JPMorgan Emerg Mkts - Half-Year Results - 31 December 2023
23/02/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240223:nRSW1800Ea&default-theme=true
RNS Number : 1800E JPMorgan Emerging Mkts Invest Trust 23 February 2024
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN EMERGING MARKETS INVESTMENT TRUST PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS
ENDED 31ST DECEMBER 2023
Legal Entity Identifier: 5493001VPQDYH1SSSR77
Information disclosed in accordance with DTR 4.2.2
JPMorgan Emerging Markets Investment Trust plc (the 'Company') has today
announced its half year results for the period ending 31st December 2023.
Highlights
· Net asset value ('NAV') per share on a total return basis was 3.2%,
while total return to shareholders was 2.8%. This compares with a 4.4%
increase in the Benchmark, the MSCI Emerging Markets Index with net dividends
reinvested, in sterling terms.
· In the five years ended 31st December 2023, the Company has delivered
an annualised total return of 6.1% on a NAV basis, outpacing the Benchmark,
which returned 3.7% on the same basis.
· The Board has declared an interim dividend of 0.60 pence (2022: 0.58
pence), to be paid on 26th April 2024 to shareholders on the register as at
the close of business on 15th March 2024.
· The Board is introducing a five-year performance-related conditional
tender offer. This will allow shareholders to redeem a portion of their shares
at close to NAV if, over the next five years from the start of the next
financial year being 1st July 2024, the Company's audited NAV total return
does not exceed the total return of the Benchmark.
CHAIR'S STATEMENT
Introduction
The past half-year was a mixed one for emerging markets. China, the largest
economy within your Company's investable universe, remained weak. After
prolonged and stringent lockdowns, its post-pandemic recovery disappointed the
expectations of most investors, including ourselves, as severe challenges in
the property sector weighed on consumer sentiment. In response there have been
a number of interventions by the Chinese authorities in recent weeks. However
developments in other emerging markets have been more positive. For example,
India continues to grow strongly, supported by domestic reforms,
infrastructure spending and rising foreign investment, while Mexico and
Indonesia are enjoying foreign capital inflows as global businesses diversify
their supply chains. Meanwhile, initial excitement about artificial
intelligence ('AI') underscores strong prospects for AI-exposed technology
companies, with global leaders in Taiwan and Korea seen as clear
beneficiaries.
Investment Performance
Against this background, the Company's net asset value ('NAV') total return
over the six months ended 31st December 2023 was 3.2%, while the total return
to shareholders was 2.8%. This compares with a 4.4% increase in the benchmark,
the MSCI Emerging Markets Index with net dividends reinvested, in sterling
terms (the 'Benchmark' or 'MSCI Index'). Relative performance was adversely
impacted by exposure to India, the Company's largest overweight position,
where the returns of portfolio holdings lagged the market as a whole, despite
their strong fundamentals. The unexpected and continued weakness in Chinese
consumer demand also detracted from performance, as the Company's holdings in
Chinese consumer stocks derated. On the positive side, returns were supported
by the good performance of positions in South Africa, Argentina and Mexico.
While this six-month underperformance is disappointing, your Company's
investment strategy is focused on the long-term, and on this basis,
performance continues to be robust. The Company has delivered an average
annualised total return of 6.1% over the past five years and 8.1% over the
past ten years on an NAV basis, outpacing the MSCI Index, which returned 3.7%
per annum over five years and 5.4% over ten years, on the same basis.
The Company's recent performance is discussed in more detail in the Portfolio
Managers' Report below.
Continuation Vote
I am pleased to report that, at the Company's Annual General Meeting ('AGM')
held in November 2023, shareholders voted in favour of the Company's
continuation as an investment trust for a further three-year period. My fellow
Board members and I thank shareholders for their ongoing support.
Share Rating
During the period, the Company's shares traded at an average discount to NAV
of 9.5%. The discount ranged between 12.6% and 6.8% and ended the period at
10.2%.
The Board regularly considers the merits of buying back shares in order to
manage the level and volatility of the discount if 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 of the remaining
outstanding shares. In addition buybacks demonstrate confidence in the
portfolio and its long-term prospects to outperform.
Over the six-month period 14,936,280 shares (representing 1.3% of the
outstanding share capital) were bought back into Treasury at an average
discount of 10.6% at a cost of £15.2 million. 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. Share repurchases have continued since the
period end.
Introduction of Conditional Tender Mechanism
The Board remains focused on high standards of governance and operating in the
interests of shareholders. It notes the increased incidence of tenders and
other forms of redemption, which are additional mechanisms to assist with
discount management. Therefore, the Board has decided that it is now an
appropriate time to introduce a five-year performance-related conditional
tender offer ('tender offer'). This allows shareholders to redeem a portion of
their shares at close to NAV, subject to the performance of the Company over
that period.
Under the mechanism a tender offer will be made to shareholders for up to 25%
of the Company's outstanding share capital, at a price equal to the then
prevailing NAV less 2% if, over the next five years from the start of the next
financial year being 1st July 2024, the Company's audited NAV total return
does not exceed the total return of the Benchmark over the five-year period on
a cumulative basis.
If the tender offer is triggered, it will be subject to shareholder approval
at the relevant time and will also be conditional on shareholders approving
the continuation votes at the respective AGMs in 2026 and 2029 and would be
held as soon as practicable following the conclusion of the Company's 2029
AGM.
The introduction of the tender offer will not change the Board's current
approach to discount management which is outlined above. Nor will it affect
the Portfolio Managers' clear and consistent investment philosophy and
process, set out in detail in the Company's 2023 Annual Report.
Revenue and Dividends
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 may vary.
In respect of the financial year to 30th June 2023 an interim dividend of 0.58
pence per share and a final dividend of 1.07 pence per share were paid to
shareholders on 25th April and 10th November 2023 respectively, representing
an increase of 22.2% on the previous year.
Net revenue after taxation for the six months to 31st December 2023 was £8.03
million (2022: £7.47 million) and earnings per share were 0.70 pence (2022:
0.64 pence). The Board has declared an interim dividend of 0.60 pence (2022:
0.58 pence), to be paid on 26th April 2024 to shareholders on the register as
at the close of business on 15th March 2024. The ex-dividend date will be 14th
March 2024.
Board of Directors
The Board plans for succession to ensure it retains an appropriate balance of
skills, knowledge and diverse perspectives. To this end, the Board appointed
Alison Jefferis as a Non-Executive Director with effect from 1st January 2024.
Alison has direct and relevant experience within the investment sector,
particularly in the fields of marketing, communication and investor relations,
including digital engagement covering traditional and alternative asset
classes, listed and non-listed structures and retail, intermediary and
institutional investors. She most recently held the role of Head of Corporate
Affairs at Columbia Threadneedle Investments, a global asset manager, from
2015 to 2022.
In addition Zoe Clements succeeded Richard Laing in the role of Audit
Committee Chair at the conclusion of the Company's AGM in November 2023. As
outlined in my annual statement, it was Richard's intention to retire from the
Board in the first half of 2024; he duly stood down from the Board as of the
date of this statement. We thank Richard for his valued contribution to the
Company and wish him all the best for the future.
The Board can confirm that its current composition is compliant with all
applicable diversity targets for UK companies listed on the premium segment of
the London Stock Exchange. It is the intention that this will continue to be
the case.
Shareholder Communications
The Company is committed to engaging with its shareholders including those
with smaller holdings who invest via platforms. To support this goal, the
Company has developed a range of initiatives including email updates on the
Company's progress. 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/JMG-Sign-Up or by scanning the QR code in the margin.
In addition our Portfolio Managers both record webinars and video updates
which can be found on the Company's website. In particular I would draw your
attention to the recording of their detailed portfolio presentation delivered
at the AGM last November.
Outlook
The past three years have certainly been challenging. As highlighted in my
2023 annual statement, rising interest rates have put the Company's quality
growth strategy under pressure, by undermining the valuations of some
portfolio companies. At the same time, the Company has had to navigate through
a global pandemic, the Russia-Ukraine war and an insipid Chinese recovery.
However, looking ahead in 2024, there are reasons to be more optimistic:
emerging market economies are in general doing well, with stronger growth,
less inflation and lower debt than their western counterparts; meanwhile
falling global inflation should provide emerging market central banks with
scope to cut interest rates in due course; lower rates should, in turn, bring
relief to household and corporate balance sheets; the US dollar is down
considerably, which eases the interest burden on emerging market debt; and
China's economy is growing, albeit more slowly than previously expected, but
still faster than most developed economies. Furthermore, valuations have
fallen, and earnings are forecast to grow strongly in 2024/25. That said, in
political terms 2024 will be a busy and complex year, with the recent
Taiwanese and Indonesian presidential elections to be followed by elections in
India, Mexico and South Africa, as well as in the US and Britain.
In addition, the long-term case for investment in emerging markets remains
strong, thanks to their superior economic growth prospects, and favourable
demographics, which will continue to drive incomes and consumption. And there
are many high-quality, innovative, disruptive businesses in these markets
capable of capitalising on the various investment opportunities such economic
vibrancy generates.
While the Company's Portfolio Managers monitor short-term macroeconomic and
political developments, and longer-term structural themes, they do not attempt
to predict events or top-down trends, but instead concentrate on identifying
those companies that are best-placed to endure and grow regardless of the
macroeconomic or political environment. This time-tested strategy is supported
by a well-resourced and deeply experienced team of research analysts, many of
whom are located 'on the ground' in the markets in which the Company invests.
There may be periods, such as the past six months, when the Company
underperforms the Benchmark and you will note that Austin and John address
this directly in the last paragraph of their statement below. However the
strong long-term performance track record of outright gains and outperformance
attests to the strategy's effectiveness in maximising total returns over the
long run. The Board remains confident that this approach, allied with the
Managers' experience and expertise, will continue to reward investors going
forward. It is pleasing that others also share those conclusions. Hargreaves
Lansdown, one of the largest UK retail investment platforms, has recently
nominated your Company as one of its 'five funds to watch in 2024'.
In the meantime, we will continue to deploy our strategy, well summarised by
Austin in a recent article that you can find on our website, 'to invest in
businesses with strong finances, strong competitive advantages and ideally low
valuations, that can withstand whatever is thrown at them.'
Aidan Lisser
Chair
23rd February 2024
PORTFOLIO MANAGERS' REPORT
Introduction
As we review 2023 emerging markets can be divided into two groups: in the
first group, China; in the second group, everything else. For China, it was
another annus horribilis, with sustained falls in share prices leaving the
market down 16% in sterling terms, with declines continuing throughout the
year. For other countries in our benchmark index it was a pretty good year; in
aggregate their equity markets returned 14% in sterling terms throughout the
year, and were up almost 9% in the last six months alone. But given China's
significance in the asset class, the two combined to produce only a modest
outcome for the overall emerging market index: the year as a whole saw a
return of 4.4% for the benchmark index, and that return came entirely during
the latest six-month period.
Investment Performance and Approach
Against this background, we are disappointed to report that over the half year
under review the Company's net asset value ('NAV') total return lagged the
benchmark index, rising by just under 3.2%. To explain this, we need look no
further than the Company's two most significant markets in terms of
investment, India and China. We have more money invested in India, at just
under a quarter of the total portfolio, than any other country; this has been
the right investment destination, but our larger investments there have failed
to keep pace with an increasingly euphoric stock market. Equity market returns
in the last six months in India have been boosted by rising valuations as
investor enthusiasm has mounted, and while some of the Company's investments
have participated in this re-rating, others have not. Some of our larger
investments in India are exporters, especially of IT services, and these
companies depend not on the Indian economy, but on global business conditions,
which have been more subdued. Meanwhile, HDFC Bank is digesting its merger
with its parent HDFC Ltd, and while this should prove a temporary phase,
investors in India have looked elsewhere for exposure to the strong domestic
economy that country is enjoying. In China, which now accounts for one sixth
of your portfolio, the slowdown in the economy and continued regulatory
uncertainty have weighed upon the share prices of most of our investments,
with our exposure to the consumer sector proving particularly costly. As
consumer confidence has declined, we have seen down-trading and enhanced
competition across the consumer sector in China, from e-commerce to consumer
products, resulting in margin pressure for several of our investments. We have
a marginally lower allocation to China than our benchmark index, though
clearly in retrospect an even more negative stance would have been
appropriate.
The drag on the entire asset class from China threatens to obscure the fact
that other emerging markets have come through a challenging few years in
relatively good economic shape. Governments in emerging markets offered less
fiscal support during the pandemic than many developed countries, but also
avoided the consequent build-up of sovereign debt; and when inflation
pressures mounted their central banks were generally far more decisive,
meaning that they now have scope to reduce interest rates and help domestic
demand. That is not a bad backdrop for domestic business profits and for
growth. If it combines with a global cycle in which developed economies avoid
recession or see only a mild downcycle, then we may look forward to a period
in which export businesses in emerging markets can expect some improvement in
customer demand, while at the same time domestically-focused companies also
see easier monetary conditions and a potential cyclical recovery. That would
be a more favourable combination of circumstances than we have seen for
several years. Your Company's principal exposures remain in financial services
and consumer companies, both geared to domestic economic conditions, and
technology, where emerging markets companies are essential suppliers to the
global demand for hardware and software services.
Finally, a word on our investment approach. We are keenly aware that recent
relative performance has dipped below the long-term outcomes achieved for
shareholders. There are several reasons for this, some to do with the wider
market environment, some to do with our own judgements. No fund manager should
expect to be able to produce outperformance in every market environment or
every period; but when we look at the last few years we should not use the
change in market conditions as an excuse. We firmly believe that our
investment process, developed and tested over the last three decades, will
produce good results in the future, as it has in the past. Our challenge is,
as ever, to continue to take informed risks by investing in the best companies
we can find, while avoiding excessive valuations. Our focus remains resolutely
long term, and our turnover low. Where we conclude that our investment theses
will not work out, we make changes; but if we own strong companies, we stick
with them, and shareholders should expect that we continue to do so.
Austin Forey
John Citron
Portfolio
Managers
23rd February 2024
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 2023 ('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 2023 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
23rd February 2024
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2023 31st December 2022 30th June 2023
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 - 38,633 38,633 - 14,026 14,026 - (10,303) (10,303)
Net foreign currency
gains/(losses) - 722 722 - 942 942 - (2,310) (2,310)
Income from investments 10,550 - 10,550 9,971 - 9,971 28,130 - 28,130
Interest receivable 569 - 569 843 - 843 2,299 - 2,299
Gross return/(loss) 11,119 39,355 50,474 10,814 14,968 25,782 30,429 (12,613) 17,816
Management fee (1,327) (3,097) (4,424) (1,532) (3,575) (5,107) (3,082) (7,190) (10,272)
Other administrative expenses (767) - (767) (648) - (648) (1,456) - (1,456)
Net return/(loss) before
taxation 9,025 36,258 45,283 8,634 11,393 20,027 25,891 (19,803) 6,088
Taxation (995) (4,150) (5,145) (1,169) (3,293) (4,462) (3,294) (4,708) (8,002)
Net return/(loss) after
taxation 8,030 32,108 40,138 7,465 8,100 15,565 22,597 (24,511) (1,914)
Return/(loss) per share (note 3) 0.70p 2.81p 3.51p 0.64p 0.69p 1.33p 1.94p (2.11)p (0.17)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 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
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 period (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
Year ended 30th June 2023 (Audited)
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 - - - - (21,153) - (21,153)
Net (loss)/return - - - - (24,511) 22,597 (1,914)
Dividend paid in the year (note 4) - - - - - (16,417) (16,417)
At 30th June 2023 33,091 173,631 1,665 69,939 1,027,276 24,220 1,329,822
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
2023 2022 2023
£'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 1,346,894 1,323,386 1,311,009
Current assets
Debtors 2,982 2,514 5,074
Cash and cash equivalents 6,589 50,531 24,866
9,571 53,045 29,940
Current liabilities
Creditors: amounts falling due within one year (549) (182) (999)
Net current assets 9,022 52,863 28,941
Total assets less current liabilities 1,355,916 1,376,249 1,339,950
Non current liabilities
Creditors: amounts falling due after more than one year (13,466) (8,713) (10,128)
Net assets 1,342,450 1,367,536 1,329,822
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 1,044,139 1,073,388 1,027,276
Revenue reserve 19,985 15,822 24,220
Total shareholders' funds 1,342,450 1,367,536 1,329,822
Net asset value per share (note 5) 118.2p 117.6p 115.6p
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 31st December 30th June
2023 2022(1) 2023
£'000 £'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 45,283 20,027 6,088
Adjustment for:
Net (gains)/losses on investments held at fair value
through profit or loss (38,633) (14,026) 10,303
Net foreign currency (gains)/losses (722) (942) 2,310
Dividend income (10,472) (9,971) (28,130)
Interest income (569) (843) (2,299)
Scrip Dividends received as income (78) - -
Realised (losses)/gains on foreign exchange transactions (66) (107) 123
Realised exchange gains on Liquidity fund 586 3,180 2,795
Decrease/(increase) in accrued income and other debtors 6 24 (15)
(Decrease)/increase in accrued expenses (127) (109) 289
(4,792) (2,767) (8,536)
Dividends received 11,765 10,818 23,963
Interest received 569 666 2,299
Overseas withholding tax (paid)/recovered (201) (173) 16
Capital gains tax paid (812) - -
Net cash inflow from operating activities 6,529 8,544 17,742
Purchases of investments (35,744) (25,349) (64,572)
Sales of investments 38,567 29,266 56,540
Net cash inflow/(outflow) from investing activities 2,823 3,917 (8,032)
Equity dividends paid (12,265) (9,683) (16,417)
Repurchase of shares into Treasury (15,566) (7,814) (20,899)
Net cash outflow from financing activities (27,831) (17,497) (37,316)
Decrease in cash and cash equivalents (18,479) (5,036) (27,606)
Cash and cash equivalents at start of year 24,866 57,700 57,700
Exchange movements 202 (2,133) (5,228)
Cash and cash equivalents at end of period/year 6,589 50,531 24,866
Decrease in cash and cash equivalents (18,479) (5,036) (27,606)
Cash and cash equivalents consist of:
Cash and short term deposits 109 650 737
Cash held in liquidity fund 6,480 49,881 24,129
Total 6,589 50,531 24,866
1 The presentation of the Cash Flow Statement, as permitted under FRS
102, has been changed so as to present the 'reconciliation of net return
before finance costs and taxation' to 'net cash inflow from operating
activities' on the Cash Flow Statement. Previously, this was shown by way of
note to the Cash Flow Statement. Other than consequential changes in
presentation of the certain cash flow items, there is no change to the cash
flows as presented in previous periods.
Analysis of change in net cash/(debt)
As at Other As at
30th June non-cash 31st December
2023 Cash flows charges 2023
£'000 £'000 £'000 £'000
Cash and cash equivalents
Cash 737 (628) - 109
Cash equivalents 24,129 (17,851) 202 6,480
Net cash 24,866 (18,479) 202 6,589
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 31st December 2023
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 2023 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 2023.
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 2023.
3. Return/(loss) per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2023 31st December 2022 30th June 2023
£'000 £'000 £'000
Return per share is based on the following:
Revenue return 8,030 7,465 22,597
Capital return/(loss) 32,108 8,100 (24,511)
Total return/(loss) 40,138 15,565 (1,914)
Weighted average number of shares in issue
(excluding shares held in Treasury) 1,144,084,836 1,166,901,335 1,162,832,611
Revenue return per share 0.70p 0.64p 1.94p
Capital return/(loss) per share 2.81p 0.69p (2.11)p
Total return/(loss) per share 3.51p 1.33p (0.17)p
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2023 31st December 2022 30th June 2023
£'000 £'000 £'000
Dividend paid
2023 final dividend of 1.07p (2022: 0.83p) 12,265 9,683 9,683
2023 interim dividend of 0.58p - - 6,734
Total dividends paid in the period/year 12,265 9,683 16,417
All dividends paid in the period have been funded from the revenue reserve.
An interim dividend of 0.60p (2023: 0.58p) per share amounting to £6,814,000
(2023: £6,734,000), has been declared payable in respect of the six months
ended 31st December 2023. The interim dividend will be paid on 26th April 2024
to shareholders on the register at the close of business on 15th March 2024.
The ex-dividend date will be 14th March 2024.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2023 31st December 2022 30th June 2023
Net assets (£'000) 1,342,450 1,367,536 1,329,822
Number of shares in issue 1,135,693,085 1,163,258,513 1,150,629,365
Net asset value per share 118.2p 117.6p 115.6p
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 2023 31st December 2022 30th June 2023
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Level 1 1,346,836 - 1,323,325 - 1,310,951 -
Level 3(1) 58 - 61 - 58 -
Total value of investments 1,346,894 - 1,323,386 - 1,311,009 -
1 The Level 3 investment relates to the Company's holding in the
Russian stock Sberbank of Russia.
There have been no transfers between Levels 1, 2 or 3 during the year.
Equity Equity Equity
Investments Total Investments Total Investments Total
Level 3(1) £'000 £'000 £'000 £'000 £'000 £'000
Opening balance 58 58 60 60 60 60
Change in fair value of unquoted investment
during the period/year - - 1 1 (2) (2)
Total 58 58 61 61 58 58
1 The Level 3 investment relates to the Company's holding in the Russian
stock Sberbank of Russia.
The price of this stock has been determined by taking the live market price as
at 25th February 2022 and applying a 99% haircut.
JPMORGAN FUNDS LIMITED
23rd February 2024
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://secureweb.jpmchase.net/readonly/https:/lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDIsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDA0MDUuMTk3NzA4MDEiLCJ1cmwiOiJodHRwczovL2RhdGEuZmNhLm9yZy51ay8jL25zbS9uYXRpb25hbHN0b3JhZ2VtZWNoYW5pc20ifQ.b7Q7NXHGRA8MjB_Ugl8Tv4JxhiU28TbcoNb04FTTMiY/br/77057565556-l)
.
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR VLLFLZLLBBBB