JPMorgan Global E.M. - Annual Financial Report
07/11/2025 07:00
RNS Number : 5747G
JPMorgan Global Emerging Mkts I.T.
07 November 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL EMERGING MARKETS INCOME TRUST PLC
FINAL RESULTS FOR THE YEAR ENDED 31ST JULY 2025
Legal Entity Identifier: 549300OPJXU72JMCYU09
Information disclosed in accordance with the DTR 4.1.3
JPMorgan Global Emerging Markets Income Trust plc ('JEMI' or the 'Company') announces its financial results for the year ended 31st July 2025.
Highlights:
· NAV total return of +14.1% for the year ended 31st July 2025, compared with +13.7% for the MSCI Emerging Markets Index with net dividends reinvested (in Sterling terms) (the 'Benchmark'). Share price total return of +16.8%.
· Three-year cumulative NAV total return: +32.4% compared with +24.1% for the Benchmark. Share price total return of +38.6%.
· Five-year cumulative NAV total return: +57.2% compared with +29.0% for the Benchmark. Share price total return of +60.5%.
· Ten-year cumulative NAV total return: +131.8% compared with +106.7% for the Benchmark. Share price total return of +129.4%.
· Total dividend of 5.6p per ordinary share paid for the 2025 financial year, a 3.7% increase from the prior year (2024: 5.4p).
· Board intends to increase the FY2026 dividend compared to the FY2025, targeting a growing dividend
· Board will continue to pay four interim dividends per year, but it expects that these dividends will be more evenly distributed than has been the case in the past. See further details in the Chair's Statement below.
· The Company bought back 20,042,322 ordinary shares into Treasury during the financial year at a weighted average discount of 11.9%, adding 1.28p per share to the NAV.
Elisabeth Scott, Chair of the Board, commented: "I am pleased to report a year of strong performance, with the Company's total return on net assets outperforming the Benchmark's return. This out-performance is not limited to the past financial year with the Company delivering cumulative returns ahead of the Benchmark over 3, 5, and 10 years.'
'My fellow directors and I remain convinced of the investment case for Emerging Markets. Their strong long-term growth prospects, favourable demographics, generally improving fiscal positions and innovative, entrepreneurial corporate cultures are all attractive features. The conviction is further supported by the Investment Manager's long-term track record, which has performed over the various and unusual challenges that have confronted investors since the turn of the decade."
Omar Negyal, Portfolio Manager, commented: "There are a few different positive drivers for Emerging Markets, all of which are to some extent now being recognised by investors: the re-emergence of China as an attractive investment destination, the importance of Emerging Markets companies in the technology space and the potential for US dollar weakness.... this investment environment is providing us with many interesting, varied and well-priced investment opportunities. Our focus will remain on building a portfolio which gives shareholders the opportunity to participate in Emerging Markets' exciting growth story, while also providing them with an attractive yield."
CHAIR'S STATEMENT
Performance
The economic and market environment over the past 12 months has been challenging for investors: geopolitical tensions have increased, almost all asset classes have seen price volatility, and most recently, companies, wherever they operate, have been affected by the uncertainty surrounding US tariff policy.
Consequently, I am pleased to report that your Company has recorded a total return on net assets of +14.1%, outperforming the Benchmark return of +13.7%. The total return to shareholders (which includes both the share price return and dividends) was +16.8%. This reflects a narrowing of the discount to net asset value ('NAV') at which the Company's shares trade from 10.5% at the previous financial year end to 8.8% at the end of the year.
The Investment Manager's Report, below, reviews the market environment and the Company's performance over the reporting period in more detail. While Omar is clear that his process is driven by stock selection, it is interesting to note that this process has led the portfolio to be underweight India, where he finds it difficult to find stocks that meet his dividend criteria, and overweight Greece, where improving economic fundamentals have led to a re-rating of some of the Greek banks where your Company has exposure. Overall, it is pleasing to see that the Investment Manager's investment decisions have created value for the Company.
It is satisfying to note that the Company's NAV total return over the three- and five-year periods to 31st July 2025 and over longer periods has been significantly ahead of the Benchmark. Against its peers, the Company's performance over the long-term remains ahead of the peer group average.
Revenue and Dividends
The Company's gross revenue for the year amounted to £20.2 million (2024: £21.2 million) with net revenue of £16.0 million (2024: £16.6 million). Net revenue return per ordinary share for the year, calculated on the average number of shares in issue, was 5.69p (2024: 5.64p).
During the financial year, the Board paid three interim dividends of 1.0p per ordinary share, and on 3rd September 2025 it announced the payment of a fourth interim dividend of 2.6p per ordinary share, which was paid on 17th October 2025. This brings the total dividend for the financial year to 5.6p per ordinary share, a 3.7% increase from the prior year (2024: 5.4p per ordinary share). This dividend was fully covered by revenue generated during the financial year and the Company was able to add a nominal sum to its revenue reserves carried forward again this financial year. Revenue reserves stood at £13.8 million after payment of the fourth quarterly interim dividend, (2024: £13.2 million), which equates to approximately 90% of the current annual dividend. These reserves provide the Company with the capacity to support and smooth future dividend streams, should portfolio revenues in any given year be insufficient to fund that year's dividend payments.
The Board reviews dividend receipts at each of our Board meetings, given their importance to the Company. The Board carefully considers the outlook for dividends with the Portfolio Managers, including a sensitivity analysis of the impact of currency movements on revenue. As shareholders are aware, the Company receives dividends in the currencies of developing countries and US dollars but pays dividends in sterling. It has not been the Company's policy to hedge currency risk as that is expensive and, for many currencies, impracticable. This policy inevitably means that the Company's asset values, and cash flows, may be damaged by adverse currency movements (if sterling strengthens) and flattered by favourable moves (if sterling weakens) relative to Emerging Market currencies and US dollars. Your Board and the Investment Manager are of the view that such currency effects cancel themselves out over time and that over the long term, Emerging Markets offer attractive income prospects, alongside the prospects for strong earnings growth.
The Board pays four interim dividends, reflecting the support we have received from shareholders for a regular and timely income stream.
The Board is aware of the importance of regular and attractive dividends to our shareholders and is cognisant of the increased availability to investors of other sources of income, particularly in the light of higher risk-free rates, and the impact this is having on dividend policies of many investment companies. Accordingly, it is the Board's intention to increase the absolute level of dividend that it will pay in the current financial year, as compared with FY2025, and thereafter to target a growing dividend, paid primarily out of revenue earned in each financial year but topped-up using revenue reserves or capital profits if required. The Board will continue to pay four interim dividends per year, but it expects that these dividends will be more evenly distributed than has been the case in the past, thus ensuring a more even spread of dividends to shareholders throughout the year. The Board intends to provide a further update when it declares the first interim dividend for the current year, which is expected to be announced in late November 2025.
As stated above, the Board will continue to pay four interim dividends and is therefore seeking shareholder authority to maintain this dividend payment policy at the forthcoming Annual General Meeting.
Loan Facility and Gearing
Gearing is another distinguishing feature of investment trusts, which the Board believes can be used to enhance long-term shareholder returns. Gearing levels are discussed with the Portfolio Manager at each Board meeting. Presently, the Company has a US$40 million revolving credit facility, along with an additional US$20 million accordion, provided by Industrial and Commercial Bank of China Limited (London) Plc ('ICBC') for two years, with two one-year extension options, subject to ICBC consent.
Gearing contributed 1.2% to your Company's total return over the financial year.
As at 31st July 2025, portfolio gearing stood at 5.0% (2024: 6.1%).
Share Repurchases and Issuance
During the financial year to 31st July 2025, the Company's ordinary share price traded at an average discount to net asset value of 12.1%. The Board regularly considers the merits of buying back ordinary shares to manage the level and volatility of the discount and will buy back ordinary shares if it is considered to be in the best interests of shareholders to do so. As ordinary shares are only bought back at a discount to the prevailing NAV, share buybacks benefit shareholders as they increase the NAV per ordinary share of remaining outstanding ordinary shares.
During the financial year, the Company bought back 20,042,322 ordinary shares into Treasury for a total cost of £27,505,000 at a weighted average discount of 11.9%. It did not issue any ordinary shares. These purchases were value accretive for shareholders, increasing the NAV per ordinary share by 1.28p, underscoring your Board's belief that there is attractive value in the investments held by the Company.
At the forthcoming Annual General Meeting, the Board will seek a renewal of shareholder authority to issue up to 10% of the Company's issued share capital and to buy back up to 14.99% of its own ordinary shares. It is the Board's intention to use the repurchase and allotment authorities to manage imbalances between the supply and demand of the Company's ordinary shares, thus reducing the volatility of the discount or premium, in normal market conditions, and meet demand for the Company's ordinary shares as and when they trade at an appropriate premium to NAV.
The Board will continue to actively manage the Company's discount in its commitment to seek a stable discount or premium over the longer-term, in recognition of the Company's long-term consistent and strong investment performance, and with the aim of enhancing NAV for shareholders. Between the end of the financial year and 6th November 2025, the Company has bought back an additional 4,584,528 ordinary shares into Treasury. At the time of writing, the discount stands at 9.4%.
Introduction of Conditional Tender Mechanism
In the Company's Half Year Report, the Board announced the introduction of a five-year performance-based conditional tender offer with effect from 1st August 2025 (the 'Tender Offer'). Should the tender be triggered, it would provide shareholders with the opportunity to redeem a portion of their ordinary shares at a price close to the NAV.
The Tender Offer would be made to shareholders for up to 25% of the Company's issued share capital (excluding ordinary shares held in Treasury) at the time, at a price equal to a 2% discount to the prevailing NAV (less the associated costs), in the event that the Company's audited NAV total return does not exceed the total return of the Company's Benchmark on a cumulative basis over the five years from 1st August 2025. The Company is required to pay capital gains tax ('CGT') on disposals of Indian securities, whereas the Benchmark does not incur such tax liabilities. As a result, including CGT on Indian stocks would create an inconsistency between the Company's actual performance and the Benchmark's returns. The Tender Offer will therefore be based on the Company's outperformance of the Benchmark, with the calculation adjusted to exclude CGT paid on Indian stocks, thus ensuring a fair and accurate comparison of relative performance.
The Tender Offer is contingent on the Company having the required shareholder approval at the relevant time, and also on the passing of the Company's existing three-year continuation vote at its Annual General Meetings in both 2027 and 2030. It should be noted that the Company successfully passed its last continuation vote at the 2024 Annual General Meeting, with 99.5% of votes cast in favour.
It should be further noted that the Company has outperformed the Benchmark over the longer-term, as referenced in the full annual report. The introduction of the Tender Offer will not change the Board's current approach to discount management, nor will it affect the investment process, strategy, and management of the portfolio.
Corporate Governance
The Board recognises the importance of diversity in the Boardroom and is pleased to confirm that the Company meets the targets set out in the UK Listing Rules for diversity and inclusion.
The Board supports the annual reappointment for all Directors, as recommended by the Association of Investment Companies Code of Corporate Governance. Therefore, all Directors will stand for reappointment at the forthcoming Annual General Meeting.
Portfolio Managers
Omar Negyal has managed the portfolio since 2012 and manages the assets of the Company with the support of the Investment Manager's extensive team of research analysts across Global Emerging Markets. Recruitment efforts to replace former Portfolio Manager Isaac Thong, who left JPMorgan earlier this year, continue. An update will be provided in due course.
Manager
Through the Management Engagement Committee, the Board has evaluated the Manager's performance, including that of the Investment Manager, and its fee arrangements with the Company. In view of the Company's long-term performance record and the quality of the additional services that the Manager provides to the Company, the Board is confident that JPMF should continue as the Company's Manager, with its ongoing appointment considered to be in the best interests of the shareholders.
Annual General Meeting
The Company's Annual General Meeting ('AGM') will be held at 60 Victoria Embankment, London, EC4Y 0JP on Thursday, 18th December 2025 at 2.00 p.m. Full details of the format and explanations of the business proposed at the AGM can be found in the Notice of Annual General Meeting in the full Annual Report. Portfolio Manager Omar Negyal will give a presentation to shareholders on recent performance and his view on the outlook for Emerging Markets. The meeting will be followed by afternoon tea, which will provide shareholders with an opportunity to meet Omar, as well as my fellow Board members and I.
We are delighted to invite shareholders to join us in person for the Company's AGM. However, those Shareholders wishing to follow the AGM proceedings without attending in person will be able to view them 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.jpmglobalemergingmarketsincome.co.uk or by contacting the Company Secretary at jpmam.investment.trusts@jpmorgan.com.
As is best practice, all voting on the resolutions will be conducted via a poll. Shareholders who are unable to attend the AGM in person 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 Meeting.
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 Company's website. My fellow Board members, representatives of the Manager, and I, look forward to the opportunity to meet and speak with shareholders after the formalities of the meeting have been concluded. We would also welcome comments and questions from shareholders throughout the year - please use the same contact details as above.
If there are any changes to the above AGM arrangements, the Company will update shareholders through an announcement to the London Stock Exchange and on the Company's website.
Stay Informed
The Board would like to ensure that all shareholders are kept well-informed, and to this end we encourage those who have not already done so to consider signing up for our email updates, which include news and views, as well as the latest performance. If you have not already signed up to receive these communications and you wish to do so, you can opt in via https://tinyurl.com/JEMI-Sign-Up or by scanning the QR code on the contents page in the full Annual Report.
Outlook
My fellow directors and I remain convinced of the investment case for Emerging Markets. Their strong long-term growth prospects, favourable demographics, generally improving fiscal positions and innovative, entrepreneurial corporate cultures are all attractive features. At a time of escalating global trade tensions, it is reassuring to remind ourselves that the domestic focus of many Emerging Markets companies means they are less vulnerable to the detrimental effects of tariffs than companies reliant on exports. The potential gains from Emerging Markets remain significant, especially for those investors willing to take a long-term view and tolerate some volatility along the way.
Such gains will be enhanced by the roll-out of the AI revolution, which holds huge potential to support tech and AI-related stocks across, including those in Emerging Markets, over the foreseeable future. Tech companies in Taiwan, South Korea and China, are integral to global AI supply chains and can look forward to rapid growth accordingly. Many other sectors are likely to benefit from the productivity gains AI promises to deliver over the longer term.
At the country level, it is encouraging to see the recovery in the Chinese market gathering momentum, thanks in part to buying by domestic insurers and retail investors rotating out of domestic bonds. With valuations in this market still relatively low and shareholder returns improving, there is scope for further recovery in Chinese stocks, especially if domestic spending strengthens. Elsewhere, India, one of the largest and most vibrant, but notoriously expensive, Emerging Markets, is now looking more attractive after its recent pull back, while Greece's recent sovereign rating upgrade serves as a reminder of the rewards for years of painful restructuring.
My fellow directors and I are reassured by the Investment Manager's long-term track record, which amply demonstrates the team's capacity to navigate the various and unusual challenges that have confronted investors since the turn of the decade. The Company's investment process is clearly robust and resilient, and benefits from the Investment Manager's deep and extensive Emerging Markets research resources. The Board therefore remains confident in your Company's ability to continue providing shareholders with exposure to the exciting opportunities offered by Emerging Markets and we welcome the Portfolio Managers' efforts to take advantage of market dips to grasp these opportunities at attractive prices. Stock by stock, they continue to build on the Company's track record of delivering attractive long-term returns and dividend income to shareholders.
On behalf of the Board, I would like to thank you for your ongoing support and commitment to the Company.
Elisabeth Scott
Chair 6th November 2025
INVESTMENT MANAGER'S REPORT
For the year ended 31st July 2025, the Company's total return on net assets, including dividends, was +14.1%. This compares favourably with our Benchmark, with dividends reinvested, which returned +13.7%. The return to shareholders, including dividends, was +16.8%. Over the three-, five-, and ten-year periods ended 31st July 2025, the Company made annualised returns of +9.8%, +9.5% and +8.8% respectively in NAV terms, comfortably ahead of corresponding Benchmark annualised returns of +7.5%, +5.2% and +7.5%.
Investment Environment
Emerging Market ('EM') assets faced a volatile backdrop over the past 12 months, characterised by episodes of weakness driven by US policy uncertainty. However, this volatility did not prevent some markets from realising significant gains over the year, buoyed by selective fiscal and monetary easing, an improving inflation profile in several regions, and signs of a technology-led recovery in China.
Over the past year, investors were most focused on geopolitical developments. US tariff negotiations and fears of a global trade war had the most marked adverse impact on global markets, although a sharp drop in April was reversed when the US delayed threatened tariff hikes pending further negotiations. The associated easing in investors' anxieties was manifested most clearly in renewed strength in US technology stocks perceived to be the biggest beneficiaries of artificial intelligence ('AI'). Investors responded positively to US technology companies' plans to increase capital expenditure to build out their AI capabilities.
However, ongoing concerns that US tariffs would place upward pressure on US inflation and possibly trigger recession, allied with other developments, including the President's attempts to pressure the US Federal Reserve to cut interest rates and influence monthly jobs data, undermined investor confidence in US assets, including the US dollar, which weakened over the review period. A lower dollar eases debt servicing burdens for EM economies with significant dollar-denominated debt and gives EM central banks more policy flexibility - a welcome development given the disinflationary pressures in many EM countries. Asian and other Emerging Markets have been the beneficiaries of significant capital inflows, as investors rotate out of US assets.
Developments across the major EM countries were mixed. In China, market sentiment improved in the fourth quarter of 2024 after Beijing unveiled incremental fiscal measures and targeted stimulus, which triggered a sharp rally and attracted global investors toward still-cheap valuations. In addition, the launch of China's Deep Seek AI platform, and the subsequent increase in investment in cloud subscriptions and semiconductors, has sparked widespread interest in China's role in the development of AI. This interest, along with the US tech hyperscalers' (e.g. Amazon, Google, Microsoft) plans to develop their AI capabilities, supported the share price of Taiwanese and Korean companies playing a major role in the global AI supply-chain.
Conversely, Indian stocks experienced downward pressure. Investors rotated away from this market for several reasons including premium valuations and softer earnings. Growth has also slowed slightly due to weaker manufacturing output, elevated food inflation, and more muted urban consumption.
Performance attribution
| for the year ended 31st July 2025 | % | % |
| Contributions to total returns | ||
| Benchmark total return | 13.7 | |
| Asset allocation1 | 2.7 | |
| Stock selection1 | (3.0) | |
| Gearing/cash | 1.2 | |
| Investment Manager contribution | 0.9 | |
| Portfolio total return | 14.6 | |
| Management fees and other expenses | (1.0) | |
| Impact of provision for capital gains tax | 0.1 | |
| Impact of finance costs | (0.5) | |
| Share buy-backs | 0.9 | |
| Other effects | (0.5) | |
| Return on net assets2 | 14.1 | |
| Return to shareholders3 | 16.8 |
| Top six contributors | Top six detractors | ||
| 1. | India | 1. | China |
| 2. | Greece | 2. | Indonesia |
| 3. | Taiwan | 3. | South Korea |
| 4. | Thailand | 4. | United Arab Emirates |
| 5. | Saudi Arabia | 5. | South Africa |
| 6. | Turkey | 6. | Peru |
| Top five contributors | Top five detractors | ||
| 1. | National Bank of Greece | 1. | Xiaomi |
| 2. | China Merchants Bank | 2. | Bank Rakyat |
| 3. | Reliance Industries (not owned) | 3. | Bank Mandiri |
| 4. | NetEase | 4. | Tencent |
| 5. | OPAP | 5. | Walmart de Mexico |
| Change in risk status | |||
| Principal risk | Description | Mitigating activities | during the year |
| Investment performance | Inappropriate investment decisions, for example poor stock selection or asset allocation may lead to underperformance against the Company's Benchmark index and peer companies. | The Board manages this risk by diversification of investments through its investment restrictions and guidelines, which are monitored and reported by the Manager. The Investment Manager provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, currency performance, liquidity reports and peer group analyses. The Board monitors the implementation and results of the investment process with the Portfolio Manager, who attends Board meetings, and reviews data which show statistical measures of the Company's risk profile. The Board holds a separate meeting devoted to strategy each year. | áâ The Audit and Risk Committee's assessment of this risk remains stable, and unchanged from the previous year. The Company continued to pursue its investment objective in accordance with the agreed strategy. The Board continued to monitor the performance of the portfolio over the financial year, which it noted outperformed the Benchmark. Furthermore, the Board takes comfort from the Company's strong longer-term performance. |
| Income | There is the risk that the Company may underperform resulting in insufficient local currency generation, reducing the income available to pay dividends to shareholders. | The Investment Manager has an investment process which is designed to maximise the performance of the portfolio in meeting the investment objective and delivery of income. The Board regularly reviews investment and financial reports, including revenue estimates. | áâ The Audit and Risk Committee's assessment of this risk remains stable, and unchanged from the previous year. Whilst macroeconomic conditions have been challenging, the Company continued to generate income, outperforming the Benchmark. Given the level of income, the Board has increased the dividend for the financial year, which was wholly funded by the revenue earned in the year. |
| Strategy | If the Company's business objective and strategy is no longer appropriate or there is increased competition from alternative investment products, it may lead to a lack of investor demand. This may result in the Company's shares trading at a wide discount to net asset value to that which is acceptable. A widening discount out of line with the industry may lead to hostile action by shareholders or arbitrageurs. An inappropriate gearing strategy may lead to suboptimal returns; poor performance if over-geared in weak markets or performance foregone if under-geared in strong markets. | The Board holds a separate meeting devoted to strategy each year. The Board seeks to narrow the discount by undertaking measured buybacks of the Company's shares. The Company has authority to buy back its existing ordinary shares to enhance the NAV per ordinary share for its shareholders and to reduce the absolute level of discount and discount volatility. The Company and Manager work with the Corporate Broker to seek to increase demand for the Company's ordinary shares. The Board has set a gearing range within which the Investment Managers employ the Company's gearing on a strategic basis. Gearing levels are detailed in the monthly investment restrictions and guidelines report provided to the Board and the level of gearing is discussed at each Board meeting. | áâ The Audit and Risk Committee's assessment of this risk remains stable, and unchanged from the previous year. The Board continued to monitor the performance of the portfolio over the financial year. The total return on NAV for the year was ahead of the Benchmark. Over the longer term, the Company continues to provide good investment performance, outperforming the Benchmark. Solid performance should improve the Company's share price. The Board continued to undertake buybacks of the Company's own shares during the year. The Company's discount has slightly narrowed over the financial year as a result of these buybacks, detailed above. |
| Foreign currency | Currency movements may affect the performance of the Company. Weakness in foreign exchange rates could result in sharp declines in asset values and sterling available for dividends. | The Investment Manager does not hedge currency risk. The Board reviews the impact on income of movements in major currencies and considers sensitivity analysis of major currency changes. | áâ This risk has been reported as a separate risk this year. The Audit and Risk Committee's assessment of this risk is that it remained stable during the year. |
| Political and Economic | The Company's returns, both capital and revenue, are affected by changes in economic, political and corporate conditions, which can cause market and exchange rate fluctuations. Sustained underperformance of Emerging Markets as an asset class may result from risks such as the imposition of restrictions on the free movement of capital, ability to pay corporate dividends and change in legislation. Economic, political and military conflicts are an ever present reality. So too are the risks of social dislocation or civil unrest within countries. These bring with them risks to economic growth, to investors' risk appetites and, consequently, to the valuations and distributions of companies in the portfolio. | This risk is managed to some extent by diversification of investments both by geography and sector, and by regular communication with the Investment Manager on matters of investment strategy and portfolio construction which will directly or indirectly include an assessment of these risks. The Board receives regular reports from the Manager and Corporate Broker regarding market outlook and considers thematic and factor risks, stock selection and levels of gearing on a regular basis. | áâ The Audit and Risk Committee's assessment of this risk remains heightened, and therefore unchanged from the previous year. Political and economic risks have always been a factor in the risk of investing in equities. The risk remains heightened to reflect the United States implementation of widespread tariffs on imports; the continuing war between Russia and Ukraine; the military tensions over the Taiwan Strait; and the continuing conflict between Israel and Hamas, all which are impacting global markets, investment sentiment and economic stability. |
| Financial | The financial risks faced by the Company include market price risk, interest rate risk, liquidity risk and credit risk. | The Board reviews regularly and discusses the portfolio and its performance with the Portfolio Manager, which can be impacted by financial risks. Further details are disclosed in note 22 in the full Annual Report. | áâ The Audit and Risk Committee's assessment of this risk remains stable, and unchanged from the previous year. The portfolio remained diversified across geographies and sectors, reducing the exposure to any single market movement. The Company refinanced its debt during the year. The new debt facility has flexibility over the amount that can be drawn and its duration. The Company continued to meet its debt covenants over the financial year. The Company remained invested in a relatively liquid equity portfolio capable of being realised to generate liquidity if required. |
| Environmental, Social and Governance | The Board acknowledges that there are risks associated with investments in companies which fail to conduct business in a responsible manner. Insufficient consideration given to financially material ESG factors may lead to poor performance, and a reduction in demand for the Company's shares as investors seek greater ESG oversight in their portfolios. Climate change may have a disruptive effect on the business models and profitability of individual investee companies, and indeed, whole sectors. | The Manager has integrated the consideration of financially material ESG factors into the Company's investment process. Further details are set out in the full Annual Report. | áâ The Audit and Risk Committee's assessment of this risk remains stable, and unchanged from the previous year. The Board is comfortable that the Investment Manager has integrated financially material ESG considerations into its investment process, please see further details in the full Annual Report |
| Artificial Intelligence | Artificial Intelligence ('AI') has become a powerful tool that will impact a huge range of areas. The pace of AI and its adoption could, and most likely will, impact how portfolio companies transform and evolve their business models. It could also act as a disrupter to current business models and processes leading to emerging uncertainty in corporate valuations. | The Board will work with the Manager to monitor the developments concerning AI and its potential impact on the portfolio, the Company's service providers and the wider market. | áâ This is a new risk having been reclassified from an Emerging Risk in last year's report to a Principal Risk. The Audit and Risk Committee's assessment of the risk is that it remained stable during the year. |
| Accounting, Legal and Regulatory | Loss of its investment trust status and, as a consequence, gains within the Company's portfolio could be subject to UK Capital Gains Tax. A breach of the UK Companies Act 2006 could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the UK Listing Rules or Disclosure, Guidance and Transparency Rules ('DTRs') could result in the Company's shares being suspended from listing which in turn would breach Section 1158 of the Corporation Tax Act 2010. | The Section 1158 qualification criteria are continuously monitored by the Manager and the results reported to the Board at each Board meeting. The Board relies on the services of its Company Secretary, the Manager and its professional advisers to ensure compliance with the UK Companies Act 2006, the Listing Rules, DTRs and the Alternative Investment Fund Managers' Directive. | áâ The Audit and Risk Committee's assessment of this risk remains stable, and unchanged from the previous year. The Board is comfortable that the Manager continuously monitors the Company's compliance with the Section 1158 qualification criteria. |
| Operational and cybercrime | The Company is dependent on third parties for the provision of services and systems. Disruption to, or failure of, the Manager's accounting, dealing or payments systems or the depositary's or custodian's records could prevent accurate reporting and monitoring of the Company's financial position. There is also the potential for fraud, errors or control failures at the Company's Manager and or third-party service providers, which could result in damage to the Company's reputation or result in losses. The threat of a cyber-attack is regarded as at least as important as more traditional physical threats to business continuity and security. In addition to threatening the Company's operations, such an attack is likely to raise reputational issues which may damage the Company's share price and reduce demand for its shares. | The Board regularly monitors the services provided by the Manager, its associates and third-party service providers. The key elements designed to provide effective internal control of the Manager, and its associates are included within the Risk Management and Internal Control section of the Corporate Governance Report in the full Annual Report. The Manager has in place service level agreements with its service providers that are attested to on an annual basis. The Company benefits directly and/or indirectly from all elements of JPMorgan's Cyber Security programme, these controls are regularly tested and updates are shared with the Company's Audit and Risk Committee. The Audit and Risk Committee also reviews a summary of the independently audited controls reports received from the Manager and the key service providers on a six monthly basis. The Company is subject to an annual external audit. | áâ The Audit and Risk Committee's assessment of this risk remains stable, and unchanged from the previous year. The Board continues to monitor the outsourced services and an annual appraisal of the performance, and ongoing appointment, of the Manager and the Company's third-party service providers, is undertaken by the Management Engagement Committee. To date the Manager's cyber security arrangements have proven robust and the Company has not been impacted by any cyber attacks threatening its operations. |
| Year ended 31st July 2025 | Year ended 31st July 2024 | |||||
| Revenue | Capital | Total | Revenue | Capital | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Gains on investments held at fair value through | ||||||
| profit or loss | - | 40,075 | 40,075 | - | 13,406 | 13,406 |
| Net foreign currency exchange gains/(losses) | - | 899 | 899 | - | (76) | (76) |
| Income from investments | 19,987 | 236 | 20,223 | 20,948 | 275 | 21,223 |
| Interest receivable and similar income | 240 | - | 240 | 227 | - | 227 |
| Gross return | 20,227 | 41,210 | 61,437 | 21,175 | 13,605 | 34,780 |
| Management fee | (973) | (2,270) | (3,243) | (962) | (2,246) | (3,208) |
| Other administrative expenses | (919) | - | (919) | (895) | - | (895) |
| Net return before finance costs and taxation | 18,335 | 38,940 | 57,275 | 19,318 | 11,359 | 30,677 |
| Finance costs | (613) | (1,431) | (2,044) | (696) | (1,623) | (2,319) |
| Net return before taxation | 17,722 | 37,509 | 55,231 | 18,622 | 9,736 | 28,358 |
| Taxation | (1,749) | 219 | (1,530) | (2,036) | (896) | (2,932) |
| Net return after taxation | 15,973 | 37,728 | 53,701 | 16,586 | 8,840 | 25,426 |
| Return per ordinary share(note 3) | 5.69p | 13.43p | 19.12p | 5.64p | 3.01p | 8.65p |
| Called up | Share | Capital | |||||
| share | premium | redemption | Other | Capital | Revenue | ||
| capital | account | reserve | reserve1 | reserve1 | reserve1 | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 31st July 2023 | 2,973 | 222,582 | 13 | 99,644 | 93,489 | 19,145 | 437,846 |
| Repurchase of ordinary shares into Treasury | - | - | - | (9,033) | - | - | (9,033) |
| Net return | - | - | - | - | 8,840 | 16,586 | 25,426 |
| Dividends paid in the year (note 2) | - | - | - | - | - | (15,615) | (15,615) |
| At 31st July 2024 | 2,973 | 222,582 | 13 | 90,611 | 102,329 | 20,116 | 438,624 |
| Repurchase of ordinary shares into Treasury | - | - | - | (27,505) | - | - | (27,505) |
| Net return | - | - | - | - | 37,728 | 15,973 | 53,701 |
| Dividends paid in the year (note 2) | - | - | - | - | - | (15,298) | (15,298) |
| At 31st July 2025 | 2,973 | 222,582 | 13 | 63,106 | 140,057 | 20,791 | 449,522 |
| 31st July 2025 | 31st July 20241 | |
| £'000 | £'000 | |
| Fixed assets | ||
| Investments held at fair value through profit or loss1 | 466,501 | 455,480 |
| Investments on loan held at fair value through profit or loss1 | 5,553 | 9,884 |
| Total investments held at fair value through profit or loss | 472,054 | 465,364 |
| Current assets | ||
| Debtors | 1,296 | 2,804 |
| Current assets investments1 | 6,267 | 2,459 |
| Cash at bank1 | 1,723 | 701 |
| 9,286 | 5,964 | |
| Current liabilities | ||
| Creditors:amounts falling due within one year | (31,423) | (16,110) |
| Net current liabilities | (22,137) | (10,146) |
| Total assets less current liabilities | 449,917 | 455,218 |
| Creditors:amounts falling due after more than one year | - | (15,571) |
| Provision for liabilities | (395) | (1,023) |
| Net assets | 449,522 | 438,624 |
| Capital and reserves | ||
| Called up share capital | 2,973 | 2,973 |
| Share premium account | 222,582 | 222,582 |
| Capital redemption reserve | 13 | 13 |
| Other reserve | 63,106 | 90,611 |
| Capital reserve | 140,057 | 102,329 |
| Revenue reserve | 20,791 | 20,116 |
| Total equity shareholders' funds | 449,522 | 438,624 |
| Net asset value per ordinary share(note 4) | 166.7p | 151.4p |
| Year ended | Year ended | |
| 31st July 2025 | 31st July 2024 | |
| £'000 | £'000 | |
| Cash flows from operating activities | ||
| Net return before finance costs and taxation | 57,275 | 30,677 |
| Adjustment for: | ||
| Net gains on investments held at fair value through profit or loss | (40,075) | (13,406) |
| Net foreign currency exchange (gains)/losses | (899) | 76 |
| Dividend income | (20,223) | (21,221) |
| Interest income | (167) | (209) |
| Scrip dividends received as income | - | (2) |
| Realised gains/(losses) on foreign currency exchange transactions | 60 | (239) |
| Realised foreign currency exchange (losses)/gains on the JPMorgan USD | ||
| Liquidity Fund | (81) | 191 |
| (Increase)/decrease in other debtors | (11) | 30 |
| Decrease in accrued expenses | (4) | (2) |
| Net cash outflow from operating activities before dividends, interest and taxation | (4,125) | (4,105) |
| Dividends received | 19,567 | 19,310 |
| Interest received | 167 | 209 |
| Overseas withholding tax recovered | 55 | 51 |
| Indian capital gains tax (paid)/recovered | (409) | 3 |
| Net cash inflow from operating activities | 15,255 | 15,468 |
| Purchases of investments | (115,590) | (124,379) |
| Sales of investments | 149,340 | 135,473 |
| Net cash inflow from investing activities | 33,750 | 11,094 |
| Dividends paid | (15,298) | (15,615) |
| Repurchase of ordinary shares into Treasury | (26,892) | (9,032) |
| Repayment of loan | (31,935) | - |
| Drawdown of loan | 31,870 | - |
| Interest paid | (1,989) | (2,256) |
| Net cash outflow from financing activities | (44,244) | (26,903) |
| Increase/(decrease) in cash and cash equivalents1 | 4,761 | (341) |
| Cash and cash equivalents at start of year1 | 3,160 | 3,475 |
| Foreign currency exchange movements | 69 | 26 |
| Cash and cash equivalents at end of year1 | 7,990 | 3,160 |
| Cash and cash equivalents consist of1: | ||
| Cash at bank | 1,723 | 701 |
| Current assets investments in the JPMorgan USD Liquidity Fund | 6,267 | 2,459 |
| Total | 7,990 | 3,160 |
| 2025 | 2024 | |||
| Pence | £'000 | Pence | £'000 | |
| Dividends paid | ||||
| Fourth interim dividend in respect of prior year | 2.40 | 6,930 | 2.30 | 6,813 |
| First interim dividend paid | 1.00 | 2,859 | 1.00 | 2,955 |
| Second interim dividend paid | 1.00 | 2,790 | 1.00 | 2,944 |
| Third interim dividend paid | 1.00 | 2,719 | 1.00 | 2,903 |
| Total dividends paid in the year | 5.40 | 15,298 | 5.30 | 15,615 |
| Dividends declared | ||||
| Fourth interim dividend declared | 2.60 | 6,968 | 2.40 | 6,930 |
| 2025 | 2024 | |||
| Pence | £'000 | Pence | £'000 | |
| First interim dividend | 1.00 | 2,859 | 1.00 | 2,955 |
| Second interim dividend | 1.00 | 2,790 | 1.00 | 2,944 |
| Third interim dividend | 1.00 | 2,719 | 1.00 | 2,903 |
| Fourth interim dividend | 2.60 | 6,968 | 2.40 | 6,930 |
| Total dividends for Section 1158 purposes | 5.60 | 15,336 | 5.40 | 15,732 |
| 2025 | 2024 | |
| £'000 | £'000 | |
| Revenue return | 15,973 | 16,586 |
| Capital return | 37,728 | 8,840 |
| Total return | 53,701 | 25,426 |
| Weighted average number of ordinary shares in issue during the year | 280,885,971 | 294,183,867 |
| Revenue return per ordinary share | 5.69p | 5.64p |
| Capital return per ordinary share | 13.43p | 3.01p |
| Total return per ordinary share | 19.12p | 8.65p |
| 2025 | 2024 | |
| Net assets (£'000) | 449,522 | 438,624 |
| Number of ordinary shares in issue | 269,640,266 | 289,682,588 |
| Net asset value per ordinary share | 166.7p | 151.4p |