REG - JPMorganUS Small Cos - Final Results
28/03/2025 07:00
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RNS Number : 5862C JPMorgan US Smaller Co. IT 28 March 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN US SMALLER COMPANIES INVESTMENT TRUST PLC
FINAL RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2024
Legal Entity Identifier: 549300MDD7SOXDMBN667
Information disclosed in accordance with the DTR 4.1.3
Highlights:
· Investment Performance: The Company's total return on net assets for
the year ended 31st December 2024 was +11.3%, underperforming its benchmark,
the Russell 2000 Index in sterling terms, which returned +13.3%. Despite this,
the Company achieved a total return to shareholders of +18.7%, indicating a
narrowing of the discount at which the Company's shares traded over the year.
· Dividend: The Company declared a dividend in respect of the year
ended 31st December 2024 totalling 3.1 pence per share, subject to approval by
shareholders at the 2025 Annual General Meeting. This amount is driven by the
naturally occurring income on the underlying portfolio.
· Gearing and Loan Facility: The Company maintained a gearing level of
7.7% as of 31st December 2024. The Company had drawn down US$30 million
(£24.0 million) on its borrowing facility, reflecting the Board's policy to
utilise liquidity and borrowings to remain invested within a maximum gearing
limit of 15%.
· Share Repurchases: During the year, the Company repurchased
3,047,895 shares into Treasury, equivalent to 4.66% of the shares in issue, at
an average discount of 11.5%. This was part of the Company's active share
buyback program aimed at enhancing shareholder value and managing the discount
to net asset value.
Dominic Neary, Chair of JUSC, commented:
"The Board believes strongly in the case for long-term investment in US
smaller companies through an investment trust. US small cap investments are a
highly appealing proposition, offering access to a large and diverse
opportunity set of exciting and entrepreneurial companies geared to the US
economy."
"We are confident that the investment team continues to focus their investment
decisions on valuation-conscious, all-weather stocks that will be robust in
the face of political and economic developments. With the relative valuation
of small cap investments so attractive, and the US small cap bias towards the
home market, we believe that as the domestic-growth oriented policies are
implemented those that Invest in the Heart of America through your Company
will benefit from strong investment returns over time."
Don San Jose, Jon Brachle and Dan Percella, Portfolio Managers of JUSC,
commented:
"As we enter 2025, we remain constructive on the investment case for small
caps. Valuations are compelling and we see potential for a broadening of
returns beyond a handful of US mega-caps, to the market at large, including
smaller cap companies. Indeed, the valuation discount of small caps relative
to large caps is reminiscent of levels seen during the Tech, Media and Telecom
bubble of the late 1990s and early 2000s."
We intend to maintain our search for innovative, high-quality, smaller cap
companies with attractive investment cases, and we will continue to use any
bouts of market volatility to act on compelling stock selection opportunities,
with a view to building on the Company's long-term track record of strong
capital growth and outperformance."
CHAIR'S STATEMENT
I have great pleasure in presenting the Annual Report of JPMorgan US Smaller
Companies Investment Trust plc ('the Company') for the year ended 31st
December 2024. The year was notable in many ways: continued strong performance
from US equity markets, fuelled primarily by a handful of large capitalisation
technology stocks; the US Presidential election seeing Donald Trump secure a
second term in the White House; and, closer to home, a sustained period of
significantly widened discounts leading to record levels of investment trust
M&A activity alongside the arrival of vocal activist investors on share
registers across the sector.
Performance
US equity markets began 2024 on a strong note, fuelled by optimism
surrounding a 'soft landing' for the economy. Positive economic news, strong
consumption, solid corporate earnings and Federal Reserve interest rate cuts
provided further support to stock market performance. Latterly, the 2024
US elections had a significant impact on the markets on the expectation of
tax cuts and pro-growth policies with particular support for
domestically-oriented businesses. The initial euphoria rapidly faded as
initial policy targets of tariffs, tougher action in immigration and a shift
in US foreign policy were seen as less growth-positive and introduced
significant uncertainties.
Against this backdrop, the Company's total return on net assets over the year
was +11.3% which is modestly behind the +13.3% return for the benchmark, the
Russell 2000 index in sterling terms. Total return to shareholders was +18.7%
for the year, with the discount at which the Company's shares traded over the
12 month period narrowing.
While the Company's absolute total return performance was strong, the
performance relative to the benchmark over the short term is disappointing.
The investment team focuses on investment in more profitable, higher-quality
and less volatile small cap businesses which, while defensive in weaker
markets, can lag in markets that exhibit a preference for lower-quality growth
stocks. Importantly, the longer-term track record of benchmark outperformance
remains intact. This reflects the Manager's disciplined focus on investment in
high-quality, investment opportunities at attractive valuations.
Full details of investment performance, changes to the portfolio and the
outlook can be found in the Investment Manager's Report in the Annual Report
and Financial Statements.
Discount Management, Share Issuance and Buybacks
As I noted in our 2024 Interim Report, there has been a growing presence of
activist investors on share registers across the sector. For example, US firm
SABA Capital Management recently requisitioned meetings at seven trusts in
which it had accumulated significant shareholdings; ostensibly to realise the
value locked inside persistent share price discounts to net asset value (NAV),
but the underlying rationale was widely perceived to be a self-interested
attempt to gather assets in a way that failed to protect shareholder
interests. The boards and managers of the trusts involved overcame the long
standing challenges of communicating with individual shareholders to ensure
that they were made aware of the implications of the proposals and encouraged
to vote. In each case the resolutions were voted down on strong turnout. While
these actions have shaken the sector, there are certainly significant
positives to emerge. For example, the rejection of the proposals indicates
that shareholders value the unique attributes of investment trusts - most
notably an independent board representing the rights of all shareholders. It
has reminded all boards that persistent discounts must be proactively
addressed. Finally, it has provoked stronger engagement with government and
regulators to improve boards' abilities to engage directly with shareholders.
This must include individuals who hold their shares through platforms.
I would like to reassure shareholders that the Board continues to take a
proactive rather than reactive approach to such issues, as we always have
done, to protect and grow your interests as shareholders.
On a day-to-day basis this aim is best served by transacting in the Company's
shares when appropriate, aiming to minimise the discrepancy between the share
price and the net asset value. Our ability to do so depends on prevailing
market conditions and the behaviour and risk appetite of investors. Additional
challenges include US smaller companies' share price volatility and owning
dollar-denominated assets whilst reporting in sterling. We only transact in
the Company's shares when it will enhance shareholder value - buying back
stock at a discount to NAV to remove excess supply of the Company's shares
from the market, and issuing at a share price above NAV to avoid the formation
of an excessive premium.
With the shares trading at a discount throughout 2024 our primary focus was on
stimulating demand for the Company's shares. To this end, we have two key
levers at our disposal: an active, value-enhancing share buyback programme,
and effective ongoing marketing activities. We have continued to be busy on
both fronts.
During the year to 31st December 2024, the Company bought back 3,047,895
shares into Treasury, at an average price of 399.0p and a total cost of £12.2
million, in periods when discounts were particularly wide, reflected in the
weighted average discount of 11.5% at which these shares were acquired. Since
the year end, the Company has repurchased an additional 369,510 shares into
Treasury. The Company did not issue any shares during the year or since the
year-end.
On marketing activities, we continue to improve the promotion of the
Company to shareholders and the broader market. For example, the Board has
recently engaged an adviser to support the Manager in promoting the attractive
characteristics of the Company. Their primary focus is to maximise the impact
of the compelling content generated by the investment team under the evergreen
tagline 'Invest in the Heart of America.' To improve access to this content
the Company's website has been upgraded and we would strongly recommend it as
the primary source of information on the Company. The Board continues to work
actively on improving the Company's shareholder communications and PR
programme.
I am pleased to report that these actions, alongside the emerging recognition
of the appeal of attractively-valued, domestically-oriented, high-quality US
small cap stocks in a falling rate environment, mean that the Company's
discount, which averaged 8.9% over the course of the year, ending the year at
a narrower discount of 1.8% (2023: 7.9%), although it has since widened to
6.5% as I write.
Continuation of the Company
In accordance with the Company's Articles of Association, an ordinary
resolution will be put to shareholders at the forthcoming AGM that the Company
continues in existence as an investment trust for a further five-year period.
The Board believes strongly in the case for long-term investment in US smaller
companies through an investment trust. US small cap investments are a highly
appealing proposition, offering access to a large and diverse opportunity
set of exciting and entrepreneurial companies geared to the US economy.
Further, current valuations lead us to expect strong performance from small
caps over the next few years. The Company provides access to this attractive
sector that individual investors and many institutions would find difficult to
replicate. The investment trust structure is highly appropriate for investment
in this sector, offering stable capital for investment in a less liquid
sector, alongside the ability to borrow to enhance investment returns.
Finally, the US small cap investment team at JP Morgan have a proven long-term
track record of managing the Company through the consistent application of
their proven philosophy and process. Over the 10 years to 31st December 2024,
the total return from the Company's net assets was +187.1%, significantly
outperforming its benchmark which returned +158.9% over the same period.
During the last 12 months, the Board, via the Management Engagement Committee,
has undertaken a detailed review of the Manager and its investment approach.
While acknowledging that relative performance over shorter term periods has
been disappointing, the Board believes that the Manager's approach continues
to be appropriate for the Company and that JPMorgan Asset Management has the
appropriate resources to continue to manage the Company successfully.
Additionally, the Company's major shareholders have been consulted where
practicable, with feedback from this process indicating strong support for the
continuation resolution.
Accordingly, the Board believes that the continuation of the Company is in the
best interests of all shareholders and strongly recommends that shareholders
vote in favour of the resolution at the AGM in June 2025, as the Directors
intend to do in respect of their own holdings.
Revenue and Dividend
The Board is delighted to recommend a dividend of 3.1p in respect of the
financial year ended 31st December 2024 (2023: 3.0p). Subject to
shareholders' approval at the Annual General Meeting (AGM), this dividend will
be paid on 11th July 2025 to shareholders on the register at the close of
business on 13th June 2025. The ex dividend date is 12th June 2025.
The Company's objective is unchanged and remains one of capital growth. The
dividend distribution amount will normally be driven by the minimum dividend
required to maintain the Company's investment trust status. Therefore, the
dividend level may fluctuate as the distributions typically reflect the
naturally occurring income on the underlying portfolio.
Gearing
Our policy sees gearing levels adjusted to reflect changes in the Board's
expectations for longer-term opportunities and market risks (with input from
the Manager), rather than being used as a short-term market-timing tool.
At the beginning of the year the Company had a US$30 million (with an option
to draw a further US$10 million) revolving credit facility with Scotiabank to
maintain a meaningful but modest level of gearing. On 15th March 2024 the
Board renewed the facility with Scotiabank, the new facility being a secured
364-day facility for a reduced amount of US$20 million. In November 2024 the
Board elected to utilise the full accordion US$10 million facility noting the
attraction of small cap valuations relative to large caps. The Board renewed
the loan facility in March 2025 with a new loan provider, Bank of America.
This is now for US$35 million (with a US$5 million accordion option) and is a
360 day evergreen facility.
As at 31st December 2024, the Company had drawn down US$30 million (GBP 24.0
million). It closed the year with a gearing level of 7.7%. The Board believes
that the use of gearing is a key advantage of the investment trust structure
and has consistently used gearing over time within its permitted 5% cash to
15% geared range.
Board and Succession Planning
In January 2025 the Board, through its Nomination Committee, carried out a
comprehensive evaluation of the Board, its Committees, the individual
Directors and the Chair. Topics discussed included the size and composition of
the Board, Board information and processes, shareholder engagement, and
training and accountability. The resulting report demonstrated the Board is
working effectively for shareholders and in line with expectations. It was
agreed that all the Directors will offer themselves for re-appointment at the
forthcoming AGM and I very much hope you will vote for their re-appointment.
The Board has set in place detailed succession plans. These are particularly
important for a board of four directors to ensure no discontinuity is caused
by the retirement of non-executive directors after nine years' service,
according to our policy, and as recommended by the AIC Code of Corporate
Governance. Shefaly Yogendra will retire from the Board at the AGM in 2026. We
are in the process of appointing an external adviser to assist in recruiting a
new Director, with the intention to complete the process in the latter half of
2025.
Board Diversity
The Board recognises the value and importance of diversity in the boardroom. I
am pleased to report that the Board meets the FCA Listing Rules targets on
gender diversity criteria, female representation in a senior role and ethnic
representation on the Board.
Review of services provided by the Manager
During the year, the Board, through its Management Engagement Committee,
carried out a thorough review of the investment management, secretarial and
marketing services provided to the Company by the Manager. Following this
review, the Board has concluded that the continued appointment of the Manager
on the terms agreed is in the interests of the shareholders.
The Company's ongoing charges for the financial year as a percentage of the
average of the daily net assets during the year, which include the management
fee(1), gearing costs and other expenses, were 0.92% (2023: 0.93%).
(1) 70 basis points per annum on gross assets (excluding any holding
in the JPM liquidity fund).
Environment, Social and Governance (ESG) considerations
The Board continues to engage with the Manager on the integration of ESG
factors into its investment process. The Board is satisfied that the Manager
has a robust and well-resourced approach, and that ESG factors are considered
by the Portfolio Managers throughout the investment process.
The Board shares the Manager's view of the importance of financially material
ESG factors when making investments for the long term and, in particular, the
necessity of continued engagement throughout the duration of investment. The
Portfolio Managers' ESG report describes the developments in the ESG process
that have taken place during the year together with practical examples of how
these are implemented.
Annual General Meeting
We are inviting shareholders to join us in person for the Company's
sixty-eighth AGM to be held on Tuesday 17th June 2025 at 2.30 p.m. at 60
Victoria Embankment, London EC4Y 0JP. The Board hopes to welcome as many
shareholders as possible.
As with previous years, you will have the opportunity to hear from the
Portfolio Managers. Their presentation will be followed by a question and
answer session. There will be refreshments afterwards when shareholders will
be able to meet members of the Board. Shareholders wishing to follow the AGM
proceedings but choosing not to attend in person will be able to do so online,
and will be able to ask questions through conferencing software. Details on
how to register together with access details can be found on the Company's
website: www.jpmussmallercompanies.co.uk, or by contacting the Company
Secretary at jpmam.investment.trusts@jpmorgan.com.
In accordance with normal practice, all voting on the resolutions will be
conducted on a poll. Due to technological reasons, shareholders viewing the
meeting via conferencing software will not be able to vote on the poll and we
therefore encourage all shareholders, and particularly those who cannot attend
physically, to submit their proxy votes in advance of the meeting, so that
they are registered and recorded at the AGM. Proxy votes can be lodged in
advance of the AGM either by post or electronically. Detailed instructions are
included in the Notes to the Notice of Annual General Meeting in the Annual
Report. Please ensure that you act promptly on the notifications for voting,
or consider contacting your share platform or wealth manager by their
stipulated deadline to ensure that your votes are submitted on time. In
addition, shareholders are encouraged to send any questions ahead of the AGM
to the Board via the Company Secretary at the email address above. We will
endeavour to answer relevant questions at the meeting or via the website
depending on arrangements in place at the time.
If there are any changes to the above AGM arrangements, the Company will
update shareholders through its website and, as appropriate, through an
announcement on the London Stock Exchange.
My fellow Board members, representatives of JPMorgan and I look forward to the
opportunity to meet and speak with shareholders after the formalities of the
meeting have been concluded.
Stay Informed
The Company delivers email updates with regular news and views, as well as
the latest performance. If you have not already signed up to receive these
communications and you wish to do so, you can opt in via
https://tinyurl.com/JUSC-Sign-Up or by scanning the QR code in the Annual
Report.
Further, the board is keen to engage with shareholders to ensure that all
views are represented in our deliberations, and I therefore welcome your
questions and observations via email at jpmam.investment.trusts@jpmorgan.com.
Outlook
The Board continues to have high confidence in the investment team, and
their investment philosophy and process which have been applied consistently
to generate strong long-term returns for the Company. The political and
economic backdrop is continuing to develop under the new administration as the
old order is replaced with a revised political agenda, and a different way of
running government and interacting with the rest of the world. While this
introduces significant uncertainty, the new administration under Donald Trump
has committed to supporting growth in the domestic economy, albeit early
actions do not directly support this stated intention. We are confident that
the investment team continues to focus their investment decisions on
valuation-conscious, all-weather stocks that will be robust in the face of
political and economic developments. With the relative valuation of small cap
investments so attractive, and the US small cap bias towards the home market,
we believe that as the domestic-growth oriented policies are implemented those
that Invest in the Heart of America through the Company will benefit from
strong investment returns over time.
Dominic Neary
Chair
28th March 2025
INVESTMENT MANAGER'S REPORT
Market Review
In 2024, the US economy and financial markets experienced another robust
year. The S&P 500 Index achieved a second year of double-digit returns,
posting an impressive return of more than 25% in US dollars and more than 27%
in sterling. This remarkable growth was underpinned by resilient consumer
spending and marked the fourth consecutive year of above-trend economic
expansion.
US equity markets began 2024 on a strong note, fuelled by optimism that the
economy would achieve a 'soft landing'. Initially, economists projected modest
growth of only 1.2% growth for the year. However, GDP growth came in above
expectations, with real GDP growth for the US increasing by 2.8% year-on-year
in 2024. Consumption, which constitutes almost 70% of nominal GDP, has been
especially resilient. Year-over-year, real consumer spending rose by 2% for
goods, while durable goods and services both increased by 3%.
Throughout the year, the job market and interest rates remained central topics
of discussion. Despite some concerns about an economic slowdown, employment
has grown for 48 consecutive months and the unemployment rate concluded the
year at 4.1%, only slightly higher than where it started, at 3.8%. Inflation
made significant progress towards the Federal Reserve's 2% target, which
allowed it to begin cutting interest rates. Federal policy has been targetting
lower inflation since March 2022, when rates began increasing to slow the
economy, and by August 2023 the benchmark rate reached its highest level in 23
years. As inflation moderated, rates were cut by 0.5 percentage points in
September 2024, followed by two additional cuts, each of 0.25 percentage
points. By year-end, the federal funds rate stood in a range of 4.25% to 4.5%.
The US Presidential election also had a significant impact on the markets,
which experienced substantial gains following the results. This was largely
driven by expectations that the new administration would implement tax cuts
and other pro-growth policies. Furthermore, US Corporate earnings also boosted
the market's performance, once again surpassing expectations. Earnings
forecasts for 2024 rose steadily due to the supportive macroeconomic
environment. Current projections indicate earnings growth of 12% year-on-year
for 2024, notably higher than the ten-year average growth rate of 8%.
Within the small cap space, the market environment over the past year favoured
more growth-oriented investments. The Russell 2000 Index posted an 11.5% gain
in US Dollars and 13.3% in Sterling in 2024. While this performance lagged
that of larger-cap peers, it matched the index's historical annualised return
since 1978. Within the Russell 2000 index, all sectors except energy posted
positive returns. Telecoms, Technology and Consumer Staples were the best
performing sectors, while Energy, Health Care and Basic Materials were the
worst performers.
Performance
Against this background, the Company's net asset value total return
increased by +11.3 % in 2024, underperforming its benchmark, the Russell 2000
Index (Net) total return, which rose by +13.3% in sterling terms. Our
portfolio seeks to invest in high quality companies at a reasonable valuation,
and maintained a pro-cyclical tilt throughout the year. This focus on quality,
however, was a headwind in a market that favoured growth-oriented and
higher-momentum stocks.
Within the portfolio, we owned a number of securities which performed well,
particularly in areas like Financials, Consumer Staples and Energy, where
stock selection was positive. Throughout the year, and particularly in the
fourth quarter (Q4), however, our portfolio faced challenges driven by
heightened investor enthusiasm for technology stocks, particularly in themes
like Artificial Intelligence (AI), quantum computing, and space, which make up
a smaller proportion of our portfolio. Additionally, the increase in 10-year
Treasury yields by 80 basis points during Q4 created further headwinds for
some of our Industrial holdings. Although overall index returns were
reasonable, factor performance was decidedly risk-on, with low returns on
equity, non-earners, volatility, and momentum leading, which was a headwind
for our quality-oriented style.
With regards to relative performance over the past year, our stock
selection in the financials and consumer staples sectors contributed
positively to performance. Within Financials, our overweight position in
Stepstone Group and exposure to Evercore added to the Company's performance.
Stepstone Group is a global private markets firm which manages investments in
private equity, real estate, infrastructure, and private debt. Shares
outperformed on account of solid financial results, significant fundraising
achievements, and growth in fee-related earnings and margins. The company saw
increases in private wealth assets under management and undeployed fee-earning
capital. Additionally, the buyout of remaining stakes in its infrastructure,
private debt, and real estate businesses positively impacted the stock. We
believe Stepstone Group remains well-positioned to capitalise on the secular
growth in private markets, and this underpins our ongoing conviction in the
stock. Evercore, a provider of investment banking advisory services for
mergers and acquisitions, performed strongly, fuelled by solid earnings,
robust advisory revenues, and an anticipated recovery in capital markets.
Strategic investments in talent, combined with market share gains in large
deals also boosted investor confidence. While we still like the company, we
are actively monitoring our holding on account of its recent outperformance
and investors' high expectations from the stock.
Elsewhere, our exposure to DT Midstream (DTM) proved beneficial. This company
provides natural gas transportation and storage services. The stock rose due
to consistent profit growth and strategic expansions, including key project
completions and pipeline acquisitions. The company's robust project backlog
and increased demand for natural gas added to positive investor sentiment. We
continue to view DTM as a quality, defensive energy company, and we remain
comfortable with our holding.
On the other hand, our stock selection in the Industrials and Technology
sectors detracted the most. Within Industrials, our overweight position in
Janus International and exposure to Willscot hurt performance. Janus
International manufactures and supplies turn-key self-storage and commercial
and industrial building solutions. The stock underperformed due to declining
revenues and earnings, driven by reduced volumes and pricing, particularly in
the self-storage and commercial segments. Despite some growth in new
construction, the company's overall financial performance was hampered by
project delays and macroeconomic uncertainties. However, we remain confident
in the longer-term prospects for the business, as the current challenges are
macroeconomic in nature, rather than company specific. Willscot is the largest
provider of modular office space and portable storage solutions. Shares
declined due to volume weakness and macroeconomic challenges, including weak
non-residential construction activity. The termination of the previously
announced McGrath acquisition further added to the volatility. We remain
comfortable with our position as the business is of high quality and is
expected to recover as macroeconomic conditions improve.
Within Technology, our lack of exposure to Super Micro Computer was the
largest detractor. This company manufactures server solutions for data
centres. The stock performed well in 2024. Demand for AI servers and liquid
cooling solutions was high, generating strong revenue growth and facilitating
significant market share gains. However, we have avoided this name due to the
company's failure to meet our quality threshold, as we have concerns about the
competition environment, cash flow challenges, and regulatory risks.
Performance Attribution
Year ended 31st December 2024
% %
Contributions to total returns
Benchmark return 13.3
Asset Allocation 2.2
Stock Selection* (4.2)
Investment Manager Contribution (2.0)
Portfolio total return 11.3
Impact of cash/gearing* 0.3
Management fee and Other administrative expenses (0.9)
Share buybacks 0.6
Other effects -
Cum Income Net Asset Value total return 11.3
Share Price total return 18.7
* Includes impact of FX movements.
Source: Wilshire, JPMAM and Morningstar. All figures are on a total return
basis.
Performance attribution analyses how the Company achieved its recorded
performance relative to its benchmark index.
Portfolio Positioning
Our investment philosophy remains focused on finding companies with durable
franchises, good management teams, and stable earnings, that trade at a
discount to their intrinsic value. We stand by our conviction that the
investment case for smaller companies is appealing, especially for long-term
investors as they include innovative companies that serve market niches and
thereby provide investors with early access to innovative companies.
We continue to favour high quality cyclicals, including initiations in the
consumer discretionary and basic materials sectors, while also adding to
existing holdings that lagged in the quarter. Consistent with our process,
these were funded by the sale of certain higher beta cyclicals where
valuations had begun to look excessive. We also trimmed some of our lower
conviction holdings. Our largest absolute and relative overweight remains in
industrials, and our second largest relative overweight is in basic materials.
On the other hand, our largest underweights remain in the Health Care,
Telecommunications, Energy, and Technology sectors given the lower quality
attributes in key parts of these sectors. However, we continue to look for new
ideas in these areas.
Market Outlook
As we enter 2025, we remain constructive on the investment case for small
caps, for several reasons. Firstly, valuations are compelling and we see
potential for a broadening of returns beyond a handful of US mega-caps, to the
market at large, including smaller cap companies. Indeed, the valuation
discount of small caps relative to large caps is reminiscent of levels seen
during the Tech, Media and Telecom bubble of the late 1990s and early 2000s.
Furthermore, while small cap earnings growth has lagged in recent years, Wall
Street anticipates that this asset class will nearly double the growth of
large caps this year. This optimistic outlook is driven by favourable macro
conditions and increased capital spending in innovative areas such as AI,
software and healthcare.
A supportive macroeconomic environment is important for small caps, as they
tend to generate more of their earnings domestically, compared to larger cap
companies. Smaller caps are also more exposed to the economic cycle and the
level of interest rates, relative to larger caps, which tend to have stronger
balance sheets and lower gearing. The risk of near-term recession appears low,
as employment levels are stable, and consumer spending is robust and domestic
GDP growth looks set to remain above 2% this year. In addition, interest rates
are now well off their highs, with further rate reductions expected over the
course of the year.
While tariffs, federal government layoffs, immigration reform and geopolitical
changes under the new US presidential administration have introduced more
uncertainty into the economic outlook in the early weeks of 2025, our
quality-focused investment process has a history of superior downside
protection. We intend to maintain our search for innovative, high-quality,
smaller cap companies with attractive investment cases, and we will continue
to use any bouts of market volatility to act on compelling stock selection
opportunities, with a view to building on the Company's long-term track record
of strong capital growth and outperformance.
Don San Jose
Jon Brachle
Dan Percella
Portfolio Managers
28th March 2025
PRINCIPAL AND EMERGING RISKS
The Directors confirm that they have carried out a robust assessment of the
principal and emerging risks facing the Company, including those that would
threaten its business model, future performance, solvency or liquidity.
With the assistance of the Manager, the Audit Committee maintains a risk
matrix which identifies the principal risks to which the Company is exposed
and methods of mitigating against them as far as practicable. The risks
identified and the broad categories in which they fall, and the ways in which
they are managed or mitigated are summarised below.
The AIC Code of Corporate Governance requires the Audit Committee to put in
place procedures to identify emerging risks. At each meeting, the Board
reviews all potential risks and considers emerging risks which it defines as
potential trends, sudden events or changing risks which are characterised by a
high degree of uncertainty in terms of occurrence probability and possible
effects on the Company. As the impact of emerging risks is understood, these
risks may be entered on the Company's risk matrix and mitigating actions
considered as necessary.
In assessing the risks and how they can be mitigated, the Board has given
particular attention to those risks that might threaten the viability of the
Company.
These principal and emerging risks are listed below. It should be noted that
the emergence of, or a change in, a risk can have an impact on another risk:
Movement in risk
status in year to
Principal risk Description Mitigating activities 31st December 2024
Investment Management and Performance
Under-performance Poor implementation of the investment strategy may lead to underperformance A broadly diversified portfolio of equities is managed in line with No change
against the Company's benchmark index and peer companies. Board-approved investment restrictions and guidelines. Investments are
monitored and reported on by the Manager who provides the Board with regular
information, including performance data and attribution analyses, revenue
estimates, liquidity reports and shareholder analyses.
The Board monitors the implementation and results of the investment process
with the Portfolio Managers, who participate at all Board meetings, and
reviews data which show statistical measures of the Company's risk profile.
The Portfolio Managers employ the Company's gearing within a strategic range
set by the Board. In addition to regular Board reviews of investment strategy,
the Board holds a separate meeting devoted to strategy each year.
Market and Economic Market risk arises from uncertainty about the future prices of the Company's This risk is managed to some extent by diversification of investments and by Increased
investments, which might result from economic, fiscal and regulatory change, regular communication with the Manager on matters of investment strategy and
including the risk of global economic disruption and market volatility in the portfolio construction which will directly or indirectly include an assessment
aftermath of COVID-19. of these risks.
Geopolitical risks will also affect the market and are currently heightened The Board considers asset allocation, stock selection and levels of gearing on
due to the war between Ukraine and Russia and more recently the conflict in a regular basis and has set investment restrictions and guidelines, which are
the Middle East, and ongoing tensions with China. monitored and reported on by the Manager. The Board monitors the
implementation and results of the investment process with the Manager.
Market factors such as interest rates, inflation and equity market performance
may impact the value of investments and the performance of the Company. The Manager's market strategists are available for the Board and can discuss
market trends. External consultants and experts can be accessed by the Board.
The Board can, with shareholder approval look to amend the investment policy
and objectives of the Company, if required, to enable investment in companies
or assets which offer more appealing risk/return characteristics in prevailing
economic conditions.
Marketing
Competitive positioning Competing investment vehicles (e.g. ETFs) or new investment technologies The Manager has a dedicated investment trust sales team that works closely Increased
may render the Company's shares unappealing to shareholders. with the Company's broker as well as current and prospective shareholders.
Regular meetings are held with shareholders to try to ensure continued
demand/interest. Both the Manager and the broker submit a sales activity
report to each Board meeting and are available to discuss any issues
throughout the year.
In addition, the Manager's marketing team has focused on marketing more
effectively to retail shareholders which represent a vast majority of the
Company's shareholder base.
False adverse publicity False adverse publicity via social platforms and networks could lead to Monitored by the Manager's PR and marketing teams. Increased
reputational damage to the Company and a lack of engagement by/appetite of
existing or potential shareholders. May lead to the discount widening.
Operational Risks
Discount Control Investment trust shares often trade at discounts to their underlying NAV; The Board monitors the share price against the absolute and sector relative Increased
they can also trade at a premium. Discounts and premiums can fluctuate premium/discount levels. The Board reviews sales and marketing activity and
considerably leading to volatile returns for shareholders. sector relative performance, which it believes are the primary drivers of the
relative premium/discount level. The Company has authority to buy back its
existing shares or issue new shares to enhance the NAV per share for remaining
shareholders when deemed appropriate.
Legislative change Changes to financial or tax legislation in the UK may lead to changes to The Manager has a team that considers proposed changes to legislation and Increased
the operating model of the Company and/or reduce the appeal of the Company to relevant updates are reported to the Board. The Manager is also a member of
shareholders. the AIC Manager's Forum and Technical Committee. The Manager's Sales team is
also aware of these changes and will form part of the feedback process.
Loss of Investment Team or Portfolio Manager A sudden departure of the Portfolio Managers, or several members of the The Board seeks assurance that the Manager takes steps to reduce the No change
investment management team could result in reputational damage to the Company. likelihood of such an event by ensuring appropriate succession planning and
the adoption of a team-based approach, as well as special efforts to retain
key personnel. The Board engages with the senior management of the Manager in
order to mitigate this risk.
Outsourcing Cyber security breaches or other events may cause disruption to, or failure Details of how the Board monitors the services provided by JPM and its No change
of, the Manager's accounting, dealing or payments systems or the Registrar, associates and the key elements designed to provide effective risk management
Depositary or Custodian's records may prevent accurate reporting and and internal control are included within the Risk Management and Internal
monitoring of the Company's financial position or a misappropriation of Controls section of the Corporate Governance Statement in the Annual Report.
assets.
The Manager has a dedicated cyber security team and budget that is focussed on
identifying potential or actual threats. The Manager also has a Business
Continuity Plan which includes Disaster Recovery Sites and work from home
protocols and the relevant technology is regularly tested. The Manager
confirms cyber security controls and BCP planning in place for key service
providers.
The Manager reports to Board on cyber security controls, BCP testing and the
implementation of plans to mitigate the impact of not being able to access the
office.
Cyber Crime Cyber attack on JPMorgan or the systems that the Manager uses to support The Manager has a Cyber security management programme in place with a multi No change
the Company. These attacks can take many guises, targetting partners in the billion dollar budget each year. The Manager's third party oversight team
supply chain, social engineering (e.g. phising, smishing and vishing), denial (TPO) is a dedicated function that establishes the risk management governance
of service (via a flood of malicious internet traffic) and ransomware. framework and enforces defined policies and standards for third party service
providers.
The Company benefits directly and/or indirectly from all elements of
JPMorgan's Cyber Security programme including TPO. The controls are regularly
tested and updates are given to the quarterly JPMF Audit, Risk, Compliance
& Controls (ARCC) Committee and a summary of these reports is submitted to
the Company's Audit Committee. The information technology controls around
physical security of JPMorgan's data centres, security of its networks and
security of its trading applications, are tested by independent auditors and
reported every six months against the AAF Standard.
The Company and the Manager have evidence from the major service providers
that they have procedures in place to maintain the best practices in the fight
against cybercrime and to ensure business resiliency.
Environmental
Climate Change Climate change has become one of the most critical issues confronting The Board receives ESG reports from the Manager on the portfolio and the Increased
companies and their investors. Climate change can have a significant impact on way ESG considerations are integrated into the investment decision-making, so
the business models, sustainability and even viability of individual as to mitigate risk at the level of stock selection and portfolio
companies, whole sectors and even asset classes. construction. As extreme weather events become more common, the resiliency,
business continuity planning and the location strategies of the Company's
services providers will come under greater scrutiny.
Movement in risk
status in year to
Emerging risk Description Mitigating activities 31st December 2024
Political and Economic Political issues and changes in financial or tax legislation in the UK or The Manager monitors events and makes recommendations to the Board on Increased
the US may lead to changes to the operating model of the Company and/or reduce accounting, dividend and tax policies and the Board seeks external advice
the appeal of the Company to shareholders. The impact of increased spending on where appropriate.
defence is likely to add to the ongoing debt burden from the COVID19 stimulus
packages. When combined with other factors (for example; potential of
stagflation, recession and the unknown consequences of the war in Ukraine)
these could lead to material adverse movements in share prices.
UK market attraction and/or liquidity The investment decision process of investors may be negatively impacted by The Manager has a dedicated investment trust sales team that works closely Increased
various factors which could lead to a lack of demand for the Company's shares. with the Company's broker as well as current and prospective shareholders.
These factors include the potential impact of social upheaval in both the UK Regular meetings are held with shareholders to try to ensure demand/interest.
and the US and the consequences of a decline in the number of companies listed
in the UK which could result in lower liquidity of the Company's shares.
TRANSACTIONS WITH THE MANAGER
Details of the management contract are set out in the Directors' Report in
the Annual Report and Financial Statements. The management fee payable to the
Manager for the year was £2,033,000 (2023: £2,003,000) of which £2,000
(2023: £nil) was outstanding at the year end.
Included in administration expenses in note 6 in the Annual Report and
Financial Statements are safe custody fees amounting to £3,000 (2023:
£3,000) payable JPMorgan Chase Bank N.A. of which £nil (2023: £1,000) was
outstanding at the year end.
The Company also holds cash in the JPMorgan USD Liquidity Fund, which is
managed by JPMorgan Asset Management (Europe) S.à r.l. At the year end this
was valued at £1.3 million (2023: £19.2 million). Income amounting to
£578,000 (2023: £500,000) was receivable during the year of which £nil
(2023: £nil) was outstanding at the year end. The JPMorgan USD Liquidity Fund
does not charge a fee and the Company does not invest in any other investment
fund managed or advised by JPMorgan.
Handling charges on dealing transactions amounting to £10,000 (2023: £7,000)
were payable to JPMorgan Chase Bank N.A during the year of which £2,000
(2023: £2,000) was outstanding at the year end.
At the year end, total cash of £10,000 (2023: £42,000) was held with
JPMorgan Chase Bank N.A. A net amount of interest of £1,000 (2023: £nil) was
receivable by the Company during the year from JPMorgan Chase Bank, N.A of
which £nil (2023: £nil) was outstanding at the year end.
TRANSACTIONS WITH RELATED PARTIES
Full details of Directors' remuneration and shareholdings can be found in
the Directors' Remuneration Report and in note 6 of the Annual Report and
Financial Statements.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and the
Financial Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare the Annual Report and Financial
Statements for each financial year. Under that law, the Directors have elected
to prepare the financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting Standards,
comprising Financial Reporting Standard 102, the Financial Reporting Standard
applicable in the UK and Republic of Ireland (FRS 102) and applicable law).
Under Company law the Directors must not approve the Financial Statements
unless they are satisfied that taken as a whole, the Annual Report and
Financial Statements are fair, balanced and understandable, provide the
information necessary for shareholders to assess the Company's position and
performance, business model and strategy and that they give a true and fair
view of the state of affairs of the Company and of the net return or loss of
the Company for that period. In order to provide these confirmations, and in
preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards, comprising FRS 102,
have been followed, subject to any material departures disclosed and explained
in the financial statements; and
• prepare the financial statements on a going concern basis unless it is
inappropriate to presume that the Company will continue in business.
and the Directors confirm that they have done so.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and to
enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The Financial Statements are published on the
www.jpmussmallercompanies.co.uk website, which is maintained by the Manager.
The maintenance and integrity of the website maintained by the Manager is, so
far as it relates to the Company, the responsibility of the Manager. The work
carried out by the Auditors does not involve consideration of the maintenance
and integrity of this website and, accordingly, the Auditor accepts no
responsibility for any changes that have occurred to the accounts since they
were initially presented to the website. The accounts are prepared in
accordance with UK legislation, which may differ from legislation in other
jurisdictions.
Under applicable law and regulations the Directors are also responsible for
preparing a Directors' Report and Directors' Remuneration Report that comply
with that law and those regulations.
Each of the Directors, whose names and functions are listed in the Board of
Directors section in the Annual Report confirm that, to the best of their
knowledge:
• the financial statements, which have been prepared in accordance
with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law), give a true and fair view of the
assets, liabilities, financial position and return or loss of the Company; and
• the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal and emerging risks and uncertainties that it
faces.
The Board confirms that it is satisfied that the Annual Report and
Financial Statements taken as a whole are fair, balanced and understandable
and provide the information necessary for shareholders to assess the Company's
position and performance, business model and strategy.
The Board also confirms that it is satisfied that the Strategic Report and
Directors' Report include a fair review of the development and performance of
the business, and the Company, together with a description of the principal
risks and uncertainties that it faces.
For and on behalf of the Board
Dominic Neary
Chair
28th March 2025
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31st December 2024
2024 2023
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value
through profit or loss - 28,833 28,833 - 10,889 10,889
Net foreign currency (losses)/gains - (383) (383) - 825 825
Income from investments 3,466 97 3,563 3,865 381 4,246
Interest receivable 579 - 579 500 - 500
Gross return 4,045 28,547 32,592 4,365 12,095 16,460
Management fee (407) (1,626) (2,033) (401) (1,602) (2,003)
Other administrative expenses (572) - (572) (520) - (520)
Net return before finance costs and taxation 3,066 26,921 29,987 3,444 10,493 13,937
Finance costs (256) (1,021) (1,277) (304) (1,218) (1,522)
Net return before taxation 2,810 25,900 28,710 3,140 9,275 12,415
Taxation (489) - (489) (573) (57) (630)
Net return after taxation 2,321 25,900 28,221 2,567 9,218 11,785
Return per share 3.74p 41.72p 45.46p 3.98p 14.30p 18.28p
Dividend declared in respect of the financial year ended 31st December 2024
total 3.1p (2023: 3.0p) per share amounting to £1,879,000 (2023:
£1,913,000). Further information on dividends is given in note 10 in the
Annual Report and Financial Statements.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the year.
The 'Total' column of this statement is the profit and loss account of the
Company and the 'Revenue' and 'Capital' columns represent supplementary
information prepared under guidance issued by the Association of Investment
Companies.
Net return after taxation represents the profit for the year and also Total
Comprehensive Income.
STATEMENT OF CHANGES IN EQUITY
For the year ended 31st December 2024
Called up Capital
share Share redemption Capital Revenue
capital premium reserve reserves(1) reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31st December 2022 1,638 45,758 1,851 221,271 2,539 273,057
Repurchase of shares into Treasury - - - (3,502) - (3,502)
Net return - - - 9,218 2,567 11,785
Dividend paid in the year (note 2) - - - - (1,615) (1,615)
At 31st December 2023 1,638 45,758 1,851 226,987 3,491 279,725
Repurchase of shares into Treasury - - - (12,242) - (12,242)
Repurchase and cancellation of forfeited shares(2,3) (3) - 3 (42) - (42)
Net return - - - 25,900 2,321 28,221
Dividends paid in the year (note 2) - - - - (1,890) (1,890)
Forfeiture of unclaimed dividends(2) (note 2) - - - - 17 17
At 31st December 2024 1,635 45,758 1,854 240,603 3,939 293,789
(1) Part of these reserves form the distributable reserves of the
Company and may be used to fund distributions to shareholders. Further details
can be found in note 15 in the Annual Report and Financial Statements.
(2) During the period, the Company undertook an Asset Reunification
Program to reunite inactive shareholders with their shares and unclaimed
dividends. In accordance with the Company's Articles of Association, the
Company exercised its right to forfeit the shares belonging to untraced
shareholders for a period of 12 years or more. These shares were bought back
by the Company and cancelled. The proceeds, net of costs, were returned to the
Company. In addition, any unclaimed dividends older than 12 years from the
date of payment of such dividend were forfeited and returned to the Company.
(3) The Company repurchased and subsequently cancelled forfeited
shares at a total cost of £400,000. The amount due on these forfeited shares
was £358,000, leading to a net cost of £42,000.
STATEMENT OF FINANCIAL POSITION
As at 31st December 2024
2024 2023(1)
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss 316,510 283,986
Current assets
Debtors 265 308
Current assets investments(1) 1,265 19,195
Cash at bank(1) 10 42
1,540 19,545
Current liabilities
Creditors: amounts falling due within one year (24,261) (23,806)
Net current liabilities (22,721) (4,261)
Total assets less current liabilities 293,789 279,725
Net assets 293,789 279,725
Capital and reserves
Called up share capital 1,635 1,638
Share premium 45,758 45,758
Capital redemption reserve 1,854 1,851
Capital reserves 240,603 226,987
Revenue reserve 3,939 3,491
Total shareholders' funds 293,789 279,725
Net asset value per share (note 4) 484.6p 438.6p
(1) For the year ended 31st December 2023, the 'Cash and cash
equivalents' line item in the Statement of Financial Position has been revised
to 'Cash at bank' and 'Current asset investments.' This revision separately
reports the £19,195,000 investment in the JPMorgan USD Liquidity Fund as
'Current asset investments' in accordance with the statutory format required
by the Companies Act 2006. This adjustment does not affect any other line
items in the Statement of Financial Position or the total current assets.
STATEMENT OF CASH FLOWS
For the year ended 31st December 2024
2024 2023
£'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 29,987 13,937
Adjustment for:
Net gains on investments held at fair value through profit or loss (28,833) (10,889)
Net foreign currency losses/(gains) 383 (825)
Dividend income (3,563) (4,246)
Interest income (579) (500)
Realised gains/(losses) on foreign exchange transactions 44 (1)
Realised exchange losses on liquidity fund (464) (344)
Decrease in accrued income and other debtors 1 10
Increase in accrued expenses 62 77
Net cash outflow from operations before dividends, interest and taxation (2,962) (2,781)
Dividends received 3,009 3,469
Interest received 657 447
Overseas withholding tax recovered 29 116
Net cash inflow from operating activities 733 1,251
Purchases of investments (120,370) (70,750)
Sales of investments 116,679 89,062
Net cash (outflow)/inflow from investing activities (3,691) 18,312
Dividends paid (1,890) (1,615)
Refund from forfeiture of unclaimed dividends 17 -
Net cost of repurchasing and cancelling forfeited shares(2) (42) -
Repurchase of shares into Treasury (12,242) (3,502)
Repayment of bank loan (7,850) -
Draw down of bank loan 7,888 -
Loan interest paid (1,305) (1,625)
Net cash outflow from financing activities (15,424) (6,742)
(Decrease)/increase in cash and cash equivalents(1) (18,382) 12,821
Cash and cash equivalents at start of year(1) 19,237 6,652
Exchange movements 420 (236)
Cash and cash equivalents at end of year(1) 1,275 19,237
Cash and cash equivalents consist of(1):
Cash at bank 10 42
Current asset investments in JPMorgan USD Liquidity Fund 1,265 19,195
Total 1,275 19,237
(1) The term 'cash and cash equivalents' is used for the purposes of
the Statement of Cash Flows.
(2) The Company repurchased and subsequently cancelled forfeited
shares at a total cost of £400,000. The amount due on these forfeited shares
was £358,000, leading to a net cash outflow of £42,000.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31st December 2024
1. Accounting policies
(a) General information and basis of accounting
The financial statements are prepared under the historical cost convention,
modified to include fixed asset investments at fair value, and in accordance
with the Companies Act 2006, United Kingdom Generally Accepted Accounting
Practice (UK GAAP), including 'the Financial Reporting Standard applicable in
the UK and Republic of Ireland' (FRS 102) and with the Statement of
Recommended Practice 'Financial Statements of Investment Trust Companies and
Venture Capital Trusts' (the 'SORP') issued by the Association of Investment
Companies in July 2022.
All of the Company's operations are of a continuing nature.
The Directors believe that having considered the Company's investment
objective, risk management policies, capital management policies and
procedures, the nature of the portfolio and expenditure projections, the
Company has adequate resources, an appropriate financial structure and
suitable management arrangements in place to continue in operational existence
up to 31st March 2026 which is at least 12 months from the date of approval of
these financial statements. In particular, the Board has considered the
ongoing impact of the war between Ukraine and Russia and more recently the
conflict in the Middle East, and the tensions between the USA and China and
believes that this will have a limited financial impact on the Company's
operational resources and existence. The Directors have a reasonable
expectation that the Company's shareholders will vote in favour of
continuation at the AGM in 2025. Furthermore, the Company has in place a US$35
million (with a US$5 million accordion option) loan facility, renewed on 14th
March 2025. For these reasons, the Directors consider it appropriate to adopt
the going concern basis of accounting in preparing the Company's financial
statements. They have not identified any material uncertainties to the
Company's ability to continue as a going concern.
The policies applied in these financial statements are consistent with those
applied in the preceding year.
2. Dividends
(a) Dividends paid and declared
2024 2023
Pence £'000 Pence £'000
Dividend paid
Final dividend in respect of prior year 3.0 1,890 2.5 1,615
Total dividends paid in the year 3.0 1,890 2.5 1,615
Forfeiture of unclaimed dividends over 12 years - (17) - -
Net dividends 3.0 1,873 2.5 1,615
Dividend declared in respect of the year
Final dividend 3.1 1,879 3.0 1,913
All dividends paid and declared in the period have been funded from the
Revenue Reserve.
The dividend proposed in respect of the year ended 31st December 2023 amounted
to £1,913,000. However, the amount paid amounted to £1,890,000 due to shares
repurchased after the balance sheet date but prior to the record date.
The final dividend has been declared in respect of the year ended 31st
December 2024. In accordance with the accounting policy of the Company, this
dividend will be reflected in the accounts for the year ending 31st December
2025.
(b) Dividends for the purposes of Section 1158 of the Corporation Tax
Act 2010 ('Section 1158')
The requirements of Section 1158 are considered on the basis of dividends
declared in respect of the financial year, shown below. The revenue available
for distribution by way of dividend for the year is £2,321,000 (2023:
£2,567,000).
2024 2023
Pence £'000 Pence £'000
Final dividend 3.1 1,879 3.0 1,913
Total dividend for Section 1158 purposes 3.1 1,879 3.0 1,913
3. Return per share
2024 2023
£'000 £'000
Revenue return 2,321 2,567
Capital return 25,900 9,218
Total return 28,221 11,785
Weighted average number of shares, excluding Treasury shares, in
issue during the year 62,082,503 64,460,117
Revenue return per share 3.74p 3.98p
Capital return per share 41.72p 14.30p
Total return per share 45.46p 18.28p
4. Net asset value per share
2024 2023
Net assets (£'000) 293,789 279,725
Number of shares in issue 60,622,264 63,770,149
Net asset value per share 484.6p 438.6p
5. Status of results announcement
2023 Financial Information
The figures and financial information for 2023 are extracted from the
published Annual Report and Financial Statements for the year ended 31st
December 2023 and do not constitute the statutory accounts for the year. The
Annual Report and Financial Statements have been delivered to the Registrar of
Companies and included the Report of the Independent Auditors which was
unqualified and did not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006.
2024 Financial Information
The figures and financial information for 2024 are extracted from the Annual
Report and Financial Statements for the year ended 31st December 2024 and do
not constitute the statutory accounts for that year. The Annual Report and
Financial Statements include the Report of the Independent Auditor which is
unqualified and does not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006. The Annual Report and Financial
Statements will be delivered to the Register of Companies in due course.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
JPMORGAN FUNDS LIMITED
28th March 2025
For further information, please contact:
Lucy Dina
For and on behalf of JPMorgan Funds Limited,
Company Secretary
Telephone: 0800 20 40 20 or or +44 1268 44 44 70
E-mail: jpmam.investment.trusts@jpmorgan.com
(mailto:jpmam.investment.trusts@jpmorgan.com)
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
JPMORGAN FUNDS LIMITED
ENDS
A copy of the annual report will be submitted to the FCA's National Storage
Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The Annual Report will shortly be available on the Company's website at
www.jpmussmallercompanies.co.uk (http://www.jpmussmallercompanies.co.uk) where
up-to-date information on the Company, including daily NAV and share prices,
factsheets and portfolio information can also be found.
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