JPMorgan Emerg Mkts - Half-year Report
25/02/2025 07:00
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RNS Number : 2887Y JPMorgan Emerging Mkts Invest Trust 25 February 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN EMERGING MARKETS INVESTMENT TRUST PLC
HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31ST DECEMBER 2024
Legal Entity Identifier: 5493001VPQDYH1SSSR77
Information disclosed in accordance with the DTR 4.2.2
JPMorgan Emerging Markets Investment Trust plc (the 'Company') announces its
half year results for the period ended 31st December 2024.
Highlights
· Net asset value ('NAV') per share on a total return basis was 2.8%,
while total return to shareholders was 2.1%. This compares with a 1.0%
increase in the Benchmark, the MSCI Emerging Markets Index with net dividends
reinvested, in sterling terms.
· In the five years ended 31st December 2024, the Company has delivered
an annualised total return of 3.6% on a NAV basis, outpacing the Benchmark,
which returned 2.8% on the same basis.
· The Board has declared an interim dividend of 0.65 pence (2023: 0.60
pence), to be paid on 25 April 2025 to shareholders on the register as at the
close of business on 14 March 2025.
· The Company has received notable recognition, including winning the
AJ Bell Investment Awards 2024 for Emerging Markets Equity Active, a
recommendation from Winterflood, and coverage in Investors Chronicle, Shares,
and MoneyWeek. It is also featured in Hargreaves Lansdown's '5 Investment
Trusts to Watch for 2025' and has a 'Buy' rating on the AJ Bell Select List.
Aidan Lisser, Chairman of JMG, commented:
"While Emerging Markets equities showed a positive performance over the full
calendar year, the combination of a strong US equity market, rising bond
yields, and a strengthening US dollar, along with other macroeconomic and
geopolitical factors, contributed to a challenging period in the second half
of the year, culminating in a weak final quarter of 2024. It is encouraging to
report that both the Net Asset Value (NAV) and share price outperformed the
benchmark, albeit in an environment of low absolute returns."
"We have learnt to expect the unexpected and the outlook for emerging markets
continues to be uncertain. The Portfolio Managers' focus continues to be on
identifying high-quality, globally competitive companies, leveraging J.P.
Morgan's extensive proprietary emerging markets research insights to drive
long-term value for our shareholders."
JMG's Porfolio Managers, Austin Forey and John Citron, commented:
"In an era of heightened political risks in many parts of the world, our focus
must remain on finding companies that create value for shareholders by
offering value to their customers with the products or services that they
sell.
In all but the most extreme economic scenarios, it is what companies achieve
that produces the biggest difference in outcomes, in our experience. We
believe that your portfolio owns many of the best businesses that can be found
in emerging markets, and in an uncertain world, investing in companies that
give customers something that they want and value is one way to look forwards
to the future with confidence, regardless of the uncertainty that it always
holds."
CHAIR'S STATEMENT
Positive first half despite a challenging backdrop
In a difficult period for emerging markets, your company benefitted from
strong technology sector performance as well as gains from several Indian
company holdings. Overall, while Emerging Markets equities showed a positive
performance over the full calendar year, the combination of a strong
US equity market, rising bond yields, and a strengthening US dollar, along
with other macroeconomic and geopolitical factors, contributed to a
challenging period in the second half of the year, culminating in a weak
final quarter of 2024. All in all a 'noisy environment', as aptly described in
our Portfolio Managers' report.
Investment performance ahead of benchmark
It is encouraging to report that both the Net Asset Value (NAV) and share
price outperformed the benchmark, albeit in an environment of low absolute
returns. The Company's NAV total return over the six months to 31st December
2024 was +2.8%, while the total return to shareholders was +2.1%. This
compares with a 1.0% increase in the benchmark, the MSCI Emerging Markets
Index with net dividends reinvested, in sterling terms.
In our last Annual Report, we discussed the Board's deep dive review into the
Company's performance, highlighting adjustments to the portfolio, certain
enhancements to the Manager's existing research capabilities, and the
identification of new opportunities. In their Portfolio Managers' report,
Austin and John discuss the factors contributing to returns exceeding the
benchmark, as well as the future focus of the portfolio.
Enhanced share buybacks
During the period, the Company's shares traded at an average discount to NAV
of 12.3%. The discount ranged between 8.8% and 15.0% and ended the period at
12.8%.
Over the six-month period 38,187,509 shares (representing 3.6% of the opening
share capital ('OSC') were bought back into Treasury at an average discount of
12.3% and at a cost of £42.0 million. Your board increased the rate of share
buybacks as a percentage of OSC in the final quarter of 2024 to an average
annualised rate of 10% (up from 4% in the previous quarter), noting difficult
market conditions in the UK as well as the complex emerging markets
environment, outlined above. Share repurchases have continued since the period
end at an annualised rate of 11.8%.
Shares repurchased are held in Treasury and such Treasury shares and any new
ordinary shares will only be sold or issued at a premium to NAV.
The Board regards regular and consistent implementation of share buybacks as a
key component of our discount management strategy, and regularly assesses the
merits of buying back shares.
As shares are only bought back at a discount to the prevailing NAV, share
buybacks do enhance the NAV per share for the remaining shareholders and also
play a role in reducing volatility. These actions help to align the share
price more closely with the underlying value of the portfolio, benefiting our
shareholders and ensuring the long-term success of the Company.
As highlighted in our last Annual Report, share buybacks are one of several
measures we employ to manage the discount and enhance demand for our shares.
Our comprehensive approach includes a focus on long-term outperformance,
competitive fees, effective marketing, as well as mechanisms such as our
three-yearly continuation vote and the five-year performance-related
conditional tender offer for the period up to 30th June 2029.
Revenue and dividend increase
The Company's primary focus is to generate a total return for shareholders, in
line with its investment objective, rather than targeting a particular level
of income. Dividends received in sterling terms can fluctuate according to the
underlying earnings of portfolio holdings, as well as changes in the
composition of the portfolio and currency movements. This means that the level
of dividends may vary.
In respect of the financial year to 30th June 2024 an interim dividend of 0.60
pence per share and a final dividend of 1.30 pence per share were paid to
shareholders in April 2024 and November 2024 respectively, amounting to a
total dividend of 1.90 pence per share for the full year. This represented an
increase of 15.2% on the total of 1.65 pence per share paid in the previous
year.
Net revenue after taxation for the six months to 31st December 2024 was £8.15
million (2023: £8.03 million) and earnings per share were 0.75 pence (2023:
0.70 pence). The Board has declared an interim dividend of 0.65 pence (2023:
0.60 pence), to be paid on 25 April 2025 to shareholders on the register as at
the close of business on 14th March 2025. The ex-dividend date will be 13th
March 2025.
Appointment of new Director
As previously reported, Andrew Page retired fr om the Board at the Annual
General Meeting held in November 2024 following completion of his nine-year
tenure. The Board is grateful to Andrew for the very significant contribution
he provided to the Company during his tenure.
The Board gives considerable time to succession planning in order to ensure it
retains an appropriate balance of skills, knowledge and diverse perspectives.
To this end, we were delighted to appoint Dean Buckley as a Non-Executive
Director with effect from 2nd January 2025. Dean is an experienced investment
professional who has held senior positions in a number of asset management
firms during his career and brings with him a wide range of experience to
benefit the Board, including in the investment trust arena. He is currently
the Non-Executive Chairman of Alliance Witan PLC, Fidelity Special Values PLC
and Evelyn Partners Fund Solutions Limited. He is also a Non-Executive
Director of Baillie Gifford & Co. Limited.
The Board can confirm that its current composition is compliant with all
applicable diversity targets for UK companies listed on the London Stock
Exchange. It is the intention that this will continue to be the case.
2025 Annual General Meeting (AGM), shareholder engagement and voting
I would like to take this opportunity to express our gratitude to the
shareholders who participated in our AGM in November 2024, both in person and
online. Your engagement and the quality of your questions are important to us,
and they play a vital role in shaping the future of our company.
Looking ahead, I can confirm that our AGM in 2025 will be held on Friday 7th
November. We hope this date will be convenient for many of you, and we assure
you that there will be plenty of refreshments available to make the event
enjoyable and welcoming.
The ability for shareholders to engage and express their views through voting
is one of the benefits of our investment company structure. Recent activity in
the sector has highlighted the significance of voting and we cannot overstate
the importance of shareholders making their views known and voting on their
intentions. Your input is critical and we encourage all shareholders to
actively participate in the decision-making process.
The Board is fully supportive of recent initiatives aimed at removing barriers
and facilitating shareholder voting on retail platforms, including the
Association of Investment Companies' (AIC) 'My share, my vote' campaign. We
believe these efforts will enhance shareholder engagement and ensure that your
voices are heard. The AIC website provides some very helpful information on
how to go about the process of voting (www.theaic.co.uk)
Ongoing communication
The Board continues to focus on activities to engage existing shareholders and
attract new investor interest.. Over the past year, we have increased our
efforts to communicate with retail investors. We participated in the JPMorgan
Investment Trusts event for retail investors and encourage shareholders to
meet us in person at the AGM or view it online.
In addition, the Company undertakes an active investor relations programme
aimed at wealth managers, institutions and other professional investors. If at
any time shareholders wish to communicate with the Board directly, you can do
so by contacting the Company Secretary in the first instance at
invtrusts.cosec@jpmorgan.com
We encourage you to visit our company website www.jpmemergingmarkets.co.uk
where we regularly post insight articles and market commentary from the
Portfolio Management team, as well as monthly performance and portfolio
updates and sponsored research. Both existing and potential shareholders can
sign up to receive regular email updates providing news and views, as well as
the latest performance information. Subscribe via the website by visiting
https://tinyurl.com/JMG-Sign-Up, or scan the QR code shown in the Half Year
Report.
Awards and recommendations during the period
We are pleased that in the second half of the year, the Company received a
number of awards and endorsements. These include the AJ Bell Investment Awards
2024, Winner Emerging Markets Equity Active, a recommendation from
Winterflood, and press coverage in respected publications such as Investors
Chronicle, Shares, and MoneyWeek. Additionally, we are proud to be featured in
Hargreaves Lansdown's '5 Investment Trusts to Watch for 2025', the firm's top
investment trust picks for 2025 and beyond, as well as in the AJ Bell Select
List with a 'Buy' rating.
Outlook - the narrative remains uncertain but with potential
As Austin and John point out in their report, we have learnt to expect the
unexpected and the outlook for emerging markets continues to be uncertain. US
interest rates may not ease to the degree previously predicted and the dollar
could move higher still. Meanwhile the effect of recent trade and tariff
skirmishes are hard to read but unlikely to be favourable. On the other hand,
the valuation gap between EM and developed markets is wide and earnings growth
prospects over the long term are strong. Structural factors such as favourable
demographics, urbanisation and rapid digital adoption continue to underpin the
sector's long-term potential.
Against this backdrop, the imperative for skilled, active portfolio management
is clear. The Portfolio Managers' focus continues to be on identifying
high-quality, globally competitive companies, leveraging J.P. Morgan's
extensive proprietary emerging markets research insights to drive long-term
value for our shareholders.
Aidan Lisser
Chair
24th February 2025
PORTFOLIO MANAGERS' REPORT
The last six months have been a busy period in emerging markets, featuring
attempts at an economic stimulus package in China, continued currency woes in
Brazil and Mexico, and ongoing efforts to make radical economic reforms in
both Turkey and Argentina. Late in the year, of course, the US election result
raised fresh questions about America's trade policy and geopolitical stance,
and how that will affect the countries that your Company invests in.
In this noisy environment, returns from your portfolio exceeded those from the
benchmark index, with the net asset value per share up a little less than 3%,
compared to an index return of 1%. We can explain some of the main
contributors to this outcome. First, the extraordinary performance of
businesses in America linked to AI (artificial intelligence), most notably
Nvidia, would not be possible without the manufacturing capabilities of
companies in Korea and Taiwan, and this has been reflected in share prices.
The performance of the technology sector in emerging markets has been strong,
and dominated especially by Taiwan Semiconductor (TSMC); in fact TSMC alone
accounted for more than half the return of the entire emerging markets index
in 2024. Your fund, fortunately, has had a large investment in TSMC for many
years, and in a number of other businesses in the hardware supply chain, and
these investments were a notable contributor to performance in the latest
period.
The two markets, however, which have dominated outcomes for the trust over the
last couple of years have been India and China. In China, the overall
contribution to performance was negative over the last six months, though
stock price moves were heavily influenced by the government's attempts to
shore up a struggling economy. These produced a very sharp rally at the end of
September, though the market subsequently drifted back down as the
effectiveness of the policies began to be questioned. Our structural view on
China remains a negative one; while there are some very impressive businesses
in China that we are happy to own in your portfolio, political risk remains an
ever-present factor, and the economy is facing significant challenges as a
result of over-investment and high levels of debt.
India is almost a mirror image of China: the economy has been growing robustly
and the equity market has been on fire, with rising valuations contributing
half of the market's 50% rise in the last couple of years. We felt that share
prices were getting stretched in many places, and did not capture all of that
rise; but in the last six months, as the momentum in the market has stalled
and many stocks began to correct, your company's investments eked out some
small gains while the market as a whole declined. As a result, India was the
market with the largest positive contribution to the company's relative
performance in the latest half year.
As always, there are many other factors that we could comment on, but in the
interests of brevity, we should perhaps finish with a brief comment about the
outlook. After many years investing in emerging markets, we have learnt to
expect the unexpected. We question whether anybody can predict the actions of
the new US administration or how they will affect emerging markets; most
probably, interest rates around the world will remain higher for longer, but
in an era of heightened political risks in many parts of the world, our focus
must remain on finding companies that create value for shareholders by
offering value to their customers with the products or services that they
sell. In all but the most extreme economic scenarios, it is what companies
achieve that produces the biggest difference in outcomes, in our experience.
We believe that your portfolio owns many of the best businesses that can be
found in emerging markets, and in an uncertain world, investing in companies
that give customers something that they want and value is one way to look
forwards to the future with confidence, regardless of the uncertainty that it
always holds.
Austin Forey
John Citron
Portfolio Managers
24th February 2025
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its half year
report:
Principal and Emerging Risks and Uncertainties
The principal and emerging risks and uncertainties faced by the Company have
not changed from those reported in the Annual Report and Financial Statements
for the year ended 30th June 2024 ('AFR') and fall into the following broad
categories: investment underperformance; loss of investment team or investment
manager; political and economic; strategy/business management; operational and
counterparty failure and cyber crime; share price discount; change of
corporate control of the manager; legal and regulatory; corporate governance
and shareholder relations; and financial. Information on each of these areas
is given in the Business Review within the AFR.
Related Parties Transactions
During the first six months of the current financial year, no transactions
with related parties have taken place which have materially affected the
financial position or the performance of the Company.
Going Concern
The Directors believe, having considered the Company's investment objectives,
risk management policies, capital management policies and procedures, nature
of the portfolio and expenditure projections, that the Company has adequate
resources, an appropriate financial structure and suitable management
arrangements in place to continue in operational existence for the foreseeable
future and more specifically, that there are no material uncertainties
pertaining to the Company that would prevent its ability to continue in such
operational existence for at least 12 months from the date of the approval of
this half year financial report. For these reasons, they consider there is
reasonable evidence to continue to adopt the going concern basis in preparing
the accounts.
Directors' Responsibilities
The Board of Directors confirms that, to the best of its knowledge:
(i) the condensed set of financial statements contained within the
half yearly financial report has been prepared in accordance with FRS 104
'Interim Financial Reporting' and gives a true and fair view of the state of
affairs of the Company and of the assets, liabilities, financial position and
net return of the Company, as at 31st December 2024 as required by the UK
Listing Authority Disclosure and Transparency Rules 4.2.4R; and
(ii) the interim management report includes a fair review of the
information required by 4.2.7R and 4.2.8R of the UK Listing Authority
Disclosure and Transparency Rules.
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 the 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.
For and on behalf of the Board
Aidan Lisser
Chair
24th February 2025
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2024 31st December 2023 30th June 2024
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments
held at fair value through
profit or loss - 32,390 32,390 - 38,633 38,633 - 72,311 72,311
Net foreign currency
(losses)/gains - (58) (58) - 722 722 - 1,316 1,316
Income from investments 11,257 - 11,257 10,550 - 10,550 29,861 95 29,956
Interest receivable 199 - 199 569 - 569 1,108 - 1,108
Gross return 11,456 32,332 43,788 11,119 39,355 50,474 30,969 73,722 104,691
Management fee (1,369) (3,194) (4,563) (1,327) (3,097) (4,424) (2,660) (6,206) (8,866)
Other administrative expenses (780) - (780) (767) - (767) (1,563) - (1,563)
Net return before finance costs
and taxation 9,307 29,138 38,445 9,025 36,258 45,283 26,746 67,516 94,262
Finance costs - - - - - - (1) - (1)
Net return before taxation 9,307 29,138 38,445 9,025 36,258 45,283 26,745 67,516 94,261
Taxation (1,156) (4,177) (5,333) (995) (4,150) (5,145) (2,708) (6,586) (9,294)
Net return after taxation 8,151 24,961 33,112 8,030 32,108 40,138 24,037 60,930 84,967
Return per share (note 3) 0.75p 2.28p 3.03p 0.70p 2.81p 3.51p 2.12p 5.37p 7.49p
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or
discontinued in the period.
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/(loss) after taxation represents the profit/(loss) for the
period and also the total comprehensive income.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Called up Capital
share Share redemption Other Capital Revenue
capital premium reserve reserve reserves reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months ended 31st December 2024 (Unaudited)
At 30th June 2024 33,091 173,631 1,665 69,939 1,046,311 29,392 1,354,029
Repurchase of shares into Treasury - - - - (41,774) - (41,774)
Net return - - - - 24,961 8,151 33,112
Dividends paid in the period (note 4) - - - - - (14,249) (14,249)
At 31st December 2024 33,091 173,631 1,665 69,939 1,029,498 23,294 1,331,118
Six months ended 31st December 2023 (Unaudited)
At 30th June 2023 33,091 173,631 1,665 69,939 1,027,276 24,220 1,329,822
Repurchase of shares into Treasury - - - - (15,245) - (15,245)
Net return - - - - 32,108 8,030 40,138
Dividends paid in the period (note 4) - - - - - (12,265) (12,265)
At 31st December 2023 33,091 173,631 1,665 69,939 1,044,139 19,985 1,342,450
Year ended 30th June 2024 (Audited)
At 30th June 2023 33,091 173,631 1,665 69,939 1,027,276 24,220 1,329,822
Repurchase of shares into Treasury - - - - (43,014) - (43,014)
Proceeds from share forfeiture(2) - - - - 1,119 - 1,119
Net return - - - - 60,930 24,037 84,967
Dividends paid in the year (note 4) - - - - - (19,024) (19,024)
Forfeiture of unclaimed dividends(2) (note 4) - - - - - 159 159
At 30th June 2024 33,091 173,631 1,665 69,939 1,046,311 29,392 1,354,029
(1) This reserve forms the distributable reserve of the Company and is
used to fund distributions to investors.
(2) During the period, the Company undertook an Asset Reunification
Program to reunite inactive shareholders with their shares and unclaimed
dividends. In accordance with the Company's Articles of Association, the
Company exercised its right to forfeit the shares belonging to untraced
shareholders for a period of 12 years or more. These shares were 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.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
At At At
31st December 31st December 30th June
2024 2023 2024
£'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 1,345,108 1,346,894 1,356,705
Current assets
Debtors 2,119 2,982 5,337
Current assets investments(1) 363 6,480 4,844
Cash at bank(1) 172 109 679
2,654 9,571 10,860
Current liabilities
Creditors: amounts falling due within one year (700) (549) (1,004)
Net current assets 1,954 9,022 9,856
Total assets less current liabilities 1,347,062 1,355,916 1,366,561
Provision for Indian capital gains tax(2) (15,944) (13,466) (12,532)
Net assets 1,331,118 1,342,450 1,354,029
Capital and reserves
Called up share capital 33,091 33,091 33,091
Share premium 173,631 173,631 173,631
Capital redemption reserve 1,665 1,665 1,665
Other reserve 69,939 69,939 69,939
Capital reserves 1,029,498 1,044,139 1,046,311
Revenue reserve 23,294 19,985 29,392
Total shareholders' funds 1,331,118 1,342,450 1,354,029
Net asset value per share (note 5) 124.3p 118.2p 122.1p
(1) Cash at bank in the Statement of Financial Position has been
restated to exclude the investment in the JPMorgan USD Liquidity Fund of
£6,480,000 for the period ended 31st December 2023 and £4,844,000 for the
year ended 30th June 2024, and to disclose this separately as Current asset
investments to conform with the statutory format as required by the Companies
Act. There is no impact on other line items in the Statement of Financial
Position nor on the total current assets.
(2) The July 2024 Indian Budget announced an increase to the capital
gains tax (CGT) rates. With effect from 23rd July 2024, the short term CGT
rate was increased from 15% to 20% and the long term CGT rate was increased
from 10% to 12.5%. As these rates had not been enacted as at 31st December
2023 and 30th June 2024, CGT balances at those dates continued to be measured
at 15% and 10% for the short-term and long-term CGT rates, respectively. The
increased CGT rates have since been applied and reflected in the tax provision
as at 31st December 2024.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 31st December 30th June
2024 2023 2024
£'000 £'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 38,445 45,283 94,261
Adjustment for:
Net gains on investments held at fair value through
profit or loss (32,390) (38,633) (72,311)
Net foreign currency losses/(gains) 58 (722) (1,316)
Dividend income (11,236) (10,472) (29,878)
Interest income (199) (569) (1,108)
Scrip Dividends received as income (21) (78) (78)
Realised losses on foreign exchange transactions (43) (66) (180)
Realised exchange gains on JPMorgan USD Liquidity fund 21 586 1,055
(Increase)/decrease in accrued income and other debtors (6) 6 22
Decrease in accrued expenses (79) (127) (218)
Net cash outflow from operating activities before dividends,
interest and taxation (5,450) (4,792) (9,751)
Dividends received 12,745 11,765 26,535
Interest received 199 569 1,108
Overseas withholding tax recovered 559 (201) 351
Indian capital gains tax paid (765) (812) (4,182)
Net cash inflow from operating activities 7,288 6,529 14,061
Purchases of investments (36,221) (35,744) (161,350)
Sales of investments 80,215 38,567 188,054
Net cash inflow from investing activities 43,994 2,823 26,704
Dividends paid (14,249) (12,265) (19,024)
Repurchase of shares into Treasury (41,985) (15,566) (42,802)
Proceeds from share forfeiture - - 1,119
Refund of unclaimed dividends - - 159
Interest paid - - (1)
Net cash outflow from financing activities (56,234) (27,831) (60,549)
Decrease in cash and cash equivalents(1) (4,952) (18,479) (19,784)
Cash and cash equivalents at start of period/year(1) 5,523 24,866 24,866
Exchange movements (36) 202 441
Cash and cash equivalents at end of period/year(1) 535 6,589 5,523
Cash and cash equivalents consist of(1):
Cash at bank 172 109 679
Current asset investment in JPMorgan USD Liquidity Fund 363 6,480 4,844
Total 535 6,589 5,523
(1) The term 'cash and cash equivalents' is used for the purposes of the
Statement of Cash Flows, and represents Cash at bank and funds held in the
JPMorgan USD Liquidity Fund (shown as Current asset investments in the
Condensed Statement of Financial Position).
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 31st December 2024
1. Financial statements
The information contained within the condensed financial statements in this
half year report has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 30th June 2024 are
extracted from the latest published financial statements of the Company and do
not constitute statutory accounts for that year. Those financial statements
have been delivered to the Registrar of Companies and including the report of
the auditors which was unqualified and did not contain a statement under
either section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
The financial statements have been prepared under the historical cost
convention, modified to include fixed asset investments at fair value, and in
accordance with the Companies Act 2006, FRS 102 'The Financial Reporting
Standard applicable in the UK and Republic of Ireland' of the United Kingdom
Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of
Recommended Practice 'Financial Statements of Investment Trust Companies and
Venture Capital Trusts' (the revised 'SORP') issued by the Association of
Investment Companies in July 2022.
FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting
Council ('FRC') in March 2015 has been applied in preparing this condensed set
of financial statements for the six months ended 31st December 2024.
All of the Company's operations are of a continuing nature.
The accounting policies applied to this condensed set of financial statements
are consistent with those applied in the financial statements for the year
ended 30th June 2024.
3. Return per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2024 31st December 2023 30th June 2024
£'000 £'000 £'000
Return per share is based on the following:
Revenue return 8,151 8,030 24,037
Capital return 24,961 32,108 60,930
Total return 33,112 40,138 84,967
Weighted average number of shares in issue during the period (excluding shares
held in
Treasury) 1,093,972,381 1,144,084,836 1,133,870,299
Revenue return per share 0.75p 0.70p 2.12p
Capital return per share 2.28p 2.81p 5.37p
Total return per share 3.03p 3.51p 7.49p
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2024 31st December 2023 30th June 2024
Pence £'000 Pence £'000 Pence £'000
Dividends paid
Final dividend in respect of prior year 1.30 14,249 1.07 12,265 1.07 12,265
Interim dividend - - - - 0.60 6,759
Total dividends paid in the period/year 1.30 14,249 1.07 12,265 1.67 19,024
Forfeiture of unclaimed dividends over 12 years old(1) - - - - - (159)
Net dividends 1.30 14,249 1.07 12,265 1.67 18,865
(1) As a result of the Asset Reunification Program to reunite inactive
shareholders with their shares and unclaimed dividends, 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 in the period have been funded from the revenue reserve.
An interim dividend of 0.65p (2024: 0.60p) per share amounting to £6,962,000
(2024: £6,814,000), has been declared payable in respect of the six months
ended 31st December 2024. The interim dividend will be paid on 25th April 2025
to shareholders on the register at the close of business on 14th March 2025.
The ex-dividend date will be 13th March 2025.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2024 31st December 2023 30th June 2024
Net assets (£'000) 1,331,118 1,342,450 1,354,029
Number of shares in issue 1,071,039,001 1,135,693,085 1,109,226,510
Net asset value per share 124.3p 118.2p 122.1p
6. Fair valuation of instruments
The fair value hierarchy disclosures required by FRS 102 are given below.
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2024 31st December 2023 30th June 2024
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Level 1 1,345,108 - 1,346,836 - 1,356,647 -
Level 3(1) - - 58 - 58 -
Total value of investments 1,345,108 - 1,346,894 - 1,356,705 -
(1) The Level 3 investment relates to the Company's holdings in the
Russian stock Sberbank of Russia. The haircut applied for valuation is now
100%.
There have been no transfers between Levels 1, 2 or 3 during the period.
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2024 31st December 2023 30th June 2024
Equity Equity Equity
Investments Total Investments Total Investments Total
Level 3(1) £'000 £'000 £'000 £'000 £'000 £'000
Opening balance 58 58 58 58 58 58
Change in fair value of unquoted investment during the period/year (58) (58) - - - -
Total - - 58 58 58 58
(1) The Level 3 investment relates to the Company's holdings in the
Russian stock Sberbank of Russia.
As at 31st December 2024, the holding in the Russian stock Sberbank of Russia
has been written down to nil due to the prolonged conflict with Ukraine and
the sanctions imposed on Russia since 25th February 2022. For the previous
periods ending 31st December 2023 and 30th June 2024, the fair value of this
stock was determined by taking the live market price as at 25th February 2022
and applying a 99% reduction to the valuation.
7. Analysis of change in net cash/(debt)
As at Other As at
30th June non-cash 31st December
2024 Cash flows charges 2024
£'000 £'000 £'000 £'000
Cash at bank and current asset investments
Cash at bank 679 (507) - 172
Current asset investments(1) 4,844 (4,445) (36) 363
Net cash 5,523 (4,952) (36) 535
(1) JPMorgan USD Liquidity Fund, a AAA rated money market fund which
seeks to achieve a return in line with prevailing money market rates whilst
aiming to preserve capital consistent with such rates and to maintain a high
degree of liquidity.
JPMORGAN FUNDS LIMITED
24th February 2025
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
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 half year 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 Half Year Report will also shortly be available on the Company's website
at www.jpmemergingmarkets.co.uk (http://www.jpmemergingmarkets.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 IR XZLLLELLEBBD