2511 scv eur opps_cdf_0613

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Jupiter European Opportunities SICAV Cédric de Fonclare June 2013 FOR PROFESSIONAL AUDIENCES ONLY. NOT FOR RETAIL INVESTORS.

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Page 1: 2511 scv eur opps_cdf_0613

Jupiter European Opportunities SICAV

Cédric de Fonclare

June 2013

FOR PROFESSIONAL AUDIENCES ONLY. NOT FOR RETAIL INVESTORS.

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Agenda

The team

Our philosophy and process

Current positioning

Stock examples

Portfolio data

Outlook

1

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The team

Fund Manager:

Cédric de Fonclare

2

Fund Manager:

Gregory Herbert

14 years at Jupiter

€1.4bn AUM, of which 59% in Europe ex-UK mandates, 41% pan-European

Winner, Morningstar European Equities Fund Manager of the Year 2011

Source: Jupiter, AUM as at 31.03.13. Past performance is no guide to the future. Note: Years at Jupiter as at 04.06.13.

8 years at Jupiter, of which 6 on European equities team

Assistant to Cédric since 2007

Manager, European portion of Jupiter Global Managed, Jupiter European Income and Jupiter Global Equity Income and Co-manager Jupiter Global Equities (SICAV)

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Jupiter’s investment team 3

Equity-focused culture (€34bn AUM, 58.2% equities; 39.5% FI, mixed assets & cash; 2.3% alternatives)

Common stock picking approach

Experienced team, all based in one location

High staff retention rate (average >8 years for fund management team)

European team (7 members)

UK team (8 members)

Fixed income (8 members)

Financials (3 members)

US (1 member)

EMs (9 members)

Japan (2 members)

SRI (3 members)

Successful formula, tried and tested over many years Source: Jupiter, AUM as at 31.03.13. Past performance is no guide to the future.

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Agenda

The team

Our philosophy and process

Current positioning

Stock examples

Portfolio data

Outlook

4

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Investment philosophy

Bottom-up stock picking

Majority of portfolio targeting quality companies with visible growth

Strict valuation discipline

Pragmatic allocation of portfolio targeting mean reversion in valuation over the cycle

Broad diversification, with rigorous risk controls

5

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Investment process 6

Filtering our investment universe

Stock selection

Portfolio construction

Risk control

Our investment universe

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Addressable universe of European stocks narrowed down by market cap

Our addressable universe: c.1300 stocks > EUR1bn market cap

Average market cap of portfolio: EUR 23bn*

7

*Source: Jupiter as of 31.01.13. Total Western European universe = c.9900 companies .

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Stock selection – filtering our investment universe

Investment universe Diversified exposure across European markets and sectors

Focus on large and mid caps

Quantitative screening for: Sustainable economic profit

Low implied expectations

Intra-sector value

Qualitative Direct contact with senior company management

Jupiter’s internal expertise across different specialities

External input

8

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Stock selection – process

Qualitative assessment Industry dynamics, barriers to entry

Business model sustainability

Strategy for growth

Financial characteristics Organic growth development

Margin stability: gross margin development, operating leverage

Cash flow generation

Valuation Historical valuation (Cyclically-adjusted P/E, Price/book, EV/EBITDA)

Peer comparison

Reverse DCF

9

No substitute for direct company contact!

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Portfolio construction

Structure: Typically 45-60 stocks held

1%-4% positions, all large active positions vs. benchmark

Weighting defined by upside potential and risk diversification benefits

Style Core of portfolio: visible defensive growth (exposure to structural growth,

consistent historical returns, typically multi-year holdings)

Tactical allocation: pragmatic approach through economic cycle; mean reversion in valuation

10

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Visible defensive growth – investment themes 11

Unique assets ASML

Market leaders Swatch

Demographics Syngenta

Outsourcing SGS

Globalisation Zodiac

Energy demand Schneider Electric

Emerging Markets Linde

Core portfolio

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Risk management

Formal Jupiter risk management Trading: central dealing desk, managed via Charles River

Independent risk analytical team: measure active risk ex ante analytics through Barra, liquidity risk via FactSet

Compliance guidelines: independent portfolio monitoring

Independent risk committee: monthly and quarterly performance review

Dynamic Understand what you are investing in! Business risk paramount – regular

meetings with companies and competitors

Manage active risk by sector, growth drivers

Focus on liquid stocks

Selling discipline: No more upside; structural change in investment case; errors of judgment…

12

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Agenda

The team

Our philosophy and process

Current positioning

Portfolio data

Outlook

13

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Portfolio information

Top 20 holdings Portfolio features

Source: Jupiter as at 30.04.13. *Small: below €1bn, Mid: €1bn-5bn, Large: €5bn+. Excludes cash.

Investable market cap split*

Fund size €161m

Number of holdings 56

Equities 98.5%

Cash 1.5%

% UBS 3.0 Sanofi 2.8 Adidas 2.7 Linde 2.6 SAP 2.6 Bayer 2.5 Inmarsat 2.4 Ryanair 2.4 Safran 2.4 Prudential 2.4 SES Global 2.3 Syngenta 2.3 The Swatch Group 2.2 SCA-B 2.2 Zodiac 2.2 Givaudan 2.2 GlaxoSmithKline 2.2 Fresenius Medical Care 2.1 Experian 2.0 Neopost 2.0

14

Diversified and liquid portfolio

Large, 81.9%

Mid, 18.1%

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Top 10 active positions 15

Diversified active exposure

Name Active weight (%)

Ryanair IR Consumer Services 2.6

Adidas AG DE Consumer Goods 2.5

Safran FR Industrials 2.3

Linde DE Basic Materials 2.2

Inmarsat GB Telecommunications 2.2

Zodiac Aerospace FR Consumer Services 2.2

UBS CH Financials 2.1

SES LU Consumer Services 2.1

Givaudan GB Consumer Goods 2.1

Swatch CH Consumer Goods 2.0

Source: FactSet, average over 1 month period, as at 31.05.13.

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0% 5% 10% 15% 20% 25%

Oil & Gas

Telecommunications

Technology

Consumer Services

Health Care

Basic Materials

Consumer Goods

Financials

Industrials

Portfolio information

Geographical breakdown Sector breakdown

Source: Jupiter as at 31.05.13.

16

0% 10% 20% 30% 40%

Netherlands

Italy

Luxembourg

Finland

Ireland

Denmark

Norway

Sweden

France

Switzerland

Germany

UnitedKingdom

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Portfolio information

Sector weightings relative to FTSE World Europe

Source: Jupiter, FactSet 31.05.13.

17

International reach with reduced political risk

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Industrials BasicMaterials

Technology ConsumerServices

Health Care Telecoms Utilities Financials ConsumerGoods

Oil & Gas

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Portfolio information

Country weightings relative to FTSE World Europe

18

Overweight Northern Europe Source: Jupiter, FactSet 31.05.13. *Other = countries valued between 0.5 to -0.5 this includes: Austria, Czech Republic, France, Greece, Hungary, Kazakhstan, Mexico, Portugal and US.

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

Ger

man

y

Irela

nd

Nor

way

Switz

erla

nd

Luxe

mbo

urg

Den

mar

k

Finl

and

Uni

ted

Kin

gdom

Pola

nd

Oth

er*

Turk

ey

Swed

en

Bel

gium Ita

ly

Net

herla

nds

Spai

n

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Agenda

The team

Our philosophy and process

Current positioning

Stock examples

Portfolio data

Outlook

19

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Structural growth in air passenger traffic 20

Global financial crisis

Gulf war, economic slowdown

Passenger traffic growth 4.9% per annum Source: Zodiac Aerospace, ID Aero, 2011.

Asian crisis

9/11, SARS, Iraq war economic slowdown

Page 22: 2511 scv eur opps_cdf_0613

Zodiac Aerospace: Beneficiary of fleet growth and refurbishment 21

Note: Permission obtained for image rights from Zodiac Aerospace, 28.11.12.

Old A320 interior Refurbished A320 interior

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Dufry: Growth in airport retail 22

Note: Permission obtained for image rights from Dufry, 26.11.12.

Mexico City 2006 Mexico City 2012

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Agenda

The team

Our philosophy and process

Current positioning

Stock examples

Portfolio data

Outlook

23

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24

Premium for quality remains low

Portfolio financial analysis

Jupiter European Opportunities SICAV

Source: Credit Suisse HOLT May 2013. *CFROI = Cash flow return on investment. **Leverage = Debt / (Debt + Equity). ***Mean unweighted. Past performance is no guide to the future.

Euro Opps SICAV FTSE World Europe Difference

Sales growth 5yr (%) 8.0 6.0 2.0

CFROI* (5yr median) (%) 15.1 11.1 4.0

EPS growth 5yr (%) 11.0 0 11.0

CFROI* 2013E (%) 15.3 10.9 4.4

CFROI* 2014E (%) 15.7 11.1 4.6

Leverage** (%) 21.6 31.0 -9.4

P/E 2013E 16.4 14.9 1.5

P/B LFY 3.8 2.8 1.0

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Jupiter European Opportunities SICAV

Source: FE, bid to bid, net income reinvested as at 31.05.13. Index = FTSE World Europe. Past performance is no guide to the future.

Risk data 25

3 year 5 year

Beta 1.0 0.9

Information ratio 0.3 0.4

Sharpe ratio 0.9 0.2

Tracking error 5.8% 5.8%

Fund volatility 13.4% 17.0%

Index volatility 12.4% 17.8%

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Jupiter European Opportunities SICAV

Performance – cumulative

Source: FE, tax gross, fees net, bid – bid, EUR, Total Return to 17.08.01 to 31.05.13. Sector: FO Equity – Europe Inc. UK. On 10.10.05 the benchmark for this Fund was changed from the FTSE Actuaries World (Euro) to FTSE World Europe Index (Euro), all benchmark figures are using the new benchmark. Past performance is no guide to the future.

26

YTD % 1 year %

3 years %

5 years %

Since inception (17.08.01) %

European Opportunities SICAV 12.3 27.2 43.0 23.3 70.4

FTSE World Europe 9.7 30.0 35.4 10.8 47.4

Position in sector 35 / 208 120 / 206 48 / 178 35 / 159 8 / 73

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Jupiter European Opportunities SICAV

Performance over five years

Source: FE, bid to bid, gross income reinvested, net of fees in Euros 31.05.08 to 31.05.13. Past performance is no guide to the future.

27

-60

-50

-40

-30

-20

-10

0

10

20

30

40

May 08 May 09 May 10 May 11 May 12 May 13

% G

row

th

Jupiter - European Opportunities L Acc EUR in EU 23.30 FTSE World Europe Index TR in EU 10.75

FO Equity - Europe inc UK TR in EU 7.97

Page 29: 2511 scv eur opps_cdf_0613

Jupiter European Opportunities SICAV

Performance over ten years

Source: FE, bid to bid, gross income reinvested, net of fees in Euros 31.05.03 to 31.05.13. Past performance is no guide to the future.

28

-20

0

20

40

60

80

100

120

140

160

180

200

May 03 May 04 May 05 May 06 May 07 May 08 May 09 May 10 May 11 May 12 May 13

% G

row

th

Jupiter - European Opportunities L Acc EUR in EU 167.08 FTSE World Europe Index TR in EU 111.98FO Equity - Europe inc UK TR in EU 93.66

Page 30: 2511 scv eur opps_cdf_0613

Jupiter European Opportunities SICAV

Performance – discrete years

Source: FE, in EUR, bid to bid, net income reinvested as at 31.05.13. Past performance is no guide to the future.

29

YTD % 2012 % 2011 % 2010 % 2009 % 2008 % 2007 % 2006 % 2005 % 2004 %

Jupiter European Opps 12.3 22.9 -10.3 16.4 27.7 -38.7 1.3 32.2 29.7 18.4

FTSE World Europe Index 9.7 18.8 -8.5 11.7 33.1 -43.2 3.6 20.7 26.8 12.6

Position in sector 35 / 208 44 / 202 107 / 189 55 / 173 116 / 168 33 / 154 74 / 138 3 / 121 28 / 114 9 / 102

Fund ranked 35 / 159 in sector over past 5 years

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30

Jupiter European Opportunities SICAV vs. benchmark

Source: FE, tax gross, fees net, bid – bid, EUR, Total Return to 31.05.13. Sector: FO Equity – Europe Inc. UK. On 10.10.05 the benchmark for this Fund was changed from the FTSE Actuaries World (Euro) to FTSE World Europe Index (Euro), all benchmark figures are using the new benchmark. Past performance is no guide to the future.

Relative returns

5.8

2.9

11.5

-2.3

4.5

-5.5

4.7

-1.8

4.2

2.6

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

Page 32: 2511 scv eur opps_cdf_0613

Stock attribution to return – 1 year to 31.05.13 31

Company Contribution to return %

Skandinaviska Enskilda Banken 0.88

DNB 0.47

Prudential 0.46

Nestle 0.43

Ryanair 0.41

Bayer 0.38

SAFRAN 0.38

UBS 0.37

Vodafone 0.36

Royal Dutch Shell 0.35

Top 10 Total 4.47

Source: Jupiter / FactSet, 31.05.12 to 31.05.13. Highlighted stocks no longer held. Italic stocks were not held. Buy and hold basis and excluding cash. Past performance is no guide to the future.

Top 10 contributors to return

Top 10 companies

Bottom 10 contributors to return

Company Contribution to return %

Fresenius Medical Care -0.79

Aggreko -0.57

AZ Electronic Materials -0.50

Roche Holding -0.40

AMEC -0.38

Nokian Tyres -0.38

Pearson -0.33

Fugro -0.33

Dufry -0.32

Croda International -0.28

Bottom 10 Total -4.28

Page 33: 2511 scv eur opps_cdf_0613

Contribution by sector

Jupiter European Opportunities FTSE World Europe

Industry Average

Weight Total

Return Contribution

To Return Average

Weight Total

Return Contribution

To Return Total

Effect

Telecommunications 3.73 41.72 1.64 5.24 11.26 0.72 1.45

Oil & Gas 3.62 0.11 0.02 10.54 11.38 1.46 0.70

Utilities -- -- -- 4.40 16.57 0.83 0.56

Consumer Goods 10.15 30.17 2.96 18.19 27.42 5.01 0.50

Technology 6.47 39.91 2.42 2.70 37.91 0.97 0.39

Basic Materials 14.45 23.19 3.36 9.33 16.69 1.73 0.13

Consumer Services 8.56 29.27 2.60 6.46 34.59 2.17 -0.20

Industrials 21.47 30.86 6.44 11.62 33.46 3.73 -0.44

Cash 1.91 20.30 0.12 -- -- -- -0.46

Financials 15.57 49.52 7.18 20.45 52.76 9.68 -1.28

Health Care 14.08 21.74 3.16 11.05 34.08 3.64 -1.42

Total 100.00 29.89 29.89 100.00 29.94 29.94 -0.05

Source: Jupiter / FactSet, 31.05.12 to 31.05.13. Past performance is no guide to the future.

32

Jupiter European Opportunities SICAV

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Contribution by country

Jupiter European Opportunities FTSE World Europe

Total Effect Country of Domicile

Average Weight

Total Return

Contribution to Return

Average Weight

Total Return

Contribution to Return

Sweden 3.20 86.23 2.15 4.82 36.93 1.71 1.01

Norway 2.98 60.48 1.63 1.50 24.66 0.40 0.82

Ireland 0.83 24.75 0.57 0.45 23.75 0.10 0.46

France 12.64 40.16 4.88 14.21 35.70 4.96 0.41

Luxembourg 2.58 30.89 0.82 0.49 11.29 0.08 0.14

Netherlands 1.93 47.22 0.59 4.05 35.48 1.39 -0.22

United Kingdom 34.29 20.01 7.51 33.37 21.21 7.52 -0.24

Italy 1.22 12.24 0.16 3.41 33.28 1.14 -0.30

Finland 3.19 17.15 0.70 1.13 35.36 0.38 -0.31

Spain -- -- -- 4.32 42.94 1.79 -0.54

33

Top and Bottom 5

Source: Jupiter / FactSet, 31.05.12 to 31.05.13. Past performance is no guide to the future.

Jupiter European Opportunities SICAV

Page 35: 2511 scv eur opps_cdf_0613

Agenda

The team

Our philosophy and process

Current positioning

Portfolio data

Outlook

34

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Outlook I

Debt deleveraging is a headwind that will take years to subside

Have margins peaked?

Are companies underinvesting in their businesses?

European companies continue to grow internationally

Valuations in Europe are at historical lows

35

Represents the views of the fund manager at the time of the presentation and may change in the future.

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36

Ongoing deleveraging will continue to affect growth

*Source: Eurostat, March 2013. **Source: Eurostat, OECD, European Commission, IMF, SG Cross Asset Research / Economics. 1) Ireland: 2002 vs. 2011. Fund manager views at the time of writing and will change in the future.

GDP forecasts *

Deleveraging is a long-term process

-6

-4

-2

0

2

4

6

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Euro area Germany Spain France Italy

It took 30 years to reach current debt levels

How long will it take to unwind?

Eurozone in recession in 2012

Forecasts keep being revised lower

1980 debt vs. 2011**

Page 38: 2511 scv eur opps_cdf_0613

Outlook II

Debt deleveraging is a headwind that will take years to subside

Have margins peaked?

Are companies underinvesting in their businesses?

European companies continue to grow internationally

Valuations in Europe are at historical lows

37

Represents the views of the fund manager at the time of the presentation and may change in the future.

Page 39: 2511 scv eur opps_cdf_0613

Is mean reversion in margins inevitable?

Have companies been underinvesting?

Is pricing pressure inevitable?

BUT…

Operating costs as % of sales has steadily decreased

Capital intensity has decreased

Globalisation impact

38

0

2

4

6

8

10

12

14

16

18

0

5

10

15

20

25

30

35

40

45

Dec 93 Dec 96 Dec 99 Dec 02 Dec 05 Dec 08 Dec 11

Gross Margin SG&A margin EBIT margin (RHS)

Source: FactSet, 28.02.13. Index used is MSCI Europe.

Breakdown of EBIT margins MSCI Europe

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Outlook III

Debt deleveraging is a headwind that will take years to subside

Have margins peaked?

Are companies underinvesting in their businesses?

European companies continue to grow internationally

Valuations in Europe are at historical lows

39

Represents the views of the fund manager at the time of the presentation and may change in the future.

Page 41: 2511 scv eur opps_cdf_0613

Are companies underinvesting in their businesses? 40

European sales, capex and nominal GDP (1980 = 100)

Source: UBS European Equity Strategy, Worldscope, DataStream; UBS European Market Map 13.02.13. Fund manager views at the time of writing and will change in the future.

Europe (ex financials) net debt / EBITDA

Capex has not kept pace with record sales and profitability

Weak demand? Sweating assets? Lack of finance? Change in industrial mix?

Will this allow competitors to gain ground?

Balance sheets are thus strong

Strong get stronger; cash gives optionality: M&A

Dividend growth

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Outlook IV

Debt deleveraging is a headwind that will take years to subside

Have margins peaked?

Are companies underinvesting in their businesses?

European companies continue to grow internationally

Valuations in Europe are at historical lows

41

Represents the views of the fund manager at the time of the presentation and may change in the future.

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Average international sales exposure by region (2011)

Europe is one of the most export-focused regions Source: Goldman Sachs Research October 2011.

42

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Outlook V

Debt deleveraging is a headwind that will take years to subside

Have margins peaked?

Are companies underinvesting in their businesses?

European companies continue to grow internationally

Valuations in Europe are at historical lows

43

Represents the views of the fund manager at the time of the presentation and may change in the future.

Page 45: 2511 scv eur opps_cdf_0613

Price/book ratios for selected markets

Source: Bloomberg in EUR, 31.05.03 - 31.05.13.

44

0

0.5

1

1.5

2

2.5

3

3.5

Jun 03 Sep 04 Dec 05 Mar 07 Jun 08 Sep 09 Dec 10 Feb 12 May 13

DJ Eurostoxx 600 S&P 500 FTSE 100 Nikkei 225 Hang Seng

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45

Cyclically adjusted P/E

Source: Citigroup 18.01.13.

Valuations are at long-term lows

5

10

15

20

25

30

35

40

45

50

55

83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13

European CAPE European average US CAPE US average

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Outlook 46

What we know…

What we are focusing on…

What we believe…

…Eurozone crisis is not going to be resolved quickly

…Debt deleveraging will take a long time and has already increased risks in a number of sectors

…Capturing international growth …Avoiding politically sensitive industries

In a low growth environment strong companies will get stronger

That growth is often available at a surprisingly small premium

Fund manager views at the time of writing and will change in the future –October 2012. They may be subject to change and should not be interpreted as investment advice.

Page 48: 2511 scv eur opps_cdf_0613

Disclosure

Jupiter Asset Management Limited (‘JAM’) is registered in England and Wales (nos. 2036243). The registered office is 1 Grosvenor Place, London SW1X 7JJ. JAM is authorised and regulated by the Financial Conducts Authority whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS.

This presentation is intended for investment professionals and not for the benefit of private retail investors. However any one attending the presentation or who has the opportunity to view the accompanying slides should bear in mind that the value of an investment in a unit trust and the income from it can go down as well as up. It may be affected by exchange rate variations and you may not get back the amount invested. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. Quoted yields are not guaranteed. Past performance should not be seen as a guide to future performance.

The investment returns are denominated in EUR. Non-Euro investors will be exposed to exchange rate fluctuations. This Fund can invest more than 35% of its value in securities issued or guaranteed by an EEA state. the KIID and Fund Prospectus are available from Jupiter on request. The KIID is available from Jupiter in the following languages: English, Dutch, Finnish, Swedish, Portuguese, French and German

This document contains information based on the FTSE World Europe Index and FTSE 100. ‘FTSE®’ is a trade mark owned by the London Stock Exchange Plc. and is used by FTSE International Limited (‘FTSE’) under license. The FTSE the FTSE World Europe Index and FTSE 100 are calculated by FTSE. FTSE does not sponsor, endorse or promote the product referred to in this document and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. All copyright and database rights in the index values and constituent list vest in FTSE.

For your security we may record or randomly monitor all telephone calls. If you are unsure of the suitability of an investment please contact your financial advisor. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given.

This document contains information based on the MSCI Europe Index. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.

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2511_SCV_EUR OPPS_CDF.