Jupiter Green Investment Trust PLC on Thursday proposed a scheme of reconstruction to shareholders as its interim net asset value per share outperformed the benchmark.
Jupiter Green is an investment firm targeting companies which have a significant focus on environmental solutions.
For the six months to September 30, the investment trust realised NAV per share gains of 2.5%, whilst its benchmark, the MSCI World Small Cap Total Return Index returned minus 0.8% over the same period.
Share price total return for the period was 19%.
Jupiter Green shares closed 1.0% higher at 230.21 pence each on Thursday in London.
The trust said the market context throughout the period from March 31 was ‘broadly supportive’ for its ‘investment universe of environmental solutions businesses’, adding that structural growth drivers proved resilient.
It said manufacturers of renewable energy equipment coupled with developers and operators of renewable energy products benefitted from the falling interest environment.
However, a weakening of consumer sentiment negatively impacted the automotive industry, causing a deceleration of capital investment plans tied to vehicle electrification.
As detailed in the firm’s annual report in July and owed to the challenging environment for investment trusts as well as the firm’s small size, Jupiter Green has been evaluating options for the future of the business.
On Thursday, the trust said it was proposing a scheme of reconstruction and voluntary liquidation as the firms discount and liquidity issues have persisted.
Under the scheme, shareholders will have the option to either roll over their investment into units in the Jupiter Ecology Fund or realise an uncapped cash exit at the modest discount to NAV.
Jupiter Ecology Fund is a unit trust that provides investors with access to the same themes and is managed by the same team, but with a superior performance and liquidity profile.
The scheme is expected to take place in the first quarter of 2025.
Chair Michael Naylor said: ‘The Board‘s conviction long-term prospects for environmental solutions investing remains high, but we recognise that in the current market environment, a pragmatic approach is required. The plan outlined today will provide investors with the opportunity to continue their investment through a rollover option.’
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