Half-Year Results - 31 December 2023

JPMorgan Emerging Mkts Invest Trust
23 February 2024
 

LONDON STOCK EXCHANGE ANNOUNCEMENT

 

JPMORGAN EMERGING MARKETS INVESTMENT TRUST PLC

 

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS

ENDED 31ST DECEMBER 2023

 

Legal Entity Identifier: 5493001VPQDYH1SSSR77

Information disclosed in accordance with DTR 4.2.2

 

JPMorgan Emerging Markets Investment Trust plc (the 'Company') has today announced its half year results for the period ending 31st December 2023.

 

Highlights

 

·    Net asset value ('NAV') per share on a total return basis was 3.2%, while total return to shareholders was 2.8%. This compares with a 4.4% increase in the Benchmark, the MSCI Emerging Markets Index with net dividends reinvested, in sterling terms.

 

·    In the five years ended 31st December 2023, the Company has delivered an annualised total return of 6.1% on a NAV basis, outpacing the Benchmark, which returned 3.7% on the same basis.

 

·    The Board has declared an interim dividend of 0.60 pence (2022: 0.58 pence), to be paid on 26th April 2024 to shareholders on the register as at the close of business on 15th March 2024.

 

·    The Board is introducing a five-year performance-related conditional tender offer. This will allow shareholders to redeem a portion of their shares at close to NAV if, over the next five years from the start of the next financial year being 1st July 2024, the Company's audited NAV total return does not exceed the total return of the Benchmark.

 

CHAIR'S STATEMENT

Introduction

The past half-year was a mixed one for emerging markets. China, the largest economy within your Company's investable universe, remained weak. After prolonged and stringent lockdowns, its post-pandemic recovery disappointed the expectations of most investors, including ourselves, as severe challenges in the property sector weighed on consumer sentiment. In response there have been a number of interventions by the Chinese authorities in recent weeks. However developments in other emerging markets have been more positive. For example, India continues to grow strongly, supported by domestic reforms, infrastructure spending and rising foreign investment, while Mexico and Indonesia are enjoying foreign capital inflows as global businesses diversify their supply chains. Meanwhile, initial excitement about artificial intelligence ('AI') underscores strong prospects for AI-exposed technology companies, with global leaders in Taiwan and Korea seen as clear beneficiaries.

Investment Performance

Against this background, the Company's net asset value ('NAV') total return over the six months ended 31st December 2023 was 3.2%, while the total return to shareholders was 2.8%. This compares with a 4.4% increase in the benchmark, the MSCI Emerging Markets Index with net dividends reinvested, in sterling terms (the 'Benchmark' or 'MSCI Index'). Relative performance was adversely impacted by exposure to India, the Company's largest overweight position, where the returns of portfolio holdings lagged the market as a whole, despite their strong fundamentals. The unexpected and continued weakness in Chinese consumer demand also detracted from performance, as the Company's holdings in Chinese consumer stocks derated. On the positive side, returns were supported by the good performance of positions in South Africa, Argentina and Mexico.

While this six-month underperformance is disappointing, your Company's investment strategy is focused on the long-term, and on this basis, performance continues to be robust. The Company has delivered an average annualised total return of 6.1% over the past five years and 8.1% over the past ten years on an NAV basis, outpacing the MSCI Index, which returned 3.7% per annum over five years and 5.4% over ten years, on the same basis.

The Company's recent performance is discussed in more detail in the Portfolio Managers' Report below.

Continuation Vote

I am pleased to report that, at the Company's Annual General Meeting ('AGM') held in November 2023, shareholders voted in favour of the Company's continuation as an investment trust for a further three-year period. My fellow Board members and I thank shareholders for their ongoing support.

Share Rating

During the period, the Company's shares traded at an average discount to NAV of 9.5%. The discount ranged between 12.6% and 6.8% and ended the period at 10.2%.

The Board regularly considers the merits of buying back shares in order to manage the level and volatility of the discount if markets are orderly and it is in the best interests of shareholders to do so. As shares are only bought back at a discount to the prevailing net asset value, share buybacks benefit shareholders as they increase the net asset value per share of the remaining outstanding shares. In addition buybacks demonstrate confidence in the portfolio and its long-term prospects to outperform.

Over the six-month period 14,936,280 shares (representing 1.3% of the outstanding share capital) were bought back into Treasury at an average discount of 10.6% at a cost of £15.2 million. Shares repurchased are held in Treasury and such Treasury shares and any new ordinary shares will only be sold or issued at a premium to NAV. Share repurchases have continued since the period end.

Introduction of Conditional Tender Mechanism

The Board remains focused on high standards of governance and operating in the interests of shareholders. It notes the increased incidence of tenders and other forms of redemption, which are additional mechanisms to assist with discount management. Therefore, the Board has decided that it is now an appropriate time to introduce a five-year performance-related conditional tender offer ('tender offer'). This allows shareholders to redeem a portion of their shares at close to NAV, subject to the performance of the Company over that period.

Under the mechanism a tender offer will be made to shareholders for up to 25% of the Company's outstanding share capital, at a price equal to the then prevailing NAV less 2% if, over the next five years from the start of the next financial year being 1st July 2024, the Company's audited NAV total return does not exceed the total return of the Benchmark over the five-year period on a cumulative basis.

If the tender offer is triggered, it will be subject to shareholder approval at the relevant time and will also be conditional on shareholders approving the continuation votes at the respective AGMs in 2026 and 2029 and would be held as soon as practicable following the conclusion of the Company's 2029 AGM.

The introduction of the tender offer will not change the Board's current approach to discount management which is outlined above. Nor will it affect the Portfolio Managers' clear and consistent investment philosophy and process, set out in detail in the Company's 2023 Annual Report.

Revenue and Dividends

The Company's primary focus is to generate a total return for shareholders, in line with its investment objective, rather than targeting a particular level of income. For any individual year, dividends received in sterling terms can fluctuate according to the underlying earnings of the portfolio as well as changes in its composition and of course currency movements. This means that the level of dividends may vary.

In respect of the financial year to 30th June 2023 an interim dividend of 0.58 pence per share and a final dividend of 1.07 pence per share were paid to shareholders on 25th April and 10th November 2023 respectively, representing an increase of 22.2% on the previous year.

Net revenue after taxation for the six months to 31st December 2023 was £8.03 million (2022: £7.47 million) and earnings per share were 0.70 pence (2022: 0.64 pence). The Board has declared an interim dividend of 0.60 pence (2022: 0.58 pence), to be paid on 26th April 2024 to shareholders on the register as at the close of business on 15th March 2024. The ex-dividend date will be 14th March 2024.

Board of Directors

The Board plans for succession to ensure it retains an appropriate balance of skills, knowledge and diverse perspectives. To this end, the Board appointed Alison Jefferis as a Non-Executive Director with effect from 1st January 2024.

Alison has direct and relevant experience within the investment sector, particularly in the fields of marketing, communication and investor relations, including digital engagement covering traditional and alternative asset classes, listed and non-listed structures and retail, intermediary and institutional investors. She most recently held the role of Head of Corporate Affairs at Columbia Threadneedle Investments, a global asset manager, from 2015 to 2022.

In addition Zoe Clements succeeded Richard Laing in the role of Audit Committee Chair at the conclusion of the Company's AGM in November 2023. As outlined in my annual statement, it was Richard's intention to retire from the Board in the first half of 2024; he duly stood down from the Board as of the date of this statement. We thank Richard for his valued contribution to the Company and wish him all the best for the future.

The Board can confirm that its current composition is compliant with all applicable diversity targets for UK companies listed on the premium segment of the London Stock Exchange. It is the intention that this will continue to be the case.

Shareholder Communications

The Company is committed to engaging with its shareholders including those with smaller holdings who invest via platforms. To support this goal, the Company has developed a range of initiatives including email updates on the Company's progress. If you have not already signed up to receive these communications and you wish to do so, you can opt in via https://tinyurl.com/JMG-Sign-Up or by scanning the QR code in the margin.

In addition our Portfolio Managers both record webinars and video updates which can be found on the Company's website. In particular I would draw your attention to the recording of their detailed portfolio presentation delivered at the AGM last November.

Outlook

The past three years have certainly been challenging. As highlighted in my 2023 annual statement, rising interest rates have put the Company's quality growth strategy under pressure, by undermining the valuations of some portfolio companies. At the same time, the Company has had to navigate through a global pandemic, the Russia-Ukraine war and an insipid Chinese recovery.

However, looking ahead in 2024, there are reasons to be more optimistic: emerging market economies are in general doing well, with stronger growth, less inflation and lower debt than their western counterparts; meanwhile falling global inflation should provide emerging market central banks with scope to cut interest rates in due course; lower rates should, in turn, bring relief to household and corporate balance sheets; the US dollar is down considerably, which eases the interest burden on emerging market debt; and China's economy is growing, albeit more slowly than previously expected, but still faster than most developed economies. Furthermore, valuations have fallen, and earnings are forecast to grow strongly in 2024/25. That said, in political terms 2024 will be a busy and complex year, with the recent Taiwanese and Indonesian presidential elections to be followed by elections in India, Mexico and South Africa, as well as in the US and Britain.

In addition, the long-term case for investment in emerging markets remains strong, thanks to their superior economic growth prospects, and favourable demographics, which will continue to drive incomes and consumption. And there are many high-quality, innovative, disruptive businesses in these markets capable of capitalising on the various investment opportunities such economic vibrancy generates.

While the Company's Portfolio Managers monitor short-term macroeconomic and political developments, and longer-term structural themes, they do not attempt to predict events or top-down trends, but instead concentrate on identifying those companies that are best-placed to endure and grow regardless of the macroeconomic or political environment. This time-tested strategy is supported by a well-resourced and deeply experienced team of research analysts, many of whom are located 'on the ground' in the markets in which the Company invests.

There may be periods, such as the past six months, when the Company underperforms the Benchmark and you will note that Austin and John address this directly in the last paragraph of their statement below. However the strong long-term performance track record of outright gains and outperformance attests to the strategy's effectiveness in maximising total returns over the long run. The Board remains confident that this approach, allied with the Managers' experience and expertise, will continue to reward investors going forward. It is pleasing that others also share those conclusions. Hargreaves Lansdown, one of the largest UK retail investment platforms, has recently nominated your Company as one of its 'five funds to watch in 2024'.

In the meantime, we will continue to deploy our strategy, well summarised by Austin in a recent article that you can find on our website, 'to invest in businesses with strong finances, strong competitive advantages and ideally low valuations, that can withstand whatever is thrown at them.'

 

Aidan Lisser

Chair                                                                                                                                         

23rd February 2024

 

PORTFOLIO MANAGERS' REPORT

Introduction

As we review 2023 emerging markets can be divided into two groups: in the first group, China; in the second group, everything else. For China, it was another annus horribilis, with sustained falls in share prices leaving the market down 16% in sterling terms, with declines continuing throughout the year. For other countries in our benchmark index it was a pretty good year; in aggregate their equity markets returned 14% in sterling terms throughout the year, and were up almost 9% in the last six months alone. But given China's significance in the asset class, the two combined to produce only a modest outcome for the overall emerging market index: the year as a whole saw a return of 4.4% for the benchmark index, and that return came entirely during the latest six-month period.

Investment Performance and Approach

Against this background, we are disappointed to report that over the half year under review the Company's net asset value ('NAV') total return lagged the benchmark index, rising by just under 3.2%. To explain this, we need look no further than the Company's two most significant markets in terms of investment, India and China. We have more money invested in India, at just under a quarter of the total portfolio, than any other country; this has been the right investment destination, but our larger investments there have failed to keep pace with an increasingly euphoric stock market. Equity market returns in the last six months in India have been boosted by rising valuations as investor enthusiasm has mounted, and while some of the Company's investments have participated in this re-rating, others have not. Some of our larger investments in India are exporters, especially of IT services, and these companies depend not on the Indian economy, but on global business conditions, which have been more subdued. Meanwhile, HDFC Bank is digesting its merger with its parent HDFC Ltd, and while this should prove a temporary phase, investors in India have looked elsewhere for exposure to the strong domestic economy that country is enjoying. In China, which now accounts for one sixth of your portfolio, the slowdown in the economy and continued regulatory uncertainty have weighed upon the share prices of most of our investments, with our exposure to the consumer sector proving particularly costly. As consumer confidence has declined, we have seen down-trading and enhanced competition across the consumer sector in China, from e-commerce to consumer products, resulting in margin pressure for several of our investments. We have a marginally lower allocation to China than our benchmark index, though clearly in retrospect an even more negative stance would have been appropriate.

The drag on the entire asset class from China threatens to obscure the fact that other emerging markets have come through a challenging few years in relatively good economic shape. Governments in emerging markets offered less fiscal support during the pandemic than many developed countries, but also avoided the consequent build-up of sovereign debt; and when inflation pressures mounted their central banks were generally far more decisive, meaning that they now have scope to reduce interest rates and help domestic demand. That is not a bad backdrop for domestic business profits and for growth. If it combines with a global cycle in which developed economies avoid recession or see only a mild downcycle, then we may look forward to a period in which export businesses in emerging markets can expect some improvement in customer demand, while at the same time domestically-focused companies also see easier monetary conditions and a potential cyclical recovery. That would be a more favourable combination of circumstances than we have seen for several years. Your Company's principal exposures remain in financial services and consumer companies, both geared to domestic economic conditions, and technology, where emerging markets companies are essential suppliers to the global demand for hardware and software services.

Finally, a word on our investment approach. We are keenly aware that recent relative performance has dipped below the long-term outcomes achieved for shareholders. There are several reasons for this, some to do with the wider market environment, some to do with our own judgements. No fund manager should expect to be able to produce outperformance in every market environment or every period; but when we look at the last few years we should not use the change in market conditions as an excuse. We firmly believe that our investment process, developed and tested over the last three decades, will produce good results in the future, as it has in the past. Our challenge is, as ever, to continue to take informed risks by investing in the best companies we can find, while avoiding excessive valuations. Our focus remains resolutely long term, and our turnover low. Where we conclude that our investment theses will not work out, we make changes; but if we own strong companies, we stick with them, and shareholders should expect that we continue to do so.

 

Austin Forey

John Citron

Portfolio Managers                                                                                                                    

23rd February 2024

 

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its half year report:

Principal and Emerging Risks and Uncertainties

The principal and emerging risks and uncertainties faced by the Company have not changed from those reported in the Annual Report and Financial Statements for the year ended 30th June 2023 ('AFR') and fall into the following broad categories: investment underperformance; loss of investment team or investment manager; political and economic; strategy/business management; operational and counterparty failure and cyber crime; share price discount; change of corporate control of the manager; legal and regulatory; corporate governance and shareholder relations; and financial. Information on each of these areas is given in the Business Review within the AFR.

Related Parties Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.

Going Concern

The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least 12 months from the date of the approval of this half year financial report. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i)    the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at 31st December 2023 as required by the UK Listing Authority Disclosure and Transparency Rules 4.2.4R; and

(ii)   the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules.

In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:

•      select suitable accounting policies and then apply them consistently;

•      make judgements and accounting estimates that are reasonable and prudent;

•      state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•      prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;

and the Directors confirm that they have done so.

 

For and on behalf of the Board

Aidan Lisser

Chair                                                                                                                                         

23rd February 2024

 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

 

(Unaudited)

(Unaudited)

(Audited)

 

Six months ended

Six months ended

Year ended

 

31st December 2023

31st December 2022

30th June 2023

 

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Gains/(losses) on investments










  held at fair value through










  profit or loss

-

38,633

38,633

-

 14,026

 14,026

-

(10,303)

(10,303)

Net foreign currency










  gains/(losses)

-

722

722

-

942

 942

-

(2,310)

(2,310)

Income from investments

10,550

-

10,550

 9,971

-

9,971

28,130

-

28,130

Interest receivable

569

-

569

 843

-

 843

2,299

-

2,299

Gross return/(loss)

11,119

39,355

50,474

10,814

 14,968

 25,782

30,429

(12,613)

17,816

Management fee

(1,327)

(3,097)

(4,424)

(1,532)

(3,575)

 (5,107)

(3,082)

(7,190)

(10,272)

Other administrative expenses

(767)

-

(767)

(648)

-

 (648)

(1,456)

-

(1,456)

Net return/(loss) before

 

 

 

 

 

 

 

 

 

  taxation

9,025

36,258

45,283

8,634

 11,393

 20,027

25,891

(19,803)

6,088

Taxation

(995)

(4,150)

(5,145)

(1,169)

(3,293)

 (4,462)

(3,294)

(4,708)

(8,002)

Net return/(loss) after

 

 

 

 

 

 

 

 

 

  taxation

8,030

32,108

40,138

7,465

8,100

 15,565

22,597

(24,511)

(1,914)

Return/(loss) per share (note 3)

0.70p

2.81p

3.51p

0.64p

0.69p

1.33p

1.94p

(2.11)p

(0.17)p

 

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.

The net return/(loss) after taxation represents the profit/(loss) for the period and also the total comprehensive income.

CONDENSED STATEMENT OF CHANGES IN EQUITY

 

Called up

 

Capital

 

 

 

 

 

share

Share

redemption

Other

Capital

Revenue

 

 

capital

premium

reserve

reserve

reserves

reserve1

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Six months ended 31st December 2023 (Unaudited)

 

 

 

 

 

 

 

At 30th June 2023

33,091

173,631

1,665

69,939

1,027,276

24,220

1,329,822

Repurchase of shares into Treasury

-

-

-

-

(15,245)

-

(15,245)

Net return

-

-

-

-

32,108

8,030

40,138

Dividends paid in the period (note 4)

-

-

-

-

-

(12,265)

(12,265)

At 31st December 2023

33,091

173,631

1,665

69,939

1,044,139

19,985

1,342,450

Six months ended 31st December 2022 (Unaudited)

 

 

 

 

 

 

 

At 30th June 2022

 33,091

 173,631

1,665

 69,939

1,072,940

 18,040

1,369,306

Repurchase of shares into Treasury

-

-

-

-

 (7,652)

-

 (7,652)

Net return

-

-

-

-

8,100

7,465

 15,565

Dividends paid in the period (note 4)

-

-

-

-

-

 (9,683)

 (9,683)

At 31st December 2022

 33,091

 173,631

1,665

 69,939

1,073,388

 15,822

1,367,536

Year ended 30th June 2023 (Audited)

 

 

 

 

 

 

 

At 30th June 2022

 33,091

 173,631

1,665

 69,939

1,072,940

 18,040

1,369,306

Repurchase of shares into Treasury

-

-

 -

 -

(21,153)

-

(21,153)

Net (loss)/return

 -

 -

 -

-

(24,511)

22,597

(1,914)

Dividend paid in the year (note 4)

 -

-

 -

 -

-

(16,417)

(16,417)

At 30th June 2023

33,091

173,631

1,665

69,939

1,027,276

24,220

1,329,822

1     This reserve forms the distributable reserve of the Company and may be used to fund distributions to investors.

CONDENSED STATEMENT OF FINANCIAL POSITION

 

(Unaudited)

(Unaudited)

(Audited)

 

At

At

At

 

31st December

31st December

30th June

 

2023

2022

2023

 

£'000

£'000

£'000

Fixed assets

 

 

 

Investments held at fair value through profit or loss

1,346,894

1,323,386

1,311,009

Current assets

 

 

 

Debtors

2,982

2,514

5,074

Cash and cash equivalents

6,589

50,531

24,866


9,571

53,045

29,940

Current liabilities




Creditors: amounts falling due within one year

(549)

(182)

(999)

Net current assets

9,022

52,863

28,941

Total assets less current liabilities

1,355,916

1,376,249

1,339,950

Non current liabilities




Creditors: amounts falling due after more than one year

(13,466)

(8,713)

(10,128)

Net assets

1,342,450

1,367,536

1,329,822

Capital and reserves

 

 

 

Called up share capital

33,091

33,091

33,091

Share premium

173,631

173,631

173,631

Capital redemption reserve

1,665

1,665

1,665

Other reserve

69,939

69,939

69,939

Capital reserves

1,044,139

1,073,388

1,027,276

Revenue reserve

19,985

15,822

24,220

Total shareholders' funds

1,342,450

1,367,536

1,329,822

Net asset value per share (note 5)

118.2p

117.6p

115.6p

 

CONDENSED STATEMENT OF CASH FLOWS

 

(Unaudited)

(Unaudited)

(Audited)

 

Six months ended

Six months ended

Year ended

 

31st December

31st December

30th June

 

2023

20221

2023

 

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

Net return before finance costs and taxation

45,283

20,027

6,088

Adjustment for:




  Net (gains)/losses on investments held at fair value




    through profit or loss

(38,633)

(14,026)

10,303

  Net foreign currency (gains)/losses

(722)

(942)

2,310

  Dividend income

(10,472)

(9,971)

(28,130)

  Interest income

(569)

(843)

(2,299)

  Scrip Dividends received as income

(78)

-

-

Realised (losses)/gains on foreign exchange transactions

(66)

(107)

123

Realised exchange gains on Liquidity fund

586

3,180

2,795

Decrease/(increase) in accrued income and other debtors

6

24

(15)

(Decrease)/increase in accrued expenses

(127)

(109)

289


(4,792)

(2,767)

(8,536)

Dividends received

11,765

10,818

23,963

Interest received

569

666

2,299

Overseas withholding tax (paid)/recovered

(201)

(173)

16

Capital gains tax paid

(812)

-

-

Net cash inflow from operating activities

6,529

8,544

17,742

Purchases of investments

(35,744)

(25,349)

(64,572)

Sales of investments

38,567

29,266

56,540

Net cash inflow/(outflow) from investing activities

2,823

3,917

(8,032)

Equity dividends paid

(12,265)

(9,683)

(16,417)

Repurchase of shares into Treasury

(15,566)

(7,814)

(20,899)

Net cash outflow from financing activities

(27,831)

(17,497)

(37,316)

Decrease in cash and cash equivalents

(18,479)

(5,036)

(27,606)

Cash and cash equivalents at start of year

24,866

57,700

57,700

Exchange movements

202

(2,133)

(5,228)

Cash and cash equivalents at end of period/year

6,589

50,531

24,866

Decrease in cash and cash equivalents

(18,479)

(5,036)

(27,606)

Cash and cash equivalents consist of:




Cash and short term deposits

109

650

737

Cash held in liquidity fund

6,480

49,881

24,129

Total

6,589

50,531

24,866

1     The presentation of the Cash Flow Statement, as permitted under FRS 102, has been changed so as to present the 'reconciliation of net return before finance costs and taxation' to 'net cash inflow from operating activities' on the Cash Flow Statement. Previously, this was shown by way of note to the Cash Flow Statement. Other than consequential changes in presentation of the certain cash flow items, there is no change to the cash flows as presented in previous periods.

Analysis of change in net cash/(debt)

 

As at

 

Other

As at

 

30th June

 

non-cash

31st December

 

2023

Cash flows

charges

2023

 

£'000

£'000

£'000

£'000

Cash and cash equivalents





Cash

737

(628)

-

109

Cash equivalents

24,129

(17,851)

202

6,480

Net cash

24,866

(18,479)

202

6,589

 

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the six months ended 31st December 2023

1.       Financial statements

The information contained within the condensed financial statements in this half year report has not been audited or reviewed by the Company's auditors.

The figures and financial information for the year ended 30th June 2023 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and including the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

2.       Accounting policies

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' of the United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the revised 'SORP') issued by the Association of Investment Companies in July 2022.

FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 31st December 2023.

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

The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 30th June 2023.

3.       Return/(loss) per share


(Unaudited)

(Unaudited)

(Audited)


Six months ended

Six months ended

Year ended


31st December 2023

31st December 2022

30th June 2023


£'000

£'000

£'000

Return per share is based on the following:




Revenue return

8,030

7,465

22,597

Capital return/(loss)

32,108

8,100

(24,511)

Total return/(loss)

40,138

15,565

(1,914)

Weighted average number of shares in issue




  (excluding shares held in Treasury)

1,144,084,836

1,166,901,335

1,162,832,611

Revenue return per share

0.70p

0.64p

1.94p

Capital return/(loss) per share

2.81p

0.69p

(2.11)p

Total return/(loss) per share

3.51p

1.33p

(0.17)p

4.       Dividends paid


(Unaudited)

(Unaudited)

(Audited)

 

Six months ended

Six months ended

Year ended

 

31st December 2023

31st December 2022

30th June 2023

 

£'000

£'000

£'000

Dividend paid

 

 

 

2023 final dividend of 1.07p (2022: 0.83p)

12,265

9,683

9,683

2023 interim dividend of 0.58p

-

-

6,734

Total dividends paid in the period/year

12,265

9,683

16,417

All dividends paid in the period have been funded from the revenue reserve.

An interim dividend of 0.60p (2023: 0.58p) per share amounting to £6,814,000 (2023: £6,734,000), has been declared payable in respect of the six months ended 31st December 2023. The interim dividend will be paid on 26th April 2024 to shareholders on the register at the close of business on 15th March 2024. The ex-dividend date will be 14th March 2024.

5.       Net asset value per share

 

(Unaudited)

(Unaudited)

(Audited)

 

Six months ended

Six months ended

Year ended

 

31st December 2023

31st December 2022

30th June 2023

 

 

 

 

Net assets (£'000)

1,342,450

1,367,536

1,329,822

Number of shares in issue

1,135,693,085

1,163,258,513

1,150,629,365

Net asset value per share

118.2p

117.6p

115.6p

6.       Fair valuation of instruments

The fair value hierarchy disclosures required by FRS 102 are given below.

    

 

(Unaudited)

(Unaudited)

(Audited)

 

Six months ended

Six months ended

Year ended

 

31st December 2023

31st December 2022

30th June 2023

 

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

 

£'000

£'000

£'000

£'000

£'000

£'000

Level 1

1,346,836

-

1,323,325

-

1,310,951

-

Level 31

58

-

61

-

58

-

Total value of investments

1,346,894

-

1,323,386

-

1,311,009

-

1      The Level 3 investment relates to the Company's holding in the Russian stock Sberbank of Russia.

There have been no transfers between Levels 1, 2 or 3 during the year.

 

Equity

 

Equity

 

Equity

 

  

Investments

Total

 Investments

Total

Investments

Total

Level 31

£'000

£'000

£'000

£'000

£'000

£'000

Opening balance

58

58

60

60

60

60

Change in fair value of unquoted investment







  during the period/year

-

-

1

1

(2)

(2)

Total

58

58

61

61

58

58

1     The Level 3 investment relates to the Company's holding in the Russian stock Sberbank of Russia.

The price of this stock has been determined by taking the live market price as at 25th February 2022 and applying a 99% haircut.

 

JPMORGAN FUNDS LIMITED

23rd February 2024

 

 

     For further information, please contact:

     Alison Vincent

     For and on behalf of

     JPMorgan Funds Limited

     020 7742 4000

 

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.

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

ENDS

A copy of the Half Year Report has been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

The Half Year Report will also shortly be available on the Company's website at www.jpmemergingmarkets.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

 

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END
 
 
UK 100