TIDMJAGI
RNS Number : 4097A
JPMorgan Asia Growth & Income PLC
24 May 2023
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN ASIA GROWTH AND INCOME PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHSED 31ST MARCH
2023
Legal Entity Identifier: 5493006R74BNJSJKCB17
Information disclosed in accordance with DTR 4.2.2
CHAIRMAN'S STATEMENT
Performance
This is my first statement as Chairman of your Company, so I am
particularly glad to report that the Company's return on net assets
over the six months ended 31st March 2023 was +11.4%, while the
return to Ordinary shareholders was +13.2%, reflecting a narrowing
of the Company's share price discount to net asset value ('NAV')
over the period. The Company significantly outperformed its
benchmark, the MSCI Asia ex Japan Index, which returned +4.9%, a
result which is consistent with the Company's long-term track
record of absolute returns and outperformance.
Asian markets were buoyed during the review period by China's
sudden decision to abandon its 'zero Covid' policy and to lift all
restrictions on activity. There were also signs of a shift towards
a more pro-growth, pro-business stance by the Chinese authorities,
which boosted regional equity markets. The market rally lifted the
performance of your Company, while its outperformance of the market
was the result of the Investment Managers' stock selection
decisions - which stocks to hold, which to overweight and which to
avoid.
A market review, an appraisal of performance and portfolio
positioning, together with an assessment of the outlook, can be
found in the accompanying Investment Managers' report.
Continuation Vote
I am pleased to report that, at the Company's Annual General
Meeting held in February 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.
Dividend Policy
In the absence of unforeseen developments, the Company aims to
pay regular, quarterly dividends, each equivalent to 1% of the
Company's NAV. Payments are set based on the NAV on the last
business day of each financial quarter, being the end of December,
March, June and September, and are funded from a combination of
revenue and capital reserves.
For the year ended 30th September 2022, dividends paid totalled
16.5 pence (2021: 19.3 pence). In respect of the following two
quarters ended 31st December 2022 and 31st March 2023 respectively,
quarterly dividends of 4.0 pence were paid, totalling 8.0 pence.
Two further dividends will be declared on the first business day
after 30th June and 30th September 2023.
Dividends are based upon a percentage of net assets, so the
dividend paid to shareholders will reflect the Company's net assets
at the particular quarter end, and will thus be subject to market
fluctuations.
Premium/Discount and Share Capital Management
The discount at which the Company's shares trade narrowed during
the review period, ending at 8.3%, which remains broadly in line
with the discounts of its immediate peers. The Board has utilised
the Company's buy back powers over the period, buying in a total of
2,476,914 shares (representing 2.6% of issued share capital) and
holding them in Treasury. The Board's view is that buy back
activity can help balance the demand for and supply of the
Company's shares, while maintaining underlying liquidity.
Gearing
The Company has in place a multi-currency loan facility with
Scotiabank. The Investment Managers utilise drawdowns from this
loan facility to gear the portfolio during periods when they expect
gearing to enhance performance. Over the reporting period and at
the time of writing, the Company was not geared.
Board Succession
Bronwyn Curtis retired as Chair of the Company following the
Annual General Meeting on 15th February 2023. Bronwyn joined the
Board in 2013 and served as a Director for nine years, the latter
five as Chair. The Board and the Company benefited greatly from
Bronwyn's counsel, dedication and leadership during her tenure, and
we wish her well for the future.
The Board plans for succession to ensure it retains an
appropriate balance of skills and knowledge. To this end, the Board
was pleased to announce the appointments of Diana Choyleva and
Kathryn Matthews with effect from 1st March and 1st June 2023
respectively. For full details of Diana's and Kathryn's experience,
please refer to the Stock Exchange announcement released by the
Company on 2nd December 2022. Dean Buckley, who joined the Board in
2014, will be retiring at the Company's Annual General Meeting to
be held in February 2024. June Aitken will succeed Dean in the role
of Audit Committee Chair. Following Dean's retirement, the Board
will once again comprise five Directors.
In 2022, the FCA published new rules to encourage companies to
be more transparent about the ethnic and gender diversity of their
boards. The rules take effect for accounting periods starting after
1st April 2022, so the Company is required to report on these
matters in its Annual Report. However, I am already able to confirm
that once June has taken on the role of Audit Committee Chair, the
Company's Board constitution will comply with the FCA's ethnic and
gender diversity guidelines for listed companies. It will also
comply with the recommendations of the Hampton-Alexander Review
concerning female representation on the Board. In the absence of
any unforeseen circumstances, it is the Board's intention that the
Company will remain compliant with these requirements.
Keeping in Touch
The Board and the Investment Managers are also keen to increase
dialogue with the Company's existing shareholders. Investors
holding their shares through online platforms will shortly receive
a letter inviting them to sign up to receive email updates from the
Company. These updates will deliver regular news and views, as well
as the latest performance statistics. If shareholders wish to sign
up to receive these communications, please visit
https://tinyurl.com/d95jkrzx or scan the QR code on page 9 of the
Company's Half Year Report for the six months ended 31st March 2023
('2023 Half Year Report').
Outlook
The international investment climate remains particularly
uncertain. The war in Ukraine, combined with China's territorial
ambitions in relation to Taiwan, mean global geo-political tensions
are at their highest for many decades. On the economic front, the
good news is that last year's aggressive monetary tightening by the
US Federal Reserve and other central banks appears to be having its
desired effect - inflation pressures are slowly subsiding across
the major western economies. The likely pace of interest rate
reductions is unclear. However, it remains to be seen whether high
interest rates will result in at least a mild recession in the US
and elsewhere. Recent instability in some smaller US financial
institutions has given investors a fresh source of concern.
Asian economies are currently faring much better. China, India
and other regional economies are all expected to achieve annual GDP
growth of 5% or more this year, and next, while inflation, although
elevated, is less of a concern than in western countries. The Asian
region's longer-term growth prospects are also positive. Very
favourable structural trends such as digitalisation, urbanisation
and the expansion of the middle class should continue to support
rapid productivity increases and economic growth. This vibrant
environment is likely to generate many attractive investment
opportunities. In addition, Asian equity market valuations look
appealing compared with both the US and Europe.
So, in all, there seem to be solid grounds for our Investment
Managers positive view on the outlook for Asian equities. The Board
shares their optimism about the market outlook and the Company's
ability to continue delivering capital gains and an attractive
income to shareholders over the long-term.
On behalf of the Board, I would like to thank you for your
continuing support.
Sir Richard Stagg
Chairman
24th May 2023
INVESTMENT MANAGERS' REPORT
Performance
During the period under review, Asian stock markets delivered
positive gains. The Company's benchmark, the MSCI AC Asia ex Japan
Index, rose 4.9% (in GBP terms) in the six months ending March
2023. Your Company decisively outperformed the benchmark, making a
total return on net assets of 11.4%, thanks to stock selection
decisions, notably in China, Hong Kong and India. This latest
result extends the Company's long-term track record of absolute
returns and outperformance. Over the 10 years to end March 2023,
the Company realised an average annualised return of 8.3% in NAV
terms, compared to a benchmark return of 6.2%.
In this report, we will discuss the major market developments
during the review period, recent contributors to performance,
current portfolio structure and the outlook for the remainder of
2023.
The market environment
Investor sentiment improved in the first half of the Company's
financial year, as evidenced by the rise in the Company's benchmark
over the six-month period to 31st March 2023. The main driver of
market gains was a significant improvement in China's economic
prospects. This time last year, the outlook for Chinese growth, and
equity markets, was beset by a multitude of woes including
stringent COVID lockdowns, restrictions on the property sector and
internet companies and persistent geo-political risks. While
tensions with the West have since escalated, due to China's
territorial claim over Taiwan, the government's sudden, complete
abandonment of its 'zero COVID' policy in November last year
cleared the way for a resumption of normal economic and social
activity and marked a turning point for markets. Investors also
welcomed signs of a more pro-growth stance by Chinese authorities,
including measures to support the property sector, improve access
to credit and ease regulatory restrictions on gaming and internet
service companies. The MSCI China Index rose 7% (in GBP terms) over
the review
period and the economy is expected to rebound sharply in
2023.
Over the same period, Taiwanese and South Korea equity markets
both rose nearly 15%, buoyed by an improvement in the outlook for
technology stocks. Taiwan Semiconductor Manufacturing Company
(TSMC), the world's leading semiconductor manufacturer, warned of a
shaky start to 2023, with first quarter 2023 sales forecast to fall
15% quarter-on-quarter, but the company predicted a second half of
the calendar year recovery which it expects to lift revenues by 5%
over the year - welcome news for many who had feared a more
protracted slump in IT spending. This anticipated increase in IT
spending is underpinned by several structural forces, including the
trends towards factory automation and the use of high-performance
computing, including Artificial Intelligence ('AI') applications,
along with the increasing semiconductor content required by
electric vehicles.
Both India and Indonesia underperformed over the past six
months. The MSCI India Index fell 14%, primarily due to a
significant correction in the Adani group of listed companies,
which came under pressure following a short-seller report that
alleged the group had engaged in accounting fraud and flagged the
high levels of the group's debt. In addition, there was a general
rotation out of the markets that outperformed in 2022, which
weighed on both Indian and Indonesian markets over the period up to
the end of March.
The conflict in Ukraine is now in its second year and there is
no end in sight. As Jamie Dimon, Chairman and CEO of JPMorgan
Chase, wrote in his 2022 annual letter to shareholders of JP Morgan
Chase 'Wars are unpredictable, and at the start, most predictions
about how they will end have been completely wrong', so it is
pointless and possibly risky, in our view, to try to forecast the
outcome. While it drags on, the war will continue to affect global
energy and food supplies, and heighten market volatility, while
also forcing a rethink of many economic and regional alliances.
PERFORMANCE ATTRIBUTION
FOR THE SIX MONTHSED 31ST MARCH 2023
% %
-------------------------------------- ----- -----
Contributions to total returns
-------------------------------------- ----- -----
Benchmark return (in sterling terms) 4.9
-------------------------------------- ----- -----
Stock selection 6.3
-------------------------------------- ----- -----
Currency effect 0.2
-------------------------------------- ----- -----
Gearing/Cash 0.1
-------------------------------------- ----- -----
Investment manager contribution 6.6
-------------------------------------- ----- -----
Dividend/residual(1) -0.1
-------------------------------------- ----- -----
Portfolio return 11.4
Management fee/other expenses -0.3
-------------------------------------- ----- -----
Share buy-back 0.3
-------------------------------------- ----- -----
Return on net assets 11.4
-------------------------------------- ----- -----
Return to shareholders(A) 13.2
-------------------------------------- ----- -----
(1) The dividend/residual arises principally from timing
differences in the treatment of income flows.
(A) Alternative Performance Measure ('APM').
Source: FactSet, JPMAM and Morningstar.
All figures are on a total return basis. Performance attribution
analyses how the portfolio achieved its recorded performance
relative to its benchmark.
A glossary of terms and APMs is provided on pages 29 and 30 of
the 2023 Half Year Report.
Major Contributors and Detractors to Performance
T he largest contributors to the Company's outperformance over
the past six months resulted from the portfolio's stock selection
decisions in a diverse range of Chinese industries that
outperformed the market over the period. These included overweight
allocations to internet conglomerates, property developers and
manufacturers of construction machinery and textiles. Relative
returns were further enhanced by the strong performance of the
Company's positions in several Hong Kong-listed holdings whose
fortunes are closely linked to China. The portfolio was overweight
Hong Kong based brewers, insurance companies and stock exchanges,
all of which outperformed. Portfolio gains were further enhanced by
an underweight allocation in India, which fell sharply, as detailed
above.
At the stock level, the largest contributor to returns over the
review period was an overweight position in Tencent, China's
internet conglomerate giant. Tencent is the world's largest vendor
of video games. It also operates one of the biggest social media
platforms, along with fintech, advertising and various other
enterprises. The company benefited from the recent easing in
regulatory restrictions on on-line gaming as well as benefiting
from the broader recovery in the economy through the company's
payments and online advertising businesses. Another significant
contributor was our overweight allocation to Hong Kong Exchanges
and Clearing Limited (HKEC), which offers securities trading,
clearing, and settlement, depository and market data services.
After a 25% slump in daily market turnover in 2022, signs of better
times ahead boosted HKEC's recent performance - the stock rose
nearly 20% over the review period. One factor supporting the stock
was an encouraging recovery in the IPO market in the second half of
2022, with volumes more than four times greater than in the first
half. We expect HKEC's future growth to be driven by its Stock
Connect franchise, which links mainland China's capital markets to
Hong Kong and international markets. This link has effectively
created one of the world's largest equity markets by market cap and
daily turnover and added around 1,400 stocks to the investable
universe.
Other positive contributors to portfolio returns over the review
period included Sany Heavy Industries, China's leading excavator
manufacturer, an out-of-index position in Jiangsu Hengli Hydraulic
Co, another Chinese company exposed to construction machinery and
AIA, a pan-Asian insurer headquartered in Hong Kong. Our decision
to avoid exposure to Reliance Industries, an Indian multinational
conglomerate, also contributed to relative returns.
The most significant detractor from returns was Taiwan's Giant
Manufacturing, one of the world's largest makers of bicycles and
e-bikes. Demand for both categories grew quickly during the
pandemic, but supply constraints limited the industry's ability to
meet underlying demand. This left manufacturers such as Giant with
excess component inventory, resulting in a deterioration of working
capital and a sharp fall in returns. But despite this near-term
setback, and a mixed outlook for lower-priced traditional bicycles,
structural demand for e-bikes remains strong, and we continue to
hold the stock. Other key detractors were stocks that we did not
hold and included India's ICICI Prudential Life Insurance, which
outperformed on the back of strong corporate earnings results, and
Alibaba, which rose with the general re-rating of the Chinese stock
market.
Portfolio Activity over the past six months
Recent market volatility has created opportunities for us to
purchase stocks at more attractive levels. For example, we
initiated a position in China's leading utility company, China
Yangtze Power. The company is expanding the capacity of its
existing dams and hydro storage facilities and making marginal
increases in its exposure to renewable energy, and these factors
are all contributing to earnings growth. Yet the company's
valuation is still attractive, and it offers a 4% dividend
yield.
We also added to an existing position in Telekom Indonesia,
Indonesia's leading fixed-line telephone and mobile carrier. The
company has four main competitive advantages - a strong balance
sheet that should sustain its 4-5% dividend yield, increasing
market share as a result of industry consolidation, more attractive
pricing structures than its competitors and exposure to the
long-term growth in fixed broadband penetration.
Our largest outright sale over the past six months was Alibaba.
In our view, the outlook for the company's core domestic e-commerce
business is being challenged by new competitors, and it is unlikely
the company will regain lost market share. Alibaba announced a
restructuring plan to split six of its major businesses into
separately managed entities, with the aim of incentivizing
management to improve execution, but many similar previous attempts
to unlock value have fallen short. We also sold profitable holdings
in Budweiser Brewing Asia and Chinese travel company Trip.com,
which both performed strongly following China's reopening and the
associated improvement in domestic demand.
What investors should expect over the next six months
There is increasing evidence that last year's aggressive
monetary tightening by the US Federal Reserve, the Bank of England
and the European Central Bank is slowing the pace of inflation in
these major economies. While this is certainly welcome news, it has
come at the cost of weaker growth, lower corporate earnings growth
and financial instability in parts of the banking sector, notably
in the US, where the emergency buy-out of Californian bank First
Republic is the latest unsettling event.
However, while western economies struggle to contain inflation,
avoid recession and shore-up shaky financial institutions, the
picture in Asia is much brighter. From a top-down perspective, the
region boasts large, vibrant, expanding economies that together
account for roughly 40% of the world's GDP, while from the bottom
up, Asian businesses are global leaders in a wide range of sectors
including banking, semiconductor manufacturing, insurance,
healthcare, renewable energy and next generation automotive
production.
Asian markets are also benefiting from improving structural
trends. As just one of many examples, in Indonesia, improvements in
transport infrastructure and a visible reduction in traffic
congestion in the country's largest cities have resulted in
efficiency gains in transportation, logistics and employment.
Previous estimates valued total costs in these areas at 25-30% of
GDP, but this figure has now dropped to 20%. The Indonesian economy
has also benefited from efforts to add value to its exports. In the
past, the country was prone to the typical boom and bust cycles of
commodity-based economies - high economic growth was driven by
exports of unprocessed commodities, which increased domestic
consumption, but higher imports of consumer goods pushed up the
current account deficit and destabilised the currency. However,
since 2015, Indonesia has focused on developing more downstream
industries which add value to its raw materials, and create a
virtuous cycle that raises selling prices, profits, wages, living
standards and export values, thereby reducing the current account
deficit. Prior to 2020, Indonesia frequently ran a current account
deficit of 2-3% of GDP, but the current account has now shifted
into positive territory.
The long-term growth prospects of Asian economies are clearly
very positive and valuations in many markets across the region are
presently attractive. The MSCI AC Asia ex Japan Index is trading at
1.5x price to book, which is approximately 5% lower than its
average over the last 20 years. Following the sharp recovery in
Chinese and Hong Kong equities, valuations in these markets are
less attractive, and Indian company valuations remain elevated, but
South Korea continues to trade at a substantial discount to its
market average.
Despite persistent uncertainties related to the war in Ukraine
and regional geo-political tensions, Asia's powerful combination of
strong growth, innovation, favourable structural trends, and
attractive valuations - at least in some key markets - underpins
our belief that Asian equity markets continue to provide many
attractive investment opportunities. We remain confident that our
long experience, both local and global presence and focus on the
fundamental analysis of specific stocks will allow us to keep
identifying the region's best opportunities, ensuring the Company
continues to provide our shareholders with attractive returns,
outperformance and a competitive dividend over the long-term.
Ayaz Ebrahim
Robert Lloyd
Investment Managers
24th May 2023
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its
half year report:
Principal Risks and Uncertainties
The principal and emerging risks faced by the Company fall into
the following broad categories: investment and strategy, political
and economic, operational risk and cybercrime, climate change and
global pandemic. Information on the principal and emerging risks
faced by the Company is given in the business review section within
the 2022 Annual Report and Financial Statements.
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 during the period.
Going Concern
The Directors believe, having considered the Company's
investment objectives, risk management policies, capital management
policies and procedures, nature of the portfolio (being mainly
securities which are readily realisable) 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-yearly
financial report. For these reasons, they consider there is
reasonable evidence to adopt the going concern basis in preparing
the financial statements. This conclusion also takes into account
the Board's assessment of the impact of heightened market
volatility since the COVID-19 outbreak and more recently the
Russian invasion of Ukraine, but does not believe the Company's
going concern status is affected.
Continuation votes are held every three years and the next
continuation vote will be put to shareholders at the Annual General
Meeting in 2026.
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 March 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:
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
Sir Richard Stagg
Chairman
24th May 2023
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st March 2023 31st March 2022 30th September
2022
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- --------- -------- --------- --------- ---------- --------- -------- --------- ---------
Gains/(losses) on
investments
held at fair value
through
profit or loss - 37,196 37,196 - (31,212) (31,212) - (75,909) (75,909)
Net foreign
currency
(losses)/gains - (90) (90) - 62 62 - 220 220
Income from
investments 3,289 - 3,289 2,505 - 2,505 7,882 - 7,882
Interest receivable
and
similar income 55 - 55 50 - 50 102 - 102
-------------------- --------- -------- --------- --------- ---------- --------- -------- --------- ---------
Gross return/(loss) 3,344 37,106 40,450 2,555 (31,150) (28,595) 7,984 (75,689) (67,705)
Management fee (1,003) - (1,003) (1,260) - (1,260) (2,155) - (2,155)
Other
administrative
expenses (467) - (467) (337) - (337) (698) - (698)
-------------------- --------- -------- --------- --------- ---------- --------- -------- --------- ---------
Net return/(loss)
before
finance costs and
taxation 1,874 37,106 38,980 958 (31,150) (30,192) 5,131 (75,689) (70,558)
Finance costs (36) - (36) (21) - (21) (43) - (43)
-------------------- --------- -------- --------- --------- ---------- --------- -------- --------- ---------
Net return/(loss)
before
taxation 1,838 37,106 38,944 937 (31,150) (30,213) 5,088 (75,689) (70,601)
Taxation
(charge)/credit (396) 27 (369) 247 (394) (147) (125) (389) (514)
-------------------- --------- -------- --------- --------- ---------- --------- -------- --------- ---------
Net return/(loss)
after taxation 1,442 37,133 38,575 1,184 (31,544) (30,360) 4,963 (76,078) (71,115)
-------------------- --------- -------- --------- --------- ---------- --------- -------- --------- ---------
Return/(loss) per
share (note 3) 1.52p 39.08p 40.60p 1.21p (32.29)p (31.08)p 5.09p (77.95)p (72.86)p
All revenue and capital items in the above statement derive from
continuing operations.
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 period and also the total comprehensive income.
CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31ST MARCH 2023
Called Exercised Capital
up
share Share warrant redemption Capital Revenue
capital premium reserve reserve reserves(1) reserve(1) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
Six months ended 31st
March 2023 (Unaudited)
At 30th September 2022 24,449 46,705 977 25,121 261,308 - 358,560
Repurchase of shares
into Treasury - - - - (8,343) - (8,343)
Net return/(loss) - - - - 37,133 1,442 38,575
Dividends paid in the
period (note 4) - - - - (5,916) (1,442) (7,358)
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
At 31st March 2023 24,449 46,705 977 25,121 284,182 - 381,434
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
Six months ended 31st
March 2022 (Unaudited)
At 30th September 2021 24,449 46,705 977 25,121 352,948 - 450,200
Repurchase of shares
into Treasury - - - - (131) - (131)
Net (loss)/return - - - - (31,544) 1,184 (30,360)
Dividends paid in the
period (note 4) - - - - (7,706) (1,184) (8,890)
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
At 31st March 2022 24,449 46,705 977 25,121 313,567 - 410,819
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
Year ended 30th September
2022 (Audited)
At 30th September 2021 24,449 46,705 977 25,121 352,948 - 450,200
Repurchase of shares
into Treasury - - - - (3,534) - (3,534)
Net (loss)/return - - - - (76,078) 4,963 (71,115)
Dividends paid in the
year (note 4) - - - - (12,028) (4,963) (16,991)
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
At 30th September 2022 24,449 46,705 977 25,121 261,308 - 358,560
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
1 These reserves form the distributable reserves of the Company
and may be used to fund distributions to investors.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
At At At
31st March 31st March 30th September
2023 2022 2022
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------ ------------ ---------------
Fixed assets
Investments held at fair value through
profit or loss 379,850 407,384 358,303
---------------------------------------- ------------ ------------ ---------------
Current assets
Derivative financial assets - - 2
Debtors 5,546 6,322 587
Cash and cash equivalents 8 1,107 454
---------------------------------------- ------------ ------------ ---------------
5,554 7,429 1,043
Creditors: amounts falling due within
one year (3,970) (3,993) (786)
Derivative financial liabilities - (1) -
---------------------------------------- ------------ ------------ ---------------
Net current assets 1,584 3,435 257
---------------------------------------- ------------ ------------ ---------------
Total assets less current liabilities 381,434 410,819 358,560
---------------------------------------- ------------ ------------ ---------------
Net assets 381,434 410,819 358,560
---------------------------------------- ------------ ------------ ---------------
Capital and reserves
Called up share capital 24,449 24,449 24,449
Share premium 46,705 46,705 46,705
Exercised warrant reserve 977 977 977
Capital redemption reserve 25,121 25,121 25,121
Capital reserves 284,182 313,567 261,308
---------------------------------------- ------------ ------------ ---------------
Total shareholders' funds 381,434 410,819 358,560
---------------------------------------- ------------ ------------ ---------------
Net asset value per share (note 5) 404.6p 420.5p 370.6p
---------------------------------------- ------------ ------------ ---------------
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st March 31st March 30th September
2023 2022(1) 2022(1)
GBP'000 GBP'000 GBP'000
------------------------------------------------ ------------ ------------ --------------
Cash flows from operating activities
Net return/(loss) before finance costs
and taxation 38,980 (30,192) (70,558)
Adjustment for:
Net gains on investments held at fair
value through profit or loss (37,196) 31,212 75,909
Net foreign currency losses/(gains) 90 (62) (220)
Dividend income (3,289) (2,505) (7,882)
Interest income (15) (1) (10)
Realised gain on foreign exchange transactions (122) (160) (166)
Realised exchange (gain)/loss on Liquidity (31) 104 197
Increase in accrued income and other
debtors (14) (13) (5)
Decrease in accrued expenses (25) (64) (26)
------------------------------------------------ ------------ ------------ --------------
Net cash used in operating activities (1,622) (1,681) (2,761)
------------------------------------------------ ------------ ------------ --------------
Dividends received 1,647 999 7,007
Interest received 15 1 10
Overseas withholding tax (suffered)/recovered (18) 194 272
Capital gains tax paid 27 - -
------------------------------------------------ ------------ ------------ --------------
Net cash inflow/(outflow) from operating
activities 49 (487) 4,528
------------------------------------------------ ------------ ------------ --------------
Purchases of investments and derivatives (84,176) (102,642) (196,879)
Sales of investments and derivatives 97,228 111,963 211,835
Settlement of foreign currency contracts - 40 (4)
------------------------------------------------ ------------ ------------ --------------
Net cash inflow from investing activities 13,052 9,361 14,952
------------------------------------------------ ------------ ------------ --------------
Equity dividends paid (7,358) (8,890) (16,991)
Repurchase of shares into Treasury (8,275) (430) (3,679)
Interest paid (26) (22) (43)
Utilisation of bank overdraft 2,047 - -
------------------------------------------------ ------------ ------------ --------------
Net cash outflow from financing activities (13,612) (9,342) (20,713)
------------------------------------------------ ------------ ------------ --------------
Decrease in cash and cash equivalents (511) (468) (1,233)
------------------------------------------------ ------------ ------------ --------------
Cash and cash equivalents at start of
year 454 1,496 1,496
Unrealised gain on foreign currency
cash and cash equivalents 65 79 191
------------------------------------------------ ------------ ------------ --------------
Cash and cash equivalents at end of
year 8 1,107 454
------------------------------------------------ ------------ ------------ --------------
Cash and cash equivalents consist of:
Cash and short term deposits - 1,100 445
Overdrafts (2,047) - -
Cash held in liquidity fund 8 7 9
------------------------------------------------ ------------ ------------ --------------
Total (2,039) 1,107 454
------------------------------------------------ ------------ ------------ --------------
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/loss before finance costs to cash inflow/(outflow)
from operating activities on the face of the Cash Flow Statement.
Previously, this was shown by way of note. Other than changes in
presentation of the certain cash flow items, there is no change to
the cash flows as presented in previous periods.
RECONCILIATION OF NET DEBT
As at As at
30th September Exchange 31st March
2022 Cash flows movements 2023
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- --------------- ----------- ---------- -----------
Cash and cash equivalents
Cash 445 (510) 65 -
Overdrafts - (2,047) - (2,047)
Cash equivalents 9 (1) - 8
--------------------------- --------------- ----------- ---------- -----------
Total 454 (2,558) 65 (2,039)
--------------------------- --------------- ----------- ---------- -----------
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31ST MARCH 2023
1. Financial statements
The information contained within the financial statements in
this 2023 Half Year Report has not been audited or reviewed by the
Company's auditors.
The figures and financial information for the year ended 30th
September 2022 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 include 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
Basis of accounting
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 'SORP')
issued by the Association of Investment Companies in July 2022.
FRS 104, 'Interim Financial Reporting', issued by the FRC in
March 2015 has been applied in preparing this condensed set of
financial statements for the six months ended 31st March 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 September 2022.
3. Return/(loss) per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st March 31st March 30th September
2023 2022 2022
GBP'000 GBP'000 GBP'000
--------------------------- ------------ ------------ ---------------
Return per share is based
on the following:
Revenue return 1,442 1,184 4,963
Capital return/(loss) 37,133 (31,544) (76,078)
--------------------------- ------------ ------------ ---------------
Total return/(loss) 38,575 (30,360) (71,115)
--------------------------- ------------ ------------ ---------------
Weighted average number
of shares in issue 95,014,494 97,694,197 97,596,359
Revenue return per share 1.52p 1.21p 5.09p
Capital return/(loss) per
share 39.08p (32.29)p (77.95)p
--------------------------- ------------ ------------ ---------------
Total return/(loss) per
share 40.60p (31.08)p (72.86)p
--------------------------- ------------ ------------ ---------------
4. Dividends
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st March 31st March 30th September
2023 2022 2022
GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------ ---------------
Dividends paid
2022 second quarterly dividend
of 4.2p - - 4,494
2022 third quarterly dividend
of 4.1p - - 4,396
2022 fourth quarterly dividend
of 4.6p (2021: 4.6p) 3,569 4,494 4,103
2023 first quarterly dividend
of 4.0p (2022: 4.5p) 3,789 4,396 3,998
-------------------------------- ------------ ------------ ---------------
Total dividends paid in
the period/year 7,358 8,890 16,991
-------------------------------- ------------ ------------ ---------------
A second interim dividend of 4.0p has been declared for payment
on 24th May 2023 for the financial year ending 30th September
2023.
Dividend payments in excess of the revenue amount will be paid
out of the Company's distributable capital reserve.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months Year ended
ended
31st March 2023 31st March 30th September
2022 2022
--------------------------- ----------------- ------------ ---------------
Net assets (GBP'000) 381,434 410,819 358,560
Number of shares in issue 94,279,354 97,694,197 96,756,268
--------------------------- ----------------- ------------ ---------------
Net asset value per share 404.6p 420.5p 370.6p
--------------------------- ----------------- ------------ ---------------
JPMORGAN FUNDS LIMITED
24th May 2023
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.
ENDS
A copy of the 2023 Half Year Report will shortly be submitted to
the FCA's National Storage Mechanism and will be available for
inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The 2023 Half Year Report will shortly be available on the
Company's website at www.jpmasiagrowthandincome.co.uk where
up-to-date information on the Company, including daily NAV and
share prices, factsheets and portfolio information can also be
found.
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END
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