13 April 2017 NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM) OR ANY OTHER JURISDICTION IN WHICH THE PUBLICATION, DISTRIBUTION OR RELEASE OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL. PLEASE SEE THE SECTION ENTITLED DISCLAIMER TOWARDS THE END OF THIS ANNOUNCEMENT. This announcement is an advertisement and does not constitute a prospectus and investors must subscribe for or purchase any shares referred to in this announcement only on the basis of information contained in a prospectus to be published by Jupiter Emerging & Frontier Income Trust PLC in due course (the Prospectus ) and not in reliance on this announcement. When made generally available, copies of the Prospectus may, subject to any applicable law, be obtained from the registered office of the Company. This announcement does not constitute, and may not be construed as, an offer to sell or an invitation to purchase, investments of any description, or a recommendation regarding the issue or the provision of investment advice by any party. Jupiter Emerging & Frontier Income Trust PLC (the Company or Jupiter Emerging & Frontier Income Trust ) Initial Public Offering Intention to raise 200m Admission to the Premium Segment of the Official List of the UK Listing Authority and to trading on the premium segment of the Main Market of the London Stock Exchange Jupiter Asset Management Limited (the Investment Manager or Jupiter ) today announces its intention to launch the initial public offering of Jupiter Emerging & Frontier Income Trust PLC, an investment trust whose shares will be admitted to trading on the premium segment of the Main Market of the London Stock Exchange. The Company will target an issue of 200 million 1 by means of a placing, offer for subscription and intermediaries offer of ordinary shares (the Issue ). In addition, pursuant to the Prospectus, a share issuance programme will allow the Company to issue up to 200 million further ordinary shares and/or C shares in the 12 months from the date of publication of the Prospectus. Jupiter Emerging & Frontier Income Trust will be a high conviction, long-only investment trust, investing predominantly in quoted global emerging and frontier market equities and will differ from other current UK listed Global Emerging Market investment trusts. The Company will adopt a benchmark agnostic approach and offers a new way for investors to draw on the experience and record of Jupiter in this sector. The Company s combination of emerging and frontier markets exposure (with frontier markets exposure limited to a maximum of 25 per cent. of total assets), and benchmark unconstrained investment approach, will enable it to invest in high conviction ideas from across a wider range of markets than would be typical for an emerging markets fund and is expected to enhance its diversification of risk. The Company offers a more concentrated exposure than is typical for an emerging markets fund, with the portfolio typically expected to consist of 40 to 45 investments, which the Investment Manager considers an optimal balance, providing significant diversification across countries and sectors, whilst
also limiting investment to only those companies that the Investment Manager considers to be high conviction opportunities. The Company will target a minimum dividend yield, based on the issue price, of 4% in the period of approximately 12 months post admission 2. The Company will have an annual redemption facility in order to assist with discount control, and directors fees will be paid in shares. Peel Hunt LLP ( Peel Hunt ) is acting as sole sponsor, broker, placing agent and intermediaries offer adviser to the Company. The Company s investment objective and investment policy are summarised below. Highlights New investment trust with a differentiated approach, access to exciting opportunities across global emerging and frontier markets and diversified income potential High conviction portfolio: typically will hold 40 to 45 positions Multi-cap strategy with high proportion of mid and small cap holdings, offering diversification of market cap exposure Change-based investment philosophy, investing in companies where the Investment Manager feels positive change is under-appreciated by the market at a structural, industry or company level Unconstrained approach allows the experienced investment team to seek what they believe are the best opportunities through a benchmark agnostic approach, resulting in differentiated sector and country exposure Frontier market exposure offers additional diversification benefits and the potential for an improved risk/reward profile Focus on income, taking advantage of the growing capacity and willingness for emerging and frontier market companies to pay dividends Targeting a total dividend in its initial financial period to 30 September 2018 of 5.5 pence per ordinary share (4 pence per ordinary share in the period of approximately 12 months from listing) 2 Competitive annual fee paid to the Investment Manager: 0.75% based on net asset value; no performance fee The board of directors 3 will receive their annual fees in the Company s shares (such shares to be subject to a lock in from the date of acquisition by the directors) Robust discount control mechanism (annual redemption facility at or close to NAV) Emerging and frontier markets investment opportunity An investment universe rich in opportunity Characterised by change of a nature and degree that is often only possible in less mature economies; many products and services remain underpenetrated relative to developed markets Demographics are in most cases supportive of future growth potential and scope for future productivity gains remains considerable Third-party research on emerging and frontier market equities can be scarce and of poorer quality compared to research on developed markets Potential for alpha generation from bottom-up stock selection is considerable
The case for a benchmark agnostic approach in emerging markets Mid and small capitalisation companies can often be overlooked by institutional investors The Company is able to offer an exposure that is very different to that of the emerging markets benchmark, which is characterised by a high average market cap and polarisation between companies that are 'cheap for a reason' and those that could be described as 'crowded quality'. The benchmark also has high sector, country and state owned enterprise concentrations A benchmark agnostic approach provides the Company with the freedom to invest only in those equities that the Investment Manager considers to offer strong return potential, as well as the flexibility to construct a portfolio more diversified than the Benchmark The case for combining emerging and frontier market exposure Frontier markets are typically characterised by less developed economies and/or financial markets and, as a consequence, may have greater potential for improvement and growth For a number of frontier markets equity returns are lowly correlated with the major emerging markets and, therefore, combining with emerging markets can diversify portfolio risk The Investment Manager believes that positive change occurring at the level of individual companies is frequently under-appreciated by the market due to limited research The case for an income focus In the Investment Manager's opinion, it is likely that income will become an increasingly important element of total returns in emerging and frontier markets, as there is an increasing capability and willingness to pay dividends The significant contribution that dividend income can make to total returns, based on total returns for different equity asset classes since 2000 The Investment Manager believes that the income opportunity in emerging and frontier markets, and particularly amongst mid and small cap companies, is attractive, not only for the reasons above but also because these companies often have higher dividend cover and, in the Investment Manager's opinion, higher growth potential than developed market companies with comparable yields Investment Manager: Jupiter Asset Management Jupiter Emerging & Frontier Income Trust will be managed by Jupiter Asset Management. As at 31 December 2016, the Jupiter Group had assets under management of 40.5 billion. At the Investment Manager, Ross Teverson and Charles Sunnucks will be primarily responsible for the Company's portfolio. They will be supported by other members of Jupiter's Global Emerging Markets team. Ross Teverson joined Jupiter in 2014 as Head of Strategy, Global Emerging Markets. Prior to joining Jupiter, Ross worked for 15 years at Standard Life Investments, where he managed a global emerging markets equity fund. Ross spent 7 years in Standard Life Investments' Hong Kong office, where he managed an Asian equity fund, and was a director of the business. Ross is a graduate of Oxford University and is a CFA charterholder.
Charles Sunnucks joined Jupiter in 2010 as an analyst and will serve as Assistant Fund Manager to the Company. Charles specialises in financials, internet and utilities. Experience within the financial sector includes time spent on secondment at a local Chinese brokerage. Charles graduated from university in Beijing, where he studied Economics and Trade in Chinese. He is a fluent Mandarin speaker. Investment objective The Company's investment objective is to achieve capital growth and income, both over the long term, through investment predominantly in companies exposed directly or indirectly to Emerging Markets and Frontier Markets worldwide. Investment policy The Company will invest at least 70 per cent. of Total Assets in companies that, at the time of investment, have their registered offices or principal places of business in Emerging Markets or Frontier Markets, or which exercise a material part of their economic activities in Emerging Markets and/or Frontier Markets, and which are considered by the Investment Manager to be undervalued or otherwise to offer good prospects for capital growth. The Company may invest up to 25 per cent. of Total Assets in companies that, at the time of investment, have their registered offices or principal places of business in, or which exercise a material part of their economic activities in, Frontier Markets (calculated at the time of investment). The Company may invest up to 5 per cent. of Total Assets in unquoted companies (calculated at the time of investment). The Company will invest no more than 10 per cent. of Total Assets in any single holding (calculated at the time of investment). The Company's portfolio is expected to be diversified across a number of geographical areas and, whilst there are no specific limits placed on exposure to any one geographical area, the Company will at all times invest and manage the portfolio in a manner consistent with spreading investment risk. Once fully invested, it is expected that the Company's portfolio will comprise approximately 40 to 45 investments. The Company does not expect to take controlling interests in investee companies. The Company will not be restricted to investing in constituent companies of the Benchmark. It is expected that the Company's investments will predominantly be exposed to non-sterling currencies in terms of their revenues and profits. The base currency of the Company is sterling and it will pay any dividends to Shareholders in sterling, which creates a potential currency exposure. Whilst the Company retains the flexibility to do so, it is expected in the normal course that this potential currency exposure will not be hedged using any sort of foreign currency transactions, forward transactions or derivative instruments. The Company s full investment policy will be included in its Prospectus, expected to be published in mid April 2017. Dividend policy The Company is targeting a minimum total dividend of 5.5 pence per ordinary share in respect of the period from incorporation to 30 September 2018 2. In respect of the initial period from incorporation to 31 May 2018, the Company intends to pay a total dividend of a minimum of 4.0 pence per ordinary
share, paid via two interim dividends, with a third interim dividend of 1.5 pence per ordinary share resulting in the target total dividend of 5.5 pence per ordinary share in respect of the period from incorporation to 30 September 2018. Listing The Company will seek admission of its ordinary shares to the premium segment of the official list of the UK Listing Authority and to trading on the premium segment of the Main Market of the London Stock Exchange. The Company will be structured as a closed-ended investment company incorporated in England & Wales with an indefinite life and registered as an investment company under Section 833 of the Companies Act 2006. Jupiter Emerging & Frontier Income Trust intends to carry on business as an investment trust within the meaning of Chapter 4 of Part 24 of the Corporation Tax Act 2010. Commenting on the new trust, Chairman of Jupiter Emerging & Frontier Income Trust PLC, John Scott, said: This is an exciting opportunity for investors to access some of the world s fastest growing investment markets and to do so under the auspices of an experienced investment management team. The Company offers its shareholders an attractive dividend yield which has the potential to grow and, as an investment proposition, it presents a reduced level of correlation with the investment markets of the developed world than is a feature of many yield-based funds. Expected timetable Publication of the Prospectus Mid April 2017 Publication of the results of the Issue Mid May 2017 Admission of and dealings in ordinary shares Mid May 2017 For further information please contact: Jupiter Asset Management Limited Richard Pavry Telephone: 020 3817 1000 Peel Hunt LLP Luke Simpson, Alex Lomax (Corporate Broking) Mark Thompson, Eddie Nissen (Sales) Kathy Boate (Intermediaries) Telephone: 020 7418 8900 Note: 1. The directors have reserved the right, in conjunction with Peel Hunt LLP, to increase the size of the Issue to a maximum of 300 million ordinary shares if overall demand exceeds 200 million ordinary shares, with any such increase being announced through a Regulatory Information Service.
2. This is a target only and not a profit forecast and there can be no assurance that it will be met. 3. The prospective board of directors are John Scott (Chairman), Mark Dampier, Audrey McNair and Nick Moakes. About Jupiter Asset Management The Company, through Jupiter Unit Trust Managers Limited (acting as the Company's alternative investment fund manager), will delegate responsibility for managing the Company's portfolio to Jupiter Asset Management Limited (both are wholly owned subsidiaries of Jupiter Fund Management plc). The Investment Manager is authorised and regulated by the Financial Conduct Authority. As at 31 December 2016, the Jupiter Group had assets under management of 40.5 billion. Directors The prospective directors are as follows: John Scott, Non-Executive Chairman John Scott is a former international investment banker. John was appointed a director of Scottish Mortgage Trust PLC in 2001 and became Chairman at the end of 2009. He is a former executive director of Lazard Brothers & Co., Limited. During his twenty years with Lazard, he was involved with the merchant bank s corporate advisory activities and its Asian businesses. He is currently Chairman of Impax Environmental Markets plc and Alpha Insurance Analysts Limited, as well as being a director of various companies including Bluefield Solar Income Fund Limited and CC Japan Income & Growth Trust plc. Mark Dampier, Non-Executive Director Mark is Head of Investment Research at Hargreaves Lansdown, a position he has held since 1998, a director of Hargreaves Lansdown Asset Management Limited and a member of Hargreaves Lansdown PLC's Executive Management Committee. He has over 30 years' experience in the fund management industry, including managing and marketing investment trusts and unit trusts, has published a book on effective investing and is a leading commentator on the investment sector. He was appointed to the board of Invesco Income Growth Trust plc in March 2016. Audrey McNair, Non-Executive Director Audrey has been a non-executive director of Earl Shilton Building Society since February 2015 (and is currently chair of its audit, compliance and risk committee) and a non-executive director of British Friendly Society since April 2016 (and is currently chair of its risk committee). In her executive career, across the buy and sell side in the City of London, she has gained extensive knowledge of regulatory governance and investment management processes and products, including having worked at Aberdeen Asset Management plc from May 2008 to March 2016, starting as Head of Internal Audit (EMEA) and becoming Global Head of Business Risk (including Operational, IT and strategic risk) and responsible for the Group s Risk Management Framework and Internal Adequacy Capital Assessment. Nick Moakes, Non-Executive Director Nick is Managing Partner of the Investment Division at The Wellcome Trust, one of the world s largest charitable foundations. He is on the Board of the Investor Forum, an investor-led organisation established for the purpose of improving long-term investment returns through collective shareholder engagement. He also chairs the Imperial College Endowment Fund and was appointed to the board of
Foreign & Colonial Investment Trust PLC in March 2011. Nick has nearly 30 years' experience in Asia and 25 years' experience in global equity markets. He started his career in the diplomatic service, where he specialised in Hong Kong and China. Before joining Wellcome in 2007, he was head of the Asia Pacific investment team and co-head of emerging markets at BlackRock Investment Management. Disclaimer This is a financial promotion and is not intended to be investment advice. The content of this announcement, which has been prepared by and is the sole responsibility of the Company, has been approved by Jupiter Unit Trust Managers Limited solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 (as amended). This announcement is an advertisement and does not constitute a prospectus and investors must subscribe for or purchase any shares referred to in this announcement only on the basis of information contained in the Prospectus to be published by the Company in due course (and in any supplementary prospectus) and not in reliance on this announcement. When made generally available, copies of the Prospectus may, subject to any applicable law, be obtained from the registered office of the Company and will be made available for viewing at the National Storage Mechanism at http://www.morningstar.co.uk/nsm and on the Company's website. This announcement does not constitute, and may not be construed as, an offer to sell or an invitation to purchase investments of any description or a recommendation regarding the issue or the provision of investment advice by any party. No information set out in this announcement is intended to form the basis of any contract of sale, investment decision or any decision to purchase shares in the Company. The information contained in this announcement is given at the date of its publication (unless otherwise marked) and is subject to updating, revision and amendment when the Prospectus is published. Peel Hunt, which is authorised and regulated by the Financial Conduct Authority, is acting for the Company only in connection with the matters described in this announcement and is not acting for or advising any other person, or treating any other person as its client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Peel Hunt or advice to any other person in relation to the matters contained herein. The shares of the Company have not been, and will not be, registered under the U.S. Securities Act of 1933 (as amended) (the Securities Act ) or under the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold into or within the United States. Moreover, the shares of the Company have not been, nor will they be, registered under the applicable securities laws of Australia, Canada, the Republic of South Africa, Japan or any member state of the EEA (other than the United Kingdom). Further, the Company is not, and will not be, registered under the US Investment Company Act of 1940, as amended. The shares of the Company will be offered outside of the United States pursuant to the provisions of Regulation S of the Securities Act. Subject to certain exceptions, the shares of the Company may not be offered or sold in the United States, Australia, Canada, the Republic of South Africa, Japan or any member state of the EEA (other than the United Kingdom or to professional investors in certain EEA member states for which marketing passports have been obtained) or to, or for the account or benefit of, any national, resident or citizen of the United States, Australia, Canada, the Republic of South Africa, Japan or any member state of the EEA (other than the United Kingdom or to professional investors in certain EEA member states for which marketing passports have been obtained). The Issue and any subsequent placing under the share issuance programme, and the distribution of this announcement, in other jurisdictions may be restricted by law and the persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions. The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested.
Figures refer to past performance and past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms believes, estimates, anticipates, expects, intends, may, will or should or, in each case, their negative or other variations or comparable terminology. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company s financial position, strategy, plans, proposed acquisitions and objectives, are forward-looking statements. Forward-looking statements are subject to risks and uncertainties and, accordingly, the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to those described in the Prospectus. These forward-looking statements speak only as at the date of this announcement and cannot be relied upon as a guide to future performance. The Company, the Investment Manager, Jupiter Unit Trust Managers Limited (the "Manager") and Peel Hunt expressly disclaim any obligation or undertaking to update or revise any forwardlooking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Prospectus Rules of the Financial Conduct Authority, the EU Market Abuse Regulation or other applicable laws, regulations or rules. None of the Company, the Investment Manager, the Manager or Peel Hunt, or any of their respective affiliates, accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to this announcement, including the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of the announcement or its contents or otherwise arising in connection therewith. The Company, the Investment Manager, the Manager and Peel Hunt, and their respective affiliates, accordingly disclaim all and any liability whether arising in tort, contract or otherwise which they might otherwise have in respect of this announcement or its contents or otherwise arising in connection therewith.