Jupiter Emerging & Frontier Income Trust : Half Yearly Financial Report

JUPITER EMERGING & FRONTIER INCOME TRUST PLC

Half Yearly Financial Report

for the six months ended 31 March 2020

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Contents

Investment Objective, Investment Policy, Investment Restrictions and Benchmark Index 2

Financial Highlights 4

Chairman's Statement 5

Investment Adviser's Review 8

Investment Portfolio 10

Cross Holdings in other Investment Companies 11

Interim Management Report 12

Statement of Comprehensive Income 13

Statement of Financial Position 14

Statement of Changes in Equity 15

Cash Flow Statement 16

Notes to the Accounts 17

Company Information 22

Investor Information 24

Important Risk Warnings 26

Glossary of Terms including Alternative Performance Measures 27

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JUPITER EMERGING & FRONTIER INCOME TRUST PLC I HALF YEARLY FINANCIAL REPORT

Investment Objective, Investment Policy, Investment Restrictions and Benchmark Index

Objective of the Company

The Company's investment objective is to achieve capital growth and income, both over the long term, through investment predominantly in companies exposed directly or indirectly to Emerging Markets and Frontier Markets worldwide.

Investment Policy

The Company will invest at least 70% of Total Assets in companies that, at the time of investment, have their registered offices or principal places of business in Emerging Markets or Frontier Markets, or which exercise a material part of their economic activities in Emerging Markets and/or Frontier Markets, and which are considered by the Investment Manager to be undervalued or otherwise to offer good prospects for capital growth.

The Company may invest up to 25% of Total Assets in companies that, at the time of investment, have their registered offices or principal places of business in, or which exercise a material part of their economic activities in, Frontier Markets (calculated at the time of investment).

The Company may invest up to 5% of Total Assets in unquoted companies (calculated at the time of investment).

The Company will invest no more than 10% of Total Assets in any single holding (calculated at the time of investment).

The Company's portfolio is expected to be diversified across a number of geographical areas and, whilst there are no specific limits placed on exposure to any one geographical area, the Company will at all times invest and manage the portfolio in a manner consistent with spreading investment risk.

The Company does not expect to take controlling interests in investee companies.

The Company will not be restricted to investing in constituent companies of the Benchmark.

''Emerging Market'' means each constituent country of the Benchmark (the MSCI Emerging Markets Index) from time to time.

''Frontier Market'' means each country that is not a constituent of either the MSCI Emerging Markets Index or the MSCI Developed Markets Index. Generally, the Investment Manager considers Frontier Markets to be smaller, less well established economies that are at an earlier stage of economic and political development than Emerging Markets. Examples of countries that the Investment Manager currently considers to be Frontier Markets are Vietnam and Nigeria.

The Company may, in pursuance of the investment objective:

""invest in equity and equity-related securities (including quoted preference shares, quoted convertible unsecured loan stock, quoted warrants and other similar securities);

""hedge against directional risk using index futures and/or cash; ""hold bonds and warrants on transferable securities;

""utilise options and futures for hedging purposes and for efficient portfolio management; ""enter into contracts for differences;

""hold participation notes;

""use forward currency contracts; and ""hold liquid assets.

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Notwithstanding the above, the Company does not intend to utilise derivatives or other financial instruments to take short positions, nor to increase the Company's gearing in excess of the limit set out in the borrowing policy.

It is expected that the Company's investments will predominantly be exposed to non-sterling currencies in terms of their revenues and profits. The base currency of the Company is sterling and it will pay any dividends to Shareholders in sterling, which creates a potential currency exposure. Whilst the Company retains the flexibility to do so, it is expected in the normal course that this potential currency exposure will not be hedged using any sort of foreign currency transactions, forward transactions or derivative instruments.

The Company may deploy gearing of up to 20% of Net Asset Value (calculated at the time of borrowing) to seek to enhance long-term capital growth and income returns and for the purpose of capital flexibility. The Company's gearing is expected to primarily comprise bank borrowings but may include the use of derivative instruments and such other methods as the Board may determine.

No material change will be made to the investment policy without the approval of Shareholders by ordinary resolution.

Investment Restrictions

The Company will at all times invest and manage its assets with the objective of spreading risk and in accordance with its published investment policy.

The Company will not invest more than 10% of its Total Assets in other listed closed ended investment funds (as defined in the Listing Rules).

Benchmark Index

MSCI Emerging Markets Index (Total Return) in sterling.

The constituent countries of the Benchmark are Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

Investment Objective

The Company's investment objective is to achieve capital growth and income, both over the long term, through investment predominantly in companies exposed directly or indirectly to Emerging Markets and Frontier Markets worldwide.

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