Jupiter Green has published results for the year ending 31 March 2016. During the period under review, the total return on the net assets, adjusted for share cancellations decreased by 1.0 per cent. This compares with a decrease in the Company’s benchmark index, the MSCI World Small Cap Index Total Return of 2.4 per cent. over the same period and a decrease on the total return from FTSE ET 100 index of 4.4 per cent over the same period. The middle market price per Ordinary share decreased by 11.3 per cent. to 131.25p from 148.00p. A dividend of 0.65p (0.55p last year) is being proposed.
The manager says the renewable energy theme was a notable highlight during the period. Vestas Wind Systems, First Solar and SunPower were buoyed by the positive outcome to the Paris conference and the extension to solar and wind tax credits in the US. Several holdings from the waste management sector made excellent progress during the year on the back of improved trading, which included Casella Waste Systems, Veolia Environment and Tomra. The sector also received a boost from the planned merger between major US waste businesses Progressive Waste Solutions and Waste Connections, which may herald further mergers and acquisitions activity in the sector.
In contrast, US organic food holdings, United Natural Foods and Whole Foods Market, detracted from performance with each coming under pressure due to concern about growing competition in the market. Industrial recycling business Horsehead fell in value after it announced delays to the start date of a new production facility. We sold out of this holding as a result. Lastly, the VW emissions scandal in late-September and concerns over China’s economic growth weighed on holdings with exposure to the auto sector, including bearing specialist SKF and engine efficiency companies BorgWarner and Johnson Matthey. Ultimately, they believed the greater transparency on vehicle performance produced by the incident could lead to stronger demand for the products offered by some of these businesses.
JGC : Jupiter Green reports modest outperformance