Final results to 30th June 2025
Summary by AI BETAClose X
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 charges1 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 losses as a result of factors that affect the overall performance of the entire market simultaneously, i.e. systematic risk. This market risk comprises three elements - equity market risk, currency risk and interest rate risk. In addition, the Board is cognisant of the increased threat of a polycrisis, i.e. the simultaneous occurrence of several events which interact such that, the overall impact exceeds the sum of each part. |
The Board and Manager monitor and review these market risks and their potential impact on the portfolio. This is a risk that investors take having invested into a global equities fund. The Board receives regular reports from the Manager regarding market outlook and gives the Portfolio Managers discretion over acceptable levels of gearing and/or cash. In addition, there is the recognition of the need for an effective response to the multifaceted challenges posed by a polycrisis by proactive risk management, diversification, robust contingency planning, and a focus on sustainability and stakeholder engagement. |
áâ The Board's assessment of this risk remains high, albeit unchanged from the previous year, due to the continuing uncertainty and volatility in the markets. |
|
Geopolitical leading to a risk of global conflict |
Geopolitical risk is the potential for political, socio-economic and cultural events and developments to have an adverse effect on the value of the Company's assets. The Company and its assets may be impacted by geopolitical instability, in particular concerns over global economic growth. There appears to be an increasing risk to market stability and investment opportunities from the increasing number of worldwide geopolitical conflicts at present, not least as a result of potential trade tariffs and the resulting retaliatory 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. |
It is not possible to directly control this risk. However, it can be managed to some extent by diversification of investments and by regular communication with the Manager about in-house research, matters of investment strategy and portfolio construction, which will directly or indirectly include an assessment of these risks. In addition, an increase in volatility can present an opportunity for our Portfolio Managers to invest in quality stocks at attractive valuations. |
áâ The Board's assessment of this risk remains high, albeit unchanged from the prior year, owing to continued geopolitical tensions and conflicts around the world, including the war in Ukraine, China/US tensions and the conflict in the Middle East. |
|
Cyber security |
|||
|
Cyber security |
Disruption to, or failure of, the Manager's accounting, dealing or payments systems or the Custodian's or Depositary's records from a cyber attack could prevent accurate reporting and monitoring of the Company's financial position. This threat has increased with advances in computing power that has seen a greater use of Artificial Intelligence ('AI'). In addition to threatening the Company's operations, such an attack is likely to raise reputational issues which may damage the Company's share price and reduce demand for its ordinary shares. The Company is dependent on third-party service providers for the provision of all of its services and systems, especially those of the Manager and the Depositary. |
The Manager has assured the Directors that the Company benefits directly or indirectly from all elements of JPMorgan's cybersecurity 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 and reported on by independent auditors every six months against industry standards. On an annual basis, the Board receives a presentation from representatives of JPMorgan on its cybersecurity programme. 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. |
áâ The Board's assessment of this risk remains high, albeit unchanged from the prior year. To date, the Manager's, Registrar's, and the Depositary's cybersecurity arrangements have proven robust and the Company has not been impacted by any cyber attacks threatening its operations. |
|
Investment and Strategy |
|||
|
Investment and strategy |
An inappropriate investment strategy, or one that is poorly implemented - such as in thematic exposure, sector allocation, stock selection, concentration of holdings, factor risk exposure, the level of gearing, or the degree of total portfolio risk - may lead to underperformance against the Company's Benchmark and peer companies, resulting in the Company's ordinary shares trading at a wider discount to NAV per share. |
The Board mitigates this risk through its investment policy and guidelines, which are monitored and reported on regularly by the Manager. The Board monitors the implementation and results of the investment process with the Portfolio Managers and regularly reviews and monitors the Company's objective and investment policy and strategy; the investment portfolio and its 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. |
áâ The Board's assessment of this risk remains stable, and unchanged from the prior year. The Company's performance remains ahead of the Benchmark over five and ten years. |
|
Operational |
|||
|
Operational |
Loss of key staff by the Manager, their expertise and ability to source and advise appropriately on investments, 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. The Company is dependent on third-party service providers for the provision of services and systems, especially those of the Manager and the Depositary to run the business. and as such disruption to, or a failure of, those systems could lead to a failure to comply with law and regulations leading to reputational damage and/or financial loss. |
The Board keeps the services of the Manager and third-party service providers under continuous review, and the Management Engagement Committee undertake a formal evaluation of their performance on an annual basis. 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 within the Risk Management and Internal Control section of the Corporate Governance Report. The Audit Committee receives a summary of the findings from the independently audited reports on the Manager's and other key third-party service providers' internal controls. The Company is subject to an annual external audit. Both the Manager and its third-party service providers have robust business continuity plans. |
áâ The Board's assessment of this risk remains stable, and unchanged from the prior year. The Board continues to monitor the outsourced services and an annual appraisal of the performance, and ongoing appointment, of the Manager and the Company's third-party service providers is undertaken by the Management Engagement Committee. |
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 faltering demand for investment companies |
Active ETFs are low cost, liquid vehicles that can provide investors with actively managed exposure to asset classes such as global equities. In addition, discount volatility is alleviated to a significant extent, thereby addressing one of the key downsides of investment trusts. |
The Company takes advantage of the benefits of the investment trust structure, which cannot easily be accessed by ETFs, such as the deployment of gearing and providing investors with an enhanced dividend. Furthermore, the Company's 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. |
This has been identified as a new emerging risk. |
|
Potentially material changes to the UK tax and investment regime |
Future changes to both the tax regime and current regulations on savings may have a detrimental impact on UK investors as well as demand for the Company's shares. |
The Company can do very little to directly influence the policies of the UK Government. However, it is a member of the Association of Investment Companies 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. |
This has been identified as a new emerging risk. |
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 |
reserve1,2 |
reserves2 |
reserve2 |
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 forfeiture3 |
- |
- |
- |
- |
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 dividends3 (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 |
£'0001 |
|
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 investments1 |
174,752 |
158,877 |
|
Cash at bank1 |
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 taxation |
(11,844) |
(10,036) |
|
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
E-mail: 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
The 2025 Annual Report will also shortly be available on the Company's website at 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.
Stay Informed
To receive targeted email updates on the Company, to include occasional news and views, as well as performance updates, you can sign up and 'keep in the know', by opting in here.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund