REG - JPMorgan Global - Final results to 30th June 2025
02/10/2025 07:00
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RNS Number : 7255B JPMorgan Global Growth & Income PLC 02 October 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL GROWTH & INCOME PLC
FINAL RESULTS FOR THE YEAR ENDED 30TH JUNE 2025
Legal Entity Identifier: 5493007C3I0O5PJKR078
Information disclosed in accordance with the DTR 4.1.3
JPMorgan Global Growth & Income plc ('JGGI' or the 'Company') reports its
annual results for the year ended 30th June 2025.
Highlights
• NAV total return of +1.0% (with debt at fair value) compared with
+7.2% for the MSCI All Countries World Index in Sterling terms (total return
with net dividends reinvested) (the 'Benchmark'). Share price return of -1.6%.
• Five-year cumulative NAV total return of +102.8% compared with +71.0%
for the Benchmark. Share price return of +96.2%.
• Ten-year cumulative NAV total return of +245.7% (annualised +13.2%)
compared with +197.5% for the Benchmark (annualised +11.5%).
• The Company remains one of the top performers in its peer group over
five and ten years.
• Merger with Henderson International Income Trust plc ('HINT')
completed in May 2025, resulting in enlarged net assets of £3.2 billion and
ongoing charges of 0.44% (excluding management fee waivers).
• The Company issued 101.6 million new ordinary shares during the year,
including 64.3 million shares as part of the combination with HINT. Buybacks
into Treasury totalled 2.8 million shares at a weighted-average discount of
1.7%, adding 0.03p to the NAV per share.
• Total dividend of 22.8p per share paid for the financial year,
equivalent to an increase of almost 24.5% per annum since the introduction of
the enhanced dividend policy in 2016. For the financial year commencing 1st
July 2025, the Board has announced its intention to pay dividends totalling
23.0p per share (5.75p per quarter), a year-on-year increase of 0.9%.
James Macpherson, Chairman of JGGI, commented:
"The Board shares the Portfolio Managers' caution about the near-term market
outlook. The US economy has so far proved relatively resilient to
uncertainties related to the new US Administration's trade policies, but it
seems wise for investors in all major markets to remain wary of further bouts
of US policy-induced volatility. The Company's long track record of good
returns and outperformance provides your Board with reassurance that its
Portfolio Managers have the skills and experience to steer the Company through
any near-term turmoil. Indeed, we welcome their recent efforts to protect
returns by gently increasing allocations to cyclical and defensive stocks to a
more balanced position. At the same time, the Portfolio Managers have
maintained the Company's exposure to several powerful structural trends,
including the rapid spread of artificial intelligence ('AI'), which is
expected to drive market gains and benefit performance over the medium to
longer term. In our view, this positioning leaves the Company well-placed to
extend its long track record of superior returns and I look forward to
reporting back to you on the Company's future progress."
Portfolio Managers, Helge Skibeli, James Cook and Sam Witherow, commented:
"Following a period of market dislocation, we believe that stock picking
across our global investment universe of around 2,500 stocks is more
attractive and potentially rewarding than previously, and we see many
well-priced opportunities. The Company has exposure to several long-term
trends, such as the rapid adoption of AI tools and cloud computing, which we
expect will drive the market over the medium to long term… However, we are
cautious about the near-term outlook and persistent market volatility, and
these factors have also influenced positioning.'
'We continue to be exposed to areas of structural growth but have repositioned
the portfolio to ensure balance between cyclical and defensive companies... We
retain our conviction in the ability of stock selection to generate returns.
We will continue our search for companies that offer superior quality earnings
and growth prospects, at attractive valuations, and we are confident of our
ability to maintain our long-term track record of positive excess returns for
shareholders."
Enquiries:
JPMorgan Global Growth & Income Plc
Press enquiries through Lansons PR
E-mail: consultancy@lansons.com
Investor Relations
Andrew Jenkinson, JPMorgan Funds Limited
E-mail: investment_trust_sales@jpmorgan.com
Tel: 0203 493 0164
CHAIRMAN'S STATEMENT
I am pleased to present the Company's annual results for the year ended 30th
June 2025.
This is my first annual report as Chairman of your Company and, on behalf of
the Board, I would like to express our gratitude to my predecessor, Tristan
Hillgarth, for the exceptional leadership and invaluable contributions he made
to the Company during his tenure. Under his guidance, the Company achieved
significant growth, which has continued since his retirement. I would also
like to thank shareholders for your support of the Company's combination with
Henderson International Income Trust plc (the 'Combination'), and extend
a warm welcome to shareholders who have joined the Company as a result of
this Combination.
This latest transaction builds on our track record of consolidating investment
trusts to provide synergies to shareholders. These synergies are expected to
result in lower management fees for our Company, which will benefit our
shareholders. It also helps meet growing calls from investors for larger funds
in the investment trust sector, which have arisen in part due to the
often-challenging investment environment. The Combination further reinforces
the Company's position as one of the industry's largest investment companies,
with enlarged net assets of £3.2 billion, and one of the lowest ongoing
charges(1) at 0.44% (excluding management fee waivers), making it a
potentially attractive partner for other investment trusts.
(1) Source: Association of Investment Companies. As at 29th September
2025.
Combination with Henderson International Income Trust plc
The Company's combination with Henderson International Income Trust plc
('HINT'), effected by way of a scheme of reconstruction and members' voluntary
liquidation of HINT, was completed in May 2025, following approval of both the
Company's and HINT's shareholders. The Company issued 64,261,713 new ordinary
shares to HINT shareholders in exchange for substantially all of the net
assets of HINT.
The costs of the Combination were carefully managed, and shareholders
benefitted from the Manager's contribution to the costs of the Combination.
Richard Hills, former chairman of HINT, has joined the Board for a transition
period of 12 months on completion of the Combination, bringing continuity and
support for a smooth and informed integration process, particularly for
stakeholder relationships.
Performance attribution
Year ended 30th June 2025 % %
Contributions to total returns
Benchmark total return 7.2
Asset allocation 0.7
Stock selection (6.6)
Currency effect (0.2)
Gearing/cash 0.3
Investment Manager contribution (5.8)
Portfolio total return 1.4
Management fees/other expenses (0.4)
Net asset value total return - prior to structural effects 1.0
Structural effects
Share buy-backs/issuances 0.1
Net asset value total return - debt at par value 1.1
Impact of fair value valuation of debt (0.1)
Net asset value total return - debt at fair value 1.0
Total return on share price (1.6)
Source: J.P. Morgan/Morningstar.
All figures are on a total return basis.
A glossary of terms and APMs is provided in the full annual report.
Performance
After four consecutive years of outperformance, the Company lagged its
benchmark, the MSCI All Countries World Index in sterling terms (total return
with net dividends reinvested) (the 'Benchmark'), over the financial year
ended 30th June 2025. The Company returned +1.0% on net asset value ('NAV')
with debt at fair value, and -1.6% in share price terms, compared to the
Benchmark's return of +7.2%.
This underperformance was largely the result of stock selection. The Portfolio
Managers generally prefer higher-quality stocks demonstrating superior
earnings growth, but the share price of these companies has lagged the
Benchmark over the past year. Fuelled by early optimism in response to the
re-election of President Trump, the market's focus shifted away from
company-specific fundamentals, which tends to favour quality stocks on
realistic valuations, as a sentiment-driven rally gathered momentum. These
market conditions resulted in the outperformance of lower-quality cyclical
stocks which are expected to benefit from the new US Administration's
policies. Your Company's relative returns suffered accordingly and remained
under pressure during a short but sharp sell-off in April, sparked by concerns
about the economic impact of US trade policies. In addition, some of the
portfolio's semiconductor names were hit by weaker than expected demand for
chips, while a couple of portfolio holdings were adversely affected by company
specific challenges.
The Investment Manager's Report provides more detailed commentary on market
developments and performance over the past year, as well as discussing recent
portfolio activity and the market outlook.
The recent lag in relative returns is disappointing, but it is important to
assess this result from a longer-term perspective. The Company has a very
strong and consistent track record of outright gains and outperformance of the
Benchmark over many years. Over the five years to the end of June 2025, the
Company delivered an annualised return of +15.2% on a NAV basis, compared to
an annualised Benchmark return of +11.3%. Over the corresponding 10-year
period, the annualised NAV return was +13.2%, versus a Benchmark return of
+11.5%. In addition, the Company is one of the top performers in our peer
group over these time periods. Given this very positive longer-term
performance the Board remains supportive of the Manager, the investment
strategy and the investment process.
You can read more about the investment process in the full annual report.
Dividend policy
The Company's dividend policy has now been in place since 2016. As a reminder,
this policy aims to pay, in the absence of unforeseen circumstances, dividends
totalling at least 4% of the Company's NAV as at the end of the preceding
financial year. Where, in the view of the Board, the target dividend is likely
to result in a dividend yield that is materially out of line with the wider
market, the Board reserves the right to set the target dividend at a different
level that is more consistent with the wider market and other global income
trusts and funds.
The Board announced that the Company intends to pay dividends totalling
23.0 pence per share (5.75 pence per share, per quarter), for the financial
year commencing 1st July 2025, which represents a year-on-year increase of
0.9%. The payment of this dividend, which will be partially funded by
reserves, recognises both the importance of the dividend to our investors, and
the long-term success of the Company. As in prior years, it is expected that
the dividends will be paid by way of four equal distributions, with the first
interim dividend declared on 3rd July 2025 and due to be paid on 7th October
2025.
Shareholders should be aware that the Company does not have a progressive
dividend policy. However, since the adoption of the enhanced dividend policy
in 2016, shareholders in the Company will have seen an increase in their
dividends of 613% based on a total dividend of 22.80 pence per share for the
financial year ended 30th June 2025, equivalent to almost 24.5% per annum.
Our Portfolio Managers are unconstrained by the requirement to achieve a
certain level of income, and this allows them to select the 'best' stocks,
rather than those that fit a specific income requirement. Our capacity to
partly fund dividends from our significant level of capital reserves, if
required, provides the Company with the means to meet our shareholders' desire
for income, while also giving them clarity regarding dividend payments for the
coming year. The Company's distributable reserves stood at £2.19 billion, in
aggregate, as at 30th June 2025.
Placing programme
The Company's shares started the financial year trading at a premium to NAV,
thanks to strong and ongoing demand for its ordinary shares. To allow the
Company to continue to issue ordinary shares under its issuance and premium
management programme, as well as offering secondary market liquidity for
shareholders, on 18th October 2024, the Company published an updated
prospectus. This provides the Company with the ability to issue up to 150
million ordinary shares during the 12 month life of the placing programme, at
a price not less than the latest published NAV per ordinary share (cum income
with debt at fair value) plus a premium intended to cover the costs and
expenses of such issue, on a non-pre-emptive basis. The prospectus is
available on the Company's website. The share allotment authority under the
placing programme will expire on the earlier of: (i) 18th October 2025; and
(ii) the date on which all the ordinary shares available for issue pursuant to
the placing programme have been issued. Given that the Company has sufficient
capacity to issue ordinary shares under its general share allotment authority
up to the date of the Annual General Meeting on 12th November 2025, the Board
has decided to bring the placing programme to an end with effect from the date
of this report.
Share rating
Despite trading at a premium to NAV for a significant part of the financial
year, there have been periods, particularly in the second half of the year,
where the Company's share price fluctuated and slipped into discount
territory. The share price returned to a premium at the beginning of April
2025, but this proved short-lived, as the share price subsequently dipped
following the Combination. Since then, the Company's share price has risen,
however, it remains at a modest discount to NAV. The Board acknowledges that
the Company's recent underperformance compared to the Benchmark may have also
contributed to the discount. The discount at the year-end was 0.69%, and it
currently stands at 2.40 %(1).
The Board has sought to manage the discount in accordance with the Company's
long-term policy and has been actively repurchasing ordinary shares. Further
details on the share buybacks undertaken over the financial year can be found
below.
The Company's long-term policy of repurchasing its ordinary shares with the
aim of maintaining an average discount of around 5% or less, calculated with
debt at fair value, remains unchanged.
(1) As at 30th September 2025.
Share issuances, share buy-backs and Treasury
Over the financial year, the Company issued in aggregate 101,551,713 new
ordinary shares, which included 64,261,713 ordinary shares issued as part of
the combination with HINT. Over the same period, the Company bought back a
total 2,765,857 ordinary shares into Treasury at a weighted-average discount
of 1.7%, adding 0.03p to the NAV per share. Of the ordinary shares bought back
into Treasury, 1,083,405 were later reissued.
As at the year end, there were 1,682,452 ordinary shares remaining in
Treasury. Since the end of the year, up to 30th September 2025, the Company
has bought back an additional 3,775,701 of ordinary shares into Treasury, at
a weighted average discount of 2.0%, adding 0.05 pence per share to the
Company's NAV.
The Board is monitoring the impact of buybacks on both the share price and the
discount, with the aim of actively seeking a return to a premium rating. This
aligns with the Company's strategic desire for growth and its ambition to
remain an attractive merger partner.
At the forthcoming Annual General Meeting in November, the Board will be
proposing resolutions to renew the Directors' authorities to issue new
ordinary shares at a premium to NAV, and to disapply pre-emption rights over
such issues of new ordinary shares and the reissue of ordinary shares from
Treasury. The Board will also propose a resolution to renew the Directors'
authority to repurchase the Company's own ordinary shares.
Gearing
The Company's policy on gearing is set by the Board and remains unchanged. Our
Portfolio Managers use gearing flexibly to take advantage of investment
opportunities. At the start of the period, the Company was in a net cash
position of 1.0%. During the year, gearing varied between net cash of 1.9% and
gearing of 2.1%, with the Portfolio Managers using modest levels of gearing to
take advantage of valuation opportunities following April's sharp market
sell-off.
As explained in the Investment Manager's Report, the Portfolio Managers are
cautious about the near-term market outlook, and this is reflected in the fact
that your Company had a net cash position of 0.6% at the end of June 2025.
That said, the Portfolio Managers continually assess market opportunities to
deploy gearing where they see potential for it to enhance shareholder value.
As part of the combination with HINT, the Company took on €30 million of
senior secured notes. Since the year end, the Company has purchased the
remaining 0.06% (£125) issue of its £200,000 secured 4.5% Perpetual
Debenture 1895 (the 'Indenture Stock') from the last investor in the
Indenture. The Indenture Stock has now been fully redeemed. Further details on
the Company's borrowings can be found in note 14 of the financial statements
in the full annual report.
Currency hedging
The Company continues its passive currency hedging strategy (implemented in
late 2009) that aims to make stock selection the predominant driver of overall
portfolio performance relative to the Benchmark. This is a risk reduction
measure, designed to eliminate most of the differences between the portfolio's
currency exposure and that of the Company's Benchmark. As a result, the
returns derived from and the portfolio's exposure to currencies may differ
materially from that of the Company's competitors, who generally do not
undertake such a strategy.
The Manager
As announced on 30th July 2025, Tim Woodhouse, who has co-managed our
portfolio for seven years, has stood down as one of our Portfolio Managers,
with effect from 30th September 2025. Tim has taken on new responsibilities
within JPMAM. The Board would like to express its gratitude to Tim for his
significant contribution to the management of the Company's portfolio during
his tenure and extends its very best wishes to him in his new role. The
Company's portfolio will continue to be managed by the existing Portfolio
Managers, Helge Skibeli and James Cook. As announced on 17th September 2025,
Sam Witherow has joined the existing portfolio management team with effect
from 1st October 2025. The Board welcomes Sam's appointment and we look
forward to working with him alongside the other members of the Company's
investment management team in seeking to deliver strong long-term returns to
shareholders.
As part of the Board's formal evaluation of the Manager, which also includes a
review of the performance of the Investment Manager, the Board visited JPMAM's
New York office for the first time. The purpose of this visit was to deepen
our understanding of the considerable resources available to our Portfolio
Managers and the strength of the Manager's operations. During the visit, the
Board engaged in discussions with key members of JPMAM's senior management
team, including the Global Head of Equities and the Chief Market Strategist
for the Americas, various analysts, and the Portfolio Managers themselves.
These interactions provided valuable insights into the intricacies of the
investment process, the methodologies employed in decision-making, and the
overall business environment within JPMAM.
The Board's visit underscored our commitment to maintaining transparency and
fostering a collaborative relationship with the Investment Manager, ensuring
alignment with our strategic objectives and enhancing shareholder value.
The Manager provides other services to the Company, including accounting,
company secretarial and marketing services. These have been formally assessed,
together with the performance of the Portfolio Managers, through the annual
manager evaluation process led by the Company's Management Engagement
Committee. Taking all factors into account, the Board concluded that the
ongoing appointment of the Manager is in the continuing interests of
shareholders.
On behalf of the Board, I would like to take this opportunity to express our
thanks to the various teams within the Manager, for the support they have
provided to the Board throughout the year, including during the Company's
continued consolidation activities.
The Board
As I mentioned in my statement at the Company's half year, the Board appointed
Rakesh Thakrar as a Director on 14th November 2024, and he is proving an
excellent addition, making material contributions to our deliberations.
With the appointment of Richard Hills to the Board in May 2025, following the
Combination, the Board has increased temporarily to seven members. The current
composition of the Board meets the UK Listing Rules related to gender and
ethnic diversity, which is important to the Board.
The Board is keen to align with corporate governance best practices and
recognises the importance of regular refreshment of Board membership, to
maintain independence and effectiveness. While it was proposed that Jane Lewis
would retire at the forthcoming Annual General Meeting, the Board has agreed
that Jane, who holds the role of Senior Independent Director, will stay on the
Board for a further six months to May 2026, at which time both Jane and
Richard will retire. This decision has been made to ensure that the Board
maintains an appropriate balance of skills, experience, and diversity, in
particular gender diversity, as part of its ongoing commitment to a diverse
and inclusive Board.
Jane, who joined the Board in September 2022, following the Company's
combination with The Scottish Investment Trust ('SIT') in 2022, has served for
three years on this Board, but the Board had determined to base her tenure on
her appointment to the SIT board, which took place in December 2015. The Board
is satisfied that Jane continues to demonstrate independence of character and
judgement, and that her contribution remains valuable to the Board and its
committees.
The Board, through the Nomination Committee, will undertake a thorough review
of its succession plans later in the year, with a view to appointing at least
one new non-executive director upon the planned retirements of Jane and
Richard in May 2026. This process will form part of the Board's ongoing
efforts to ensure that its composition remains well-balanced, effective, and
diverse. The Board is mindful not to rush this process, recognising the
importance of identifying and appointing the right individual to bring the
appropriate experience, perspective, and diversity to complement the existing
Board. Jane's ongoing presence on the Board ensures stability and continuity
while the search is undertaken.
The Board supports annual re-election for all Directors, as recommended by the
AIC Code of Corporate Governance, and therefore all the Directors will stand
for election or re-election at the forthcoming Annual General Meeting.
Annual General Meeting
I am pleased to advise that the Company's Annual General Meeting will be held
at 60 Victoria Embankment, London EC4Y 0JP at 3.00p.m. on Wednesday,
12th November 2025. The Board has decided to hold the Annual General Meeting
in London instead of Edinburgh, as previously planned. This decision was made
after careful consideration of several factors. London offers a more
cost-effective option and generally there are a larger number of attendees.
The Board is keen to facilitate greater participation and engagement with its
shareholders.
Shareholders are invited to join us in person for the Company's Annual General
Meeting, to hear from the Portfolio Managers. Their presentation will be
followed by a question-and-answer session. For shareholders who wish to
follow the Annual General Meeting proceedings but choose 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.jpmglobalgrowthandincome.co.uk or by contacting the Company
Secretary at jpmam.investment.trusts@jpmorgan.com.
As is best practice, all voting on the resolutions will be conducted by poll.
Please note that shareholders viewing the meeting via conferencing software
will not be able to vote in the poll. We therefore encourage all shareholders,
and particularly those who cannot attend physically, to exercise their votes
in advance of the meeting by completing and submitting their proxy.
My fellow Directors and I are keen to meet with shareholders. We encourage
shareholders to come to the meeting and to stay for afternoon tea, which will
be served afterwards. Your Board encourages all shareholders to support the
resolutions proposed at the Annual General Meeting.
If there are any changes to the above Annual General Meeting arrangements, the
Company will update shareholders through the Company's website and an
announcement on the London Stock Exchange.
Stay in touch
Your Board likes to ensure shareholders have regular information about the
Company's progress. We would encourage those shareholders who have not already
done so to please consider signing up for our email updates featuring news and
views, as well as the latest performance of the portfolio. You can opt in via
the following link: tinyurl.com/JGGI-Sign-Up.
Outlook
The Board shares the Portfolio Managers' caution about the near-term market
outlook. The US economy has so far proved relatively resilient to
uncertainties related to the new US Administration's trade policies, but it
seems wise for investors in all major markets to remain wary of further bouts
of US policy-induced volatility. The Company's long track record of good
returns and outperformance provides your Board with reassurance that its
Portfolio Managers have the skills and experience to steer the Company through
any near-term turmoil. Indeed, we welcome their recent efforts to protect
returns by gently increasing allocations to cyclical and defensive stocks to a
more balanced position. At the same time, the Portfolio Managers have
maintained the Company's exposure to several powerful structural trends,
including the rapid spread of artificial intelligence, which is expected to
drive market gains and benefit performance over the medium to longer term. In
our view, this positioning leaves the Company well-placed to extend its long
track record of superior returns and I look forward to reporting back to you
on the Company's future progress.
Thank you for your ongoing support.
James Macpherson
Chairman
1st October 2025
INVESTMENT MANAGER'S REPORT
The 12 months to 30th June 2025 was a challenging and disappointing period for
the Company. The Company delivered a return of +1.0% in NAV total return terms
(in sterling, with debt at fair value), compared with an increase of 7.2% for
the Benchmark. However longer-term performance remains strong. For the five
years ended 30th June 2025, the Company achieved an annualised NAV total
return of 15.2%, surpassing the Benchmark, which rose at an annualised rate of
11.3% over the same period.
In this report, we outline the factors behind our performance for the
financial year. Additionally, we comment on the market outlook and the
portfolio's positioning as we move into the second half of 2025.
Market backdrop
The market backdrop at the end of the previous financial year (ended 30th June
2024) suggested a very late cycle economic environment with concerns about
the direction of interest rates and persistent inflation. There was also much
discussion about the impact of artificial intelligence ('AI') on companies and
individuals. 12 months on, all these factors remain relevant. In addition, we
have seen the market and investors responding to a series of exceptional
events, including:
1. The US election and a momentum-fuelled rally in the lead up to
the re-election of President Donald Trump;
2. Global uncertainty around trade policy and growth following
tariff announcements by the new US Administration;
3. A pivot away from US companies by investors and increasing
interest in international stocks, particularly in Europe; and
4. Growing concerns about the level of capital being deployed into
Artificial Intelligence ('AI'), following advances made by Chinese company
DeepSeek.
The run up to the US election and President Trump's victory created an
environment in which equity markets disconnected from fundamentals, and
momentum became the main driver of stock returns. Since the fourth quarter of
2024, investors became much more focussed on short term gains, rather than
considering whether current share prices accurately reflected company
valuations. This surge in 'animal spirits' led to the outperformance of many
of the kind of lower quality companies we avoid, particularly those in
cyclical sectors (for example banks and energy) which were perceived to be
likely beneficiaries of the new US Administration's deregulation and
stimulative policy initiatives.
However, as we moved through 2025, growing uncertainty around President
Trump's policy agenda started to impact both corporate and consumer confidence
leading to concerns about economic growth. At the start of 2025, many
investors felt confident that a new Republican administration would amplify
the theme of US exceptionalism. However, this translated into an aggressive
trade policy exemplified by the 'Liberation Day' tariff measures announced in
April. In response, fears of stagflation prompted a sell-off in equity
markets and a rise in US Treasury yields. As a result of this market
volatility, the US Administration softened its approach, pausing reciprocal
tariffs for 90 days to allow time for negotiations and striking an
in-principle trade deal with China. These moves helped calm investors, and
equity markets recovered towards the end of Q2 2025, but investor sentiment is
still tinged with uncertainty.
Nowhere were the implications of US trade policy more widely felt than in
Europe. President Trump's rhetoric around defence and trade policy galvanised
European policymakers into action. Germany's response was especially
noteworthy. It instituted major constitutional reforms, resulting in a EUR
500bn spending package dedicated to defence and infrastructure investment over
12 years. This amounts to a massive 11.6% of Germany GDP, which is forecast
to add c.2 percentage points to growth in Europe's largest economy over 2026
and 2027. Several other European governments followed Germany's lead and also
committed to substantial increases in defence spending. This show of regional
unity sparked a rally in European defence and industrial stocks. However, in
our view, some of this enthusiasm may prove misguided unless other large
European economies like France, Italy, and Spain also commit to higher fiscal
spending.
The other key event of 2025 has been the emergence of DeepSeek, a Chinese AI
company that has developed its own large language models ('LLMs') at a
fraction of the cost of its US competitors. By late 2024, the US's
'Magnificent 7' big technology companies were facing questions as to whether
their capital expenditure on AI would yield meaningful returns, so when
DeepSeek unveiled its LLM capabilities on older chip models, technology
stocks, particularly semiconductor manufacturers, saw a sharp reversal. This
sell-off was exacerbated by signs of a lull in data centre spending and fears
regarding the potential impact of tariffs.
However, after a significant sell-off, tech stocks rebounded in the final
three months of our financial year. Whilst US policy remained a source of
volatility, markets put much of this behind them as companies reported decent
earnings, with particularly strong results from the Magnificent 7. We continue
to have confidence in the structural trend towards AI adoption, and its
potential to underpin economic growth, productivity increases, and market
gains. We will touch more on this topic when we discuss performance and
positioning below, with reference to specific stocks.
Performance, longer term and over the past year
The factors that have influenced the market over the past year are all
reverberations of the particularly volatile and unusual conditions that have
confronted investors since the turn of the decade. We have seen the breakout
of war, a global pandemic and the return of inflation and higher interest
rates, along with increasing global policy uncertainty and major advances in
technology. We have also experienced two strong growth markets, in 2020 and
2023, separated by a sharp value rotation. Then, as we entered 2025, we saw
the outperformance of momentum driven stocks.
Since the current management team has led the portfolio, positive excess
returns have been generated across a variety of market environments, driven by
investments in both the US and international markets. While our long-term
performance record remains strong, our inherent focus on fundamentals and
valuations can lead to underperformance in the kind of market conditions we
have seen over the past year, when investors respond to shorter-term momentum
effects. In addition, there have been stocks where inflections in performance
have made buy and sell decisions more challenging. This shorter-term
performance is disappointing, but we have certainly taken lessons from it.
We maintain our conviction that our investment process is robust and capable
of generating good ideas and strong returns over the longer term.
Turning to the year under review, there are a handful of key sectors that
drove performance over the 12 months. Our positioning in defensive names was
supportive, as was our stock selection in some higher growth tech and other
semiconductor companies, while our stock selection in healthcare and European
luxury names detracted.
During the latter half of 2024 and early in 2025, we were predominantly
leaning into two key areas; the portfolio was overweight in less economically
sensitive defensive names and higher growth semiconductor names, while being
underweight in lower growth cyclical sectors. We expressed our defensive view
primarily through sectors such as high-quality financials, payment companies,
and the utilities sector. In Q1 2025's difficult market conditions, these
names provided ballast to the portfolio. Within financials, we favour stock
exchanges and asset-light financial services companies, and these delivered
positive returns. For example, Deutsche Boerse, the German-listed stock
exchange, returned almost 40% over the period and was among our top
contributors. The company benefitted from market volatility and delivered
strong results, coupled with a generous share buyback programme. Hong Kong
Exchanges also performed well. Outside of stock exchanges, Munich Re, the
German reinsurance company also contributed to returns.
Our positioning in high-growth names has largely served the portfolio well,
despite their volatility. For example, Meta Platforms (formerly Facebook) was
amongst the leading contributors. The company is very astute in its efforts to
monetise its social media platforms, including via the use of AI. The
business has outperformed its peers in the high-growth part of the market,
thanks to its competitive position in the digital advertising and media space,
and resultant strong free cash flow generation. Our underweight to Alphabet
(formerly Google) also enhanced relative returns. In our view, the search
engine giant's pre-eminent position could be eroded by advances in AI and
LLM-style applications. Indeed, these factors are already leading to mixed
financial results. Our relative position, with higher conviction in Meta
versus Alphabet, underscores that selectivity remains key even within the
'Magnificent 7' cohort.
Semiconductor manufacturers and the related supply chain have proved a more
challenging space. While our holdings of Taiwan Semiconductor Manufacturing
('TSMC') and NVIDIA returned 17% and 18% respectively (in sterling terms) over
the financial year, other names in this sector struggled. We had previously
been positive on the memory chip space and expressed this through names such
as South Korean chip manufacturer SK Hynix. Advances in AI-related computing
led us to anticipate greater demand for more powerful memory chips, which
would benefit these businesses. However, the memory chip sector proved more
volatile than expected and we exited the position in SK Hynix in late 2024.
The healthcare sector has also proved difficult for us and our stock selection
here was negative overall. Our overweight to Danish pharmaceutical company
Novo Nordisk detracted. The company endured a testing period after several
years of very strong performance fuelled by demand for its obesity treatments.
Disappointing clinical trials of a new weight loss drug, Cagri Sema, resulted
in substantial negative sentiment around the stock, while its strong
competitive position in the weight loss segment is being eroded by similar
treatments from other suppliers. The health services and insurance subsector
has also faced a tough period, which has impacted our holding in UnitedHealth
Group. Despite its strong track record of managing industry challenges, the
company faced a series of setbacks that increased costs and medical loss
ratios. We trimmed the position after its initial decline, but it remains an
active, albeit much smaller, holding underlining the caution we have around
the name.
Our overweight position in LVMH Moët Hennessy Louis Vuitton, the European
luxury fashion business was also problematic. In our view, this company has
one of the world's best portfolios of luxury brands. We were attracted by
a compelling valuation following last year's weakness, which was driven by
slowing demand from Chinese consumers. Our investment thesis was predicated on
an eventual recovery in demand. However, this rebound has not materialised. At
the same time, the stock came under further pressure due to the threat of
tariffs and controversy over workplace practices in two of its brands. We
trimmed this position from a meaningful overweight and have drawn a key lesson
from this experience - that it is important to manage the size of positions
in names that may offer a compelling valuation but are vulnerable to
controversy and factors that are potentially detrimental to investment
sentiment.
Market outlook and positioning for 2025
Following a period of such market dislocation, we believe that stock picking
across our global investment universe of around 2,500 stocks is more
attractive and potentially rewarding than previously, and we see many
well-priced opportunities. The Company has exposure to several long-term
trends, such as the rapid adoption of AI tools and cloud computing, which we
expect will drive the market over the medium to long term. We have exposure to
these themes via holdings such as TSMC and Meta in the technology space.
However, we are cautious about the near-term outlook and persistent market
volatility, and these factors have also influenced positioning.
In summary, we continue to be exposed to areas of structural growth but have
repositioned the portfolio to ensure balance between cyclical and defensive
companies. Specifically, we increased our exposure to higher quality cyclical
stocks adding 5.5% to the position and closing the underweight
(5% underweight as of 31st December 2024), via top ups to several names,
including Eaton, the US domiciled power management company, and Trane
Technologies, a US domiciled company focused on heating, ventilation, and air
conditioning and refrigeration systems. At the same time, we reduced our
overweight to defensive stocks via trims to names such as Deutsche Boerse and
Munich Re taking the overall position in defensives now to a 2% underweight
(7% overweight as of 31st December 2024).
Regardless of the prevailing market environment and any further market
volatility that may be induced by US policy measures, we retain our conviction
in the ability of stock selection to generate returns. We will continue our
search for companies that offer superior quality earnings and growth
prospects, at attractive valuations, and we are confident of our ability to
maintain our long-term track record of positive excess returns for
shareholders.
For and on behalf of the Investment Manager
Helge Skibeli | James Cook | Tim Woodhouse
Portfolio Managers
30th September 2025
PRINCIPAL RISKS
The Board has overall responsibility for reviewing the effectiveness of the
system of risk management and internal control which is operated by the
Manager and the Company's third-party service providers. Through delegation to
the Audit Committee, the Company's ongoing risk management process is designed
to identify, evaluate and mitigate the significant risks that the Company
faces.
In order to monitor and manage risks facing the Company, with the assistance
of the Manager, the Audit Committee maintains a risk matrix, which, as part
of the risk management and internal controls process, details the principal
and emerging risks that have been identified to face the Company at any given
time, together with measures put in place to monitor, manage or mitigate
against them as far as practicable. The Audit Committee considers the
Company's risk matrix at each meeting, and furthermore holds a third meeting
each year dedicated to a thorough review of the risk matrix.
The risk matrix sets out the risk, which is then rated by the likelihood of
occurrence and possible severity of impact. The Directors, through the Audit
Committee, confirm that they have carried out a robust assessment of the
principal and emerging risks facing the Company, including those that would
threaten its business model, future performance, solvency or liquidity.
The principal and emerging risks facing the Company, how they have changed
during the year, the mitigating activities in place, and how the Board aims to
manage or mitigate these risks are set out below.
An upwards arrow, stable or downwards arrow has been included to show if the
risk level has heightened, remained stable or reduced since it was reported in
last year's Annual Report and Financial Statements.
Change in risk
status during
Principal risk Description Mitigating activities the year
Market and geopolitical
Market Market risk is the possibility that the Company's investments will suffer The Board and Manager monitor and review these market risks and their áâ
losses as a result of factors that affect the overall performance of the potential impact on the portfolio. This is a risk that investors take having
entire market simultaneously, i.e. systematic risk. This market risk invested into a global equities fund. The Board receives regular reports from The Board's assessment of this risk remains high, albeit unchanged from the
comprises three elements - equity market risk, currency risk and interest rate the Manager regarding market outlook and gives the Portfolio Managers previous year, due to the continuing uncertainty and volatility in the
risk. In addition, the Board is cognisant of the increased threat of a discretion over acceptable levels of gearing and/or cash. In addition, there markets.
polycrisis, i.e. the simultaneous occurrence of several events which interact is the recognition of the need for an effective response to the multifaceted
such that, the overall impact exceeds the sum of each part. challenges posed by a polycrisis by proactive risk management,
diversification, robust contingency planning, and a focus on sustainability
and stakeholder engagement.
Geopolitical leading to a risk of global conflict Geopolitical risk is the potential for political, socio-economic and cultural It is not possible to directly control this risk. However, it can be managed áâ
events and developments to have an adverse effect on the value of the to some extent by diversification of investments and by regular communication
Company's assets. The Company and its assets may be impacted by geopolitical with the Manager about in-house research, matters of investment strategy and The Board's assessment of this risk remains high, albeit unchanged from the
instability, in particular concerns over global economic growth. There appears portfolio construction, which will directly or indirectly include an prior year, owing to continued geopolitical tensions and conflicts around the
to be an increasing risk to market stability and investment opportunities from assessment of these risks. In addition, an increase in volatility can present world, including the war in Ukraine, China/US tensions and the conflict in the
the increasing number of worldwide geopolitical conflicts at present, not an opportunity for our Portfolio Managers to invest in quality stocks at Middle East.
least as a result of potential trade tariffs and the resulting retaliatory attractive valuations.
measures. The implications of tariffs are a reduction in global trade and
a negative impact on economic growth, leading to reduced earning forecasts
for companies across the globe.
Cyber security
Cyber Disruption to, or failure of, the Manager's accounting, dealing or payments The Manager has assured the Directors that the Company benefits directly or áâ
systems or the Custodian's or Depositary's records from a cyber attack could indirectly from all elements of JPMorgan's cybersecurity programme.
security prevent accurate reporting and monitoring of the Company's financial position.
The Board's assessment of this risk remains high, albeit unchanged from the
This threat has increased with advances in computing power that has seen The information technology controls around the physical security of JPMorgan's prior year. To date, the Manager's, Registrar's, and the Depositary's
a greater use of Artificial Intelligence ('AI'). In addition to threatening data centres, security of its networks and security of its trading cybersecurity arrangements have proven robust and the Company has not been
the Company's operations, such an attack is likely to raise reputational applications are tested and reported on by independent auditors every impacted by any cyber attacks threatening its operations.
issues which may damage the Company's share price and reduce demand for its six months against industry standards. On an annual basis, the Board receives
ordinary shares. The Company is dependent on third-party service providers for a presentation from representatives of JPMorgan on its cybersecurity
the provision of all of its services and systems, especially those of the programme.
Manager and the Depositary.
The Board regularly reviews the services of the Manager and third-party
service providers and receives regular control reports on the Manager and its
associates, as well as the Registrar. In addition, the Board will carefully
monitor developments in AI, in conjunction with the Manager, to consider how
this risk might threaten the Company's activities.
Investment and Strategy
Investment and strategy An inappropriate investment strategy, or one that is poorly implemented - such The Board mitigates this risk through its investment policy and guidelines, áâ
as in thematic exposure, sector allocation, stock selection, concentration of which are monitored and reported on regularly by the Manager. The Board
holdings, factor risk exposure, the level of gearing, or the degree of total monitors the implementation and results of the investment process with the The Board's assessment of this risk remains stable, and unchanged from the
portfolio risk - may lead to underperformance against the Company's Benchmark Portfolio Managers and regularly reviews and monitors the Company's objective prior year. The Company's performance remains ahead of the Benchmark over five
and peer companies, resulting in the Company's ordinary shares trading at a and investment policy and strategy; the investment portfolio and its and ten years.
wider discount to NAV per share. performance; the level of discount/premium to NAV at which the ordinary shares
trade; and movements in the share register.
The Investment Manager employs the Company's gearing within a strategic range
set by the Board.
The Board holds a separate meeting devoted to the Company's strategy each
year.
Operational
Operational Loss of key staff by the Manager, their expertise and ability to source and The Board keeps the services of the Manager and third-party service providers áâ
advise appropriately on investments, could affect the performance of the under continuous review, and the Management Engagement Committee undertake a
Company. formal evaluation of their performance on an annual basis. The Board's assessment of this risk remains stable, and unchanged from the
prior year.
Disruption to, or failure of, the Manager's accounting, dealing or payments Details of how the Board monitors the services provided by the Manager and its
systems or the depositary's or custodian's records could prevent accurate associates, and the key elements designed to provide effective internal The Board continues to monitor the outsourced services and an annual appraisal
reporting and monitoring of the Company's financial position. control are included within the Risk Management and Internal Control section of the performance, and ongoing appointment, of the Manager and the Company's
of the Corporate Governance Report. third-party service providers is undertaken by the Management Engagement
The Company is dependent on third-party service providers for the provision of
Committee.
services and systems, especially those of the Manager and the Depositary to The Audit Committee receives a summary of the findings from the independently
run the business. and as such disruption to, or a failure of, those systems audited reports on the Manager's and other key third-party service providers'
could lead to a failure to comply with law and regulations leading to internal controls.
reputational damage and/or financial loss.
The Company is subject to an annual external audit. Both the Manager and its
third-party service providers have robust business continuity plans.
Change Key
ã Heightened áâ Stable ä Reduced
In the 2024 Annual Report, the Audit Committee agreed to remove Climate Risk
as a principal risk to the Company, however, it remains on the Company's risk
matrix. While the Audit Committee recognises that climate risk can have
significant long-term consequences, in reaching this decision, the Audit
Committee has considered the Company's current vulnerability and exposure to
climate risk, both at the company level and the portfolio level, in terms of
the impact on its strategy, reputation, financials, and operations. The
decision to remove this reflects the Audit Committee's view that climate risk
is to be considered over the longer-term and its current specific impact on
the Company is uncertain and difficult to quantify at this time. Furthermore,
the Audit Committee is aware that the impact of climate risk on the Company
can be mitigated to some degree through the diversification of the portfolio
and that this risk is already considered in the valuation process.
The Audit Committee has also noted that, as set out in the full annual report,
while the Investment Manager considers financially material ESG analysis in
its investment process, climate risk management is a secondary consideration
to the risk management strategy. This reflects the reality of the level of
influence that the Investment Manager has in its engagement with portfolio
companies on climate risk, particularly in the context of climate impact and
decarbonisation, as well as its fiduciary duty to balance risk and returns.
The Audit Committee further considers that currently, there has been no direct
impact of climate risk on the operations of the Manager, Investment Manager
and the Company's key third-party service providers.
EMERGING RISKS
Emerging Risks
The AIC Code of Corporate Governance (the 'AIC Code') requires the Board to
put in place procedures to identify and manage emerging risks facing the
Company. At each meeting, the Board, through the Audit Committee, considers
whether any emerging risks, which it defines as potential trends, sudden
events or changing risks which are characterised by a high degree of
uncertainty in terms of occurrence probability and possible impacts on the
Company, have arisen. Horizon scanning and ongoing monitoring of the business
environment, industry trends, and regulatory changes helps the Audit Committee
to identify emerging risks. Once identified, as the impact of emerging risks
is understood, they may be entered on the Company's risk matrix and mitigating
activities considered as necessary. Previously considered emerging risks have
either been removed from the risk matrix as they are no longer considered
potential risks to the Company or escalated to a principal risk. At the time
of the publication of this report, the emerging risks identified as facing the
Company are set out below.
Change in risk
status during
Emerging risk Description Mitigating activities the year
Increasing prevalence of Active Exchange Traded Funds ('ETFs') at a time of Active ETFs are low cost, liquid vehicles that can provide investors with The Company takes advantage of the benefits of the investment trust structure, This has been identified as a new emerging risk.
faltering demand for investment companies actively managed exposure to asset classes such as global equities. In which cannot easily be accessed by ETFs, such as the deployment of gearing and
addition, discount volatility is alleviated to a significant extent, thereby providing investors with an enhanced dividend. Furthermore, the Company's
addressing one of the key downsides of investment trusts. objective is to generate investment returns which materially exceed, on a
cumulative basis, that of the Company's Benchmark, which should in turn
support demand for the Company's ordinary shares.
This is supported by targeted marketing spend and participation in
industry-wide initiatives to promote investment companies.
Potentially material changes to the UK tax and investment regime Future changes to both the tax regime and current regulations on savings may The Company can do very little to directly influence the policies of the UK This has been identified as a new emerging risk.
have a detrimental impact on UK investors as well as demand for the Company's Government. However, it is a member of the Association of Investment Companies
shares. and the Company's Manager is represented on the Investment Association, both
are bodies that seek to inform public policy in this area. The Company also
operates a share buy back programme as required to alleviate discount
volatility.
TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES
Details of the management contract are set out in the Directors' Report in the
full annual report. The management fee payable to the Manager for the year,
including management fee waivers in respect of the combination with HINT, was
£9,330,000 (2024: including management fee waiver in respect of the
combination with MATE, was £7,815,000), of which £794,000 of waiver (2024:
£496,000 of waiver) was outstanding at the year end.
Included in administration expenses in note 6 in the full annual report are
safe custody fees amounting to £149,000 (2024: £117,000) payable to JPMorgan
Chase Bank N.A. of which £30,000 (2024: £35,000) 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 £nil
(2024: £nil) of which £nil (2024: £nil) was outstanding at the year end.
Handling charges on dealing transactions amounting to £52,000 (2024:
£66,000) were payable to JPMorgan Chase Bank N.A. during the year of which
£16,000 (2024: £13,000) was outstanding at the year end.
Fees amounting to £20,000 (2024: £21,000) were receivable from securities
lending transactions during the year. JPMorgan Chase Bank, N.A. commissions in
respect of such transactions amounted to £2,000 (2024: £2,000).
The Company invests in the JPMorgan GBP Liquidity Fund, a triple A-rated money
market fund managed by JPMorgan Asset Management (Europe) S.à r.l. At the
year end, this was valued at £174.8 million (2024: £158.9 million). Interest
amounting to £6,924,000 (2024: £7,750,000) was receivable during the year of
which £nil (2024: £nil) was outstanding at the year end.
At the year end, total cash of £4,457,000 (2024: £19,379,000) was held with
JPMorgan Chase Bank, N.A. A net amount of interest of £41,000 (2024:
£31,000) was receivable by the Company during the year, of which £nil (2024:
£nil) was outstanding at the year end.
Full details of Directors' remuneration and shareholdings in the Company can
be found and in note 6 in the full 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 regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law, the Directors have elected to prepare the
financial statements in accordance with applicable law and United Kingdom
Accounting Standards, comprising Financial Reporting Standard 102 the
'Financial Reporting Standard Applicable in the UK and Republic of Ireland'
(FRS 102). Under Company law the Directors must not approve the financial
statements unless they are satisfied that, taken as a whole, the annual report
and financial statements are fair, balanced and understandable, provide the
information necessary for shareholders to assess the Company's performance,
business model and strategy and that they give a true and fair view of the
state of affairs of the Company and of the total return or loss of the Company
for that period. 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 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.
The Directors are responsible for keeping proper 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 to
enable them to ensure that the financial statements comply with the Companies
Act 2006. They 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 financial statements are published on the
www.jpmglobalgrowthandincome.co.uk website, which is maintained by the
Company's Manager. The maintenance and integrity of the website maintained by
the Manager is, so far as it relates to the Company, the responsibility of the
Manager. The work carried out by the auditor does not involve consideration of
the maintenance and integrity of this website and, accordingly, the auditor
accepts no responsibility for any changes that have occurred to the financial
statements since they were initially presented on the website. The financial
statements are prepared in accordance with UK legislation, which may differ
from legislation in other jurisdictions.
Under applicable law and regulations, the Directors are also responsible for
preparing a Directors' Report, Strategic Report and Directors' Remuneration
Report that comply with that law and those regulations.
Each of the Directors, whose names and functions are listed in the full annual
report confirm that, to the best of their knowledge:
• the financial statements, which have been prepared in
accordance with applicable law and United Kingdom Accounting Standards,
comprising Financial Reporting Standard 102 the 'Financial Reporting Standard
Applicable in the UK and Republic of Ireland' (FRS 102), give a true and fair
view of the assets, liabilities, financial position and return or loss 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 that it faces.
The Board confirms that it is satisfied that the annual report and financial
statements taken as a whole is fair, balanced and understandable and provides
the information necessary for shareholders to assess the Company's position
and performance, business model and strategy.
For and on behalf of the Board
James Macpherson
Chairman
1st October 2025
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30th June
Year ended 30th June 2025 Year ended 30th June 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value
through profit or loss - 13,829 13,829 - 536,703 536,703
Net foreign currency exchange losses - (11,476) (11,476) - (10,816) (10,816)
Income from investments 46,212 87 46,299 38,317 - 38,317
Interest receivable and similar income 6,985 - 6,985 7,802 - 7,802
Gross return 53,197 2,440 55,637 46,119 525,887 572,006
Management fee (2,332) (6,998) (9,330) (1,954) (5,861) (7,815)
Other administrative expenses (1,818) - (1,818) (1,410) - (1,410)
Net return/(loss) before finance costs and taxation 49,047 (4,558) 44,489 42,755 520,026 562,781
Finance costs (1,301) (3,902) (5,203) (1,277) (3,830) (5,107)
Net return/(loss) before taxation 47,746 (8,460) 39,286 41,478 516,196 557,674
Taxation (5,440) 143 (5,297) (5,611) 156 (5,455)
Net return/(loss) after taxation 42,306 (8,317) 33,989 35,867 516,352 552,219
Return/(loss) per share 8.27p (1.63)p 6.64p 8.35p 120.20p 128.55p
All revenue and capital items in the above statement derive from continuing
operations. During the period, the Company acquired the assets and liabilities
of Henderson International Income Trust plc ('HINT') following a scheme of
reconstruction (2024: the Company acquired the assets of JPMorgan Multi-Asset
Growth & Income plc ('MATE')). No other 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. Net return/(loss) after taxation represents the profit/(loss) for
the year and also the Total Comprehensive Income.
STATEMENT OF CHANGES IN EQUITY
Called up Capital
share Share redemption Other Capital Revenue
capital premium reserve reserve(1,2) reserves(2) reserve(2) Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30th June 2023 19,752 1,167,916 27,401 - 597,839 - 1,812,908
Issue of new ordinary shares 3,588 366,954 - - - - 370,542
Repurchase of new ordinary shares
into Treasury - - - - (4,913) - (4,913)
Issue of ordinary shares from Treasury - 243 - - 4,913 - 5,156
Issue of new ordinary shares in respect of
the combination with MATE 677 73,259 - - - - 73,936
Costs in relation to issue of
new ordinary shares - (990) - - - - (990)
Cancellation of share premium - (1,221,808) - 1,221,808 - - -
Proceeds from share forfeiture(3) - - - - 1,231 - 1,231
Net return - - - - 516,352 35,867 552,219
Dividends paid in the year (note 2) - - - - (38,280) (36,222) (74,502)
Forfeiture of unclaimed dividends(3) (note 2) - - - - - 355 355
At 30th June 2024 24,017 385,574 27,401 1,221,808 1,077,142 - 2,735,942
Issue of new ordinary shares 1,865 213,455 - - - - 215,320
Repurchase of ordinary shares into Treasury - - - (14,571) - - (14,571)
Issue of ordinary shares from Treasury - - - - 5,569 - 5,569
Issue of new ordinary shares in respect of
the combination with HINT 3,213 339,420 - - - - 342,633
Costs in relation to issue of
new ordinary shares - (952) - - - - (952)
Net return - - - - (8,317) 42,306 33,989
Dividends paid in the year (note 2) - - - - (95,403) (42,306) (137,709)
At 30th June 2025 29,095 937,497 27,401 1,207,237 978,991 - 3,180,221
(1) Created following approval by the High Court on 27th February 2024
to cancel the share premium account as at close of business on 2nd November
2023.
(2) These reserves form the distributable reserves of the Company and
may be used to fund distributions to shareholders.
(3) During the year ended 30th June 2024, the Company undertook an
Asset Reunification Programme to reunite inactive shareholders with their
ordinary shares and unclaimed dividends. In accordance with the Company's
Articles of Association, the Company exercised its right to forfeit the shares
belonging to shareholders that the Company, through its former registrar, has
been unable to trace for a period of 12 years or more. These ordinary shares
were sold in the open market by the registrar. The proceeds, net of costs,
were returned to the Company. In addition, any unclaimed dividend older than
12 years from the date of payment of such dividend were forfeited and returned
to the Company.
STATEMENT OF FINANCIAL POSITION
At 30th June
30th June 2025 30th June 2024
£'000 £'000(1)
Fixed assets
Investments held at fair value through profit or loss 3,159,956 2,707,857
Current assets
Derivative financial assets 10,609 6,162
Debtors 23,041 9,584
Current assets investments(1) 174,752 158,877
Cash at bank(1) 4,457 19,379
212,859 194,002
Current liabilities
Creditors: amounts falling due within one year (25,811) (18,313)
Derivative financial liabilities (7,775) (8,966)
Net current assets 179,273 166,723
Total assets less current liabilities 3,339,229 2,874,580
Creditors: amounts falling due after more than one year (159,008) (138,455)
Provision for liabilities - (183)
Net assets 3,180,221 2,735,942
Capital and reserves
Called up share capital 29,095 24,017
Share premium 937,497 385,574
Capital redemption reserve 27,401 27,401
Other reserve 1,207,237 1,221,808
Capital reserves 978,991 1,077,142
Revenue reserve - -
Total shareholders' funds 3,180,221 2,735,942
Net asset value per share 548.1p 569.6p
( )
(1) Prior year comparatives have been restated as explained further in
note 1(a).
STATEMENT OF CASH FLOWS
For the year ended 30th June
Year ended Year ended
30th June 2025 30th June 2024
£'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 44,489 562,781
Adjustment for:
Net gains on investments held at fair value through profit or loss (13,829) (536,703)(1)
Net foreign currency exchange losses 11,476 10,816
Dividend income (46,299) (38,317)
Interest and other income (6,985) (7,802)
Realised (losses)/gains on foreign currency exchange transactions (587) 49
Increase in accrued income and other debtors (340) (669)(2)
Increase/(decrease) in accrued expenses 231 (191)
Net cash outflow from operating activities before dividends, interest and (11,844) (10,036)
taxation
Dividends received 40,785 32,018
Interest and other income received 7,535 7,217
Overseas tax recovered 828 65
Capital gains tax paid (40) (6)
Net cash inflow from operating activities 37,264 29,258
Purchases of investments (3,757,214) (1,940,745)
Sales of investments 3,592,775 1,614,163
Settlement of forward currency contracts (16,211) (10,777)
Costs in relation to acquisition of assets (855) (141)
Net cash outflow from investing activities (181,505) (337,500)
Dividends paid (137,709) (74,502)
Forfeiture of unclaimed dividends - 355
Issue of new ordinary shares, excluding the combinations 216,038 369,824
Net cash acquired following the combination with HINT 82,897 -
Net cash acquired following the combination with MATE - 35,726
Issue of ordinary shares from Treasury 5,569 5,156
Repurchase of ordinary shares into Treasury (14,566) (4,903)
Costs in relation to issue of new ordinary shares (952) (990)
Proceeds from share forfeiture - 1,231
Interest paid (6,080) (6,120)
Net cash inflow from financing activities 145,197 325,777
Increase in cash and cash equivalents 956 17,535
Cash and cash equivalents at start of year 178,256 160,708
Foreign currency exchange movement (3) 13
Cash and cash equivalents at end of year 179,209 178,256
Cash and cash equivalents consist of:
Cash at bank 4,457 19,379
Current asset investment in JPMorgan GBP Liquidity Fund 174,752 158,877
Total 179,209 178,256
( )
(1) Restated to show the net gains on investment held at fair value
through profit or loss as presented in the Statement of Comprehensive Income
for the year ended 30th June 2024.
(2) Restated to show the increase in other debtors as at 30th June
2024.
The above restatements only apply to the presentation on the Statement of Cash
Flows.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30th June 2025.
1. Accounting policies
(a) Basis of accounting
The Company is a listed public limited company incorporated in England and
Wales. The registered office is detailed in the full annual report.
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. In preparing these financial statements the Directors
have considered the impact of climate change as set out on in the full annual
report, and have concluded that it does not have a material impact on the
Company's investments. In line with FRS 102 investments are valued at fair
value, which for the Company are quoted bid prices for investments in active
markets at the 30th June 2025 and therefore reflect market participants view
of climate change risk.
The Directors' Report forms part of these financial statements.
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 and the conflict in the
Middle East, and in particular the impact of these geopolitical risks on the
going concern and viability of the Company. Consideration was also given to
the impact of the implementation of the US Administration's global tariffs on
markets. They have considered the operational resiliency of its key
third-party service providers, including the Manager. The Directors have also
reviewed the Company's compliance with its debt covenants in assessing the
going concern and viability of the Company. The Directors have reviewed income
and expense projections to 31st October 2026 and the liquidity of the
investment portfolio in making their assessment. Further details of Directors'
considerations regarding this are given in the Chairman's Statement,
Investment Manager's Report, Going Concern Statement, Viability Statement and
Principal Risks Statement within this Annual Report.
The policies applied in these financial statements are consistent with those
applied in the preceding year.
The 'Cash and cash equivalents' line item in the Statement of Financial
Position has been restated to 'Cash at bank' and 'Current assets investments'.
This adjustment separately reports the investment in the JPMorgan GBP
Liquidity Fund as 'Current assets investments' and 'Cash at bank', in
compliance with the statutory format required by the Companies Act 2006. This
change does not affect any other line items in the Statement of Financial
Position or the total current assets
Issue of ordinary shares pursuant to a Scheme of Reconstruction of Henderson
International Income Trust plc ('HINT') with the Company (the 'Combination')
On 28th May 2025, the Company issued new ordinary shares to the shareholders
of HINT in consideration for the receipt by the Company of assets and
liabilities pursuant to a scheme of reconstruction and liquidation of HINT.
The Directors have evaluated the substance and nature of the assets and
activities of HINT to determine whether this acquisition constitutes the
acquisition of a business. In this instance, the acquisition is not judged to
be a business acquisition and, therefore, has not been treated as a business
combination. Instead, the cost to acquire the assets and liabilities of HINT
has been allocated between the acquired identifiable assets and liabilities
based on their relative fair values at the acquisition date, without
attributing any amount to goodwill or deferred taxes. Investments, cash,
accrued income, and secured notes were transferred from HINT. All assets and
liabilities were acquired at their fair value. The formula asset value of the
assets and liabilities received, in exchange for ordinary shares issued by the
Company, have been recognised in share capital and share premium, as shown in
Statement of Changes in Equity. Direct costs in respect of the ordinary shares
issued have been recognised in share premium, whereas other professional costs
in relation to the Combination have been recognised as transaction costs
included within gains and losses on investments held at fair value through
profit or loss. The Manager's contribution towards the costs of the
transaction has been recognised as a management fee waiver through the
Statement of Comprehensive Income.
2. Dividends
(a) Dividends paid and declared
2025 2024
Pence £'000 Pence £'000
Dividend paid
Fourth interim dividend for prior year 4.61 22,091 4.25 16,712
First interim dividend 5.70 28,063 4.61 18,382
Second interim dividend 5.70 28,618 4.61 18,909
Third interim dividend 5.70 29,445 4.61 20,499
Fourth interim dividend paid in current year 5.70 29,492 - -
Total dividends paid in the year 27.41 137,709 18.08 74,502
Forfeiture of unclaimed dividends - - - (355)
Net dividends 27.41 137,709 18.08 74,147
Dividend declared
Fourth interim dividend - - 4.61 22,091
(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 dividends
declared in respect of the financial year, shown below. The revenue available
for distribution by way of dividend for the year is £42,306,000 (2024:
£35,867,000). The revenue available was reduced to £nil (2024: £nil) after
payment of the second interim dividend (2024: second interim) and the
remaining amount has been drawn from the capital reserves.
2025 2024
Pence £'000 Pence £'000
First interim dividend 5.70 28,063 4.61 18,382
Second interim dividend 5.70 28,618 4.61 18,909
Third interim dividend 5.70 29,445 4.61 20,499
Fourth interim dividend 5.70 29,492 4.61 22,091
Total 22.80 115,618 18.44 79,881
Part of the second interim, plus all of the third and fourth interim dividends
paid, have been funded from the Company's capital reserves.
3. Return per share
2025 2024
£'000 £'000
Return per share is based on the following:
Revenue return 42,306 35,867
Capital (loss)/return (8,317) 516,352
Total return 33,989 552,219
Weighted average number of ordinary shares in issue 511,582,151 429,567,452
Revenue return per share 8.27p 8.35p
Capital (loss)/return per share (1.63)p 120.20p
Total return per share 6.64p 128.55p
The basic return per share is the same as the diluted return per share.
4. Net asset value per share
The net asset value per ordinary share and the net asset value attributable to
the ordinary shares at the year end are shown below. These were calculated
using 580,206,569 (2024: 480,337,308) ordinary shares in issue at the year end
(excluding Treasury shares).
2025 2024
Net asset value Net asset value
attributable attributable
£'000 pence £'000 pence
Net asset value - debt at par value 3,180,221 548.1 2,735,942 569.6
£82.8 million 5.75% secured bonds - April 2030
Add back: amortised cost 87,645 15.1 88,684 18.5
Deduct: fair value (87,202) (15.0) (86,170) (17.9)
£30 million 2.93% senior secured notes - January 2048
Add back: amortised cost 29,862 5.1 29,856 6.2
Deduct: fair value (19,371) (3.3) (20,492) (4.3)
£20 million 2.36% senior secured notes - March 2036
Add back: amortised cost 19,922 3.4 19,915 4.1
Deduct: fair value (15,330) (2.6) (15,294) (3.2)
€30 million 2.43% senior secured notes - April 2044
Add back: amortised cost 21,579 3.7 - -
Deduct: fair value (21,312) (3.7) - -
Net asset value - debt at fair value 3,196,014 550.8 2,752,441 573.0
Status of results announcement
2025 Financial Information
The figures and financial information for 2025 are extracted from the Annual
Report and Financial Statements for the year ended 30th June 2025 and do not
constitute the statutory accounts for that year. The Annual Report and
Financial Statements include the Report of the Independent Auditor which is
unqualified and does not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006. The Annual Report and Accounts will
be delivered to the Register of Companies in due course.
2024 Financial Information
The figures and financial information for 2024 are extracted from the
published Annual Report and Financial Statements for the year ended 30th June
2024 and do not constitute the statutory accounts for the year. The Annual
Report and Financial Statements have been delivered to the Registrar of
Companies and included the Report of the Independent Auditor which was
unqualified and did not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006.
JPMORGAN FUNDS LIMITED
2 October 2025
For further information, please contact:
Simon Elliott / Emma Lamb
For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 20 40 20 or +44 1268 44 44 70 (tel:+441268444470)
E-mail: jpmam.investment.trusts@jpmorgan.com
(mailto:jpmam.investment.trusts@jpmorgan.com)
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.jpmglobalgrowthandincome.co.uk
(http://www.jpmglobalgrowthandincome.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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