JEFI.L Regulatory News (JEFI)

Jupiter Emerging & Frontier Income Trust plc (the 'Company')

Interim Financial Results for the period to 15 May 2017 to 31 March 2018 (Audited)

This announcement contains regulated information

Financial Highlights

Capital Performance

Ordinary Share Performance

* Excluding finance costs (interest on the Company's loan facility).

Chairman's Statement

It is with pleasure that I present the board's first interim report for Jupiter Emerging & Frontier Income Trust PLC ("JEFIT", or the "Company") for the period since launch on 15 May 2017 to 31 March 2018. As at 31 March JEFIT had investments of £110.8m and net assets attributable to shareholders of £101m.

For most of the period under review global stock markets rose, sitting at near record levels by the end of the period. Tax reforms in the United States at the end of December provided a welcome boost to sentiment, serving to offset some of the investor nervousness arising from a string of somewhat erratic proclamations emanating from the White House. Towards the end of the period, however, stock markets hit an air pocket and fell sharply in February before staging a recovery. Fears about rising interest rates and the prospects of a trade war after the US introduced a series of tariffs weighed on sentiment, as did the series of frank exchanges of views between the United States and North Korea. Although markets regained composure in the final days of the review period, volatility looks as though it has returned after a notable absence in 2017.

Our investment performance

During the period under review JEFIT's share price and NAV (with dividends added back) returned 8.5 per cent and 10.8 per cent respectively. This compares with a total return of 8.7 per cent for our benchmark, the MSCI Emerging Markets Index.

The Company's performance has been remarkably in line with that of its benchmark index since launch. I say "remarkably" because we have a high 'active share' - 95% at the time of writing - being a measure of the difference in composition of our investment portfolio as compared with the benchmark index. In other words, we have only a 5% overlap with our comparator, so our performance would be expected to deviate significantly from that index.

As at 25 June 2018 the Net Asset Value per share was 103.13p, a 1.0 per cent increase since launch, and the middle market price per share on the London Stock Exchange was 105.50p, representing a modest premium to its net asset value.

The background to your Company's recent performance is considered in depth by our portfolio managers, Ross Teverson and Charlie Sunnucks, in their Investment Adviser's report.

Gearing

Gearing is defined as the ratio of a company's long-term debt less cash held, compared to its equity capital, expressed as a percentage. The effect of gearing is that, in rising markets, the company tends to benefit from any growth of our investment portfolio above the cost of payment of the prior ranking entitlements of any lenders and other creditors. Conversely, in falling markets a company suffers more if the investment portfolio underperforms the cost of those prior entitlements.

In order to improve the potential for capital returns to shareholders JEFIT currently has access to a flexible loan facility with Scotiabank Europe plc for amounts up to £20 million. The ability to borrow in this way is seen as a clear advantage enjoyed by investment trusts as compared with open ended investment vehicles such as unit trusts. As at 31 March 2018 the Company's net gearing level (being the amount of drawn down bank debt, less the cash held on the balance sheet) was 10.5 per cent.

The directors consider it a priority that the JEFIT's level of gearing should be maintained at appropriate levels with sufficient flexibility to enable the Company to adapt at short notice to changes in market conditions. The board reviews the Company's level of gearing on a regular basis.The current maximum that has been set is 20 per cent. of the Company's total assets. Ross Teverson and Charlie Sunnucks will continue to be encouraged to use the gearing facility and the Company's cash reserves in order to enhance returns for shareholders.

Dividends

The board's policy is to pay a semi-annual dividend in June and December of each year. A total of 4 pence in two interim dividends of 2 pence has been paid to date and, at this stage in the year, we see no reason to change our view that the interim dividend in December 2018 will be at least 2 pence a share, in line with the projections set out in the Company's prospectus last year.

In the event that JEFIT undertakes a further significant issue of shares prior to the year end the board will consider declaring an interim dividend for existing shareholders immediately prior to the new share issuance, such that revenues accrued for existing shareholders are not diluted as a consequence of the enlargement of the Company. In this event, it remains our expectation that the total additional dividends paid by the end of 2018 to shareholders currently on the register will be at least 2 pence per share, but part of this may be paid earlier than December.

Discount and premium management

The Company's total asset base is currently at the lower end of the minimum size preferred by many institutional and wealth management investors. The board and the Manager are committed to growing the Company over time and we are actively considering a further share issuance through our brokers, Peel Hunt, in the second half of this year.

More immediately, the board remains committed to its stated policy of using share buy backs and new issues of shares with the intention of ensuring that, in normal market conditions, the market price of the JEFIT's shares will track close to their underlying Net Asset Value. The board believes that this commitment to the active management of discount and premium will provide materially improved liquidity for both buyers and sellers of the Company's shares.

During the period under review the Company has issued a total of 2,843,000 shares through its ongoing placing programme. At the annual redemption point in June the Company met redemption requests in relation to nil shares by means of placing those shares with other buyers in the market. JEFIT's shares have traded consistently at close to their net asset value since launch.

PRIIPS key information documents

We are required by new EU regulations introduced at the beginning of 2018 to provide investors with a key information document ("KID") which includes performance projections which are the product of prescribed calculations based on the Company's past performance. Whilst the content and format of the KID cannot be amended under the applicable EU regulations, the board does not believe that these projections are an appropriate or helpful way to assess the Company's prospects. Moreover, the principle of using history to project the Company's future performance would appear to violate that oft-quoted mantra of "past performance is no guide to future performance", seemingly de rigeur on every marketing document.

Accordingly, the board urges shareholders also to consider the more comprehensive information set out in these interim accounts, together with the monthly fact sheets and daily net asset value announcements, when considering an investment in the Company's shares. These documents, together with a link to Ed Marten's third party research coverage of the Company, are published at www.jupiteram.com/JEFI.

Outlook

While our portfolio managers concentrate on identifying strong companies, with good management and market-leading advantages, rather than investing on the basis of macro-economic considerations, no-one can be immune to wider economic and market developments.

The recent stock market volatility has highlighted the importance of being selective when seeking out businesses in which to invest. One year on from JEFIT's flotation, our managers have already shown themselves to be adept at identifying well-run, fast-growing and cash generative investment opportunities, often based in economies which present considerable challenges to mainstream investors. Your board has great confidence in the managers' ability to build on what has been achieved so far.

John Scott

Chairman

28 June 2018

Investment Adviser's Review

Market review

Over the period, the MSCI Emerging Markets Index returned 9.7%. MSCI country benchmark returns for key markets were as follows: China +21.7%; India -2.5%; Korea +6.7%; Taiwan +6%; Brazil +6.1%;

and Russia +14.6%.

During the past year, emerging and frontier market equities have been broadly supported by an improving earnings outlook; in 2017 the delivered level of earnings growth for emerging market equities exceeded one-year-prior estimates for the first time since 2011. So far in 2018, earnings announcements from companies have been largely in line with expectations, with a general trend of robust year-on-year earnings growth continuing.

While being a positive year for earnings in emerging markets, 2017 was also characterised by a heightened degree of political uncertainty in a number of markets. For example, in Kenya, the Supreme Court annulled the August 2017 election result due to lack of adherence to electoral procedures and ordered a rerun, while in Pakistan, the Supreme Court disqualified Prime minister Nawaz Sharif from office due to corruption allegations in the wake of findings from the Panama papers. In Brazil, President Temer was implicated in ongoing corruption investigations. While political uncertainty was, in each case, a source of short term volatility, one positive we should take away from these developments is that there appears to have been a general improvement in judicial independence for these markets.

EM equities began 2018 performing strongly, with a January rally led by Chinese stocks. These gains were subsequently given up during February and March, as concerns over rising US-China trade tensions and the potential impact of higher US interest rates weighed on global equity markets. Oil exporting countries, such as Russia, fared better, as oil prices held firm in the US$65-70 range.

Performance

Over the period, the portfolio delivered an NAV return (including the 2p dividend paid) of 10.7% (using the launch price of 100p as a base), while the trust delivered a total price return of 10.4% - both figures were ahead of the trust's MSCI Emerging Markets benchmark (+9.7%).

Since inception, the portfolio has weathered several headwinds to performance. Notably, it has a significantly lower weighting in China (around 12% in China & Hong Kong, compared to a benchmark weight of 31%) and China has been one of the best performing markets over the period, returning 21.7%. Within China, Tencent, which is the largest index constituent, has been particularly strong, rising 45% over the period from inception and it is not held in the trust, as we believe that the stock's valuation already reflects a very positive consensus view, leaving little room for further upside. Also, the portfolio has a large exposure to small cap companies (40%+), an area of the asset class that has lagged the benchmark. The strong performance of several individual stock positions has helped to offset these headwinds. These stocks include the Taiwan-based electronics testing equipment company, Chroma ATE, Kenya Commercial Bank (KCB) and Russian bank, Sberbank (where we own the company's preference shares). The portfolio's higher weighting than the benchmark in Russia and lower weighting in India were also positive for relative performance.

Chroma ATE sells into a diverse range of industries including semiconductors, electrical vehicle batteries, solar, LED and 3D sensors. Chroma's strong share price performance has been driven by better than-expected earnings and positive management guidance, with the stock undergoing a price-to-earnings multiple rerating in addition to earnings expansion. For KCB, performance was driven by a combination of an improving economic picture and delivery of good operational performance - in 2017 KCB's deposits grew by 11% (and now make up 79% of the bank's funding), while return on equity remained at an impressive 19.5%. The strong performance of Sberbank preference shares was driven by a combination of strong operational performance (improved asset quality, higher revenues and lower-than-expected operating costs) and anticipation of a rising pay-out ratio (a change that we expect to continue to be a positive share price driver, having met with the company on a number of occasions over the past year).

Positions that detracted from performance included Ascendis Health in South Africa and Brazilian education company, Kroton. Ascendis Health is a company that has made several European acquisitions in recent years and we believe these acquisitions will generate significant value for Ascendis shareholders over time. However, the Steinhoff scandal, which bears no relation to Ascendis at all, has made domestic South African investors highly sceptical of any company making overseas acquisitions. As such, the stock has undergone a derating, which we view as temporary and unjustified. Kroton, which is a leading provider of private post-secondary education in Brazil, underperformed after the Brazilian competition regulator blocked its acquisition of a competitor, Estacio. Having spoken with the company several times, we are concerned that it has exhausted opportunities to consolidate the sector at a time when organic growth is slowing, and we have therefore exited the position.

Activity

During the period, in addition to the initial purchases made during the trust's first month, new positions added to the portfolio included Pakistan bank, UBL, as well as Hong Kong-listed Cambodian gaming and entertainment company, Naga Corp.

UBL was added to the portfolio after a period of share price weakness created an attractive opportunity to establish a position in a business that is well-positioned to benefit from positive structural change in he Pakistan banking sector. Relative to other emerging markets, the penetration of financial services remains low in Pakistan, but this is beginning to change, as policy makers are targeting a higher level of financial inclusion. UBL stands out amongst Pakistani banks in that its superior scale, combined with a strong management team, have supported a level of profitability comfortably in excess of its cost of equity. Its strong balance sheet allows the bank to pay substantial dividends while also growing its loan book. The experience of more mature markets, such as Indonesia, suggest that a combination of good structural growth prospects and a strongly profitable banking franchise can deliver high returns over time, as a market develops.

Naga Corp, while having its operations predominantly based in the frontier market of Cambodia, caters not to local Cambodians but to foreign tourists - mainly those from mainland China. Naga Corp delivers a relatively high dividend yield, while also exhibiting significant income growth potential, supported by increasing Chinese tourism (with additional flights coming into Phnom Penh from Chinese cities) and the new 'Naga 2' building, which expands capacity and provides new entertainment facilities (in 2018, Naga will be opening a large new theatre in Naga 2). This will be an important driver of future growth, as it will allow the company to attract high-profile Chinese performers and generate more non-gaming revenue.

During the period, several positions were exited, including State Bank of India (SBI) and our holding in Chilean wine producer, Vina San Pedro Tarapaca (VSPT).

SBI was sold to fund the purchase of UBL, not because of reduced conviction in the outlook for SBI, but because we expect the position in UBL to generate a higher return over the long term. The sale of SBI also funded our adding to positions in Indonesian developer Jaya Real and Dubai-based mall operator and owner, Emaar Malls. Both stocks had lagged during a market rally and, given no change to our investment case, our relative conviction increased. The two companies offer attractive dividend yields. Additionally, we expect solid income growth from Jaya Real due to the improving fundamentals of the Indonesian property market, and from Emaar Malls due to a substantial increase in their retail area with the opening of their new mall extension, Fashion Avenue.

During the period, VSPT was brought out by its parent company, which clearly took the same view as us regarding the company's undervaluation. Our exposure to Chile has been maintained, however, as the trust now owns Salmones Camanchaca, a Chilean salmon farm operator. The company has an attractive dividend yield coupled with a solid growth outlook due to continued strong demand from international and domestic clients. The company has a clear roadmap for organic growth, has relatively low leverage (a key constraint on the valuation of other EM protein companies) and is in a space where competition new supply is limited.

Outlook

Even after the strong returns delivered by emerging and frontier market equities over the past two years, valuations remain reasonable versus history and attractive relative to their developed market counterparts. Broad-based earnings expansion has meant that the 12-month forward price-to-earnings multiple for emerging markets remains at a similar level to one year ago at around 12x. On a price-to-book basis, valuations also look reasonable at 1.7x, which is in line with the 10-year average.

While overall valuations remain reasonable, we do observe that there are a number of large cap quality growth stocks which we would not consider investing in because we believe valuations for these names allow little scope for further upside. In our view, it is important to remain disciplined on valuations and we do continue to find a higher number of attractive stock opportunities within the small and midcap segments of the market and in frontier markets, where valuations remain attractive and growth prospects strong.

We remain cognisant of certain risks to the asset class. For example, while China positively surprised investors in 2017 (returning +41% in Sterling terms) and does remain an interesting market that we believe offers some strong structural growth opportunities, corporate debt in the country has continued to grow rapidly in recent years and it seems almost inevitable that this will lead to asset quality problems for Chinese banks in future. We believe that the Chinese government's attempts to rebalance the economy are necessary but could prove a headwind to growth in the coming year.

We continue to take advantage of the trust's flexibility to be selectively invested further down the market cap spectrum to explore more compelling opportunities among mid and small caps, as well as in frontier markets. When we look at emerging markets from the bottom-up we do not have any difficulty in finding interesting opportunities and stocks are having to compete to get into the portfolio. We therefore remain comfortable maintaining around 10% gearing in the trust - a level which we have described to our investors as a "typical" level of gearing and one which we feel is appropriate unless valuations become either stretched (at which point we would reduce gearing) or depressed (at which point we would consider up to 20% gearing).

Ross Teverson and Charlie Sunnucks

Fund Managers

Jupiter Asset Management Limited

28 June 2018

Investment Portfolio as at 31 March 2018

Cross Holdings in other Investment Companies

As at 31 March 2018, none of the Company's assets were invested in the securities of other London listed closed-ended investment companies.

Interim Management Report

Related Party Transactions

During the period since 15 May 2017 to 31 March 2018 of the current financial year no transactions with related parties have taken place which have materially affected the financial position or performance of the Company.

Principal Risks and Uncertainties

The Company is exposed to the effect of variations in the price of its investments. A fall in the value of its portfolio will have an adverse effect on Shareholders' funds. It is not the aim of the Board to eliminate entirely the risk of capital loss, rather it is its aim to seek capital growth. Investments in Emerging Markets and Frontier Markets may include a higher element of risk compared to more developed markets due to greater political and economic instability which could adversely affect the economies of such countries or the value of the Company's investments in those countries. The Company may have significant exposure to portfolio companies from certain sectors, or based or operating in certain geographical areas, from time to time. Greater concentration of investments in any one sector or geographical area may result in greater volatility in the value of the Company's investments and may materially and adversely affect the performance of the Company. Other key risks faced by the Company relate to foreign currency movements, interest rates, liquidity risk, gearing risk, the discount to Net Asset Value, regulatory risk, loss of key personnel, operational and financial risks.

Going Concern

The Interim Financial Results have been prepared on a going concern basis. The Directors consider that this is the appropriate basis as they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.

In considering this, the Directors took into account the Company's investment objective, risk management policies and capital management policies, the diversified portfolio of readily realisable securities which can be used to meet short-term funding commitments and the ability of the Company to meet all of its liabilities and ongoing expenses. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Directors' Responsibility Statement

We, the Directors of Jupiter Emerging & Frontier Income Trust PLC, confirm to the best of our knowledge that:

(a) The set of financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and give a true and fair view of the assets, liabilities, financial position and profit of the Company for the period ended 31 March 2018;

(b) The Chairman's Statement, the Investment Adviser's Review and the Interim Management Report include a fair review of the information required by Disclosure and Transparency Rule 4.2.7R; and

(c) The Interim Management Report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R on related party transactions.

By Order of the Board

John Scott

Chairman

28 June 2018

Statement of Comprehensive Income

For the period from 15 May 2017 to 31 March 2018

The total column of this statement is the income statement of the Company, prepared in accordance with IFRS.

The supplementary revenue return and capital return columns are both prepared under guidance produced by the Association of Investment Companies (AIC). All items in the above statement derive from continuing operations.

There is no other comprehensive income and therefore the 'Net return after taxation' is the total comprehensive income for the period.

Statement of Financial Position

As at 31 March 2018

Approved by the Board of Directors and authorised for issue on 28 June 2018 and signed on its behalf by:

Audrey McNair

Director

Company registration number 10708991

Statement of Changes in Equity

For the period from 15 May 2017 to 31 March 2018

* Special Reserve was constituted following a transfer from the Share Premium reserve and can also be used to pay dividends.

** Dividends paid during the period were paid out of revenue reserves.

Cash Flow Statement

For the period from 15 May 2017 to 31 March 2018

Notes to the Accounts

1. Accounting Policies

The Accounts comprise the financial results of the Company for the period from 15 May 2017 to 31 March 2018. The Accounts are presented in pounds sterling, as this is the functional currency of the Company. The Accounts were authorised for issue in accordance with a resolution of the directors on 28 June 2018. All values are rounded to the nearest thousand pounds (£'000) except where indicated.

The Accounts have been prepared in accordance with International Financial Reporting Standards (IFRS), which comprise standards and interpretations approved by the International Accounting Standards Board (IASB) and International Accounting Standards Committee (IASC), as adopted by the European Union (EU).

Where presentational guidance set out in the Statement of Recommended Practice (SORP) for Investment Trusts issued by the Association of Investment Companies (AIC) in November 2014 is consistent with the requirements of IFRS, the directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP.

The Company adopts the going concern basis in the preparation of the financial statements.

(a) Income

Dividends from investments are recognised when the investment is quoted ex-dividend on or before the date of the Statement of Financial Position.

Dividends receivable from equity shares are taken to the revenue return column of the Statement of Comprehensive Income.

Special dividends are reviewed on a case by case basis to determine if the dividend is to be treated as revenue or capital.

(b) Presentation of Statement of Comprehensive Income

In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the Association of Investment Companies (AIC), supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the statement.

An analysis of retained earnings broken down into revenue items, and capital items is given in Note 18. Investment Management fees and finance costs are charged 75% to capital and 25% to revenue.

All other operational costs including administration expenses (but with the exception of any Transaction handling charges which are charged to capital) are charged to revenue.

(c) Investments

Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at the fair value, being the consideration given.

All investments are classified as held at fair value through profit or loss. All investments are measured at fair value with changes in their fair value recognised in the Statement of Comprehensive Income in the period in which they arise. The fair value of listed investments is based on their quoted bid price at the reporting date without any deduction for estimated future selling costs.

Foreign exchange gains and losses on fair value through profit or loss investments are included within the changes in the fair value of the investment.

For investments that are not actively traded and/or where active stock exchange quoted bid prices are not available, fair value is determined by reference to a variety of valuation techniques. These techniques may draw, without limitation, on one or more of: the latest arm's length traded prices for the instrument concerned; financial modelling based on other observable market data; independent broker research; or the published accounts relating to the issuer of the investment concerned.

(d) Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risks of changes in value.

(e) Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing on the dates of the transactions. At the date of each Statement of Financial Position, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in the Statement of Comprehensive Income within the revenue or capital column depending on the nature of the underlying item.

(f) Borrowing and finance costs

Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs and subsequently measured at amortised cost. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the Statement of Comprehensive Income using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.

Finance costs are recognised in the Statement of Comprehensive Income in the period in which they are incurred. All finance costs are charged 75% to capital and 25% to revenue of the Statement of Comprehensive Income.

(g) Expenses

Expenses are accounted for on an accruals basis. Management fees are charged 75% to capital and 25% to revenue with all other expenses are charged fully to the revenue column of the Statement of Comprehensive Income. Expenses which are incidental to the purchase or sale of an investment are charged to capital, along with any foreign exchange gains and losses.

(h) Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the date of the Statement of Financial Position.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilised.

Investment trusts which have approval under Section 1158 of the Corporation Tax Act 2010 are not liable for taxation of capital gains.

(i) Ongoing Charges Figure

The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Company over the period. The OCF is made up of the Investment Management fee and other operating costs deducted from the Company during the period, except for those payments that are explicitly excluded.

(j) Reserves

Share Capital

This reserve is the nominal value of the shares in issue.

Share Premium

The share premium may be used for the payment of share issue costs.

Special Reserve

The special reserve may be used to finance the Company's share buyback facility.

The special reserve may also be used to fund the distribution of profits to investors via dividend payments.

Retained Earnings

Capital reserve

The capital reserve is not available for the payments of dividends.

The following are accounted for in this reserve:

• Gains and losses on the realisation of investments,

• Changes in fair value of investments held at the year-end,

• Transaction costs,

• Foreign currency difference.

Revenue Reserve

The revenue profit or loss for the year is taken to or from this reserve.

The revenue reserve may be used to fund the distribution of profits to investors via dividend payments.

(k) Accounting developments

At the date of authorisation of these financial statements, the following Standards and Interpretations were in issue. They are not yet mandatory, but are available for early adoption. They are not expected

to have a material impact:

· IFRS 9 - Financial Instruments (effective for annual periods beginning on or after 1 January 2018). The adoption of IFRS 9 is unlikely to have a material impact on the Company's financial assets or financial liabilities, which will continue to be classified as fair value through profit or loss and held at amortised cost respectively.

· IFRS 15 - Revenue from Contracts with Customers (effective for annual periods beginning on or after 1 January 2018). The adoption of IFRS 15 is unlikely to have a material impact on the Company's financial statements as presented for the current year, as the company's income is predominantly dividend income and fair value gains, which are not accounted for under IFRS 15.

· Amendments to IFRS 9 - Prepayment Features with Negative Compensation (effective for annual periods beginning on or after 1 January 2019).

2. Significant accounting judgements, estimates and assumptions

The preparation of the Company's financial statements on occasion requires management to make judgements, estimates and assumptions that affect the reported amounts in the primary financial statements and the accompanying disclosures. These assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the current and future periods, depending on circumstance.

Management do not believe that any accounting judgements, estimates or assumptions have had a significant impact on this set of financial statements.

3. Income

4. Investment management fee

5. Earnings per Ordinary share

The earnings per Ordinary share figure is based on the net profit for the period of £11,553,000 and on 92,207,310 Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.

The return per share figure detailed above can be further analysed between revenue and capital, as below.

6. Related parties

Jupiter Unit Trust Managers Limited ('JUTM'), the Alternative Investment Fund Manager, is a company within the same group as Jupiter Asset Management Limited, the Investment Adviser. JUTM receives an investment management fee as set out below.

JUTM is contracted to provide investment management services to the Company (subject to termination by not less than twelve months' notice by either party) for an annual fee of 0.75 per cent. of the total assets of the Company after deduction of the value of any Jupiter managed investments, payable quarterly in arrears.

 The Management fee payable to JUTM for the period 15 May 2017 to 31 March 2018 was £660,000 with £189,000 outstanding at period end.

No investment management fee is payable by the Company to Jupiter Asset Management Limited in respect of the Company's holdings in investment trusts, open-ended funds and investment companies in respect of which Jupiter Investment Management Group Limited, receive fees as investment manager or investment adviser.

Fees payable to the Directors for the period ended 31 March 2018 were £113,000 with none outstanding at the period end.

7. Contingent liabilities and capital commitments

There were no contingent liabilities or capital commitments outstanding as at 31 March 2018.

8. Post balance sheet event

Since the period end no additional Ordinary shares have been issued.

Availability of the Interim Financial Report

 The Interim Financial Report will shortly be available on Company's website www.jupiteram.com/JEFI.

A copy of the Interim Financial Report will also be submitted to the National Storage Mechanism and will soon be available for inspection at www.morningstar.co.uk/uk/NSM.

For further information, please contact:

Richard Pavry

Head of Investment Trusts

Jupiter Asset Management Limited, Company Secretary

investmentcompanies@jupiteram.com

020 7314 4822

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