REG - JPMorgan Amer InvTst - Annual Financial Report
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RNS Number : 9438Y JPMorgan American IT PLC 01 April 2026
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN AMERICAN INVESTMENT TRUST PLC
FINAL RESULTS FOR THE YEAR ENDED 31st DECEMBER 2025
Legal Entity Identifier: 549300QNAI4XRPEB4G65
Information disclosed in accordance with the DTR 4.1.3
Highlights
· NAV total return of +4.6% (with debt at fair value) for 2025 in
sterling terms, compared with +9.6% for the S&P 500 benchmark (total
return with net dividends reinvested) in sterling terms. Share price
total return of +0.5% for the period.
· Three-year cumulative NAV total returns of +70.3% compared with
+65.4% for the Benchmark, three-year share price cumulative total return of
+68.7%.
· Five-year cumulative NAV total return of +99.2% compared with
+97.2% for the Benchmark; five-year
share price cumulative total return of +104.2%.
· Since the Company changed its investment approach on 1st June
2019, it has outperformed the benchmark index by 17.2% through to the end of
February 2026, providing a NAV total return to shareholders of +173.4%,
compared with a benchmark return of +156.2%. This represents an annualised
outperformance of 1.0 percentage points since this change.
· The Company remains one of the most competitively priced US
actively managed funds available to UK investors, with an Ongoing Charges
Ratio ('OCR') for the year of 0.34% (2024: 0.35%), and net assets over £1
billion being charged at just 0.25%.
· The Company issued 1,414,046 shares at an average premium of 0.8%
to NAV, generating proceeds of £16.5 million. As the year progressed,
10,924,147 shares were purchased into Treasury at a cost of £116.4 million,
representing 6.1% of the Company's issued share capital at the beginning of
2025, at an average discount of 3.4%, producing a modest accretion to the NAV
per share for continuing shareholders.
· Dividends: an interim dividend of 2.75p per share was paid on 6th
October 2025 (unchanged from the prior year). Subject to shareholder approval,
a final dividend of 8.75p will be paid on 29th May 2026, making a total
dividend of 11.5p per share for FY25, representing an increase of 4.5% on last
year's total dividend of 11.0p per share.
Robert Talbot, Chairman, commented:
"Despite last year's uncertainties, US equity indices showed their continued
resilience and closed the year at record highs, demonstrating again the
robustness of US businesses…These uncertainties persist. Geopolitical
tensions remain elevated, …while the full impact of US tariffs is yet to
register on US inflation and growth. More recently …the escalation in
conflict within the Middle East with as yet little clarity how events will
unfold. Yet, even against such a backdrop, US Equity Indices reached record
highs in 2025, and despite recent events remain close to this towards the end
of the first quarter. This resilience gives good cause for optimism about the
prospects for US companies, and the market, over the coming year and beyond.
The Board therefore shares the Portfolio Managers' optimism regarding the
outlook for the market and Company and is confident in the team's ability to
keep finding the kind of attractive investment opportunities that will reward
shareholders with capital growth and outperformance over time."
Portfolio Managers commented:
"2025 can be characterised by the remarkable resilience of US equities in the
face of significant market volatility. Despite limited guidance and numerous
economic challenges, US equities not only rebounded, but excelled, with
established sectors and investment styles once again taking the lead. The
market's ability to navigate uncertainty and still deliver robust returns
highlights the enduring strength of US capital markets. Looking ahead, these
same characteristics underpin our optimism about the outlook for US equities
in the coming year and beyond. Our research analysts anticipate strong
earnings growth for the S&P 500. These positive forecasts reinforce our
confidence in the market's potential. However, we remain alert to risks that
could introduce volatility, such as escalating geopolitical tensions and
potential changes to US trade, regulatory, and fiscal policies which could
damage the US's economic prospects. Our strategy is to maintain a balanced
approach, leveraging our insights and expertise to navigate market
complexities while actively pursuing growth and value creation. We are
confident that this approach will continue to deliver strong capital growth
for our shareholders over time."
CHAIR'S STATEMENT
Last year was an uncomfortable one for equity investors, but their forbearance
was ultimately rewarded by healthy returns. Global stock markets plunged in
March and April on fears about the economic impact of the US administration's
aggressive tariff policy. Subsequent relief as the implementation of these
tariffs was postponed subject to further negotiations gave way to renewed
concerns that the significant tariffs ultimately imposed could fuel US
inflation and slow growth. This uncertainty reduced the Federal Reserve's
scope to reduce interest rates, despite unprecedented pressure from the US
President. As the year progressed, investors also became increasingly anxious
that the very high level of investment in artificial intelligence (AI)
capabilities and data centres was fuelling an AI bubble set to burst if the
extreme optimism regarding AI's potential is disappointed.
Despite these uncertainties, US equity indices showed their continued
resilience and closed the year at record highs, demonstrating again the
robustness of US businesses, how quickly they will adapt to changed
circumstances and their continued ability to generate profitable growth. It
was another example where the media's focus upon US politics could lead many
to ignore the many positive characteristics of the US corporate sector. In
2025 within the overall equity market many lower quality, high beta, and
highly valued stocks fared best over the year, while many other higher quality
stocks, the primary focus of our investment strategy, lagged.
The Company's net asset value (NAV) (in sterling terms, with debt at fair
value), increased by 4.6% on a total return basis in 2025 behind its
benchmark, the S&P 500, which increased by 9.6% on the same basis. Overall
returns would have been much higher to a sterling holder but were reduced
given that the dollar fell by 6.9% versus the pound over the calendar year.
The underperformance was very much the result of the Company's bias to
high-quality, more reasonably valued growth and value stocks which are
favoured by the Company's consistent investment strategy. In contrast the
equity market was led by many lower quality and highly valued stocks and hence
the portfolio lagging the index was unsurprising in the circumstances. The
Board remain confident that the investment process remains appropriate and
should deliver outperformance against the benchmark over time. During the
year, the share price traded between a premium of 2.1% and a discount of
11.5% compared to NAV, ending the year at a discount of 2.7%.
While the past year's underperformance is disappointing, the Portfolio
Managers adopt a long-term investment approach, so it is important to consider
performance over a similar timeframe. Since the Company changed its investment
approach on 1st June 2019, it has outperformed the benchmark index by 17.2%
through to the end of February 2026, providing a NAV total return to
shareholders of +173.4%, compared with a benchmark return of +156.2%. This
represents an annualised outperformance of 1.0 percentage point since this
change.
Reflecting this sustained outperformance I am equally pleased to report that
during the past year, the Company won the Citywire Investment Trust Award in
the 'Best North American Equities' category for the second successive year.
The Company has also been identified as an "ISA millionaire" investment
company by the Association of Investment Companies since 2022.
The Portfolio
At the end of the review period, 94.3% of your Company's portfolio assets were
invested in US large cap stocks, in a high conviction portfolio of some 40
stocks. This portfolio represents a carefully curated selection of the
Manager's best growth and value investment ideas. The proportions of growth
and value weightings can vary between 60% and 40% in either direction and
stood at 55% in growth stocks and 45% in value names at the end of the period.
The overall allocation to the small cap portfolio was approximately 5.7% at
this time.
More details about performance attribution and portfolio activity during the
year can be found in the Investment Manager's report below, along with the
Portfolio Managers' view on the outlook for US equity markets.
Share Price and Premium/Discount
The Company's shares traded near NAV or at a premium at the start of the year,
then at a discount to its NAV for the remainder of the year. Consistent with
statements made in previous years, and because share buy-backs at a discount
to NAV enhance the NAV for remaining shareholders, the Board is prepared to
buy back shares when they stand at anything more than a small discount. The
Board is also prepared to issue shares at a premium to NAV. This undertaking
has operated for several years and applies in normal market conditions.
During the early part of the year, the Company issued 1,414,046 shares at an
average premium of 0.8% to NAV, generating proceeds of £16.5 million. As the
year progressed, 10,924,147 shares were purchased into Treasury, at a cost of
£116.4 million, representing 6.1% of the Company's issued share capital
(excluding shares held in Treasury) at the beginning of 2025. The average
discount to NAV at which these shares were purchased was 3.4%, producing a
modest accretion to the NAV per share for continuing shareholders.
Since the year end, 2,777,921 shares were purchased into Treasury. The share
price discount stood at 4.5% as at 30th March 2026.
In line with usual practice, the Company will ask shareholders to approve the
repurchase of up to 14.99% of its capital at a discount to estimated NAV at
the forthcoming Annual General Meeting (AGM). The Company will also be seeking
shareholder permission to issue shares, where the Board is confident of
consistent market demand. The authority, if approved, will allow the Company
to issue up to 10% of its issued share capital from Treasury. The Company will
only issue shares at a price above the estimated NAV, including income and
with the value of the debt at fair value.
Dividends
While capital growth is the primary aim of the Company, the Board understands
that dividend receipts can be an important element of shareholder returns. As
such, the Board has sought to enhance shareholder returns with a longer-term
progressive dividend policy.
Consistent with these efforts, the Company paid an interim dividend of 2.75p
in respect of the first six months of the 2025 financial year (FY25) on 6th
October 2025 (unchanged from the interim dividend paid in FY24). Subject to
shareholder approval at the AGM, a final dividend of 8.75p will be paid on
29th May 2026 to shareholders on the register on 17th April 2026, making a
total dividend of 11.5p per share for FY25. The Board is pleased to report
that this represents an increase of 4.5% on last year's total dividend of
11.0p per share.
The Company's prudent approach of building up revenue reserves in prior years
provides it with a means of supporting current and future dividend levels,
should earnings per share drop materially in any financial year. The total
dividend payment in respect of 2025 was funded from current year revenue and
partially from revenue reserves. After the payment of the proposed final
dividend, the balance in the revenue reserves will be £ 20.2 million,
equivalent to 11.9p per share (2024: 12.0p per share). Reserves are therefore
sufficient to cover the 2025 dividend by 1.0 times (2024: 1.1 times).
The Board continues to monitor the net income position of the Company and,
based on current estimated dividend receipts for the year ahead, the Board
aims to continue its progressive dividend policy in the forthcoming year.
Gearing
The Company is able to deploy gearing, which over time is expected to enhance
performance provided the cost of the gearing is less than the performance
delivered by the Company's equity portfolio.
The Board believes it is prudent for the Company's gearing capacity to be
funded from a mix of sources, including short - and longer-term borrowings,
issued on both fixed and floating rate terms. The Company's gearing strategy
is currently implemented via the use of two forms of debt. The first is an
£85 million revolving credit facility (with an additional £15 million
accordion/available), provided by Industrial and Commercial Bank of China
Limited, London Branch, which matures in August 2028. This is drawn in US
Dollars to match the currency of the Company's asset base.
Alongside this bank facility, the Company has in issue a combined US$100
million of unsecured loan notes issued via private placements, US$65 million
of which is repayable in February 2031 and carries a fixed interest rate of
2.55% per annum, and US$35 million of which matures in October 2032 and
carries a fixed interest rate of 2.32%.
The Board has set the current level of gearing at 5%, and plans to operate
within a permitted range around this level of 5% net cash to 20% geared. The
Company ended the year with gearing equivalent to 4.7% of net assets and the
Board regularly reviews the appropriate gearing level.
Investment Manager Succession
As previously reported, Jonathan Simon retired as the portfolio manager
responsible for value stocks in the Company's large cap portfolio on 3rd March
2025. The portfolio's value stocks are now managed by Jack Caffrey and Graham
Spence who have 24 and 13 years' experience with the Manager respectively.
During the year under review, the growth stocks were managed by Felise
Agranoff and Eric Ghernati. However, with effect from 1st April, Eric will
move internally within JPMorgan and we wish him well with his move. There will
be no changes to the investment strategy or process as a result of Eric's move
and Felise, who has 22 years' experience with the Manager, will continue to be
supported by a well-resourced team of experienced analysts in the Growth team.
Board Review of the Manager
As in prior years, the Board visited the Manager's offices in New York and
held meetings with the portfolio managers and the analyst teams. The Board
also met with JPMorgan's senior management team to discuss the performance of
the portfolio, the Company's strategy and to review broader aspects of the
Manager's service.
The Manager provides other services to the Company, including accounting,
company secretarial and marketing services. These have been formally assessed
through the annual manager evaluation process.
Taking all factors into account, the Board concluded that the ongoing
appointment of the Manager is in the continuing interests of shareholders.
Ongoing Charges
The Board continues to closely monitor the Company's cost base. The Company's
Ongoing Charges Ratio ('OCR') for the year under review was 0.34% (2024:
0.35%). The small decrease over the year is primarily attributable to the
growth in the Company's assets and its highly competitive management fee
structure, with net assets over £1 billion being charged at just 0.25%.
The Company remains one of the most competitively priced US actively managed
funds available to UK investors, in either closed-ended or open-ended form.
Portfolio Company Engagement
As detailed in the Manager's Investment Process in the full Annual Report,
extensive engagement with company management teams is a vitally important
element of stock selection. Company engagement is led by the Portfolio
Managers and analysts with the intention of gaining a full insight into the
attractiveness of a company. This will incorporate a deep understanding of the
company's current health, strategic direction, competitor landscape and its
future prospects. In addition, focus will be placed on assessing how various
financially material ESG factors may affect the risk profile of the business.
The Board shares the Investment Manager's view of the importance of this
combined approach to company engagement as a central component of the
investment process in seeking to deliver attractive risk-adjusted returns for
shareholders.
The Board
There was no change to the composition of the Board during 2025.
As previously communicated, Ms Nadia Manzoor will step down from the Board at
the conclusion of the forthcoming AGM. On behalf of the Board and all
shareholders, I would like to place on record our sincere thanks to Ms Manzoor
for her substantial contribution to the Company, particularly in her roles as
Senior Independent Director and Chair of the Remuneration Committee. I am
pleased to inform you that, following Ms Manzoor's retirement, Ms Pui Kei Yuen
will assume the role of Senior Independent Director and Mr Colin Moore will
assume the Chair of the Remuneration Committee. The Board is currently
conducting a search for a suitable non-executive director. A specialist
recruitment agency is assisting in this search, and a further announcement
will be made once the process has been finalised.
Subject to shareholder approval at the forthcoming AGM, I intend to serve
until the AGM in 2027, at which point I will step down. Further information
regarding Chair succession planning will be provided in due course. In the
normal course, I would have stepped down from the Board after nine years'
service in 2026. However, as was highlighted in last year's Annual Report, and
after consultation with our largest shareholders, in order to ensure ongoing
Board continuity through this period, the Board believes that it is in the
Company's best interests that I should instead step down at the 2027 AGM.
The externally facilitated Board evaluation undertaken during the year by
Lintstock, an independent adviser on board governance, concluded that the
Directors possess the experience and attributes to support a recommendation to
shareholders for their re‑election at the forthcoming AGM. In accordance
with the AIC Code of Corporate Governance, additional statements supporting
the re‑election of each Director are set out in the full Annual Report.
Annual General Meeting
This year's AGM will be held on Thursday, 14th May 2026 at 2.30 p.m. at 60
Victoria Embankment, London EC4Y 0JP. Apart from the formal business of the
meeting, shareholders will have the opportunity to hear from two of our
portfolio managers, Felise Agranoff and Jack Caffrey, who will make a
presentation by video, to be followed by a question-and-answer session.
Shareholders are invited to attend the meeting and raise any questions they
have, either at the meeting, or in advance, by writing to the Company
Secretary at the address in the full Annual Report, or via email to
jpmam.investment.trusts@jpmorgan.com. As is normal practice for the Company,
all voting on the resolutions will be conducted on a poll. The Board strongly
encourages all shareholders to exercise their votes by completing and
returning their proxy forms in accordance with the notes to the Notice of
Meeting in the full Annual Report.
For shareholders who wish to follow the AGM proceedings, but cannot attend in
person, we will be able to offer participation via video conferencing
facilities. Details on how to register, together with access details, can be
found on the Company's website: www.jpmamerican.co.uk. Shareholders viewing
the meeting via conferencing software will not be able to vote in the poll and
we therefore especially encourage those shareholders who cannot attend in
person, to exercise their votes in advance of the meeting by completing and
submitting their form of proxy. Shareholders are also encouraged to send any
questions to the Board, via the Company Secretary, at the email address above,
ahead of the AGM. We will endeavour to answer all relevant questions at the
meeting, or via the website.
If there are any changes to the arrangements for the AGM, the Company will
update shareholders through the Company's website and, if appropriate, through
an announcement to the London Stock Exchange.
The Board encourages all of its shareholders to exercise their rights by
voting at annual general meetings and attending if able to do so. If you hold
your shares on the Company's main register, please refer to the notes to the
AGM in the full Annual Report and your form of proxy. If your shares are held
through a platform, platform providers often provide shareholders with the
ability to receive company documentation, to vote their shares and to attend
annual general meetings, at no cost. Please refer to your investment platform
for more details, or visit the Association of Investment Companies' website at
www.theaic.co.uk/how-to-attend-an-AGM for information on which platforms
support these services and how to utilise them.
Shareholder Engagement
The Board believes that insight gained from shareholder interactions are very
helpful in assisting it with the management of the Company's affairs and, as
opportunities arise, Board members welcome and seek such meetings.
During the past year, the Manager held meetings and regular calls with
shareholders, including webinars, and provided portfolio and market updates on
the Company's website. Such activity is an essential part of building
understanding and confidence in the Manager's process among shareholders, and
with the Board's support, the Manager will look to build upon these in the
future.
Stay Informed
As part of this process, 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://web.gim.jpmorgan.com/emea_investment_trust_subscription/welcome?targetFund=JAM.
Outlook
The uncertainties I flagged in my last report persist. Geopolitical tensions
remain elevated, complicated by rising uncertainty regarding relations between
the US and its western allies, while the full impact of US tariffs is yet to
register on US inflation and growth. More recently has been added the
escalation in conflict within the Middle East with as yet little clarity how
events will unfold. All such uncertainties are monitored by the Board to try
to understand what if any action could be taken. Yet, even against such a
backdrop, US Equity Indices reached record highs in 2025, and despite recent
events remain close to this towards the end of the first quarter. This
resilience gives good cause for optimism about the prospects for US companies,
and the market, over the coming year and beyond. It is another reminder that
in spite of considerable focus upon US politics and geopolitical events within
the media the US corporate sector remains squarely focused upon delivering
growing profitability and shareholder returns. In addition to their
well-proven dynamism and capacity to adapt and evolve in response to changing
circumstances with an impressive long-term track record in this regard, US
businesses remain at the forefront of the AI revolution and other cutting-edge
technologies, which should lift productivity and global competitiveness and
underpin earnings growth over time.
The Board therefore shares the Portfolio Managers' optimism regarding the
outlook for the market and Company and is confident in the team's ability to
keep finding the kind of attractive investment opportunities that will reward
shareholders with capital growth and outperformance over time.
Thank you for your continued support.
Robert Talbut
Chair
31st March 2026
INVESTMENT MANAGER'S REPORT
Market Review
2025 will be remembered as a year of extraordinary uncertainty for investors,
yet markets ultimately delivered impressive results. The S&P 500 posted a
robust return of +17.7% in US dollar terms, marking its third consecutive year
of double-digit gains. This remarkable climb came despite a lack of clarity on
US tariffs, uncertainty about the trajectory of interest rates, concerns about
the durability of AI-driven growth, and the longest government shutdown in US
history.
The year began with a period of significant volatility. In the first four
months, US equities ventured into bear market territory as the US
administration's erratic approach to tariffs and other key policies left
investors on unstable ground. A sharp April sell-off - led by the 'Magnificent
7' tech giants - and growing doubts about the sustainability of AI's momentum
added to the turbulence as the year progressed. The S&P 500 fell 19% from
peak to trough before bottoming on April 8, then rallied by an impressive 39%
through to year-end. Notably, corporate earnings growth proved more resilient
to tariffs than many had anticipated.
Investors were also troubled by the uncertain direction of monetary policy.
The Federal Reserve paused its rate-cutting cycle in the first half of the
year, responding to fears about tariff-induced price pressures and recession.
As conditions stabilised, the Fed resumed cuts in September, delivering three
25 basis point reductions before year-end. This contributed to a 40-basis
point decline in the ten-year Treasury yield, which closed the year at 4.17% -
its first year-on-year decline since 2020.
Late in the year, the government shut down for 43 days in October and
November, suspending normal government business including public services,
payments and some data releases. Despite these inconveniences, markets
continued to post gains, consistent with historical patterns during extended
closures. Congress reached a deal in mid-November, clearing the way for the
resumption of regular government activity.
Against this challenging backdrop, the S&P 500 demonstrated remarkable
resilience, surging to record highs by year-end. Behind the strong returns,
market leadership in 2025 remained narrow: ten stocks drove 60% of the
S&P 500's return, while roughly 355 stocks (more than 60% of the
benchmark) underperformed the market, with nearly 190 stocks (15% of the
benchmark) declining over the year. Within equity markets, low-quality,
high-beta, and high-valuation stocks dominated, particularly among smaller-cap
names.
Sector leadership in 2025 mirrored trends established in 2023 and 2024, with
communication services and information technology topping the sector
leaderboard for the third consecutive year. However, sector performance varied
widely: real estate, consumer staples and consumer discretionary delivered
only low single-digit returns.
Large-cap stocks, as represented by the S&P 500, outperformed small caps,
with returns of +17.7% versus a rise of 12.8% for the Russell 2000 Index.
Growth stocks also outpaced value, as the Russell 3000 Growth Index returned
+18.2%, compared to a 15.7% rise in the Russell 3000 Value Index.
The following charts provide an overview of the returns of different
investment styles in the US market during 2025, as well as the sector
performance of the S&P 500 during that period.
2025 US Equities Style performance (US$)
2025 Value Blend Growth
Large 15.9% 17.9% 18.6%
Mid 11.0% 10.6% 8.7%
Small 12.6% 12.8% 13.0%
2025 S&P 500 Index performance (US$)
Refer to the chart in the full Annual Report.
Performance and Overall Asset Allocation
The Company's net asset value rose 4.6% on a total return basis in 2025 (in
GBP terms), lagging the 9.6% return of the S&P 500 Index. This result
means that 2025 was the worst relative return period for the portfolio in over
ten years, as the market's strong preference for the highest beta and lowest
quality stocks hindered performance. However, such an outcome is not
surprising given the nature of our strategy, given its bias towards high
quality stocks capable of generating growth and value. Such underperformance
is nonetheless disappointing, but it is important to bear in mind that
performance over the longer term remains strong thanks in part to the robust
returns registered in 2023 and 2024.
The large cap portion of the portfolio, which, at over 90% of the Company's
assets, is its biggest allocation, detracted the most from relative
performance over the period. The Company's small cap allocation, which
averaged a return of approximately 6% over the period, also detracted from
relative returns, as small cap stocks lagged the S&P 500. Gearing was
additive given the market's rally.
Performance attribution
For the year ended 31st December 2025
% %
Contributions to total returns
Net asset value (debt at fair value) total return
in sterling terms(APM) 4.6
Benchmark total return (in sterling terms) 9.6
Relative return (5.0)
Combined Portfolio return in US dollar terms(1) 12.9
Benchmark total return in US dollar terms 17.7
Combined Portfolio relative return in US dollar terms (4.8)
Large & Small Cap Portfolio contribution(2):
Large Cap Portfolio in US dollar terms (4.0)
Small Cap Portfolio in US dollar terms (0.8)
Combined Portfolio relative return in US dollar terms (4.8)
Contributions to return:
Equity portfolio (ex-cash and gearing) in US dollar terms (5.7)
Cash and gearing impact in US dollar terms(3) 0.9
Combined Portfolio relative return in US dollar terms (4.8)
Effect of foreign currency translation(4) 0.3
Combined Portfolio relative return in sterling terms (4.5)
Management fee and other expenses(5) (0.3)
Finance costs(5) (0.2)
Share buybacks and share issuances(6) 0.2
Impact of fair valuation of debt(7) (0.2)
Total relative return (5.0)
Source: Morningstar/J.P.Morgan. All figures are on a total return basis.
Performance attribution analyses how the Company achieved its recorded
performance relative to its benchmark index.
The figures in the above attribution have been rounded to 1 decimal place.
(1) The aggregated returns of both the Large Cap and Small Cap
portfolios.
(2) The split of returns by portfolio, relative to the benchmark. This
has been calculated using the average weighting of the Large Cap and Small Cap
portfolios over the year.
(3) Cash and gearing - measures the impact on returns of the principle
amount of borrowings or cash balances on the Company's relative performance.
(4) Effect of foreign currency translation - measures the impact of
currency exposure differences between the Company's portfolio and its
benchmark.
(5) Management fee, other expenses and finance costs - the payment of
fees, expenses and finance costs (interest paid on borrowings) reduces the
level of total assets, and therefore has a negative effect on relative
performance.
(6) Share buybacks - measures the enhancement to net asset value per
share of buying back the Company's shares for cancellation at a price which is
less than the Company's net asset value per share.
(7) The impact of fair valuation includes the effect of valuing the
combined US$100m private placements at fair value.
(APM) Alternative Performance Measure ('APM').
Large Cap Portfolio
After three consecutive years of adding value, stock selection within the
large cap portfolio faced notable challenges in 2025. While several holdings
performed well, approximately 85% of the large cap portfolio's
underperformance was attributable to poor stock selection in the technology,
energy, and industrial sectors.
Technology remains our largest absolute allocation, and three of our top five
detractors originated from this sector. Since late 2024 and through 2025, we
have trimmed positions in leading AI stocks to realise profits and reduce risk
in response to our increased concerns about excessive AI spending trends. This
led to an underweight position in NVIDIA, which negatively impacted relative
performance as the stock surged 39% in 2025 - more than double the S&P
500's return. Although we remain optimistic about NVIDIA's long-term
prospects, we do not currently hold a strongly positive view on its near-term
growth prospects relative to the market. We believe the market may be
underestimating rising competition and potentially overestimating NVIDIA's
growth potential, so we have maintained a below-index weighting.
During the year, we shifted some of our NVIDIA exposure into Oracle, which
also detracted from performance. Oracle's shares came under pressure due to
mixed financial results, increased capital expenditure, and concerns over debt
financing. The announcement of a TikTok-US joint venture and OpenAI's
ambitious revenue targets did little to alleviate investor concerns. At this
time, we continue to hold the name in the portfolio.
Other technology holdings which adversely impacted performance included
business software creator HubSpot. This stock was the largest individual
detractor in 2025, driven by uncertainty around the monetisation potential of
its front-office AI software. Nevertheless, we remain confident in HubSpot's
leadership in generative AI (GenAI), a form of AI that creates new, original
content such as text, images, videos, audio, and code, by learning from large
datasets. The company should also be supported by robust new customer growth
and ongoing innovation. We continue to view the valuations of software
businesses as relatively attractive compared to historical levels.
In the energy sector, we preferred oil and gas producer EOG Resources over its
larger, more integrated competitors, but this positioning detracted from
returns. Despite reporting solid operational results, EOG's conservative
guidance fell slightly short of consensus expectations, weighing on its share
price. The company has expressed caution about increasing oil volumes in what
it anticipates will be an oversupplied market for the next few quarters. We
continue to view EOG as a best-in-class operator, with a peer-leading balance
sheet and highly cost-effective operations. However, we exited our position in
early 2026 as we are finding better opportunities in other names.
Rounding out the top detractors was our exposure to UnitedHealth, which we
exited in mid-May. UnitedHealth has historically performed well, but recent
mispricing and higher-than-expected costs reduced our confidence. While the
recent leadership change is encouraging, the timing of improvements remains
uncertain, and this has reduced our conviction in the company. Extensive
discussions with the management team did little to allay our concerns about
the likelihood of an improvement in execution over the medium to long term, so
we closed our position.
On the positive side, the large cap portfolio benefited from strong stock
selection in the financial sector. Notably, our allocations to Morgan Stanley
and Capital One Financial were significant bright spots.
Morgan Stanley delivered robust performance during the period, supported by
record revenues and strong profits across its business segments. The company
saw meaningful growth in client assets within its wealth and investment
management divisions. Successful integration of recent acquisitions and
strategic investments in technology - including AI - further strengthened
results. We maintain an overweight to this name. Capital One Financial also
posted strong results, with early benefits emerging from its acquisition of
Discover Financial Services. This transaction is expected to enhance Capital
One's banking and payments platform, driving both cost savings and revenue
growth. The management team's proven ability to execute large-scale
investments, particularly in technology and its national banking strategy,
positions the company well for future growth. As a result, we remain
overweight the name.
Another top contributor was HCA Healthcare, a leading hospital operator, which
we added to the portfolio following our exit from UnitedHealth. HCA reported
earnings ahead of expectations, driven by robust pricing and disciplined
expense management, and subsequently raised its guidance.
There were also some positive contributors in the technology space. For
example, our overweight position in Broadcom added value, with the stock
rallying 50% over the period. The company reported strong AI revenue growth,
as well as significant orders from Anthropic, the company behind the Claude
family of AI products.
Another significant contributor during the period was our underweight position
in Tesla. We have previously owned this stock and know the company well. We
closed our position in January 2024 as demand for electric vehicles (EV)
stalled. The stock has since faced pressure due to various investor concerns,
both material and perceived. We capitalised on the sell-off by reintroducing
Tesla to our portfolio during the year. Although demand for EVs remains
tentative, we are increasingly confident in the company's autonomous driving
technology, which we believe is approaching commercial viability, and we see
potential for autonomous driving to enhance Tesla's brand perception and
eventually reignite demand for its vehicles. This transition is in its early
stages, so the portfolio remains around benchmark weight, but we anticipate
that autonomous driving will significantly improve Tesla's margins over time,
and our long-term investment horizon allows us to be patient while these
expectations play out, especially as we repurchased the stock at an attractive
level.
Large Cap Portfolio Stock Attribution(1)
For the year ended 31st December 2025
Relative weight Stock return Impact
Top Contributors (%) (%) (%)
HCA Healthcare 2.3 56.7 0.7
Morgan Stanley 2.6 45.2 0.6
Capital One Financial 3.0 37.7 0.6
Broadcom 1.8 50.7 0.5
Tesla 0.3 29.0 0.4
Relative weight Stock return Impact
Top Detractors (%) (%) (%)
HubSpot 0.8 (42.4) (0.9)
EOG Resources 2.1 (11.4) (0.7)
UnitedHealth* (0.5) (45.5) (0.7)
NVIDIA 0.2 38.9 (0.7)
Oracle 0.2 (40.5) (0.6)
Source: Wilshire, Excludes Cash & Gearing (USD).
(1) The attribution summary approximates the gross excess returns of
the portfolio and is calculated based on daily holdings which does not
represent actual trading, liquidity constraints, fee schedules and transaction
costs. It is shown for illustrative purposes only and is not meant to be
representative of actual results.
* Indicates stock was not held as of 31st December 2025. The portfolio
is actively managed. Holdings, sector weights, allocations and leverage, as
applicable, are subject to change at the discretion of the investment manager
without notice. Past performance is not a reliable indicator of current and
future results.
Portfolio Activity & Positioning
Over the period, the most significant portfolio shifts occurred in the
healthcare space, as we exited three longstanding positions due to changing
fundamentals. In addition to the sale of UnitedHealth, already discussed, we
also closed positions in Regeneron Pharmaceuticals and Eli Lilly. Regeneron
Pharmaceuticals is currently navigating a tough commercial landscape,
including increasing competitive pressures on its flagship product, Eylea, for
the treatment of eye disease, which are raising doubts about the company's
ability to maintain its market leadership in this segment. In addition, there
are emerging concerns regarding the lifecycle of Dupixent, used in the
treatment of severe inflammatory conditions. Regeneron's overall drug pipeline
is a further worry, as it has not developed at a pace sufficient to offset
diminishing demand for Eylea and Dupixent. Eli Lilly's stock dropped sharply
following its latest earnings report, on concerns over pricing dynamics in the
obesity medication market.
During the year we added two new healthcare names - Johnson & Johnson
(JNJ) and Gilead Sciences. JNJ trades at a discount to its peers, while
offering a premium dividend and an attractive dividend yield, with higher
returns on equity and invested capital. Gilead Sciences has also lagged.
Despite good take-up of its newest antiviral offerings, its valuation remains
attractive. We view Gilead as an important biotechnology leader yet to reap
the full rewards of its latest product launch. In addition, its cancer
franchise looks set to expand, diversifying its product offering beyond
anti-virals.
We made notable adjustments in the materials sector, exiting our long-term
position in Martin Marietta Materials, a natural resource-based building
materials company, and initiating a new position in Ecolab, a specialist
chemicals company. While Martin Marietta Materials has been a strong performer
over the longer term, its recent results have been less impressive. In
particular, the company's reliance on price increases rather than volume
growth, and its transactional, project-based business model, no longer align
with our preference for recurring, long-term client relationships. Ecolab, by
contrast, is a quality compounder with deep, decades-long customer
relationships. Though classified as a materials company, Ecolab operates more
as an industrial services provider, delivering essential solutions like
sanitation and pest control that are critical to its clients' operations. The
company's focus on value creation and its 'One Ecolab' initiative to
cross-sell services to major clients supports ongoing growth and margin
expansion. Recent bolt-on acquisitions, especially in high-tech sectors such
as semiconductor manufacturing, further enhance Ecolab's growth prospects.
We also increased our exposure to industrials by adding 3M, a diversified
technology and services conglomerate, to the portfolio. Our confidence in 3M's
operational turnaround has grown, enhanced by the incoming CEO's announcement
in early 2025 of more detailed and actionable plans to drive growth and
enhance operating performance. In addition, 3M has taken meaningful steps to
strengthen its balance sheet and proactively manage legal liabilities, thereby
reducing overall risk. These positive developments have reinforced our
conviction that 3M's recovery is on track and likely to surpass market
expectations in both timing and magnitude over the long-term.
Within the consumer discretionary sector, we replaced home improvements
retailer Home Depot with its peer, Lowe's. Our decision was driven by growing
concerns regarding Home Depot's diversification into the building product
distribution business, which generally carries a lower valuation multiple.
There have also been notable management departures. In contrast, Lowe's does
not face these specific challenges and was trading at a discount to Home
Depot's valuation multiple, making it a more attractive holding.
We remain committed to owning high-quality businesses with durable competitive
advantages. Our bottom-up stock selection process has resulted in several
active deviations from the benchmark at both the stock and sector levels. The
information technology sector continues to be our largest absolute weighting,
though it is also our largest underweight relative to the benchmark. Over the
past year, we have modestly increased our exposure to select software and
semiconductor companies where we see strong or rising demand.
Financials represent our next largest allocation and largest overweight. This
is driven by attractive valuations, as the sector is trading at a near 30%
discount to the S&P 500. Our holdings within financials remain
diversified, focusing on companies with strong operations and adaptability to
evolving market dynamics. For example, as discussed above, Capital One
Financial is well-positioned for future growth and stands to benefit from its
recent acquisition of Discover Financial Services, which should enhance its
banking and payments platform, while also delivering cost savings and revenue
growth.
Consumer discretionary is our third largest allocation and second largest
overweight. Within this sector, we aim for a balanced allocation between
secular growth companies and those with more defensive, capital-light business
models, such as globally recognised brands.
Value and growth exposure
The large cap portfolio is divided between value and growth stocks, with the
allocation allowed to vary between 60:40 and 40:60. At the end of the review
period, value stocks comprised some 45% of the large cap portfolio, while
growth stocks had a 55% allocation. This split is in line with positioning at
the start of the year. The graph below provides an overview of the split
between value and growth in the strategy since the change in investment
approach in June 2019.
Charts included in the full Annual Report.
Portfolio Holdings
Large Cap Portfolio
As at 31st December 2025
Charts included in the full Annual Report.
The table below shows that at the end of 2025, the large cap portfolio
continues to trade at a discount to the market on a free cash flow basis,
which confirms that we are not paying a premium for good cash flow. Indeed,
the discount provides a comforting valuation cushion. The portfolio is
expected to deliver consensus earnings growth of around 18% over the next 12
months, in line with estimates of earnings growth for the market as a whole.
However, these figures are based on consensus earnings, which may be revised
over time.
Characteristics Large Cap Portfolio S&P 500
Weighted Average Market Cap US$1,254.3 bn US$1,306.7bn
Price/Earnings, 12-month fwd(1) 21.4x 21.6x
Price/Free Cash Flow, last 12-months 23.3x 27.8x
EPS Growth, 12-mth forward 17.7% 17.6%
Predicted Beta 0.95 -
Predicted Tracking Error 2.52 -
Active Share 55.1% -
Number of holdings 40 500
Source: Factset, Barra, J.P. Morgan Asset Management.
1 Including negatives. The portfolio is actively managed. Holdings,
sector weights, allocations and leverage, as applicable, are subject to change
at the discretion of the investment manager without notice.
Small Cap Portfolio
As mentioned above, the small cap portfolio negatively impacted returns over
the review period, as it underperformed the S&P 500. The overall
allocation to the small cap portfolio was maintained at close to 6% over the
period. Small cap valuations continue to look compelling relative to large
caps following a prolonged period during which large caps have outperformed
small caps. The stage remains set for a reversal, but timing, as always, is
hard to predict.
Outlook
In summary, 2025 can be characterised by the remarkable resilience of US
equities in the face of significant market volatility. Despite limited
guidance and numerous economic challenges, US equities not only rebounded,
but excelled, with established sectors and investment styles once again taking
the lead. The market's ability to navigate uncertainty and still deliver
robust returns highlights the enduring strength of US capital markets.
Looking ahead, these same characteristics underpin our optimism about the
outlook for US equities in the coming year and beyond. The economy continues
to demonstrate similar resilience and adaptability, outperforming many
forecasts, with the unemployment rate holding relatively steady and consumer
financial conditions manageable. These conditions should improve as 2025's
monetary easing takes full effect, and rates continue their downward
trajectory, creating an environment conducive to growth. Against this
encouraging backdrop, our research analysts anticipate strong earnings growth
for the S&P 500. These positive forecasts reinforce our confidence in the
market's potential. However, we remain alert to risks that could introduce
volatility, such as escalating geopolitical tensions and potential changes to
US trade, regulatory, and fiscal policies which could damage the US's economic
prospects.
Our commitment is to invest in high-quality businesses with strong competitive
advantages, providing stability during uncertain periods. We also seek to
capitalise on market volatility by selectively identifying opportunities that
align with our long-term investment objectives. Most recently, we trimmed our
growth allocation and used the proceeds to add to our value sleeve. Overall,
our strategy is to maintain a balanced approach, leveraging our insights and
expertise to navigate market complexities while actively pursuing growth and
value creation. We are confident that this approach will continue to deliver
strong capital growth for our shareholders over time.
Felise Agranoff
Jack Caffrey
Eric Ghernati
Graham Spence
Portfolio Managers
31st March 2026
PRINCIPAL AND EMERGING RISKS
The Risk Committee, comprised of all Directors and chaired by Ms Pui Kei Yuen,
confirms that it has carried out a robust assessment of the principal and
emerging risks facing the Company, including those that could threaten its
business model, future performance, solvency or liquidity.
With the assistance of JPMF, the Risk Committee maintains and regularly
reviews a risk matrix, which identifies the principal risks to the Company.
The principal risks are categorised under Investment Strategy, Process and
Performance; Regulatory, Compliance and Operational; and Geopolitical and
Other Exogenous Issues. These risks and the significance of, and change in,
their risk scores are regularly reviewed and discussed by the Committee,
together with the ways in which they are monitored, and the extent to which
they can be managed or mitigated.
In addition, at each Risk Committee meeting, the Committee considers whether
any emerging risks, for example 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, have arisen.
Whilst the Committee has not identified any specific emerging risks at the
time of publication of this report, it has noted the continued heightened
level and evolving nature of the Geopolitical risks facing the Company and is
monitoring these accordingly.
The key principal risks identified by the Committee, how they are monitored,
and the extent to which they can be managed or mitigated are summarised below.
Movement from
Principal risk Description Mitigating activities the prior year
Investment Strategy, Process and Performance
Investment Strategy and Process An inappropriate investment strategy, poor asset allocation or the level of The Board has delegated investment responsibilities to one of the best áâ
gearing, may lead to underperformance against the Company's benchmark index resourced financial institutions globally and seeks to mitigate this risk
and its peer companies, resulting in the Company's shares trading on a wider through its investment policy and guidelines, which are monitored and reported
discount. Furthermore, the relevance and attractiveness of the investment on regularly by the Manager. The Board monitors the implementation and results
strategy could be impacted by factors such as but not limited to a changing of the investment process with the Portfolio Managers and reviews data, which
competitive landscape (such as the increasing prevalence of Active Exchange details the portfolio's holdings and risk profile. The Manager deploys the
Traded Funds), the continued consolidation of the wealth management industry, Company's gearing within a range set by the Board. The Board holds a meeting
or an ineffective marketing strategy, resulting in reduced demand for the specifically on strategy annually. Furthermore, the Company uses the levers
shares. available to it as an Investment Trust vehicle such as buybacks and gearing;
it differentiates itself by offering a concentrated quality value and quality
growth portfolio with the ability to add small cap exposure; fees are set
competitively for an actively managed fund and reviewed by the Board; and
these benefits are communicated through the Company's shareholder engagement
and marketing strategy including participation in industry-wide activity to
promote investment trusts.
Investment Team The departure of or failure to adequately replace one or more of the four The Manager has a depth of experienced investment resources and takes steps to áâ
Portfolio Managers or several members of the wider investment management team reduce the consequences of such an event by ensuring appropriate succession
could result in a short-term deterioration in investment performance. planning and the adoption of a team-based approach, including the appointment
of four Portfolio Managers.
Market Risk Market risk arises from uncertainty about the future prices of the Company's Whilst the board has limited ability to mitigate the impact of market risk áâ
investments. Examples of market risk are price volatility, liquidity, currency beyond the measures described in above, the Board and Manager monitor and
risk and interest rate risk. review market risks and their potential impact on the Company and the
investment portfolio. These are risks that investors take having invested into
a single country fund.
Technological Change This risk is not confined to the technology sector. The use of technology is The Manager has extensive research resources focused on technology. The Board áâ
pervasive. Changes in technology may disrupt the business of investee receives regular updates from the Manager and other experts.
companies impacting their market value.
Rating Volatility and Corporate Activity Risk The shares trading at an excessive discount or premium to Net Asset Value can The Board monitors the Company's premium/discount level and is committed to áâ
negatively impact shareholders and, with the rise of activism, the Company buy back shares when they stand at anything more than a small discount, and
itself may be at risk of some form of corporate activity, which may not be in also to issue shares at a premium where the Board is confident of consistent
the best interests of all shareholders. In addition, low shareholder voting market demand, to enhance the NAV per share for remaining shareholders.
turnout at AGMs (and GMs) may lead to some form of corporate activity which Furthermore, the Board monitors changes to its shareholder register carefully
may not be in the best interests of all shareholders, or, the inability to and on a timely basis, and actively seeks to engage with its shareholders
execute corporate activity which may be in the best interests of shareholders. directly and in conjunction with the Manager and the Company's broker.
Integration of ESG Factors into the Investment Process The Company's policy on ESG and climate change may be out of line with The Board liaises with the Manager and other experts to regularly review the áâ
investors' expectations and regulatory requirements and/or may impact policy and understand the implications of its integration into the process.
performance.
Regulatory, Compliance & Operational
Operational Resilience, Controls and Security The Company has no employees and is therefore dependent on third parties for The Company operates through contractual agreements with its service áâ
the provision of all of its services and systems, especially those of the providers, most of which the Manager is also party to. The Board's Audit
Manager, Depositary and Registrar. Failure to maintain effective and Committee regularly reviews the controls reports for the Manager, Depositary
appropriate controls, improper access, disruption to, failure of or inadequate and Registrar and monitors and evaluates the performance of the Company's
service levels of these parties could prevent accurate reporting and service providers, with the assistance of the Manager. Any pertinent issues
monitoring of the Company's financial position, loss of confidential data, relevant to the Company are reported to the Board. In addition, the Manager's
impact its ability to operate or result in reputational damage. Business Continuity Plans ('BCP') are designed to accommodate potential
threats and are regularly updated, tested, monitored and reviewed. The Manager
has assured the Board that the Company benefits directly or indirectly from
all elements of JPMorgan's Cyber Security programme.
Accounting, Legal and Regulatory A breach of regulatory rules or a failure to maintain accurate accounting Accounting, legal and regulatory compliance are continually monitored by the áâ
records could result in loss of investment trust status, reputational damage, Manager and the Auditors and the results reported to the Board. In addition,
financial penalties, suspension of the Company's listing or a qualified audit the Board, the Manager and its professional advisers monitor changes in
report. legislation which may have an impact on the Company.
Geopolitical and Other Exogenous Issues
There are numerous risks of this type. There is little direct control of this type of risk possible,
Below are some examples.
but it is important to monitor them.
Geopolitical There is an increasing risk to market stability and investment opportunities The Board monitors geopolitical risks in regular questioning of the Manager áâ
from geopolitical conflicts and tensions (such as between Russia and the and external experts to assess the potential impact on the Company and the
Ukraine, China and Taiwan, China and the US and the turmoil in the Middle investment portfolio. The Company seeks to mitigate these risks through its
East). Trade disputes, tariff volatility, sanctions, unpredictable policy investment policy and guidelines set by the Board, including the ability to
shifts, and a more assertive US policy stance are all contributing to a more operate across the Company's full gearing range when appropriate and through
complex environment for global trade and international relations. In addition, the implementation of an active buyback policy.
intensifying competition and the growing dominance of major global powers both
at the state and corporate level are exerting significant pressure and
influence across various domains including trade, technology, financial
systems, national security, and critical minerals. These factors could
adversely affect the attractiveness and demand for the Company as a single
country fund.
Artificial Intelligence (AI) Advances in computing power mean that AI has become a powerful tool that will The Board monitors developments in this area carefully both in conjunction ã
impact a wide range of applications with potential to disrupt the Company's with the Manager and other external experts when appropriate and considers how
operations and investments. this risk might threaten the Company's activities.
Widespread Social and Economic Disruption Examples such as the Global Financial Crisis or the Covid-19 pandemic may have As described in above, the Manager's BCPs are regularly updated, tested and ã
ended, but disruption may reoccur for several reasons. monitored, and the Manager conducts periodic due diligence of the Company's
key service providers, which includes a BCP review. The Board also reviews
reports on the Company's 'Going Concern' status in stress test scenarios.
Climate Change Climate change could present a material risk to the value of investee The Manager's investment process integrates considerations of environmental, áâ
companies and the operations of the Company and its service providers. social and governance ('ESG') risk factors, including climate change, into its
approach to assess the potential impact on investee companies. The Manager and
the Company's key service providers incorporate consideration of the impacts
of climate change into their BCPs.
Legislative and Regulatory Change Changes in legislation may adversely affect the Company and/or the Manager The Board monitors changes to the regulatory, legislative and taxation áâ
either directly or indirectly. framework within which it operates. In order to do this, the Board draws on
the expertise and advice of its professional advisers and the Manager.
Change Key
ã Heightened
áâ Broadly Unchanged
ä Reduced
RELATED PARTIES
The Directors of the company are considered to be related parties. Full
details of Directors' remuneration and shareholdings can be found in the full
Annual Report.
TRANSACTIONS WITH THE MANAGER
Details of the management contract are set out in the Directors' Report in the
full Annual Report. The management fee payable to the Manager for the year was
£5,578,000 (2024: £5,205,000) of which £nil (2024: £nil) was outstanding
at the year end.
Included in administration expenses in note 6 in the full Annual Report are
safe custody fees amounting to £18,000 (2024: £17,000) payable to JPMorgan
Chase Bank N.A. of which £3,000 (2024: £3,000) was outstanding at the year
end.
Other capital charges (handling charges) on dealing transactions amounting to
£15,000 (2024: £13,000) were payable to JPMorgan Chase Bank N.A. during the
year of which £2,000 (2024: £2,000) was outstanding at the year end.
The Company also invests in the JPMorgan USD Liquidity Fund, a money market
fund which is managed by JPMorgan Asset Management (Europe) S.à.r.l. At the
year end this was valued at £11.1 million (2024: £24.9 million). Income
amounting to £833,000 (2024: £1,348,000) was receivable during the year of
which £nil (2024: £nil) was outstanding at the year end.
At the year end, total cash of £1,488,000 (2024: £112,000) was held with
JPMorgan Chase Bank N.A. The net amount of interest of £3,000 (2024: £4,000)
was receivable by the Company during the year from JPMorgan Chase Bank N.A. of
which £nil (2024: £nil) was outstanding at the year end.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report & Financial
Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare the Annual Report &
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 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 & Financial Statements are fair, balanced and
understandable, provide the information necessary for shareholders to assess
the Company's position, 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
total 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 accounting estimates that are reasonable
and prudent;
• state whether applicable UK Accounting Standards 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 proper 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 accounts are published on the www.jpmamerican.co.uk website, which is
maintained by the Company's 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 Auditor 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 on 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, Strategic Report, Statement of Corporate
Governance and Directors' Remuneration Report that comply with that law and
those regulations.
Each of the Directors, whose names and functions are listed in the full Annual
Report, confirms 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 risks and uncertainties that it
faces.
The Board confirms that it is satisfied that the Annual Report & Financial
Statements taken as a whole are fair, balanced and understandable and provide
the information necessary for shareholders to assess the strategy and business
model of the Company.
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 position of the Company, together with a description of
the principal risks and uncertainties that the Company faces.
For and on behalf of the Board
Robert Talbut
Chair
31st March 2026
STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
31st December 2025 31st December 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Net gains on investments held at fair value through
profit or loss - 65,973 65,973 - 459,406 459,406
Foreign currency exchange gains/(losses) - 4,562 4,562 - (743) (743)
Income from investments 23,946 5 23,951 23,579 55 23,634
Interest receivable 836 - 836 1,352 - 1,352
Gross return 24,782 70,540 95,322 24,931 458,718 483,649
Management fee (1,116) (4,462) (5,578) (1,041) (4,164) (5,205)
Other administrative expenses (1,026) - (1,026) (1,139) - (1,139)
Net return before finance costs and taxation 22,640 66,078 88,718 22,751 454,554 477,305
Finance costs (734) (2,936) (3,670) (494) (1,970) (2,464)
Net return before taxation 21,906 63,142 85,048 22,257 452,584 474,841
Taxation charge (3,549) - (3,549) (3,024) - (3,024)
Net return after taxation 18,357 63,142 81,499 19,233 452,584 471,817
Return per ordinary share 10.41p 35.80p 46.21p 10.59p 249.22p 259.81p
The dividends payable in respect of the year ended 31st December 2025 amount
to 11.5p (2024: 11.0p) per share, costing £19,651,000 (2024: £19,778,000).
Details of dividends paid and proposed are given in note 2.
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.
The 'Net return after taxation' represents the profit for the year and also
the total comprehensive income.
STATEMENT OF CHANGES IN EQUITY
For the year ended 31st December
Called up Share Capital
share premium redemption Capital Revenue
capital account reserve reserves(1) reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31st December 2023 14,082 151,850 8,151 1,358,329 31,587 1,563,999
Repurchase of ordinary shares into Treasury - - - (48,069) - (48,069)
Issue of ordinary shares from Treasury - 7,971 - 5,922 - 13,893
Proceeds from share forfeiture(2) - - - 731 - 731
Proceeds from forfeiture of unclaimed dividends(2) (note 2) - - - - 71 71
Net return after taxation - - - 452,584 19,233 471,817
Dividends paid in the year (note 2) - - - - (14,597) (14,597)
At 31st December 2024 14,082 159,821 8,151 1,769,497 36,294 1,987,845
Repurchase of ordinary shares into Treasury - - - (116,395) - (116,395)
Issue of ordinary shares from Treasury - 9,944 - 6,550 - 16,494
Net return after taxation - - - 63,142 18,357 81,499
Dividends paid in the year (note 2) - - - - (19,580) (19,580)
At 31st December 2025 14,082 169,765 8,151 1,722,794 35,071 1,949,863
( )
(1) These reserves form the distributable reserves of the Company and
may be used to fund distributions to shareholders.
(2) During 2024, 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 sold in the open market
and the net proceeds 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.
STATEMENT OF FINANCIAL POSITION
At 31st December At 31st December
2025 2024
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss 2,040,771 2,042,755
Current assets
Debtors 3,177 600
Current asset investments 11,094 24,926
Cash at bank 1,488 112
15,759 25,638
Current liabilities
Creditors: amounts falling due within one year (2,797) (971)
Net current assets 12,962 24,667
Total assets less current liabilities 2,053,733 2,067,422
Creditors: amounts falling due after more than one year (103,870) (79,577)
Net assets 1,949,863 1,987,845
Capital and reserves
Called up share capital 14,082 14,082
Share premium account 169,765 159,821
Capital redemption reserve 8,151 8,151
Capital reserves 1,722,794 1,769,497
Revenue reserve 35,071 36,294
Total shareholders' funds 1,949,863 1,987,845
Net asset value per ordinary share - debt at par 1,149.8p 1,109.9p
STATEMENT OF CASH FLOWS
Year ended Year ended
31st December 31st December
2025 2024
£'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 88,718 477,305
Adjustment for:
Net gains on investments held at fair value through profit or loss (65,973) (459,406)
Foreign currency exchange (gains)/losses (4,562) 743
Dividend income (23,951) (23,634)
Interest income (836) (1,352)
Realised losses on foreign currency exchange transactions (319) (292)
Realised foreign currency exchange losses on JPMorgan USD Liquidity Fund (1,110) (623)
Decrease in other debtors 5 31
(Decrease)/increase in accrued expenses (105) 41
Net cash outflow from operating activities before dividends, interest
and taxation (8,133) (7,187)
Dividends received 20,475 23,593
Interest received 836 1,481
Overseas withholding tax recovered/(paid) 72 (3,003)
Net cash inflow from operating activities 13,250 14,884
Purchases of investments (673,293) (570,659)
Sales of investments 738,523 595,515
Net cash inflow from investing activities 65,230 24,856
Dividends paid (19,580) (14,597)
Proceeds from forfeiture of unclaimed dividends - 71
Issue of ordinary shares from Treasury 16,494 13,893
Repurchase of ordinary shares into Treasury (114,684) (48,069)
Proceeds from share forfeiture - 731
Repayment of bank loan (29,844) (15,205)
Drawdown of bank loans 60,650 15,790
Bank loan and overdraft interest paid (1,522) (583)
Private placement notes interest paid (1,890) (1,925)
Net cash outflow from financing activities (90,376) (49,894)
Decrease in cash and cash equivalents(1) (11,896) (10,154)
Cash and cash equivalents at start of year(1) 25,038 34,207
Foreign currency exchange movements (560) 985
Cash and cash equivalents at end of year(1) 12,582 25,038
Cash and cash equivalents consist of(1):
Cash at bank 1,488 112
Current asset investment in JPMorgan USD Liquidity Fund 11,094 24,926
Total 12,582 25,038
( )
(1) The term 'cash and cash equivalents' is used for the purposes of
the Statement of Cash Flows.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31st December 2025
1. Accounting policies
(a) General information and basis of accounting
The Company is a closed-ended investment company incorporated in the UK. The
address of its registered office is at 60 Victoria Embankment, London, EC4Y
0JP.
The financial statements are prepared under the historical cost convention,
modified to include fixed asset investments at fair value, in accordance with
the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice
('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in
the UK and Republic of Ireland' 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 have undertaken a rigorous review of the Company's ability to
continue as a going concern. The Board has, in particular, considered the
impact of market volatility from the ongoing conflicts between Ukraine and
Russia and in the Middle East as well as continued uncertainty regarding US
domestic and foreign policy, and does not believe the Company's going concern
status is affected. The Company's assets, the vast majority of which are
investments in quoted securities which are readily realisable, exceed its
liabilities significantly under all stress test scenarios reviewed by the
Board. Gearing levels and compliance with borrowing covenants are reviewed by
the Board on a regular basis.
Accordingly, the financial statements have been prepared on the going concern
basis as it is the Directors' reasonable expectation that the Company has
adequate resources to continue in operational existence up to 31st March 2027
which is a period of at least 12 months from the date of approval of the
financial statements.
The policies applied in these financial statements are consistent with those
applied in the preceding year.
2. Dividends
(a) Dividends paid and declared
2025 2024
Pence £'000 Pence £'000
Dividends paid
Final dividend in respect of prior year 8.25 14,768 5.25 9,594
Interim dividend in respect of the six months 2.75 4,812 2.75 5,003
Total dividends paid in the year 11.00 19,580 8.00 14,597
Refund of unclaimed dividends over 12 years old(1) n/a (71)
Net dividends 11.00 19,580 8.00 14,526
( )
(1) During the year ended 31st December 2024, 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
sold in the open market and the net proceeds 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.
All dividends paid and declared in the period have been funded from the
Revenue Reserve.
The final dividend proposed in respect of the year ended 31st December 2024
amounted to £14,775,000. However, the amount paid amounted to £14,768,000
due to shares repurchased after the balance sheet date but prior to the share
register record date.
(b) Dividend 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
£18,357,000 (2024: £19,233,000).
2025 2024
Pence £'000 Pence £'000
Interim dividend in respect of the six months 2.75 4,812 2.75 5,003
Final dividend 8.75 14,839 8.25 14,775
Total 11.50 19,651 11.00 19,778
In accordance with the accounting policy of the Company, the final dividend
declared in respect of the year ended 31st December 2025, will be reflected in
the financial statements for the year ending 31st December 2026.
The revenue reserve after payment of the final dividend will amount to
£20,232,000 (2024: £21,519,000).
3. Return per ordinary share
2025 2024
£'000 £'000
Revenue return 18,357 19,233
Capital return 63,142 452,584
Total return 81,499 471,817
Weighted average number of ordinary shares in issue during the year 176,365,922 181,599,757
Revenue return per ordinary share 10.41p 10.59p
Capital return per ordinary share 35.80p 249.22p
Total return per ordinary share 46.21p 259.81p
The total return per ordinary share represents both basic and diluted return
per share as the Company has no dilutive shares.
4. Net asset value per ordinary share
The net asset value per ordinary share and the net asset value attributable to
the ordinary shares at the year end are set out below. These were calculated
using 169,585,853 (2024: 179,095,954) ordinary shares in issue at the year end
(excluding Treasury shares).
2025 2024
Net asset value attributable Net asset value attributable
£'000 pence £'000 pence
Net asset value - debt at par 1,949,863 1,149.8 1,987,845 1,109.9
US$65 million 2.55% Private Placement Feb 2031
Add: amortised cost 48,144 28.4 51,670 28.9
Less: fair value (45,077) (26.6) (45,875) (25.6)
US$35 million 2.32% Private Placement Oct 2032
Add: amortised cost 25,987 15.3 27,907 15.6
Less: fair value (23,165) (13.6) (23,396) (13.1)
Net asset value - debt at fair value 1,955,752 1,153.3 1,998,151 1,115.7
JPMORGAN FUNDS LIMITED
1(st) April 2026
For further information, please contact:
Divya Amin For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 20 40 20 or or +44 1268 44 44 70 (tel:+441268444470)
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.
ENDS
A copy of the 2025 Annual Report will be submitted to the National Storage
Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
The 2025 Annual Report will also shortly be available on the Company's website
at www.jpmamerican.co.uk (http://www.jpmamerican.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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. END FR FLFEAVLILVIR
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