Half-year Report
27/11/2024 14:00
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RNS Number : 8953N JPMorgan European Grwth & Inc PLC 27 November 2024
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN EUROPEAN GROWTH & INCOME PLC
HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2024
Legal Entity Identifier: 549300D8SPJFHBDGXS57
Information disclosed in accordance with the DTR 4.1.3
JPMorgan European Growth & Income plc reports financial performance for
the half-year ended 30th September 2024.
HIGHLIGHTS
Key financial highlights include:
• The total return on net assets with debt at fair value for six
months to 30th September was -1.3% vs the Benchmark return of -0.4%. The
return to shareholders was -1.1%
• Longer term performance remains strong. For three years ended
30th September 2024 the NAV total return was +29.1%, outperforming the
Benchmark's return of +18.8%. Share price return to shareholders, including
dividends, was +28.1%.
• For five years ended 30th September 2024 NAV total return was
+64.2% vs the Benchmark return of 42.9%. The return to shareholders was
+69.7%.
• The dividend for the six months to 30th September is 2.40p per
share, resulting in an estimated dividend yield of 4.8%. (Based on expected
dividends of 4.8p for the year ending 31st March 2025 divided by the share
price of 100.5p as at 30th September 2024.)
• As at 30th September 2024, the Company's top three overweight
sectors were Financials, Communication Services and Industrials.
Chair's Statement:
" The Company has marginally underperformed its benchmark in what remains a
tricky backdrop of lowering growth expectations and geopolitical
uncertainties. Despite this the Board believes the proposition of the Company
is robust and effectively implemented.
Our Investment Managers proceed with their tried and tested approach. Having
invested through many cycles they continue to operate a diversified portfolio,
owning positions in companies whose fortunes although not immune are agile
enough to remain resilient as we continue from 2024 into the next year."
Portfolio Managers' Report:
"Turning to the future the trade-off between economic growth and inflation
remains crucial. At the time of writing European companies have again beaten
expectations, albeit only by a small margin, in their third quarter earnings
reports which is encouraging.
While experience suggests investors should not focus too much on political
developments the outcome of elections in Germany in the spring and above all
the possibility of damaging tariffs introduced by the next US administration
are a concern. Nevertheless, we continue to find investment opportunities that
satisfy our criteria relating to valuation, quality and operational momentum."
CHAIR'S STATEMENT
Introduction
In this six month reporting period to the 30th September 2024 the Company has
marginally underperformed its benchmark in what remains a tricky backdrop of
lowering growth expectations and geopolitical uncertainties.
Despite this the Board believes the proposition of the Company is robust and
effectively implemented, allowing the Investment Managers the freedom to
navigate European markets, whilst delivering to our shareholders the best of
capital growth combined with a consistent income.
The devastating conflicts in Ukraine and Gaza continue with the latter
escalating into Lebanon and Iran and threatening to engulf the wider region.
At this time, there seems to be no end in sight to either tragedy. Global
stock markets have shrugged off any material effects from these events, but
geopolitical tensions, declining confidence levels and subdued domestic demand
have taken their toll on the growth of the European economies. Throw into this
mix the collapse of the German Government and a hung parliament in France and
it seems from a top down perspective, the Eurozone has a lot to power through.
However, there are factors that shine through the gloom. The European Central
Bank (ECB) has remained proactive with three 0.25% interest rate reductions in
June, September and October 2024 and headline inflation reduced to 1.8% in
September supporting higher economic growth expectations in the years to come.
Performance
Return on net assets (NAV) and return to shareholders
The Company's net assets underperformed its benchmark by -0.9% in the period
under review (debt at fair value). The total return on net assets was -1.3%
(debt at fair value), compared with the benchmark which recorded a total
return in sterling terms of -0.4%. Relative stock selection was the main
reason for this. In their Report below, the Investment Managers review in more
detail some of the factors underlying the performance of the Company as well
as commenting on the economic and market background over the period in
question. For an explanation of the calculation of the Company's NAV, please
see the Glossary of Terms and Alternative Performance Measures in the
Company's half year report and financial statements.
The total return to shareholders, which takes into account the movement of the
share price over the period, underperformed the benchmark delivering a return
of -1.1%.
Over three, five and 10 years the Company has outperformed its benchmark.
Dividends
One of the aims of the Company is to provide shareholders with a predictable
dividend income at a level that is consistent and frequent. This has been set
at 4% of the preceding year NAV payable in July, October, January and March.
In line with the above aim, in respect of the year ending 31st March 2025, the
Company has paid the first interim dividend of 1.20 pence per Ordinary share
and declared the second interim dividend of 1.20 pence per Ordinary share.
Between the end of this six month reporting period and the release of this
report, the Company's Board declared a third interim dividend of 1.20 pence
per Ordinary share.
The Board is expecting to declare the fourth interim dividend in February
2025. As was the case for the Company's dividends in respect of the year ended
31st March 2024, to the extent that brought forward revenue reserves are not
sufficient, dividends will be paid from distributable capital reserves for the
financial year ending 31st March 2025, as permitted by the Company's Articles.
Gearing
There has been no change in the Investment Manager's permitted gearing range,
as previously set by the Board, of between 10% net cash to 20% geared. At 30th
September 2024 the Company held a gearing level of 4.5% (31st March 2024:
4.5%).
Discounts, Share Issuance and Repurchase
During the period under review, the average discount across the Investment
Trust sector has continued to remain at elevated levels. This seems to have
been exacerbated by uncertainties over the UK budget with investors taking
opportunities to reallocate. The Board remain confident in the liquidity and
transparency of the markets in which your Company invests, however we remain
alive to dislocations beyond our comfort levels, addressing imbalances in the
supply of and demand for the Company's shares through a buy-back of shares.
The Board does not wish to see the discount widen beyond 10% under normal
market conditions (using the cum-income NAV with debt at fair value) on an
ongoing basis. The precise level and timing of repurchases is dependent on a
range of factors including prevailing market conditions.
In the period under review, 1,800,000 Ordinary shares were bought into
Treasury. From 1st October 2024 to 25th November 2024, 3,580,000 Ordinary
shares were bought into Treasury. No Ordinary shares were issued.
The Company's Ordinary share discount as at 30th September 2024 was 12.2% to
NAV with debt at fair value. The average discount of a peer group of five
companies as at the same date was 9.5%. On 25th November, 2024, the Company's
Ordinary share discount was 11.7%, which compares to an average discount of
the same peer group of 11.2% as at the same date, though this hides variation
in strategy and performance across the sector.
Board of Directors
As previously referred to in the Company's annual report, in line with the
Company's Board succession plan, Jutta af Rosenborg retired at the Company's
Annual General Meeting on 3rd July 2024 as Director and Audit Committee Chair
on reaching her nine-year tenure. Andrew Robson was appointed as the Company's
Audit Committee Chair on the same date. On behalf of the Board thanks were
given to Jutta af Rosenborg for the diligence, commitment and clear vision
that she provided to the Company during her tenure.
AIC Investment Week 2024 Nomination
The Company was again a nominee in the best investment company in the European
sector at the annual AIC Investment Week Award ceremony. When the Company won
the award in 2023 the judges had commended the Company's performance and the
benefits provided by its simplified and shareholder focused structure.
Outlook
We cannot be complacent as to the fragility of the geopolitical outlook. There
is a distinct possibility a widening escalation of conflict in the Middle
East means further uncertainty as to the direction of economic growth and
inflation if energy prices rise as a consequence. We must also acknowledge the
US Presidential elections, where the arrival of President Trump in the New
Year could bring significant change both to the world stage and to US economic
policy including a faster resolution to the conflicts pre-occupying us all.
Regardless of the backdrop, our Investment Managers proceed with their tried
and tested approach. Having invested through many cycles they continue to
operate a diversified portfolio, owning positions in companies whose fortunes
although not immune are agile enough to remain resilient as we continue from
2024 into the next year. As ever, we remain confident in their abilities to
deliver attractive returns to shareholders.
Rita Dhut
Chair
27th November 2024
INVESTMENT MANAGERS' REPORT
Market background
Following a strong finish to the Company's financial year ending in March,
European equity markets have ended the half year essentially flat over the six
months to the end of September. At the start of the period economic recovery
in the Eurozone appeared to be gaining momentum, amid faster increases in
business activity, new orders and strong employment data, while business
confidence hit a 27-month high. Service sectors continued to act as the key
pillar of strength, although there were also signs of a recovery in
manufacturing. Moreover, the unemployment rate in the Euro Area hit a fresh
record low of 6.4% in April 2024, down from 6.5% in each of the prior five
months. Despite an uptick in inflation the ECB started to cut interest rates
in June. Cyclical and small cap stocks performed well in this environment.
However, by late summer investors became increasingly concerned that their
optimism about European economic growth was proving premature with a slowing
services sector and little sign of a recovery in manufacturing. Weaker
economic indicators from the US and above all increasing concerns about the
ongoing slowdown in China led to a sharp pullback in the market. Companies
with significant exposure to China such as auto manufacturers and luxury goods
companies suffered. The technology sector also struggled particularly as
worries that the boom in Artificial Intelligence stocks was overblown.
Nevertheless, the announcement of various Chinese stimulus measure saw many of
the worst effected stocks rally sharply. By the end of September, the
Company's benchmark index had fallen -0.4%.
Portfolio Review
The Trust NAV (debt at fair value) returned -1.3% in the period under review,
underperforming its benchmark by -0.9%. Stock selection within Materials and
Pharmaceuticals offset positive stock selection within Capital Goods. Bekaert
in materials was impacted by lower wire rod pricing as well as weakness in
their rubber business due to a sluggish European automotive market. Novo
Nordisk underperformed following weaker than expected sales for Wegovy and
Ozempic and releasing clinical results showing its small molecule oral weight
loss drug caused neuropsychiatric side effects. On the positive side, not
owning Airbus benefitted performance as the company faced supply chain issues.
Prysmian, a cable maker, continues to benefit from electrification and
digitalization trends.
We added to positions in Financials, including Banco Santander and Deutsche
Boerse. Banco Santander is attractively valued, with operational performance
improving in the US and Brazil, and a renewed discipline on capital
allocation. Deutsche Boerse is guiding to above market organic growth with an
improving mix of higher quality recurring revenues. On the other end of the
cyclical-defensive spectrum, we added in the Utilities, Telecoms and Health
Care sectors. This included stocks such as Enel, Deutsche Telekom and Roche.
We reduced positioning in consumer exposed stocks such as LVMH, L'Oreal and
Nestle. Following, its takeover approach for Banco Sabadell, we reduced our
holding in BBVA recognizing the regulatory hurdles ahead. We also reduced
exposure in the Semiconductor and Autos sectors, with reductions in Infineon,
ASML, BMW and Mercedes-Benz. The net effect of our actions through this period
has been to reduce our exposure to China.
By the end of the half year, the Company's top three overweight sectors were
Financials, Communication Services and Industrials.
Market Outlook
Turning to the future the tradeoff between economic growth and inflation
remains crucial. At the time of writing European companies have again beaten
expectations, albeit only by a small margin, in their third quarter earnings
reports which is encouraging. While experience suggests investors should not
focus too much on political developments the outcome of elections in Germany
in the spring and above all the possibility of damaging tariffs introduced by
the next US administration are a concern. Nevertheless, we continue to find
investment opportunities that satisfy our criteria relating to valuation,
quality and operational momentum.
Alexander Fitzalan Howard
Zenah Shuhaiber
Tim Lewis
Investment Managers
27th November 2024
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its half year
report:
Principal Risks and Uncertainties
The Principal Risks and uncertainties faced by the Company fall into the
following broad categories: investment; operational; regulatory;
discount/premium to NAV; strategy; climate change; geopolitical and economic
concerns; artificial intelligence ('AI'). Information on each of these areas
is given in the Business Review within the Annual Report and Accounts for the
year ended 31st March 2024. A review of risks conducted for this report
concluded that except for a decrease in the pandemic risk and an increase in
the intensity of geopolitical risks, the principal risks and uncertainties
faced by the Company have not changed significantly.
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,
future cash flow projections, risk management policies, liquidity risk,
principal and emerging risks, capital management policies and procedures,
nature of the portfolio and expenditure projections and the economic and
operational impact of Russia's invasion of Ukraine other conflicts and
geopolitical tensions 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 relating to the Company that would
prevent its ability to continue in such operation existence for at least
12 months from the date of the approval of this half yearly 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 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
Rita Dhut
Chair
27th November 2024
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30th September 2024
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 2024 30th September 2023 31st March 2024
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on investments
and derivatives held at fair
value through profit or loss - (14,847) (14,847) - (12,354) (12,354) - 62,285 62,285
Foreign exchange losses on
JPMorgan EUR Liquidity Fund - (392) (392) - (82) (82) - (355) (355)
Net foreign currency gains - 1,804 1,804 - 334 334 - 716 716
Income from investments 12,169 182 12,351 12,026 - 12,026 16,572 129 16,701
Interest receivable and similar
income 275 - 275 128 - 128 523 - 523
Gross return/(loss) 12,444 (13,253) (809) 12,154 (12,102) 52 17,095 62,775 79,870
Management fee (385) (899) (1,284) (356) (832) (1,188) (714) (1,667) (2,381)
Other administrative expenses (397) - (397) (276) - (276) (640) - (640)
Net return/(loss) before finance
costs and taxation 11,662 (14,152) (2,490) 11,522 (12,934) (1,412) 15,741 61,108 76,849
Finance costs (178) (414) (592) (172) (402) (574) (345) (814) (1,159)
Net return/(loss) before taxation 11,484 (14,566) (3,082) 11,350 (13,336) (1,986) 15,396 60,294 75,690
Taxation (2,608) (27) (2,635) (1,048) - (1,048) (1,713) - (1,713)
Net return/(loss) after taxation 8,876 (14,593) (5,717) 10,302 (13,336) (3,034) 13,683 60,294 73,977
Return/(loss) per share: (note 3) 2.07p (3.40)p (1.33)p 2.38p (3.08)p (0.70)p 3.17p 13.97p 17.14p
All revenue and capital items in the above statement derive from continuing
operations.
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.
Net return/(loss) after taxation represents the profit/(loss) for the
period/year and also the total comprehensive income.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Called up Capital
share Share redemption Capital Revenue
capital premium reserve reserves(1) reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000
Six months ended 30th September 2024 (Unaudited)
At 31st March 2024 2,185 131,163 18,273 355,039 4,031 510,691
Repurchase of shares into Treasury - - - (1,876) - (1,876)
Net (loss)/return - - - (14,593) 8,876 (5,717)
Dividend paid in the period (note 4) - - - - (9,658) (9,658)
At 30th September 2024 2,185 131,163 18,273 338,570 3,249 493,440
Six months ended 30th September 2023 (Unaudited)
At 31st March 2023 2,185 131,163 18,273 299,679 3,946 455,246
Repurchase of shares into Treasury - - - (3,228) - (3,228)
Net (loss)/return - - - (13,336) 10,302 (3,034)
Dividend paid in the period (note 4) - - - - (4,556) (4,556)
At 30th September 2023 2,185 131,163 18,273 283,115 9,692 444,428
Year ended 31st March 2024 (Audited)
At 31st March 2023 2,185 131,163 18,273 299,679 3,946 455,246
Repurchase of shares into Treasury - - - (4,934) - (4,934)
Net return - - - 60,294 13,683 73,977
Dividends paid in the year (note 4) - - - - (13,598) (13,598)
At 31st March 2024 2,185 131,163 18,273 355,039 4,031 510,691
( )
1 These reserves form the distributable reserve of the Company and
may be used to fund distribution of profits to investors.
CONDENSED STATEMENT OF FINANCIAL POSITION
At 30th September 2024
(Unaudited) (Unaudited) (Audited)
30th September 30th September 31st March
2024 2023 2024
£'000 £'000 £'000
Non current assets
Investments held at fair value through profit or loss 515,713 459,127 533,691
Current assets
Derivative financial assets 80 216 218
Debtors 9,425 4,807 5,541
Cash and cash equivalents 13,071 23,980 15,074
22,576 29,003 20,833
Current liabilities
Creditors: amounts falling due within one year (3,329) (473) (392)
Derivative financial liabilities (48) (5) (833)
Net current assets 19,199 28,525 19,608
Total assets less current liabilities 534,912 487,652 553,299
Creditors: amounts falling due after more than one year (41,472) (43,224) (42,608)
Net assets 493,440 444,428 510,691
Capital and reserves
Called up share capital 2,185 2,185 2,185
Share premium 131,163 131,163 131,163
Capital redemption reserve 18,273 18,273 18,273
Capital reserves 338,570 283,115 355,039
Revenue reserve 3,249 9,692 4,031
Total shareholders' funds 493,440 444,428 510,691
Net asset value per share (note 5) 115.5p 103.1p 119.0p
For the 2024 year end, the 'Fixed Assets' sub-heading was changed to
'Non-Current Assets' to align to the adapted format under FRS 102. This change
did not result in any measurement changes.
CONDENSED STATEMENT OF CASH FLOWS
For the six months ended 30th September 2024
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 30th September 31st March
2024 2023 2024
£'000 £'000 £'000
Cash flows from operating activities
Total (loss)/return on ordinary activities (2,490) (1,412) 76,849
Adjustment for:
Net losses/(gains) on investments held at fair value through
profit or loss 14,847 12,354 (62,285)
Foreign exchange losses on JPMorgan EUR Liquidity Fund 392 82 355
Net foreign currency gains (1,804) (334) (716)
Dividend income (12,351) (12,026) (16,701)
Interest income (254) (115) (493)
Realised gains on foreign exchange transactions 14 6 25
Realised exchange (losses)/gain on JPMorgan EUR Liquidity Fund (153) 193 155
Decrease in accrued income and other debtors 16 22 2
Increase in accrued expenses 35 25 33
Net cash outflow from operations before dividends and interest (1,748) (1,205) (2,776)
Dividends received 10,405 10,842 13,858
Interest received 254 51 493
Overseas withholding tax recovered 502 153 370
Net cash inflow from operating activities 9,413 9,841 11,945
Purchases of investments and derivatives (72,128) (67,519) (129,717)
Sales of investments and derivatives 73,166 65,216 127,480
Settlement of foreign currency contracts 8 (533) 33
Net cash inflow/(outflow) from investing activities 1,046 (2,836) (2,204)
Equity dividends paid (9,658) (4,556) (13,598)
Repurchase of shares into Treasury (1,981) (3,141) (4,924)
Interest paid (577) (576) (1,159)
Net cash outflow from financing activities (12,216) (8,273) (19,681)
Decrease in cash and cash equivalents (1,757) (1,268) (9,940)
Cash and cash equivalents at start of period/year 15,074 25,523 25,523
Exchange movements (246) (275) (509)
Cash and cash equivalents at end of period/year 13,071 23,980 15,074
Cash and cash equivalents consist of:
Cash and short term deposits 263 421 4,698
Cash held in JPMorgan EUR Liquidity Fund 12,808 23,559 10,376
Total 13,071 23,980 15,074
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 30th September 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 31st March 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 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 30th September 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 31st March 2024.
3. Return/(loss) per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 30th September 31st March
2024 2023 2024
£'000 £'000 £'000
Return/(loss) per share is based on the following:
Revenue return 8,876 10,302 13,683
Capital (loss)/return (14,593) (13,336) 60,294
Total (loss)/return (5,717) (3,034) 73,977
Weighted average number of shares in issue 428,660,159 433,129,680 431,452,567
Revenue return per share 2.07p 2.38p 3.17p
Capital (loss)/return per share (3.40)p (3.08)p 13.97p
Total (loss)/return per share (1.33)p (0.70)p 17.14p
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 2024 30th September 2023 31st March 2024
Pence £'000 Pence £'000 Pence £'000
Dividends paid
Fourth interim dividend in respect of prior year 1.05 4,510 - - - -
First interim dividend 1.20 5,148 1.05 4,556 1.05 4,556
Second interim dividend - - - - 1.05 4,529
Third interim dividend - - - - 1.05 4,513
Total dividends paid in the period/year 2.25 9,658 1.05 4,556 3.15 13,598
All dividends paid and declared in the period have been funded from the
Revenue Reserve.
The Company's second interim dividend of 1.20p per share was paid on 1st
November 2024 at a cost of £5,128,000
5. Net asset value per share
The net asset value per Ordinary share and the net asset value attributable to
the Ordinary shares at the period/year end are shown below. These were
calculated using 427,369,449 (30th September 2023: 430,969,508; 31st March
2024: 429,169,449) Ordinary shares in issue at the period/year end (excluding
Treasury shares).
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 2024 30th September 2023 31st March 2024
Net asset Net asset Net asset
value attributable value attributable value attributable
£'000 pence £'000 pence £'000 pence
Net asset value - debt at par 493,440 115.5 444,428 103.1 510,691 119.0
Add: amortised cost of the Euro 50 million 2.69%
Private Placement Note with Metlife, repayable on
26th August 2035 41,472 9.7 43,224 10.0 42,608 9.9
Less: Fair Value of the Euro 50 million 2.69% Private
Placement Note with Metlife, repayable on
26th August 2035 (40,812) (9.6) (39,005) (9.1) (41,110) (9.6)
Net asset value - debt at fair value 494,100 115.6 448,647 104.0 512,189 119.3
6. Fair valuation of instruments
The fair value hierarchy analysis for financial instruments held at fair value
at the period end is as follows:
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 2024 30th September 2023 31st March 2024
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Level 1 515,713 - 459,127 - 533,691 -
Level 2(1) 80 (48) 216 (5) 218 (833)
Total 515,793 (48) 459,343 (5) 533,909 (833)
(1) Forward foreign currency contracts.
7. Analysis of changes in net debt
As at As at
31st March Exchange Other 30th September
2024 Cash flows movements non-cash charges 2024
£'000 £'000 £'000 £'000 £'000
Cash and cash equivalents
Cash 4,698 (4,428) (7) - 263
JPMorgan EUR Liquidity Fund 10,376 2,671 (239) - 12,808
15,074 (1,757) (246) - 13,071
Borrowings
Debt due after one year
- Metlife Private Placement (42,608) - 1,142 (6) (41,472)
Total net debt (27,534) (1,757) 896 (6) (28,401)
JPMORGAN FUNDS LIMITED
27(th) November 2024
For further information, please contact:
Paul Winship
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.jpmrealassets.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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