Jupiter poised to replace green trust

Jupiter is to launch a new ethically invested investment trust following the announcement of proposals last week to wind up the 54.3m Jupiter Global Green Investment Trust.

Prospectuses for the Jupiter Green Century trust will be issued next month. It is seeking to raise 100m with a launch in June.

Charlie Thomas, former manager of the Global Green trust and manager of the 168m Jupiter Ecology unit trust, will be the lead manager of the new trust.

Aided by Jupiter’s socially responsible investment team of eight, Thomas will select stocks in all global regions except those in America. Instead, the American portfolio will be outsourced to Boston-based Winslow, and will be run by Matthew Patsky.

Emma Howard Boyd, head of SRI and corporate governance at Jupiter, says unlike the current investment trust, the new Global Century trust will invest all of its assets in six green investment areas: water management, clean energy, green transport, waste management, sustainable living and environmental services.

Investing on a global basis, the trust will have an initial asset allocation of 30% in Britain and 40% overseas – most notably in Europe. Winslow will also run 30% of the assets in America. In total, the trust will invest in about 60 companies.

Boyd says: “There are no restrictions on the stocks we can invest in as long as they fit into our six investment themes. We do not focus on the negative criteria that other ethical funds use. We think this approach will appeal to a wider investment base than those that focus on the negatives.”

Indeed, while being structured as an investment trust, Jupiter is attempting to make retail access to the fund as easy as possible.

It is offering 3% commission to intermediaries through the public and offer for subscription, and through its own savings schemes. The annual management fee will be 0.85% of the trust’s net asset value.

Ordinary shares for the trust will be issued at 100p, with one warrant being issued for every five shares purchased.

Thomas says the intention is to allow up to 25% gearing on the trust and discount measures will be put in place, which he says will come into effect at about 6%.