Jupiter launches China Sustainable Growth Limited to benefit from strong secular growth trends expected in Chinese economy

Jupiter is set to launch Jupiter China Sustainable Growth Limited in March 2009, subject to market conditions and approval from the UK Listing Authority.  The new investment company is closed ended, domiciled in Jersey and will be listed on the London Stock Exchange (LSE).  Highly regarded China fund manager Philip Ehrmann will manage the investment portfolio, which will aim to benefit from the secular trends associated with sustainable environmental, social and economic growth in China.

Philip comments: "Following a period of spectacular growth which has elevated China to its current position as the world's fourth largest economic power, the Chinese government has clearly recognised the need for action to address some of the difficulties caused by its economic boom.  It has resolved to do this through significant investment in a number of key areas as reflected in its 11th Five Year Plan (2006-2010), designed to achieve social, environmental and economic efficiency.  The ultimate objective is to transform the economy from being export-driven, wasteful and polluting to one of healthy and sustainable growth."

"I believe that these major policy reforms offer an incredibly compelling investment case. It moves us away from reliance on discretionary, cyclical spending associated with the export sector and instead allows investors to benefit from secular, long term mandated spending by the Chinese government as it seeks to develop the domestic economy.  We will be concentrating on identifying those companies which operate in the key growth sectors such as agriculture, transport, healthcare, education and the environment, and which stand to benefit from being at the core of the government's strategy."

"In addition, Chinese equity valuations have been severely affected in recent months and are at their lowest level since the SARS scares of 2003.  This, coupled with China's new economic focus, provides an interesting opportunity to participate in China's more socially and environmentally sustainable growth."

Philip Ehrmann is a highly experienced China specialist who currently manages Jupiter's China and Asian Funds.  His approach involves meeting companies, talking to industry experts and suppliers and utilising local research, before selecting individual stocks.  A company's ability to generate cash flow is essential.  Although the Company plans to invest across the market capitalisation spectrum, Philip's style is to identify those companies which have the potential to become market leaders in the future, and this means a considerable investment in small to medium sized companies.

Although the Company is not intended to be a 'green' investment vehicle, Philip will be supported by Jupiter's Socially Responsible Investment and Governance team.  They will review stocks in the portfolio to assess their efforts to improve sustainability and the impact of these on their financial performance.  The fund manager will also receive specialist strategic and financial input from Sustainable Development Capital LLP (SDCL)* and in-depth market analysis from Shanghai-based investment research company Research-Works**.
 
Jupiter believes that the Company's closed-ended LSE listed structure offers a number of advantages to investors including, in particular, ready exposure to China's A-Share market (stocks listed domestically and only available to local investors and a few foreign institutions).  It also offers the flexibility to use gearing and hedging strategies for efficient portfolio management, subject to independent board supervision.  The Company will seek to actively manage the supply and demand for its shares on the LSE through a combination of share buy backs, new issues and a partial redemption facility (at NAV) which the Board will have a discretion to offer on a six monthly basis. 

For further information, customers can contact Jupiter customer services on
0845 30 60 100 or visit www.jupiteronline.co.uk

-ENDS-

For further information please contact:

Jupiter
Alicia Wyllie
Head of Communications & Director
Direct: +44 (0)207 314 5573
Mobile: +44 (0)7798 681861
Email: awyllie@jupiter-group.co.uk

Despina Constantinides
Head of UK Retail PR 
Direct: +44 (0)207 314 4981 
Mobile: +44 (0)7801 337677
Email: dconstantinides@jupiter-group.co.uk

Mainland PR
Phoebe Davison
Direct: +44 (0)203 008 7522

Kelly Rawlinson
Direct: +44 (0)203 008 7406

Notes to Editors

FUND FACTS
. A new closed-ended Jersey investment company listed on the London Stock Exchange
. Objective: The Company's investment objective is to achieve long-term capital growth.  The Company will seek to achieve its investment objective by investing in companies that are considered by the Manager to be well positioned to benefit from secular trends associated with the environmentally, socially and economically sustainable development of China.  The Company will seek to derive its returns through a portfolio of companies that conduct a material proportion of their business in China or derive a material proportion of their earnings from activities in China.
. Investment manager Philip Ehrmann
. Issue price: US$1 or GBP£1 per Share.
. GBP shares will be available at launch through Jupiter's Investment Companies ISA and Savings Schemes.  Applications for Shares may also be made direct to the Company or via a stockbroker or IFA.
. Warrants will be issued at launch on a 1 for 5 basis with either class of shares.
. Minimum subscription: 1000 shares and in multiples of 100
. Benchmark: MSCI Zhonghua
. Fees and Expenses: 0.9% management fee per annum and performance fee of 10% over the benchmark index, capped at 5% NAV and subject to high water mark.  Any entitlement to a performance fee will be paid in shares in the Company issued to the Manager at NAV.
. Admission to the LSE in planned for early March 2009.

PHILIP EHRMANN BIOGRAPHY
. Joined Jupiter in October 2006.
. Manager of Jupiter China and Jupiter Asian Funds.
. Over 20 years experience running emerging market funds.
. Head of Global Emerging Markets at Gartmore, prior to joining Jupiter.
. Managed the top performing Gartmore China Opportunities Fund between 2003 and 2006.

* SDCL is the specialist investment banking firm that designs and structures socially, environmentally and commercially sustainable investments in the UK and China from its offices in London and Hong Kong.  Further details of SDCL are set out at www.sdcl-ib.com.

** RESEARCH WORKS is a Shanghai based research team providing in-depth sector coverage based on long term trends, "Big Ideas" and "Misconceptions".  Further details of Research Works are set out at www.research-works.com.

NOTE

Jupiter Asset Management Limited (JAM) is authorised and regulated by the Financial Services Authority and their registered address is 1 Grosvenor Place London SW1X 7JJ. The group is collectively known as "Jupiter". The above commentary represents the views of the Fund Manager at the time of preparation and may be subject to change. They are not necessarily those of Jupiter and should not be interpreted as investment advice. The value of an investment and the income from it can fall as well as rise and may be affected by exchange rate variations.  Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.