REG - JPMorgan Asia G&I - Annual Financial Report
11/12/2025 07:00
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RNS Number : 0949L JPMorgan Asia Growth & Income PLC 11 December 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN ASIA GROWTH & INCOME PLC
FINAL RESULTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025
Legal Entity Identifier: 5493006R7BNJSKCB17
Information disclosed in accordance with the DTR 4.1.3
JPMorgan Asia Growth & Income plc ('JAGI' or the 'Company') reports its
annual financial results for the year ended 30th September 2025.
Highlights:
· NAV total return of +19.9% compared with +16.8% for the MSCI
Asia Pacific Index (the 'Benchmark' in sterling terms). Share price total
return of +23.9%.
· Three-year cumulative NAV total return of +46.3% compared with
+38.9% for the benchmark. Share price total return of +49.9%.
· Five-year cumulative NAV total return of +39.3% compared with
+31.2% for the benchmark. Share price total return of +28.6%.
· Ten-year cumulative NAV total return of +202.5% compared with
+154.3% for the benchmark. Share price total return of +223.2%.
· The Company continued its long-term track record, outperforming
the benchmark in seven out of the last ten financial years.
· Enhanced dividend policy was increased to 1.5% of NAV per
quarter, equating to a notional yield of 6% per annum effective March 2025.
· Total dividend of 23.6p per share for the 2025 financial year
(2024: 16.0p), representing a dividend yield of 5.4% based on the share price
at 30th September 2025.
· The Company repurchased 10.8 million shares during the year
(13.7% of issued share capital), increasing NAV per share by 5.8p.
The Chairman of JAGI, Sir Richard Stagg, commented:
"I am pleased to report the Company delivered a total return on net asset
value (NAV) of +19.9%, comfortably outperforming the benchmark return of
16.8%. This performance continues the Companies' robust long-term track
record, outperforming its benchmark in seven of our last ten financial years.
The Company continued to execute its long-term investment strategy, focusing
on quality growth and income opportunities across the region."
"Looking ahead, my fellow Board members and I agree with the Portfolio
Managers that the prospects for Asian economies appear somewhat brighter than
they were at the time of the Half Year Report. The Board is pleased with the
success of the partnership between Robert Lloyd and Pauline Ng. While, as
ever, geopolitical and market risks persist, the Board is confident in the
Portfolio Managers' ability to navigate these challenges and continue to
deliver attractive returns to shareholders. Our Company stands out for
delivering a superior, long-term returns and an enhanced dividend, rewarding
shareholders for their trust and commitment."
JAGI's Portfolio Managers', Robert Lloyd and Pauline Ng, commented:
"Tariffs aside, the outlook for 2026 seems more positive than it was at the
time of our Half Year Report. China's relatively strong growth should continue
to support activity across the region. Markets will gain further impetus from
widespread improvement in shareholder returns and from earnings growth driven
by Asia's position at the centre of the AI revolution. Furthermore, the rapid
development and penetration of AI should boost productivity and cut costs
across most sectors for years to come. And although unexpected volatility may,
at times, disturb this relatively upbeat scenario, it can also create
attractive investment opportunities that enhance returns over time."
Enquiries:
JPMorgan Asia Growth & Income plc
Investor Relations - Alexandra Ellaby, JPMorgan Funds Limited
E-mail: alexandra.ellaby@jpmchase.com (mailto:alexandra.ellaby@jpmchase.com)
Telephone: 0800 20 40 20 or +44 1268 44 44 70
Chairman's Statement
Performance and Market Background
I am pleased to present the Company's annual results for the year ended 30th
September 2025. During the year, the Company delivered a total return on net
asset value (NAV) of +19.9%, comfortably outperforming the benchmark return
of +16.8%, expressed in sterling terms. This performance continues our robust
long-term track record, with the Company outperforming the benchmark in seven
of our last ten financial years. Over this period, the portfolio delivered
cumulative returns of +202.5% - substantially ahead of the benchmark's
+154.3%.
The Board's focus is on ensuring the best possible returns for our investors
through:
• Strong and consistent performance, in particular outperforming the
Index.
• An enhanced dividend, which will be paying shareholders at least a yield
of 6% in our current financial year.
• Careful use of buybacks to prevent an excessive discount and preserve
NAV for shareholders.
• Taking advantage of the flexibility offered by a closed-end Trust to
gear where appropriate and to invest in smaller and less liquid companies
(which often have the best growth prospects in the medium term).
• Keeping our charges among the lowest in the sector.
There is more detail on these below.
Over the last year, the Company continued to execute its long-term investment
strategy, focusing on quality growth and income opportunities across the
region. The portfolio participated in the market upswing in the second half of
its financial year, benefiting from strong performances in China, Singapore,
Taiwan, and Korea, while Indonesia faced notable challenges.
The Portfolio Managers' report provides further detail on performance,
portfolio positioning, and the outlook for Asian markets.
Dividend Policy
The Board remains committed to delivering an attractive and sustainable income
to our shareholders. In 2016, the Company introduced a policy of paying a
regular, quarterly 'enhanced dividend' (funded from a combination of revenue
and capital). Since then (2016) the Company has paid out dividends worth
£136.7 million to our shareholders, while the NAV at the year-end was £323.8
million. Historically this dividend was set at 1% of the Company's NAV per
quarter or 4% per annum. Following a review, the enhanced dividend was
increased to 1.5% of NAV per quarter, equating to a notional yield of 6% per
annum, effective from March 2025. This is designed to differentiate the
Company from its peers and respond to evolving investor needs in a higher
interest rate environment, while also generating additional demand for our
shares. Dividends paid in respect of the entire 2025 financial year totalled
23.6 pence (2024: 16.0 pence). This represents a dividend yield of 5.4%, based
on the share price as at 30th September 2025. The initial shareholder response
to this change has been very positive.
Premium/Discount and Share Capital Management
The Board is closely focussed on the discount at which the Company's shares
trade. Our aim is to attract new investors through the suite of policies
described above, in order to support demand for our shares and thus narrow the
discount. We also use share buybacks, to help keep supply and demand in
balance and to maintain liquidity. During the financial year, we bought back
10.8 million shares (representing 13.7% of issued share capital). Share
buybacks increase the NAV per share of remaining shares (adding 5.8 pence per
share to the NAV during the review period). Since the end of 30th September
2025, the Company has bought back a further 709,104 shares.
The discount at which the Company's shares trade narrowed during the review
period, ending at 8.7%. Encouragingly, this is lower than the discount of
11.2% at the end of the last financial year and is within the Board's targeted
range of 8% to 10% in normal market circumstances. The discount is currently
7.92%.
Gearing
The Company maintained a cautious approach to gearing and had no loan facility
in place during the year. The Board continues to review debt arrangements, in
consultation with the Portfolio Managers and supports the use of contracts for
difference (CFDs) to enhance returns. This strategy was foreshadowed in the
last Annual Report. CFDs are a flexible, low-cost, capital-efficient
alternative to loan facilities and thus offer considerable advantages to the
Portfolio Managers. The Board will closely monitor the use and effectiveness
of this form of gearing.
As of 30th September 2025, the portfolio's net gearing stood at 5.2%, up from
4.0% at the Half Year end on 31st March 2025 and negligible at 30th September
2024, primarily due to increased use of CFDs. This modest amount of leverage
reflects the Portfolio Managers' generally positive view on the outlook for
Asian markets.
Board Succession
As previously announced, Ms Diana Choyleva stepped down from the Board
effective 4th August 2025. We would like to thank Diana for her valuable
contribution during her tenure and wish her well in her future endeavours.
Peter Moon will step down at the February 2026 AGM, marking the completion of
his nine-year tenure as a Director. Following the AGM, Kathryn Matthews will
succeed Peter as Senior Independent Director. The Board thanks Peter for his
valuable guidance and leadership during his tenure and extends its best wishes
for the future.
As foreshadowed in the Half Year Report, the Board is pleased to announce the
appointment of George William Edward Rogers (Will Rogers) and Bulbul Barrett
as Non-Executive Directors, effective 26th November 2025. Both new Directors
are independent, have no relationship with the Investment Manager and do not
hold shares in the Company.
Will Rogers is a qualified corporate lawyer with extensive experience advising
and brokering London-listed investment companies.
Bulbul Barrett has over 30 years' experience in Asian equities, with senior
roles at major financial institutions. She currently serves as a director on
other investment trusts.
The Board can confirm that its current composition is compliant with all
applicable diversity targets for UK companies listed on the Main Market of the
London Stock Exchange. It is the Board's intention that this will continue to
be the case.
The Manager and Costs
Through the remit of the Management Engagement Committee ('MEC'), the Board
has reviewed the Manager's performance and its fee arrangements with the
Company. Based upon its performance record and taking all factors into
account, including other services provided to the Company and its
shareholders, the MEC and the Board are satisfied that JPMF should continue as
the Company's Manager, and that its ongoing appointment remains in the best
interests of shareholders.
The Board is very pleased to note that the Company has one of the lowest, and
thus most competitive, ongoing charges in the sector, and it is committed to
ensuring this remains the case.
Adoption of new Articles of Association
The Company is proposing to adopt new Articles of Association which contain
provisions dealing with a potential situation whereby fewer directors than the
required minimum number are re-elected at an AGM. Resolution 16 seeks
shareholder approval for this amendment to be made to the Company's existing
Articles of Association with the adoption of the new articles. No other
amendments are being proposed at this time.
Stay Informed
The Company is very keen to engage with its shareholders, and to ensure that
all investors, but especially those with smaller holdings who invest via
platforms, are well-informed about the progress of their Company, its
performance and the market outlook. To support this goal, the Company has
stepped up its efforts to make this information more accessible, including via
email updates with regular news and views, as well as the latest performance
data. If you have not already signed up to receive these communications, the
Board would like to encourage you to opt in to these updates via
https://tinyurl.com/JAGI-Sign-Up (https://tinyurl.com/JAGI-Sign-Up) or by
scanning the QR code on page 13 of the 2025 Annual Report.
Annual General Meeting
The Company's Annual General Meeting will be held on Wednesday, 25th February
2026 at 11.00 a.m. at 60 Victoria Embankment, London EC4Y 0JP. The Investment
Managers will give a presentation to shareholders, reviewing the past year and
commenting on the outlook for the current year.
We look forward to seeing as many shareholders as possible at the AGM. For
shareholders wishing to follow the AGM proceedings, but choosing not to
attend, we will be able to welcome you through conferencing software. Details
on how to register, together with access details, will be available on the
Company's website: www.jpmasiagrowthandincome.co.uk
(http://www.jpmasiagrowthandincome.co.uk) , or by contacting the Company
Secretary at: jpmam.investment.trusts@jpmorgan.com
(mailto:jpmam.investment.trusts@jpmorgan.com) .
As is normal practice, all voting on the resolutions will be conducted by a
poll. Shareholders viewing the meeting via conferencing software will not be
able to vote on the poll. We therefore strongly encourage all shareholders,
and particularly those who cannot physically attend, to exercise their votes
in advance of the meeting by completing and submitting their form of proxy.
If you have any detailed or technical questions, it would be helpful if you
could raise them in advance with the Company Secretary at 60 Victoria
Embankment, London EC4Y 0JP or via the 'Ask a Question' link on the Company's
website.
Continuation Vote
At the Annual General Meeting ('AGM') of the Company held on 15th February
2023, an ordinary resolution was put to shareholders proposing that the
Company continue in existence for a further three-year period. This resolution
received the full support of voting shareholders, representing 99.97% of the
shares voted in favour of the continuation of the Company.
At the forthcoming AGM, an ordinary resolution will again be put to
shareholders that the Company continue in existence as an investment trust for
a further three-year period. The Board believes that the long-term outlook for
Asian markets is favourable and that the Investment Manager has the resources
and processes to continue to deliver good results for shareholders, as shown
by the Company's long-term performance. The Board believes that these
considerations, combined with the Company's ongoing efforts to attract new
investors and support, mean that the continuation of the Company is in the
best interests of all shareholders.
Outlook
Looking ahead, my fellow Board members and I agree with the Portfolio Managers
that the prospects for Asian economies appear somewhat brighter than they were
at the time of the Half Year Report. The risks to growth, inflation and
international trade relations posed by US tariffs remain, but Asian exporters
are already adapting by seeking alternative markets beyond the US. Regional
governments, notably in China and India, are also seeking to rebalance their
economies to reduce reliance on exports. China's policy initiatives to boost
domestic demand and support the property sector are especially welcome: and
there is the possibility of further stimulus in 2026.
Even without any such additional encouragement, Asian economies will continue
to grow more rapidly than their Western counterparts, assisted by the region's
leadership in semiconductor and other AI hardware manufacturing. Asian
businesses will also benefit from productivity gains and cost efficiencies
arising from the rapid and widespread adoption of artificial intelligence.
Finally, but of equal if not greater importance, the corporate governance
reforms underway in China, Korea and other markets are delivering meaningful
increases to shareholder returns, while also improving capital efficiency. All
these factors point to continued opportunities for growth and income across
the region.
Following changes in the portfolio management team last year, the Board is
pleased with the success of the partnership between Robert Lloyd and Pauline
Ng. While, as ever, geopolitical and market risks persist, the Board is
confident in the Portfolio Managers' ability to navigate these challenges and
continue to deliver attractive returns to shareholders.
On behalf of the Board, I thank you for your continued support and look
forward to engaging with shareholders at the upcoming Annual General Meeting.
Sir Richard Stagg
Chairman
10th December 2025
Portfolio Managers' Report
The Market Environment in 2025
Asian markets rose sharply in the Company's financial year ended 30th
September 2025, with the MSCI Asia Pacific Index rising by 16.8% expressed in
sterling terms. China, Singapore, Taiwan and Korea all saw robust gains, while
Indonesia fell sharply. China remained a focal point. The MSCI China Index
rose by 27.0% as confidence in the country's economic outlook improved. After
three years of economic headwinds, Beijing's leaders have made a decisive move
away from fiscal conservatism and towards more accommodative monetary and
fiscal policies to stabilise markets and restore confidence. This included
rare mid-year budget adjustments in 2024 to boost infrastructure investment,
and a commitment to a moderately loose monetary policy, including several
interest rate cuts over 2024 and 2025. These policy efforts were specifically
designed to address deflationary pressures and property sector weakness, which
had previously weighed heavily on markets. Investors welcomed the measures,
but so far, they have had a limited effect on the real economy, as real estate
activity and consumer spending remain subdued.
The MSCI Singapore Index reached record highs in 2025. Key market drivers were
an improvement in shareholder returns from the largest banks and strong
earnings growth from tech companies. Taiwan's stock market also hit all-time
highs led by tech companies including Taiwan Semiconductor Manufacturing
Company (TSMC). After a period of instability and underperformance, the Korean
stock market experienced a strong rally in 2025, driven by a combination of
factors. Investors welcomed the return to political stability following
turmoil that culminated in the impeachment of the former president in April.
Korea's corporate Value Up program continues to improve shareholder returns,
and there is optimism about the outlook for the technology sector. Elsewhere,
the MSCI India finished the fiscal year flat. Although India's GDP grew by
7.0% over the period, the market was negatively impacted by unfavourable trade
negotiations with the US and disappointing corporate earnings growth.
Indonesia was the worst performing market. Economic challenges intensified
with the launch of Danatara, a sovereign wealth fund established by the
Indonesian government, raising concerns about potential misallocation of
government funds. These challenges were most pronounced in the Indonesian
equity market, though broader market volatility and macroeconomic pressures
also impacted other Asian regional equity markets to a lesser degree.
As in other regions, the rapid development of artificial intelligence (AI) was
an important theme in Asian markets over the year, thanks to the region's
dominant role in the manufacturing supply chain crucial to the AI revolution.
TSMC, a key partner for global AI leaders like NVIDIA and Apple, remains a
leading innovator, producing next generation chips which improve the speed and
energy-efficiency of smartphones and laptops as well as power new technologies
such as advanced AI tools. Beyond chips, Taiwanese companies like Foxconn and
Quanta Computer produced a staggering 90% of global AI server manufacturing
capacity.
Performance
The Company outperformed its benchmark over the period, returning +19.9% on a
net asset value ('NAV') total return basis, compared with a benchmark return
of +16.8%, expressed in sterling terms. The Company has outperformed the
benchmark in all but three of the last ten financial years, a long span of
time over which market conditions have fluctuated widely. In the ten years
ended 30th September 2025, the Company delivered a cumulative total return of
+202.5% in NAV terms and +223.2% on a share price basis, well above the
benchmark's cumulative total return of +154.3%. On an annualised returns
basis, these results equate to +11.7% in NAV terms, +12.4% on a share price
basis and +9.8% for the benchmark.
Performance attribution
30th September 2025
Contributions to total returns % %
Benchmark return 16.8
Stock selection 2.3
Currency effect 0.0
Gearing/(net cash) 0.1
Investment Manager contribution 2.4
Dividends/Residual(1) -0.3
Portfolio return 18.9
Management fee and other expenses -0.8
Impact of the provision for Indian capital gains tax 0.3
Share buyback 1.5
Return on net assets(APM) 19.9
Effect of movement in discount over the year 4.0
Return on share price(APM) 23.9
Source: FactSet, Morningstar and J.P.Morgan. All figures are on a total return
basis.
Performance attribution analyses how the Company achieved its recorded
performance relative to its benchmark index.
(1) Represented by timing differences in respect of cash flows and
dividends.
(APM) Alternative Performance Measure ('APM').
A glossary of terms and APMs is provided on pages 101 to 103 of the 2025
Annual Report.
Attribution
The top contributor to performance over the year was Hong Kong Exchange, the
operator of the Hong Kong Stock Exchange. This exchange experienced a
significant increase in trading volumes in 2025, with the average daily
turnover more than doubling, reaching record highs. Southbound flows from
Mainland China accounted for nearly a quarter of daily turnover, and
derivatives. Exchange Traded Products (ETP), and commodities markets also saw
substantial growth. This surge was driven by robust capital inflows, resilient
market sentiment, and favourable liquidity conditions. Our holding in Delta
Electronics, a Taiwanese supplier of power and thermal management systems, was
another positive contributor. The company saw robust growth in its AI server
power supply and liquid cooling solutions throughout the year. These segments
saw significant revenue increases, with revenue from AI power projected to
grow from 12% of total revenue in 2025, to 31% in 2026 and 47% in 2027. Demand
for liquid cooling solutions also expanded rapidly, with Delta holding a
market share of more than 50% in liquid-to-air cooling systems used in data
centres. This growth contributed to record gross and operating margins -
Delta's Q2 '25 gross margin was 35.5% and its operating margin was 15.1%.
Notable detractors from performance during the review period included an
underweight in Xiaomi Corp, a Chinese consumer electronics business. The stock
rose more than 100% due to robust financial results, driven by strong growth
in its electric vehicle (EV) and Artificial Intelligence of Things (AIoT)
segments, premiumisation of its smartphone business, and the successful
expansion of its customer base and network of suppliers and distributors. The
company reported record Q2 revenue of RMB 116 billion, up 30% year-on-year,
and adjusted net profit of RMB 10.8 billion, a 75% increase, with EV gross
margins reaching 26.4%. Xiaomi's innovative product launches, including the
YU7 and SU7 EV models and AI Glasses, captured significant market share. Our
holding in PT Bank Central Asia Tbk (BCA), an Indonesian regional bank, also
detracted, driven by a combination of company-specific and sector-wide
challenges. BCA experienced decelerating loan growth, with management guiding
for more moderate, 6-8%, loan growth for the year. In addition, the market
began to worry about the bank's asset quality, particularly in the SME and
consumer segments. Credit costs were revised upward to 30-50bps, reflecting
rising special mention loans and a mild uptick in non-performing loans (NPLs).
Portfolio Activity
We adopt a bottom-up approach to building our portfolio, seeking out the most
attractive investment opportunities across Asia - innovative, market-leading,
profitable companies with growth potential that is sustainable over the
long-term. We are assisted in our quest by a team of sector and country
analysts located on the ground in Hong Kong, Singapore, Seoul, Taipei and
Shanghai, making them ideally positioned to find interesting businesses others
may overlook.
Over the year, we bought Beijing Huafeng Test & Control Technology
(Accotest), a Chinese company which develops automated test systems. Accotest
has a dominant market share (over 60%) in domestic analog integrated circuitry
testing, and is benefiting from rapid growth in the trend towards localisation
- adapting global content to align with the language and culture of a target
market. Another new tech holding is Advanced Micro-Fabrication Equipment-A
(AMEC), a Chinese producer of high-end semiconductors. AMEC is also a
beneficiary of localisation trends, particularly in the development of the
most advanced chips essential to the manufacture of many high-quality
electronic and optical devices.
Our high conviction investment approach means that portfolio turnover is
usually low. However, during the year we sold Reliance Industries, an Indian
conglomerate whose interests include oil and gas production and retailing. Our
main concerns centred around Reliance's retail business, where growth
decelerated amid the ongoing rationalisation of stores, softer consumer demand
and competition from online retailers. We also closed a position in Haidilao,
China's leading hotpot restaurant and food delivery chain. This company's core
operating profit declined by 14% in the first half of 2025, undershooting
expectations due to higher marketing and delivery expenses, and investments in
new store formats. The main brand experienced a 9% year-over-year sales
decline, primarily due to its failure to utilise fully its restaurant
capacity, and a challenging pricing environment driven by delivery wars.
Additionally, ongoing weakness in the consumer environment and increased
competition from delivery platforms have postponed the recovery and
re-expansion of Haidilao's core brand.
Outlook for 2026
We believe the outlook for next year will hinge on five important themes:
China
China's economy is projected to grow by around 4.5% in 2026. While this
represents a slowdown from the forecast 2025 rate of 4.8%, it is important to
bear in mind that growth of this magnitude would still be more than twice as
strong as the IMF's 2026 projection of 2.1% US growth, and higher than the
IMF's growth forecasts for all other economies except India. The policy
stimulus packages implemented over the past year targeted social safety nets
and AI infrastructure, with the aim of increasing domestic consumption to
offset declining net export contributions. These measures are yet to take full
effect, but there is already speculation about the possibility of further
stimulus measures to counter the growth slowdown. Other policy initiatives may
also support the economy over the medium term, as the government will embark
on its 15th Five-Year Plan in the coming year. China's past five years were
mainly about risk containment. The next five will focus on economic
rebalancing - tackling deflation, driving the transition to tech and services,
and digesting lingering debt risks. It is, however, difficult to be too
optimistic about what any such measures may achieve. Real progress towards
these goals demands deep structural reforms, but so far, change has been
incremental.
Shareholder Returns
Yet reform is continuing apace in other spheres, in China, and elsewhere in
Asia. There is a gradual improvement in shareholder returns in the region.
Chinese companies are increasingly prioritising shareholder returns and
capital discipline over growth. Dividend payouts and share buybacks have more
than doubled in the past decade, with 30%-50% of Chinese companies now paying
dividends. This more supportive corporate backdrop, combined with China's
relatively robust growth and the authorities' efforts to rebalance the
economy, suggests that an increase in exposure to China may serve investors
well.
Corporate governance reforms also remain a source of optimism in Korea, and
elsewhere. The government continues to push forward with reforms, including a
revised commercial code, tax changes and the possible introduction of a
mandatory requirement for companies to cancel treasury shares. In southeast
Asia, the Indonesian bank regulator, OJK, has indicated its support for high
dividend payouts. This has influenced BCA and other major banks to prioritise
profitability and capital returns, reinforcing the general trend towards
higher dividend payments. Singapore's largest bank, DBS, launched a SGD3bn
share buyback program, which includes share cancellation, and added
a quarterly 'Capital Return' dividend, in addition to recent increases to
ordinary dividends and a bonus share issue.
AI/Technology
The rapid spread of AI and technology more generally is providing another
significant tailwind for Asian equities. The tech sector now comprises around
30% of the MSCI Asia ex Japan index and encompasses world-leading
manufacturers and suppliers of semiconductors, electronics, hardware, software
and outsourcing and cloud services. While the software services story is well
known, it is imperative to understand that Asian tech companies also play an
integral role in the global supply chain underpinning the AI revolution, and
the surge in worldwide demand for AI-related products is providing a strong
tailwind for these companies. Taiwan, for example, produces -90% of the
world's advanced semiconductors, while South Korea is responsible for -50% of
the world's supply of solid-state memory. While the US and Europe were
dominant regions for semiconductor production in 1990, with a market share of
just over 80%, today they account for only 23% of global semiconductor
production. The rest comes from Asia. Additionally, up to 75% of suppliers to
the US's so-called Magnificent Seven (M7) tech giants are located outside of
the US, particularly in east and south-east Asia.
As well as their role in the global AI supply chain, Asian companies are
increasingly integrating AI into their own operations, leading to innovation,
improved productivity, and potentially more sustainable earnings growth. While
AI adoption faces challenges, such as trade restrictions on China's access to
high-end chips, AI and related technological advances are nonetheless creating
new capital expenditure cycles and driving economic growth that can support
higher equity valuations across the region.
There are concerns among some investors about the possibility that the surge
in AI-related capital investment by the M7 and many other businesses around
the world, is fuelling an 'AI bubble' in danger of bursting, with painful
consequences similar to the collapse of the dot.com boom in 2000. However,
unlike the dot.com boom, current AI capex is being funded from companies'
existing, often very strong, earnings, rather than by debt. This significantly
reduces potential knock-on effects if the returns on this investment
disappoint. Furthermore, corporate credit markets, which are more sensitive to
potential risks than equity markets, appear unfazed by the extent of current
capex. Credit spreads are trading close to all-time lows - a clear sign that
bond investors have few concerns about issuers' capacity to generate
sufficient free cash flow to meet commitments.
Valuations
Valuations are another reason for confidence in the outlook for the coming
year. Although MSCI All Countries Asia ex Japan (MXASJ) Index valuations have
re-rated, a look at the underlying index constituents and drivers is
instructive. Some regions such as India and Taiwan are trading at all-time
high valuation levels, either on forward price to earnings or price to book
ratios, and these have consequently lifted index levels. However, valuations
in China and Korea remain at the mid-point of their ranges over the last ten
years. The broad improvements we anticipate in both these markets, thanks to
ongoing corporate reforms discussed above, should lead to higher returns on
capital over the long-term, and in our view, this justifies increases in
valuation multiples beyond their current levels. Additionally, Asian equity
valuations remain at a discount of roughly 30% relative to the US market,
which, while consistent with historical averages, leaves some scope for
narrowing.
India
US tariffs are the greatest risk to the market. They will remain a burden for
Asian exporters, and their economies. And India is likely to be one of the
worst affected countries. The US announced 50% tariffs on Indian goods
(including a 25% penalty for Russian oil imports), effective 27 August 2025,
with the exception of chemicals, electronics, energy and generic
pharmaceuticals. If fully implemented, these tariffs are estimated to add
50-60bps to India's current account deficit and to cut GDP by a similar
magnitude. Even if the tariffs are revised down to 20-25% by end-2025, as
widely expected, their economic impact will still be significant. The US also
issued new visa rules for highly educated foreign workers, requiring a
$100,000 fee for new applicants, which will limit the career progression of
many highly skilled Indian professionals.
To mitigate the impact of these trade and labour market restrictions, India
has announced several positive domestic policies. The Reserve Bank of India
has introduced measures to support exporters, such as reducing compliance
burdens and extending the time limit for repatriation of foreign currency
earnings. The government is revamping the goods and services tax (GST) to
stimulate domestic demand and ease the burden on affected sectors including
automobiles, garments, and electronics. These steps are designed to provide a
buffer against external shocks, protect labour intensive industries, and
reduce reliance on the US market. At the same time, the Indian government is
continuing negotiations with the US for a fair-trade agreement that respects
India's economic interests.
Tariffs aside, the outlook for 2026 seems more positive than it was at the
time of our Half Year Report. China's relatively strong growth should continue
to support activity across the region. Markets will gain further impetus from
widespread improvement in shareholder returns and from earnings growth driven
by Asia's position at the centre of the AI revolution. Furthermore, the rapid
development and penetration of AI should boost productivity and cut costs
across most sectors for years to come. And although unexpected volatility may,
at times, disturb this relatively upbeat scenario, it can also create
attractive investment opportunities that enhance returns over time. So, we
will be quick to grasp any such opportunities as they emerge, while also
maintaining our focus on providing shareholders with continued strong outright
gains and outperformance over the long term.
Robert Lloyd
Pauline Ng
Portfolio Managers
10th December 2025
PRINCIPAL & EMERGING RISKS AND UNCERTAINTIES
The Directors confirm that they have carried out a robust assessment of the
principal risks facing the Company, including those that would threaten its
business model, future performance, solvency or liquidity. The risks
identified and the ways in which they are managed or mitigated are summarised
below. With the assistance of JPMF, the Audit Committee has drawn up a risk
matrix, which identifies the principal risks to the Company. These are
reviewed and discussed on a regular basis by the Board. The identified risks,
their categories, and the strategies for managing or mitigating them are
summarised below. The AIC Code of Corporate Governance requires the Board, via
the Audit Committee, to put in place procedures to identify and manage
emerging risks. Emerging risks, which are not deemed to represent an immediate
threat, are considered by the Audit Committee as they come into view and are
incorporated into the existing review of the Company's risk register. However,
since emerging risks are likely to be more dynamic in nature, they are
considered on a more frequent basis, through the remit of the Board when the
Audit Committee does not meet. The key principal and emerging risks identified
are summarised below.
Principal risk Description Mitigating activities Movement from prior year
Investment Strategy and Process An inappropriate investment strategy, poor asset allocation or gearing, may The Board has delegated investment responsibilities to one of the best The risk remains high but unchanged from 2024.
lead to underperformance against the Company's benchmark index and peer resourced financial institutions globally and seeks to mitigate this risk
companies, resulting in reduced demand and the Company's shares trading on through its investment policy and guidelines, which are monitored and reported
a wider discount. Prolonged and substantial underperformance of significant on regularly by the Manager. The Board monitors the implementation and results
markets such as China and India may result from various risks including of the investment process with the Portfolio Managers and reviews data which
restrictions on the free movement of capital, sanctions or other restrictions detail the portfolio's holdings and risk profile. The Board holds a meeting
imposed by the UK or other governments. specifically on strategy annually. Whilst the board has limited ability to
mitigate the impact of market risks, these are monitored and reviewed while
mitigation comes through portfolio diversification at a country, sector and
stock level. In addition, the investment trust structure permits longer-term
holdings and mitigates against forced sales.
Geopolitical There appears to be an increasing risk to market stability and investment There is little direct control of the risks from the interconnected nature of The risk remains high.
opportunities from the increasing number of worldwide geopolitical conflicts. political, economic, and social factors that can impact the investment
The Company and its assets may be impacted by geopolitical instability, in environment. However, this can be managed to some extent by diversification of
particular concerns over global economic growth, rising political turbulence investments, active monitoring, flexible investment strategies and robust due
and the heightened threat of tariffs on exported goods. Investing in China diligence on investee companies. This is aided by regular communication with
exposes the Company to idiosyncratic country risk and actions taken by the the Investment Manager about in-house research, matters of investment strategy
Chinese government, such as changes to regulation, or international tensions, and portfolio construction. The Board also has access to a range of expert
which may lead investors to reduce or completely withdraw their investments in resources and strategists both within JPMAM and externally, who can provide
China. long term insight and guidance on geopolitical developments likely to impact
investments in China and elsewhere.
Investment Team The departure of or a failure to replace adequately a portfolio manager or The Manager has a depth of experienced investment resources and takes steps to The risk remains medium.
several members of the investment management team could result in a reduce the consequences of such an event by ensuring appropriate succession
deterioration in investment performance. planning and the adoption of a team-based approach. The Board is comfortable with the process around changes to the investment
team.
Discount Volatility and Corporate Activity Risk The shares trading at an excessive discount or premium to Net Asset Value can The Board monitors the Company's premium/discount level and is committed to The risk remains high.
negatively impact shareholders and, with the rise of activism, the Company defend a share price discount to NAV of between 8% and 10% in normal market
itself may be at risk of some form of corporate activity, which may not be in circumstances through the use of buybacks. The Board regularly reviews and monitors the Company's objective and
the best interests of all shareholders. In addition, low shareholder voting
investment policy and strategy, the investment portfolio and its performance,
turnout at AGMs (and GMs) may lead to some form of corporate activity which The Board monitors changes to its shareholder register carefully and on a the level of discount/premium to net asset value at which the shares trade and
may not be in the best interests of all shareholders, or the inability to timely basis, and actively seeks to engage with its shareholders directly and movements in the share register. During the year the Company continued to
execute corporate activity which may be in the best interests of shareholders. in conjunction with the Manager and the Company's broker. conduct share buybacks.
Operational Resilience, Controls and Security The Company has no employees and is therefore dependent on third parties for The Company operates through contractual agreements with its service The risk remains high.
the provision of all of its services and systems, especially those of the providers, most of which the Manager is also party to. The Board's Audit
Manager, Depositary and Registrar. Failure to maintain effective and Committee regularly reviews the controls reports for the Manager, Depositary The Board receives updates from JPMF's information security manager.
appropriate controls, improper access, disruption to, failure of, or and Registrar and monitors and evaluates the performance of the Company's
inadequate service levels of these parties could result in the prevention of service providers, with the assistance of the Manager. Any pertinent issues To date the Manager's cyber security arrangements have proven robust and the
accurate reporting and monitoring of the Company's financial position, loss of relevant to the Company are reported to the Board, including those identified Company has not been impacted by any cyber attacks threatening its operations.
confidential data and impact its ability to operate or result in reputational by the Manager's Third Party Oversight team in conjunction with its Vendor
damage. This is particularly pertinent given the advent of the Internal Management team. In addition, the Manager's Business Continuity Plans ("BCP")
Controls Declarations. are designed to accommodate potential threats and are regularly updated,
tested, monitored and reviewed. The Manager has assured the Board that the
Company benefits directly or indirectly from all elements of JPMorgan's Cyber
Security programme.
Accounting, Legal and Regulatory A breach of regulatory rules or a failure to maintain accurate accounting Accounting, legal and regulatory compliance are continually monitored by the The risk remains medium.
records could result in loss of investment trust status, reputational damage, Manager and the Auditors and the results reported to the Board. In addition,
financial penalties, suspension of the Company's listing or a qualified audit the Board, the Manager and its professional advisers monitor changes in Changes to the regulatory landscape are inevitable.
report. legislation which may have an impact on the Company.
Viability of Company in terms of size As a result of both the existing discount target, pursued through buybacks, The Manager and Broker provide regular updates on how the Company is perceived This risk has increased as a result of the level of share buybacks over the
the enhanced dividend policy, and market moves, the size of the Company may by investors, while the Directors consider the viability of the Company over a last year.
fall below a level that is deemed viable, with a reduction in liquidity of its five-year period annually as part of the going concern review. In addition,
shares and an increasing cost base. This would reduce the attractiveness of the discount target and buyback policy is reviewed annually.
the Company to investors, particularly the largest wealth managers who require
greater scale and liquidity. The Board and the Investment Manager regularly engage with the shareholders to
take their views into account.
Widespread Social and Economic Disruption Recent examples such as the Global Financial Crisis or the Covid-19 pandemic The Board will monitor the resilience of service providers' Business The risk remains medium.
may have ended or abated, but disruption may reoccur for several reasons. Continuity Plans. The Board also reviews reports on the Company's 'Going
Concern' status.
Emerging Risks
The Board has considered and kept under review emerging risks, including but
not limited to the impact of climate change, geopolitical conflict,
inflationary pressures, social dislocation and conflict and technological
advances. The key emerging risks identified are as follows:
Artificial Intelligence ('AI')
Advances in computing power mean that AI has become a powerful tool that will
impact a wide range of applications with potential to disrupt the Company's
operations and investments. The Board will monitor developments in this area
carefully both in conjunction with the Manager and other external experts when
appropriate and consider how this risk might threaten the Company's
activities.
Impact of Active Exchange Traded Funds (ETFs)
Active ETFs are low cost, liquid vehicles that can provide investors with
actively managed exposure to regional markets such as Asia. In addition,
discount volatility is alleviated to a significant extent, thereby addressing
one of the key downsides of investment trusts.
The Company takes advantage of the benefits of the investment trust structure,
which cannot easily be accessed by ETFs, by deploying gearing (via CFDs) and
providing investors with an enhanced dividend. Furthermore, the managers are
able to embrace more liquidity risk and invest further down the market
capitalisation scale.
TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES
Details of the management contract are set out in the Directors' Report on
pages 42 and 43 of the 2025 Annual Report. The management fee payable to the
Manager for the year was £1,620,000 (2024: £1,736,000) of which £nil (2024:
£nil) was outstanding at the year end.
Safe custody fees amounting to £134,000 (2024: £152,000) were payable to
JPMorgan Chase Bank N.A. during the year of which £23,000 (2024: £39,000)
was outstanding at the year end.
The Manager may carry out some of its dealing transactions through group
subsidiaries. These transactions are carried out at arm's length. The
commission payable to JPMorgan Securities Limited for the year was £10,000
(2024: £nil) of which £nil (2024: £nil) was outstanding at the year end.
Other capital charges (handling charges) on dealing transactions amounting to
£28,000 (2024: £36,000) were payable to JPMorgan Chase Bank N.A. during the
year of which £5,000 (2024: £10,000) was outstanding at the year end.
Stock lending income amounting to £19,000 (2024: £28,000) were receivable by
the Company during the year. The Manager's commissions in respect of such
transactions amounted to £2,000 (2024: £3,000).
The Company also invests in the JPMorgan USD Liquidity Fund, which is managed
by JPMorgan Asset Management (Europe) S.à r.l. At the year end this was
valued at £2,567,000 (2024: £1,171,000). Interest amounting to £78,000
(2024: £92,000) was receivable during the year of which £nil (2024: £nil)
was outstanding at the year end.
At the year end, the Company held cash of £1,140,000 (2024: cash of
£2,350,000) with JPMorgan Chase Bank N.A. A net amount of interest of
£22,000 (2024: £6,000) was receivable by the Company during the year of
which £nil (2024: £nil) was outstanding at the year end.
The Directors of the company are considered related parties. Full details of
Directors' remuneration and shareholdings can be found on pages 55 to 57 of
the 2025 Annual Report.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulation.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have prepared the financial
statements in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards, comprising FRS 102 'The
Financial Reporting Standard applicable in the UK and Republic of Ireland' and
applicable law). Under company law the Directors must not approve the
financial statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the profit or loss of the
Company for that period. In preparing the financial statements, the Directors
are required to:
• select suitable accounting policies and then apply them consistently;
• state whether applicable United Kingdom Accounting Standards, comprising
FRS 102, have been followed, subject to any material departures disclosed and
explained in the financial statements;
• make judgements and accounting estimates that are reasonable and
prudent; 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.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements and the Directors'
Remuneration Report comply with the Large and Medium-sized Companies and
Groups (Accounts and Reports) Regulations 2013.
The Directors are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the
Company's website. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from legislation in other
jurisdictions.
Under applicable law and regulations the Directors are also responsible for
preparing a Strategic Report, a Directors' Report and Directors' Remuneration
Report that comply with the law and those regulations.
Each of the Directors, whose names and functions are listed in the Directors'
Report confirm that, to the best of their knowledge:
• the Company's financial statements, which have been prepared in
accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting
Standard applicable in the UK and Republic of Ireland', and applicable law),
give a true and fair view of the assets, liabilities, financial position and
profit of the Company; and
• the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal risks and uncertainties that it faces.
The Board confirms that it is satisfied that the Annual Report & Financial
Statements, taken as a whole, are fair, balanced and understandable and
provide the information necessary for shareholders to assess the Company's
performance, business model and strategy.
For and on behalf of the Board
Sir Richard Stagg
Chairman
10th December 2025
Statement of Comprehensive Income
Year ended Year ended
30th September 2025 30th September 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value through profit or loss - 44,280 44,280 - 39,462 39,462
Gains on derivative financial instruments - 3,254 3,254 - - -
Foreign currency losses - (322) (322) - (415) (415)
Income from investments 6,202 161 6,363 7,000 - 7,000
Income from derivative financial instruments 221 - 221 - - -
Interest receivable and similar income 119 - 119 126 - 126
Gross return 6,542 47,373 53,915 7,126 39,047 46,173
Management fee (1,620) - (1,620) (1,736) - (1,736)
Other administrative expenses (873) - (873) (821) - (821)
Net return before finance costs and taxation 4,049 47,373 51,422 4,569 39,047 43,616
Finance costs (288) - (288) (20) - (20)
Net return before taxation 3,761 47,373 51,134 4,549 39,047 43,596
Taxation (478) (41) (519) (692) (2,507) (3,199)
Net return after taxation 3,283 47,332 50,615 3,857 36,540 40,397
Return per share 4.54p 65.51p 70.05p 4.51p 42.75p 47.26p
A fourth quarterly dividend of 7.1p (2024: 4.2p) per share has been declared
in respect of the year ended 30th September 2025,
totalling £4,828,000 (2024: £3,288,000). Further details are given in note
10 on page 78 and 79 of the 2025 Annual Report.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or
discontinued in the year.
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 year
and also the total comprehensive income.
Statement of Changes in Equity
For the year ended 30th September 2025
Called up Exercised Capital
share Share warrant redemption Capital Revenue
capital premium reserve reserve reserves(1) reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30th September 2023 24,449 46,705 977 25,121 247,577 - 344,829
Repurchase of ordinary shares into Treasury - - - - (42,765) - (42,765)
Proceeds from share forfeiture(2) - - - - 426 - 426
Net return 36,540 3,857 40,397
Dividends paid in the year (note 3) - - - - (9,403) (4,067) (13,470)
Forfeiture of unclaimed dividends(2 ) - - - - - 210 210
At 30th September 2024 24,449 46,705 977 25,121 232,375 - 329,627
Repurchase of ordinary shares into Treasury - - - - ((41,331) - (41,331)
Net return - - - - 47,332 3,283 50,615
Dividends paid in the year (note 3) - - - - (11,804) (3,283) (15,087)
At 30th September 2025 24,449 46,705 977 25,121 226,572 - 323,824
(1) These reserves form the distributable reserves of the Company and may be
used to fund distributions to investors.
(2) During the year ended 30th September 2024, the Company undertook an
Asset Reunification Program to reunite inactive shareholders with their shares
and unclaimed dividends. Pursuant to the Company's Articles of Association,
the Company has exercised its right to reclaim the shares of shareholders whom
the Company, through its previous Registrar, has been unable to locate for a
period of 12 years or more. These forfeited shares were sold in the open
market by the Registrar and the proceeds, net of costs, were returned to the
Company. In addition, any unclaimed dividends older than 12 years from the
date of payment of such dividends were also forfeited and returned to the
Company.
Statement of Financial Position
30th September 30th September
2025 2024(1)
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss(1) 313,019 327,316
Investments on loan held at fair value through profit or loss(1) 8,573 4,936
Total investments held at fair value through profit or loss 321,592 332,252
Current assets
Derivative financial instrument assets 1,472 -
Debtors 1,449 2,948
Current asset investments(1) 2,567 1,171
Cash at bank(1) 1,140 2,350
6,628 6,469
Current liabilities
Creditors: amounts falling due within one year (2,827) (6,613)
Derivative financial instrument liabilities (32) -
Net current assets/(liabilities) 3,769 (144)
Total assets less current liabilities 325,361 332,108
Provision for liabilities (1,537) (2,481)
Net assets 323,824 329,627
Capital and reserves
Called up share capital 24,449 24,449
Share premium account 46,705 46,705
Exercised warrant reserve 977 977
Capital redemption reserve 25,121 25,121
Capital reserves 226,572 232,375
Total equity shareholders' funds 323,824 329,627
Net asset value per ordinary share 476.0p 417.9p
(1) Prior year comparatives have been restated as explained in note 1(a).
The financial statements on pages 68 to 71 of the 2025 Annual Report were
approved and authorised for issue by the Board of Directors on 10th December
2025 and signed on their behalf by:
Sir Richard Stagg
Director
Statement of Cash Flows
Year ended Year ended
30th September 30th September
2025 2024
£'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 51,422 43,616
Adjustment for:
Net gains on investments held at fair value through profit or loss (44,280) (39,462)
Net gains on derivative financial instruments (3,254) -
Foreign currency losses 322 415
Dividend income (6,180) (6,852)
Interest and stock lending income (119) (98)
Scrip dividends received as income (183) (148)
Derivative income (221) -
Realised losses on foreign exchange transactions (705) (195)
Realised exchange gains/(losses) on JPMorgan USD Liquidity Fund 132 (178)
Decrease/(increase) in other debtors 2 (11)
Decrease in accrued expenses (69) (17)
Net cash outflow from operations before dividends, interest and taxation (3,133) (2,930)
Dividends received 5,685 6,182
Interest and stock lending income received 119 98
Overseas withholding tax recovered 110 21
Indian capital gains tax paid (985) (272)
Net cash inflow from operating activities 1,796 3,099
Purchases of investments (301,057) (216,601)
Sales of investments 354,423 273,018
Derivative income received on CFDs 169 -
Interest paid on CFDs (252) -
Realised gains on settlement of derivative financial instruments (CFDs) 5,702 -
Realised losses on settlement of derivative financial instruments (CFDs) (3,888) -
Settlement of forward currency contracts (49) -
Net cash inflow from investing activities 55,048 56,417
Dividends paid (15,087) (13,470)
Repurchase of ordinary shares into Treasury (41,858) (42,245)
Proceeds from share forfeiture - 426
Forfeiture of unclaimed dividends - 210
Interest paid on bank overdrafts (13) (23)
Net cash outflow from financing activities (56,958) (55,102)
(Decrease)/increase in cash and cash equivalents (114) 4,414
Cash and cash equivalents at start of year 3,521 (851)
Foreign currency exchange movement 300 (42)
Cash and cash equivalents at end of year 3,707 3,521
Cash and cash equivalents consist of:
Cash at bank 1,140 2,350
Current asset investment in JPMorgan USD Liquidity Fund 2,567 1,171
Total 3,707 3,521
Notes to the Financial Statements
1. Accounting policies
(a) Basis of accounting
The financial statements are prepared under the historical cost convention,
modified to include fixed asset investments at fair value, and in accordance
with the Companies Act 2006, United Kingdom Generally Accepted Accounting
Practice ('UK GAAP'), including FRS 102 'The Financial Reporting Standard
applicable in the UK and Republic of Ireland' and with the Statement of
Recommended Practice 'Financial Statements of Investment Trust Companies and
Venture Capital Trusts' (the 'SORP') issued by the Association of Investment
Companies in July 2022.
All of the Company's operations are of a continuing nature.
The financial statements have been prepared on a going concern basis. In
forming this opinion, the Directors have considered the impact of continued
market volatility and economic uncertainty resulting from ongoing geopolitical
tensions and conflicts, including the war in Ukraine, ongoing tensions between
China and the US and escalating conflict in the Middle East, and in particular
the impact of these geopolitical risks, as well as climate change, on the
going concern and viability of the Company. In making their assessment, the
Directors have reviewed income and expense projections and the liquidity of
the investment portfolio, and considered the mitigation measures which key
service providers, including the Manager, have in place to maintain
operational resilience. The Directors have also reviewed the compliance with
debt covenants in assessing the going concern and viability of the Company.
The Directors have also reviewed income and expense projections and the
liquidity of the investment portfolio in making their assessment. The Company
passed its continuation vote at the Company's 2023 Annual General Meeting and
the next continuation vote will be considered at the Annual General Meeting in
2026. The disclosures on going concern on page 51 and 52 of the Directors'
Report in the 2025 Annual Report form part of these financial statements. The
Directors consider that the Company has adequate financial resources to enable
it to continue in operational existence for at least 12 months from the date
the financial statements are authorised for issue.
Prior year restatements
For the year ended 30th September 2024, the Investments held at fair value
through profit or loss in the Statement of Financial Position have been
restated to disclose separately the investments on loan held at fair value
through profit or loss. The value of Investments on loan, included within the
value of Investments held at fair value through profit or loss of
£332,252,000, was £4,936,000. This change in presentation has no impact on
the Company's net assets as reported for the year ended 30th September 2024
and the opening balances as at 1st October 2023. Further details of the
securities on loan are provided in note 22 (c) Credit risk exposure.
For the year ended 30th September 2024, the 'Cash and cash equivalents' of
£3,521,000 line item in the Statement of Financial Position has been
restated to 'Cash at bank' and 'Current asset investments'. This restatement
separately reports the investment in the JPMorgan USD Liquidity Fund as
'Current asset investments' of £1,171,000 and 'Cash at bank' of £2,350,000,
in compliance with the statutory format required by the Companies Act 2006.
This change in presentation has no impact on the Company's net assets as
reported for the year ended 30th September 2024 and the opening balances as at
1st October 2023.
The other policies applied in these financial statements are consistent with
those applied in the preceding year with the addition of accounting policies
in respect of contracts for difference (CFDs).
2. Dividends
(a) Dividends paid and declared
2025 2024
Pence £'000 Pence £'000
Dividends paid
Fourth quarterly dividend in respect of prior year 4.2 3,284 3.8 3,450
First quarterly dividend 4.1 3,079 3.7 3,270
Second quarterly dividend 6.1 4,333 3.9 3,312
Third quarterly dividend 6.3 4,391 4.2 3,438
Total dividends paid in the year 20.7 15,087 15.6 13,470
Forfeiture of unclaimed dividends over 12 years old(1) - (210)
Net dividends paid 20.7 15,087 15.6 13,260
Dividends declared
Fourth quarterly dividend declared 7.1 4,828 4.2 3,288
(1) The unclaimed dividends were forfeited following an extensive
exercise which attempted to reunite the dividends with owners.
The fourth interim dividend proposed in respect of the year ended 30th
September 2024 amounted to £3,288,000. However, the amount paid amounted to
£3,284,000 due to ordinary shares repurchased after the balance sheet date
but prior to the record date.
A fourth quarterly dividend of 7.1p has been declared and was paid on 21st
November 2025 in respect of the financial year ended 30th September 2025. In
accordance with the accounting policy of the Company, this dividend will be
reflected in the financial statements for the year ending 30th September 2026.
(b) Dividend for the purposes of Section 1158 of the Corporation Tax Act
2010 ('Section 1158')
The requirements of Section 1158 are considered on the basis of the dividend
proposed in respect of the financial year, shown below.
The aggregate of the distributable reserves is £137,121,000 (2024:
£163,613,000).
2025 2024
Pence £'000 Pence £'000
First quarterly dividend paid 4.1 3,079 3.7 3,270
Second quarterly dividend paid 6.1 4,333 3.9 3,312
Third quarterly dividend paid 6.3 4,391 4.2 3,438
Fourth quarterly dividend paid 7.1 4,828 4.2 3,288
Total dividends for Section 1158 purposes 23.6 16,631 16.0 13,308
The aggregate of the distributable reserves after the payment of the fourth
quarterly interim dividend will amount to £132,293,000 (2024: £160,325,000).
3. Return per share
The Revenue, Capital and Total return shown below, is the Net return after
taxation in the Statement of Comprehensive Income on page 68 of the 2025
Annual Report.
2025 2024
£'000 £'000
Revenue return 3,283 3,857
Capital return 47,332 36,540
Total return 50,615 40,397
Weighted average number of shares in issue during the year 72,257,481 85,475,668
Revenue return per share 4.54p 4.51p
Capital return per share 65.51p 42.75p
Total return per share 70.05p 47.26p
4. Net asset value per ordinary share
2025 2024
Net assets (£'000) 323,824 329,627
Number of ordinary shares in issue 68,031,302 78,868,615
Net asset value per ordinary share 476.0p 417.9p
JPMORGAN FUNDS LIMITED
10th December 2025
For further information, please contact:
Anmol Dhillon
For and on behalf of
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 2025 Annual Report 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 2025 Annual Report will also shortly be available on the Company's
website at www.jpmasiagrowthandincome.co.uk
(http://www.jpmasiagrowthandincome.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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. END FR TMBLTMTBBBLA
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