REG - JPMorgan Global Core JPM Glbl Core - JARU JPM Glbl Core - JARE - MANAGED WIND-DOWN UPDATE

JPMorgan Global Core Real AssetsAnnouncement

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RNS Number : 4781N  JPMorgan Global Core Real Assets Ld  19 June 2025

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain.

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

 

JPMORGAN GLOBAL CORE REAL ASSETS LIMITED

("JARA" or the "Company")

 

MANAGED WIND-DOWN UPDATE

 

Legal Entity Identifier: 549300D8JHZTH6GI8F97

 

Second Compulsory Partial Redemption of Shares

 

In line with its revised investment objective and policy, pursuant to which
the Company's assets are being realised as part of a Managed Wind-down, the
Company is pleased to announce that it has now fully redeemed its holding in
the Mezzanine Debt Strategy and the majority of its holding in the
Infrastructure Strategy, which in aggregate represented 29.3% of the Company's
net assets as at 30 November 2024. The proceeds from these redemptions are
USD16.7m(1) and USD50.6m, respectively.

 

Following the receipt of these proceeds the Board is now preparing for a
second capital distribution to Shareholders by way of a compulsory partial
redemption of Shares, which is expected to occur in early Q3 2025, in line
with the timetable provided in the Company's circular dated 3 December 2024
(the "Circular"). A further announcement confirming the quantum and timing
will be made in due course.

 

Managed Wind-down Timetable Update

 

As noted in the Circular, the Company's remaining portfolio now comprises
illiquid strategies, which will take varying periods to be realised. The
timing of redemptions from illiquid assets is influenced by a range of
factors, which are outside the control of the Board and the Investment
Manager. These include prevailing redemption queues, transaction activity,
market conditions, exchange rates and commercial considerations at the
underlying strategy level, which determine the timing and sterling value of
the redemption receipts. In consequence, any estimates regarding the quantum
and timetable of redemptions are, and will continue to be, subject to
revision. They are, nonetheless, the Board's best estimates at this date.

 

The first five months of 2025 have been an exceptionally volatile period for
all financial markets, driven by a dramatic series of policy announcements
from the incoming US administration. This market volatility and consequential
shift in sentiment have introduced additional uncertainty into both the
economic and monetary policy outlook, both key sensitivities for some of the
real asset sectors.

 

At the time of the Circular, it was envisaged that the process of fully
realising the Company's portfolio and distributing the resultant proceeds to
Shareholders would be substantially completed by the end of 2026. But for the
reasons noted above, it is now expected that JARA's redemptions from its real
asset strategies will take longer than originally envisaged. The Board has
been notified that, based on the Investment Manager's latest estimates, by the
end of 2025 the Company should have realised and returned to Shareholders more
than 55%, and by the end of 2026 more than 80% of the assets which it held as
at the announcement of the Managed Wind-down proposals in December 2024, with
the balance of unredeemed investments being represented predominantly by real
estate holdings.

 

Given the market uncertainty, it is premature to provide a definitive
assessment of the remaining redemption timeline. The Board and Investment
Manager will continue to monitor developments and provide further updates as
appropriate, while at the same time exploring options for the acceleration of
the return of capital.

 

The Board continues to monitor the costs of operating the Company in its
current form and, with that in mind, the Company's listing will be maintained
for so long as the Directors believe it to be cost-effective and in the
interests of Shareholders.

 

Capitalised terms used in this announcement, unless otherwise defined, have
the same meanings as set out in the Circular.

 

 1  In accordance with its terms, 10% of the Company's gross proceeds held in
the Mezzanine Debt Strategy has been withheld for potential tax liabilities.
Once these liabilities are settled any remaining balance will be returned to
the Company.

 

19 June 2025

 

For Further Information

 

JPMorgan Funds Limited - Company Secretary

Emma Lamb / William Talkington

Telephone: 0800 20 40 20 or +44 1268 44 44 70

E-mail: jpmam.investment.trusts@jpmorgan.com
(mailto:jpmam.investment.trusts@jpmorgan.com)

 

 

Investec Bank plc  -  Broker

David Yovichic / Tom Skinner

Telephone: +44 (0) 20 7597 4000

 

 

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