 254, ,765 5,315,954 5,222,655 Payable to the Trustee, associates of the Trustee and agents of either of them: Trustee s fee 89,932 80,017 Safe custody fees 45,859 39, , ,139 Other expenses: Audit fee* 10,800 10,800 Professional fees on withholding tax reclaims non audit services 6,000 9,100 Financial Conduct Authority fee Charges on ADR dividend receipts 5,750 16,976 25,832 Total expenses 5,468,721 5,367,626 *The audit fee (excluding VAT) incurred during the year was 9,000 ( : 9,000). 16

32 Notes to the Financial Statements continued 6. Taxation (a) Analysis of charge in the year: Irrecoverable Overseas Tax 539, ,700 Repayment of Overseas withholding tax previously written off (1,206) (13,178) Total tax (Note 6.(b)) 538, ,522 (b) Factors affecting current tax charge for the year: The tax assessed for the year is 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 2,804,936 1,637,201 Corporation Tax at 20% 560, ,440 Effects of: Revenue not subject to taxation (1,627,404) (1,390,426) Irrecoverable overseas tax 539, ,700 Current year expenses not utilised 1,066,417 1,062,986 Repayment of overseas withholding tax previously written off (1,206) (13,178) Tax charge for the year (Note 6.(a)) 538, ,522 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 March 2017 there are surplus management expenses of 59,028,374 ( : 53,696,288). It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore a Deferred Tax asset of 11,805,675 ( : 10,739,258) has not been recognised. 17

33 Notes to the Financial Statements continued 7. Distributions/Accumulations The distributions/accumulations take account of amounts received on the issue of units and paid on the cancellation of units and comprise: Interim distribution/accumulation 2,142,444 1,531,882 Final distribution/accumulation* 603, ,556 2,746,347 1,860,438 Amounts received on issue of units (39,509) (16,548) Amounts paid on cancellation of units 48,023 32,172 Distribution/accumulation for the year* 2,754,861 1,876,062 Reconciliation of net revenue after taxation to Distributions/Accumulations: Net revenue after taxation for the year 2,266,410 1,233,679 Deferred Tax on Non-Reporting Offshore funds 6,721 Net movement in revenue account 4 (44) Transfer from capital for revenue deficit* 472, ,579 Equalisation on conversions 9, ,848 Net distributions/accumulations for the year 2,754,861 1,876,062 *No final distribution will be paid to holders of Retail income units as there was an excess of expenses over revenue in respect of this unit class for the second half of both current and prior years. The deficit has been covered by a transfer from the capital of the Fund. Details of the distributions/accumulations in are shown in the Distribution Tables on pages 24 and Debtors Accrued revenue 1,193, ,589 Overseas tax recoverable 376, ,610 Sales awaiting settlement 2,409,058 Total debtors 3,978,656 1,071, Other Creditors Accrued expenses 132, ,335 Amounts payable for cancellation of units 541, ,653 Total other creditors 673, ,988 18

34 Notes to the Financial Statements continued 10. Contingent Liabilities and Capital Commitments The Fund had no contingent liabilities or capital commitments at the balance sheet date ( : nil). 11. Related Party Transactions Jupiter Unit Trust Managers Limited (JUTM), as Manager, is a related party in respect of their dealings with the Fund. JUTM acts as principal in respect of all transactions of units in the Fund. The aggregate monies received through issue and paid on cancellation are disclosed in the Statement of Change in Net Assets Attributable to Unitholders and, if applicable, in Note 7 (Distributions/Accumulations). Any amounts due to or from JUTM at the end of the accounting year are disclosed in Notes 8 (Debtors) and 9 (Other creditors). Amounts payable to JUTM in respect of fund management are disclosed in Note 5 (expenses). At the year end 103,129 ( : 114,869) was due to JUTM. These amounts are included in accrued expenses in Note Financial Instruments In pursuing its investment objectives the Fund holds a number of financial instruments. These comprise securities and other investments, cash balances, short term fixed deposits, bank overdrafts and debtors and creditors that arise directly from its operations, for example, in respect of sales and purchases awaiting settlement, amounts receivable from issues and payable for cancellations and debtors for accrued revenue. The Fund may enter into derivative transactions, the purpose of which will only be for efficient management of the Fund and not for investment purposes. The Fund has little exposure to liquidity, credit, counterparty or cash flow risk. The risks it faces from its financial instruments are market price, foreign currency and interest rate risk. The Manager reviews policies for managing these risks in pursuance of the Investment Objective and Policy as set out on page 1 and they are summarised later. Adherence to investment guidelines and to investment and borrowing powers set out in the Trust Deed, Scheme Particulars and in the rules of the Collective Investment Schemes Sourcebook mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolio is set out in the Investment Review and Portfolio Statement. Market Price Risk Market price risk arises mainly from uncertainty about future prices of financial instruments held by the Fund. It represents the potential loss the Fund might suffer through holding market positions which are affected by adverse price movements. The Manager regularly considers the asset allocation of the portfolio in order to minimise the risk associated with particular markets or industry sectors whilst continuing to follow the Investment Objective and Policy (as set out on page 1). Price Risk Sensitivity A ten per cent increase in the value of the Fund s portfolio would have the effect of increasing the return and net assets by 51,314,282 ( : 41,752,833). A ten per cent decrease would have an equal and opposite effect. 19

35 Notes to the Financial Statements continued Foreign Currency Risk A substantial proportion of the net assets of the Fund is denominated in currencies other than Sterling, with the effect that the balance sheet and total return can be significantly affected by currency movements. Currency Net foreign currency assets Net foreign currency assets Monetary exposures Non-monetary exposures Total Monetary exposures Non-monetary exposures Australian Dollar 2,091,514 2,091,514 1,191,362 1,191,362 Canadian Dollar 24,585 10,065,239 10,089,824 51,963 11,893,738 11,945,701 Danish Krone 96,243 30,087,470 30,183, ,324 23,106,165 23,318,489 Euro 364,653 74,030,438 74,395,091 89,043 59,283,698 59,372,741 Hong Kong Dollar 7,921,022 7,921,022 6,251,260 6,251,260 Japanese Yen 371,676 68,520,769 68,892, ,559 48,313,161 48,639,720 Norwegian Kroner 72,608 9,980,206 10,052,814 74,253 8,513,930 8,588,183 Swedish Krona 265,321 17,109,610 17,374,931 13,369,840 13,369,840 US Dollar 26,131, ,183, ,315,773 5,776, ,402, ,178,580 Foreign Currency Risk Sensitivity A ten per cent increase in the value of the Fund s foreign currency exposure would have the effect of increasing the return and net assets by 45,431,713 ( : 35,285,588). A ten per cent decrease would have an equal and opposite effect. Interest Rate Risk The Fund holds various cash positions and any change to the interest rates may result in either revenue increasing or decreasing. In general, if interest rates rise the revenue potential of the Fund also rises but the value of fixed rate securities will decline. A fall in interest rates will in general have the opposite effect. Interest Rate Risk Profile of Financial Assets and Financial Liabilities The interest rate risk profile of the Fund s financial assets and liabilities at 31 March 2017 was: Currency Floating Rate financial assets Fixed Rate financial assets Financial assets not carrying interest Australian Dollar 2,091,514 2,091,514 Canadian Dollar 10,089,824 10,089,824 Danish Krone 30,183,713 30,183,713 Euro 74,395,091 74,395,091 Hong Kong Dollar 7,921,022 7,921,022 Japanese Yen 68,892,445 68,892,445 Norwegian Kroner 10,052,814 10,052,814 Swedish Krona 17,374,931 17,374,931 US Dollar 23,385, ,930, ,315,773 Sterling 1,429,514 4,256,003 86,190,086 91,875,603 Total 24,815,254 4,256, ,121, ,192, Australian Dollar 1,191,362 1,191,362 Canadian Dollar 11,945,701 11,945,701 Danish Krone 23,318,489 23,318,489 Euro 59,372,741 59,372,741 Hong Kong Dollar 6,251,260 6,251,260 Japanese Yen 48,639,720 48,639,720 Norwegian Kroner 8,588,183 8,588,183 Swedish Krona 13,369,840 13,369,840 US Dollar 5,474, ,703, ,178,580 Sterling 16,210,800 21,592,724 71,218, ,021,969 Total 21,685,592 21,592, ,599, ,877,845 Total Total 20