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Jupiter green fund on red alert as ‘baggers’ move in

Jupiter’s global green investment trust is fighting to fend off an attack from arbitrageurs after a shareholder demanded an EGM to wind up the fund.

The environmental trust was set up in March 2001. It is reckoned to have been infiltrated by arbitrageurs aiming to profit from an early wind-up.

Arbitrageurs try to exploit differentials between the net asset value of an investment trust and value of underlying assets by buying shares as at a discount and then realising the value of the discount when the fund is wound up.

In the 12 months to February, the NAV of the trust rose by 16.7 per cent compared with a rise in the FTSE all world index of 6.9 per cent.

Head of socially responsible investment Emma Howard Boyd says: “The sustained high oil price relative to reducing the cost of renewable energy, the continued need for clean water, energy efficiency and recycling – these are all trends that will support the long term future of the trust. Perhaps those looking to close it are taking a short-term view.”

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