REG - JPMorgan Global Core JPM Glbl Core - JARU JPM Glbl Core - JARE - Strategic Investment Allocation Update

JPMorgan Global Core Real AssetsAnnouncement

25/06/2024 07:00

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RNS Number : 6806T  JPMorgan Global Core Real Assets Ld  25 June 2024

JPMORGAN GLOBAL CORE REAL ASSETS LIMITED

 

STRATEGIC INVESTMENT ALLOCATION UPDATE

 

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.

 

Legal Entity Identifier: 549300D8JHZTH6GI8F97

 

JPMorgan Global Core Real Assets Limited ("JARA" or the "Company"), the
diversified global infrastructure, transportation and real estate investment
company, listed on the London Stock Exchange in September 2019. As the
Company's five-year anniversary approaches, the Company has taken the
opportunity to review its allocations to target sectors and capital
allocation, continuing a process which commenced in the past financial year.

 

JARA provides diversified exposure to the predictable, long term and
non-correlated cash flows often associated with Core Real Assets, through the
JPMorgan Asset Management ("JPMAM" or the "Investment Manager") Platform.

 

JARA's portfolio exposures are managed within the Company's investment
restrictions, incorporating strategic allocation priorities, liquidity
conditions and available investment opportunities. Following a recent review
of these exposures by the Board and the Investment Manager, it is proposed
that further adjustments be made to the portfolio's targeted exposures
following this year's Annual General Meeting ("AGM"), with the objective of
achieving an increase in allocations to the higher income-generating real
assets categories, such as infrastructure, transport, and mezzanine debt. At
the same time, concurrent reductions will be seen in other exposures, such as
private real estate. The changes, which would not be expected to introduce an
enhanced level of risk to the portfolio, are designed to improve the yield
profile, whilst keeping a similar long-term total return.  The range for
strategy allocation is expected to remain unchanged.

 

The implementation timeline and target exposures will be governed by various
factors, including the timing of redemption receipts from underlying
investment vehicles, market conditions, investment performance, and the number
of shares that the Company repurchases.

 

 

 Strategy                      Range for Strategy  Current exposure  Target exposure***

Allocation

                   (% of NAV as at
                               (% of Assets)**

                                                   31 May 2024)
 Global Infrastructure Assets  10 - 30%            20.9%              24.5%
 Global Transport Assets       10 - 30%            20.7%             24.5%
 US Core Real Estate           20 - 50%            18.2%             12.5%
 APAC Core Real Estate                             15.8%             12.5%
 Global Liquid Real Assets     0 - 30%             14.9%             15%
 Other Real Assets*            0 - 30%             7.5%              10.0%

 

*Other real assets may include U.S. real estate mezzanine debt and other real
assets strategies.

**The NAV percentage allocation restriction for each real asset strategy does
not take into account indirect exposure to real asset strategies through the
Company's investment in global liquid real assets. The above table does not
take into account cash or cash equivalent, which has a 0 - 10% range for
strategy allocation, ~2%  on 31 May 2024, and 1% in the new target exposure.

***Target exposures are subject to change and will be impacted by the factors
outlined above.

 

In addition, the Liquid Real Assets Strategy exposure has been re-weighted
towards infrastructure and transport investments, thereby reducing the
Company's exposure to publicly listed REITs.

 

As part of the proposed re-weightings, and subject to the requisite approval
by the Financial Conduct Authority and the Company's shareholders at the AGM
in September 2024, the Company plans to amend its investment policy. This
would adjust the current investment restriction limiting investment (at the
time of investment) in the securities or other interests of any single company
or other entity, from 20% of the Company's Gross Asset Value to a maximum of
30% of the Company's Gross Asset Value where the relevant entity is a Private
Fund managed or advised by JPMAM.

 

Furthermore, the Company is cognisant of the benefits which buybacks can bring
in terms of NAV accretion, reduced discount volatility, provision of liquidity
to the secondary market and creating the potential for the discount to narrow
by changing the balance of demand and supply for the Company's shares. The
Board is pleased with the results of the present buyback programme in respect
of the period since the Company's August 2023 AGM, where the Company has
repurchased 11,887,814 shares (5.4% of the starting number of shares)
resulting in 1.3% accretion to the Company's NAV. The Company has therefore
determined that, in the event that the Company's shares continue to trade on a
material discount to NAV, it intends to continue to make use of available
liquidity to buy back shares, while also achieving the portfolio's key sector
exposures as outlined above.

 

 

25 June 2024

Emma Lamb

JPMorgan Funds Limited - Company Secretary

invtrusts.cosec@jpmorgan.com

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

 

David Yovichic

Tom Skinner

Investec Bank plc - Broker

Telephone: 020 7597 4000

 

Helen Tarbet / Henry Wilson

Buchanan - Financial PR

JARA@buchanancomms.co.uk

Telephone: 020 7466 5111

 

Notes

The Company aims to provide holders of the Ordinary Shares with a stable
income and capital appreciation, measured on a constant currency basis,
through exposure to a globally diversified portfolio of Core Real Assets in
accordance with the Company's investment policy.  The Company obtains
exposure to Core Real Assets through various real asset strategies, namely:
Global Infrastructure, Global Real Estate, Global Transport and Global Liquid
Real Assets. J.P. Morgan's Alternative Solutions Group has the primary
responsibility for managing the Company's portfolio.

 

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