TIDMJCGI
RNS Number : 5521U
JPMorgan China Growth & Income PLC
03 December 2021
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN CHINA GROWTH & INCOME PLC
FINAL RESULTS FOR THE YEARED 30TH SEPTEMBER 2021
Legal Entity Identifier: 549300S8M91P5FYONY25
Information disclosed in accordance with DTR 4.2.2
The Directors announce the Company's results for the year ended
30th September 2021.
CHAIRMAN'S STATEMENT
I have great pleasure in presenting the Annual Report of
JPMorgan China Growth and Income plc ('the Company') for the year
ended 30th September 2021.
Despite volatile market conditions throughout the period, the
Company's total return on net assets over the year was +4.1%. This
represents the change in net asset value ('NAV') with dividends
reinvested and compares favourably with an -11.2% fall in the MSCI
China Index. The Company delivered a return to Ordinary
shareholders of -2.9%, reflecting a widening in the discount at
which the shares traded over the 12 month period, despite the
shares having traded at a premium for much of the year.
These performance statistics mask what has been another
significant year for the Company. Our share price, which began the
year at 552.0p and ended the year at 518.0p, peaked at 860.0p on
the 16th February 2021. This sharp increase followed a strong
performance by the China market with the price of the Company's
shares moving from a discount to NAV to a premium in early October
2020, which was sustained for the most part until July 2021. While
trading at a premium, we were able to issue nearly 10.5 million
shares, raising GBP77.9 million, which enabled our investment team
to take advantage of investment opportunities in the volatile
market conditions.
Through the last quarter of the 2021 financial year and into the
current year there have been a series of regulatory changes in
China affecting several market sectors, including those in which we
have been invested. These have combined with some concerns about a
slowing economy in China, worries about fragility in the property
sector and geopolitical concerns to cause some negative sentiment
towards investment in China in the short term.
Investment Approach and Performance
With the market rotating from growth to value stocks during the
year, the importance of our Investment Managers' disciplined
investment process and conviction in the structural growth
opportunities in China has enabled them to deliver consistent
outperformance. Reiterating the point that I made last year,
underpinning the investment management process is the breadth and
depth of the team of investment research analysts who, although
unable to visit companies in China as regularly as usual, have
maintained close contact with the companies and their management
teams.
While the Board have been unable to visit Asia again this year,
we have once again held a virtual Asia visit. This has enabled us
to have detailed discussions with analysts in Shanghai, Hong Kong
and Taiwan covering key sectors of our portfolio.
The Investment Managers' Review provides a good perspective on
the drivers of investment performance in 2021 and their assessment
of the investment outlook.
Environment, Social and Governance ('ESG') considerations
We provide a full description of how ESG is integrated into the
investment management process later in this report. The investment
managers' report describes the developments in the ESG process that
have taken place during the year together with examples of how
these are implemented in practice. There is also a separate ESG
section under Documents on our website that provides a standalone,
comprehensive report covering ESG metrics.
Distribution Policy
At the Annual General Meeting in February 2020, shareholders
approved a resolution to change the Company's dividend policy (with
effect from 1st April 2020) which now aims to pay, in the absence
of unforeseen circumstances, a target annual dividend of 4% of the
Company's NAV as at the end of the preceding financial year. This
is paid by way of four equal interim dividends on the first
business day in December, March, June, and September. Any shortfall
on the dividend income received from the underlying investments of
the portfolio is paid out of the capital growth of the portfolio.
For the year ended 30th September 2021 dividends paid totalled 22.8
pence (2020: 7.4 pence).
Gearing
In July 2021, the Company extended its GBP50 million loan
facility (with an option to increase to GBP60 million) with
Scotiabank for a further two years.
During the year the Company's gearing ranged from 7.6% to 12.9%
(based on daily data) and, at the time of writing, was 12.6%. The
Investment Managers have the flexibility to manage the gearing
facility within a range set by the Board of 10% net cash to 20%
geared.
Share Issues and Repurchases
The Directors have authority to issue new Ordinary shares for
cash and to repurchase shares in the market for cancellation or to
hold in Treasury. The Board believes that its policy of share
repurchase and share issuance helps to reduce the volatility in
discounts and premiums. We are therefore seeking approval from
shareholders to renew the share issuance and repurchase authorities
at the AGM.
During the year, the Company did not repurchase any Ordinary
shares into Treasury (2020: nil) or for cancellation. However,
5,211,777 shares were re-issued from Treasury at a premium to NAV
and 5,287,500 new Ordinary shares were issued.
The Board
In November 2021, the Board, through its Nomination Committee,
carried out a comprehensive evaluation of the Board, its
Committees, the individual Directors and the Chairman. Topics
evaluated included the size and composition of the Board, Board
information and processes, shareholder engagement and training and
accountability. The evaluation confirmed the efficacy of the
Board.
Oscar Wong retired from the Board in July 2021. He joined the
Board in August 2014 and made a significant contribution to the
Board and the performance of the Company during his tenure. On
behalf of the Board, I would like to thank Oscar for his valuable
contribution to the Company over the years.
Coinciding with Oscar's retirement the Board decided to increase
the size of the Board back to five directors; we believe this is an
optimal number and appropriate for the growing size of the Company.
As part of the succession programme, the Board appointed Joanne
Wong and May Tan, both Hong Kong residents each with considerable
years of experience in the investment industry. Aditya Sehgal was
also appointed to the Board following the year-end; until recently,
he was a senior executive with Reckitt Benckiser with extensive
experience building and managing businesses for them in China. The
new Directors have already started to make a strong contribution to
the Board discussions, and I would urge shareholders to support
their appointments at the forthcoming AGM.
In accordance with the UK Corporate Governance Code, David
Graham and Alexandra Mackesy retire at the forthcoming AGM and,
being eligible, will offer themselves for reappointment by
shareholders.
I will be retiring from the board after the AGM in January 2022.
The Board has agreed unanimously that my successor as Chairman of
the Company should be Alexandra Mackesy.
Review of services provided by the Manager
During the year the Board, through its Management Engagement
Committee, carried out a thorough review of the investment
management, secretarial and marketing services provided to the
Company by the Manager, as well as the Depositary and Registration
services provided to the Company by the outsourced service
providers. Following this review, the Board has concluded that the
continued appointment of the Manager and the outsourced service
providers on the terms agreed is in the interests of the
shareholders as a whole.
The Company's ongoing charges for the financial year, as a
percentage of the average of the daily net assets during the year,
were 0.99% (2020: 1.00%).
Shareholder Engagement
The Company has for many years had a high proportion of retail
investors and over the last 18 months to the end of June 2021 this
has increased by 50% to 91.30 % (31st December 2019: 60.42%).
Retail investors hold their shares in different ways, direct,
through wealth managers and on investment platforms and not all of
these make it easy to participate through voting at the Annual
General Meeting. I would urge you all to ensure your voice is heard
by ensuring your holding is voted at the AGM.
Annual General Meeting
Unfortunately, COVID-19 restrictions prevented the holding of
the Company's AGM in February 2021 in the usual format. The
Directors were disappointed not to be able to have the usual
interaction with shareholders at this forum. However, current
indications are that a more traditional format for the AGM may be
permissible in January 2022 and, to that end, the Company's
twenty-seventh AGM is scheduled to be held on Friday, 28th January
2022 at 11.30 a.m. at 60 Victoria Embankment, London EC4Y 0JP. The
Board hopes to welcome as many shareholders as possible.
We do of course strongly advise all shareholders to consider
their own personal circumstances before attending the AGM in
person. For shareholders wishing to follow the AGM proceedings but
choosing not to attend, we will be able to welcome you through
conferencing software. Details on how to register together with
access details can be found on the Company's website:
www.jpchinagrowthandincome.co.uk, or by contacting the Company
Secretary at invtrusts.cosec@jpmorgan.com.
As is normal practice, all voting on the resolutions will be
conducted on a poll. Due to technological reasons, shareholders
viewing the meeting via conferencing software will not be able to
vote on the poll and 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
form of proxy. Shareholders are encouraged to send any questions
ahead of the AGM to the Board via the Company Secretary at the
email address above. We will endeavour to answer relevant questions
at the meeting or via the website depending on arrangements in
place at the time.
If there are any changes to the above AGM arrangements, the
Company will update shareholders through the Company's website and,
as appropriate, through an announcement on the London Stock
Exchange.
Conclusion
It has been an honour to serve as the Chairman and to have the
opportunity to work with the investment team in Asia, all the many
people at JPMorgan Asset Management who help support the Company
and last, but not least, the current Board, as well as those that
have retired. During my time as Chairman the NAV per share and the
share price have grown by 152% and the Company (in terms of
Shareholders' funds) has grown from GBP 267 million to GBP473
million. We have refocused the investment objective and benchmark
to invest into the A share market, have implemented a new dividend
policy and seen the share price move back to a premium in the last
year. It has been a privilege to witness the growth in the Company
and the strong outperformance of the JPMorgan investment team. In
JPMorgan we have an investment manager with the investment skills,
disciplines and depth of resources to deliver consistent
performance.
Outlook
The volatility we have experienced during the past year reminds
us of the challenges of investing in China. This is a market where
long-term capital growth is best achieved through sector allocation
and bottom-up stock selection which our investment team have the
experience to deliver. ESG continues to grow in importance in the
investment process and by embedding these factors into their
investment process I believe JPMorgan will be able to deliver
sustainable growth in one of the world's most challenging markets.
Investing in China continues to grow in importance and the Company
is well placed to deliver long-term outperformance.
John Misselbrook
Chairman
3rd December 2021
INVESTMENT MANAGERS' REPORT
Over the year to 30th September 2021, the Company's return on
net assets was +4.1%, significantly outperforming its benchmark,
the MSCI China index, which declined by 11.2% GBP over the period.
The Company's return to shareholders (including dividends) was
-2.9%, which reflects the widening of the discount from 2.4% to
9.0%.
Setting the scene
There is never a dull moment in investing in China and the past
financial year was a particularly eventful one. Market sentiment
swung from exuberance at the beginning of the year, to caution, and
even scepticism, towards the end of it.
In the first half of the year, the Chinese economy recovered
strongly, thanks to prompt COVID containment measures, and Chinese
manufacturers benefited from a surge in orders from other major
economies whose manufacturing sectors were struggling to deal with
the impact of the pandemic. As in all other major markets, news of
the arrival of viable vaccines in late 2020 saw attention in the
Chinese market rotate from growth to value stocks, as investors
anticipated a recovery in more economically sensitive, cyclical
sectors such as energy, utilities and financials. The MSCI China
index (GBP) rose 23.8% between 30th September 2020 and its peak in
February 2021, and then tumbled after the Chinese New Year on fears
of a tightening in domestic liquidity and rising 10-year US
Treasury yields.
China's Manufacturing PMI stood firmly in expansionary territory
for most time of the year, thanks in large part to persistent
export demand. The strength of the recovery, combined with China's
restrained monetary stance, saw the Renminbi appreciate against USD
over the year. It touched a three-year high in May 2021. The
central bank (PBOC) raised the foreign exchange reserve requirement
to dampen speculative activity and the exchange rate has since
stabilised at a lower level. More recently, however, the index
dropped below 50% in September 2021, signalling contracting
activity, due to commodity price inflation, high shipping costs,
power rationing and the shortage in tech components, especially
semiconductors.
COVID remains a threat to the economic outlook. China approved
its first domestic vaccine in December 2020 and well-organised
vaccination programmes ensured that by September 2021, 78% of the
population had been vaccinated. A few scattered outbreaks of the
virus have been quickly contained. However, while China's success
in controlling COVID is applaudable, it remains one of the few
countries in the world still committed to a COVID-zero policy that
has kept external borders closed. It is unclear when borders will
re-open to tourists and business travellers and this has cast a
shadow over the outlook for the domestic service sector.
Since recovering from the initial shock of the pandemic, China
has maintained a neutral monetary policy aimed at stabilising
credit expansion. The implementation of strict controls on
borrowing by property developers, to curtail speculative activity,
is a key part of this policy. These measures, together with
restrictions on homebuyers, contributed to the de facto defaults of
several developers in September 2021, including Evergrande, one of
the country's largest private property companies. The government
plans to deal with these problems at the individual project level,
rather than via corporate level bailouts, in part to avoid
encouraging reckless commercial behaviour by developers. In our
view, and that of other local investors, this is not China's
'Lehman Brothers moment', and is unlikely to trigger systemic
ructions. Most of the debt is backed by land and does not involve
the kind of complex financial derivatives whose high contagion
risks sparked the 2008 global financial crisis.
Chinese regulatory crackdowns on other sectors have also been
creating headlines around the world. The emphasis of government
policy seems to have shifted from growth-centred policies to
regulatory crackdowns designed to achieve more balanced growth. The
digital economy and other socially sensitive industries such as
education and health care have been most impacted. The shift began
in November last year with the high-profile suspension of the Ant
Group initial public offering (IPO), due to concerns about its
capital structure, its ballooning consumer finance business and
conflict with regulators. Then, in July 2021, regulators announced
a flurry of new restrictions, including on the private tutoring
industry, whose business model was essentially destroyed by the
crackdown.
Since then, Chinese regulators have announced tighter controls
on anti-competitive behaviour, data security and companies
employing gig workers, and non-compliance has been swiftly
punished. In the health care sector, we have long championed
structural trends such as import substitution and the increasing
availability of advance therapeutics, and these are playing out
nicely. However, certain sub-sectors such as medical devices and
equipment are facing increasing pressure from government
procurement policies to cut prices. This is in part intended to
reduce corrupt pricing practices which benefit suppliers,
distributors and hospital administrators, and should be welcomed by
investors. Nonetheless, these regulatory shocks have triggered a
selloff in stocks in the property, internet, education and
healthcare sectors, all of which are popular with foreign
investors.
The crackdowns may seem abrupt and severe, but in our view,
controls on many sectors lagged regulations imposed by the EU and
US authorities, and China is simply playing catch-up. Some
restrictions have also been motivated by the government's recent
promotion of 'common prosperity'. This has raised concerns among
investors and observers that China is intent on 'soaking the rich',
but we disagree with this assessment. On the contrary, China has
one of the highest levels of income inequality among the world's
major economies, and a more balanced distribution of wealth is
critical to ensuring long-term growth.
Environmental regulations are also generating some public
concern and criticism. In September 2020, President Xi committed
China to achieving 'net zero' carbon emissions by 2060. However, a
year on from this pledge, efforts to reduce carbon emissions are
being blamed for contributing to recent widespread power shortages.
High coal prices and an inflexible power pricing mechanism have
also played a role in the shortages, which have been particularly
damaging for energy intensive industries such as steelmaking and
cement, adding to inflation in basic material prices. The power
shortages caused a public outcry that alarmed officials, leading to
some retuning of energy policy, although the government remains
committed to its net zero target.
Elsewhere, the US Federal Reserve has become increasingly
hawkish, due to higher-than-expected inflation, and this has put
upward pressure on the US dollar. Trade tensions between China and
the US have eased under the Biden administration. However,
fundamental differences on trade and other issues persist between
the two countries and taking a tough stance against China has
bipartisan support in the US.
Performance Commentary
We are pleased that the Company outperformed its benchmark and
delivered positive returns in a volatile year. Positive
contributions to performance came from several sectors including
Consumer Discretionary (+5.8%), Information Technology (+3.4%),
Industrials (+2.3%) and Health Care (+1.8%). At the stock level,
positions in new energy, electric vehicles (EVs), semiconductor
production and internet companies contributed the most. In this
section, we highlight some of the sector and stock stories that
most impacted portfolio performance.
Within Consumer Discretionary , our internet stock selection was
the largest contributor, thanks to our underweight in internet
retailer Alibaba (which we had reduced over concerns of its
profitability following the regulatory crackdown) , and overweights
in its competitor Pinduoduo and in gaming and multimedia company
Bilibili , which possess better growth prospects. Our investment in
Xpeng , the EV manufacturer, also performed well. The collapse of
the private tutoring companies had a limited impact on performance,
as we had reduced exposure prior to the regulation and exited the
remaining position upon the regulation announcement.
In Information Technology , outperformance was mainly due to our
positions in Silergy and Starpower , two semiconductor component
producers benefiting from import substitution and global shortages
in this sector. Our position in LONGi Green Energy was another top
10 contributor to returns over the year. LONGi is the world's
largest producer of solar panel wafers, supplying around half the
market.
In Industrials , the largest positive contribution came from
Contemporary Amperex Technology (CATL) . CATL is China's leading EV
lithium battery maker, supplying about half the domestic market.
Its share price rallied due to better-than-expected industry EV
sales volumes and the company's deepening links with international
vehicle component suppliers. Yunnan Energy New Material , a
supplier of EV components, also performed well during the period.
These gains helped offset the drag on performance from not owning
EV makers Nio and BYD.
Despite widespread and deep price cuts imposed by government
procurement policies, our overweight in Health Care made a positive
return in the period, thanks mainly to our holdings of two contract
research organisations (CROs), Wuxi Biologics and Hangzhou Tigermed
, and service provider Aier Eye Hospital , which are not subject to
government price cuts. Outperformance thanks to these positions was
only partially offset by the adverse impact of Venus Medtech , a
medical devices company specialising in heart valves. It delivered
decent results, but investors are worried that the government will
impose prices cuts on its products, while demand has been hit by
pandemic-related delays to elective surgery.
Performance was also hurt by our underweight and stock selection
in value sectors such as Energy, Financials and Utilities , as
these sectors outperformed during the rotation from growth to
value. We had zero weightings in oil, coal and shipping stocks, as
investment in these sectors is not consistent with our long-term,
growth-oriented strategy. One of our largest Financials holdings,
Ping An Insurance , underperformed, as several factors weighed on
the share price. Investors have been disappointed by delays to
reforms intended to boost productivity of its sales force. In
addition, recent events in the property sector pose risks to its
property investments. These developments prompted us to sell this
company. We also exited Ping An Bank due to concerns about
potential capital constraints imposed by its parent company.
Sector allocation and trades
The sudden surge in regulatory restrictions imposed over the
review period has not derailed our growth-oriented investment
strategy. We have not made any major changes to our sector
preferences - our largest overweights remain in Information
Technology , Health Care and Consumer Staples , areas which we
believe have the greatest growth potential. Our key holdings are
also largely unchanged, and include Tencent , Wuxi Biologics ,
Meituan , Pinduoduo , and Alibaba . Our top 10 holdings include
CATL , China Merchants Bank , Country Garden Services , the
country's largest property management company, and two enterprise
software companies Baosight Software and Kingdee International . We
have, however, made adjustments to some of these sectoral and stock
positions, which we discuss below.
While the portfolio structure and key holdings remained broadly
unchanged during the past year, we continued our search for China's
best long-term growth stories. The opportunities we see are being
driven by several investment themes.
One major theme is the automation and digitalisation of Chinese
enterprises. The government has implemented incentives to encourage
the adoption of these technologies, as penetration has so far been
low. Consequently, our exposures to Industrials and Information
Technology - sectors likely to gain from the introduction of more
advanced production methods - saw the largest increases over the
past year. For example, we bought several companies focused on
industrial automation, including Zhejiang Supcon , OPT Machine
Vision , Shenzhen Inovance and Han's Laser . We also added
positions in semiconductor manufacturers Starpower and Maxscend and
in Baosight Software and two other IT infrastructure companies,
Sangfor and Beijing Kingsoft Office . These additions were
partially funded by reducing exposures to lower conviction IT names
such as Venustech Group and Kingsoft Cloud .
The development of renewable energy sources is integral to the
realisation of the government's 'net zero' carbon emissions target,
and we expect this sector to experience strong growth as the
transition to renewable energy gathers pace. New energy is thus
another investment theme driving portfolio activity. We added to
solar names, including Xinyi Solar and Tongwei , and also increased
our holding in LONGi Green Energy Technology . Automation and
software names, including our exposures to Zhejiang Supcon and
Baosight Software , will also benefit from the pursuit of the net
zero target, as their products enable energy intensive industries
to increase energy efficiency and thus cut carbon emissions.
Two further and inter-related themes have motivated other
acquisitions over the past year. Rising commodity and energy prices
suggest that companies with strong pricing power will outperform as
inflation pressures build. Many companies with this capacity will
also benefit from the consumer upgrade trend. This is a recognised
and significant feature of Chinese society, driven by households
improving their homes, and upgrading cars and other possessions as
their incomes rise. The market correction during the second half of
2021 provided us with the opportunity to add exposure to Consumer
names we expect to benefit from both these trends. Purchases
included home improvement companies Haier Smart Home and Oppein
Home , and auto components suppliers Fuyao Glass and Changzhou
Xinyu .
In addition to the sales of Ping An Insurance and Ping An Bank ,
within Internet , we reduced our weighting in Alibaba . Investor
support has been dented by concerns related to a sexual harassment
case, and its prospects appear to be deteriorating. However, we
added to Pinduoduo , Alibaba's rival, which we believe has greater
growth potential, and to Bilibili , due to its unique and varied
content offering, catering to children and young adults. Towards
the end of the review period, we began reducing our exposure in EV
battery companies, taking profits on CATL and Yunnan Energy New
Material . These companies have performed well, and we see limited
further upside. Within Consumer , we exited the education sector
prior to the crackdown on this sector. We also closed our position
in Kweichow Moutai , an alcoholic beverages producer, due to our
dissatisfaction with its corporate governance practices.
ESG engagement over the year
Our investment philosophy centres on identifying quality
companies with sustainable growth potential. We strongly believe
that Environmental, Social and Governance (ESG) considerations
(particularly Governance) should be the foundation of any long-term
investment process. In our view, corporate policies at odds with
such considerations are not sustainable over time. We therefore
believe that integrating ESG factors into the investment process is
critical to its success.
In the past financial year, JPMAM has continued to strengthen
its ESG research capability. Its dedicated Sustainable Investment
(SI) team now consists of three sub-teams focused respectively on
data and research, client solutions and stewardship. The
stewardship team now includes three Hong Kong-based members, two of
whom are Chinese speakers. This team's primary responsibilities
include proxy voting oversight, pro-active company engagement and
ESG reporting, and it works closely with JPMAM's investment
managers. In addition, the Emerging Markets and Asia Pacific
Equities (EMAP) team has appointed senior investment managers to
lead ESG projects, in coordination with the SI team. JPMAM has also
updated and expanded its risk profile and materiality
questionnaire, which now provides a consistent ESG research
framework for use by all JPM AM's equity analysts and investment
managers globally. This should improve cross regional references
and comparisons.
The following are a few examples of how we have worked with the
SI team in the past year to address ESG issues in our portfolio
companies:
-- In August 2021 we engaged with Alibaba on several matters,
including a recent high-profile accusation of a sexual assault
within the company. Although the allegations were not supported by
a police investigation, the company has implemented new
anti-harassment guidelines and set up a working environment
committee led by senior female employees, intended to provide
employees with a more transparent and supportive complaints
process. We also discussed Alibaba's intended response to China's
forthcoming data privacy law. Alibaba appears to support the new
law stating that in spirit, it is very similar to the general data
protection regulations already in place in the UK and the European
Union. We highlighted the importance of empowering users to opt-out
of data collection. We also sought an update on the board's ESG
oversight processes and its approach to ESG disclosures and were
pleased to learn that Alibaba is looking to recruit a chief
sustainability officer, and is also preparing its ESG report.
-- Prior to NetEase's AGM, we met with the company's Chief
Finance Officer to express our concerns about the lack of board
refreshment, as all five of NetEase's independent directors have
held their positions since the company went public more than two
decades ago. At the AGM, we voted against the re-election of the
nomination committee chair, to express our dissatisfaction with his
failure to take steps to improve the board's independence.
-- We met with representatives of Baosight Software , which is
assisting domestic steelmakers reduce energy usage. The purpose of
the meeting was to increase our understanding of the environmental
impact of the company's work. We learned that the company is seeing
new demand for its services and expanding its client base beyond
its BaoSteel parent group, as steel producers strive to comply with
the government's net zero carbon emissions target. Following the
meeting, we increased our holding.
Outlook
The world is recovering from COVID disruptions and major
economies are returning to normal, although some bottlenecks have
emerged in global supply chains. A year ago, it was difficult to
imagine the world would soon be confronted with supply shortages of
an array of products, from semiconductors to clothing, and
widespread inflation pressures. We expect inflation to persist in
the short term, until pandemic-related obstacles within supply
chains are removed and pent-up demand for basic materials and
manufactured goods dissipates. Major central banks will gradually
wind back the extremely generous monetary stimulus implemented to
support activity during the pandemic, but they are still faced with
the difficult task of timing future interest rate increases to
dampen inflation pressures, without unduly damaging activity.
In China, we believe the recent regulatory crackdowns are
ultimately designed to achieve more sustainable and equitable
growth. In our view, they do not represent any wavering in the
government's commitment to improving living standards, opening the
economy and delivering the benefits of technological innovation to
consumers and businesses. For example, the government's efforts to
limit property prices have wide public support and are essential to
achieving a more balanced economy. The drive for common prosperity,
if executed well, may lead to greater domestic consumption in the
long run.
However, although we agree with the thrust of the regulatory
changes, we are not complacent about the associated investment
risks. These policies will continue to adversely impact certain
companies and industries in the near term and alter the competitive
dynamics of some sectors. We will therefore continue to assess
regulatory risks on a company-by-company and sector-by-sector basis
and review our investment thesis accordingly.
In relation to other aspects of government policy, China has
sufficient fiscal and monetary policy head room to support growth
if needed, and the recent weakening in manufacturing activity and
consumption, if it persists, has increased the chances that some
stimulatory measures will be announced in coming quarters. Looking
further ahead, the Central Committee of the Communist Party met at
the end of 2020 to discuss China's medium and long-term economic
strategies. In response to ongoing tensions between China and the
US and its western allies, over trade policy and territorial
issues, the committee emphasised the need to foster economic
self-sufficiency and technological innovation. It also endorsed
efforts to boost consumer demand and continuing 'supply-side'
structural reforms. We will continue to seek investment
opportunities in those sectors best placed to benefit from the
government's long-term economic strategies.
The good news for investors in China is that we believe the
sharp share price correction seen in the second half of the review
period now reflects most of the risks and uncertainties surrounding
Chinese equity markets. And despite some near-term concerns, we
remain positive about China's prospects. We expect growth to remain
underpinned by the drive to digitalise and implement other
technological innovations, by the rising aspirations of the
expanding middle class, and increasingly, by the need to reduce
carbon emissions.
We are also optimistic about the outlook for Chinese equities.
We forecast expected annualised returns over a five-year period, as
we believe this figure provides a reliable indicator of potential
market performance. Over the next five years, we expect annualised
returns to approach 20%. This is very close to an all-time high.
Five-year return projections last touched this level in late 2018,
following the sharp market sell-off sparked by Sino/US trade
tensions and slower domestic growth. Equity markets subsequently
experienced a rebound that continued virtually unabated until early
2021 and took indices to all-time highs.
If our analysis proves correct, we can look forward to a strong
recovery in Chinese equities over the next few years. We are
confident that our long-term investment philosophy, combined with
our strong research capabilities and our presence 'on the ground'
in mainland China, should help us to navigate any near-term market
turbulence and continue to deliver positive returns for our
shareholders over the longer term.
Rebecca Jiang
Howard Wang
Shumin Huang
Investment Managers
3rd December 2021
PRINCIPAL AND EMERGING RISKS
The Directors confirm that they have carried out a robust
assessment of the principal risks facing the Company, including
those that would threaten its business model, future performance,
solvency or liquidity. With the assistance of JPMF, the Audit
Committee has drawn up a risk matrix, which identifies the key
risks to the Company. These are reviewed and noted by the Board.
The risks identified and the broad categories in which they fall,
and the ways in which they are managed or mitigated are summarised
below. The AIC Code of Corporate Governance requires the Audit
Committee to put in place procedures to identify emerging risks.
The key emerging risks identified are also summarised below.
Principal Risk Description Mitigating Activities
Geopolitical Geopolitical risk arises from The Board meets advisers and gathers
uncertainty about the future prices insights from both JP Morgan and
of the Company's investments, independent sources
the ability to trade in those on a regular and ongoing basis and
investments, and the imposition of takes advice from the Manager and its
restrictions on the free professional advisers.
movement of capital. Changes in
economic or political conditions or
other factors can substantially
and potentially adversely affect the
value of investments. Geopolitical
risks could arise
from trade and political tensions
between China and the United States
and, for instance, interference
in Hong Kong and Cross Taiwan Straits
tension. All may impact the ability
of the Manager and
other service providers to carry on
business as usual in the management
of the portfolio in
Hong Kong.
-------------------------------------- --------------------------------------
Investment Underperformance An inappropriate investment decision The Board manages this risk by
may lead to sustained diversification of investments
underperformance against the through its investment restrictions
Company's and guidelines which are monitored
benchmark index and peer companies, and reported on by the Manager. The
resulting in the Company's shares Manager provides the
trading on a wider discount. Directors with timely and accurate
management information, including
performance data and
attribution analyses, revenue
estimates and transaction reports.
The Board monitors the implementation
and results of the investment process
with the investment managers, who
attend all Board meetings,
and reviews data which show
statistical measures of the Company's
risk profile. The investment
managers employ the Company's gearing
within a strategic range set by the
Board.
-------------------------------------- --------------------------------------
Strategy and Business Management An ill-advised corporate initiative, The Board discusses this on a regular
for example an inappropriate takeover and ongoing basis with the Manager
of another company and corporate advisers
or an ill-timed issue of new capital; based on information provided both at
misuse of the investment trust and between Board meetings (see above
structure, for example risk regarding
inappropriate gearing; or if the Investment Underperformance).
Company's business strategy is no
longer appropriate, may
lead to a lack of investor demand.
-------------------------------------- --------------------------------------
Loss of Investment Team or Investment A sudden departure of several members The Board seeks assurance that the
Manager of the investment management team Manager takes steps to reduce the
could result in a likelihood of such an
deterioration in investment event by ensuring appropriate
performance. succession planning and the adoption
of a team-based approach,
as well as special efforts to retain
key personnel. The Board engages with
the senior management
of the Manager in order to mitigate
this risk.
-------------------------------------- --------------------------------------
Share Price Discount A disproportionate widening of the In order to manage the Company's
discount relative to the Company's discount, which can be volatile, the
peers could result in Company operates a share
a loss of value for shareholders. repurchase programme. The Board
regularly discusses discount policy
and has set parameters
for the Manager and the Company's
broker to follow. The Board receives
regular reports and
is actively involved in the discount
management process.
-------------------------------------- --------------------------------------
Governance Changes in financial, regulatory or The Manager makes recommendations to
tax legislation, including in the the Board on accounting, dividend and
European Union, may tax policies and
adversely affect the Company. the Board seeks external advice where
appropriate. The Board receives
regular reports from
its broker, depositary, registrar and
Manager as well as its legal advisers
and the Association
of Investment Companies on changes to
governance and regulations which
could impact the
Company and its industry. The Company
monitors events and relies on the
Manager and its other
key third party providers to manage
this risk by preparing for any
changes.
-------------------------------------- --------------------------------------
Corporate Governance and Shareholder Details of the Company's compliance The Board receives regular reports
Relations with Corporate Governance best from the Manager and the Company's
practice, including information broker about shareholder
on relations with shareholders, are communications, their views and their
set out in the Corporate Governance activity. It also receives updates
Statement in the Annual from its advisors
Report. on corporate governance issues and
reviews its related policies
regularly.
-------------------------------------- --------------------------------------
Financial The financial risks faced by the Counterparties are subject to daily
Company include market price risk, credit analysis by the Manager. In
interest rate risk, liquidity addition the Board
risk and credit risk. receives reports on the Manager's
monitoring and mitigation of credit
risks on share transactions
carried out by the Company. Further
details are disclosed in note 21 in
the Annual Report.
-------------------------------------- --------------------------------------
Operational Risk and Cyber Crime Disruption to, or failure of, the Details of how the Board monitors the
Manager's accounting, dealing or services provided by the Manager, its
payments systems or the associates and
depositary's or custodian's records depositary and the key elements
may prevent accurate reporting and designed to provide effective
monitoring of the Company's internal control are included
financial position. within the Risk Management and
In addition to threatening the Internal Control section of the
Company's operations, such an attack Directors' Report in the Annual
is likely to raise reputational Report.. The threat of cyber attack,
issues which may damage the Company's in all its guises, is regarded as at
share price and reduce demand for its least as important
shares. as more traditional physical threats
to business continuity and security.
The Company benefits
directly or indirectly from all
elements of JPMorgan's Cyber Security
programme. The information
technology controls around the
physical security of JPMorgan's data
centres, security of its
networks and security of its trading
applications are tested
independently.
The risk of fraud or other control
failures or weaknesses within the
Manager or other service
providers could result in losses to
the Company. The Audit Committee
receives independently
audited reports on the Manager's and
other service providers' internal
controls, as well as
a report from the Manager's
Compliance function. The Company's
management agreement obliges
the Manager to report on the
detection of fraud relating to the
Company's investments and
the Company is afforded protection
through its various contracts with
suppliers, of which
one of the key protections is the
Depositary's indemnification for loss
or misappropriation
of the Company's assets held in
custody.
-------------------------------------- --------------------------------------
Legal and Regulatory In order to qualify as an investment The Section 1158 qualification
trust, the Company must comply with criteria are continually monitored by
Section 1158 of the the Manager and the results
Corporation Tax Act 2010 ('Section reported to the Board each month. The
1158'). Details of the Company's Company must also comply with the
approval are given under provisions of the
'Structure of the Company' in the Companies Act 2006 and, since its
Annual Report.. Were the Company to shares are listed on the London Stock
breach Section 1158, Exchange, the UKLA
it may lose investment trust status Listing Rules, Disclosure Guidance
and, as a consequence, gains within and Transparency Rules ('DTRs') and,
the Company's portfolio as an Investment Trust,
would be subject to Capital Gains the Alternative Investment Fund
Tax. Managers Directive ('AIFMD'). A
breach of the Companies Act
2006 could result in the Company
and/or the Directors being fined or
the subject of criminal
proceedings. Breach of the UKLA
Listing Rules or DTRs could result in
the Company's shares
being suspended from listing which in
turn would breach Section 1158. The
Board relies on
the services of its Company
Secretary, JPMorgan Funds Limited and
its professional advisers
to ensure compliance with the
Companies Act 2006, the UKLA Listing
Rules, DTRs and AIFMD.
-------------------------------------- --------------------------------------
Global pandemics The emergence and spread of Time after time, markets have
coronavirus (COVID-19) is a global recovered, albeit over varying and
pandemic risk that poses a sometimes extended time periods,
significant risk to the Company's and so the Board does have an
portfolio. COVID-19 has highlighted expectation that the portfolio's
the speed and extent holdings will not suffer a
of economic damage that can arise material long-term impact and should
from a pandemic. While current recover. The Board receives reports
vaccination programme results on the business continuity
are hopeful, the risk remains that plans of the Manager and other key
new variants may not respond to service providers. The effectiveness
existing vaccines, may of these measures
be more lethal and may spread as have been assessed throughout the
global travel opens up again. course of the COVID-19 pandemic and
the Board will continue
to monitor developments as they occur
and seek to learn lessons which may
be of use in the
event of future pandemics. Should the
virus become more virulent than is
currently the case,
it may present risks to the
operations of the Company, its
Manager and other major service
providers.
Should efforts to control a pandemic
prove ineffectual or meet with
substantial levels of
public opposition, there is the risk
of social disorder arising at a
local, national or international
level. Even limited or localised
societal breakdown may threaten both
the ability of the Company
to operate, the ability of investors
to transact in the Company's
securities and ultimately
the ability of the Company to pursue
its investment objective and purpose.
-------------------------------------- --------------------------------------
Emerging Risk Description Mitigating Activities
Climate change Climate change, which barely registered with The Board is also considering the threat posed
investors a decade ago, has today become one by the direct impact on climate change on the
of the most critical issues confronting asset operations of the Manager and other major
managers and their investors. Investors can service providers.
no longer ignore the impact that the world's As extreme weather events become more common,
changing climate will have on their portfolios, the resiliency, business continuity planning
with the impact of climate change on returns now and the location strategies of our services
inevitable. providers will come under greater scrutiny.
The Board also receives ESG reports from the
Manager on the portfolio and the way ESG
considerations
are integrated into the investment
decision-making.
-------------------------------------------------- -------------------------------------------------
TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES
Details of the management contract are set out in the Directors'
Report in the Annual Report.. The management fee payable to the
Manager for the year was GBP4,572,000 (2020: GBP2,733,000).
Safe custody fees amounting to GBP81,000 (2020: GBP65,000) were
payable to JPMorgan Chase Bank N.A. during the year of which
GBP41,000 (2020: GBP14,000) 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 GBP28,000 (2020: GBP15,000).
Handling charges on dealing transactions amounting to GBP42,000
(2020: GBP55,000) were payable to JPMorgan Chase Bank N.A. during
the year of which GBP20,000 (2020: GBP7,000) was outstanding at the
year end.
The Company also held cash during the year in the JPMorgan US
Dollar Liquidity Fund, which is managed by JPMorgan. At the year
end this was valued at GBPnil (2020: GBPnil). Interest amounting to
GBP8,000 (2020: GBP18,000) was receivable during the year.
Fees amounting to GBP638,000 (2020: GBP202,000) were receivable
from stock lending transactions during the year. JPMorgan Investor
Services Limited commissions in respect of such transactions
amounted to GBP71,000 (2020: GBP22,000).
At the year end, total cash of GBP36,000 (2020: GBP343,000) was
held with JPMorgan Chase Bank, N.A. in a non interest bearing
current account.
Full details of Directors' remuneration and shareholdings can be
found in the Directors' Remuneration Report and in note 6 in the
Annual Report.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report
and Financial Statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare Financial
Statements for each financial year. Under that law the Directors
have elected to prepare the Financial Statements in accordance with
United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising FRS 102 'The Financial
Reporting Standard applicable in the UK and Republic of Ireland'
and applicable law). Under company law the Directors must not
approve the Financial Statements unless they are satisfied that,
taken as a whole, the Annual Report and Financial Statements are
fair, balanced and understandable; provide the information
necessary for shareholders to assess the Company's position,
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 preparing these
Financial Statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- state whether applicable UK Accounting Standards comprising
FRS 102, have been followed, subject to any material departures
disclosed and explained in the Financial Statements;
-- make judgments and accounting estimates that are reasonable and prudent; and
-- prepare the Financial Statements on a going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
and the Directors confirm that they have done so.
The Directors are responsible for keeping adequate 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 enable them to ensure that
the Financial Statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The accounts are published on the
www.jpmchinagrowthandincome.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 accounts
since they were initially presented on the website. The accounts
are prepared in accordance with UK legislation, which may differ
from legislation in other jurisdictions.
Under applicable law and regulations the Directors are also
responsible for preparing a Strategic Report, a Directors' Report
and a Directors' Remuneration Report that comply with that law and
those regulations.
Each of the Directors, whose names and functions are listed in
Directors' Report confirm that, to the best of their knowledge:
-- the Company's Financial Statements, which have been prepared
in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards, comprising FRS 102
'The Financial Reporting Standard applicable in the UK and Republic
of Ireland', and applicable law), give a true and fair view of the
assets, liabilities, financial position and profit of the Company;
and
-- the Directors' Report and the Strategic Report include 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 and uncertainties that it faces.
The Directors consider that the Annual Report and Financial
Statements, taken as a whole, are fair, balanced and understandable
and provide the information necessary for shareholders to assess
the Company's performance, business model and strategy.
For and on behalf of the Board
John Misselbrook
Chairman
3rd December 2021
FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30th September 2021
2021 2020
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------------- --------- --------- --------- -------- --------- ---------
Net gains on investments held at fair value through
profit or loss - 3,485 3,485 - 164,024 164,024
Net foreign currency gains(1) - 1,364 1,364 - 1,492 1,492
Income from investments 2,966 - 2,966 3,401 - 3,401
Other income 646 - 646 220 - 220
----------------------------------------------------- --------- --------- --------- -------- --------- ---------
Gross return 3,612 4,849 8,461 3,621 165,516 169,137
Management fee (1,143) (3,429) (4,572) (683) (2,050) (2,733)
Other administrative expenses (540) - (540) (438) - (438)
----------------------------------------------------- --------- --------- --------- -------- --------- ---------
Net return before finance costs and taxation 1,929 1,420 3,349 2,500 163,466 165,966
Finance costs (195) (580) (775) (188) (564) (752)
----------------------------------------------------- --------- --------- --------- -------- --------- ---------
Net return before taxation 1,734 840 2,574 2,312 162,902 165,214
Taxation charges (171) - (171) (166) - (166)
----------------------------------------------------- --------- --------- --------- -------- --------- ---------
Net return after taxation 1,563 840 2,403 2,146 162,902 165,048
----------------------------------------------------- --------- --------- --------- -------- --------- ---------
Return per share 1.97p 1.06p 3.03p 2.95p 224.06p 227.01p
(1) GBP2,057,000 due to an exchange gain on the loan which is
denominated in US dollars. GBP693,000 due to net exchange loss on
cash and cash equivalents (2020: GBP1,430,000 due to an exchange
gain on the loan which is denominated in US dollars. GBP62,000 due
to net exchange gains on cash and cash equivalents).
statement of changes in equity
for the year ended 30th September 2021
Called
up Exercised Capital
share Share warrant redemption Other Capital Revenue
capital premium reserve reserve reserve(1,2) reserves(2) reserve(2) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ----------
At 30th September
2019 19,481 13,321 3 581 37,392 179,059 3,276 253,113
Net return - - - - - 162,902 2,146 165,048
Dividend paid
in the year
(note 3) - - - - - (1,776) (5,422) (7,198)
------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ----------
At 30th September
2020 19,481 13,321 3 581 37,392 340,185 - 410,963
Issue of Ordinary
shares 1,322 39,111 - - - - - 40,433
Issue of shares
from Treasury - 28,613 - - - 9,007 - 37,620
Project costs
- in relation
to issue of
new shares - (94) - - - - - (94)
Net return - - - - - 840 1,563 2,403
Dividend paid
in the year
(note 3) - - - - - (16,360) (1,563) (17,923)
------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ----------
At 30th September
2021 20,803 80,951 3 581 37,392 333,672 - 473,402
------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ----------
(1) Created during the year ended 30th September 1999, following
a cancellation of the share premium account.
(2) These reserves form the distributable reserves of the
Company and may be used to fund distributions to investors.
statement of FINANCIAL POSITION
as at 30th September 2021
2021 2020
GBP'000 GBP'000
------------------------------------------------------- ---------- ----------
Fixed assets
Investments held at fair value through profit or loss 521,634 454,645
------------------------------------------------------- ---------- ----------
Current assets
Debtors 4,264 819
Cash and cash equivalents 36 343
------------------------------------------------------- ---------- ----------
4,300 1,162
Current liabilities
Creditors: amounts falling due within one year (4,206) (44,844)
------------------------------------------------------- ---------- ----------
Net current assets/(liabilities) 94 (43,682)
------------------------------------------------------- ---------- ----------
Total assets less current liabilities 521,728 410,963
Creditors: amounts falling due after one year (48,326) -
------------------------------------------------------- ---------- ----------
Net assets 473,402 410,963
------------------------------------------------------- ---------- ----------
Capital and reserves
Called up share capital 20,803 19,481
Share premium 80,951 13,321
Exercised warrant reserve 3 3
Capital redemption reserve 581 581
Other reserve 37,392 37,392
Capital reserves 333,672 340,185
Total shareholders' funds 473,402 410,963
------------------------------------------------------- ---------- ----------
Net asset value per share 569.0p 565.3p
STATEMENT OF CASH FLOWs
for the year ended 30th September 2021
2021 2020
GBP'000 GBP'000
----------------------------------------------------------------- ---------- ----------
Net cash outflow from operations before dividends and interest (5,140) (2,885)
Dividends received 2,966 3,248
Interest received 8 18
Overseas tax recovered - 1
Interest paid (801) (700)
----------------------------------------------------------------- ---------- ----------
Net cash outflow from operating activities (2,967) (318)
----------------------------------------------------------------- ---------- ----------
Purchases of investments (385,098) (174,168)
Proceeds from sale of investments 320,797 161,070
Settlement of foreign currency contracts 51 33
----------------------------------------------------------------- ---------- ----------
Net cash outflow from investing activities (64,250) (13,065)
----------------------------------------------------------------- ---------- ----------
Dividends paid (17,923) (7,198)
Issue of Ordinary shares 40,433 -
Reissue of shares from Treasury 37,620 -
Project costs - in relation to issue of new shares (94) -
Repayment of bank loans - (67)
Drawdown of bank loans 6,800 17,895
Utilisation of bank overdraft 124 -
----------------------------------------------------------------- ---------- ----------
Net cash inflow from financing activities 66,960 10,630
----------------------------------------------------------------- ---------- ----------
Decrease in cash and cash equivalents (257) (2,753)
----------------------------------------------------------------- ---------- ----------
Cash and cash equivalents at start of year 343 3,134
Unrealised losses on foreign currency cash and cash equivalents (50) (38)
Cash and cash equivalents at end of year 36 343
----------------------------------------------------------------- ---------- ----------
Decrease in cash and cash equivalents (257) (2,753)
----------------------------------------------------------------- ---------- ----------
Cash and cash equivalents consist of:
Cash at bank 36 343
----------------------------------------------------------------- ---------- ----------
36 343
----------------------------------------------------------------- ---------- ----------
Notes to the financial statements
for the year ended 30th September 2021
1. Accounting policies
Basis of accounting
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 October 2019.
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 any
potential impact of COVID-19 pandemic on the going concern and
viability of the Company. They have considered the potential impact
of COVID-19 and the mitigation measures which key service
providers, including the Manager, have in place to maintain
operational resilience particularly in light of COVID-19. The
Directors have reviewed income and expense projections and the
liquidity of the investment portfolio in making their
assessment.
The policies applied in these Financial Statements are
consistent with those applied in the preceding year.
2. Return per share
2021 2020
GBP'000 GBP'000
------------------------------------------------------------ ----------- ------------
Revenue return 1,563 2,146
Capital return 840 162,902
------------------------------------------------------------ ----------- ------------
Total return 2,403 165,048
------------------------------------------------------------ ----------- ------------
Weighted average number of shares in issue during the year 79,481,601 72,703,188
Revenue return per share 1.97p 2.95p
Capital return per share 1.06p 224.06p
------------------------------------------------------------ ----------- ------------
Total return per share 3.03p 227.01p
------------------------------------------------------------ ----------- ------------
3. Dividends
(a) Dividends paid and proposed
2021 2020
GBP'000 GBP'000
------------------------------------------------------------------------- -------- --------
Dividends paid
2019 final dividend of 2.5p per share - 1,818
2021 first quarterly interim dividend of 5.7p (2020: 3.7p) 4,144 2,690
2021 second quarterly interim dividend of 5.7p (2020: 3.7p) 4,366 2,690
2021 third quarterly interim dividend of 5.7p (2020: nil) 4,671 -
2021 fourth quarterly interim dividend of 5.7p (2020: nil) 4,742 -
------------------------------------------------------------------------- -------- --------
Total dividends paid in the period 17,923 7,198
------------------------------------------------------------------------- -------- --------
Dividends proposed
2022 first quarterly interim dividend of 5.7p (2021: 5.7p) per share(1) 4,743 4,144
------------------------------------------------------------------------- -------- --------
(1) First quarterly payment of 4% of 569.0p per share, being the
NAV per share at 30th September 2021.
The first quarterly interim dividend has been declared in
respect of the year ended 30th September 2022. In accordance with
the accounting policy of the Company, this dividend will be
reflected in the financial statements for the year ending 30th
September 2022.
(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
the dividend proposed in respect of the financial year, shown
below.
The aggregate of the distributable reserves is GBP371,064,000
(2020: GBP377,577,000). Please note that at the Annual General
Meeting ('AGM') in February 2020, shareholders approved an
amendment to the Company's Articles of Association to allow the
Company to distribute capital as income to enable the
implementation of the Company's revised dividend policy). Please
see the Chairman's Statement in the Annual Report and Financial
Statements for further details.
2020 2019
GBP'000 GBP'000
-------------------------------------------------------- -------- --------
2021 first quarterly interim dividend of 5.7p (2020:
3.7p) 4,144 2,690
2021 second quarterly interim dividend of 5.7p (2020:
3.7p) 4,366 2,690
2021 third quarterly interim dividend of 5.7p (2020: 4,671 -
nil)
2021 fourth quarterly interim dividend of 5.7p (2020: 4,742 -
nil)
-------------------------------------------------------- -------- --------
17,923 5,380
-------------------------------------------------------- -------- --------
The aggregate of the distributable reserves after the payment of
the first quarterly dividend will amount to GBP366,321,000 (2020:
GBP373,433,000). Please see the Chairman's Statement in the Annual
Report and Financial Statements for further details.
4. Net asset value per share
2021 2020
--------------------------- ----------- ------------
Net assets (GBP'000) 473,402 410,963
Number of shares in issue 83,202,465 72,703,188
--------------------------- ----------- ------------
Net asset value per share 569.0p 565.3p
--------------------------- ----------- ------------
5. Status of results announcement
2020 Financial Information
The figures and financial information for 2020 are extracted
from the Annual Report and Financial Statements for the year ended
30th September 2020 and do not constitute the statutory accounts
for that year. The Annual Report and Financial Statements has been
delivered to the Registrar of Companies and included the Report of
the Independent Auditors which was unqualified and did not contain
a statement under either section 498(2) or section 498(3) of the
Companies Act 2006.
2021 Financial Information
The figures and financial information for 2021 are extracted
from the Annual Report and Financial Statements for the year ended
30th September 2021 and do not constitute the statutory accounts
for that year. The Annual Report and Financial Statements includes
the Report of the Independent Auditors which is unqualified and
does not contain a statement under either section 498(2) or section
498(3) of the Companies Act 2006. The Annual Report and Financial
Statements will be delivered to the Registrar of Companies in due
course.
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.
3rd December 2021
For further information:
Lucy Dina,
JPMorgan Funds Limited
020 7742 4000
S
A copy of the 2021 Annual Report and Financial Statements 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 2021 Annual Report and Financial Statements will also
shortly be available on the Company's website at
www.jpmchinagrowthandincome.co.uk where up-to-date information on
the Company, including daily NAV and share prices, factsheets and
portfolio information can also be found.
JPMORGAN FUNDS LIMITED
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
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.
END
FR UOUURAKUURAA
(END) Dow Jones Newswires
December 03, 2021 07:34 ET (12:34 GMT)
Jpmorgan China Growth & ... (LSE:JCGI)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Jpmorgan China Growth & ... (LSE:JCGI)
Gráfica de Acción Histórica
De May 2023 a May 2024
