TIDMJARA TIDMJARU TIDMJARE
RNS Number : 9756H
JPMorgan Global Core Real Assets Ld
29 November 2022
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL CORE REAL ASSETS LIMITED
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHSED 31ST AUGUST 2022
Legal Entity Identifier: 549300D8JHZTH6GI8F97
Information disclosed in accordance with the DTR 4.2.2
CHAIRMAN'S STATEMENT
Introduction
I am pleased to present the interim report for JPMorgan Global
Core Real Assets Limited (the 'Company', or 'JARA') for the six
months ended 31st August 2022.
This has been an encouraging period for JARA. The Company
recorded a total return on net assets of +15.9% over the six
months, reflecting a period of positive performance in our
underlying holdings, while also benefitting from the significant
strengthening of the US dollar versus sterling; currency movements
contributed +11.8% to returns. When combined with a narrowing of
the discount to our net asset value, the result is a price total
return for shareholders of +29.2%, the discount having tightened
from 10.8% to 0.7% over the same period. The Investment Managers'
Report reviews the Company's performance and gives a detailed
commentary on the investment strategy and portfolio construction,
and their outlook for the underlying strategies.
Objectives and Features
Over the period economic activity around the world continued to
recover from the COVID induced difficulties seen in the previous
two years, but a tight labour market, loose monetary policy and
supply chain woes saw inflation take hold in most economies. In
addition, the invasion of Ukraine by Russia at the end of February
2022 ignited the most serious war in Europe in 75 years, with major
ramifications for energy markets and commodity prices; at the time
of writing there is no end in sight to this conflict.
The immediate domestic problem for western economies is
inflation. The US Federal Reserve, the Bank of England and the
European Central Bank have all increased interest rates and even
after the latest round of rate hikes may well push them further by
the end of 2022. The expectation is that the US, especially, is
resolute in its determination to tighten monetary conditions and
that equity markets, which have in general been soft in the past
six months, may see some further collateral damage from this
aggressive stance.
Happily, JARA has to a large extent been designed to cope well
with the financial environment we face today, where so many sectors
and asset classes are simultaneously affected by both macro and
policy factors. As our name suggests, we invest around the world in
core real assets of the type which are needed and paid for, come
rain or shine. Our Investment Managers have achieved diversity on
both a sectoral basis and across a number of developed economies,
an approach which is proving to be reassuringly resilient during
the challenging investment climate arising from conflict, inflation
and the after-effects of the most disruptive pandemic for a
century.
Capital Deployment and Allocation
The portfolio has been fully invested since Q1 2021, but the
period saw a shift in the real estate composition, reducing the
equity allocation and increasing JARA's exposure to real
estate-linked debt. This resulted in some 7% of the portfolio being
allocated to this debt class, which increased income, reduced
volatility and is in the main exposed to floating rate loans which
are benefitting from rising rates, helping to increase the income
generated by JARA's portfolio.
Dividends
The Company declared two interim dividends of one penny each per
Ordinary Share each, which were paid to shareholders on 31 May 2022
and 30 August 2022. A third dividend of a penny per Ordinary Share
was declared after the period end and will be paid to shareholders
on 29th November 2022.
Share Issuance and Capital Raising
In the six-month review period, the Company took advantage of
investor demand to issue an additional 2 million shares, raising
some GBP2.3 million of proceeds. This issuance reflects the Board's
assessment of the benefits that come from additional share
issuance, the new shares being issued at a premium to NAV to
compensate existing shareholders for any possible dilution of
returns that can arise when new capital is waiting to be deployed.
The Board maintains its view that periodic issuance of new shares
at a modest premium when client demand and market opportunities
arise is a sound way to grow JARA.
Share Price and Interest Rates
JARA's discount moved from 10.8% at the start of the period to
0.7% at the end with an average of 0.5% over the six month period.
This, however, masks the Company trading at a premium for a
considerable portion of the period and opportunistically being able
to issue new shares at a premium to NAV. The change from quarterly
to monthly NAV disclosure served to provide investors with an
enhanced degree of information and appeared to result in a more
stable share price. Post period end, concerns over rising interest
rates and therefore increasing risk free rates hit JARA's price, a
similar impact was seen for most of the listed alternative asset
funds. JARA's core nature and diversification across different
interest rate environments via its global portfolio, should
insulate it from a large portion of asset and interest rate
specific risk. Over time, the portfolio income should increase as
contractual revenue increases and natural inflation led price rises
benefit the Company.
Outlook
JARA has now been in business for three years and, when launched
in September 2019, we had no notion of the storms that lay just
around the corner. These started with COVID, which caused us
multiple problems as discussed in previous reports, and we now face
the interlinked challenges of inflation, energy shortages and war.
In the face of all of these your Company is proving to be
remarkably resilient, thanks both to the nature of its underlying
assets and to the considerable investment diversity which has been
achieved by our Investment Managers.
This is an opportune moment at which to remind ourselves of what
JARA offers to its owners. We invest conservatively in pools of
assets run internationally by arms of JPMorgan, designed to
generate in aggregate an income stream of some 4% per annum, while
at the same time providing a degree of capital growth in real
terms. With a return to shareholders over the past six months of
some 29%, including two interim dividends, we have comfortably met
that objective during the latest period, but it is perhaps more
relevant to look at our record since launch, where our total
shareholder return to 31st August 2022 stands at an annualised rate
with dividends reinvested of +6.2%.
UK investors, in particular, face a challenging outlook, with
sterling under pressure, the political gyrations of its elected
leaders undermining the confidence of international capital
providers and with a role for the British economy in a post-Brexit
world yet to be fully defined. In this context JARA presents a
compelling investment proposition and your Board takes this
opportunity to reiterate its confidence in the investment
philosophy pursued by JARA and its Investment Managers.
John Scott
Chairman 29th November 2022
INVESTMENT MANAGERS' REPORT
Review of Markets
The six months to 31st August 2022 was a difficult period with a
rotation from a relatively positive outlook at the beginning of the
period to markets confronting extensive challenges on a number of
fronts. One of the primary challenges has been inflation which was
initially stoked by excess savings and stimulus from the COVID
pandemic, then materially worsened by the Russian invasion of
Ukraine and the significant disruption to energy and commodity
markets. The realisation that inflation would remain higher, and
persist for longer, than Central Bank targets, means a squeeze on
consumers from higher prices and elevated borrowing costs as
Central Banks have rapidly increased interest rates. This resulted
in a very difficult six months for equities and, to make matters
worse, government bonds have also been hit so far this year, with
falling prices and rapidly rising yields failing to provide the
protection that investors usually seek during periods of such
volatility.
Even as interest rates have risen, there are expectations for
further increases later this year, although the pace of the
increase is likely to be less steep than originally thought.
Inflationary pressures remain the primary driver for these
expectations, with inflation up to 8-10% across Europe and the U.S.
and the UK seeing even higher rates. A good proportion of the
increase in prices has been due to changes in energy and commodity
markets. The U.S. has provided some mitigation to this through an
increase in crude oil production and the release of strategic
reserves, but unfortunately the same levers are not available to
the U.K. and Europe.
On entering a downturn, eyes naturally shift to the U.S. housing
market where the fixed rate for mortgages has already risen from
below 3% to above 6%. However, while the number of housing
transactions, and the associated economic activity, will likely
continue to slow, it appears improbable that we will see a repeat
of the 2008 housing-led financial crisis. This is because 95% of
American mortgages today are on long-term fixed rates, compared
with only 80% in 2007. As a result, there should be fewer forced
sellers as a result of interest rate rises. There has also been
much less sub-prime lending, and the banks are now better
capitalised, which means they are better able to withstand loan
losses that might be seen in a recession.
On a more positive note, the West has adapted well to 'living
with Covid'. Less so, however, in China, with a smaller degree of
infection-induced immunity and lower vaccine take-up among the
elderly, meaning that various forms of restrictions continue to be
imposed by the Chinese Government in a continuing attempt the quash
the virus. Given that China accounts for between a third and a half
of all global growth, these restrictions have wide economic
consequences, including an impact on the transportation market.
Our view is that fiscal support and more gradual central bank
tightening will help us avoid a severe global downturn. With major
markets having already experienced double-digit declines, our
central scenario does not point to significant further downside for
assets. But this is a time for forecasters to be humble in their
convictions; understanding the post-pandemic economy and
unprecedented policy response further complicates the forecasting
process. As investors, this translates into a need for well
diversified, balanced portfolios and, very possibly, increased use
of non-public market diversifiers such a real assets as a way to
ensure robust portfolio outcomes.
Portfolio Review
Portfolio Review and Positioning
The first six months of this financial year truly represents
JARA's first full two quarters of being fully invested. Over the
period, the Company's net asset value ('NAV) total return in
sterling terms was +15.9%, this return being inclusive of two
dividends of one penny per share. The annualised income based on
the latest NAV is 3.7% and 4.0% on initial issue price. This strong
positive NAV return aligns with JARA's assets remaining resilient
throughout the period despite broader volatility, albeit the return
in sterling was helped by a strong US dollar. JARA's real estate,
infrastructure and transportation allocations were all positive
contributors to the total return as shown in the full Half Year
Report.
Weighted contribution to total NAV performance per sleeve
Please see page 15 of the Half Year Report for the weighted
contribution to total NAV performance per sleeve graph.
Sector Exposures
Please see page 15 of the Half Year Report for a table of the
Company's sector exposures.
JARA continues to be focused on providing investors with access
to a global portfolio of real assets. The Company currently has 55%
of its portfolio in the U.S, 28% in Asia-Pacific, 15% in Europe and
2% in the U.K. With this global portfolio comes global currency
exposure which has been a significant positive contributor to the
portfolio in the past six months alongside the strong local
currency asset returns.
One of the primary drivers of return over the previous six
months has been real estate. U.S. real estate contributed +2.1%
over the period and Asia-Pacific real estate contributed +0.9%.
This return was driven by the strong momentum at the start of the
year where extraordinary demand was fuelled by a tight labour
market and strong consumer and supply constraints, all of which
combined to allow for broad-based rental growth. Towards the end of
the period, however, capitalisation and discount rates started to
expand to adapt for the increased probability of a recession, as
well as the more restricted availability of debt.
Given the changing environment we have been evolving our
holdings, with a focus on sectors, geographies and assets where we
see supply constraints and demand supported by longer-term
structural trends. We remain particularly excited about sectors
which are typically in underinvested and/or higher growth parts of
the economy. This includes sub-sectors like truck terminals,
outdoor storage, healthcare and biotechnology. Our 7% allocation to
real estate debt can also provide some insulation from volatility
in real estate equity. With 83% exposure to floating loan rate
loans across the mezzanine debt portfolio, this provides, positive
interest rate sensitivity and improved income as rates rise.
Infrastructure and Transportation markets remain resilient and
well supported by investor demand. Over the six-month period, our
Infrastructure and Transportation strategies contributed +0.6% and
+0.9% to the portfolio, respectively. An area of outperformance has
been power generation which, whilst we primarily are focused on
fixed long-term contracts, has benefited from higher energy prices
where we have more market-based exposure. We have also increased
exposure to the utility sector. Whilst these assets have
experienced some cost pressure recently, their ability to pass on
higher costs over time via passthrough mechanisms in the long term
contracts should allow them to benefit from an inflation linked
return. Acquisitions in contracted power and utilities have meant a
shift away from more 'GDP - sensitive' assets such as airports and
seaports. As we enter a more uncertain period of the economic
cycle, we feel utilities will benefit from their strong cash-flow
generation with lower sensitivity to the economic cycle.
Among other things, Russia's invasion of Ukraine has also
provided further requirements for both Infrastructure and
Transportation. Both continue to benefit from the move towards a
more energy efficient society, and are also going to play a key
role in enabling economies to secure greater energy independence.
As a result of this, we also see opportunities particularly in
natural gas - both in strategically located storage facilities and
in liquid natural gas carriers, where we continue to invest.
The Company's listed real asset allocation was a negative
contributor of -0.7%. As a reminder, this allocation is made up of
two distinct strategies: U.S. all-tranche REITs and an allocation
more broadly across a variety of other listed real assets. The
benefit of having an allocation to listed real assets within the
portfolio is both as a source of liquidity - giving more
flexibility around asset allocation - and a further diversifier in
returns and sectoral exposure. This allocation was, however,
impacted by the broader listed market sell-off during the
period.
Other Portfolio metrics/exposures
Please refer to the Company's Half Year Report & Financial
Statements for various graphics highlighting other portfolio
metrics, exposures and key portfolio themes.
Investment Managers
J.P. Morgan Asset Management, Inc.
Security Capital Research & Management Inc. and J.P. Morgan
Alternative Asset Management Inc.
29th November 2022
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its
half year report.
Principal and Emerging Risks and Uncertainties
The principal and emerging risks and uncertainties faced by the
Company fall into the following broad categories: investment
management and performance, operational, regulatory, environmental,
global and pandemics. Information on each of these areas is given
in the Company's Strategic Report within the Annual Report and
Financial Statements for the year ended 28th February 2022.
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 that having considered the Company's
objective, risk management policies, capital management policies
and procedures, the nature of the portfolio and expenditure
projections, the Company has adequate resources, an appropriate
financial structure and suitable management arrangements in place
to continue in operational existence for a period of at least 12
months from the date of approval of this Half Year Report. They
have not identified any material uncertainties to the Company's
ability to continue to do so over a period of at least 12 months
from the date of approval of this Half Year Report. This conclusion
also takes into account the Board's assessment of the risks arising
from the ongoing COVID-19 pandemic and recent market uncertainty,
which has now been exacerbated by Russia's invasion of Ukraine on
the current and future operations of the Company.
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 Year Report has been prepared in accordance with FRS104
'Interim Financial Reporting' and gives a true and fair view of the
assets, liabilities, financial position and net return of the
Company as required by the Disclosure Guidance and Transparency
Rules ('DTR') 4.2.4R; and
(ii) the interim management report includes a fair review of the
information required by DTR 4.2.7R and 4.2.8R.
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
John Scott
Chairman 29th November 2022
STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31st August 2022
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st August 31st August 28th February
2022 2021* 2022
GBP'000 GBP'000 GBP'000
------------------------------------------ ------------ ------------ --------------
Gains on investments held at fair value
through profit or loss 28,896 7,614 15,896
Net foreign currency gains 203 1,093 905
Investment income 5,443 4,653 9,846
Interest receivable and similar income 2 8 183
------------------------------------------ ------------ ------------ --------------
Total return 34,544 13,368 26,830
Management fee (934) (636) (1,628)
Other administrative expenses (426) (654) (1,023)
------------------------------------------ ------------ ------------ --------------
Return before finance costs and taxation 33,184 12,078 24,179
Finance costs (1) - (1)
------------------------------------------ ------------ ------------ --------------
Return before taxation 33,183 12,078 24,178
Taxation (535) (128) (485)
------------------------------------------ ------------ ------------ --------------
Net return 32,648 11,950 23,693
------------------------------------------ ------------ ------------ --------------
Return per share (note 3) 15.01p 5.67p 11.06p
------------------------------------------ ------------ ------------ --------------
* For the year ended 28th February 2022 the indirect (non-cash)
management fees incurred on the Private Collective Investment
Schemes were presented through the Statement of Comprehensive
Income together with the direct management fees. For consistency
the comparative figures to 31st August 2021 have been updated to
reflect this new presentation.
The Company does not have any income or expense that is not
included in the net return for the period/year. Accordingly, the
'Net return for the period/year, is also the 'Total comprehensive
income' for the period/year, as defined in IAS1 (revised).
All Items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the
period/year.
STATEMENT OF CHANGES IN EQUITY
For the six months ended 31st August 2022
Share Retained
premium earnings Total
GBP'000 GBP'000 GBP'000
----------------------------------------------- --------- ---------- ---------
Six months ended 31st August 2022 (Unaudited)
At 28th February 2022 217,123 (10,534) 206,589
Issue of ordinary shares 2,155 - 2,155
Net return for the period - 32,648 32,648
Dividends paid in the period (note 4) - (4,348) (4,348)
----------------------------------------------- --------- ---------- ---------
At 31st August 2022 219,278 17,766 237,044
----------------------------------------------- --------- ---------- ---------
Six months ended 31st August 2021 (Audited)
At 28th February 2021 209,136 (25,619) 183,517
Issue of ordinary shares 7,987 - 7,987
Net return for the period - 11,950 11,950
Dividends paid in the period (note 4) - (4,260) (4,260)
----------------------------------------------- --------- ---------- ---------
At 31st August 2021 217,123 (17,929) 199,194
----------------------------------------------- --------- ---------- ---------
Year ended 28th February 2022 (Audited)
At 28th February 2021 209,136 (25,619) 183,517
Issue of ordinary shares 7,987 - 7,987
Net return for the year - 23,693 23,693
Dividends paid in the year (note 4) - (8,608) (8,608)
----------------------------------------------- --------- ---------- ---------
At 28th February 2022 217,123 (10,534) 206,589
----------------------------------------------- --------- ---------- ---------
STATEMENT OF FINANCIAL POSITION
At 31st August 2022
(Unaudited) (Unaudited) (Audited)
31st August 31st August 28th February
2022 2021 2022
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------ ------------ --------------
Assets
Non current assets
Investments held at fair value through
profit or loss 232,492 187,983 204,667
---------------------------------------- ------------ ------------ --------------
Current assets
Other receivables 459 485 1,063
Cash and cash equivalents 4,573 11,185 1,175
---------------------------------------- ------------ ------------ --------------
5,032 11,670 2,238
Liabilities
Current liabilities
Other payables (480) (459) (316)
---------------------------------------- ------------ ------------ --------------
Net current assets 4,552 11,211 1,922
---------------------------------------- ------------ ------------ --------------
Total assets less current liabilities 237,044 199,194 206,589
---------------------------------------- ------------ ------------ --------------
Net assets 237,044 199,194 206,589
---------------------------------------- ------------ ------------ --------------
Amounts attributable to shareholders
Share premium 219,278 217,123 217,123
Retained earnings 17,766 (17,929) (10,534)
---------------------------------------- ------------ ------------ --------------
Total shareholders' funds 237,044 199,194 206,589
---------------------------------------- ------------ ------------ --------------
Net asset value per share (note 6) 108.0p 91.6p 95.0p
---------------------------------------- ------------ ------------ --------------
STATEMENT OF CASH FLOWS
For the six months ended 31st August 2022
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st August 31st August 28th February
2022 2021* 2022
GBP'000 GBP'000 GBP'000
-------------------------------------------- ------------ ------------ --------------
Operating activities
Return before taxation 33,183 12,078 24,178
Deduct dividends received (5,407) (4,583) (9,730)
Deduct investment income - interest (36) (70) (116)
Deduct deposit and liquidity fund interest
received (2) (8) (183)
Less interest expense (1) - (1)
Add indirect management fee 497 299 880
Less gains on investments held at fair
value through
profit or loss (28,896) (7,614) (15,896)
Decrease/(increase) in prepayments and
accrued income 25 15 (14)
Increase/(decrease) in other payables 90 34 (101)
Add exchange gains on cash and cash
equivalents (71) (166) 107
Taxation (541) (240) (484)
-------------------------------------------- ------------ ------------ --------------
Net cash inflow/(outflow) from operating
activities before interest
and taxation (1,159) (255) (1,360)
-------------------------------------------- ------------ ------------ --------------
Dividends received 6,004 4,952 9,413
Investment income - interest 38 103 150
Deposit and liquidity fund interest
received 2 8 183
Interest expense 1 - 1
Purchases of investments held at fair
value through profit or loss (31,021) (79,396) (53,630)
Sales of investments held at fair value
through profit or loss 31,655 62,013 27,279
-------------------------------------------- ------------ ------------ --------------
Net cash inflow/(outflow) from operating
activities 5,520 (12,575) (17,964)
-------------------------------------------- ------------ ------------ --------------
Financing activities
Issue of ordinary shares 2,155 7,987 7,987
Dividends paid (4,348) (4,260) (8,608)
-------------------------------------------- ------------ ------------ --------------
Net cash (outflow)inflow from financing
activities (2,193) 3,727 (621)
-------------------------------------------- ------------ ------------ --------------
Increase/(decrease) in cash and cash
equivalents 3,327 (8,848) (18,585)
Cash and cash equivalents at the start
of the period/year 1,175 19,867 19,867
Exchange movements 71 166 (107)
-------------------------------------------- ------------ ------------ --------------
Cash and cash equivalents at the end
of the period/year(1) 4,573 11,185 1,175
-------------------------------------------- ------------ ------------ --------------
(1) Cash and cash equivalents includes liquidity funds.
* For the year ended 28th February 2022 the indirect (non-cash)
management fees incurred on the Private Collective Investment
Schemes were presented through the Statement of Comprehensive
Income together with the direct management fees. For consistency
the comparative figures to 31st August 2021 have been updated to
reflect this new presentation.
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31st August 2022.
1. General information
The Company is a closed-ended investment company incorporated in
accordance with the Companies (Guernsey) Law, 2008. Its registered
office is at 1st Floor, Les Echelons Court, Les Echelons, South
Esplanade, St Peter Port, Guernsey GY1 1AR.
The principal activity of the Company is investing in securities
as set out in the Company's Objective and Investment Policy.
The Company was incorporated on 22nd February 2019. It was
admitted to the premium listing category of the Official List of
the Financial Conduct Authority and to trading on the Main Market
and had its first day of trading on 24th September 2019.
The information contained within the financial statements in
this half year report has not been audited or reviewed by the
Company's Auditor.
Investment objective
The Company will seek to provide Shareholders with stable income
and capital appreciation from exposure to a globally diversified
portfolio of core real assets.
Investment policy
The Company will pursue its investment objective through
diversified investment in private funds or accounts managed or
advised by entities within J.P. Morgan Asset Management (together
referred to as 'JPMAM'), the asset management business of JPMorgan
Chase & Co. These JPMAM Products will comprise 'Private Funds',
being private collective investment vehicles, and 'Managed
Accounts', which will typically take the form of a custody account
the assets in which are managed by a discretionary manager.
2. Accounting policies
The Company's financial statements have been prepared in
accordance with International Financial Reporting Standards
('IFRS'), which comprise standards and interpretations approved by
the International Accounting Standards Board ('IASB'), the IFRS
Interpretations Committee and interpretations approved by the
International Accounting Standards Committee ('IASC') that remain
in effect and the Companies (Guernsey) Law, 2008.
These financial statements have been prepared on a going concern
basis in accordance with IAS 1, applying the historical cost
convention, except for the measurement of financial assets
including derivative financial instruments designated as held at
fair value through profit or loss ('FVTPL') that have been measured
at fair value.
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 28th February 2022.
3. Return per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st August 31st August 28th February
2022 2021 2022
GBP'000 GBP'000 GBP'000
---------------------------- ------------- ------------- --------------
Total return 32,648 11,950 23,693
Weighted average number
of shares in issue during
the
period/year 217,570,995 211,009,854 214,182,610
---------------------------- ------------- ------------- --------------
Total return per share 15.01p 5.67p 11.06p
---------------------------- ------------- ------------- --------------
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st August 31st August 28th February
2022 2021 2022
GBP'000 GBP'000 GBP'000
------------------------------ ------------ ------------ --------------
2022/2023 First interim
dividend of 1.00p
(2021/2022: 1.00p) per share 2,174 2,088 2,088
2022/2023 Second interim
dividend of 1.00p
(2021/2022: 1.00p) per share 2,174 2,172 2,172
2021/2022 Third interim
dividend of 1.00p
- - 2,174
2021/2022 Fourth interim
dividend of 1.00p
- - 2,174
------------------------------ ------------ ------------ --------------
Total dividends paid in
the period 4,348 4,260 8,608
------------------------------ ------------ ------------ --------------
A third interim dividend of one penny per share, amounting to
GBP2,194,080 has been declared payable on 29th November 2022 in
respect of the year ending 28th February 2023.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st August 31st August 28th February
2022 2021 2022
GBP'000 GBP'000 GBP'000
--------------------------- ------------- ------------- --------------
Net assets (GBP'000) 237,044 199,194 206,589
Number of shares in issue 219,407,952 217,407,952 217,407,952
--------------------------- ------------- ------------- --------------
Net asset value per share 108.0p 91.6p 95.0p
--------------------------- ------------- ------------- --------------
6. Disclosures regarding financial instruments measured at fair value
The disclosures required by the IFRS 13: 'Fair Value
Measurement' are given below. The Company's financial instruments
within the scope of IFRS 13 that are held at fair value comprise
its investment portfolio and derivative contracts.
The investments are categorised into a hierarchy consisting of
the following three levels:
Level 1 - valued using unadjusted quoted prices in active
markets for identical assets and liabilities.
Level 2 - valued by reference to valuation techniques using
other observable inputs not included within Level 1.
Level 3 - valued by reference to valuation techniques using
unobservable inputs.
Categorisation within the hierarchy has been determined on the
basis of the lowest level input that is significant to the fair
value measurement of the relevant asset.
The recognition and measurement policies for financial
instruments measured at fair value are consistent with those
disclosed in the last annual financial statements.
The following tables set out the fair value measurements using
the IFRS 13 hierarchy at the relevant period end:
Unaudited
31(st) August 2022
Level Level 2 Level 3 Total
1
GBP'000 GBP'000 GBP'000 GBP'000
Financial instruments
held at fair value through
profit or loss
As at 31st August 2022
Equity investments 36,541 - - 36,541
Debt securities - 2,405 - 2,405
Private Collective Investment
Scheme(1) - - 193,546 193,546
Liquidity fund(2) 141 - - 141
------------------------------- -------- -------- -------- --------
36,682 2,405 193,546 232,633
------------------------------- -------- -------- -------- --------
(1) Consists of the Private Collective Investment Schemes:
Infrastructure Investments Fund UK 1 LP, Strategy Property Fund
FIV5 (Lux) SCSp, Strategic Property Fund Asia SCSp, Global
Transport Income Fund Feeder Partnership SCSp and U.S. Real Estate
Mezzanine Debt Fund Feeder (Lux) SCSp.
(2) Presented under Cash and cash equivalents in Statement of
Financial Position.
There were no transfers between level 1, 2 or 3 during the
period.
A reconciliation of the movement in level 3 financial
instruments for the period ended 31st August 2022 is set out
below.
(Unaudited) (Unaudited) (Audited)
31st August 31st August 28th February
2022 2021 2022
Total Total Total
GBP'000 GBP'000 GBP'000
----------------------------------------- ------------ ------------ --------------
Level 3
Opening balance 160,466 122,564 122,564
Commitment drawndown in the period/year 6,260 19,968 29,227
Dividend distributions(1) (644) (644) (1,319)
Expenses such as Management and
Advisory fees(2) (497) (299) (880)
Interest on commitments drawndown
but not yet unitised 10 40 54
Unrealised gain on investments 27,951 1,776 10,820
----------------------------------------- ------------ ------------ --------------
Closing balance 193,546 143,405 160,466
----------------------------------------- ------------ ------------ --------------
(1) In relation to Strategic Property Fund FIV5 (Lux) SCSp,
Global Transport Income Fund Feeder Partnership SCSp, Strategic
Property Fund Asia SCSp, Infrastructure Investments Fund UK 1 LP
and U.S. Real Estate Mezzanine Debt Fund Feeder (Lux) SCSp.
(2) Management fee in relation to Global Transport Income Fund
Feeder Partnership SCSp, Strategic Property Fund Asia SCSp and
Infrastructure Investments Fund UK 1 LP. For the six months ended
31st August 2022 also in relation to the U.S. Real Estate Mezzanine
Debt Fund Feeder (Lux) SCSp.
The level 3 financial instruments consists of the Private
Collective Investment Schemes: Infrastructure Investments Fund UK 1
LP, Strategic Property Fund FIV5 (Lux) SCSp, Strategic Property
Fund Asia SCSp, Global Transport Income Fund Master Partnership and
U.S. Real Estate Mezzanine Debt Fund Feeder (Lux) SCSp.
The valuation of the Private Collective Investment Schemes
(Strategy Property Fund FIV5 (Lux) SCSp, Strategic Property Fund
Asia SCSp, Infrastructure Investments Fund UK 1 LP, Global
Transport Income Fund Feeder Partnership SCSp and U.S. Real Estate
Mezzanine Debt Fund Feeder (Lux) SCSp) is based upon the latest
available valuation provided by the unlisted private fund's
manager, details are given in the table below. This element of the
valuation is considered to be an unobservable input of the level 3
financial instrument valuation.
As at 31st August 2022 As at 28th February
2022*
Date of valuation Valuation Date of valuation Valuation
Provided by per unit Provided by per unit
Fund the Fund Manager (USD$) the Fund Manager (USD$)
---------------------------- --------------------- ------------ -------------------- ------------
Strategic Property Fund 31st December
FIV5 (Lux) SCSP 30th June 2022 13.27 2021 12.15
Infrastructure Investments 31st December
Fund 30th June 2022 0.86 2021 0.88
Strategic Property Fund 31st December
Asia SCSP 30th June 2022 112.18 2021 112.35
Global Transport Income 31st December
Fund Master Partnership 31st March 2022 108.92 2021 111.04
U.S. Real Estate Mezzanine
Debt Fund Feeder (Lux) 30th June 2022 100.07 n/a n/a
SCSp
---------------------------- --------------------- ------------ -------------------- ------------
* As the year end of the Company (28th February) is
non-coterminous with the dates of the valuations provided by the
Managers of the Private Funds, the valuation per unit used includes
an adjustment for the estimated income and capital returns for the
period 1st January 2022 to 28th February 2022.
No such adjustment has been made for the valuations used in the
31st August 2022 valuation.
If the price per unit varied by 1%, this would result in a
change of GBP1,935,000 (year ended 28th February 2022:
GBP1,605,000) to the valuation of the level 3 financial
instruments.
JPMORGAN FUNDS LIMITED
29th November 2022
For further information, please contact:
Emma Lamb
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 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
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END
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