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We remain fans of this ESG trust’s revamped investment strategy
Thursday 08 Jul 2021 Author: Tom Sieber

Jupiter Green Investment Trust (JCG) 246.9p

Loss to date: -8.2%

Original entry point: Buy at 268.85p, 6 May 2021

Our Great Idea on ESG-focused Jupiter Green Investment Trust (JGC) is yet to pay off but we remain confident in its long-term prospects after the publication of annual results (6 Jul).

These confirmed the change of approach which had sparked our interest in the trust – moving towards an increased focus on growth and smaller innovative companies and away from more established names in the sustainability space.

The flipside is a reduced level of income for investors, reflected in the plans to pay a final dividend for the financial year to 31 March 2021 of 0.64p per share compared with 1.3p for the previous 12-month period.

The sluggish recent performance of the shares may also reflect some short-term cooling of investor appetite for ESG investments, with asset manager Liontrust (LIO) abandoning the launch of its ESG trust amid a lack of institutional interest.

However, we are still convinced that the company’s new strategy of focusing on businesses with disruptive technologies, often focused on industries with ‘difficult to tackle’ environmental problems, will pay off over time.

SHARES SAYS: Buy. We reckon this trust will reward investors’ patience.

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