REG - JPMorgan Global Core JPM Glbl Core - JARU JPM Glbl Core - JARE - Half-year Report
27/11/2024 07:00
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RNS Number : 7550N JPMorgan Global Core Real Assets Ld 27 November 2024
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL CORE REAL ASSETS LIMITED
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31ST AUGUST 2024
Legal Entity Identifier: 549300D8JHZTH6GI8F97
Information disclosed in accordance with the DTR 4.2.2
JPMorgan Global Core Real Assets Limited (the 'Company' or 'JARA'), the
diversified global infrastructure, transportation and real estate investment
company, announces its half year results for the six-months ended 31st August
2024.
Enquiries:
JPMorgan Global Core Real Assets Limited - Chairman Contact via Company Secretary
JPMorgan Funds Limited
William Talkington
Tel: +44 (0) 20 7742 4000
JPMorgan Funds Limited (Company Secretary)
Tel: 0800 20 40 20 or +44 1268 44 44 70
E-mail: invtrusts.cosec@jpmorgan.com
CHAIRMAN'S STATEMENT
Introduction
While this statement to introduce the Company's Interim Report covers the six
month period to 31st August 2024 (the 'Period'), perhaps the most important
developments have taken place in the weeks that followed our Annual General
Meeting ('AGM') of 3rd September 2024. The resolution regarding the
continuation of the Company put to shareholders at the AGM was rejected by
a significant margin, obliging the Board to enter a phase of consultation
before making recommendations to shareholders.
We announced on 5th November 2024 that your Board has taken the decision to
liquidate the Company. This followed many conversations with the Company's
largest shareholders on the options available, leading the Board to conclude
that it was in the best interests of shareholders as a whole to put forward
proposals for a managed wind-down of the Company (the 'Managed Wind-Down')
with a consequent return of capital. Given that JARA's shares had, prior to
the continuation vote, been trading at a significant discount to NAV, this
offers the prospect of the realisation of value for shareholders.
This decision was not made lightly. As I have reported in previous statements,
since inception in 2019 the Company has faced challenging macroeconomic
conditions, including inflation, leading to higher interest rates, and major
disruptions to the sectors in which JARA invests. The Company's early days
were blighted by the Covid-19 pandemic and, since February 2022, the world has
been living with the consequences of Russia's full-scale invasion of Ukraine.
We were also confronted by reduced market liquidity, a change in investor
appetite for real assets and the widest gap for half a century between
underlying asset values and share prices in the investment trust sector, known
colloquially as the "discount". These factors combined proved too challenging
for JARA.
Managed Wind-Down
Implementation of the Managed Wind-Down will require shareholder approval to
amend the Company's investment objective and policy. A circular is being
worked upon and will be published early in December, with further details on
the proposals for a Managed Wind-Down and a date for an Extraordinary General
Meeting later that month. Following receipt of the required approvals, the
Company will conduct an orderly realisation of its assets, and the Investment
Manager will effect redemption requests to the relevant underlying private
funds. In certain cases, where it is permissible to do so ahead of receiving
shareholder approval, redemption requests have already been lodged.
The Board is aware that shareholders are eager to understand the likely timing
and quantum of future capital distributions. Based on the current estimates by
the Investment Manager, it is envisaged that approximately 50 - 60% of the
Company's portfolio could be liquidated by the end of Q2 2025, with the
remaining redemptions expected to be satisfied over the following 12 months.
The redemption requests will be satisfied on a best-efforts basis and there is
no guarantee that this estimated timeline will be achieved, as it is
contingent on the liquidity provided by the underlying private funds in
satisfying redemption requests. These may be in a queue and, by extension, may
well be affected by market conditions. The proceeds to be received by the
Company will be determined by the net asset value of the underlying vehicles
prevailing at the time that each redemption is settled.
In addition to the assets held within the private funds, the Company also has
approximately 15% invested in listed real assets and other liquid securities
that are easily realisable. Subject again to shareholder approval for the
Managed Wind-Down, JARA intends to sell these listed assets and return capital
to shareholders at the earliest opportunity, while leaving sufficient
liquidity for the Company's business.
The Board is mindful of the costs incurred in the running of the Company
whilst it is in Managed Wind-Down and will aim to complete this process in the
most cost-effective manner.
Performance
JARA's return on net asset value ('NAV') for the Period was -1.3%, primarily
attributable to the adverse impact of the weakening of the U.S. dollar against
Sterling. The Company's return to shareholders of +15.9% over the Period was
more favourable. It is notable that since the Period end, and particularly
since the re-election of President Trump, the US dollar has strengthened
significantly against Sterling.
The Investment Manager's Report reviews the Company's performance and gives a
detailed commentary on the investment strategy and portfolio performance over
the Period.
Revenue and Dividends
During the Period, the Board declared two interim dividends, totalling
2.10 pence per share (FY2023/2024 2.10 pence per share). On 16th October
2024, a third interim dividend of 1.05 pence per share was declared and will
be paid to shareholders on 29th November 2024. This will be JARA's last
dividend, and all further distributions will be made by way of returns of
capital.
Discount and Share Buybacks
Over the Period, the Company's discount narrowed, ending at -18.9%. The Board
has taken the decision to suspend buybacks of the Company's own shares.
The Board
As announced in the Company's 2024 Annual Report, Chris Russell will retire
from the Board and will not be replaced. We have agreed that he will step down
with effect from 30th November 2024 and I am most grateful to Chris for
agreeing to stay on past the AGM until such time as we were able to determine
the future or otherwise of the Company. On behalf of the Board, I would like
to take this opportunity to thank Chris for his considerable input during his
tenure with JARA. We have had many difficult issues to confront during the
five year life of JARA and Chris's wise counsel has proved invaluable.
Stay Informed
The Company will continue to release monthly NAVs to the market, as well as
quarterly NAVs with more detailed commentary at the end of May, August,
November and February, all via the London Stock Exchange's Regulatory News
Service. The monthly NAVs contain the latest pricing for the liquid strategy
and exchange rates, with the private strategies being priced on a quarterly
basis.
The Company will also continue to deliver email updates on the Company's
progress with regular views and updates on the Wind-Down. 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/JARA-Subscribe
(https://tinyurl.com/JARA-Subscribe) .
John Scott
Chairman
26th November 2024
INVESTMENT MANAGERS' REPORT
As reported in the Chairman's Statement the Company's continuation vote was
not passed by shareholders at this year's Annual General Meeting. Following
the Board's consultation with the Company's largest shareholders, the Board
concluded that it is in the best interests of shareholders as a whole to put
forward proposals for a managed wind-down of the Company. In view of this, our
report for the period looks to provide an update on performance and
positioning but does not include forward looking views or statements.
Review of Markets
The six months to 31st August 2024 have seen continued economic growth and a
moderation in of inflation. Over the second quarter of 2024, real GDP growth
increased to 3.0% in the U.S. following a 1.6% rise in the first quarter,
driven by increases in consumer spending, inventory investment and business
investment. The U.K.'s real GDP grew by 0.5% in the second quarter of 2024,
caused primarily by increases in services output, despite declines in
production and construction sectors. While labour markets remain strong, they
are showing signs of slowdown, with the pace of job creation decelerating
(including downward revisions to previous figures) and growth becoming more
uneven across sectors.
During this period, monetary policy in both the U.S. and the U.K. took a
dovish turn. The Federal Reserve maintained rates at 5.50% until the end of
the period but later reduced the rate at its September and November meetings.
Meanwhile, the Bank of England has now lowered rates by 0.5%, following cuts
at both its August and November meetings. It is expected that both central
banks will likely lower interest rates further in 2025. Inflation continued to
decline, with U.S. headline inflation falling to 2.6% year-on-year as of the
end of October, with recent prints showing the lowest inflation since 2021. In
contrast, U.K. headline inflation remained steady at 2.3% year-on-year. In the
U.S., inflation was primarily affected by housing costs, which rose by c.5%
over the year. In the U.K., services inflation has been the main factor
driving costs, although slowing wage growth and a modest rise in unemployment
may indicate a further slowdown. While inflation has generally eased, central
banks are expected to remain cautious for the remainder of the year, carefully
balancing economic growth, employment, and consumer prices.
During the period U.S. real estate continued its adjustment to the interest
rate environment, with easier times ahead. Transaction activity is increasing,
downward price adjustments are smaller, and credit activity is recovering.
Office space remains an outlier, but data shows that most vacancies are in
lower-quality assets, while newer buildings have experienced rent growth and
stable leasing activity. In the Asia-Pacific region, diverging monetary
policies, foreign exchange fluctuations, and consumer demand may cause
variance in near-term real estate performance. However, growth expectations
remain healthy, and fundamentals across most sectors are strong, highlighting
the need for diversification.
Global infrastructure assets remain resilient due to non-cyclical returns from
utilities and other long-term contracted assets. The increasing demand for
computing in an increasingly "intelligent" world is boosting demand for
utility assets, and valuations for publicly traded utility companies have
begun to reflect this. Geopolitical tensions, particularly ongoing conflicts
in the Middle East and Europe, continue to benefit transportation assets.
Whilst a slowdown in GDP growth and an expected increase in supply of LNG
carriers may put downward pressure on lease rates, yields are expected to
remain high over the next 1-2 years.
Performance Review
Over the reporting period to 31st August 2024, JARA's GBP NAV return was
-1.3%, inclusive of two dividends totalling 2.10 pence per share paid to
shareholders. Across both public and private allocations, and measured in
local currency, JARA's portfolio return was +3.6%. Private infrastructure and
transportation contributed +1.0% and +2.0% respectively, and listed real
assets added a further +1.5%. Private real estate equity detracted from NAV
performance with -0.9% and -0.2% returns from U.S. real estate and
Asia-Pacific real estate. Movement in foreign currency was a negative
contributor of -5.0%.
Return attribution (1st March 2024 to 31st August 2024)
Please see the full Half Year Report for graphics illustrating the return
attribution.
Infrastructure performance remains robust amid strong deal flow and strategic
mergers and acquisitions across the portfolio. Additionally, new contracts,
slightly lower interest rates, and cost savings have enhanced valuations and
profitability of the underlying assets. Opportunities continue to arise from:
a) the significant investment needed for the energy transition, especially for
upgrading and replacing networks and systems b) closed-end funds seeking exit
opportunities c) corporates in need of additional capital.
The transportation sector's returns and income have remained high. The asset
class has benefited from disrupted trade routes caused by geopolitical
tensions near the Red Sea trade corridors, resulting in longer transit times
and increased leasing rates for maritime assets. Demand for LNG carriers
remains strong, driven by the effects of these conflicts, even as supply
begins to rise. While the introduction of new supply may reduce pricing in the
near term, the energy transition should serve as a longer-term tailwind for
these vessels. The focus remains on expanding the portfolio through new builds
and sector acquisitions, with multiple assets acquired in the last quarter
across aviation and maritime.
Whilst U.S. real estate equity was negative for the reporting period, in the
three months to 30th June 2024 it had its first quarter of positive
performance in almost two years. Easing capital markets, improved transparency
on the interest rate trajectory, and conservative valuations give us more
confidence that the worst is behind us. U.S. real estate debt had strong
performance, with floating rate spreads on mezzanine debt remaining at healthy
levels. Asia-Pacific real estate equity was slightly negative over the period,
given negative performance in certain markets such as Australia and New
Zealand.
Portfolio Positioning
As discussed in the annual report a medium term goal of the portfolio
management team has been to increase allocations to the higher
income-generating private real asset categories, such as infrastructure,
transport, and mezzanine debt. This is being funded from a reduction in
private real estate equity. At the end of the quarter, 50% of the portfolio
was allocated towards these income orientated asset classes, up from 46% last
year. Private real estate equity was 33% at the period end, reduced from 37%
last year.
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. Also, during the period, the
portfolio management team reviewed and adjusted the listed real asset
allocation removing listed global real estate securities.
Please see the full Half Year Report for graphics illustrating JARA's
allocation asset allocation by strategy and sub-sector as of 31st August
2024.
Sector Allocation (%)
Industrial / Logistics 16%
Residential 8%
Office 7%
Retail 4%
Other Real Estate 3%
Total Real Estate (private % / public %) 38% (33% / 6%)
Utilities 13%
Renewable Energy 6%
Conventional Energy 2%
Liquid Bulk Storage 1%
Fixed Transportation Assets 1%
Other Infrastructure 2%
Total Infrastructure (private % / public %) 25% (21% / 4%)
Maritime 12%
Energy Logistics 6%
Rolling Stocks 4%
Aviation 3%
Other Transportation 1%
Total Transportation (private % / public %) 26% (22% / 4%)
Real Estate Mezzanine Debt 8%
Other Real Asset Debt 2%
Other Real Assets (private % / public %) 10% (8% / 2%)
Total Invested Portfolio 98%
Source: J P. Morgan Asset Management. Data as of August 2024. Holdings, sector
weights, allocations and leverage, as applicable, are subject to change at the
discretion of the investment manager without notice. Numbers may not sum to
total invested portfolio due to rounding. Rolling stocks includes assets held
in the infrastructure strategy, which represents -1% of the portfolio. Cash
represents -2% of the total portfolio.
Geographical and Currency Exposure
54% 20% 26%
North America Europe (including 2% U.K) Asia-Pacific
58% 1% 22% 1% <1% 5% 5% 8%
USD CAD GBP EUR Other(1) JPY AUD Other(2)
Data as of 31st August 2024. Please note that the geographic allocation to
Global Transport has been split equally between North America, APAC, and
Europe. Totals may not add up to 100% due to rounding. FX exposure differs
from regional exposure due to currency hedged investments.
1 - Includes CHF (<1%), DKK (<1%), NOK (<1%), and SEK (<1%).
2 - Includes SGD (3%), NZD (2%), RMB (1%), HKD (<1%), and KRW (<1%).
Valuations
The Board notes that one of the broader market concerns is in relation to the
accuracy of private market NAVs. In view of this, the portfolio management
team continues to review transactional data in relation to the appraisal
(carrying) NAVs for JARA's indirect investments in private real assets. This
review was conducted on 25 transactions from 2Q 2022 to 2Q 2024 across U.S.
real estate, APAC real estate, and global infrastructure. It showed that exit
valuations were largely aligned with the appraisal values at the time of
disposal, with an average difference of approximately 3%. This is an
indication of the rigour of the valuation process which is undertaken for each
of JARA's strategies and their underlying assets. It is important to highlight
that this has occurred during a period of significant market uncertainty, most
notably in the real estate sector.
Investment Managers
Alternatives Solutions Group Investment Committee
Security Capital Research & Management Inc. and J.P. Morgan Alternative
Asset Management Inc.
26th November 2024
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its half year
report.
Principal and Emerging Risks
The principal and emerging risks faced by the Company fall into the following
broad categories: investment management and performance, operational,
regulatory, environmental and global. Information on each of these areas is
given in the Company's Strategic Report within the Annual Report and Financial
Statements for the year ended 29th February 2024.
The Board acknowledges that at the 2024 Annual General Meeting, the Company's
continuation vote did not pass, and has made the decision to place the Company
into a Managed Wind-Down. Please refer to the Chairman's Statement in the full
Half Year Report for more details.
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 during the period.
Going Concern
At the fifth Annual General Meeting held on 3rd September 2024, the Company,
in line with its Articles of Incorporation, was subject to a continuation vote
by its shareholders. The vote did not pass, indicating a lack of support for
the Company's ongoing operation in its current form. Consequently, the Board,
having consulted with the Company's largest shareholders and considered all
options available, has made the decision to place the Company into a managed
wind-down. Implementation of the managed wind-down will require shareholder
approval to amend the Company's investment objective and policy.
Notwithstanding the decision to place the Company into a managed wind-down
and the material uncertainty on going concern, the Directors have prepared the
interim financial statements on a going concern basis, focusing on the
Company's financial viability. They are required to assess whether the Company
has adequate resources to continue operations for at least 12 months. In
making this assessment, the Directors considered the Company's revenue
forecast and net cash position. The Company meets its liquidity needs through
cash resources and a significant portion of its portfolio (liquid real estate
securities) that can be quickly liquidated.
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 International
Accounting Standards 34 '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
August 2024, as required by the Disclosure Guidance 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 Disclosure Guidance 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
John Scott
Chairman
26th November 2024
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 31st August 29th February
2024 2023 2024
£'000 £'000 £'000
Losses on investments held at fair value through profit or loss (6,550) (13,920) (20,488)
Foreign currency losses (19) (105) (41)
Investment income 4,584 5,517 11,239
Interest receivable and similar income 51 39 84
Total loss (1,934) (8,469) (9,206)
Management fee(1) (266) (981) (709)
Other administrative expenses (388) (344) (705)
Loss before finance costs and taxation (2,588) (9,794) (10,620)
Finance costs (2) - -
Loss before taxation (2,590) (9,794) (10,620)
Taxation (667) (749) (1,259)
Net loss after taxation (3,257) (10,543) (11,879)
Loss per share (note 3) (1.56)p (4.81)p (5.49)p
(1)As reported in the 2024 Annual Report & Financial Statements, the
Directors consider that the indirect management fees and performance fee
(indirect fees), paid by the private collective funds ('schemes') and
reflected in the underlying net assets of the schemes, are not direct costs
paid by the Company. Consequently the indirect fees should not be included
within the expenses of the Company and have therefore been excluded from the
total expenses incurred by the Company for both the period ended 31st August
2024 and year ended 29th February 2024. This change has no effect on the
profit or loss or net assets of the Company as the indirect costs in the
Company's expenses were offset by an equal and opposite amount within gains on
investments. Hence no restatement has been made to the comparative period
ended 31st August 2023.
The Company does not have any income or expense that is not included in the
net return for the period/year. Accordingly, the 'Net return for the
period/year, is also the 'Total comprehensive income' for the period/year, as
defined in IAS1 (revised).
All Items in the above statement derive from continuing operations. No
operations were acquired or discontinued in the period/year.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Share Retained
premium earnings Total
£'000 £'000 £'000
Six months ended 31st August 2024 (Unaudited)
At 29th February 2024 219,278 (22,867) 196,411
Repurchase of shares into Treasury - (3,461) (3,461)
Net loss after taxation for the period - (3,257) (3,257)
Dividends paid in the period (note 4) - (4,375) (4,375)
At 31st August 2024 219,278 (33,960) 185,318
Six months ended 31st August 2023 (Unaudited)
At 28th February 2023 219,278 4,450 223,728
Repurchase of shares into Treasury - (1,096) (1,096)
Net loss after taxation for the period - (10,543) (10,543)
Dividends paid in the period (note 4) - (4,608) (4,608)
At 31st August 2023 219,278 (11,797) 207,481
Year ended 29th February 2024 (Audited)
At 28th February 2023 219,278 4,450 223,728
Repurchase of shares into Treasury - (6,356) (6,356)
Net loss after taxation for the year - (11,879) (11,879)
Dividends paid in the year (note 4) - (9,082) (9,082)
At 29th February 2024 219,278 (22,867) 196,411
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
At 31st August At 31st August At 29th February
2024 2023 2024
£'000 £'000 £'000
Assets
Non current assets
Investments held at fair value through profit or loss 183,334 202,997 192,122
Current assets
Debtors 301 1,060 1,080
Cash and cash equivalents 2,254 4,056 3,682
2,555 5,116 4,762
Liabilities
Current liabilities
Other payables (571) (632) (473)
Net current assets 1,984 4,484 4,289
Total assets less current liabilities 185,318 207,481 196,411
Net assets 185,318 207,481 196,411
Amounts attributable to shareholders
Share premium 219,278 219,278 219,278
Retained earnings (33,960) (11,797) (22,867)
Total shareholders' funds 185,318 207,481 196,411
Net asset value per share (note 5) 90.0p 95.2p 93.3p
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 2024 31st August 2023 29th February 2024
£'000 £'000 £'000
Cash flows from operating activities
Loss before taxation (2,590) (9,794) (10,620)
Deduct dividends received (4,543) (5,465) (11,133)
Deduct investment income - interest (41) (52) (106)
Deduct deposit and liquidity fund interest income (51) (39) (84)
Add interest expense 2 - -
Add indirect management fee - 603 -
Add performance fee - 7 -
Add losses on investments held at fair value through profit & loss 6,550 13,920 20,488
Add exchange losses on cash and cash equivalents 19 13 41
Increase/(decrease) in prepayments and accrued income 30 16 (2)
Increase/(decrease) in other payables 44 8 (92)
Taxation (667) (755) (1,265)
Net cash outflow from operating activities before dividends
interest and taxation (1,247) (1,538) (2,773)
Dividends received 5,299 5,410 11,043
Investment income - interest 34 54 104
Deposit and liquidity fund interest received 49 39 84
Interest expense (2) - -
Net cash inflow from operating activities 4,133 3,965 8,458
Investing activities
Purchases of investments held at fair value through profit or loss (7,843) (7,622) (49,387)
Sales of investments held at fair value through profit or loss 10,064 9,811 56,549
Net cash inflow from investing activities 2,221 2,189 7,162
Financing activities
Dividends paid (4,375) (4,608) (9,082)
Repurchase of shares into treasury (3,388) (1,018) (6,356)
Net cash outflow from financing activities (7,763) (5,626) (15,438)
(Decrease)/increase in cash and cash equivalents (1,409) 528 182
Cash and cash equivalents at the start of the period/year 3,682 3,541 3,541
Exchange movements (19) (13) (41)
Cash and cash equivalents at end of period/year(1) 2,254 4,056 3,682
1 Cash and cash equivalents includes liquidity funds.
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31st August 2024.
1. General information
The Board has made the decision to place the Company into a Managed Wind-Down.
The Company is a closed-ended investment company incorporated in accordance
with the Companies (Guernsey) Law, 2008. The address of its registered office
is Level 3, Mill Court, La Charroterie, St Peter Port, Guernsey GY11EJ.
The principal activity of the Company is investing in securities as set out in
the Company's Objective and Investment Policy.
The Company was incorporated on 22nd February 2019. It was admitted to the
premium listing category of the Official List of the Financial Conduct
Authority and to trading on the Main Market and had its first day of trading
on 24th September 2019.
The information contained within the condensed financial statements in this
half year report has not been audited or reviewed by the Company's auditor.
Investment objective
The Company will seek to provide shareholders with stable income and capital
appreciation from exposure to a globally diversified portfolio of core real
assets.
Investment policy
The Company will pursue its investment objective through diversified
investment in private funds or accounts managed or advised by entities within
J.P. Morgan Asset Management (together referred to as 'JPMAM'), the asset
management business of JPMorgan Chase & Co. These JPMAM Products will
comprise 'Private Funds', being private collective investment vehicles, and
'Managed Accounts', which will typically take the form of a custody account
the assets in which are managed by a discretionary manager.
Going concern
At the fifth Annual General Meeting on 3rd September 2024, the Company, in
line with its Articles of Incorporation, was subject to a continuation vote by
its shareholders. The vote did not pass, indicating a lack of support for the
Company's ongoing operation in its current form. Consequently, the Board,
having consulted with the Company's largest shareholders and considered all
options available, has made the decision to place the Company into a managed
wind-down. Implementation of the Managed Wind-Down will require shareholder
approval to amend the Company's investment objective and policy.
Notwithstanding the decision to place the Company into a Managed Wind-Down and
the material uncertainty on going concern, the Directors have prepared the
interim financial statements on a going concern basis, focusing on the
Company's financial viability. They are required to assess whether the Company
has adequate resources to continue operations for at least 12 months. In
making this assessment, the Directors considered the Company's revenue
forecast and net cash position. The Company meets its liquidity needs through
cash resources and a significant portion of its portfolio (liquid real estate
securities) that can be quickly liquidated.
The Board has therefore determined that it is appropriate to continue to
prepare these financial statements on a going concern basis.
2. Material accounting policy information
Basis of preparation
The Company's financial statements have been prepared in accordance with
International Financial Reporting Standards ('IFRS'), which comprise standards
and interpretations approved by the International Accounting Standards Board
('IASB'), the IFRS Interpretations Committee and interpretations approved by
the International Accounting Standards Committee ('IASC') that remain in
effect and the Companies (Guernsey) Law, 2008.
These financial statements have been prepared on a going concern basis in
accordance with IAS 1, applying the historical cost convention, except for the
measurement of financial assets including derivative financial instruments
designated as held at fair value through profit or loss ('FVTPL') that have
been measured at fair value.
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 29th February 2024.
3. Loss per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 31st August 29th February
2024 2023 2024
£'000 £'000 £'000
Net loss after taxation (3,257) (10,543) (11,879)
Weighted average number of shares in issue during the year 208,601,334 219,309,718 216,377,222
Loss per share (1.56)p (4.81)p (5.49)p
4. Dividends
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 2024 31st August 2023 29th February 2024
Pence £'000 Pence £'000 Pence £'000
Dividends paid
First interim dividend 1.05 2,207 1.05 2,304 1.05 2,304
Second interim dividend 1.05 2,168 1.05 2,304 1.05 2,304
Third interim dividend - - - - 1.05 2,247
Fourth interim dividend - - - - 1.05 2,227
Total dividends paid in the period 2.10 4,375 2.10 4,608 4.20 9,082
Dividend declared
A third interim dividend of 1.05p per share, amounting to £2,161,111 has been
declared payable on 29th November 2024 in respect of the year ending 28th
February 2025.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 31st August 29th February
2024 2023 2024
Shareholders' funds(1) (£'000) 185,318 207,481 196,411
Number of shares in issue 205,870,138 218,007,952 210,445,138
Net asset value per share 90.0p 95.2p 93.3p
1 Net assets are also referred to Shareholders' funds.
JPMORGAN FUNDS LIMITED
27th November 2024
For further information:
Emma Lamb,
JPMorgan Funds Limited - Company Secretary
0800 20 40 20 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 Report will shortly be submitted to the FCA's National
Storage Mechanism and will be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . It will also
shortly be available on the Company's website at www.jpmrealassets.co.uk
(http://www.jpmrealassets.co.uk/) where up-to-date information on the
Company, including the NAV and share prices, factsheets and portfolio
information can also be found.
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