Final Results

RNS Number : 4484P

JPMorgan Multi-Asset Trust plc

09 June 2020

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN MULTI-ASSET TRUST PLC

ANNOUNCEMENT OF FINAL RESULTS

The Directors of JPMorgan Multi-Asset Trust plc announce the Company's results

for the period ended 29^th February 2020

Legal Entity Identifier:

549300C0UCY8X2QXW762 Information disclosed in accordance with DTR 4.1.

CHAIRMAN'S STATEMENT

Introduction

The Company's objective is to generate income and capital growth through a multi-asset strategy, while seeking to maintain lower levels of volatility than an institutional equity portfolio. Our commitment to this objective is underpinned by the Company's distribution policy, which aims to achieve a yield of 4.0% on the Initial Issue Price of £1.00 per share at the time of the Company's launch in 2018.

Portfolio Performance

The turmoil in global financial markets caused by the Covid-19 pandemic started almost at the end of the Company's annual reporting period to 29th February 2020 and therefore had a relatively small impact on the results contained in this report. As at 29th February 2020, the Company had achieved a positive total return of 5.3% on its net asset value, a slight underperformance of 0.1% against the Company's Reference Index. The Company's Reference Index, comprising the LIBOR one-month sterling rate plus 4.5% per annum, is used instead of a benchmark, since it is considered more closely to reflect the profile of the Company's portfolio.

Up until late February 2020, most commentators were forecasting economic growth, with central bank policies and an easing of US/China trade tensions combining to support a relatively positive outlook. That view was superceded by the crash in global equity markets which began the week commencing 24th February 2020, with the general consensus now expecting a severe recession and a period of unprecedented uncertainty. Further details of the portfolio are provided in the Investment Managers' Report on page 9 of the Company's Annual Report and Financial Statements.

Share Price Performance

The Company recorded a positive share price total return of 6.1% during the 12 months to 29th February 2020. The price of the Company's shares has traded at a discount to net asset value throughout the period, ranging between discounts of 3.1% and 11.1%. On 29th February, 2020, the discount was 7.9%. The Company's share price on 2nd June 2020 (the last practical date before printing this document), was 85.8p per share, a discount to net asset value of 7.2%. Between 1st March, 2020 and 2nd June 2020, the Company's share price has ranged between 102.3p and 69.4p and the discount to net asset value has ranged between 1.4% and 20.4%.

During the 12 months, the Company bought back 165,000 shares. For further details please see the Share Capital section on page 19 of the Company's Annual Report and Financial Statements.

No new shares were allotted during the 12 months ended 29th February 2020.

Revenue and Distributions

During the 12 months to 29th February 2020, the Company's net revenue return after taxation was £3,500,000 (2019: £3,161,000). The Board has declared four interim distributions, each of 1.0p per share, in respect of the financial year to 29th February 2020, making a total of 4.0p per share for the year (2019: 4.00p), equating to a distribution yield of 4.0% on the Initial Issue Price and as forecast in the Company's Prospectus dated 24th January 2018. The Company has not elected to 'stream' any part of these distributions which accordingly have been designated wholly as dividend for tax purposes.

The Board of Directors

The Board comprised five directors during the year under review, but has agreed to reduce its number to four during the course of the current year and to make one change to refresh its residual membership.

Richard Hills, who has been a director since the a Company was launched in 2018 and was also a director of its predecessor company, JPMorgan Income & Capital Trust plc, has decided to retire following the Company's AGM on 2nd July, 2020. Richard has made a valuable contribution to the Board's deliberations during his time as a director and I would like to thank him and to wish him well for the future.

I intend to retire as Chairman and a director as soon as my remaining colleagues have approved a new appointment to the Board. The Company has appointed an independent search consultant Nurole, to identify suitable candidates for this purpose. This process, however, is inevitably subject to delay while the current restrictions on travel and meetings associated with the Covid-19 pandemic remain in place and face to face interviews cannot be arranged. It is most unlikely to be feasible to have made this appointment before the AGM on 2nd July, 2020 and I will therefore retire by rotation at the AGM and stand for re-appointment as a director. Such re-appointment will, I hope, last for no more than three months before a new director is appointed.

I am delighted that the Board has agreed that Sarah MacAulay will take over as Chairman upon my retirement as a director. She, together with Jimmy West and Sian Hansen, will be retiring by rotation and offering themselves for re-election at the AGM on 2nd July, 2020.

In accordance with the AIC 2019 Code of Corporate Governance, endorsed by the Financial Reporting Council, the Company has established a separate Remuneration Committee.

Investment Manager

The performance of the Manager was formally evaluated by the Board. Following this review for the 12 months to 29th February 2020, the Board concluded that the performance of the Manager had been satisfactory and that their services should be retained. In the current financial year, a newly established Management Engagement Committee will review the Company's Management Agreement.

Annual General Meeting

The Company's second AGM will be held at 60 Victoria Embankment, London EC4Y 0JP London at 2.30 p.m. on Thursday, 2nd July 2020.

At the time of writing, the format of the Company's 2020 AGM has had to be changed so that it complies with both the existing Companies Act and the recently introduced legislation which the UK Government introduced to limit the impact of the Covid-19 pandemic, restricting travel and limiting gatherings to no more than two persons. Shareholders are asked to comply with the government's latest Covid-19 pandemic legislation restricting travel and public gatherings and not to attend the AGM. Arrangements will be made by the Company to ensure that the minimum number of two shareholders required to form a quorum for the AGM will attend the meeting in order that the meeting may proceed and the business be concluded. To ensure compliance with Covid-19 pandemic legislation restricting public gatherings, no shareholders (other than the two previously notified shareholders making up the quorum for the AGM) will be permitted to attend the meeting and entry to the building will not be allowed. There will be no presentation from the investment managers, Gareth Witcomb and Katy Thorneycroft, and no refreshments will be provided.

Despite these legal restrictions, the Board is keen to ensure shareholders have the opportunity to hear from the Manager and, accordingly, a presentation from the investment managers will be placed on the Company's website shortly after the AGM. In addition, shareholders are encouraged to raise any questions in advance of the meeting via the contact section of the Company's website www.jpmmultiassettrust.co.uk

The Board strongly encourages all shareholders to submit their votes in advance of the meeting, so that these are registered and recorded at the AGM. Proxy votes can be lodged in advance of the AGM either by post or electronically: detailed instructions are included in the Notes to the Notice of Annual General Meeting on pages 75 to 77 of the Company's Annual Report and Financial Statements.

If there are any changes to the above AGM arrangements, the Company will update shareholders through the Company's website and, as appropriate, through an announcement on the London Stock Exchange.

The Board would like to thank shareholders for their understanding and co-operation at this difficult time. We very much hope that you and your families are safe and well and look forward to meeting with you when, as we all hope, normality has returned.

Outlook

It is difficult, as at the time of writing, to predict the future direction of financial markets with any confidence. The scale of unprecedented disruption to the global economy caused by the Covid-19 pandemic remains uncertain and very much depends upon the timing and nature of any relaxation of the widespread controls over the movement of people, goods and services imposed by national governments.

The Board remains committed to generating income and capital growth through a multi-asset strategy and, in particular, to maintaining a yield of 4% on the Initial Issue Price of £1.00 per share. The Board will, if necessary and provided it is prudent, ensure that this yield is supported by distributions from capital. Since the Company was launched in March 2018, such support has not been necessary because all dividends paid in respect of both the periods ended 28th February 2019 and 29th February 2020 have been fully covered by revenue reserves.

The Company's net asset value as at 2nd June 2020 (the last practical date before printing this document), amounted to 92.5p per share, a decline of 9.9% since the year end on 29th February, 2020. The Board attributes some of this lower than expected decline during the most savage financial bear market since 1929, to the effectiveness of the multi-asset strategy managed by JP Morgan in adherence with the Board's objective of maintaining lower levels of volatility than most institutional equity portfolios. The Board believes that this, together with its dividend policy and the Company's status as a listed Investment Trust with a regular market in its shares, should provide shareholders with a degree of reassurance in relation to the Company's financial position during these uncertain times and its prospects for delivering value over the longer term.

On a personal note, given that this is my last Chairman's statement, I want to thank my colleagues on the Board for their support and to thank our shareholders, some of whom (like myself) have been investors in the Company and its predecessors since 1992. Equity investment is a long term business and I will leave the Board later this year confident that the total return from my shareholding in the Company will show further growth under the skilful husbandry of JP Morgan and the directors over the years ahead.

Sir Laurence Magnus

Chairman

8th June 2020

INVESTMENT MANAGERS' REPORT

Introduction

In this report, we review the Company's investment performance for the year to 29th February 2020. We consider the challenging market environment for the period, notable for international trade tensions, the impact of a slowing global economy and, latterly, the human tragedy and economic catastrophe of the Coronavirus (Covid-19) pandemic. We examine how the Company's diversified portfolio has performed against this backdrop and we look at what could lie ahead over the coming year.

Setting the scene - our investment approach

We seek to achieve the best risk-adjusted returns by investing in a globally diversified portfolio that includes company shares, bonds and other assets. Our aim is to construct a vibrant, balanced portfolio which is flexible with respect to asset class, geography and sector of investments. This flexibility allows us to take advantage of the best opportunities to deliver sustainable income and capital growth to our investors. Our strategy also includes exposure to alternative assets such as infrastructure, which has the potential to offer an attractive source of income and diversification alongside the more traditional asset classes. We take a medium to long-term view of markets, acting on investment themes that we consider appropriate as we navigate the ever-changing macro environment.

Market review: a volatile year, culminating in unprecedented challenges

The first four months of 2019 brought a strong rebound in equity markets, following the sell-off towards the end of 2018. Markets responded favourably to a monetary policy about-turn by the US Federal Reserve (Fed) and other central bank policy makers around the world: with manufacturing output and global corporate earnings sluggish, institutions announced that they would cut rates in an effort to stimulate economic expansion and stave off recession. The Fed, the undisputed driver of global monetary policy, cut interest rates three times in 2019, reversing almost all of 2018's fiscal tightening.

Equities traded sideways through the middle of the year owing to ebbs and flows in the protracted trade negotiations between the US and China and continued deterioration in macroeconomic indicators. The fourth quarter of 2019, however, saw strong performance return across equity markets, driven by a pick-up in business surveys in Europe and US, strength in US employment and tentative agreements on the delay in enforcement of trade tariffs.

From the beginning of the Company's financial year in March 2019 through to September, government bonds reacted as one would expect to weaker economic data, with bond yields broadly tracking the manufacturing surveys to lower levels. Along with the Fed rate cuts, the European Central Bank (ECB) started to expand its balance sheet again.

Towards the end of 2019, the pick-up in the services sector and the resilience of overall employment levels to ongoing weakness in manufacturing helped restore market confidence that recession was not imminent. However, 2020 has brought with it an unprecedented challenge in the form of the Covid-19 pandemic. Just as headwinds from trade policy were beginning to dissipate, the outbreak and spread of this disease has pushed the global economy into a sharp and sudden recession. The speed and depth of this sudden stop to activity is unparalleled as governments around the world grapple to put in place measures to control the spread of the virus.

How has the Company performed over the year under review?

The Company delivered a positive return on net assets of +5.3% over the year, marginally behind the Company's Reference Index which returned 5.4%.

The portfolio's equity exposure was the largest positive contributor to absolute performance, although emerging market equities were a slight negative. While our position in physical equities was beneficial overall, our regional positioning through index futures (by which means we agree to trade a specific index at a specific future price and date) provided a negative contribution to returns. Within fixed income, the contribution was broad-based with high yield bonds leading the way, but with government bonds and emerging market debt also providing positive contributions. Our allocation to infrastructure was also beneficial over the year.

Portfolio review

From an asset allocation perspective, we continued to hold significant exposure in equity markets, with an increase to 57% in developed markets by the end of the fourth quarter of 2019 and further increases in our emerging markets equity exposure at the start of 2020.

While stock selection is undertaken by our in-house International Equity Group, we tilt regional positioning to reflect our latest views. We implement this via the use of index futures. This approach enables us to maintain positions in high conviction, dividend-paying stocks whilst adjusting regional exposure to reflect our favoured markets. Over the period our asset allocation to UK equities remained static and we were underweight to European equities (ex-UK). In contrast to our in-house International Equity Group, we maintained a preference for the US equity market which we felt had stronger growth potential.

In fixed income, we reduced our allocation to high yield bonds meaningfully in the third quarter and also sold down our exposure to local currency-denominated emerging market debt in the fourth quarter amid growing concerns over the trade dispute and weak manufacturing data. We also introduced an actively-managed, diversified fixed income strategy in early 2020 which offers an attractive yield and exposure to further sectors of the fixed income market.

Our bespoke equity portfolio performed strongly and well ahead of the MSCI World High Dividend Yield index. At a sector level, the largest contributors to performance were utilities and technology - comprising both the semiconductor industry and hardware. Detractors included telecommunications and pharmaceuticals/medical technology. At a stock level, Taiwan Semiconductor Manufacturing Corp (TSMC) was the largest positive contributor. The stock performed strongly over the 12-month period despite a challenging environment for semiconductors as TSMC has a near monopoly position in leading edge foundry that should grow in step with the semiconductor industry. An overweight position in Telenor, a leading Norwegian telecommunications company with global operations, detracted from relative returns. The stock fell over the fourth quarter of 2019 as the company delivered weak quarterly results, with particularly disappointing bottom line numbers.

At the end of February 2020, the portfolio was overweight utilities, energy and insurance at the sector level. Within utilities, the team continues to favour structural winners such as Spanish multinational electric utility company, Iberdrola and the Italian electricity company, Enel. The team also continues to like insurers with the more sustainable dividends and are most underweight the consumer staples, basic industries and health services & systems sectors. At a regional level, the International Equity Group are now overweight Europe and underweight the US and Japan driven by their income focus.

Contribution to the Portfolio by Asset Class - Year to 29th February 2020

Asset Class	%
Global Equities	4.7
Emerging Market Equities	-1.0
Infrastructure	1.3
Government Bonds	1.1
Investment Grade Bonds	0.0
High Yield Bonds	1.7
Emerging Market Debt	0.5
Equity Futures	-1.1
Cash	-1.0
	6.2
Ongoing charges	-1.0
Share Buybacks	0.0
Other	0.1
Total Return on Net Asset ValueA	5.3

^A Alternative Performance Measure ('APM').

A glossary of terms and APMs is provided on pages 78 to 79 of the Company's Annual Report and Financial Statements.

Outlook: weathering the economic uncertainty

As headwinds from trade policy were beginning to dissipate, the outbreak of COVID- 19 has pushed the global economy into recession. The speed and depth of the 'sudden stop' in the economy is unprecedented. Consumer service sectors have ground to a halt amidst the social distancing shock and as services employment tends to be more flexible than goods employment, the current shock has been faster to hit the labour market. Our base case is that this is not a typical recession, as we are combining a credit crunch with a pandemic. We would expect weakness in Q2 followed by stabilisation in indicators and a staggered increase in growth. However, this will all depend on how long the suspension of activity continues for and the extent of stress within credit markets. Given the continued volatile market environment and frequent changes in global government and central policy response to the novel coronavirus outbreak, we are monitoring daily data and economic conditions to remain active and pursue market opportunities as they present themselves.

Katy Thorneycroft

Gareth Witcomb

Investment Managers

8th June 2020

Principal Risks

The Directors confirm that they have carried out a robust assessment of the emerging and principal risks facing the Company, including the Covid-19 pandemic, and those that would threaten its business model, future performance, solvency or liquidity.

With the assistance of the Manager, the Board has drawn up a risk matrix, which identifies the emerging and key risks to the Company. In assessing the risks and how they can be mitigated, the Board has given particular attention to those issues that threaten the viability of the Company. These key risks fall broadly under the following categories:

• Investment and Strategy

An inappropriate investment strategy, for example asset allocation or the level of gearing or foreign exchange exposure, may lead to underperformance against peer companies. This may result in the Company's shares trading on a narrower premium or a wider discount or insufficient income generation which may lead to a cut in the dividend. The Board manages these risks by diversification of investments through its investment restrictions and guidelines, which are monitored and reported on by the Manager. The Manager provides the Directors with timely and accurate management information, including performance data, revenue estimates, currency performance, liquidity reports and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Managers, who attend Board meetings, and reviews data which show statistical measures of the Company's risk profile. The Investment Managers review the Company's gearing strategically.

• Financial

The financial risks faced by the Company include market price risk, interest rate risk, liquidity risk and credit risk. Further details are disclosed in note 21 on pages 62 to 69 of the Company's Annual Report and Financial Statements.

• Corporate Governance and Shareholder Relations

Details of the Company's compliance with Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance report on pages 26 to 30 of the Company's Annual Report and Financial Statements.

• Operational

Loss of key staff by the Manager, such as the Investment Managers, could affect the performance of the Company. Disruption to, or failure of, the Manager's accounting, dealing or payments systems or the depositary's or custodian's records could prevent accurate reporting and monitoring of the Company's financial position. This includes the risk of cybercrime and consequent potential threat to security and business continuity. Details of how the Board monitors the services provided by the Manager and its associates and the key elements designed to provide effective internal control are included in the Risk Management and Internal Control section of the Corporate Governance report on page 29 of the Company's Annual Report and Financial Statements.

The threat of cyber attack, in all its guises, is regarded as at least as important as more traditional physical threats to business continuity and security. The Company benefits directly or indirectly from all elements of JPMorgan's Cyber Security programme. The information technology controls around the physical security of JPMorgan's data centres, security of its networks and security of its trading applications are tested by independent reporting accountants and reported on every six months against the Audit and Assurance Faculty ('AAF') standard.

• Accounting, Legal and Regulatory

In order to qualify as an investment trust, the Company must comply with Section 1158 of the Corporation Tax Act 2010 ('Section 1158'). Details of the Company's approval are given on page 17 of the Company's Annual Report and Financial Statements. Were the Company to breach Section 1158, it would lose its investment trust status and, as a consequence, gains within the Company's portfolio could be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by the Manager and the results reported to the Board each month. The Company must also comply with the provisions of the Companies Act 2006 and, since its shares are listed on the London Stock Exchange, the UKLA Prospectus Rules, Listing Rules and Disclosure, Guidance & Transparency Rules ('DTRs'). A breach of the Companies Act could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the UKLA Listing Rules or DTRs could result in the Company's shares being suspended from listing which in turn would breach Section 1158. The Board relies on the services of its Company Secretary, the Manager and its professional advisers to ensure compliance with the Companies Act 2006, the UKLA Prospectus Rules, Listing Rules, DTRs and the Alternative Investment Fund Managers Directive.

• Global Pandemics

The recent outbreak and spread of Covid-19 has demonstrated the risk of global pandemics, in whatever form a pandemic takes. Covid-19 poses a significant risk to the Company's portfolio. At the date of this report, the virus has contributed to significant volatility in trading, although the Board and Manager expect that the portfolio's holdings will not suffer a material long-term impact and should recover once containment measures ease. Should the virus spread more aggressively or become more virulent, it may present risks to the operations of the Company, its Manager and other major service providers. The Board and the Manager will continue to monitor developments as they occur and seek to learn lessons which may be of use in the event of future pandemics.

Transactions with the Manager and related parties

Details of the management contract are set out in the Directors' Report on page 24 of the Company's Annual Report and Financial Statements. The management fee payable to the Manager for the year was £525,000 (2019: £513,000) of which £nil (2019: £nil) was outstanding at the year end.

During the year £22,000 (2019: £35,000) was payable to the Manager for the administration of savings scheme products, of which £nil (2019: £nil) was outstanding at the year end.

Included in administration expenses in note 6 on page 55 of the Company's Annual Report and Financial Statements are safe custody fees payable to JPMorgan Chase N.A. amounting to £4,000 (2019: £4,000) of which £1,000 (2019: £1,000) 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 (2019: £nil) of which £nil (2019: £nil) was outstanding at the year end.

The Company holds investments in funds managed by JPMAM. At 29th February 2020 these were valued at £17.5million (2019: £15.6 million) and represented 20.4% (2019: 18.8%) of the Company's investment portfolio. During the year the Company made £9.4 million (2019: £19.4 million) purchases and sales with a total value of £8.5 million (2019:£3.7 million). Income amounting to £1.0 million (2019:£949,000) of such investments was receivable from these investments during the year of which £nil (2019: £nil) was outstanding at the year end.

The Company holds investments in Infrastructure Investment Fund (IIF UK 1 LP), the General Partner of IIF UK 1 LP is an affiliate of JPMorgan Asset Management (UK) Limited. At 29th February 2020 these were valued at £9.1 million (2019: £9.1 million) and represented 10.6% (2019: 10.9%) of the Company's investment portfolio. During the year the Company made £nil (2019: 9.4 million) purchases and £nil (2019: £nil) sales. Income amounting to £925,000 (2019: £405,000) of such investments was receivable from these investments during the year of which £145,000 (2019: £185,000) was outstanding at the year end.

The Company also holds cash in JPMorgan Sterling Liquidity Fund, which is managed by JPMF. At the year end, this was valued at £712,000 (2019: £1.0 million). Interest amounting to £12,000 (2019: £24,000) were payable during the year of which £1,000 (2019: £nil) was outstanding at the year end.

Handling charges on dealing transactions amounting to £29,000 (2019: £18,000) were payable to JPMorgan Chase N.A. during the year of which £5,000 (2019: £2,000) was outstanding at the year end.

During the period under review JPMorgan Asset Management Holdings (UK) Ltd, an affiliate of the Company's Manager did not acquire any shares in the Company (2019:1,639,968).

At the year end, a bank balance of £1,022,000 (2019: £370,000) was held with JPMorgan Chase N.A. A net amount of interest of £5,000 (2019: £nil) was receivable by the Company during the year from JPMorgan Chase N.A. of which £nil was outstanding at the year end.

Full details of Directors' remuneration and shareholdings can be found on page 35 and in note 6 on page 55 of the Company's Annual Report and Financial Statements.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the annual report and 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under Company law the Directors must not approve the financial statements unless they are satisfied that, taken as a whole, the annual report and accounts 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 a 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 accounts are published on the www.jpmmultiassettrust.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 auditors does not involve consideration of the maintenance and integrity of this website and, accordingly, the auditors accept no responsibility for any changes that have occurred to the accounts since they were initially presented on the website. The accounts 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 and Directors' Remuneration Report that comply with that law and those regulations.

Each of the Directors, whose names and functions are listed on page 23 of the Company's Annual Report and Financial Statements confirm that, to the best of their knowledge, the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and return or loss of the Company.

The Board confirms that it is satisfied that the annual report and accounts taken as a whole are fair, balanced and understandable and provide the information necessary for shareholders to assess the strategy and business model of the Company.

For and on behalf of the Board
Sir Laurence Magnus
Chairman

8th June 2020

statement of comprehensive income

For the year ended 29th February 2020

	2020			20191
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair value through profit or loss	-	3,943	3,943	-	1,991	1,991
Net foreign currency losses	-	(2,608)	(2,608)	-	(628)	(628)
Income from investments	4,506	-	4,506	4,041	-	4,041
Interest receivable and similar income	30	-	30	24	-	24
Gross return	4,536	1,335	5,871	4,065	1,363	5,428
Management fee	(184)	(341)	(525)	(180)	(333)	(513)
Other administrative expenses	(393)	-	(393)	(450)	-	(450)
Net return before finance costs and taxation	3,959	994	4,953	3,435	1,030	4,465
Finance costs	(2)	(3)	(5)	(1)	(2)	(3)
Net return before taxation	3,957	991	4,948	3,434	1,028	4,462
Taxation (charge)/credit	(457)	102	(355)	(273)	22	(251)
Net return after taxation	3,500	1,093	4,593	3,161	1,050	4,211
Return per share	4.06p	1.27p	5.33p	3.54p	1.18p	4.72p

¹ From incorporation on 19th December 2017 to 28th February 2019

statement of changes in equity

	Called up
	share	Share	Special	Capital	Revenue
	capital	premium	reserve1	reserves1	reserve1	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Period ended 28th February 2019
At 19th December 2017	-	-	-	-	-	-
Issue of ordinary shares at launch on 2nd March 2018	931	92,184	-	-	-	93,115
Fund launch expenses	-	(688)	(32)	-	-	(720)
Redesignation of share premium	-	(91,496)	91,496	-	-	-
Repurchase of shares into Treasury	-	-	(6,539)	-	-	(6,539)
Net return	-	-	-	1,050	3,161	4,211
Distributions paid in the period (note 3)	-	-	-	-	(2,666)	(2,666)
At 28th February 2019	931	-	84,925	1,050	495	87,401
Repurchase of shares into Treasury	-	-	(157)	-	-	(157)
Net return	-	-	-	1,093	3,500	4,593
Distributions paid in the year (note 3)	-	-	-	-	(3,446)	(3,446)
At 29th February 2020	931	-	84,768	2,143	549	88,391

¹ These reserves form the distributable reserve of the Company and may be used to fund distributions to investors.

statement of financial position

At 29th February 2020

	2020	2019
	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	85,625	83,013
Current assets
Derivative financial assets	3,064	1,978
Debtors	466	456
Cash and cash equivalents	3,876	3,463
	7,406	5,897
Current liabilities
Creditors: amounts falling due within one year	(134)	(309)
Derivative financial liabilities	(4,506)	(1,200)
Net current assets	2,766	4,388
Total assets less current liabilities	88,391	87,401
Net assets	88,391	87,401
Capital and reserves
Called up share capital	931	931
Share premium	-	-
Special reserve	84,768	84,925
Capital reserves	2,143	1,050
Revenue reserve	549	495
Total Shareholders' funds	88,391	87,401
Net asset value per share	102.7p	101.3p

statement of cash flows

For the year ended 29th February 2020

	2020	20191
	£'000	£'000
Net cash outflow from operations before dividends and interest	(758)	(466)
Dividends received	3,163	2,460
Interest received	1,049	973
Overseas tax recovered	14	6
Interest paid	(5)	(3)
Net cash inflow from operating activities	3,463	2,970
Purchases of investments and derivatives	(56,065)	(132,424)
Sales of investments and derivatives	58,284	52,074
Settlement of forward foreign currency contracts	716	(2,717)
Settlement of future contracts	(2,140)	191
Purchases of derivatives	(74)	-
Net cash inflow/(outflow) from investing activities	721	(82,876)
Issue of ordinary shares at launch	-	93,115
Fund launch expenses	-	(720)
Repurchase of shares into Treasury	(342)	(6,354)
Distributions paid	(3,446)	(2,666)
Net cash (outflow)/inflow from financing activities	(3,788)	83,375
Increase in cash and cash equivalents	396	3,469
Cash and cash equivalents at start of year	3,463	-
Exchange movements	17	(6)
Cash and cash equivalents at end of year	3,876	3,463
Increase in cash and cash equivalents	396	3,469
Cash and cash equivalents consist of:
Cash and short term deposits	3,164	2,431
Cash held in JPMorgan Sterling Liquidity Fund	712	1,032
Total	3,876	3,463

¹ From incorporation on 19th December 2017 to 28th February 2019.

Reconciliation of net debt

	As at		Other	As at
	28th February 2019	Cash flows	non-cash charges	29th February 2020
	£'000	£'000	£'000	£'000
Cash and cash equivalents
Cash	2,431	1,651	(918)	3,164
Cash equivalents	1,032	(320)	-	712
Total	3,463	1,331	(918)	3,876

Notes to the financial statements

For the year ended 29th February 2020

1.  Accounting policies

(a)  Basis of accounting

The financial statements are prepared under 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 October 2019.

All of the Company's operations are of a continuing nature.

The financial statements have been prepared on a going concern basis. The disclosures on going concern on page 31 of the Directors' Report in the Company's Annual Report and Financial Statements form part of these financial statements.

2.  Return per share

		2020	20191
		£'000	£'000
	Revenue return	3,500	3,161
	Capital return	1,093	1,050
	Total return	4,593	4,211
	Weighted average number of shares in issue during the year	86,117,323	89,193,741
	Revenue return per share	4.06p	3.54p
	Capital return per share	1.27p	1.18p
	Total return per share	5.33p	4.72p

¹   From incorporation on 19th December 2017 to 28th February 2019.

3.  Distributions

(a)  Distributions paid and declared

		2020	20191
		£'000	£'000
	Distributions paid
	2019 fourth distribution of 1.0p	863	-
	2020 first interim distribution of 1.0p (2019: 1.0p2)	861	929
	2020 second interim distribution of 1.0p (2019: 1.0p3)	861	872
	2020 third interim dividend of 1.0p (2019: 1.0p)	861	865
	Total distribution paid in the year	3,446	2,666
	Distribution declared
	2020 fourth interim distribution declared of 1.0p (2019: 1.0p)	861	863

¹   From incorporation on 19th December 2017 to 28th February 2019.

²   Consists of 0.9538p dividend and 0.0462p interest.

³   Consists of 0.711p dividend and 0.289p interest.

All distributions paid and declared in the year are and will be funded from the revenue, capital and special reserves.

(b)  Distributions for the purposes of Section 1158 of the Corporation Tax Act 2010 ('Section 1158')

The revenue available for distribution by way of dividend and interest for the year is £3,495,000 (2019: £3,159,000).

		2020	20191
		£'000	£'000
	2020 first interim distribution of 1.0p (2019: 1.0p2)	861	929
	2020 second interim distribution of 1.0p (2019: 1.0p3)	861	872
	2020 third interim dividend of 1.0p (2019: 1.0p)	861	865
	2020 fourth interim distribution declared of 1.0p (2019: 1.0p)	861	863
		3,444	3,529

¹   From incorporation on 19th December 2017 to 28th February 2019.

²   Consists of 0.9538p dividend and 0.0462p interest.

³   Consists of 0.711p dividend and 0.289p interest.

4.  Net asset value per share

		2020	2019
		£'000	£'000
	Net assets (£'000)	88,391	87,401
	Number of shares in issue	86,096,408	86,261,408
	Net asset value per share	102.7p	101.3p

Status of results announcement

2019 Financial Information

The figures and financial information for 2019 are extracted from the Annual Report and Accounts for the year ended 28^th February 2019 and do not constitute the statutory accounts for the year. The Annual Report and Accounts include the Report of the Independent Auditors 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.

2020 Financial Information

The figures and financial information for 2020 are extracted from the published Annual Report and Accounts for the year ended 29^th February 2020 and do not constitute the statutory accounts for that year. The Annual Report and Accounts has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

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.

For further information please contact:

Paul Winship

For and on behalf of

JPMorgan Funds Limited, Secretary - 020 7742 4000

9 June 2020

ENDS

Annual Report and Financial Statements

The Annual Report and Financial Statements will be posted to shareholders on 10 June 2020 and will shortly be available on the Company's website (www.jpmmultiassettrust.co.uk ) or in hard copy format from the Company's Registered Office, 60 Victoria Embankment  London EC4Y 0JP.

A copy of the annual report will shortly be submitted to the FCA's National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The annual report is also available on the Company's website at www.jpmmultiassettrust.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

 

END

 

 

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