TIDMJPGI
RNS Number : 2175R
JPMorgan Global Growth & Income PLC
20 September 2017
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL GROWTH & INCOME PLC
FINAL RESULTS FOR THE YEARED 30TH JUNE 2017
Legal Entity Identifier: 5493007C3I0O5PJKR078
Information disclosed in accordance with DTR 4.2.2
CHAIRMAN'S STATEMENT
I am pleased to report on a very rewarding year for shareholders
of the Company. Global equity markets were strong, leading to a
rise in our benchmark - the MSCI AC World Index expressed in
sterling terms - of 22.2%. Against this positive background our
Investment Manager, Jeroen Huysinga, was able to add further to
returns through excellent stock selection, with the result that the
return on net assets was 29.0%.
Finally, the discount at which the share price trades relative
to the net assets narrowed sharply from 14.4% to 2.0%. I discuss
further below this very encouraging development. The combination of
all these factors meant that the total return to shareholders over
the year was 51.2%.
Performance attribution for the year ended 30th June 2017
% %
-------------------------------------- ----- -----
Contributions to total returns
-------------------------------------- ----- -----
Benchmark return 22.2
-------------------------------------- ----- -----
Asset allocation -0.1
-------------------------------------- ----- -----
Stock selection 7.2
-------------------------------------- ----- -----
Currency effect 0.2
-------------------------------------- ----- -----
Gearing/cash 0.9
-------------------------------------- ----- -----
Investment Manager contribution 8.2
-------------------------------------- ----- -----
Portfolio total return 30.4
-------------------------------------- ----- -----
Management fee/other expenses -0.6
-------------------------------------- ----- -----
Performance fee -0.8
-------------------------------------- ----- -----
Net asset value total return - prior
-------------------------------------- ----- -----
to structural effects 29.0
-------------------------------------- ----- -----
Structural effects
-------------------------------------- ----- -----
Share buy-backs/issuance 0.0
-------------------------------------- ----- -----
Net asset value total return 29.0
-------------------------------------- ----- -----
Share price total return 51.2
-------------------------------------- ----- -----
Source: JPMAM and Morningstar.
All figures are on a total return basis.
Performance attribution analyses how the Company achieved its
recorded performance relative to its benchmark index.
A glossary of terms and alternative performance measures is
provided on page 68 of the Annual Report.
Distribution and Dividends Policy
The Company adopted a revised distribution policy in July 2016
under which it intends to pay dividends totalling at least 4% of
the net asset value of the Company as at the end of the preceding
financial year.
The Board announced on 4th July 2017 that, in relation to the
year commencing 1st July 2017, the Company intends to pay dividends
totalling 12.16p per share, which represents a yield of 4.01% of
the unaudited net asset value as at the 30th June 2017. It is
expected that such dividends will be paid by way of four equal
distributions, with the first distribution for the financial year
ending 30th June 2018 of 3.04p per share for the period to 30th
September 2017 being paid on 6th October 2017 to shareholders on
the register on 8th September 2017.
The target dividends for the year commencing 1st July 2017
represents an increase of 24.1% over the total dividends of 9.8p
per share payable for the prior year, reflecting the strong net
asset value growth in the Company.
As a result of the revised dividend policy last year, the
Company has been reclassified to the Global Equity Income sector by
the Association of Investment Companies. It is important for
investors to note that there has been no change in the Company's
investment policy, nor the Investment Manager's approach to
investment or the current benchmark as a result of this
reclassification.
Fund Manager
We are delighted to note that the fund management has been
enhanced by the hire of new personnel. Tim Woodhouse has joined the
International Research Driven Process team and will work alongside
Jeroen Huysinga who continues to be the lead portfolio manager for
the Company. There are no changes to the investment process or
approach.
Share Issuance and Repurchases
During the year, the Company did not issue or repurchase any
shares. As noted above, the discount at which the Company's shares
trade relative to net assets has narrowed sharply in the past year.
The Board believes that this reflects a combination of the new
distribution policy and the strong performance of the Investment
Manager. The Company has a policy of maintaining the discount
around or below 5%, but with the discount narrowing steadily the
Company did not need to repurchase shares. At the year-end the
discount stood at 2.0% and at the time of this report it stands at
a premium of 0.1%.
As a consequence of the share price now standing at a premium,
since the year end 175,000 shares have been reissued from Treasury
for a total consideration of GBP557,000.
A resolution to renew the authority to permit the Company to
continue to repurchase shares will be proposed at the AGM in
October 2017. Resolutions renewing the authorities to issue shares
from Treasury and to issue new shares, in both cases at a premium
to net asset value, and to disapply pre-emption rights over such
issues, will also be proposed at the AGM. Any shares held in
Treasury will only be re-issued at a premium to net asset
value.
Ongoing Charges
The Board continues to believe that the Company's ongoing
charges ratio (excluding performance fees) of 0.57% for the year
ended 30th June 2017 (2016: 0.64%) is competitive when compared to
other trusts and savings products such as open ended funds actively
investing in global equities. No performance fee is actually
payable for the year ended 30th June 2017 (2016: Nil)
notwithstanding the excellent performance this year because fees
are calculated and payable over a four year period. There is an
accrual included in the financial statements in respect of
performance fees that could become payable in future years. The
Board continues actively to monitor the Company's management fee
arrangements to ensure they remain structured in the interests of
shareholders.
Gearing
Gearing is regularly discussed between the Board and the
Investment Manager. A borrowing facility of GBP25 million with
National Australia Bank is in place until July 2018. This facility
is flexible and can be used tactically as investment opportunities
present themselves. The GBP25 million facility was fully drawn down
at the year-end when gearing was 6.3%. Since the year end, the
Investment Manager has reduced gearing to 1.8%.
Currency Hedging
The Company continues its passive currency hedging strategy
(implemented in late 2008) that aims to make stock selection the
predominant driver of overall portfolio performance relative to the
benchmark, the MSCI World All Countries Index (in sterling terms).
This is a risk reduction measure, designed to eliminate most of the
differences between the portfolio's currency exposure and that of
the Company's benchmark. As a result the returns derived from, and
the portfolio's exposure to currencies may differ materially from
that of the Company's competitors, who generally do not undertake
such a strategy.
The Board
There have been no changes to the composition of the Board
during the year. Following the Board's annual evaluation by the
Nomination Committee, it is felt that given the recent refreshment
of the Board, its current composition and its size are all
sufficient at the present time and no changes are anticipated over
the next 12 months.
The Board supports the annual re-election for all Directors, as
recommended by the UK Corporate Governance Code, and therefore all
Directors will stand for re-election at the forthcoming AGM.
Annual General Meeting
My fellow Directors and I invite you to attend the Company's
Annual General Meeting which will be held at 60 Victoria
Embankment, London EC4Y 0JP on Wednesday 25th October 2017 at 2.30
p.m. An investment presentation will be made at the meeting by
Jeroen Huysinga. If you have any detailed or technical questions,
please submit these in advance of the meeting in writing, or via
the Company's website, to the Company Secretary whose contact
details are shown on page 71 of the Annual Report. Shareholders who
are unable to attend the AGM in person are encouraged to use their
proxy votes.
There will be an opportunity for shareholders to meet the
Directors and the Investment Manager following the AGM. I hope to
have the pleasure of meeting you then.
Outlook
After such a strong year for the Company, it is natural to sound
a word of caution. Although global economies are generally
performing well, with an encouraging rebound in continental Europe,
the further rally in equity markets in the past year has taken
valuations to quite extended levels. At the same time, the
direction of US economic and financial policy becomes ever more
uncertain under the Trump presidency while, closer to home, Britain
and the European Union have to negotiate the complexities of
Brexit.
However, for the Company there are in my view at least two
grounds for optimism. We are seeing renewed interest in the
Company's shares, as evidenced by the elimination of the discount,
with higher daily turnover and a broadening investor base. At the
same time the Board has continued confidence in the ability of our
Investment Manager, Jeroen Huysinga, to find attractively priced
stocks, backed as he is by the worldwide research resources of
JPMorgan.
Nigel Wightman
Chairman
19th September 2017
INVESTMENT MANAGER'S REPORT
Market Environment
The MSCI All Countries World Index gained 22% in sterling terms
over the 12 months to the end of June. After the initial post
referendum fall, sterling's subsequent decline relative to the US
dollar was quite mild - although it remains at multi-decade lows.
While markets moved steadily upwards over the period, the stocks
and sectors leading the market chopped and changed through the
year. In the second half of 2016 we saw a sharp reversal of
previous trends, with markets shifting towards a more risk-on,
pro-cyclical, anti-bond proxy environment. This change started even
before the Trump victory, which with its promised tax cuts,
deregulation and infrastructure spending added to the market's
optimism. Deflationary fears ebbed, the use by central banks of
unconventional monetary policy 'peaked', fiscal drag started to
reverse and government bond markets were weak. Global economic
growth became stronger and more synchronised than over the previous
five years, the performance of the Chinese economy defied the
sceptics and Europe overcame political concerns and started to
enjoy economic growth.
As we moved into 2017, sentiment became more cautious about
President Trump's administration and upward momentum was driven by
a very concentrated, small group of growth stocks. Inflation rates
globally remained stubbornly low yet growth rates, with the
exception of the UK, were robust. There was a point earlier in 2017
at which commentators again became somewhat concerned about the
outlook for the Chinese economy, but this concern has been muted,
so far. Commodity prices were mixed: the crude oil remained
subdued, principally given supply-based concerns, but other
commodities such as iron ore, copper and aluminium were strong on
the back of cyclical economic strength (particularly in China) and,
in some cases, optimism around cuts in supply.
Portfolio Review
During the 12 months to June 2017 your Company significantly
outperformed the benchmark. Given the reversal in market leadership
described above, the environment was constructive for our
investment strategy which was pro-cyclically positioned with a bias
towards higher beta (more volatile) stocks. Many of the investments
that had previously detracted from performance rebounded strongly,
notably our holdings in banks and basic industries. We held on to,
or added to, a number of stocks that had previously lagged behind,
convinced by compelling valuations underpinned by strong long-term
insights from our experienced team of research analysts. Outokumpu,
for example, a Finnish stainless steel company undergoing
significant restructuring led by an impressive new management team,
was overlooked by the market in previous years. Despite the shares
rising 88% over the period, we still believe the comprehensive
turnaround at Outokumpu is not yet properly reflected in the stock
price. Our holdings in a number of US banks proved to be very
rewarding, including Morgan Stanley and Bank of America which each
saw their share prices gain more than 70%. Again, marking a
reversal of trends in previous periods, our underweight position in
utilities was also rewarded as these performed poorly.
Other companies which contributed to performance included
Suzuki, Royal Caribbean Cruises and UnitedHealth Group, the US
healthcare insurance provider. Last year I commented on our
addition of Suzuki to the portfolio given the auto company's
exposure to demand in India. We have recently sold the holding in
the company which saw a nearly 100% return over the period.
Our low exposure to technology detracted from performance and
this was particularly the case in the first half of 2017. We were
underweight the eponymous 'FAANG' stocks (Facebook, Amazon, Apple,
Netflix, Google) - only owning Google. Clearly these are excellent
businesses but, in aggregate, we consider them to be expensive, to
be 'crowded' by a surge in investors and to represent a form of
momentum investing which in our experience frequently leads to
derating and disappointment.
Portfolio positioning and outlook
Our focus remains on company-specific valuation signals derived
from intensive company research and long term cash flow models and
we remain vigilant in ensuring that our analyst estimates are as
reflective as possible of the changing environment. We have not
made any significant recent changes to the overall shape of the
portfolio which remains pro-cyclically positioned with a bias
towards more volatile (higher 'beta') stocks. Regionally, our
bottom-up process continues to result in large positions in Europe
and the UK whereas North America is an area in which we are
underweight. In the latter region excessive valuations still
prevents us from investing in 'bond equivalent' and many very large
stocks.
On a sector basis we have taken profits in some areas that have
performed well, such as technology-semi-conductors and added to
areas such as retail. Retail is now our largest overweight, perhaps
somewhat controversially in the wake of perceived industry damage
inflicted by Amazon. We have used this short-term weakness to buy
the likes of O'Reilly because despite Amazon moving into the auto
parts business, O'Reilly has some significant advantages that will
in our view make it tough for Amazon to compete. O'Reilly has
undervalued advantages in terms of the efficiency and breadth of
its distribution system, the depth of its inventory and the
reassuring presence of a high-touch high-service person behind a
counter. Similarly, TJX, again thought to be at risk from Amazon,
operates a unique business model (low-price retailing) which is
very hard to replicate online.
We have also added to an existing holding in Ping An, the
Chinese insurer. Ping An's dominant position serving China's mass
affluent/high net worth individuals should allow them to outgrow
their key competitors in life insurance and property & casualty
insurance. China's demographics, Government policy and low level of
insurance penetration makes this an attractive sector. While we
remain underweight in emerging market companies, a number of the
developed market-listed companies we own have significant indirect
exposure to growth in emerging markets.
Jeroen Huysinga
Investment Manager
19th September 2017
PRINCIPAL RISKS
The Directors confirm that they have carried out a robust
assessment of the principal risks facing the Company, including
those that would threaten its business model, future performance,
solvency or liquidity.
With the assistance of the Manager, the Board has drawn up a
risk matrix, which identifies the key risks to the Company. In
assessing the risks and how they can be mitigated, the Board has
given particular attention to those risks that might threaten the
viability of the Company.
These key risks fall broadly under the following categories:
-- Investment and Strategy: An inappropriate investment
strategy, for example asset allocation or the level of gearing, may
lead to under-performance against the Company's benchmark index and
peer companies, resulting in the Company's shares trading on a
wider discount. The Board manages these risks by diversification of
investments through its investment restrictions and guidelines
which are monitored and reported by the Manager. The Manager
provides the Directors with timely and accurate management
information, including performance data and attribution analyses,
revenue estimates, liquidity reports and shareholder analyses. The
Board monitors the implementation and results of the investment
process with the Investment Manager, who attends all Board
meetings, and reviews data which show statistical measures of the
Company's risk profile. The Investment Manager employs the
Company's gearing within a strategic range set by the Board. The
Board may hold a separate meeting devoted to strategy each
year.
-- Market: Market risk arises from uncertainty about the future
prices of the Company's investments. It represents the potential
loss that the Company might suffer through holding investments in
the face of negative market movements. The Board considers asset
allocation, stock selection and levels of gearing on a regular
basis and has set investment restrictions and guidelines, which are
monitored and reported on by the Manager. The Board monitors the
implementation and results of the investment process with the
Manager.
-- Accounting, Legal and Regulatory: In order to qualify as an
investment trust, the Company must comply with Section 1158 of the
Corporation Tax Act 2010 ('Section 1158'). Details of the Company's
approval are given under 'Structure of the Company' within the
Business Review section above. Were the Company to breach Section
1158, it might lose investment trust status and, as a consequence,
gains within the Company's portfolio could be subject to Capital
Gains Tax. The Section 1158 qualification criteria are continually
monitored by the Manager and the results reported to the Board each
month. The Company must also comply with the provisions of The
Companies Act 2006 and, since its shares are listed on the London
Stock Exchange, the UKLA Listing Rules and Disclosure, Guidance and
Transparency Rules ('DTRs'). A breach of the Companies Act 2006
could result in the Company and/or the Directors being fined or the
subject of criminal proceedings. Breach of the UKLA Listing Rules
or DTRs could result in the Company's shares being suspended from
listing, which in turn would breach Section 1158. The Board relies
on the services of its Company Secretary to ensure compliance with
the
Companies Acts and The UKLA Listing Rules and DTRs.
-- Corporate Governance and Shareholder Relations: Details of
the Company's compliance with Corporate Governance best practice,
including information on relations with shareholders, are set out
in the Corporate Governance report on pages 26 to 30 of the Annual
Report.
-- Operational: Loss of key staff by the Manager, such as the
Investment Manager, could affect the performance of the Company.
Disruption to, or failure of, the Manager 's accounting, dealing or
payments systems or the depositary's or custodian's records could
prevent accurate reporting and monitoring of the Company's
financial position. On 1st July 2014, the Company appointed BNY
Mellon Trust & Depositary (UK) Limited to act as the
depositary, responsible for overseeing the operations of the
custodian, JPMorgan Chase Bank, N.A., and the Company's cash flows.
Details of how the Board monitors the services provided by the
Manager and its associates and the key elements designed to provide
effective internal control are included with the Risk Management
and Internal Control section of the Corporate Governance report on
pages 28 and 29 of the Annual Report. The threat of cyber attack,
in all its guises, is regarded as at least as important as more
traditional physical threats to business continuity and security.
The Company benefits directly or indirectly from all elements of
JPMorgan's Cyber Security programme. The information technology
controls around the physical security of JPMorgan's data centres,
security of its networks and security of its trading applications
are tested by independent auditors and reported every six months
against the AAF Standard.
-- Going concern: Pursuant to the Sharman Report, Boards are now
advised to consider going concern as a potential risk, whether or
not there is an apparent issue arising in relation thereto. Going
concern is considered rigorously on an ongoing basis and the
Board's statement on going concern is detailed on page 28 of the
Annual Report.
-- Financial: The financial risks faced by the Company include
market price risk, interest rate risk, liability risk and credit
risk. Further details are disclosed in note 22 on pages 55 to 61 of
the Annual Report.
RELATED PARTY TRANSACTIONS
Details of the management contract are set out in the Directors'
Report on page 24 of the Annual Report. The management fee payable
to the Manager for the year was GBP1,498,000 (2016: GBP1,186,000)
of which GBPnil (2016: GBPnil) was outstanding at the year end.
A performance fee charge of GBP2,347,000 (2016: GBP1,672,000
writeback) is applicable for the year and GBPnil (2016: GBPnil) is
immediately payable. An amount GBP2,347,000 (2016: GBPnil) is
carried forward and will either be paid or absorbed by
underperformance in subsequent years.
During the year GBP75,000 (2016: GBP101,000) was payable to the
Manager for administration of savings scheme products, of which
GBP21,000 (2016: GBPnil) was outstanding at the year end.
Included in administration expenses in note 6 on page 47 of the
Annual Report are safe custody fees amounting to GBP23,000 (2016:
GBP19,000) payable to JPMorgan Chase Bank, N.A. of which GBP6,000
(2016: GBP4,000) was outstanding at the year end.
The Manager may carry out some of its dealing transactions
through group subsidiaries. These transactions are carried out at
arm's length. Commission amounting to GBP17,000 (2016: GBP25,000)
was payable to JPMorgan Securities Limited for the year of which
GBPnil (2016: GBPnil) was outstanding at the year end.
Handling charges on dealing transactions amounting to GBP29,000
(2016: GBP26,000) were payable to JPMorgan Chase Bank, N.A. during
the year of which GBP10,000 (2016: GBP5,000) was outstanding at the
year end.
The Company holds investments in trusts managed by JPMF. At 30th
June 2017 these were valued at GBP5.9 million (2016: GBP4.8
million) and represented 1.5% (2016: 1.6%) of the Company's
investment portfolio. During the year, the Company made GBPnil
(2016: GBPnil) purchases of these investments and GBP69,000 (2016:
GBPnil) sales. Income amounting to GBPnil (2016: GBPnil) was
receivable from these investments during the year of which GBPnil
(2016: GBPnil) was outstanding at the year end.
The Company also holds cash in the JPMorgan Sterling Liquidity
Fund, which is managed by JPMF. At the year end this was valued at
GBP5.8 million (2016: GBP11.2 million). Interest amounting to
GBP45,000 (2016: GBP22,000) was receivable during the year of which
GBPnil (2016: GBPnil) was outstanding at the year end.
Fees amounting to GBP20,000 (2016: GBP65,000) were receivable
from stock lending transactions during the year. JPMorgan Chase
Bank, N.A. commissions in respect of such transactions amounted to
GBP3,000 (2016: GBP11,000).
At the year end, total cash of GBP287,000 (2016: GBP256,000) was
held with JPMorgan Chase Bank, N.A. A net amount of interest of
GBP309 (2016: GBP1,664) was receivable by the Company during the
year of which GBP13 (2016: GBPnil) was outstanding at the year
end.
Full details of Directors' remuneration and shareholdings can be
found on page 33 and in note 6 on page 47 of the Annual Report.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the annual report
and the financial statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law, the Directors
have elected to prepare the financial statements in accordance with
United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law). Under Company law
the Directors must not approve the financial statements unless they
are satisfied that, taken as a whole, the annual report and
financial statements are fair, balanced and understandable, provide
the information necessary for shareholders to assess the Company's
performance, business model and strategy and that they give a true
and fair view of the state of affairs of the Company and of the
total return or loss of the Company for that period. In 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 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.
The Directors confirm that they have done so.
The Directors are responsible for keeping proper accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and to enable them to ensure that
the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The financial statements are published on the
www.jpmglobalgrowthandincome.co.uk website, which is maintained by
the Company's Manager. The maintenance and integrity of the website
maintained by the Manager is, so far as it relates to the Company,
the responsibility of the Manager. The work carried out by the
auditors does not involve consideration of the maintenance and
integrity of this website and, accordingly, the auditor accepts no
responsibility for any changes that have occurred to the financial
statements since they were initially presented on the website. The
financial statements are prepared in accordance with UK
legislation, which may differ from legislation in other
jurisdictions.
Under applicable law and regulations the Directors are also
responsible for preparing a Directors' Report, Strategic Report and
Directors' Remuneration Report that comply with that law and those
regulations.
Each of the Directors, whose names and functions are listed on
pages 22 and 23 of the Annual Report confirm that, to the best of
their knowledge:
-- the financial statements, which have been prepared in
accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards and applicable law),
give a true and fair view of the assets, liabilities, financial
position and return or loss of the Company; and
-- the Strategic Report includes a fair review of the
development and performance of the business and the position of the
Company, together with a description of the principal risks and
uncertainties that it faces.
The Board confirms that it is satisfied that the annual report
and financial statements taken as a whole is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Company's position and performance,
business model and strategy.
For and on behalf of the Board
Nigel Wightman
Chairman
19th September 2017
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 30TH JUNE
2017
2017 2016
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- -------- --------- --------- -------- -------- --------
Gains on investments held
at fair
value through profit or
loss - 84,015 84,015 - 14,343 14,343
Net foreign currency gains - 1,051 1,051 - 1,143 1,143
Income from investments 6,715 - 6,715 5,669 - 5,669
Interest receivable and
similar income 65 - 65 89 - 89
-------------------------------- -------- --------- --------- -------- -------- --------
Gross return 6,780 85,066 91,846 5,758 15,486 21,244
Management fee (749) (749) (1,498) (593) (593) (1,186)
Performance fee (charge)/write
back - (2,347) (2,347) - 1,672 1,672
Other administrative expenses (561) - (561) (572) - (572)
-------------------------------- -------- --------- --------- -------- -------- --------
Net return on ordinary
activities
before finance costs and
taxation 5,470 81,970 87,440 4,593 16,565 21,158
Finance costs (162) (162) (324) (184) (184) (368)
-------------------------------- -------- --------- --------- -------- -------- --------
Net return on ordinary
activities
before taxation 5,308 81,808 87,116 4,409 16,381 20,790
Taxation (684) - (684) (407) - (407)
-------------------------------- -------- --------- --------- -------- -------- --------
Net return on ordinary
activities
after taxation 4,624 81,808 86,432 4,002 16,381 20,383
-------------------------------- -------- --------- --------- -------- -------- --------
Return per share (note
3) 3.74p 66.15p 69.89p 3.24p 13.27p 16.51p
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30TH JUNE 2017
Called Capital
up
share Share redemption Capital Revenue
capital premium reserve Reserves(1) reserve(1) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- ----------- ------------ ----------- ---------
At 30th June 2015 6,814 9,317 27,401 208,191 17,402 269,125
Repurchase of shares
into Treasury - - - (23,405) - (23,405)
Exercise of Subscription
shares into
Ordinary shares (39) 39 - - - -
Issue of Ordinary shares
on exercise
of Subscription shares 971 37,314 - - - 38,285
Net return on ordinary
activities - - - 16,381 4,002 20,383
Dividends paid in the
year - - - - (4,234) (4,234)
-------------------------- -------- -------- ----------- ------------ ----------- ---------
At 30th June 2016 7,746 46,670 27,401 201,167 17,170 300,154
Expenses in relation
to share repurchases - - - (3) - (3)
Net return on ordinary
activities - - - 81,808 4,624 86,432
Dividends paid in the
year - - - - (9,399) (9,399)
-------------------------- -------- -------- ----------- ------------ ----------- ---------
At 30th June 2017 7,746 46,670 27,401 282,972 12,395 377,184
-------------------------- -------- -------- ----------- ------------ ----------- ---------
1 This reserve forms the distributable reserve of the Company
and may be used to fund distribution of profits to investors via
dividend payments.
STATEMENT OF FINANCIAL POSITION AT 30TH JUNE 2017
2017 2016
GBP'000 GBP'000
----------------------------------------------- --------- ---------
Fixed assets
Investments held at fair value through profit
or loss 400,972 309,325
Current assets
Derivative financial assets 2,037 6,429
Debtors 2,250 5,855
Cash and cash equivalents 6,131 11,411
----------------------------------------------- --------- ---------
10,418 23,695
Current liabilities
Creditors: amounts falling due within one
year (1,796) (2,199)
Derivative financial liabilities (4,863) (5,467)
----------------------------------------------- --------- ---------
Net current assets 3,759 16,029
----------------------------------------------- --------- ---------
Total assets less current liabilities 404,731 325,354
----------------------------------------------- --------- ---------
Creditors: amounts falling due after more
than one year (25,200) (25,200)
Provision for liabilities and charges
Performance fee payable (2,347) -
----------------------------------------------- --------- ---------
Net assets 377,184 300,154
----------------------------------------------- --------- ---------
Capital and reserves
Called up share capital 7,746 7,746
Share premium 46,670 46,670
Capital redemption reserve 27,401 27,401
Capital reserves 282,972 201,167
Revenue reserve 12,395 17,170
----------------------------------------------- --------- ---------
Total shareholders' funds 377,184 300,154
----------------------------------------------- --------- ---------
Net asset value per share (note 4) 305.0p 242.7p
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 30TH JUNE
2017
1. Accounting policies
(a) Basis of accounting
The financial statements are prepared under the historical cost
convention, modified to include fixed asset investments at fair
value, and in accordance with the Companies Act 2006, United
Kingdom Generally Accepted Accounting Practice ('UK GAAP'),
including FRS 102 'The Financial Reporting Standard applicable in
the UK and Republic of Ireland' and with the Statement of
Recommended Practice 'Financial Statements of Investment Trust
Companies and Venture Capital Trusts' (the 'SORP') issued by the
Association of Investment Companies in November 2014 and updated in
January 2017.
All of the Company's operations are of a continuing nature.
The financial statements have been prepared on a going concern
basis. The disclosures on going concern in the Directors' Report on
page 28 of the Annual Report form part of these financial
statements.
The policies applied in these financial statements are
consistent with those applied in the preceding year.
The Company has elected not to prepare a Statement of Cash Flows
for the current year on the basis that substantially all of its
investments are liquid and carried at market value and a Statement
of Changes in Equity is provided.
2. Dividends
(a) Dividends paid and proposed
2017 2016
GBP'000 GBP'000
--------------------------------------------- -------- --------
Dividends paid
Unclaimed dividends refunded to the Company - (6)
2016 final dividend of 3.2p (2015: 3.2p(1)
) 3,957 4,240
First interim dividend of 2.2p (2016: 2,721 -
nil)
Second interim dividend of 2.2p (2016: 2,721 -
nil)
--------------------------------------------- -------- --------
Total dividends paid in the year 9,399 4,234
--------------------------------------------- -------- --------
Dividend proposed
Third interim dividend proposed of 2.2p
(2016 final: 3.2p) 2,721 3,957
--------------------------------------------- -------- --------
1 The dividend rate has been restated following the sub-division
of each existing ordinary share of 25p into 5p each on 8th January
2016.
A third interim dividend of 2.2p has been declared and was paid
on 7th July 2017 for the financial year ending 30th June 2017. In
accordance with the accounting policy of the Company, this dividend
will be reflected in the financial statements for the year ending
30th June 2018.
(b) Dividend for the purposes of Section 1158 of the Corporation
Tax Act 2010 ('Section 1158')
The requirements of Section 1158 are considered on the basis of
dividends declared in respect of the financial year, shown below.
The revenue available for distribution by way of dividend for the
year is GBP4,624,000 (2016: GBP4,002,000). The revenue reserve
after payment of the third interim dividend (2016: final) will
amount to GBP9,674,000 (2016: GBP13,213,000).
2017 2016
GBP'000 GBP'000
--------------------------------------------- -------- --------
First interim dividend of 2.2p (2016: 2,721 -
nil)
Second interim dividend of 2.2p (2016: 2,721 -
nil)
Third interim dividend of 2.2p (2016 final:
3.2p) 2,721 3,957
--------------------------------------------- -------- --------
8,163 3,957
--------------------------------------------- -------- --------
All dividends paid and proposed in the period have been funded
from the revenue reserve.
3. Return per share
2017 2016
GBP'000 GBP'000
-------------------------- ------------- ------------
Revenue return 4,624 4,002
Capital return 81,808 16,381
-------------------------- ------------- ------------
Total return 86,432 20,383
-------------------------- ------------- ------------
Weighted average number
of shares in issue 123,661,285 123,434,710
Revenue return per share 3.74p 3.24p
Capital return per share 66.15p 13.27p
-------------------------- ------------- ------------
Total return per share 69.89p 16.51p
-------------------------- ------------- ------------
4. Net asset value per share
2017 2016
--------------------------- ------------ ------------
Net assets (GBP'000) 377,184 300,154
Number of Ordinary shares
in issue 123,661,285 123,661,285
Net asset value per share 305.0p 242.7p
--------------------------- ------------ ------------
5. Status of announcement
2016 Financial Information
The figures and financial information for 2016 are extracted
from the Annual Report and Financial Statements for the year ended
30th June 2016 and do not constitute the statutory accounts for
that year. The Annual Report and Accounts has been delivered to the
Registrar of Companies and included the Report of the Independent
Auditors which was unqualified and did not contain a statement
under either section 498(2) or section 498(3) of the Companies Act
2006.
2017 Financial Information
The figures and financial information for 2017 are extracted
from the Annual Report and Financial Statements for the year ended
30th June 2017 and do not constitute the statutory accounts for
that year. The Annual Report and Accounts includes the Report of
the Independent Auditors which is unqualified and does not contain
a statement under either section 498(2) or section 498(3) of the
Companies Act 2006. The Annual Report and Accounts will be
delivered to the Registrar of Companies in due course.
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
JPMORGAN FUNDS LIMITED
19th September 2017
For further information:
Divya Amin,
JPMorgan Funds Limited
ENDS
A copy of the annual report will shortly be submitted to the
National Storage Mechanism and will be available for inspection at
www.morningstar.co.uk/uk/NSM
The annual report will also shortly be available on the
Company's website at www.jpmglobalgrowthandincome.co.uk where up to
date information on the Company, including daily NAV and share
prices, factsheets and portfolio information can also be found.
JPMORGAN FUNDS LIMITED
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUBUBUPMGMB
(END) Dow Jones Newswires
September 20, 2017 03:00 ET (07:00 GMT)
Jpmorgan Global Growth &... (LSE:JGGI)
Historical Stock Chart
From Apr 2024 to May 2024
Jpmorgan Global Growth &... (LSE:JGGI)
Historical Stock Chart
From May 2023 to May 2024