TIDMJPE TIDMJPEI TIDMJPEC
RNS Number : 5550D
JPMorgan Elect PLC
27 April 2017
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN ELECT PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS
ED 28 FEBRUARY 2017
Legal Entity Identifier: 549300FIUYKKL39ILD07
CHAIRMAN'S STATEMENT
Dear Shareholders,
In my report to you last year I predicted bouts of volatility as
negotiation on the terms and timing of Brexit unfolded. Despite
this uncertainty, UK and global equities performed strongly in
sterling terms during the half year to 28th February 2017,
supported by the devaluation of the pound, the anticipation of
fiscal stimulus that followed the outcome of the US elections and
the continuation of a relatively low interest rate environment.
Consequently, the total return on the Company's net assets over the
period was +11.8% for the Managed Growth portfolio and +8.1% for
the Managed Income portfolio, outperforming each portfolio's
respective benchmarks. The total return on the Managed Cash
portfolio was +0.2%.
Managed Growth
The Managed Growth portfolio has delivered a total return on net
assets of +11.8%, compared with the portfolio's benchmark which
returned +11.2%. The share price total return was +11.3%.
As you know, the objective of this share class is long term
capital growth. The significant overseas exposure of this portfolio
and improving global economic data contributed to this strong
performance.
For the half year ended 28th February 2017 the Board declared
dividends of 5.45p per Managed Growth share compared to 4.05p for
the half year ended 28th February 2016. Since the main objective of
the share class is capital appreciation, dividends may be volatile
from year to year as the Managers seek to maximise total
return.
Managed Income
The Managed Income portfolio has delivered a total return on net
assets of +8.1% compared with the portfolio's benchmark which
returned +7.0%. The share price total return was +8.6%.
The objective of the portfolio is to deliver a growing income
return with the potential for long term capital growth. In the
aftermath of the result of the EU referendum sterling weakened
materially. This has had a positive impact on some of the key UK
dividend payers, who declare their dividends in US dollars, such as
the major oil stocks and the major pharmaceuticals. Whilst this has
been positive, the number of special dividends received by the
portfolio has declined from the prior corresponding period.
The outlook for UK dividend payments is mixed. A number of
factors, including Brexit negotiations, have the potential to
impact the profits and cash flow of domestic UK companies.
For the half year ended 28th February 2017 the Board declared
dividends of 1.70p per Managed Income share, unchanged from the
same period last year.
Managed Cash
The Managed Cash Portfolio delivered a total return on net
assets of +0.2%. The share price total return was -0.7%.
The portfolio's primary objective remains capital preservation
through investment in high quality liquidity funds. During the half
year the Bank of England base rate remained unchanged at 0.25%.
The Managed Cash portfolio is invested in liquidity funds with
AAA ratings as measured by Standard & Poor's, or an equivalent
rating agency.
The Board considers this class to be an asset allocation tool
which continues to benefit shareholders of all of the Company's
share classes, offering the opportunity to switch into a safer
share class in times of market volatility.
JPMorgan Income and Growth and M&G High Income Investment
Trust
During the half year period your Board recommended that
shareholders approve the issue of new shares in connection with the
reconstruction of JPMorgan Income & Growth Investment Trust plc
('JPMIG') and M&G High Income Investment Trust plc ('HIIT').
The transactions resulted in the acquisition of approximately
GBP21.5 million of net assets from JPMIG and GBP14 million of net
assets from HIIT.
The Board are pleased with the outcome of the transactions and I
would like to welcome the new shareholders to the Trust. It is our
hope that over time such transactions will increase liquidity in
Managed Cash Shares, Managed Growth Shares and Managed Income
Shares. By spreading the fixed costs of managing the Company over a
wider asset base the Ongoing Charges Ratio has been reduced.
Board Appointment
Karl Sternberg was appointed as an Independent non-executive
Director of the Company on 16th December 2016. Mr. Sternberg is the
former Chairman of JPMIG. His appointment follows the successful
reconstruction of JPMIG and the resulting issue of new shares by
the Company.
Mr. Sternberg is a director of Jupiter Fund Management, Lowland
Investment Company, Monks Investment Trust, Clipstone Logistics
REIT, Herald Investment Trust, Alliance Trust and Railway Pension
Investments. He brings to the Board valuable leadership skills,
investment insight and an in-depth knowledge of the asset
management industry.
Outlook
The journey to leave the European Union involves uncertainty as
the negotiations on the terms and timing of Brexit take place.
These have the potential to have a profound impact on UK and
European markets as do elections in Germany, France and the UK.
Continued uncertainty seems likely, offering both risks and
opportunity.
Angus Macpherson
Chairman 27th April 2017
MANAGED GROWTH SHARE CLASS
INVESTMENT MANAGERS' REPORT
Performance Review
The Managed Growth portfolio outperformed its benchmark over the
half year period, returning +11.8% versus the benchmark return of
+11.2%. Taking into account the discount, the return to
shareholders was +11.3%.
Managed Growth 6 Mths 1 Yr 3 Yrs 5 Yrs 10 Yrs
pa pa pa
-------------------------- ------- ----- ------ ------ -------
Return on net assets (%) 11.8 25.8 9.8 13.4 7.9
Return to shareholders
(%) 11.3 25.5 10.0 13.4 7.6
Benchmark return (%) 11.2 30.0 11.5 12.0 7.8
FTSE All-Share Index (%) 8.6 22.8 6.3 9.2 5.9
FTSE World ex-UK (%) 14.1 38.4 17.4 15.4 10.1
-------------------------- ------- ----- ------ ------ -------
Robust and improving global economic data released during the
first half of the financial year fuelled a rally in global equity
markets, with manufacturing purchasing managers' indices in both
the US and Europe hitting new highs. Markets also reacted
positively to the news that Donald Trump would be the next US
President and the Republicans would retain control of the House and
the Senate. This outcome was priced as reflationary amid
expectations for significant fiscal stimulus, boosting US growth
prospects into 2017 and beyond.
Against this backdrop the return on net assets outperformed the
portfolio's benchmark. The outperformance was generated by positive
stock selection in the underlying strategies, boosted by a
narrowing of investment trust discounts generally. Amongst the top
performers in the UK were Blackrock Smaller Companies, JPMorgan
Claverhouse and Fidelity Special Values.
Whilst some strategies did underperform against their
benchmarks, seven out of the portfolio's 10 largest holdings
outperformed over the half year period.
6 Mths to
Top 5 by absolute performance 28th February 2017
(%)
---------------------------------- -------------------
JPMorgan American 17.4
Allianz Technology Trust 17.2
JPM US Smaller Companies 17.2
JPM US Select Equity 17.0
BlackRock Smaller Companies 16.6
---------------------------------- -------------------
6 Mths to
Bottom 5 by absolute performance 28th February 2017
(%)
---------------------------------- -------------------
JPMorgan Indian 0.0
Perpetual Income & Growth 2.1
Jupiter European Opportunities 2.5
Edinburgh IT 4.6
JPM European Smaller Companies 4.7
---------------------------------- -------------------
At the period end the average discount in the investment trust
sector (excluding private equity funds, hedge funds and direct
property funds) was 5.8%, compared with 7.0% at the end of August
2016 (Source: Winterflood). We estimate that the Managed Growth
portfolio's return was boosted by around 0.4% from this narrowing
of discounts.
The portfolio benefited from being overweight in US equity
strategies as sterling weakened and US equities performed well. Our
underweight position in UK equities also boosted relative
performance of the portfolio.
Portfolio Review
At the end of February 2017, 43% of the portfolio was invested
in JPMorgan managed investment trusts, 30% in JPMorgan managed
open-ended funds and 27% in investment trusts managed by
third-party managers.
We remained underweight in UK equities and overweight in US
equities. The most notable geographical change has been an increase
in our allocation to Japanese equities, moving from an underweight
to an overweight position. We reduced our European equities
exposure to a neutral position.
We took profits in JPMorgan US Equity All Cap Fund, JPMorgan
Smaller Companies Investment Trust, JPMorgan European Investment
Trust (Growth shares) and Fidelity European Values. Proceeds were
reinvested into existing holdings: Murray Income Trust, Blackrock
Smaller Companies, Blackrock Frontiers Investment Trust and
JPMorgan Emerging Markets.
Outlook
Broadening global growth and signs that the reflation which
began in the summer of last year is gaining traction, suggest a
continued positive outlook for equities in 2017. Although the US
has increased interest rates, aggregate global policy remains
stimulatory. Our broad exposure to global equities will be a way to
benefit from this more synchronised growth. In the UK we expect
something of a deceleration in growth, although a stimulative
monetary policy will cushion any negative effects.
Against this backdrop we would expect the global environment for
stock pickers to improve and underlying managers to find more
sources of outperformance. For investment trusts, we would note
that discounts to net asset value have narrowed which warrants some
caution, but that in a favourable environment for equities these
levels of valuation should not cause undue concern.
Katy Thorneycroft
Investment Manager 27th April 2017
MANAGED INCOME SHARE CLASS
INVESTMENT MANAGERS' REPORT
Dividend Review
Despite the positive headline level of total dividend growth
from the UK stock market, this result was flattered by the impact
of sterling's weakness on the dividends of some of the more
internationally-oriented larger companies. Sterling weakened
materially in the aftermath of the result of the EU referendum in
June 2016 and this has had a positive impact on some of the more
important sources of UK dividends: companies who declare their
dividends in US dollars, such as the major oil stocks, and the
major pharmaceuticals. However, 2016 was a year in which mining
sector dividends halved (source: Capita Asset Services) as many of
the mining stocks either abandoned or significantly reduced their
dividend payments. The food retailers also cut their dividends.
Total UK dividends grew by 2.6% over 2016 (source: Capita Asset
Services), although dividends would have fallen without the
currency benefits from weaker sterling. It was another year of
significant special dividends, which boosted the headline total.
However, these special dividends have been less numerous in the
current interim period to those that were declared in the first
half of the last full financial year. To date, the portfolio has
benefited from special dividends from Card Factory, Lloyds Banking
Group, Taylor Wimpey and Beazley, although some of the insurers are
not paying special dividends this year. The Company has GBP4.3
million of revenue reserves available to Managed Income
shareholders to help smooth future dividend payments.
The outlook for UK dividend growth remains mixed, although
further weakness in sterling would clearly be beneficial given the
international revenues of the UK equity market, particularly for
larger companies. Some companies will continue to generate
sufficient cash to deliver good underlying dividend growth and/or
special dividends.
Performance Review
The Managed Income portfolio outperformed its composite
benchmark, delivering a total return of +8.1%, in comparison with
the benchmark return of +7.0%.
Managed Income 6 Mths 1 Yr 3 Yrs 5 Yrs 10 Yrs
pa pa pa
-------------------------- ------- ----- ------ ------ -------
Return on net assets (%) 8.1 15.7 6.0 10.4 3.9
Return to shareholders
(%) 8.6 15.0 6.1 10.3 3.6
Benchmark return (%) 7.0 20.1 6.0 8.5 5.4
-------------------------- ------- ----- ------ ------ -------
For the first half of our financial year the overweight position
in the most cost efficient iron ore producer, Rio Tinto, was a
strong contributor to the portfolio's outperformance, as was the
overweight position in Fever-Tree, the fast growing, premium mixer
company that has consistently delivered strong results, ahead of
market expectations. Other positive contributors included our
overweight position in the electrical distributor,
Electrocomponents, which performed very well as the company
delivered strong results and saw further upgrades to its earnings
prospects.
By contrast, not owning the mining groups, Glencore and the zero
dividend paying Anglo American, detracted from performance as the
mining sector rallied strongly over this six month period. Our
holding in Novae, the specialist Lloyds insurance company,
performed weakly on the back of large catastrophe losses and weak
investment returns during 2016. Our long term overweight position
in the premium dividend yielder, Imperial Brands, was also
unhelpful over this period, but remains attractively valued with
good dividend growth prospects. Overall, the portfolio outperformed
the rising equity market over the first half of the financial
year.
Portfolio Review
There has been no material change to the asset allocation of the
portfolio during the half year. The portfolio remains overweight
equities relative to its composite benchmark.
We assess individual investment opportunities on whether
earnings estimates are being revised upwards, whether the valuation
is attractive and whether the balance sheet and forecast cash flows
allow for dividend growth. Portfolio construction is determined by
stock selection with a focus on potential dividend growth.
Recently we bought a position in global food ingredients
company, Tate & Lyle. The business has been performing well,
leading management to increase their profits guidance for 2017. The
outlook for profits growth over the next few years is encouraging
whilst we expect dividends to grow by 4% over the next 12 months.
We also bought Prudential Plc. The growth outlook is strong as its
Asian business continues to expand and cash generation from its US
operations remains impressive. We added Unilever to the portfolio
following the rejected takeover offer from Kraft as we expect
management to embark on a programme to improve returns. Other
purchases were mostly concentrated on increasing our positions in
existing holdings such as Rio Tinto and Card Factory.
We sold our holding in Informa. The revenue growth outlook in
its key business divisions is challenging, leading to a
deterioration in anticipated profit growth. We also sold our
holding in outsourcing group Serco following a disappointing
outlook for profitability in 2018 due to a high number of contracts
subject to retendering. We reduced our positions in Booker, Direct
Line and British American Tobacco.
Outlook
The UK stock market has remained healthy over recent months,
with many corporates continuing to deliver good results and
encouraging outlook statements. This is also the case globally,
with the outlook for the corporate sector improving and growth
expectations trending higher, as markets price in a gentle move
towards global reflation. Although much of this improvement has
been priced in with the strong rally in equity prices since early
2016, we believe that equities can still move higher albeit with
more volatility likely. The outlook for UK dividend growth remains
mixed, although any further weakness in sterling would clearly be
beneficial given the international nature of the UK equity market,
particularly amongst larger companies.
Political uncertainty is set to continue in 2017, with a number
of important elections in Europe, uncertainty over the impact of
Trump's policies on US economic and foreign policy, and
domestically, the' Brexit' negotiations. The most recent
announcement of a snap UK General Election on the 8th June 2017
merely adds to this uncertainty.
We will, of course, continue to seek out money making
opportunities for the Company, with a particular focus on companies
generating an attractive income return for their shareholders.
John Baker
Sarah Emly
Investment Managers 27th April 2017
MANAGED CASH SHARE CLASS
INVESTMENT MANAGER'S REPORT
It was once more a period of low returns for the Managed Cash
portfolio. The Bank of England kept interest rates on hold at
0.25%, and retained the asset purchase programme at GBP435 billion.
The UK government has now triggered Article 50 to formally start
the process of exiting the EU. As the uncertainty around Brexit
weighs on confidence, we see a risk of a period of weak data with
inflation beginning to squeeze real incomes, and as a result a much
reduced upward pressure on UK Gilt yields. We cannot rule out a
marked rise in the public sector net borrowing requirement as a
consequence of Brexit in the longer term, but it seems equally
likely that the Bank of England will extend its quantitative easing
programme if the data weakens significantly, in 2017. It is likely
that softening economic data will ultimately dominate the outlook
for UK yields.
The Managed Cash portfolio returned +0.2% for the period as
interest rates remained low. The portfolio continues to retain its
broad diversification across a range of the UK's leading AAA-rate
sterling liquidity funds, each selected to provide a high level of
capital security for shareholders.
The Bank of England is expected to keep interest rates on hold
at its next meeting. While monetary policy is stimulative, the
government's plans show fiscal policy pushing hard in the other
direction during each of the next several years. We continue to
expect a deceleration of UK growth in 2017.
Katy Thorneycroft
Investment Manager 27th April 2017
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its
interim report.
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Company fall
into the following broad categories: investment strategy; market;
accounting, legal and regulatory; corporate governance and
shareholder relations; operational and financial. Information on
each of these areas is given in the Business Review within the 2016
Annual Report and Accounts.
Related Party Transactions
During the half year to 28th February 2017, no new agreements
were entered into with related parties which have materially
affected the financial position or the performance of the
Company.
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 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 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 affairs of the Company and of the assets,
liabilities, financial position and net return of the Company, as
at 28th February 2017, as required by the UK Listing Authority
Disclosure and Transparency Rules 4.2.4R; and
(ii) the interim report includes a fair review of the
information required by 4.2.7R (important events that have occurred
since inception, their impact on these financial statements and a
description of the principal risks facing the Company) and 4.2.8R
(related party transactions since inception that have materially
affected the financial position or performance of the Company) 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 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
Angus Macpherson
Chairman 27th April 2017
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 28TH FEBRUARY 2017
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
28th February 29th February 31st August
2017 2016 2016
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 - 29,255 29,255 - (5,562) (5,562) - 20,470 20,470
Net foreign currency
gains - 26 26 - 39 39 - 57 57
Income from
investments 3,495 - 3,495 2,913 - 2,913 6,484 - 6,484
Interest receivable
and similar income 10 - 10 16 - 16 32 - 32
----------------------- -------- -------- -------- -------- --------- -------- -------- -------- --------
Gross return/(loss) 3,505 29,281 32,786 2,929 (5,523) (2,594) 6,516 20,527 27,043
Management fee (191) (414) (605) (157) (337) (494) (315) (688) (1,003)
Other administrative
expenses (282) - (282) (316) - (316) (615) - (615)
----------------------- -------- -------- -------- -------- --------- -------- -------- -------- --------
Net return/(loss)
on ordinary activities
before finance
costs and
taxation 3,032 28,867 31,899 2,456 (5,860) (3,404) 5,586 19,839 25,425
Finance costs (1) (1) (2) - - - - - -
----------------------- -------- -------- -------- -------- --------- -------- -------- -------- --------
Net return/(loss)
on ordinary
activities
before taxation 3,031 28,866 31,897 2,456 (5,860) (3,404) 5,586 19,839 25,425
Taxation - - - (6) - (6) (6) - (6)
----------------------- -------- -------- -------- -------- --------- -------- -------- -------- --------
Net return/(loss)
on ordinary
activities
after taxation 3,031 28,866 31,897 2,450 (5,860) (3,410) 5,580 19,839 25,419
----------------------- -------- -------- -------- -------- --------- -------- -------- -------- --------
Return/(loss)
per share (note
4):
Managed Growth 5.78p 71.75p 77.53p 4.37p (12.52)p (8.15)p 8.94p 55.59p 64.53p
Managed Income 1.79p 7.81p 9.60p 1.76p (2.84)p (1.08)p 4.76p 1.10p 5.86p
Managed Cash 0.13p 0.00p 0.13p 0.20p 0.00p 0.20p 0.39p 0.00p 0.39p
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 28TH FEBRUARY 2017
Called
up
share Share Other Capital Revenue
capital premium reserve reserves Reserve Total
1
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- -------- -------- --------- --------- --------- ---------
Six months ended 28th February
2017 (Unaudited)
At 31st August 2016 24 85,425 44,694 148,307 4,550 283,000
Repurchase and cancellation
of the Company's own shares - - (23) - - (23)
Repurchase of shares into
Treasury - - (6,134) - - (6,134)
Share conversions during
the period - 420 (420) - - -
Shares issued as a result
of Company rollover
(net of costs) 2 21,294 - - - 21,296
Net return on ordinary activities - - - 28,866 3,031 31,897
Dividends paid in the period - - - - (3,183) (3,183)
----------------------------------- -------- -------- --------- --------- --------- ---------
At 28th February 2017 26 107,139 38,117 177,173 4,398 326,853
----------------------------------- -------- -------- --------- --------- --------- ---------
Six months ended 29th February
2016 (Unaudited)
At 31st August 2015 24 84,094 56,013 128,468 3,421 272,020
Repurchase and cancellation
of the Company's own shares - - (42) - - (42)
Repurchase of shares into
Treasury - - (3,682) - - (3,682)
Share conversions during
the period - 436 (436) - - -
Net (loss)/return on ordinary
activities - - - (5,860) 2,450 (3,410)
Dividends paid in the period - - - - (2,532) (2,532)
----------------------------------- -------- -------- --------- --------- --------- ---------
At 29th February 2016 24 84,530 51,853 122,608 3,339 262,354
----------------------------------- -------- -------- --------- --------- --------- ---------
Year ended 31st August 2016
(Audited)
At 31st August 2015 24 84,094 56,013 128,468 3,421 272,020
Repurchase and cancellation
of the Company's own shares - - (84) - - (84)
Issue of shares from Treasury - 5 123 - - 128
Repurchase of shares into
Treasury - - (10,032) - - (10,032)
Share conversions during
the year - 1,326 (1,326) - - -
Net return on ordinary activities - - - 19,839 5,580 25,419
Dividends paid in the year - - - - (4,451) (4,451)
----------------------------------- -------- -------- --------- --------- --------- ---------
At 31st August 2016 24 85,425 44,694 148,307 4,550 283,000
----------------------------------- -------- -------- --------- --------- --------- ---------
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 28TH FEBRUARY 2017
(Unaudited) (Unaudited) (Audited)
28th February 29th February 31st
August
2017 2016 2016
Growth Income Cash Total Total Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- -------- -------- --------- -------- -------------- ------------
Fixed assets
Investments held at
fair value through
profit or loss 238,069 74,813 4,166 317,048 248,424 267,257
---------------------------- -------- -------- --------- -------- -------------- ------------
Current assets
Derivative financial
assets 495 - - 495 381 1,885
Debtors 522 763 1 1,286 1,446 1,084
Cash and cash equivalents 6,871 1,882 24 8,777 12,646 13,334
---------------------------- -------- -------- --------- -------- -------------- ------------
7,888 2,645 25 10,558 14,473 16,303
Current liabilities
Creditors: amounts falling
due within
one year (90) (441) (24) (555) (272) (124)
Derivative financial
liabilities (198) - - (198) (271) (436)
---------------------------- -------- -------- --------- -------- -------------- ------------
Net current assets 7,600 2,204 1 9,805 13,930 15,743
---------------------------- -------- -------- --------- -------- -------------- ------------
Net assets 245,669 77,017 4,167 326,853 262,354 283,000
---------------------------- -------- -------- --------- -------- -------------- ------------
Capital and reserves
Called up share capital 18 6 2 26 24 24
Share premium 30,794 56,109 20,236 107,139 84,530 85,425
Other reserve 50,139 4,121 (16,143) 38,117 51,853 44,694
Capital reserves 164,726 12,458 (11) 177,173 122,608 148,307
Revenue reserve (8) 4,323 83 4,398 3,339 4,550
---------------------------- -------- -------- --------- -------- -------------- ------------
Total equity shareholders'
funds 245,669 77,017 4,167 326,853 262,354 283,000
---------------------------- -------- -------- --------- -------- -------------- ------------
28th February 29th February 31st August
2017 2016 2016
Net Net Net asset Net Net Net
asset asset
value assets value assets value assets
(pence) GBP'000 (pence) GBP'000 (pence) GBP'000
--------------------- -------- -------- ---------- -------- ------------ --------
Net asset value per
share (note 5)
Managed Growth 736.0 245,669 593.1 206,422 664.2 224,749
Managed Income 111.9 77,017 100.4 52,192 105.7 54,456
Managed Cash 101.5 4,167 101.4 3,740 101.7 3,795
--------------------- -------- -------- ---------- -------- ------------ --------
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 28TH FEBRUARY 2017
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
August 2016 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 including 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 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.
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 28th February 2017.
The Company has elected not to prepare a statement of cash flows
for the current period on the basis that substantially all of its
investments are liquid and carried at market value.
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 August 2016.
3. Dividends
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
28th February 29th February 31st August
2017 2016 2016
GBP'000 GBP'000 GBP'000
----------------------------- -------------- -------------- ------------
Dividends paid
Managed Growth 2016 2nd
interim dividend of 1.50p - - 522
Managed Growth 2016 3rd
interim dividend of 1.50p - - 515
Managed Growth 2016 4th
interim dividend of 3.15p
(2015: 1.50p) 1,066 535 535
Managed Growth 2017 1st
interim dividend of 2.90p
(2016: 2.55p) 974 892 892
Managed Income 2016 2nd
interim dividend of 0.85p - - 441
Managed Income 2016 3rd
interim dividend of 0.85p - - 441
Managed Income 2016 4th
interim dividend of 1.35p
(2015: 1.25p) 692 650 650
Managed Income 2017 1st
interim dividend of 0.85p
(2016: 0.85p) 437 441 441
Managed Cash 2016 interim
dividend of 0.35p (2015:
0.35p) 14 14 14
----------------------------- -------------- -------------- ------------
Total dividends paid in
the period(1) 3,183 2,532 4,451
----------------------------- -------------- -------------- ------------
Dividends proposed
Managed Growth shares 2016
4th interim dividend of
3.15p - - 1,066
Managed Growth 2017 2nd
interim dividend of 2.55p
(2016: 1.50p) 855 523 -
Managed Income shares 2016
4th interim dividend of
1.35p - - 692
Managed Income 2017 2nd
interim dividend of 0.85p
(2016: 0.85p) 584 441 -
Managed Cash shares 2016
interim dividend of 0.35p - - 14
----------------------------- -------------- -------------- ------------
Total dividends proposed(2) 1,439 964 1,772
----------------------------- -------------- -------------- ------------
1 All the dividends paid and declared in the period have been funded from the Revenue Reserve.
2 In accordance with the accounting policy of the Company, these
dividends will be reflected in the financial statements of the
following period.
4. Return per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
28th February 29th February 31st August
2017 2016 2016
Managed Growth GBP'000 GBP'000 GBP'000
--------------------------- -------------- -------------- ------------
Return/(loss) per Managed
Growth share is based
on
the following:
Revenue return 1,948 1,530 3,097
Capital return/(loss) 24,171 (4,387) 19,267
--------------------------- -------------- -------------- ------------
Total return/(loss) 26,119 (2,857) 22,364
--------------------------- -------------- -------------- ------------
Weighted average number
of shares in issue 33,686,904 35,036,037 34,658,666
Revenue return per share 5.78p 4.37p 8.94p
Capital return/(loss)
per share 71.75p (12.52)p 55.59p
--------------------------- -------------- -------------- ------------
Total return/(loss) per
share 77.53p (8.15)p 64.53p
--------------------------- -------------- -------------- ------------
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
28th February 29th February 31st August
2017 2016 2016
Managed Income GBP'000 GBP'000 GBP'000
--------------------------- -------------- -------------- ------------
Return/(loss) per Managed
Income share is based
on
the following:
Revenue return 1,078 912 2,467
Capital return/(loss) 4,695 (1,473) 572
--------------------------- -------------- -------------- ------------
Total return/(loss) 5,773 (561) 3,039
--------------------------- -------------- -------------- ------------
Weighted average number
of shares in issue 60,098,880 51,854,060 51,769,108
Revenue return per share 1.79p 1.76p 4.76p
Capital return/(loss)
per share 7.81p (2.84)p 1.10p
--------------------------- -------------- -------------- ------------
Total return/(loss) per
share 9.60p (1.08)p 5.86p
--------------------------- -------------- -------------- ------------
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
28th February 29th February 31st August
2017 2016 2016
Managed Cash GBP'000 GBP'000 GBP'000
--------------------------- -------------- -------------- ------------
Return per Managed Cash
share is based on
the following:
Revenue return 5 8 16
Capital return - - -
--------------------------- -------------- -------------- ------------
Total return 5 8 16
--------------------------- -------------- -------------- ------------
Weighted average number
of shares in issue 3,937,661 3,803,462 3,792,884
Revenue return per share 0.13p 0.20p 0.39p
Capital return per share 0.00p 0.00p 0.00p
--------------------------- -------------- -------------- ------------
Total return per share 0.13p 0.20p 0.39p
--------------------------- -------------- -------------- ------------
5. Net asset value per share
The net asset values per share are calculated as follows:
(Unaudited)
28th February 2017
Managed Managed Managed
Growth Income Cash
--------------------------- ----------- ----------- ----------
Net assets attributable
(GBP'000) 245,669 77,017 4,167
--------------------------- ----------- ----------- ----------
Ordinary shares in issue 33,380,291 68,847,963 4,106,040
--------------------------- ----------- ----------- ----------
Net asset value per share
(pence) 736.0 111.9 101.5
--------------------------- ----------- ----------- ----------
(Unaudited)
29th February 2016
Managed Managed Managed
Growth Income Cash
--------------------------- ----------- ----------- ----------
Net assets attributable
(GBP'000) 206,422 52,192 3,740
--------------------------- ----------- ----------- ----------
Ordinary shares in issue 34,803,702 51,990,265 3,689,255
--------------------------- ----------- ----------- ----------
Net asset value per share
(pence) 593.1 100.4 101.4
--------------------------- ----------- ----------- ----------
(Audited)
31st August 2016
Managed Managed Managed
Growth Income Cash
--------------------------- ----------- ----------- ----------
Net assets attributable
(GBP'000) 224,749 54,456 3,795
--------------------------- ----------- ----------- ----------
Ordinary shares in issue 33,838,279 51,506,786 3,731,318
--------------------------- ----------- ----------- ----------
Net asset value per share
(pence) 664.2 105.7 101.7
--------------------------- ----------- ----------- ----------
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 half year report will be submitted to the National
Storage Mechanism and will be available shortly for inspection at
www.morningstar.co.uk/uk/NSM
The half year report will also be available shortly on the
Company's website at www.jpmelect.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 company news service from the London Stock Exchange
END
IR LLFLISRIDFID
(END) Dow Jones Newswires
April 27, 2017 06:20 ET (10:20 GMT)
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