Investors have just four working days left to apply to invest in Jupiter's new investment company, Jupiter China Sustainable Growth Ltd.

The new Company is closed ended, domiciled in Jersey and will be listed on the London Stock Exchange (LSE). The deadline for subscriptions to the new Company is the close of business on 10 March 2009 and Jupiter intends to list the vehicle on the LSE on 12th March 2009.

Jupiter is launching the new closed ended Company as it believes that the Chinese government's pledge to transform the economy from being export-driven and polluting to balanced and harmonious presents investors with the opportunity to benefit from the secular trends associated with sustainable environmental, social and economic growth.

Experienced China manager Philip Ehrmann, who will manage the portfolio, says that since mid-January, and the launch of the Company's fund raising, a number of developments have further highlighted the investment opportunity presented by the new Company. He believes these will not only feed through to the underlying secular growth themes on which the Company will be focused, but will also contribute to a wider understanding of the opportunities available to investors in China. 

He said: "Over the last few months the government has expanded the scope of its economic intervention and is now proposing a 950bn Renminbi (RMB) fiscal deficit for 2009 - RMB670bn greater than the initially-proposed RMB 280bn and accounting for 3% of forecast GDP.  Significantly, the real estate sector appears to have become the tenth industry relating to the fund's focused area of investment receiving a re-vitalisation package.  With the growing availability of bank loans for infrastructure projects we expect to see local governments augmenting these initiatives over the coming months.  

"Of more relevance to Jupiter China Sustainable Growth Limited's strategy over the longer term are the deeper fundamental reforms that are taking place in critical areas such as healthcare.  With only 4% of total government spending having been allocated to healthcare in 2006, China is building on a low base that has leant very heavily on the individual rather than the State. 

"While China's healthcare reform began in the early 1980's, this has failed to reduce healthcare costs, extend accessibility, improve quality, or ensure that the rural community has access to the same level of care as city dwellers.  Critically, on 21st January 2009, the Chinese State Council passed the medical reform plan with a promise to spend over US120bn within 3 years - almost 1.5 times total government spending in the area in 2007.  The plan makes solid progress in terms of setting goals: to increase the coverage of urban and rural population covered by basic medical insurance to more than 90% by 2011; reduce the cost of basic medicines; improve grassroots medical services by the provision of over 13,000 healthcare clinics; and initiate a program to reform state-run hospitals focusing on affordability and quality of services. 

"This serves as an excellent illustration of how government spending is being channelled into important programs.  These have clear deliverable benefits that are consistent with China's plans to deliver longer term sustainable growth for its people."   

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.

There are particular risks associated with investments in Investment Companies, which could cause sudden or large falls (or rises) in investment values. Jupiter China Sustainable Growth will be investing in a single geographic area, which may lead to greater levels of volatility. The value of the Company will also be affected by exchange rate fluctuations. Please see the Key Features Document for full details.

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. There are particular risks associated with investments in Investment Companies, which could cause sudden or large falls (or rises) in investment values. Jupiter China Sustainable Growth will be investing in a single geographic area, which may lead to greater levels of volatility. The value of the Company will also be affected by exchange rate fluctuations.  Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.