TIDMJCGI
RNS Number : 3616Z
JPMorgan China Growth & Income PLC
21 May 2021
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN CHINA GROWTH & INCOME PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS
ED 31ST MARCH 2021
Legal Entity Identifier: 549300S8M91P5FYONY25
Information disclosed in accordance with DTR 4.2.2
The Directors announce the Company's results for the six months
ended 31st March 2021.
CHAIRMAN'S STATEMENT
Performance
This time last year I commented on the most exceptional
investment period any of us had witnessed, which continued through
the second half of the year and led to a year of outstanding
performance. The last six months under review have again been a
period of surprises: the share price started the period at 552
pence, peaking at 860 pence on 16th February 2021 and ended the
period at 616 pence. Investing in Chinese equities and volatility
go hand-in-hand and this period was no exception. Despite these
levels of market volatility and the economic uncertainty that
persisted, due to the continuing Coronavirus epidemic, I am pleased
to report that for the six months period ended 31st March 2021, the
Company's total return on net assets rose 13.8% (with net dividends
reinvested) outperforming the benchmark, the MSCI China Index,
which delivered +3.8% (in sterling terms). The total return to
shareholders for this period was +13.4%.
The basis for this performance is explained in the Investment
Managers' report which provides a detailed commentary on the
portfolio positioning and the outlook for investing in China.
We have also seen regulatory developments in China which have
impacted certain investments in our portfolio, and these are
explained in detail in the Investment Managers' report together
with their investment views. However, this continues to remind us
of the regulatory risks to which we are exposed.
A positive development, coinciding with the beginning of the
half year, was the move of the share price from a discount into a
premium. Since early October 2020 and for the period to 31st March
2021, the shares have traded at an average 2.2% premium to Net
Asset Value and the Company has been able to meet the increased
level of demand with the issuance of shares from Treasury and newly
created shares. Further details on this are described below.
Loan Facility and Gearing
The Investment Managers have been given the flexibility by the
Board to manage the gearing tactically within a range set by the
Board of 10% net cash to 20% geared. During the period the
Company's gearing ranged from 2.6% to 12.9%, ending the half year
at 8.9% geared.
The Company has a GBP50 million loan facility with Scotiabank
that expires in July 2021. The Board is considering extending or
renewing the facility at the current time. As at 31st March 2021
GBP47.2 million of this facility was drawn down.
Our Dividend Policy
At the Annual General Meeting 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 revised dividend policy.
Shareholders are reminded that the target annual dividend of 4
per cent. of the Company's NAV on the last business day of the
preceding financial year will be announced at the start of each
financial year, to provide clarity to shareholders over the income
stream they can expect during the following 12 months, and will be
paid by way of four equal interim dividends on the first business
day in March, June, September, and December.
On 1st October 2020, the Company announced that the cum income
Net Asset Value at the close of business on 30th September 2020
(the Company's year-end) was 565.3 pence per share, up 62.4% over
the year. In line with the Company's new distribution policy the
Directors declared the first quarterly interim dividend of 5.7
pence per share. Since then, two further dividend declarations have
been made on 4th January 2021 and 1st April 2021, both of 5.7 pence
per share. With the planned final quarterly dividend of 5.7 pence
per share on 1st July, the 2021 annual dividend will be 22.8 pence
per share, an increase of over 300% compared to the previous
year.
Share Issuance during the Period
At the time of writing, the Company's issued share capital
consists of 82,077,465 Ordinary shares. The Company re-issued, at a
weighted average 3.9% premium to NAV all 5,211,777 shares held in
Treasury and issued an additional 4,162,500 new shares. The impact
of this share issuance was to increase the assets of the Company by
GBP70.3 million. During the six months reporting period the Company
did not repurchase any shares.
Board of Directors
I am pleased to announce that Joanne Wong has been appointed to
the board with effect from 1st June 2021. Joanne is a resident of
Hong Kong and has some 30 years of experience as an Asian
investment analyst. From 2002 until 2020 she worked with Franklin
Templeton Investments Global Equity Group as a portfolio manager
focusing on Asian equity portfolios with a particular
responsibility for North Asia markets. Joanne will strengthen the
Board's depth of understanding and oversight of the developments in
the Chinese economy and equity markets.
Outlook and Strategy
This half-year has demonstrated again the volatility that is an
inherent risk when investing in China. The Board continues to
believe in the long-term growth opportunities from investment in
China and our investment managers, supported by a well-resourced
research team, continue to be able to find interesting companies to
invest in that are consistent with the structural growth bias of
the investment strategy. We remain confident that our investment
strategy, combined with the depth of resources in our investment
team, will enable us to deliver superior long-term total
returns.
John Misselbrook
Chairman 21st May 2021
INVESTMENT MANAGERS' REPORT
During the six months ended 31st March 2021, the Company
delivered a total return on net assets of 13.8% (in sterling
terms), compared to the benchmark return of 3.8%. Portfolio gains
of 19.4% during Q420 were partially offset losses of 4.5% during
Q121.
Setting the scene
Global equity markets welcomed news of effective vaccines, which
provided fresh impetus to the sharp rebound in share prices which
began in Q220. Many equity markets ended 2020 at or near all-time
highs and there was a notable rotation into cyclical, financial and
value stocks that investors expect to outperform as economic
activity strengthens. However, in Q121, a commodities boom, fuelled
by rising global demand, and supply shortages, has stoked concerns
about inflation around the world and led to the rapid rise in bond
yields. This has had a significant adverse impact on equity
valuations. Share price declines were greatest amongst technology
and other growth and momentum stocks which have performed most
strongly since the onset of the pandemic, as the rotation into
cyclical and financial stocks continued.
In China, economic activity became more broadly based during the
review period, including in certain service sectors that had been
severely disrupted by the COVID-19 pandemic. Demand for Chinese
exports was particularly strong and domestic consumption remained
resilient, including during the Chinese New Year period, despite
the measures implemented to restrict domestic travel following a
COVID-19 outbreak in January. Retail sales during the holiday
period grew 28.7% compared with the same period in 2020 and were
4.9% higher than in 2019. China was the only major economy to
register positive growth in 2020, and the IMF expects the rebound
in Chinese economic activity to outpace the upturn in Western
economies significantly both this year and next. In March, China's
annual National People's Congress (NPC) session ended without
delivering any big surprises - there were no material changes to
either the government's policy stance, its growth targets (+6% GDP)
or its focus on supporting domestic consumption. Beijing has also
re-emphasised its long-term commitments to technological innovation
and self-sufficiency, industrial upgrading, and green energy.
In China, 2020 earnings results were largely in line with or
better than expectations, thanks to the improvement in domestic
demand, and Chinese equities closed the six months ended March 2021
in positive territory, despite the Q1 sell-off. As in other
markets, this sell-off was driven in part by the spike in bond
yields, as well as by concerns about tightening domestic liquidity
conditions. Also consistent with developments elsewhere, Chinese
equities experienced a distinct style rotation away from
highly-valued growth and momentum names, into more cyclical,
economically sensitive and value stocks. At the end of the period,
offshore China equities saw increased volatility arising from the
unwinding of large collateral positions in certain US-listed
Chinese equities.
Performance commentary
Stock selection was by far the most significant contributor to
returns over the review period, although sector selection had a
modestly favourable impact. Positive contributions from stock
selection in consumer discretionary, industrials and communication
services did most to enhance performance, but these gains were
partially offset by the adverse impact of the style rotation away
from several sectors which had previously outperformed, notably
information technology and healthcare. Stock selection within
information technology and healthcare also detracted.
Consumer discretionary was the largest favourable influence on
returns during the period. The company's holding in JS Global, the
world's third largest household appliances manufacturer, assisted
performance. This company's 2020 results beat expectations and its
growth prospects are favourable, thanks to its robust new product
pipeline and geographical expansion plans. A position in the
restaurant chain Jiumaojiu International also enhanced returns. Its
revenue growth and margins recovered faster than expected and it
has outperformed its restaurant peers. In addition to strong
turnover in its core Taier brand, the launch of Jiumaojiu's new hot
pot brand Song has been a success. These developments have
increased our confidence in the merits of Jiumaojiu's brand
incubation strategy and its prospects for continued growth over the
longer-term. We have held positions in both JS Global and Jiumaojiu
since their initial public offerings (IPOs).
The portfolio's overweight position in e-commerce platform
Pinduoduo added meaningfully to returns in Q420, as the company
increased its penetration into fresh products. However, these gains
were partially offset in Q121 when the company's founder stepped
down. The portfolio's structural underweight position in Alibaba
compared with the MSCI China Index contributed positively to
relative performance. Alibaba's performance suffered on concerns
about increased regulatory scrutiny of its affiliate Ant Financial
and risks that it would violate anti-trust regulations. Our
investment in electric vehicle manufacturer XPeng also contributed
positively.
In communication services, positive contributions mainly came
from Bilibili and Kuaishou Technology. We believe these are
structural beneficiaries of the 'videolization' trend in China with
strong monetization potentials.
Information technology holdings that detracted from performance
over the period included software names such as Shanghai Baosight,
Glodon, and Beijing Kingsoft Office. These companies' businesses
have performed well, but a lack of new fundamental news to drive
further gains prompted investors to take profits and invest in more
attractive opportunities in other parts of the market. Our
investment in semiconductor maker Montage Technology also detracted
from performance, as the company's short-term earnings were
affected by the memory inventory cycles. Within healthcare, medical
device names, including Venus Medtech and Kangji Medical, were the
largest performance detractors due to general concerns of price
cuts upon centralized procurement.
The use of gearing enhanced performance, as did currency
effects.
Positioning
Our bottom-up stock selection continues to reflect the
structural growth opportunities we see in the healthcare,
technology and consumer sectors. Within the healthcare sector,
notable positions include Wuxi Biologics and Shenzhen Mindray,
which we believe are set to benefit from increased demand for
medical products and services in the wake of the pandemic. We also
hold Venus Medtech, a leading cardiovascular-focused medtech
company with positive growth prospects. In technology, our
preferred software names are Kingdee International and Beijing
Kingsoft Office; along with hardware name Montage Technology and
electric vehicle-related stocks Contemporary Amperex and Yunnan New
Energy Material. In consumer, we have eCommerce names Alibaba,
Meituan Dianping and Pinduoduo as the top holdings, along with
social and online entertainment names Tencent, NetEase and
Bilibili.
The Q1 sell-off created some great opportunities for us to add
new names to the portfolio, and increase our exposure to some
favoured names at more attractive valuations. Portfolio changes
during the review period included an increase in the portfolio's
exposure to semiconductor manufacturers, including StarPower and
Maxscend. These companies are beneficiaries of the global shortage
of semiconductors, which is encouraging Chinese companies to try to
increase their self-sufficiency in these products by replacing
imported components with domestically-produced alternatives. We
also continued to add to our solar energy holdings, given this
sector's cost competitiveness and China's long-term commitment to
carbon neutrality. Specifically, we initiated a new position in
Xinyi Solar, the global leader in solar glass, Tongwei, China's
leading polysilicon producer, and increased our position in Longi
Green Energy Technology.
In the consumer sector, we used the decline in Alibaba's share
price to add to our holding, as we believe the market is
excessively pessimistic about the company's long-term growth
prospects. We also added to our holdings in gaming company Bilibili
in response to its efforts to expand its target audience. To fund
these acquisitions, we took profits in several consumer names that
had performed strongly, but which we believe offer little further
short-term upside, including winemaker and distiller Kweichow
Moutai, home appliance manufacturer Midea and condiment maker
Foshan Haitian.
Finally, within financials, we added to Ping An Insurance. This
stock is attractively valued and we expect the company to benefit
from the stable domestic rate environment. We trimmed the
portfolio's real estate exposure, following the tightening in
government regulation of property developers' leverage.
Regulatory Developments in China
China's State Administration of Market Regulators (SAMR)
recently concluded its investigation of Alibaba and imposed a
record fine of Rmb18.2bn (USD 2.75 billion) or 4% of 2019 domestic
revenues for violations of the Anti-Monopoly Law. Despite
speculation that the company could be broken up, the investigation
affirmed Alibaba's business model as a platform ecosystem.
Consequently, we continue to believe the risk for other large
Chinese internet companies remains remote for now. Alibaba is
devoting more resources to support merchants and therefore we may
see incrementally lower profits and higher costs, but this paves
the way for more sustainable growth. Overall, we believe Alibaba
continues to offer the most comprehensive digital infrastructure to
enable the digitalization of enterprises in China over the next
decade.
We await further details of the restructuring of Ant Financial.
M&A activity is under greater scrutiny due to the Anti-Monopoly
Law and we believe it is likely that Tencent and Meituan will also
be reviewed by the SAMR. Regulators are also focused on data
privacy and how big tech companies collect, use and share data. The
industry is clearly aware of this and is investing accordingly. It
is clear that regulations for China internet companies, especially
the larger firms, will continue to tighten in 2021. That said, the
China government recognizes the contribution the big internet
companies have made and we believe it will strike a balance between
better regulation and growth.
Outlook
The global economy is on the road to recovery, evidenced in part
by manufacturing survey data reflecting upbeat sentiment in many
countries. President Biden's massive stimulus plan has added
significantly to US economic momentum. We expect China to continue
to lead the recovery, supported by strengthening overseas demand
and the rollout of US fiscal stimulus. We are, however, mindful of
the associated increase in inflation risks. Although the Fed
appears sanguine on the outlook for longer-term inflation, we sense
that on average, committee members have shifted to a slightly more
hawkish stance. In China, policy makers are likely to continue to
support economic activity in the short-term. But they will view
inflation and asset price bubbles as risk factors, and we expect a
gradual normalisation in China's domestic stimulus policies over
time. The government's long-term focus on better quality growth was
recently reaffirmed by the National People's Congress.
In summary, we remain optimistic about the outlook for Chinese
equities. The country's robust economic outlook, combined with the
many opportunities created by structural change, especially in
technology and healthcare, will continue to drive positive and
sustained returns in Chinese equities over the long-term, and
attract increasing interest from foreign investors.
Howard Wang
Rebecca Jiang
Shumin Huang
Investment Team 21st May 2021
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its
half year report.
Principal and Emerging Risks and Uncertainties
We have seen specific instances of regulatory risk in China
during the last six months which have been described in the
Investment Managers' Report. With the exception of this, the
principal and emerging risks and uncertainties faced by the Company
have not changed during the period and fall into the following
broad categories: geopolitical; investment underperformance;
strategy and business management; loss of Investment Team or
investment Manager; share price discount; governance; legal and
regulatory; corporate governance and shareholder relations;
operational risk and cybercrime; financial; global pandemic; and
climate change. Information on each of these areas is given in the
Business Review within the Annual report and Financial Statements
for the year ended 30th September 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
12 months from the date of the approval of this half yearly
financial report. For these reasons, they consider there is
reasonable evidence to continue to adopt the going concern basis in
preparing the accounts.
Directors' Responsibilities
The Board of Directors confirms that, to the best of its
knowledge:
(i) t he condensed set of financial statements contained within
the interim financial report has been prepared in accordance with
FRS 104 'Interim Financial Reporting' 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 March 2021, as required by the UK Listing Authority
Disclosure Guidance and Transparency Rule ('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 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
John Misselbrook
Chairman 21st May 2021
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31ST MARCH 2021
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st March 2021 31st March 2020 30st September 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 on investments
held
at fair value
through
profit or loss - 46,278 46,278 - 22,325 22,325 - 164,024 164,024
Net foreign currency
gains/(losses) - 2,352 2,352 - (221) (221) - 1,492 1,492
Income from
investments 330 - 330 355 - 355 3,401 - 3,401
Interest receivable
and similar
income(1) 326 - 326 90 - 90 220 - 220
----------------------- -------- --------- --------- -------- -------- --------- -------- --------- ---------
Gross return 656 48,630 49,286 445 22,104 22,549 3,621 165,516 169,137
Management fee (544) (1,632) (2,176) (299) (897) (1,196) (683) (2,050) (2,733)
Other administrative
expenses (243) - (243) (224) - (224) (438) - (438)
----------------------- -------- --------- --------- -------- -------- --------- -------- --------- ---------
Net (loss)/return
before
finance costs
and taxation (131) 46,998 46,867 (78) 21,207 21,129 2,500 163,466 165,966
Finance costs (102) (307) (409) (99) (293) (392) (188) (564) (752)
----------------------- -------- --------- --------- -------- -------- --------- -------- --------- ---------
Net (loss)/return
before
taxation (233) 46,691 46,458 (177) 20,914 20,737 2,312 162,902 165,214
Taxation (14) - (14) - - - (166) - (166)
----------------------- -------- --------- --------- -------- -------- --------- -------- --------- ---------
Net (loss)/return
after
taxation (247) 46,691 46,444 (177) 20,914 20,737 2,146 162,902 165,048
----------------------- -------- --------- --------- -------- -------- --------- -------- --------- ---------
(Loss)/return
per share (note
3) (0.32)p 61.23p 60.91p (0.24)p 28.77p 28.53p 2.95p 224.06p 227.01p
(1) Includes income from securities lending.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31ST MARCH 2021
Called Exercised Capital
up
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
Six months ended
31st
March 2021
(Unaudited)
At 30th September
2020 19,481 13,321 3 581 37,392 340,185 - 410,963
Issue of Ordinary
shares 972 29,920 - - - - - 30,892
Issue of shares
from
Treasury - 28,613 - - - 9,007 - 37,620
Net return/(loss) - - - - - 46,691 (247) 46,444
Dividends paid in
the period (note
4) - - - - - (8,510) - (8,510)
-------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ---------
At 31st March 2021 20,453 71,854 3 581 37,392 387,373 (247) 517,409
-------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ---------
Six months ended
31st
March 2020
(Unaudited)
At 30th September
2019 19,481 13,321 3 581 37,392 179,059 3,276 253,113
Net return/(loss) - - - - - 20,914 (177) 20,737
Dividend paid in
the
period (note 4) - - - - - - (1,818) (1,818)
-------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ---------
At 31st March 2020 19,481 13,321 3 581 37,392 199,973 1,281 272,032
-------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ---------
Year ended 30th
September
2020 (Audited)
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
Dividends paid in
the year (note 4) - - - - - (1,776) (5,422) (7,198)
-------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ---------
At 30th September
2020 19,481 13,321 3 581 37,392 340,185 - 410,963
-------------------- -------- -------- ---------- ----------- ------------- ------------ ----------- ---------
(1) Created during the year ended 30th September 1999, following
cancellation of the share premium account.
(2) These reserves form the distributable reserves of the
Company and may be used to fund distribution to investors.
STATEMENT OF FINANCIAL POSITION
AT 31ST MARCH 2021
(Unaudited) (Unaudited) (Audited)
31st March 31st March 30th September
2021 2020 2020
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------ ------------ ---------------
Fixed assets
Investments held at fair value through
profit or loss 563,208 311,495 454,645
---------------------------------------- ------------ ------------ ---------------
Current assets
Debtors 1,106 54 819
Cash and cash equivalents 1,822 - 343
---------------------------------------- ------------ ------------ ---------------
2,928 54 1,162
Current liabilities
Creditors : amounts falling due within
one year (48,727) (39,517) (44,844)
---------------------------------------- ------------ ------------ ---------------
Net current liabilities (45,799) (39,463) (43,682)
---------------------------------------- ------------ ------------ ---------------
Total assets less current liabilities 517,409 272,032 410,963
---------------------------------------- ------------ ------------ ---------------
Net assets 517,409 272,032 410,963
---------------------------------------- ------------ ------------ ---------------
Capital and reserves
Called up share capital 20,453 19,481 19,481
Share premium 71,854 13,321 13,321
Exercised warrant reserve 3 3 3
Capital redemption reserve 581 581 581
Other reserve 37,392 37,392 37,392
Capital reserves 387,373 199,973 340,185
Revenue reserve (247) 1,281 -
---------------------------------------- ------------ ------------ ---------------
Total shareholders' funds 517,409 272,032 410,963
---------------------------------------- ------------ ------------ ---------------
Net asset value per share (note 5) 632.5p 374.2p 565.3p
---------------------------------------- ------------ ------------ ---------------
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31ST MARCH 2021
(Audited)
(Unaudited) (Unaudited) Year ended
Six months Six months 30th September
ended 31st ended 31st 2020
March 2021 March 2020
GBP'000 GBP'000 GBP'000
Net cash outflow from operations before
dividends
and interest (2,710) (1,309) (2,885)
Dividends received 532 569 3,248
Interest received 7 11 18
Overseas tax recovered - - 1
Interest paid (402) (382) (700)
-------------------------------------------- ------------ ------------ ---------------
Net cash outflow from operating activities (2,573) (1,111) (318)
-------------------------------------------- ------------ ------------ ---------------
Purchases of investments (203,840) (65,936) (174,168)
Sales of investments 141,306 53,917 161,070
Settlement of foreign currency contracts 24 30 33
-------------------------------------------- ------------ ------------ ---------------
Net cash outflow from investing activities (62,510) (11,989) (13,065)
-------------------------------------------- ------------ ------------ ---------------
Dividends paid (8,510) (1,818) (7,198)
Issue of Ordinary shares 30,892 - -
Reissue of shares from Treasury 37,620 - -
Drawdown of bank loans 6,800 11,186 17,895
Repayment of bank loans - - (67)
-------------------------------------------- ------------ ------------ ---------------
Net cash inflow from financing activities 66,802 9,368 10,630
-------------------------------------------- ------------ ------------ ---------------
Increase/(decrease) in cash and cash
equivalents 1,719 (3,732) (2,753)
-------------------------------------------- ------------ ------------ ---------------
Cash and cash equivalents at start
of period 343 3,134 3,134
Exchange movements (240) 32 (38)
Cash and cash equivalents at end of
period 1,822 (566) 343
-------------------------------------------- ------------ ------------ ---------------
Increase/(decrease) in cash and cash
equivalents 1,719 (3,732) (2,753)
-------------------------------------------- ------------ ------------ ---------------
Cash and cash equivalents consist
of:
Cash and short term deposits 372 (566) 343
Cash held in JPMorgan US Dollar Liquidity 1,450 - -
Fund
-------------------------------------------- ------------ ------------ ---------------
Total 1,822 (566) 343
-------------------------------------------- ------------ ------------ ---------------
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 31(ST) MARCH 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 30th
September 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, has been applied in
preparing this condensed set of financial statements for the six
months ended 31st March 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 30th September 2020.
3. Return/(loss) per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st March 31st March 30th September
2021 2020 2020
GBP'000 GBP'000 GBP'000
--------------------------------- ------------ ------------ ---------------
(Loss)/Return per share is
based on the following:
Revenue (loss)/return (247) (177) 2,146
Capital return 46,691 20,914 162,902
--------------------------------- ------------ ------------ ---------------
Total return 46,444 20,737 165,048
--------------------------------- ------------ ------------ ---------------
Weighted average number of
shares
in issue during the period/year 76,252,710 72,703,188 72,703,188
Revenue (loss)/return per share (0.32)p (0.24)p 2.95p
Capital return per share 61.23p 28.77p 224.06p
--------------------------------- ------------ ------------ ---------------
Total return per share 60.91p 28.53p 227.01p
--------------------------------- ------------ ------------ ---------------
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st March 31st March 30th September
2021 2020 2020
GBP'000 GBP'000 GBP'000
2019 final dividend of 2.5p
per share - 1,818 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
------------------------------- ------------ ------------ ---------------
Total dividends paid 8,510 1,818 7,198
------------------------------- ------------ ------------ ---------------
A third quarterly dividend of 5.7p has been declared for payment
on 1st June 2021 for the financial year ending 30th September
2021.
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 Six months Year ended
ended ended
31st March 31st March 30th September
2021 2020 2020
--------------------------- ------------ ------------ ---------------
Net assets (GBP'000) 517,409 272,032 410,963
Number of shares in issue 81,804,965 72,703,188 72,703,188
--------------------------- ------------ ------------ ---------------
Net asset value per share 632.5 374.2p 565.3p
--------------------------- ------------ ------------ ---------------
21st May 2021
For further information, please contact:
Divya Amin
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.
JPMORGAN FUNDS LIMITED
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 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.
This information is provided by RNS, the news service of the
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END
IR FLFLTETIIFIL
(END) Dow Jones Newswires
May 21, 2021 02:00 ET (06:00 GMT)
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