TIDMJAGI
RNS Number : 2770N
JPMorgan Asia Growth & Income PLC
30 May 2022
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN ASIA GROWTH AND INCOME INVESTMENT TRUST PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHSED 31ST MARCH
2022
Legal Entity Identifier: 5493006R74BNJSJKCB17
Information disclosed in accordance with DTR 4.2.2
CHAIRMAN'S STATEMENT
Performance
There was remarkable symmetry to the Company's performance
statistics over the six months to 31st March 2022 as the Company's
net asset value ('NAV') return, share price return and benchmark
index all retreated by 6.9% (all figures are on a total return
basis).
The decline in the Company's performance in absolute terms over
the review period is disappointing, however Asian equity markets
can be particularly volatile at times, and the Company has
weathered several previous bouts of return volatility over its 25
year history. To put recent performance into perspective, it is
helpful to consider the Company's performance track record over
longer periods, and I am pleased to report that the Company has
provided shareholders with significant positive returns, and
notable outperformance of the benchmark, over the long term. Its
annualised return over the ten year period to end March 2022 was
9.7% on an NAV basis, and 10.2% in share price terms, comfortably
higher that the benchmark's 7.8% increase.
Over the six month review period, the benchmark's 6.9% decline
masked a more mixed performance of the region's various markets.
China experienced the largest fall (17.5% in sterling terms), due
to several adverse influences, some domestic and some driven by
events on the global stage. Economic activity in China has slowed
due to the severity of government's efforts to control the spread
of the Omicron variant, and the policy-induced slump in the
property market. In addition, investors are still concerned about
long term implications of the Chinese authorities' regulatory
crackdown.
At the same time, most major markets around the world have been
hit by escalating inflation and fears of further interest rate
increases. Some of these global price pressures are the result of
Chinese factory closures, which have increased supply constraints
on key manufacturing components, especially semiconductors, while
Russia's invasion of Ukraine has compounded existing pressures on
energy and commodity prices. To dampen these pressures, the US
Federal Reserve and the Bank of England began tightening monetary
policy during the review period, and signalled further rate hikes
ahead. This led to a significant re-rating of growth stocks across
all major markets, with media and technology stocks being most
vulnerable to such revaluations. China's technology stocks have
been especially badly affected.
Across the rest of the Asian region, South Korean and Hong Kong
markets also declined (by 8.3% and 3.0% respectively in sterling
terms), in part due to the same revaluation of growth stocks, while
other markets saw gains, led by Indonesia, which rose 19.4% in
sterling terms over the period. Despite weakness in the Chinese and
Korean markets, the portfolio's positioning in these markets was
one of the main sources of outperformance, thanks to the asset
allocation and stock selection skills of the Company's Investment
Managers. For Indonesia, both the overweight positioning and stock
selection contributed to performance. More broadly, the market
benefited from rising resource and energy prices as Indonesia is a
key exporter of natural gas, industrial metals and coal.
During the period, growth stocks in China generally
underperformed the broader market, with many of these names finding
that the path towards profitability is increasingly challenged
because of rising competition and regulatory headwinds. This has
also been the case across other markets including in South East
Asia, India and Korea. The value segment of the market has
performed well mainly due to banks benefiting from rising interest
rates, the economic and credit recovery in most regions in Asia and
credit costs generally remaining low. The Company does not take a
large bet in either the direction of value or growth and is focused
more on owning the best businesses which are reasonably valued
across regions and sectors.
Full detail of the Company's performance, together with a market
review and outlook for 2022, can be found in the Investment
Managers' Report on pages 9 to 12 of the Company's Half Year Report
and Financial Statements for the six months ended 31st March 2022
('2022 Half Year Report').
Dividend Policy
In the absence of unforeseen developments, the Company's
dividend policy aims to pay regular, quarterly dividends, each
equivalent to 1% of the Company's NAV. Payments are set based on
the NAV on the last business day of each financial quarter, being
the end of December, March, June and September, and are funded from
a combination of revenue and capital reserves.
For the year ended 30th September 2021, dividends paid totalled
19.3 pence (2020: 15.8 pence). In respect of the quarters ended
31st December 2021 and 31st March 2022, dividends of 4.5 pence and
4.2 pence respectively were paid, totalling 8.7 pence. Two further
dividends will be declared on the first business day after 30th
June and 30th September 2022.
The Board would like to remind shareholders that the dividends
are based upon a percentage of net assets, so the dividend paid to
shareholders will reflect the Company's net assets at the
particular quarter end, and will thus be subject to market
fluctuations.
Discount and Share Capital Management
The discount level of the Company's shares has remained largely
unchanged during the review period. The discount level is closely
monitored by the Board and the Manager and during the six months to
31st March 2022, 102,796 shares were bought back and held in
treasury.
Gearing
The Company has in place a multi-currency loan facility with
Scotiabank. The Investment Managers utilise drawdowns from this
loan facility to gear the portfolio during periods when they expect
gearing to enhance performance. Over the reporting period and at
the time of writing, the Company was not geared.
Board of Directors
As reported in the Annual Report 2021, having served as a
Director since September 2013, and chaired the Board since 2017, I
will be retiring at the Company's Annual General Meeting to be held
in February 2023. I will be succeeded by Sir Richard Stagg, who has
served on the Board since July 2018. Directors will seek to appoint
a new Director at some point this year.
Outlook
The challenges facing global and Asian markets have increased
since our last report, due in large part to the tragic war in
Ukraine. In addition to the major escalation in geopolitical
tensions triggered by the conflict, Asian countries are not immune
to the energy and commodity prices rises the war has exacerbated.
Resultant interest rates increases in the US and other developed
markets are likely to keep the valuations of Asia's long duration
growth stocks under pressure. This is the case even though policy
is being eased, not tightened, in China, in an attempt to revive
the property sector and offset the massive economic cost of China's
'Covid-zero' policy. It seems likely that this policy will remain a
drag on economic activity until a higher proportion of China's
elderly population is adequately vaccinated. Meantime, with many of
China's factories closed, global component shortages are likely to
persist or worsen.
Despite these near-term uncertainties and worries, the Board
continues to believe that Asia offers significant long-term
investment opportunities and, given the recent market sell-off,
there are many opportunities now available at more attractive
prices. The region is benefiting from major structural and social
changes and it is home to a growing number of innovative, dynamic
and well-managed companies, including some world leaders in tech,
healthcare and other sectors. Structural changes will bring about
opportunities for companies across the Asian region, and
particularly in South East Asia, as China's dominance of
manufacturing and supplier operations declines and global companies
seek out supply chain diversification.
JPMorgan Asia Growth & Income is a low-cost way to gain
diversified exposure to the best of the region's opportunities,
while simultaneously providing shareholders with a competitive
income of approximately 4%. The Board has great confidence that the
Company's Investment Managers will continue to deliver attractive
returns and outperformance to patient investors willing to tolerate
bouts of market volatility.
Bronwyn Curtis OBE
Chairman
30th May 2022
INVESTMENT MANAGERS' REPORT
Introduction
In this report we consider the Company's investment performance
for the six month period to 31st March 2022. We review the market
backdrop over the period, and examine the factors that impacted
relative performance. Finally, we consider the outlook for Asian
equities over the coming six months and beyond.
The market environment
In the six month period to the end of March 2022, investor
sentiment deteriorated significantly, with the MSCI AC Asia ex
Japan Index falling 6.9% in sterling terms. A myriad of factors
impacted the regions. Starting from a global perspective, the
tragic invasion of Ukraine exacerbated issues that were already
weighing on sentiment, including both inflationary pressures driven
by rising resource and commodity prices as well as continued
challenges with the global supply chain. The conflict has also
heightened political concerns due to the Chinese Communist Party's
ambivalent messaging and partial support for Russia. Investors are
worried that an increasingly united West could extend sanctions to
China if diplomatic relationships between the West and China cannot
be improved.
More regionally, the outlook for growth in China, Hong Kong and
South Korea also worsened over the period. The Chinese market was
hit particularly hard by the property market downturn and a sharp
sell-off in technology companies, combined with a marked economic
slowdown. Chinese growth is now running below trend - official GDP
data showed annualised growth of 4% in Q4 2021, and 4.8% growth in
Q1 2022, compared to 8.1% in 2021 calendar year. China's economy
has performed better than Hong Kong's, mainly because of strong
exports, which have been driven by the global recovery. Hong Kong's
economy contracted by 1% year on year in the first quarter, as a
consequence of the government's strict policies to contain the
spread of Covid-19. Total output in nominal terms has not grown for
two years and unemployment is at all time highs. South Korean GDP
growth has remained positive, at 3.1% annualised in Q1 2022, but
this is half the pace of growth experienced over the previous year,
as the central bank took steps to quell inflation pressures.
Elsewhere in the region, the majority of South East Asian
markets performed well. Indonesia was the best performing market
over the six month review period, led primarily by companies seen
to be beneficiaries of rising commodity prices. Taiwan also
outperformed the index, thanks to two different drivers. Rising US
interest rates supported Taiwanese financial names, while Taiwan
Semiconductor Manufacturing ('TMS'), one of the world's leading
producers of semiconductors, continues to benefit from strong
global demand and ongoing supply constraints. The company's Q4
results were robust, with sales growing more than 6% over the
quarter. Leading edge chips used in the most technologically
advanced sectors such as high performance computing, mobile phones,
Internet of Things ('IoT') and automobiles made up more than 50% of
revenues, and sales of chips for use in electric vehicles and
mobile phones grew approximately 10% quarter on quarter. TMS was
the Company's largest position as at end March 2022, and one of the
key contributors to returns over the review period.
Unlike in the West, some Asian countries have chosen not to
'live with the virus', and have instead maintained relatively
strict protocols to minimise the spread of Covid-19. Hong Kong and
China have implemented the most severe controls, despite the
enormous cost to both economies. In sharp contrast, the economies
of India and most of South East Asia are experiencing rapid,
post-pandemic recoveries as normal life resumes.
Although inflation concerns have risen sharply in many developed
countries, due to the shortage of semiconductors and other
components, combined with rising energy and commodity prices, these
factors have had a more mixed impact on inflation in Asia. In
countries such as South Korea and India, inflation is testing ten
year highs, while in China and Indonesia, inflation has been rather
benign. However, despite this mixed regional picture, rising US
inflation and interest rates have nonetheless adversely impacted
the share prices of Asian businesses whose valuations are based on
their long-term growth prospects. Technology and media stocks have
been hardest hit by downward revaluations, and this has weighed
particularly heavily on markets such as China, whose indices have a
high proportion of these stocks.
Performance
Against this very mixed, and challenging backdrop, the Company
performed in line with the index over the period, declining by 6.9%
on a net asset value ('NAV') total return basis, and in share price
terms. This outright fall is, of course, disappointing, but the
Company has delivered significant positive returns for shareholders
in absolute terms, and outperformed the benchmark, over three, five
and ten years. Over the ten years to the end March 2022, the
Company has generated an annualised return of 9.7% in NAV terms,
and 10.2% on a share price basis, compared to a benchmark return of
7.8%, measured on the same basis.
PERFORMANCE ATTRIBUTION
FOR THE SIX MONTHSED 31ST MARCH 2022
% %
-------------------------------------- ----- -----
Contributions to total returns
-------------------------------------- ----- -----
Benchmark return (in sterling terms) -6.9
-------------------------------------- ----- -----
Stock selection -0.1
-------------------------------------- ----- -----
Currency effect 0.2
-------------------------------------- ----- -----
Gearing/Cash 0.2
-------------------------------------- ----- -----
Investment manager contribution 0.3
-------------------------------------- ----- -----
Dividend/residual(1) 0.1
-------------------------------------- ----- -----
Portfolio return -6.5
Management fee/other expenses -0.4
-------------------------------------- ----- -----
Return on net assets -6.9
-------------------------------------- ----- -----
Return to shareholders -6.9
-------------------------------------- ----- -----
(1) The dividend/residual arises principally from timing
differences in the treatment of income flows.
Source: FactSet, JPMAM and Morningstar.
All figures are on a total return basis. Performance attribution
analyses how the portfolio achieved its recorded performance
relative to its benchmark.
Major Contributors and Detractors to Performance
At a stock level, our significant overweight to financials
contributed positively to returns over the review period, including
banks in Indonesia, China, and Singapore. Broadly, banks in the
region have performed well, driven by the economic recovery, which
has been especially sharp in Indonesia. Investors are also
anticipating the favourable impact that rising interest rates will
have on banks' margins. In China, amidst the continued troubles of
the property sector, the best and most conservatively managed
developers, including portfolio holding China Resources Land Ltd,
are taking market share and producing solid earnings results,
despite a challenging business environment.
At the sector level, in addition to the Company's exposure to
financials, holdings in oil and gas companies, also performed
strongly, due to the rise in energy and other commodity prices. For
example, our out-of-index position in Santos, an Australian-listed
resource company, has been one of the main contributors to
performance during the review period. Its production growth is
primarily driven by projects in South East Asia, including Papua
New Guinea.
At the country level, our modest underweight to the poorly
performing Chinese market enhanced returns. Our overweight to South
Korea also contributed positively, thanks in part to our holdings
in SK Hynix, a semiconductor manufacturer and a top ten holding,
AfreecaTV and Kakao Corp, an internet content and information
provider. The latter is Korea's leading internet conglomerate, with
wide ranging businesses including the country's largest online
bank, and platforms offering ride sharing, e-commerce and digital
content. Our overweight to Indonesia, the region's strongest
performer over the review period, also supported performance, while
our underweights to Taiwan and India and our overweight to
Singapore detracted.
The biggest detractors from performance at the stock level were
growth stocks in the technology and media sectors whose valuations
have been hit by rising interest rates. Singapore's Sea Limited was
the largest negative contributor. The company operates two main
businesses: a video game developer focused primarily on emerging
markets, and an e-commerce platform with operations in South East
Asia, Taiwan, Eastern Europe and Latin America. In addition to the
adverse impact of higher rates on Sea Ltd's valuation, the growth
outlook for the company's gaming business has matured quickly and
e-commerce is becoming more competitive, especially in Latin
America. Other detractors from returns include Chinese healthcare
names such as Zai Lab, Wuxi Biologics, and Pharmaron Beijing.
Despite their good results, these companies have seen their share
prices correct sharply on concerns about the possibility of US
government sanctions.
Portfolio activity over the past six months
Recent market volatility has created opportunities for us to
purchase businesses at more attractive levels. We added to existing
holdings in Han's Laser, a Chinese firm with strong positioning in
factory automation where demand is being driven by industrial and
electric vehicle demand. We also topped up the existing position in
Singapore Exchange on underperformance related to the launch of
Chinese A share futures by Hong Kong Exchange. Despite this, the
exchange has maintained a 90% share and importantly both products
are growing. A new purchase was Infosys, one of the leaders in
off-shore IT services in India and the company is benefitting from
strong demand trends and increasing enterprise digitalisation.
Key outright sales were LG Household & Health Care because
the Chinese cosmetics industry is proving to be more competitive
and even LGHH's prestige brands are growing at a slower pace and
likely losing share, and PTT Exploration & Production, which
outperformed on the back of rising oil and natural gas prices. We
also reduced the position in Meituan as near term outlook turned
incrementally negative given rising regulatory risks for food
delivery, which weigh on the probability that the normalised EPS
forecasts will be achieve in the near term.
What should investors expect over the next six months?
Global financial markets are currently subject to unusually high
levels of uncertainty, which are being fuelled by a number of
factors - the marked slowdown in Chinese growth, the conflict in
Ukraine, associated rises in commodity costs, other inflation
pressures, and rising interest rates. What makes the current
situation even more unique is the fact that inflation is being
driven to a significant extent by persistent supply chain
disruptions, due in part to factory closures in China, as the
authorities maintain stringent lockdown conditions.
Unfortunately, the Fed and other central banks have little power
to alleviate these supply bottlenecks. They can only try to dampen
domestic demand by tightening monetary policy. The Fed and the Bank
of England have already taken steps along this path and signalled
their intention to increase rates further in coming months. Slower
US growth in particular is likely to weigh on US export demand for
goods from Taiwan, South Korea and China.
Market valuations across the region mostly reflect this
deterioration in the economic environment. The MSCI AC Asia ex
Japan Index is trading at a price to book ratio of 1.6x, which is
approximately 5% lower than the average of the last 20 years.
Looking more deeply into the Index's geographical constituents,
valuations in South Korea, Hong Kong and China are relatively more
attractive following recent market sell-offs, while in India they
remain elevated. We are overweight to South Korea and Hong Kong
accordingly, but underweight China due to our concerns around the
slowing economy, regulation headwinds and elevated valuations in
the growth segment of the market. We also have a significant
underweight to India, which we believe is not only expensive at
current levels, but also especially vulnerable to commodity price
hikes due to its heavy reliance on imported resources.
In the current inflationary environment, a company's ability to
pass on higher costs to its customers is a key determinant of its
future prospects. Yet in Asia, corporates across all sectors except
energy and other resource producers lack pricing power and are thus
seeing pressure on margins. Again, we see this as a particular
issue in India, where the market's current high valuations suggest
that investors have not yet discounted looming inflation risks.
With India's inflation rate testing ten year highs, it is only a
matter of time before its central bank tightens policy. This will
cast a cloud over the economic outlook and possibly lead investors
to reassess current elevated market valuations.
Despite myriad near term uncertainties, and risks to some
markets, we stand by our conviction that Asian equities continue to
provide attractive long term investment opportunities. From a
top-down perspective, Asian countries have large and growing
economies, accounting for roughly 40% of the world's GDP, and are
home to many companies that are global leaders in a wide range of
industries, including semiconductor manufacturing, healthcare,
renewable energy, next generation automotive production and
financials.
We remain confident that our long experience, our presence in
local markets and our focus on the fundamental analysis of specific
stocks, will allow us to keep identifying the best investment
opportunities on offer in the region, ensuring the Company's
portfolio continues to provide our investors with attractive
returns and outperformance over the long term.
Ayaz Ebrahim
Robert Lloyd
Investment Managers
30th May 2022
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its
half year report:
Principal Risks and Uncertainties
The principal and emerging risks faced by the Company fall into
the following broad categories: investment and strategy, political
and economic, operational risk and cybercrime, climate change and
global pandemic. Information on the principal and emerging risks
faced by the Company is given in the business review section within
the 2021 Annual Report and Financial Statements.
Related Parties Transactions
During the first six months of the current financial year, no
transactions with related parties have taken place which have
materially affected the financial position or the performance of
the Company during the period.
Going Concern
The Directors believe, having considered the Company's
investment objectives, risk management policies, capital management
policies and procedures, nature of the portfolio (being mainly
securities which are readily realisable) and expenditure
projections, that the Company has adequate resources, an
appropriate financial structure and suitable management
arrangements in place to continue in operational existence for the
foreseeable future and, more specifically, that there are no
material uncertainties pertaining to the Company that would prevent
its ability to continue in such operational existence for at least
12 months from the date of the approval of this half-yearly
financial report. For these reasons, they consider there is
reasonable evidence to adopt the going concern basis in preparing
the financial statements. This conclusion also takes into account
the Board's assessment of the impact of heightened market
volatility since the Covid-19 outbreak and more recently the
Russian invasion of Ukraine, but does not believe the Company's
going concern status is affected.
Continuation votes are held every three years and the next
continuation vote will be put to shareholders at the Annual General
Meeting in 2023.
Directors' Responsibilities
The Board of Directors confirms that, to the best of its
knowledge:
(i) the condensed set of financial statements contained within
the half yearly financial report has been prepared in accordance
with FRS 104 'Interim Financial Reporting' and gives a true and
fair view of the state of affairs of the Company and of the assets,
liabilities, financial position and net return of the Company, as
at 31st March 2022, as required by the UK Listing Authority
Disclosure and Transparency Rules 4.2.4R; and
(ii) the interim management report includes a fair review of the
information required by 4.2.7R and 4.2.8R of the UK Listing
Authority Disclosure and Transparency Rules.
In order to provide these confirmations, and in preparing these
financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business;
and the Directors confirm that they have done so.
For and on behalf of the Board
Bronwyn Curtis OBE
Chairman
30th May 2022
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31ST MARCH 2022
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st March 2022 31st March 2021 30th September
2021
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- --------- ---------- ---------- -------- -------- -------- -------- -------- --------
(Losses)/gains on
investments
held at fair value
through
profit or loss - (31,212) (31,212) - 70,090 70,090 - 50,965 50,965
Net foreign currency
gain/(loss) - 62 62 - (274) (274) - (151) (151)
Income from
investments 2,505 - 2,505 2,159 - 2,159 6,799 - 6,799
Interest receivable
and
similar income 50 - 50 20 - 20 51 - 51
----------------------- --------- ---------- ---------- -------- -------- -------- -------- -------- --------
Gross return/(loss) 2,555 (31,150) (28,595) 2,179 69,816 71,995 6,850 50,814 57,664
Management fee (1,260) - (1,260) (1,331) - (1,331) (2,727) - (2,727)
Other administrative
expenses (337) - (337) (338) (90) (428) (697) (90) (787)
----------------------- --------- ---------- ---------- -------- -------- -------- -------- -------- --------
Net return/(loss)
before
finance costs and
taxation 958 (31,150) (30,192) 510 69,726 70,236 3,426 50,724 54,150
Finance costs (21) - (21) (20) - (20) (41) - (41)
----------------------- --------- ---------- ---------- -------- -------- -------- -------- -------- --------
Net return/(loss)
before
taxation 937 (31,150) (30,213) 490 69,726 70,216 3,385 50,724 54,109
Taxation
credit/(charge) 247 (394) (147) (402) - (402) (670) (171) (841)
----------------------- --------- ---------- ---------- -------- -------- -------- -------- -------- --------
Net return/(loss)
after taxation 1,184 (31,544) (30,360) 88 69,726 69,814 2,715 50,553 53,268
----------------------- --------- ---------- ---------- -------- -------- -------- -------- -------- --------
Return/(loss) per
share (note 3) 1.21p (32.29)p (31.08)p 0.09p 73.83p 73.92p 2.84p 52.81p 55.65p
----------------------- --------- ---------- ---------- -------- -------- -------- -------- -------- --------
All revenue and capital items in the above statement derive from
continuing operations.
The 'Total' column of this statement is the profit and loss
account of the Company and the 'Revenue' and 'Capital' columns
represent
supplementary information prepared under guidance issued by the
Association of Investment Companies.
Net return/(loss) after taxation represents the profit/(loss)
for the period and also the total comprehensive income.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31ST MARCH 2022
Called Exercised Capital
up
share Share warrant redemption Capital Revenue
capital premium reserve reserve reserves(1) reserve(1) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
Six months ended 31st
March 2022
(Unaudited)
At 30th September
2021 24,449 46,705 977 25,121 352,948 - 450,200
Repurchase of shares
into Treasury - - - - (131) - (131)
Net (loss)/return - - - - (31,544) 1,184 (30,360)
Dividends paid in the
period (note 4) - - - - (7,706) (1,184) (8,890)
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
At 31st March 2022 24,449 46,705 977 25,121 313,567 - 410,819
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
Six months ended 31st
March 2021
(Unaudited)
At 30th September
2020 23,762 31,646 977 25,121 315,134 - 396,640
Issue of new Ordinary
shares 29 544 - - - - 573
Issue of shares from
Treasury - 2,079 - - 2,892 - 4,971
Net return - - - - 69,726 88 69,814
Dividends paid in the
period (note 4) - - - - (8,400) (88) (8,488)
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
At 31st March 2021 23,791 34,269 977 25,121 379,352 - 463,510
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
Year ended 30th September
2021
(Audited)
At 30th September
2020 23,762 31,646 977 25,121 315,134 - 396,640
Issue of Ordinary shares 687 12,980 - - - - 13,667
Issue of shares from
Treasury - 2,079 - - 2,892 - 4,971
Repurchase of shares
into Treasury - - - - (299) - (299)
Net return - - - - 50,553 2,715 53,268
Dividends paid in the
year (note 4) - - - - (15,332) (2,715) (18,047)
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
At 30th September
2021 24,449 46,705 977 25,121 352,948 - 450,200
--------------------------- -------- -------- ---------- ----------- ------------ ----------- ----------
(1) These reserves form the distributable reserves of the
Company and may be used to fund distributions to investors.
STATEMENT OF FINANCIAL POSITION
AT 31ST MARCH 2022
(Unaudited) (Unaudited) (Audited)
31st March 31st March 30th September
2022 2021 2021
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------ ------------ ---------------
Fixed assets
Investments held at fair value through
profit or loss 407,384 461,000 448,721
---------------------------------------- ------------ ------------ ---------------
Current assets
Debtors 6,322 1,820 507
Cash and cash equivalents 1,107 1,256 1,496
---------------------------------------- ------------ ------------ ---------------
7,429 3,076 2,003
Creditors: amounts falling due within
one year (3,993) (565) (524)
Derivative financial liabilities (1) (1) -
---------------------------------------- ------------ ------------ ---------------
Net current assets 3,435 2,510 1,479
---------------------------------------- ------------ ------------ ---------------
Total assets less current liabilities 410,819 463,510 450,200
---------------------------------------- ------------ ------------ ---------------
Net assets 410,819 463,510 450,200
---------------------------------------- ------------ ------------ ---------------
Capital and reserves
Called up share capital 24,449 23,791 24,449
Share premium 46,705 34,269 46,705
Exercised warrant reserve 977 977 977
Capital redemption reserve 25,121 25,121 25,121
Capital reserves 313,567 379,352 352,948
---------------------------------------- ------------ ------------ ---------------
Total shareholders' funds 410,819 463,510 450,200
---------------------------------------- ------------ ------------ ---------------
Net asset value per share (note 5) 420.5p 487.1p 460.7p
---------------------------------------- ------------ ------------ ---------------
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31ST MARCH 2022
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st March 31st March 30th September
2022 2021 2021
GBP'000 GBP'000 GBP'000
------------------------------------------- ------------ ------------ ---------------
Net cash outflow from operations before
dividends and interest (1,681) (1,809) (3,346)
Dividends received 999 1,352 6,327
Interest received 1 2 3
Taxation 194 - 23
Interest paid (22) (20) (40)
------------------------------------------- ------------ ------------ ---------------
Net cash (outflow)/inflow from operating
activities (509) (475) 2,967
------------------------------------------- ------------ ------------ ---------------
Purchases of investments (102,642) (99,774) (166,687)
Sales of investments 111,963 101,142 160,862
Settlement of forward currency contracts 40 (71) (111)
------------------------------------------- ------------ ------------ ---------------
Net cash inflow/(outflow) from investing
activities 9,361 1,297 (5,936)
------------------------------------------- ------------ ------------ ---------------
Dividends paid (8,890) (8,488) (18,047)
Ordinary shares issued - 125 13,667
Repurchase of shares from Treasury - 4,971 4,971
Repurchase of shares into Treasury (430) - -
------------------------------------------- ------------ ------------ ---------------
Net cash (outflow)/inflow from financing
activities (9,320) (3,392) 591
------------------------------------------- ------------ ------------ ---------------
Decrease in cash and cash equivalents (468) (2,570) (2,378)
------------------------------------------- ------------ ------------ ---------------
Cash and cash equivalents at start of
period/year 1,496 3,966 3,966
Unrealised gains/(losses) on foreign
currency cash and
cash equivalents 79 (140) (92)
Cash and cash equivalents at end of
period/year 1,107 1,256 1,496
------------------------------------------- ------------ ------------ ---------------
Decrease in cash and cash equivalents (468) (2,570) (2,378)
------------------------------------------- ------------ ------------ ---------------
Cash and cash equivalents consist of:
Cash and short term deposits 1,100 1,256 532
Cash held in JPMorgan US Dollar Liquidity
Fund 7 - 964
------------------------------------------- ------------ ------------ ---------------
Total 1,107 1,256 1,496
------------------------------------------- ------------ ------------ ---------------
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31ST MARCH 2022
1. Financial statements
The information contained within the financial statements in
this half year report has not been audited or reviewed by the
Company's auditors.
The figures and financial information for the year ended 30th
September 2021 are extracted from the latest published financial
statements of the Company and do not constitute statutory accounts
for that year. Those financial statements have been delivered to
the Registrar of Companies and include the report of the auditors
which was unqualified and did not contain a statement under either
section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
Basis of accounting
The financial statements have been prepared in accordance with
the Companies Act 2006, FRS 102 'The Financial Reporting Standard
applicable in the UK and Republic of Ireland' of the United Kingdom
Generally Accepted Accounting Practice ('UK GAAP') and with the
Statement of Recommended Practice 'Financial Statements of
Investment Trust Companies and Venture Capital Trusts' (the 'SORP')
issued by the Association of Investment Companies in April
2021.
FRS 104, 'Interim Financial Reporting', issued by the FRC in
March 2015 has been applied in preparing this condensed set of
financial statements for the six months ended 31st March 2022.
All of the Company's operations are of a continuing nature.
The accounting policies applied to this condensed set of
financial statements are consistent with those applied in the
financial statements for the year ended 30th September 2021.
3. (Loss)/return per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st March 31st March 30th September
2022 2021 2021
GBP'000 GBP'000 GBP'000
----------------------------- ------------ ------------ ---------------
(Loss)/return per share
is based on the following:
Revenue return 1,184 88 2,715
Capital (loss)/return (31,544) 69,726 50,553
----------------------------- ------------ ------------ ---------------
Total (loss)/return (30,360) 69,814 53,268
----------------------------- ------------ ------------ ---------------
Weighted average number
of shares in issue 97,694,197 94,443,779 95,724,531
Revenue return per share 1.21p 0.09p 2.84p
Capital (loss)/return per
share (32.29)p 73.83p 52.81p
----------------------------- ------------ ------------ ---------------
Total (loss)/return per
share (31.08)p 73.92p 55.65p
----------------------------- ------------ ------------ ---------------
4. Dividends
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st March 31st March 30th September
2022 2021 2021
GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------ ---------------
Dividends paid
2021 second quarterly dividend
of 4.2p - 3,951 3,951
2021 third quarterly dividend
of 4.8p - 4,537 4,537
2021 fourth quarterly dividend
of 4.6p (2020: 4.9p) 4,494 - 4,690
2022 first quarterly dividend
of 4.5p (2021: 5.0p) 4,396 - 4,869
-------------------------------- ------------ ------------ ---------------
Total dividends paid in
the period/year 8,890 8,488 18,047
-------------------------------- ------------ ------------ ---------------
A second quarterly dividend of 4.2p has been declared for
payment on 26th May 2022 for the financial year ending 30th
September 2022.
Dividend payments in excess of the revenue amount will be paid
out of the Company's distributable capital reserve.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months Year ended
ended
31st March 2022 31st March 30th September
2021 2021
--------------------------- ----------------- ------------ ---------------
Net assets (GBP'000) 410,819 463,510 450,200
Number of shares in issue 97,694,197 95,161,993 97,725,197
--------------------------- ----------------- ------------ ---------------
Net asset value per share 420.5p 487.1p 460.7p
--------------------------- ----------------- ------------ ---------------
JPMORGAN FUNDS LIMITED
30th May 2022
For further information, please contact:
Alison Vincent
For and on behalf of
JPMorgan Funds Limited
020 7742 4000
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
ENDS
A copy of the annual report will shortly be submitted to the
FCA's National Storage Mechanism and will be
available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The annual report will shortly be available on the Company's
website at www.jpmasiagrowthandincome.co.uk where up-to-date
information on the Company, including daily NAV and share prices,
factsheets and portfolio information can also be found.
This information is provided by RNS, the news service of the
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END
IR BKKBPBBKDOPN
(END) Dow Jones Newswires
May 30, 2022 09:01 ET (13:01 GMT)
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