TIDMJEMI
RNS Number : 5599U
JPMorgan Glb Emerging Mkts Inc Tst
06 April 2021
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL EMERGING MARKETS INCOME TRUST PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHSED 31ST JANUARY
2021
Legal Entity Identifier: 549300OPJXU72JMCYU09
Information disclosed in accordance with DTR 4.2.2
CHAIRMAN'S STATEMENT
Performance
During the six months to 31st January 2021, Emerging Markets
delivered strong positive returns for investors with the Company's
benchmark index, the MSCI Emerging Markets Index with net dividends
reinvested (in sterling terms) rising 18.6%. In the same period the
Company's total return on net assets was +23.7%. The total return
to shareholders was +30.1%, reflecting a material narrowing of the
discount to net asset value at which the Company's shares trade,
from 8.8% at the previous financial year end to 4.3% at the half
year end.
The principal reasons for the Company's outperformance against
the benchmark index were stock selection in China and positive
relative performance from the portfolio's exposures in Taiwan and
India. As mentioned in my previous Statement in October 2020, the
Company's income objective means that the composition of the
portfolio is significantly different to the composition of the
benchmark index, which further explains why returns may vary
meaningfully from the benchmark index. The Investment Managers'
Report reviews the Company's performance in more detail and
comments on the investment strategy.
Dividends
In the Company's current financial year, the Board has declared
two interim dividends of 1.0p each, in line with the same period
last year.
In the last financial year, the Board paid total dividends of
5.1p per share, maintained at the same level as the year before. As
I stated in my October 2020 report, although the revenues generated
last financial year did not cover the dividends paid, the Board
felt that it was appropriate to use revenue reserves to maintain
the dividend payout. We recognise that dividend generation from the
Company is important to our shareholders and it is a distinguishing
feature of investment trusts that we are able to smooth the
dividend stream in this way. We cannot guarantee that we will
always be able to use revenue reserves to augment income received
by the Company in any given year, but recognise that we currently
have remaining revenue reserves after the payment of this year's
second quarterly interim dividend of GBP7.6 million (July 2020:
GBP8.9 million after accounting for the fourth quarterly interim
dividend declared in 2020) or 50% (July 2020: 60%) of future annual
dividends at the current annual level.
The Board continues to monitor dividend receipts recognising
that some companies within your portfolio may continue to
experience pressure maintaining historic dividend payout ratios in
the short term. Over the longer term, both the Investment Manager
and your Board remain of the view that Emerging Markets continue to
offer long term growth potential with attractive income prospects.
The Board carefully considers the outlook and potential
sensitivities with the investment team on a regular basis,
including the impact of currency movements on revenue receipts. As
shareholders are aware, the Company receives dividends in the
currencies of developing countries and US dollars, but pays
dividends in sterling. It has not been the Company's policy to
hedge currency risk as that is expensive and, for many currencies,
impracticable. That policy inevitably means that the Company's
asset values and cash flows will be buffeted by adverse currency
movements (if sterling strengthens) and flattered by favourable
moves (if sterling weakens relative to Emerging Market currencies
and US dollars). More recently, the pound has been strengthening
against Emerging Market currencies which acts to reduce revenues
and total returns in sterling terms.
Gearing and Loan Facilities
The Board regularly discusses gearing with the Investment
Managers who use it to enhance long-term shareholder returns. As at
the beginning of the financial year, the Company had two US$20
million fixed rate loan facilities with National Australia Bank,
repayable in October 2020 (2.31% per annum) and November 2022
(3.28% per annum). Upon maturity of the first loan facility on 8th
October 2020, the Company entered into a three year US$20 million
rolling interest loan facility with ING Bank, repayable in October
2023. This resulted in a lower blended interest rate for the
Company. As at 31st January 2021, gearing stood at 4.7% (31st July
2020: 6.9%).
Share Repurchases and Issuance
During the six months to 31st January 2021, the Company's share
price traded at an average discount to net asset value of 7.7%. The
Company did not undertake any share repurchases, nor did it issue
any shares during the reporting period.
Environmental, Social and Governance Issues
The Manager believes that sustainable investing delivers
superior returns over the long term, and has followed this ethos
since long before ESG issues gained prominence. The investment team
has always incorporated ESG considerations into how it selects
stocks in Emerging Market companies and, more recently, the
integration of these processes has become formalised. The Board is
aware of the ever-increasing focus by shareholders on sustainable
and responsible investment and we welcome this interest. We
published the Investment Managers' first ESG Report in our 2020
Annual Report and have recently released our first externally
measured ESG Rating on our website, which gives the Company an 'A'
rating and an impressive 96th percentile rank (100th being the
highest) in the Equity Emerging Markets Global peer group. Further
information on how ESG considerations are integrated into the
investment process can be found in the Investment Manager's Report
within the Half Year Report.
The Board
While there has been no change to the composition of the Board
during the period, on 3rd December 2020 your Board announced its
intention to appoint Lucy Macdonald as a non-executive director of
the Company with effect from 1st April 2021. Lucy Macdonald has
over 30 years' experience in the asset management industry, most
recently as CIO Global Equities at Allianz Global Investors. She
was also Lead Portfolio Manager of Brunner Investment Trust, a
global income and growth trust from 2016 until May 2020. Lucy is
also on the CFA UK investor panel. This appointment, which is being
made in anticipation of Richard Robinson stepping down from the
Board at the conclusion of the Company's 2021 AGM, will further
increase the Board's diversity of skills, experience and background
and I have no doubt Lucy will make an invaluable contribution to
your Company.
Outlook
Since the half year end to 31st March 2021, the net asset value
per share increased by a further 1.6% and the discount stood at
6.4%. We stress that your Investment Managers invest for the long
term and your Board believes that Emerging Markets continue to
provide interesting opportunities to invest in companies with good
long-term capital and dividend returns prospects.
Sarah Fromson
Chairman 6th April 2021
INVESTMENT MANAGERS' REPORT
Introduction
For the six-month period ended 31st January 2021, the Company's
total return on net assets was +23.7% (in GBP). This compares to
the benchmark (MSCI Emerging Markets Index) return of +18.6%. The
outperformance in this period has helped longer-term
performance.
Emerging markets did well during the half-year review period.
The key driver was the arrival, in quick succession, of several
proven COVID-19 vaccines, which were widely perceived as clearing
the way for an easing of the severe restrictions on commercial and
personal activities necessitated by the pandemic. Global financial
markets quickly discounted a return to more normal economic
conditions. Joe Biden's election to the US presidency also provided
impetus to equity markets, in part because it is expected to
improve trade relations between the US and China. While tensions
between these two trading giants will persist over the long-term,
relations are expected to proceed on a more predictable and less
fractious basis than during the previous US administration. Biden's
support for additional aggressive US fiscal stimulus provided a
further boost to global equity markets, including Emerging Markets,
in the closing months of 2020 and early 2021.
Spotlight on regions, stocks and sectors
Performance over the half-year period was assisted by the
portfolio's exposure to Asian economies, which have been fastest to
emerge from the coronavirus crisis. Fifty-five per cent of the
portfolio is invested in China and Taiwan, where economic activity
is largely back to normal in many sectors. The portfolio's exposure
to these two markets contributed to relative performance, as did
its exposure to India, although its South Korean exposure was a
relative drag.
One of the most significant positive contributors was the
portfolio's position in Chinese drinks company, Jiangsu Yanghe
Brewery. This is a major baiju (Chinese liquor) producer that owns
good brands in the mid- to high-end segment of the market. Yanghe
Brewery performed well during the review period, partly due to a
widespread recovery in Chinese consumer spending once the domestic
economy re-opened. Stock-specific factors were also at play, as the
company's efforts to improve its distribution channels have been
well received by the market.
Our largest position, Taiwan Semiconductor Manufacturing (TSMC),
a Taiwanese technology stock, was another notable contributor to
performance over the review period. This company is the world
leader in outsourcing semiconductor manufacturing. Surging demand
for semiconductors for 5G mobile phone networks, high performance
computing and artificial intelligence (AI) applications continue to
support this stock. In TSMC's latest earnings call, management
stressed their confidence in the company's ability to capitalise on
the growth opportunities created by this strong demand, just as it
did during 2010-2014, a previous period of high growth and heavy
capital expenditure. We remain positive on the outlook for TSMC's
earnings and cash flow growth, and we expect management to stand by
its commitment to 'a sustainable and steadily increasing cash
dividend'.
Conversely, Bid Corporation proved a drag on performance. This
is a South African-listed food distribution company, with global
operations supplying restaurants and other outlets. The business
was hit hard in 2020 when COVID-19 restrictions forced its
customers to cease or severely curtail trading. However, its
long-term returns on equity, free cash flow generation and dividend
policy underpin our view that Bid Corp remains a quality company
and we continue to hold this stock, while monitoring its recovery
potential.
Portfolio changes
During the review period, much of our portfolio activity focused
on China. We added to existing positions in several Chinese
consumer-related stocks, including Tingyi, a food and beverage
manufacturer, Topsports, a sports apparel retailer with strong ties
to international brands such as Nike and Adidas, and Yum China, a
restaurant operator with exclusive rights to run KFC and Pizza Hut
outlets in China. We believe these companies are strong business
franchises offering attractive long-term dividend streams, and all
have exposure to Chinese consumer demand, which is projected to
grow strongly over the medium-term.
The pandemic has provided us with a unique opportunity to
observe companies' behaviour; not only the ways in which they have
adapted their businesses in response to the crisis, but also how
they treat their customers, workers and other stakeholders during a
time of extreme and unprecedented pressures. This influenced our
positioning, for example, in Yum China where we were impressed by
the company's treatment of its workforce during the COVID crisis.
The company honoured commitments for scheduled hours even as stores
were closed and enhanced medical insurance for staff and their
families. Yum China also provided free meals to hospitals and
community health centres in 28 provinces across China. Examples
such as this provide a view on how management treats social
concerns, something we think can help with the long term duration
of the business.
We also increased our holding in Infosys, the Indian IT services
company that is benefiting from the acceleration in companies'
digital transformation efforts. Infosys has begun to pay-out the
bulk of its free cash flow via dividends and buybacks, and this has
increased its attractiveness as a source of investment income.
One negative development, related to US-China political
tensions, was the issuance of an Executive Order from the US which
restricts US persons from investing in certain Chinese companies
that were deemed to have military links. Following on from this we
sold our positions in both CNOOC and China Overseas Land (COLI). In
the latter case, COLI was not directly named in the list but we
re-evaluated the position in light of increased risk of ownership,
leading to the sale.
We sold Sands China, a Hong Kong listed resort and casino
operator, due to increasing concerns about its dividend paying
capacity. Revenues have been severely affected by COVID-19
restrictions and although we expect the company to begin to recover
as the hospitality and tourism sector re-opens, the pace of
recovery is likely to be hesitant and the management has adopted a
conservative approach to balance sheet leverage. These factors
suggest that dividend recovery is likely to be slow and
limited.
We also took some profits on our position in Jiangsu Yanghe
Brewery. As discussed above, this was one of the portfolio's
strongest performers over the review period. Our decision to reduce
exposure was prompted by the strong share price rally, which left
valuation levels - including the dividend yield - looking less
attractive. We believe this partial sale is a good illustration of
the discipline inherent in our investment process, which uses
yields as a guide that encourages us to hold stocks during tougher
times, while acting as a signal to re-consider position sizing
during good times.
Our engagement on Environmental, Social and Governance (ESG)
issues
We believe that sound environmental, social and governance (ESG)
practices are extremely important to the sustainability of business
models and we welcome the fact that more Emerging Market companies
are explicitly recognising this fact and improving their practices
accordingly. ESG considerations are therefore integral to our
investment process. When considering potential investments, our
analysts assess each company on a list of relevant issues,
including its carbon emissions, renewable energy and recycling
policies, employment and diversity practices and its approach to
corporate governance.
We place particular emphasis on governance and we draw a direct
link between a company's dividend policy and the quality of its
governance. In our view, a company's willingness to return cash to
shareholders is a tangible and positive governance indicator. We
have engaged with many companies on this issue over time, to
understand their motivations and capital allocation objectives. We
also discuss the magnitude of returns to shareholders and the
motivations behind any split between dividends and buybacks.
Walmex , a Mexican consumer retailer which we added to last
year, provides an example and illustrates how we apply these
insights in practice. Our assessment of Walmex's ESG credentials
was already positive before the pandemic and its response to the
COVID-19 crisis, combined with its latest sustainability
statements, added to our positive view. The company's treatment of
its workforce during the crisis has been particularly impressive.
It changed its salary payments from fortnightly to weekly, provided
transportation for employees with difficult commutes and placed
older store packers on paid leave. On the matter of sustainable
sourcing, we felt management needed to commit to clearer targets
and Walmex's latest sustainability statement took meaningful steps
in this direction. The company adopted a policy of zero tolerance
of deforestation for palm oil production, ensuring that the brands
it supplies use palm oil only from 100% sustainable sources by the
end of 2020 (compared to 85% in 2019). The company also committed
to buy 100% of its seafood from certified sustainable sources, or
those endorsed by the Fishery Improvement Project, by 2025 (versus
30% in 2019).
Outlook - Remaining cautious on dividends in the near term
The arrival of several effective vaccines and their relatively
quick roll-out around the world has transformed the economic and
financial market landscape. Economies should begin to recover, and
although the pace of recovery remains uncertain, the long term
outlook for sales, profits and cash flow have all improved.
Markets will discount this improvement before we see evidence of
a rise in corporate earnings, and the recovery in dividends will,
in turn, lag earnings increases, due to reporting timetables. We
will therefore remain relatively cautious about dividend
announcements across Emerging Markets in the near term. However,
looking further ahead, we are confident about the earnings and
dividend payment power of our portfolio companies. In our view,
Emerging Markets continue to offer the potential for long term
growth, and pay-out ratios should generally remain relatively
steady, at around 35%.
As a reminder, we receive dividends from portfolio companies in
local currencies and pay out dividends in sterling. Currency
movements therefore have an impact on revenue receipts
year-by-year. (All else being equal, a rising pound puts pressure
on revenue receipts from Emerging Markets).
Across Emerging Markets, opportunities to invest in sound
companies paying attractive dividends tend to cluster, resulting in
portfolio tilts towards certain countries and sectors. This
accounts for our significant overweight positions in Taiwan, Russia
and Mexico. On a sectoral basis, we find many appealing income
opportunities within Financials, Consumer Staples and Technology,
so we are materially overweight these three sectors. It is worth
noting that the performance of companies within these three key
sectors is not uniformly reliant on the post-pandemic recovery,
with many expected to benefit from longer-term structural
changes.
We will remain focused on our long-term aim of investing in
sound businesses, selecting stocks on the basis of their
fundamental qualities, strong balance sheets and sustainable
dividend policies. We believe this focus on quality businesses puts
the Company's portfolio in a good position to successfully navigate
current market conditions and we remain confident in its potential
to deliver dividends and capital returns to shareholders with a
long-term perspective.
Omar Negyal
Jeffrey Roskell
Isaac Thong
Investment Managers 6th April 2021
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its
interim report.
Principal Risks and Uncertainties
The principal and emerging risks and uncertainties faced by the
Company have not changed and fall into the following broad
categories: investment; strategy; financial; corporate governance
and shareholder relations; operational and cybercrime; accounting,
legal and regulatory; political and economic; environmental, social
and governance; and climate change and global pandemics.
Information on each of these areas is given in the Business Review
within the Company's Annual Report for the year ended 31st July
2020.
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 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
twelve months from the date of the approval of this half yearly
financial report. In reaching that view, the Directors have
considered the impact of the current Covid-19 pandemic on the
Company's financial and operational position. With regard to the
forthcoming continuation vote, the Directors have taken into
account the continuation vote at the 2018 AGM which was strongly
supported with 100% of votes cast in favour and expect a successful
continuation vote to be passed at the 2021 AGM. For these reasons,
they consider there is reasonable evidence to continue to adopt the
going concern basis in preparing the financial statements.
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 Reports' and gives a true and fair
view of the state of the affairs of the Company and of the assets,
liabilities, financial position and net return of the Company, as
at 31st January 2021, as required by the UK Listing Authority
Disclosure Guidance and Transparency Rules ('DTR') 4.2.4R; and
(ii) the interim management report includes a fair review of the
information required by DTR 4.2.7R and DTR 4.2.8R.
In order to provide these confirmations, and in preparing these
financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business;
and the Directors confirm that they have done so.
For and on behalf of the Board
Sarah Fromson
Chairman 6th April 2021
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31ST JANUARY 2021
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st January 2021 31st January 2020 31st July 2020
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- -------- --------- --------- -------- ---------- ---------- -------- --------- ----------
Gains/(losses)
on investments
held at fair value
through
profit or loss - 83,754 83,754 - (25,178) (25,178) - (50,303) (50,303)
Net foreign
currency
gains - 955 955 - 1,758 1,758 - 1,516 1,516
Income from
investments 6,317 - 6,317 5,578 - 5,578 16,308 - 16,308
Interest
receivable
and similar
income 23 - 23 45 - 45 66 - 66
------------------- -------- --------- --------- -------- ---------- ---------- -------- --------- ----------
Gross
return/(loss) 6,340 84,709 91,049 5,623 (23,420) (17,797) 16,374 (48,787) (32,413)
Management fee (532) (1,241) (1,773) (617) (1,439) (2,056) (1,154) (2,694) (3,848)
Other
administrative
expenses (390) - (390) (338) - (338) (649) - (649)
------------------- -------- --------- --------- -------- ---------- ---------- -------- --------- ----------
Net return/(loss)
before
finance costs
and taxation 5,418 83,468 88,886 4,668 (24,859) (20,191) 14,571 (51,481) (36,910)
Finance costs (149) (347) (496) (135) (313) (448) (270) (630) (900)
------------------- -------- --------- --------- -------- ---------- ---------- -------- --------- ----------
Net return/(loss)
before
taxation 5,269 83,121 88,390 4,533 (25,172) (20,639) 14,301 (52,111) (37,810)
Taxation (623) - (623) (519) - (519) (1,584) - (1,584)
------------------- -------- --------- --------- -------- ---------- ---------- -------- --------- ----------
Net return/(loss)
after
taxation 4,646 83,121 87,767 4,014 (25,172) (21,158) 12,717 (52,111) (39,394)
------------------- -------- --------- --------- -------- ---------- ---------- -------- --------- ----------
Return/(loss) per
share (note 3) 1.56p 27.96p 29.52p 1.35p (8.47)p (7.12)p 4.28p (17.53)p (13.25)p
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31(ST) JANUARY 2021
Called Capital
up
share Share redemption Other Capital Revenue
capital premium reserve reserve(1,2) reserves reserve(2) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------- --------- ----------- ------------- ---------- ----------- ----------
Six months ended
31st January 2021 (Unaudited)
At 31st July 2020 2,973 222,582 13 100,605 35,111 15,129 376,413
Net return - - - - 83,121 4,646 87,767
Dividends paid in the period
(note 4) - - - - - (9,215) (9,215)
------------------------------- -------- --------- ----------- ------------- ---------- ----------- ----------
At 31st January 2021 2,973 222,582 13 100,605 118,232 10,560 454,965
------------------------------- -------- --------- ----------- ------------- ---------- ----------- ----------
Six months ended
31st January 2020 (Unaudited)
At 31st July 2019 2,973 222,582 13 100,605 87,222 17,573 430,968
Net (loss)/return - - - - (25,172) 4,014 (21,158)
Dividends paid in the period
(note 4) - - - - - (9,215) (9,215)
------------------------------- -------- --------- ----------- ------------- ---------- ----------- ----------
At 31st January 2020 2,973 222,582 13 100,605 62,050 12,372 400,595
------------------------------- -------- --------- ----------- ------------- ---------- ----------- ----------
Year ended
31st July 2020 (Audited)
At 31st July 2019 2,973 222,582 13 100,605 87,222 17,573 430,968
Net (loss)/return - - - - (52,111) 12,717 (39,394)
Dividends paid in the year
(note 4) - - - - - (15,161) (15,161)
------------------------------- -------- --------- ----------- ------------- ---------- ----------- ----------
At 31st July 2020 2,973 222,582 13 100,605 35,111 15,129 376,413
------------------------------- -------- --------- ----------- ------------- ---------- ----------- ----------
(1) The balance of the share premium was cancelled on 20th
October 2010 and transferred to the 'other reserve'.
(2) These reserves form the distributable reserve of the Company
and may be used to fund distributions to investors.
STATEMENT OF FINANCIAL POSITION AT 31ST JANUARY 2021
(Unaudited) (Unaudited) (Audited)
31st January 31st January 31st July
2021 2020 2020
GBP'000 GBP'000 GBP'000
------------------------------------------- ------------- ------------- ----------
Fixed assets
Investments held at fair value through
profit or loss 476,479 426,559 402,288
------------------------------------------- ------------- ------------- ----------
Current assets
Debtors 4,147 770 1,768
Cash and cash equivalents 8,047 3,838 6,530
------------------------------------------- ------------- ------------- ----------
12,194 4,608 8,298
Current liabilities
Creditors: amounts falling due within
one year (4,578) (15,400) (18,935)
------------------------------------------- ------------- ------------- ----------
Net current assets 7,616 (10,792) (10,637)
------------------------------------------- ------------- ------------- ----------
Total assets less current liabilities 484,095 415,767 391,651
------------------------------------------- ------------- ------------- ----------
Creditors: amounts falling due after more
than one year (29,130) (15,172) (15,238)
------------------------------------------- ------------- ------------- ----------
Net assets 454,965 400,595 376,413
------------------------------------------- ------------- ------------- ----------
Capital and reserves
Called up share capital 2,973 2,973 2,973
Share premium 222,582 222,582 222,582
Capital redemption reserve 13 13 13
Other reserve 100,605 100,605 100,605
Capital reserves 118,232 62,050 35,111
Revenue reserve 10,560 12,372 15,129
------------------------------------------- ------------- ------------- ----------
Total shareholders' funds 454,965 400,595 376,413
------------------------------------------- ------------- ------------- ----------
Net asset value per share (note 5) 153.1p 134.8p 126.6p
Company registration number: 7273382
STATEMENT OF CASH FLOWS FOR THE SIX MONTHSED 31ST JANUARY
2021
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st January 31st January 31st July
2021 2020 2020
GBP'000 GBP'000 GBP'000
-------------------------------------------------- ------------- ------------- -----------
Net cash outflow from operations before
dividends
and interest (2,455) (2,892) (5,044)
Dividends received 5,650 5,844 15,008
Interest received 3 41 55
Overseas tax recovered 133 (1) 2
Interest paid (488) (452) (905)
-------------------------------------------------- ------------- ------------- -----------
Net cash inflow from operating activities 2,843 2,540 9,116
-------------------------------------------------- ------------- ------------- -----------
Purchases of investments (108,975) (39,861) (100,666)
Sales of investments 116,960 44,161 107,077
Settlement of forward currency contracts (57) (41) (33)
-------------------------------------------------- ------------- ------------- -----------
Net cash inflow from investing activities 7,928 4,259 6,378
-------------------------------------------------- ------------- ------------- -----------
Dividends paid (9,215) (9,215) (15,161)
Repayment of bank loans (15,505) - -
Drawdown of bank loans 15,469 - -
-------------------------------------------------- ------------- ------------- -----------
Net cash outflow from financing activities (9,251) (9,215) (15,161)
-------------------------------------------------- ------------- ------------- -----------
Increase/(decrease) in cash and cash equivalents 1,520 (2,416) 333
Cash and cash equivalents at start of
period 6,530 6,314 6,314
Exchange movements (3) (60) (117)
Cash and cash equivalents at end of period 8,047 3,838 6,530
-------------------------------------------------- ------------- ------------- -----------
Increase/(decrease) in cash and cash equivalents 1,520 (2,416) 333
-------------------------------------------------- ------------- ------------- -----------
Cash and cash equivalents consist of:
Cash and short term deposits 195 2,755 5,673
Cash held in JPMorgan US Dollar Liquidity
Fund 7,852 1,083 857
-------------------------------------------------- ------------- ------------- -----------
Total 8,047 3,838 6,530
-------------------------------------------------- ------------- ------------- -----------
NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHSED 31(ST)
JANUARY 2021
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 31st
July 2020 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 included 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
The financial statements are prepared 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.
FRS 104, 'Interim Financial Reporting', issued by the Financial
Reporting Council ('FRC') in March 2015, and updated in March 2018,
has been applied in preparing this condensed set of financial
statements for the six months ended 31st January 2021.
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 31st July 2020.
3. Return/(loss) per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st January 31st January 31st July
2021 2020 2020
GBP'000 GBP'000 GBP'000
----------------------------------- ------------- ------------- ------------
Return/(loss) per share is based
on the following:
Revenue return 4,646 4,014 12,717
Capital return/(loss) 83,121 (25,172) (52,111)
----------------------------------- ------------- ------------- ------------
Total return/(loss) 87,767 (21,158) (39,394)
----------------------------------- ------------- ------------- ------------
Weighted average number of shares
in issue during
the period 297,240,161 297,240,161 297,240,161
Revenue return per share 1.56p 1.35p 4.28p
Capital return/(loss) per share 27.96p (8.47)p (17.53)p
----------------------------------- ------------- ------------- ------------
Total return/(loss) per share 29.52p (7.12)p (13.25)p
----------------------------------- ------------- ------------- ------------
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st January 31st January 31st July
2021 2020 2020
GBP'000 GBP'000 GBP'000
----------------------------------------- ------------- ------------- -----------
2020 fourth interim dividend of
2.1p (2019: 2.1p) 6,242 6,242 6,242
2021 first interim dividend paid
of 1.0p (2020: 1.0p) 2,973 2,973 2,973
2020 second interim dividend paid
of 1.0p n/a n/a 2,973
2020 third interim dividend paid
of 1.0p n/a n/a 2,973
----------------------------------------- ------------- ------------- -----------
Total dividends paid in the period/year 9,215 9,215 15,161
----------------------------------------- ------------- ------------- -----------
All dividends paid and declared in the six months period to 31st
January 2021 have been funded from the revenue reserve.
A second interim dividend of 1.0p per share, amounting to
GBP2,973,000 has been declared payable on 23rd April 2021 in
respect of the year ending 31st July 2021.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
31st January 31st January 31st July
2021 2020 2020
--------------------------- ------------- ------------- ------------
Net assets (GBP'000) 454,965 400,595 376,413
Number of shares in issue 297,240,161 297,240,161 297,240,161
--------------------------- ------------- ------------- ------------
Net asset value per share 153.1p 134.8p 126.6p
--------------------------- ------------- ------------- ------------
JPMORGAN FUNDS LIMITED
6th April 2021
For further information, please contact:
Robert King
For and on behalf of
JPMorgan Funds Limited
020 7742 4000
ENDS
A copy of the 2021 Half Year Report will shortly be submitted to
the FCA's National Storage Mechanism and will be available for
inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The half year report will also shortly be available on the
Company's website at www.jpmglobalemergingmarketsincome.co.uk where
up to date information on the Company, including daily NAV and
share prices, factsheets and portfolio information can also be
found.
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END
IR BSGDSLUGDGBL
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