JPMorgan Emerg Mkts - Half-Year Results - 31 December 2022
07/03/2023 07:00
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RNS Number : 0667S JPMorgan Emerging Mkts Invest Trust 07 March 2023
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN EMERGING MARKETS INVESTMENT TRUST PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS
ENDED 31ST DECEMBER 2022
Legal Entity Identifier: 5493001VPQDYH1SSSR77
Information disclosed in accordance with DTR 4.2.2
CHAIR'S STATEMENT
Introduction
In her final statement as Chair, published in September 2022, my predecessor
Sarah Arkle highlighted the challenges of the global environment including
higher inflation and interest rates, together with geopolitical concerns such
as the continuing war in Ukraine and tensions between the US and China. In
this, my first statement as Chair of your Company, I should note that these
challenges continue to have an impact on markets. However, I am pleased to be
able to report on a period of positive performance for your Company in both
absolute and relative terms.
Investment Performance
Although the Company's benchmark, the MSCI Emerging Markets Index with net
dividends reinvested (in sterling terms), retreated further since the
Company's financial year end, finishing the reporting period down -2.1%, the
Company's total return on net assets fared better and returned +1.3%. The
Company's share price total return for the period was +5.1%, reflecting a
welcome narrowing of the discount that the Company's shares trade at, relative
to their Net Asset Value ('NAV') per share. It is also pleasing to report that
the long-term outperformance of your Company has been sustained. Over five
years the cumulative total return to shareholders is +32.8%, against the
benchmark return of +4.8%.
The reporting period was a game of two halves: between 1st July to 30th
September 2022, our benchmark index fell -11.6% in US dollar terms, however,
it rebounded by +9.7% in US dollar terms over the following three months.
Taking account of sterling's volatility over the period, these quarters
translated into a six month benchmark total return of -2.1% for UK investors.
This marked reversal of fortunes for emerging market equities in Q4 2022 is
most welcomed and has continued into 2023. Your Investment Managers, Austin
Forey and John Citron, comment upon the factors driving this renewed optimism
for emerging markets, together with a review of performance and details of
changes made to the Company's portfolio over the reporting period in their
report which follows. In particular they note the significance of a weaker US
dollar and major COVID-19 policy changes in China.
Share Rating
At the end of the last financial year, the Company's shares traded at a 10.3%
discount (to the cum income net asset value), the discount having widened
substantially over the financial year in line with the experience of many
other investment trusts. Indeed, at the end of June 2022 the investment trust
sector as a whole (ex 3i Group plc and on a weighted basis) was trading at
approximately a 10.6% discount. Over the last six months however the
Company's discount has narrowed, closing the reporting period at 7.0%.
The Board regularly considers the merits of buying back shares in order to
manage the level and volatility of the discount and will buy back shares if
the discount is out of line with the peer group, markets are orderly and it is
in the best interests of shareholders to do so. As shares are only bought back
at a discount to the prevailing net asset value, share buybacks benefit
shareholders as they increase the net asset value per share. Over the six
month period 7,253,717 shares (representing 0.62% of the outstanding share
capital) were bought back into Treasury at an average discount of 10.4% at
a cost of £7.6 million. This compares to 17,153,866 shares that were bought
back in the fiscal year to 30th June 2022 and reflects the narrowing of the
discount over the period. 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.
Environmental, Social and Governance ('ESG')
Your Manager has long held the belief that companies which identify material
ESG risks and opportunities are a more attractive investment, able to deliver
superior returns over time and the consideration of ESG factors in the
evaluation of companies has long been a critical part of the Manager's
investment process. In more recent years, the integration of ESG has become
formalised and the application of JPMorgan Asset Management's proprietary
analysis adds further rigour to the process. Engagement with companies has
always been an important way for the Investment Managers to promote these
standards and principles and the dedicated emerging markets and Asia Pacific
investment team has conducted over 3,000 company meetings over the past year.
They are further supported by a team of over 30 sustainable investing
specialists. The Manager has recently published a document containing its
latest Investment Stewardship Priorities, which may be of interest to
shareholders. This can be found at:
https://am.jpmorgan.com/gb/en/asset-management/institutional/about-us/investment-stewardship/
(https://am.jpmorgan.com/gb/en/asset-management/institutional/about-us/investment-stewardship/)
At each Board meeting the Board reviews the portfolio for its ESG
characteristics versus the benchmark and its carbon intensity, both in terms
of absolute data and relative to the Index. While the Company is not described
as a 'sustainable' fund, the profile of the portfolio shows favourable ESG
characteristics, including a low carbon footprint compared against the
benchmark. The Company's MSCI ESG rating is 'A' and the Company is ranked
highly among the Lipper Peer Group. The Company publishes these ratings on a
quarterly basis and they can be found on the company's website in the
documents section.
Revenue and Dividends
In respect of the financial year to 30th June 2022 an interim dividend of 0.52
pence per share and a final dividend of 0.83p were paid to shareholders on
19th April and 18th November 2022 respectively. 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. For any
individual year, dividends received in sterling terms can fluctuate according
to the underlying earnings of the portfolio as well as changes in its
composition and of course currency movements. This means that the level of
dividends will vary.
Net revenue after taxation for the six months to 31st December 2022 was £7.47
million (2021: £4.44 million) and earnings per share were 0.64p (2021:
0.38p). The Board has declared an interim dividend of 0.58p (2021: 0.52p),
representing growth of 11.5%, to be paid on 25th April 2023 to shareholders on
the register at the close of business on 17th March 2023. The ex-dividend date
will be 16th March 2023.
Board of Directors
Sarah Arkle retired as the Chair and as a Director of the Company following
the Annual General Meeting on 9th November 2022. Sarah joined the Board in
2013 and served as a Director for nine years, the latter five as Chair. The
Board and the Company benefited greatly from Sarah's counsel, dedication and
leadership during her tenure and we wish her well for the future.
The Board notes the Hampton-Alexander recommendations and the FCA's new
Listing Rules concerning specific board diversity targets. The Board will be
reporting against these targets in the Company's 2023 Annual Report and
setting out future succession plans in more detail.
Shareholder Communications
We are developing a new initiative to provide email updates on the Company's
progress which could be especially helpful for investors who hold shares
through an investment platform and who may not otherwise have a direct line of
communication. If shareholders wish to sign up to receive these
communications, please visit https://tinyurl.com/JMG-Sign-Up
(https://tinyurl.com/JMG-Sign-Up) In addition our Investment Managers both
record webinars and video updates which can be found on the Company's website.
Outlook
2022 was a difficult year for emerging markets and for your Company. The
Russia-Ukraine conflict, COVID-19 resurgence in China and tightening US
monetary policy posed various challenges. However, your Company has
experienced several periods of volatility and uncertainty since its launch and
your Investment Managers have considerable experience in navigating through
such turbulence. Whilst the precise future direction of inflation and monetary
policy remains unclear, recent US dollar weakness and the reopening of China
after the COVID-19 restrictions have benefited emerging economies. Both these
factors could be tailwinds for emerging market equities, especially after the
large swathe of earnings downgrades seen last year. Meanwhile as a Board we
will continue to be watchful around geopolitical issues and indeed around the
possibility of future economic, political or regulatory disruption.
All that said, the Board is confident that emerging markets will continue to
provide a wide selection of opportunities for disciplined stockpickers, based
on the Investment Managers' approach of identifying high quality businesses
that can deliver long term, sustainable growth and supported by a highly
capable analyst and research team. Whilst there may be periods when this
approach underperforms our benchmark index, we believe that it will continue
to reward investors over the longer term.
Aidan Lisser
Chair
6th March 2023
INVESTMENT MANAGERS' REPORT
Market Review
2022 was not an easy year for investors, and that observation applies equally
to emerging markets. But we can report that the year ended on a rather more
positive note, and the rise in markets from the end of October onwards was
enough to leave our benchmark index down only marginally in sterling terms
over the six months to 31st December 2022. That is much better than things
looked at the end of October, when the MSCI Emerging Markets Index had fallen
10% from the end of June. The underlying swings in local share prices during
that period were actually larger than this, but were masked to some extent by
moves in sterling, which itself declined against many emerging market
currencies and against the US dollar in September and October before
recovering towards the end of the year.
Performance
The performance of your Company's portfolio against the asset class also
improved in the last six months; the net asset value total return over the
last six months was +1.3%, compared with -2.1% from the asset class as a
whole, so after a difficult first half of 2022, it is pleasing to be able to
report on a period of outperformance for this latest half year. Shareholders
will note also that the Company's share price did better still, rising by
+5.1% on a total return basis, as the discount to net asset value narrowed.
Signs of Recovery?
What accounted for this turnaround? Over the past year and more, two
macroeconomic factors have presented serious headwinds for emerging market
equities: a strengthening US dollar, and policy in China. As the Federal
Reserve raised US interest rates to combat inflation, other central banks
around the world found themselves doing the same. Although central bankers in
developing countries generally acted earlier and more sharply than their
developed world counterparts, this was not enough to stop the US dollar rising
to a level that was very high compared with historic levels. In simple terms,
a strong US dollar draws money to the United States and away from other parts
of the world, and this time was no exception. The United Kingdom suffered its
own version of exactly the same pattern, with sterling losing 12% against the
US dollar in August and September alone. But as the year drew to a close,
markets became hopeful that much of the monetary tightening in the US was
already done, and the US dollar began to weaken considerably, boosting
emerging market currencies and also relieving some of their own need to run
tighter monetary policy. That means easier monetary conditions, which should
in turn aid economic growth and corporate earnings.
The second major headwind for emerging markets has been China. For almost
three years, the Chinese government pursued a distinctive 'zero COVID-19'
policy, long after other countries have found a way to reopen their economies.
The stresses induced by this approach were evident not only in Chinese
macroeconomic data, which pointed to a much lower rate of growth in the
economy, but even more so in our meetings with individual companies. We talked
to one business which had a significant part of their salesforce caught in
lockdown, another whose workers were unable to reach factories, and another
which had a large number of their restaurants closed for extended periods.
Not surprisingly, this took a toll on business performance, and as Chinese
firms struggled to maintain profits, equity prices fell steeply. The more
entrenched this policy became, the harder it appeared for the government to
change course, regardless of the economic consequences. But eventually a
combination of popular discontent and economic necessity prevailed, and the
government changed its policy completely almost overnight. This produced a
surge in COVID-19 cases, but also a significant boost to the economic outlook,
and the Chinese equity markets responded strongly in the last couple of months
of the year. China is by far the largest single part of the overall emerging
market index, so this recovery in Chinese equities had a notable effect even
on the broader benchmark.
Portfolio Changes
Against this background of market volatility, we made few changes to your
Company's portfolio. It is worth noting, however, that we added to investments
in China as the period progressed. The new investments during the last six
months included Yili, the leading dairy products company in China, which forms
part of the portfolio's exposure to consumer demand as the economy reopens. We
also bought back into Greentown Service, a premises management company we have
owned before, and added to existing holdings across a number of industries
including branded spirits, software and healthcare. At the time, this felt
like a series of bad decisions: every new stock we added in China fell in
value almost from the moment we purchased it. However, this increase in
exposure did mean that we arrived at the low point in the market in early
November almost neutrally weighted in China when taken together with Hong
Kong. The natural outcome of our investment approach has long resulted in an
underweight allocation to China; but the decline in Chinese share prices over
the last couple of years brought a number of good businesses to acceptable
valuations, including those mentioned above, triggering some additions to the
portfolio and leading to a larger than usual allocation to that market. This
has helped the portfolio keep pace with the recovery in China and the overall
Index since the beginning of November 2022.
Outlook
The more optimistic note in markets has carried over so far into 2023, and
both of these main drivers of emerging equity markets, the US dollar and
Chinese economic re-opening, may yet have further to run: the developed world
faces a tough year economically, while emerging economies continue to grow,
and will be helped further by a recovery in China. While that will affect the
timing of some of the decisions we make in the Company's portfolio, it will
not alter our approach, which remains focused on identifying businesses able
to create value over a sustained period into the future.
Austin Forey
John Citron
Investment Managers
6th March 2023
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 2022 ('AFRS') 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 AFRS.
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 2022 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
6th March 2023
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2022 31st December 2021 30th June 2022
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on investments
held at fair value through
profit or loss - 14,026 14,026 - (60,246) (60,246) - (300,802) (300,802)
Net foreign currency gains - 942 942 - 629 629 - 6,561 6,561
Income from investments 9,971 - 9,971 7,922 - 7,922 23,043 - 23,043
Interest receivable 843 - 843 19 - 19 158 - 158
Gross return/(loss) 10,814 14,968 25,782 7,941 (59,617) (51,676) 23,201 (294,241) (271,040)
Management fee (1,532) (3,575) (5,107) (1,872) (4,369) (6,241) (3,537) (8,252) (11,789)
Other administrative expenses (648) - (648) (647) - (647) (1,346) - (1,346)
Net return/(loss) before
taxation 8,634 11,393 20,027 5,422 (63,986) (58,564) 18,318 (302,493) (284,175)
Taxation (1,169) (3,293) (4,462) (981) (9,622) (10,603) (2,326) (5,420) (7,746)
Net return/(loss) after
taxation 7,465 8,100 15,565 4,441 (73,608) (69,167) 15,992 (307,913) (291,921)
Return/(loss) per share (note 3) 0.64p 0.69p 1.33p 0.38p (6.23)p (5.85)p 1.36p (26.13)p (24.77)p
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 2022 (Unaudited)
At 30th June 2022 33,091 173,631 1,665 69,939 1,072,940 18,040 1,369,306
Repurchase of shares into Treasury - - - - (7,652) - (7,652)
Net return - - - - 8,100 7,465 15,565
Dividends paid in the year (note 4) - - - - - (9,683) (9,683)
At 31st December 2022 33,091 173,631 1,665 69,939 1,073,388 15,822 1,367,536
Six months ended 31st December 2021 (Unaudited)
At 30th June 2021 33,091 173,631 1,665 69,939 1,401,743 17,974 1,698,043
Repurchase of shares into Treasury - - - - (12,086) - (12,086)
Net (loss)/return - - - - (73,608) 4,441 (69,167)
Dividend paid in the period (note 4) - - - - - (9,812) (9,812)
At 31st December 2021 33,091 173,631 1,665 69,939 1,316,049 12,603 1,606,978
Year ended 30th June 2022 (Audited)
At 30th June 2021 33,091 173,631 1,665 69,939 1,401,743 17,974 1,698,043
Repurchase of shares into Treasury - - - - (20,890) - (20,890)
Net (loss)/return - - - - (307,913) 15,992 (291,921)
Dividend paid in the year (note 4) - - - - - (15,926) (15,926)
At 30th June 2022 33,091 173,631 1,665 69,939 1,072,940 18,040 1,369,306
(1) This reserve forms the distributable reserve of the Company and
may be used to fund distributions to investors.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
At At At
31st December 31st December 30th June
2022 2021 2022
£'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 1,323,386 1,568,198 1,313,276
Current assets
Debtors 2,514 1,660 4,203
Cash and cash equivalents 50,531 46,921 57,700
53,045 48,581 61,903
Current liabilities
Creditors: amounts falling due within one year (182) (179) (453)
Net current assets 52,863 48,402 61,450
Total assets less current liabilities 1,376,249 1,616,600 1,374,726
Creditors: amounts falling due after more than one year (8,713) (9,622) (5,420)
Net assets 1,367,536 1,606,978 1,369,306
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 1,073,388 1,316,049 1,072,940
Revenue reserve 15,822 12,603 18,040
Total shareholders' funds 1,367,536 1,606,978 1,369,306
Net asset value per share (note 5) 117.6p 136.4p 117.0p
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 31st December 30th June
2022 2021 2022
£'000 £'000 £'000
Net cash outflow from operations before
dividends and interest (note 6) (2,766) (6,499) (11,608)
Dividends received 10,817 7,648 18,579
Interest received 666 19 158
Overseas tax (paid)/recovered (174) (180) 93
Net cash inflow from operating activities 8,543 988 7,222
Purchases of investments (25,349) (73,563) (109,362)
Sales of investments 29,266 141,799 192,011
Settlement of foreign currency contracts - 85 98
Net cash inflow from investing activities 3,917 68,321 82,747
Dividends paid (9,683) (9,812) (21,670)
Repurchase of shares into Treasury (7,814) (13,026) (15,926)
Net cash outflow from financing activities (17,497) (22,838) (37,596)
Increase/(decrease) in cash and cash equivalents (5,037) 46,471 52,373
Cash and cash equivalents at start of period/year 57,700 510 510
Exchange movements (2,132) (60) 4,817
Cash and cash equivalents at end of period/year 50,531 46,921 57,700
Cash and cash equivalents consist of:
Cash and short term deposits 650 1,451 487
Cash held in JPMorgan US Dollar Liquidity LVNAV Fund 49,881 45,470 57,213
Total 50,531 46,921 57,700
RECONCILIATION OF NET DEBT
As at As at
30th June Exchange 31st December
2022 Cash flows movement 2022
£'000 £'000 £'000 £'000
Cash and cash equivalents
Cash 487 162 1 650
Cash equivalents 57,213 (5,199) (2,133) 49,881
Total 57,700 (5,037) (2,132) 50,531
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 31st December 2022
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 2022 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 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 2022.
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 2022.
3. Return/(loss) per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2022 31st December 2021 30th June 2022
£'000 £'000 £'000
Return per share is based on the following:
Revenue return 7,465 4,441 15,992
Capital return/(loss) 8,100 (73,608) (307,913)
Total return/(loss) 15,565 (69,167) (291,921)
Weighted average number of shares in issue (excluding shares held in Treasury)
1,166,901,335 1,182,428,601 1,178,582,565
Revenue return per share 0.64p 0.38p 1.36p
Capital return/(loss) per share 0.69p (6.23)p (26.13)p
Total return/(loss) per share 1.33p (5.85)p (24.77)p
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2022 31st December 2021 30th June 2022
£'000 £'000 £'000
Unclaimed dividends refunded to the Company(1) - (1) (1)
2022 final dividend of 0.83p (2021: 0.83p) 9,683 9,813 9,813
2022 interim dividend of 0.52p - - 6,114
Total dividends paid in the period/year 9,683 9,812 15,926
(1) Represents dividends which remain unclaimed after a period of 12
years and thereby become the property of the Company.
All dividends paid in the period have been funded from the revenue reserve.
An interim dividend of 0.58p (2022: 0.52p) per share amounting to £6,741,000
(2022: £6,114,000), has been declared payable in respect of the six months
ended 31st December 2022.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2022 31st December 2021 30th June 2022
£'000 £'000 £'000
Net assets (£'000) 1,367,536 1,606,978 1,369,306
Number of shares in issue 1,163,258,513 1,178,497,230 1,170,512,230
Net asset value per share 117.6p 136.4p 117.0p
6. Reconciliation of net return/(loss) before finance costs and
taxation to net cash outflow from operations before dividends and interest
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2022 31st December 2021 30th June 2022
£'000 £'000 £'000
Net return/(loss) before finance costs and taxation 20,027 (58,564) (284,175)
(Less capital return)/add capital loss before finance
costs and taxation (11,393) 63,986 302,493
Scrip dividends received as income - (51) (108)
Decrease/(increase) in accrued income and
other debtors 1,947 789 (1,728)
Decrease in accrued expenses (110) (253) (129)
Overseas withholding tax (1,253) (973) (2,617)
Management fee charged to capital (3,575) (4,369) (8,252)
Dividends received (10,817) (7,648) (18,579)
Interest received (666) (19) (158)
Realised (loss)/gain on foreign currency transactions (106) 37 163
Exchange gain on liquidity fund 3,180 566 1,482
Net cash outflow from operations before dividends and interest (2,766) (6,499) (11,608)
7. 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 2022 31st December 2021 30th June 2022
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Level 1 1,323,325 - 1,568,198 - 1,313,216 -
Level 3(1) 61 - - - 60 -
Total value of investments 1,323,386 - 1,568,198 - 1,313,276 -
(1) The Level 3 investment relates to the Company's holdings in the
Russian stock Sberbank of Russia.
31st December 2022 30th June 2022
Equity Equity
Investments Total Investments Total
£'000 £'000 £'000 £'000
Level 3
Opening balance 60 60 - -
Transfers into level 3 - - 14,052 14,052
Change in fair value of unquoted investment
during the year 1 1 (13,992) (13,992)
Total 61 61 60 60
JPMORGAN FUNDS LIMITED
6th March 2023
For further information, please contact:
Alison Vincent
For and on behalf of
JPMorgan Funds Limited
020 7742 4000
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
JPMORGAN ASSET MANAGEMENT (UK) LIMITED
ENDS
A copy of the Half Year Report has been 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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