JPMorgan Emerg. EMEA - Final Results
30/01/2026 07:00
RNS Number : 0022R JPMorgan Emerging EMEA Securities 30 January 2026 LONDON STOCK EXCHANGE ANNOUNCEMENT JPMORGAN EMERGING EUROPE, MIDDLE EAST & AFRICA SECURITIES PLC FINAL RESULTS FOR THE YEAR ENDED 31ST OCTOBER 2025 Legal Entity Identifier: 549300II3MHI98ZLVH37 Information disclosed in accordance with the DTR 4.1.3 CHAIRMAN'S STATEMENT "The Company delivered a 6% outperformance versus its reference index. Our income continues to remain resilient and in light of this, the Board is announcing a modest increase to the dividend." Eric Sanderson Chairman Overview and Performance I am pleased to report that in the year ended 31st October 2025, the Company's net asset value on a total return basis increased by 25.5%, an outperformance of 6.0% against the Company's reference index, the S&P Emerging Europe, Middle East & Africa BMI Net Return in GBP (the 'Reference Index'), which increased 19.5% on a total return basis over the same period. The main reason for the outperformance was stock selection. The Investment Manager's Report on pages 12 to 16 in the Annual Report provides further details. On a share price total return basis, the Company returned +79.6% in the 12-month reporting period. As at 31st October 2025, the Company's share price was 216.0 pence, an increase of 79.3% in the reporting period. As at 28th January 2026 the share price was 246.0 pence. The share price is of course very volatile and seems to be heavily influenced by different perceptions at different times of the likelihood of recovering value from the assets located in Russia. The Company's Portfolio The Company continues to invest in higher quality companies, with a tilt towards value and income and a focus on maximising total return for shareholders. The portfolio's geographical focus is on South Africa, Saudi Arabia, and the United Arab Emirates, which at the year-end represented 25.6%, 20.5% and 12.7% of the portfolio respectively - see page 26 in the Annual Report . The tragic events in Ukraine since Russia's military invasion on 24th February 2022 sadly continue whilst recent US led proposals for peace negotiations seem to have faltered. The strict economic sanctions that followed the invasion have continued to reduce the valuation of the Company's Russian assets. The Company continues to apply the 99% provision for valuation of the Russian assets, as detailed in note 19. Extensive details on the negative impact that the events in Ukraine have had on the Company are provided in my Chairman's Statement within previous annual reports, which are available on the Company's website www.jpmeemeasecurities.com. The Company is not allowed to and has not engaged in any disposals of its Russian assets during this reporting period due to the continuation of the current strict economic sanctions that followed Russia's invasion of Ukraine in February 2022. Update on Russian Court Cases As detailed in the numerous RNS announcements that the Company has released in this reporting period and up until the date of this report, since the first half of 2024 when VTB made its $439.5 million claim in the Russian courts against a number of J.P.Morgan legal entities, including JPMorgan Bank International (the Russian sub-custodian for the Company's Russian assets) and the Company, VTB has made additional claims of $81.3 million, $74.5 million and €108 million and Sberbank has made a $830,183 claim against the same defendants. A summary of the status of the each of the claims is detailed in an RNS released on 15th December 2025 which in short, indicates that the Russian court has upheld VTB's $439.5 million claim, but enforcement has not yet been undertaken and proceedings on this and the other cases continue. As stated in the previous year's annual report, enforcement of the claim by VTB may result in the insolvency of the Company's sub-custodian in Russia and may constitute a Force Majeure and or Country Risk event (as defined in the contracts that clients have with J.P. Morgan). If the Russian sub-custodian were to be declared insolvent, the Manager has advised us that the Company's Russian assets could not be serviced by them. Russian Presidential Decree 48 suggests that securities and cash held in type 'S' accounts of an insolvent institution will be transferred to an alternative credit organisation or professional participant of the securities market as determined by the Central Bank of Russia. However, the precise mechanism and how this would work in practice with the current sanctions regime is unknown. The Board will provide a further update once more information becomes available. The Russian Court continues to allow VTB to include the Company in the list of defendants despite being a separate client entity, rather than a proprietary entity of the J.P. Morgan Asset Management group. The RNS announcements released in the reporting period have referred to the protection that the Company may derive from Russian Decree 8 which offers protection to client securities and RUB cash in S type accounts from the enforcement of court decisions issued after 3rd January 2024. The Russian courts have so far respected this. However, the situation remains dynamic. In addition, Presidential Decree 442 published on 23rd May 2024 established a framework for compensating the Russian Federation and/or the Central Bank of Russia for damage caused by 'unfriendly' actions of the United States of America. Decree 442 indicated that a detailed procedure would be published within four months of its issue, however, details of that further procedure remain yet to be published and analysed by market participants. In view of the unknown outcome of the VTB and Sberbank cases, there has been no impact on the financial statements as at 31st October 2025. As at 31st October 2025 the Company's Russian investments amounted to 5.7% of the portfolio, although that figure should be considered in the context of the Company's share price premium to net asset value per share of 230.8% as detailed in the Discount Control section below and in the context of the considerable uncertainty attaching to the value of its Russian assets. All these developments reinforce that there is much uncertainty of these values ever being realisable by the Company. The Board has sought to keep shareholders informed of material developments arising in relation to the Company's holdings in its Russian stocks during this continuing difficult period. The RNS announcements made by the Company regarding VTB's claims are available to view on the London Stock Exchange website https://www.londonstockexchange.com/stock/JEMA/jpmorgan-emerging-europe-middle-east-africa-securities-plc/analysis Revenue, Earnings, and Dividend The Company's net revenue for the 12 month period to 31st October 2025 after taxation was £247,000 (31st October 2024: £225,000) and the return per share, calculated on the basis of the average number of shares in issue, was 0.61 pence (31st October 2024: 0.56 pence) per share. The Company's ongoing charge of 3.3% (on an annualised basis) as at 31st October 2025 (31st October 2024: 4.2%) although relatively high is reduced from the prior year, in part due to the agreed reduction in the custody fees on Russian assets that the Board negotiated with the Company's custodian JPMorgan Chase Bank, N.A. effective from 1st August 2024. The management fee charged by the Manager continues to be based on the Company's assets, excluding the value of the Russian holdings. I am pleased to announce that the Company will recommend the payment of a dividend of 0.6p per share (2024: 0.5p per share). This will be funded from net revenue received during the year. Subject to shareholder approval, the dividend will be paid on 20th March 2026 to shareholders on the Company's register on 13th February 2026, with the ex-dividend date set for 12th February 2026. Going forward, the Board's expectation is that an annual dividend will be paid if net revenue allows. 'S' Account Balances At present, the dividends paid from the Russian securities in the Company's portfolio are held in a custody 'S' account in Moscow. As previously detailed, these dividends cannot be remitted to the Company and may never be received. They are not recognised in the Company's net asset value or in its income statement. The balance on the 'S' account attributed to the Company as at 23rd January 2026 was equivalent to approximately £54.2 million at the exchange rate applicable on that date. The Company's Manager is monitoring the receipts into the 'S' account against dividends announced by the portfolio companies, although there is no certainty that the sums in the 'S' account will ever be received by the Company. The Board also monitors the underlying local value of the Russian assets, although there remains uncertainty of these values ever being realisable by the Company. See above for reference to the protection afforded to 'S' Accounts by Decree 8. As at 23rd January 2026, an additional £2.4 million of dividend income from Russian portfolio companies has been announced but is yet to be credited to the 'S' account. Your Board also monitors this in order to assess whether all dividends due are in fact accurately recorded in the 'S' account. The addition of these sums to dividends already in an 'S' account brings the total dividends received or announced in relation to our Russian holdings to £56.6 million. For further details regarding 'S' accounts please see the Glossary of Terms and Alternative Performance Measures on page 98 in the Annual Report. Furthermore, as detailed in the RNS that the Company announced on 14th August 2025, VTB filed a claim in the Russian court seeking to avoid paying its 2024 dividends due to J.P.Morgan entities and the Company. VTB dividends announced but not yet received are estimated to have a value of £0.9 million as at 23rd January 2026. The case is ongoing. Discount Control Due to the continuing extreme market conditions that have created the unusual situation whereby the Company's shares are currently trading at a very elevated premium to its net asset value, the Board has no current plans to reinstate the Company's share discount control programme. As at 31st October 2025, the premium was 230.8%. The premium as at 28th January 2026 was 242.8%. The Board believes that this premium arises due to a difference in the view of the valuation of the Company's net assets and should not be interpreted as an indication that investors are more likely to derive any value from the Company's Russian shareholdings. Investment Management Oleg Biryulyov and Luis Carrillo continue to be the Company's Portfolio Managers supported by JPMorgan Asset Management's Emerging Markets and Asia Pacific equities team (EMAP). JPMAM's EMAP team consists of 100+ investment professionals based in both the UK and overseas. The Board receives regular reports on the service levels of the Manager, Investment Manager and the Company's key service providers. Through the Management Engagement Committee, the Board formally evaluated their performance in September 2025. Following that review, the Board concluded that it was satisfied with the current levels of service. Investment Manager's Investment Process The Investment Manager's Investment Process is detailed on pages 17 to 21 in the Annual Report. The Board shares the Investment Manager's view of the importance of considering financially material ESG factors when making investments for the long term, and in particular, the necessity of continued engagement with investee companies over the duration of the investment. The Board is satisfied that financially material ESG considerations are integrated in the investment process. Board Composition Following a thorough selection process undertaken with the assistance of a third party independent search consultancy, the Board are delighted that as previously announced, Ms Joanne Irvine was appointed as a Non-executive Director of the Company on 1st May 2025. During the year, the Board evaluation process reviewed Directors, the Chair, the Committees and the working of the Board as a whole. It was concluded that all aspects of the Board and its procedures were operating effectively. In accordance with corporate governance best practice, all Directors will retire by rotation at this year's AGM and will offer themselves for re-election/election. Annual General Meeting The Company's Annual General Meeting (AGM) will be held on Wednesday 11th March 2026 at 2.00 p.m. at 60 Victoria Embankment, London EC4Y 0JP. We are pleased to invite shareholders to join us in person for the Company's AGM, hear from the Portfolio Managers and ask questions. Shareholders wishing to follow the AGM proceedings but choosing not to attend in person will be able to view proceedings live and ask questions (but not vote) through conferencing software. Details on how to register, together with access details, will be available shortly on the Company's website at www.jpmeemeasecurities.com or by contacting the Company Secretary at jpmam.investment.trusts@jpmorgan.com 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. Shareholders who are unable to attend the AGM are strongly encouraged 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 on pages 94 to 95 in the Annual Report. 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 these arrangements for the AGM, the Company will update shareholders via the Company's website. Stay in Touch Your Board would like to ensure Shareholders have regular information about the Company's progress. Please consider signing up for our email updates featuring news and views, as well as the latest performance of the portfolio. You can opt in via the QR Code on page 2 in the Annual Report or via the following link visit https://tinyurl.com/JEMA-Sign-Up. Outlook Despite the recent US led proposals for peace in Ukraine, the path to a meaningful resolution to the conflict remains unclear. The decision of the Russian court to uphold VTB's $439.5 million claim and their as yet unexercised right to enforce the claim means that we remain unclear about the outcome of this action. We will continue to keep shareholders informed of the decision by RNS announcement. Despite these unprecedented and complex events, the Company's investment objective at least helps the Company steer through this very difficult period. Although cognisant of the impact of the Russian holdings on the Company, the challenge for the Board is to use the investment objective to grow the Company's assets in a way that promotes the success of the Company for the benefit of the shareholders as a whole. The Board is confident that, with the assistance of the JPMorgan EMAP team over the long term and a supportive political and regulatory environment, the Company's investment objective is achievable. Eric Sanderson Chairman 29th January 2026 INVESTMENT MANAGER'S REPORT "Over the year, the Company returned +25.5% on an NAV total return basis, outperforming the Company's Reference Index, which returned +19.5% over the same period. This outperformance was mainly the result of stock selection, although asset allocation decisions also made a meaningful contribution to returns." Introduction As mentioned by the Chairman in his latest statement, and in previous reporting, the Company's Russian holdings continue to be subject to strict sanctions, and their valuations have been discounted accordingly. In addition, the numerous Russian court cases including VTB's $439.5 million claim against eight J.P.Morgan legal entities and the Company continue as detailed in the Chairman's statement. This Investment Manager's Report therefore relates to the Company's strategy and portfolio activity under its revised investment objective, which is to maximise total return to shareholders from a diversified portfolio of investments in Emerging Europe (including Russia) Middle East and Africa (EMEA). It covers the 12-month period ended 31st October 2025. Performance Over the year, the Company returned +25.5% on an NAV total return basis, outperforming the Company's Reference Index, which returned +19.5% over the same period. This outperformance was mainly the result of stock selection, although asset allocation decisions also made a meaningful contribution to returns. Portfolio At the end of the 12-month review period, the Company's portfolio comprised 92 stocks and securities, compared to 106 holdings at the end of the previous year. Of these, 25 were Russian, the same as at the end of last year. The Company's Russian securities comprise approximately 5.7% of the written down value of the portfolio, as compared to 7% at end of the previous financial year. The Company's holding in the JPMorgan Liquidity Fund is not included in the above numbers. Market backdrop The review period was characterised by strong absolute and relative performance by emerging European, Middle East and African markets, although there were large disparities between markets, and these gains also mask significant intra-year volatility. Markets made steady but modest progress in the first months of the review period, supported by a rotation out of US markets, which was fuelled by investors' concerns about the incoming US administration's tariff policies and associated risks to growth. Emerging European equities were a particular beneficiary of this trend. As was the case in developed markets, emerging market equities dropped sharply in April 2025 as fears about the US's aggressive trade policy escalated. However, this adverse market reaction prompted the US to postpone threatened tariff rises subject to further negotiations with its major trading partners. Global investors welcomed this delay, and emerging market share prices climbed steadily in the second half of the year, further encouraged by better-than-expected earnings results and higher dividend payouts. However, initial public offerings (IPOs), which were a key feature for emerging markets in the previous two years, were less relevant during 2025. South Africa fared much worse than other EMEA nations in subsequent trade negotiations. The US imposed a 30% tariff on South African imports - the highest rate imposed on any African country. Tensions between the two nations continue to simmer, with the US threatening to bar South Africa from attending the next G20 meeting, to be held in Miami. Performance attribution 31st October 2025
| % | % | |
| Contributions to total returns | ||
| Reference index return | 19.5 | |
| Asset allocation | 2.0 | |
| Stock selection | 8.6 | |
| Gearing/(net cash) | (0.6) | |
| Investment Manager contribution | 10.0 | |
| Portfolio return | 29.5 | |
| Management fee and other expenses1 | (4.0) | |
| Return on net asset value per ordinary shareAPM | 25.5 | |
| Effect of movement in premium over the year | 54.1 | |
| Return on share priceAPM | 79.6 |
| Movement from | |||
| Principal risk | Description | Mitigating activities | prior year |
| Investment Management and Performance | |||
| Investing in Emerging Markets | Investors should note that there are significant risks inherent in investing in emerging market securities not typically associated with investing in securities of companies in more developed countries. In terms of gauging the economic and political risk of investing in emerging markets, it frequently appears in the higher risk categories when compared with most Western countries. The value of emerging market securities, and therefore the net asset value of the Company, may be affected by uncertainties such as economic, political or diplomatic developments, social and religious instability, taxation and interest rates, currency repatriation restrictions, crime and corruption and developments in the law or regulations in emerging markets and, in particular, the risks of expropriation, nationalisation and confiscation of assets and changes in legislation relating to the level of foreign ownership. Some of these risks arise in the current VTB and Sberbank legal cases against JPM entities and the Company as referred to in the Chairman's statement and recent RNS announcements. Such factors may lead to a reduction in the size of the Company's net assets and it becoming unviable. Russia's invasion of Ukraine on 24th February 2022 led to the realisation of some of the above risks and Russia becoming a pariah state for western investors. The fragility of relations in the Middle East and risk of further instability in the region continues. | Following Russia's invasion of Ukraine on 24th February 2022, the prohibition of trading of Russian securities, prohibition on the ultimate receipt of dividends and reduction in the value of the Company by circa 95% led the Board to propose a shareholder resolution to widen the Company's investment objective and permit investments in Emerging Europe, Africa & Middle East. Shareholders approved the widening of the Company's investment objective on 23rd November 2022 and the Company implemented its new investment objective in the first quarter of 2023. The Board also temporarily suspended its dividend payment policy and the Company's financial statements no longer reflect dividends receivable from the Company's Russian stocks. The Board's activities also included reviewing the value of the Company's portfolio, discount/premium to share price, sanctions, counter-parties status, inability to trade stocks and review of investment strategy. The Board has sought external professional advice where appropriate. | â |
| Share Price Discount to Net Asset Value ('NAV') per Share | If the share price of an investment trust is lower than the NAV per share, the shares are said to be trading at a discount. The widening of the discount can be seen as a disadvantage of investment trusts which could discourage investors. Although it is common for an investment trust's shares to trade at a discount, particular events can negatively impact market sentiment. Due to the substantial reduction in the book value of the Company's assets following Russia's invasion of Ukraine the Company's shares have traded at a premium. | The prohibition of trading of securities in Russian companies held in the Company's portfolio which was introduced following Russia's invasion of Ukraine on 24th February 2022 led the Board to suspend its share buy back policy. In addition the Board has withdrawn its commitment to provide a tender offer based on performance of the Company against the RTS benchmark in the five year period to 31st October 2026. In normal market conditions the Board monitors the Company's discount level and seeks, where deemed prudent, to address imbalances in the supply and demand of the Company's shares through a programme of share buybacks. For details of the Company's Continuation Vote, including recent updates, see the Key Features at the front of this document. | â |
| Investment Under-performance and Strategy | An inappropriate investment strategy, for example asset allocation may lead to underperformance against the Company's reference index and peer companies. | Following Russia's invasion of Ukraine on 24th February 2022, the prohibition of the trading of Russian securities led to the closure of the Russian market to the Company and its peers together with the cessation of reporting of benchmark data by western news companies. The Board managed these unprecedented events by keeping regularly updated regarding compliance with sanctions and ensuring sufficient liquidity in order to maintain a going concern basis. In normal market conditions, the Board manages these risks by diversification of investments through its investment restrictions and guidelines, which are monitored and reported on by the Manager. The Manager provides the Directors with timely and accurate management 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 Manager, who attends all Board meetings, and reviews data which show statistical measures of the Company's risk profile. Following adoption of the new mandate the Board re-commenced this process for its new investments. The Company amended its investment objective in 2022 to widen its investment to include Emerging Europe, Middle East and Africa. Possible actions that the Board may consider to address underperformance include changing the Portfolio Manager or selecting another manager. | â |
| Failure of Investment Process | A failure of process could lead to losses. | The Manager mitigates this risk through internal controls and monitoring. An incidence of fraud is required to be notified immediately to the Board and regular reports are provided on control processes. | â |
| Loss of Investment Team or Portfolio Managers | The sudden departure of the Portfolio Manager or several members of the wider investment management team could result in a short term deterioration in investment performance. | The Investment Manager takes steps to reduce the 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 privately with the Portfolio Manager on a regular basis. | â |
| Market and Financial | The Company's assets consist of listed securities and it is therefore exposed to movements in the prices of individual securities and the market generally. The financial risks faced by the Company include market price risk, interest rate risk, foreign currency risk, liquidity risk and credit risk. | In normal market conditions the Board considers asset allocation and stock selection on a regular basis and has set investment restrictions and guidelines, which are monitored and reported on by the Manager. During the current period of prohibition on the trading of Russian securities, a fair value valuation method involving a 99% provision against the Company's Russian investments is applied. Further details are disclosed in note 20 on pages 82 to 87 in the Annual Report. The Manager regularly monitors the liquidity of the portfolio including determining the market valuation of securities held, the average daily volume and number of days to liquidate a holding. | â |
| Operational Risks | |||
| Cyber Crime | Disruption to, or failure of, the Manager's accounting, dealing or payments systems or the Depositary or custodian's records could prevent accurate reporting and monitoring of the Company's financial position. Under the terms of its agreement, the Depositary has strict liability for the loss or misappropriation of assets held in custody. See note 20(c) for further details on the responsibilities of the Depositary. | Details of how the Board monitors the services provided by JPMF and its associates and the key elements designed to provide effective internal control are included within the Risk Management and Internal Control section of the Corporate Governance Statement on page 51in the Annual Report. The threat of Cyber attack is increasing and regarded as having the ability to cause equivalent disruption to the Company's business as more traditional business continuity and security threats. The Company benefits from JPMorgan's Cyber Security Programme. The information technology controls around the physical security of JPMorgan's data centres, security of its networks and security of its trading applications are tested by independent auditors PricewaterhouseCoopers and reported every six months against the Audit and Assurance Faculty (AAF) standard. | â |
| Counterparty Risk | Local custodian or broker counterparty failure resulting in loss of stock/money. Inability of Custodian to service the Company's assets. In the Chairman's statement and recent RNS announcements, the Company has said that if the VTB claim is successful then the Company's sub-custodian may become insolvent and may constitute a Force Majeure event and/or Country risk event, as defined in the contracts that clients have with J.P. Morgan. | The Manager monitors counterparty exposures closely and has set limits according to various criteria (including an assessment of financial stability of counterparty). The Board receives information relating to counterparties. The possibility of the Company's custodian in Russia becoming insolvent and a force majeure scenario arising in respect of the Company's Russian assets is referred to in detail in the Chairman's Statement and in recent RNS announcements. The Board has sought external professional advice where appropriate. | â |
| Regulatory Risks | |||
| Board Relationship with Shareholders | The risk that the Company's strategy and performance does not align with shareholders expectations. | The Manager addresses this by the organisation of an email address on the Company's website whereby shareholders can raise questions. Feedback from shareholders is received directly through the email address provided on the Company's website and via brokers which is fed back to the Board regularly. In addition, the Board is in regular contact with significant shareholders and also meets with other shareholders informally after AGMs to better understand shareholder expectations. | â |
| Political and Economic | Changes in financial or tax legislation may adversely affect the Company. In addition, the Company is subject to administrative risks, such as the imposition of restrictions on the free movement of capital. In addition, The Russian Government may change legislation which currently protects 'S' accounts against loss from legal action. | The Manager makes recommendations to the Board on accounting, dividend and tax policies and the Board seeks external advice where appropriate. The Manager closely monitors political, legal and economic developments and reports significant events to the Board either at scheduled meetings or when an event arises. The Board factors in the status of current political and economic developments in its decision making. See above for details of the Board's responses to Russia's invasion of Ukraine including the prohibition on trading and ultimate receipt of dividends from Russian held companies, and successful proposal to widen the Company's investment objective. The Board has sought external professional advice where appropriate. | â |
| Regulatory and Legal | Breach of regulatory rules, including sanctions could lead to suspension of the Company's Stock Exchange listing, financial penalties, or a qualified audit report. Loss of investment trust status could lead to the Company being subject to tax on capital gains. Legal claims against the Company may arise due to sanctions effectively 'freezing' Russian assets. | The Board has remained informed of the impact of the sanctions and restrictions that followed Russia's invasion of Ukraine on 24th February 2022. Moreover, the Board sought and received FCA approval for the change to the Company's investment objective, which includes investment in Russia. HMRC also confirmed the continuation of the Company's investment trust status. The Board, with the assistance of the Manager, monitors the Company's activities to ensure that they remain compliant with the current sanctions regime including the specific requirements applicable to the Manager as a company subject to the laws of the United States of America and other jurisdictions that it operates in. The Directors seek to comply with all relevant regulation and legislation and rely on the services of the Company Secretary, the Manager, and the Company's professional advisors to monitor compliance with all relevant requirements. The Board and its Committees review the status of the Company's regulatory and legal requirements at regular intervals. The Board is kept updated of the status of the ongoing Russian court cases against eight JPM entities and the Company as referred to in the Chairman's Statement. | â |
| Climate Risks | |||
| Climate Change | Climate change, which barely registered with investors a decade ago, has today become one of the most critical issues confronting asset managers and their investors. Investors can no longer ignore the impact that the world's changing climate will have on their portfolios, with the impact of climate change on returns now inevitable. | The Investment Manager's investment process integrates consideration of financially material environmental, social and governance factors into investment decisions. This includes the approach investee companies take to recognising and mitigating climate change risks. The Manager aims to influence the management of climate related risks through engagement and voting and is a participant of Climate Action 100+ and a signatory of the United Nations Principles for Responsible Investment. The Board is also considering the threat posed by the direct impact on climate change on the operations of the Manager and other major service providers. As extreme weather events become more common, the resiliency, business continuity planning and the location strategies of our services providers will come under greater scrutiny. | â |
| Movement from | |||
| Emerging risk | Description | Mitigating activities | prior year |
| Global Crisis | A wide scale economic crisis which could be caused by a number of catastrophic events such as climate change, may cause significant reductions in the valuations of companies in the portfolio. | The Board keeps informed of economic developments and latest ESG requirements through regular updates from the Investment Manager. | â |
| Global Trade Protectionism | A reduction in global trading arising from increased barriers to trade, including the recent shifts in US trade policy and the increased use of tariffs and protectionist measures, is a risk to economic growth, to investors' risk appetites and, consequently, to the valuations of companies in the portfolio. | The Portfolio Manager manages the Company's portfolio in light of ongoing current events. The Board can, with shareholder approval, seek to amend the investment policy and objectives of the Company to mitigate the risks. | â |
| Artificial Intelligence (AI) | Advances in computing power means that AI has become a powerful tool that will impact society, with a wide range of applications that include the potential to harm. While it might equally be deemed a force for good, there appears to be an increasing risk to society from the threat posed by AI. | The Board monitors developments concerning AI as its use evolves and considers how it might threaten the Company's activities, which may include a heightened threat to cybersecurity. The Board works closely with the Manager in identifying these threats and monitors the strategies of our service providers. | â |
| Year ended | Year ended | |||||
| 31st October 2025 | 31st October 2024 | |||||
| Revenue | Capital | Total | Revenue | Capital | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Gains on investments held at fair value through | ||||||
| profit or loss | - | 5,241 | 5,241 | - | 2,431 | 2,431 |
| Net foreign currency exchange losses | - | (8) | (8) | - | (29) | (29) |
| Income from investments | 1,127 | 28 | 1,155 | 974 | 2 | 976 |
| Interest income | 4 | - | 4 | 35 | - | 35 |
| Gross return | 1,131 | 5,261 | 6,392 | 1,009 | 2,404 | 3,413 |
| Management fee | (78) | (117) | (195) | (66) | (98) | (164) |
| Other administrative expenses | (751) | - | (751) | (666) | - | (666) |
| Net return before taxation | 302 | 5,144 | 5,446 | 277 | 2,306 | 2,583 |
| Taxation | (55) | - | (55) | (52) | - | (52) |
| Net return after taxation | 247 | 5,144 | 5,391 | 225 | 2,306 | 2,531 |
| Return per ordinary share | 0.61p | 12.72p | 13.33p | 0.56p | 5.70p | 6.26p |
| Called up | Capital | ||||
| share | redemption | Capital | Revenue | ||
| capital | reserve | reserves1 | reserve1 | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 31st October 2023 | 405 | 196 | 9,772 | 8,507 | 18,880 |
| Net return after taxation | - | - | 2,306 | 225 | 2,531 |
| Dividend paid in the year | - | - | - | (202) | (202) |
| At 31st October 2024 | 405 | 196 | 12,078 | 8,530 | 21,209 |
| Net return after taxation | - | - | 5,144 | 247 | 5,391 |
| Dividend paid in the year | - | - | - | (202) | (202) |
| At 31st October 2025 | 405 | 196 | 17,222 | 8,575 | 26,398 |
| 31st October | 31st October | |
| 2025 | 2024 | |
| £'000 | £'000 | |
| Fixed assets | ||
| Investments held at fair value through profit or loss | 25,853 | 21,241 |
| Current assets | ||
| Debtors | 428 | 247 |
| Current asset investment | 1 | - |
| Cash at bank | 259 | 50 |
| 688 | 297 | |
| Current liabilities | ||
| Creditors:amounts falling due within one year | (143) | (329) |
| Net current assets/(liabilities) | 545 | (32) |
| Total assets less current liabilities | 26,398 | 21,209 |
| Net assets | 26,398 | 21,209 |
| Capital and reserves | ||
| Called up share capital | 405 | 405 |
| Capital redemption reserve | 196 | 196 |
| Capital reserves | 17,222 | 12,078 |
| Revenue reserve | 8,575 | 8,530 |
| Total shareholders' funds | 26,398 | 21,209 |
| Net asset value per ordinary share | 65.3p | 52.5p |
| Year ended | Year ended | |
| 31st October | 31st October | |
| 2025 | 2024 | |
| £'000 | £'000 | |
| Cash flows from operating activities | ||
| Net return before taxation | 5,446 | 2,583 |
| Adjustment for: | ||
| Net gains on investments held at fair value through profit or loss | (5,241) | (2,431) |
| Net foreign currency exchange losses | 8 | 29 |
| Dividend income | (1,155) | (976) |
| Interest income | (4) | (35) |
| Realised losses on foreign currency exchange transactions | (18) | (24) |
| Realised foreign currency exchange losses on the JPMorgan USD Liquidity Fund | (3) | - |
| Decrease/(increase) in other debtors and VAT recoverable | 20 | (46) |
| Decrease in accrued expenses | (69) | (11) |
| Net cash outflow from operating activities before dividends, interest and taxation | (1,016) | (911) |
| Dividends received | 1,057 | 907 |
| Interest income received | 4 | 35 |
| Overseas withholding tax recovered | - | 2 |
| Net cash inflow from operating activities | 45 | 33 |
| Purchases of investments | (12,241) | (10,643) |
| Sales of investments | 12,595 | 9,827 |
| Net cash inflow/(outflow) from investing activities | 354 | (816) |
| Equity dividends paid | (202) | (202) |
| Net cash outflow from financing activities | (202) | (202) |
| Increase/(decrease) in cash and cash equivalents1 | 197 | (985) |
| Cash and cash equivalents at start of year1 | 50 | 1,040 |
| Foreign currency exchange movements | 13 | (5) |
| Cash and cash equivalents at end of year1 | 260 | 50 |
| Cash and cash equivalents consist of1: | ||
| Cash at bank | 259 | 50 |
| JPMorgan USD Liquidity Fund | 1 | - |
| Total | 260 | 50 |
| 2025 | 2024 | |||
| Pence | £'000 | Pence | £'000 | |
| Dividend paid | ||||
| Final dividend in respect of prior year | 0.5 | 202 | 0.5 | 202 |
| Total dividends paid in the year | 0.5 | 202 | 0.5 | 202 |
| 2025 | 2024 | |||
| Pence | £'000 | Pence | £'000 | |
| Final dividend proposed | 0.6 | 243 | 0.5 | 202 |
| Total dividend for Section 1158 purposes | 0.6 | 243 | 0.5 | 202 |
| 2025 | 2024 | |
| £'000 | £'000 | |
| Revenue return | 247 | 225 |
| Capital return | 5,144 | 2,306 |
| Total return | 5,391 | 2,531 |
| Weighted average number of ordinary shares in issue during the year | 40,436,176 | 40,436,176 |
| Revenue return per ordinary share | 0.61p | 0.56p |
| Capital return per ordinary share | 12.72p | 5.70p |
| Total return per ordinary share | 13.33p | 6.26p |
| 2025 | 2024 | |
| Net assets (£'000) | 26,398 | 21,209 |
| Number of ordinary shares in issue | 40,436,176 | 40,436,176 |
| Net asset value per ordinary share | 65.3p | 52.5p |
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