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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Jpmorgan Global Growth & Income Plc | LSE:JPGI | London | Ordinary Share | GB00BYMKY695 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 340.00 | 338.00 | 340.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMJPGI
RNS Number : 5884X
JPMorgan Global Growth & Income PLC
22 February 2017
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL GROWTH & INCOME PLC ('the Company')
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHSED
31ST DECEMBER 2016
Legal Entity Identifier: 5493007C3I0O5PJKR078
Information disclosed in accordance with DTR 4.2.2
CHAIRMAN'S STATEMENT
The second half of 2016 proved to be a rewarding period for the shareholders of the Company. Despite continuing political uncertainties in Europe and the surprise election victory of Donald Trump in the United States, global equity markets were strong, led higher by Wall Street. At the same time sterling remained weak against other currencies. The combination of these two factors meant that our benchmark, the MSCI AC World Index expressed in sterling terms, returned +15.3%.
At the same time the investment style of our Investment Manager, Jeroen Huysinga, moved strongly back into favour. As he discusses in his Report, several of Jeroen's stock picks performed very well. As a result the return on the Company's net assets, at +23.0%, was well ahead of the benchmark. Gearing levels rose slightly, from 3.1% to 4.6%. Following the change in the distribution and dividend policy announced at the start of the financial year, the Company's share price discount to net asset value narrowed significantly, from 14.4% at the start of the financial year to 6.5% at 31st December 2016. The Board's decision to move to a higher distribution and to quarterly dividends seems to have been well received by investors; I am pleased to note that the Board did not feel it necessary to buy back any shares during the period.
The combination of a strong rise in net assets and a significant narrowing of the discount meant that the total return to shareholders over the six month period was +36.8%.
The Company has made a steady start to 2017. As ever, the investment outlook is mixed. Expectations for future economic growth and therefore company earnings are generally being revised upwards. However, Europe faces a series of key elections this year and the erratic start to his presidency by Donald Trump is a cause for concern. Investors should remain wary of the risks associated with this period of political uncertainty and keep their expectations measured. Having said that, the Board believes that the Manager's robust investment process and extensive internal research resources will continue to be able to identify attractively priced high quality companies in which to invest.
For and on behalf of the Board
Nigel Wightman
Chairman
22nd February 2017
INVESTMENT MANAGER'S REPORT
Market environment
The MSCI All Countries World index staged a strong recovery in the second half of 2016, up 15.3% in sterling terms. Equity markets rallied sharply from the lows reached at the end of June after the surprise UK referendum result amid expectations that the Brexit vote would not trigger a broader crisis. Positive economic data-points and a solid corporate earnings season contributed to a noted improvement in investor sentiment. This was expressed in a rotation away from the more defensive 'bond proxy' areas of the market into more economically sensitive, cyclical areas, which had lagged considerably earlier in the year.
Investor sentiment and equity markets received a further boost following the election of Republican candidate, Donald Trump, as US president and news that the Republicans had won majorities in both the House of Representatives and the Senate. The rotation into more cyclical areas of the equity market continued amid anticipation that Trump's stated pro-growth policies (less regulation, tax reform and higher fiscal spending) would significantly boost economic growth and inflation prospects in the US. Banks, technology - semi conductors and autos were some of the strongest performing sectors, while consumer non durables, utilities and healthcare all lagged. Bond yields rallied, with the US 10 year Treasury yield moving above 2%, as investors started to focus on the prospect of a world with stronger economic growth and inflation. Towards the end of the period, the US Federal Reserve (Fed) increased interest rates, which, while widely anticipated, ignited speculation around further rate increases to come.
Portfolio Review
During the six months to December 2016 your Company significantly outperformed the benchmark, following challenging performance over the previous year.
In my previous comments regarding the disappointing performance we delivered for the financial year ended June 2016, I wrote: 'Quantitative easing and other manifestations of unconventional monetary policy have driven the relative valuation of bond equivalents to stratospheric levels. Our core belief is that low and negative interest rates are unlikely to be a permanent condition and our strategy continues to be positioned accordingly.'
During this unprecedented environment, we remained committed to our investment process and added to positions in many of the companies which had reached extreme valuations, while avoiding many of the (increasingly) expensive 'bond proxy' names. As investor sentiment started to reverse and shift towards company fundamentals once again, the second half of 2016 became a very constructive backdrop for our stock-picking process.
Examples of companies which contributed to performance include: Outokumpu, Morgan Stanley and Suzuki Motor. Shares in Outokumpu, a global stainless steel producer listed in Finland, rallied more than 100%. The company is finally seeing all of its divisions report positive earnings, much of which is attributable to earlier restructuring and the actions of an impressive new management team. Amid a backdrop of improving industry dynamics, Outokumpu remains a key portfolio holding given the company's dedication to cutting costs and managing production and the potential for strong long-term earnings growth.
Shares in Morgan Stanley rallied to levels not seen since 2008, as the company reported a surge in fixed income trading revenues and has continued to reduce costs. Though it still has a way to go, the results show that the company is on track to creating higher sustainable returns. The stock features a decent dividend (2%) and net buyback yield (4%) remains strong.
Suzuki, the Japan-listed auto manufacturer, has benefited from continued strength in the company's Indian operations where demand for vehicles remains high. Through its 56% stake in Maruti, Suzuki controls nearly half the auto market in India, which now rivals China in terms of economic growth.
Portfolio positioning and outlook
The political surprises last year in the US and Europe have given governments a clear mandate to reflate their economies. Investors are now expecting significant fiscal stimulus and a continued move away from the reliance on monetary policy to reinvigorate economic growth and inflation. Renewed fiscal stimulus should benefit equity markets globally, with a direct effect on some cyclical sectors. The current backdrop has provided a powerful catalyst for investors to refocus on the historically high levels of dispersion in company valuations across sectors and regions globally. While we have started to see a rotation within equity markets, there still remains a dislocation in valuations across a number of sectors, with the difference between undervalued and overpriced stocks still wide by historical standards.
This positive backdrop is not without its risks, however. Political uncertainty is set to continue in 2017, with a number of important elections in Europe, the start of Brexit negotiations and uncertainty over the impact of Trump's policies on US economic and foreign policy. Investors will be following events closely and, we believe that, selectivity will remain key. Our focus remains, as ever, on underlying company fundamentals and our dedicated team of highly experienced research analysts continue to identify attractive investment opportunities around the world.
Jeroen Huysinga
Investment Manager
22nd February 2017
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its half year report:
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Company have not changed and fall into the following broad categories: investment and strategy; market; accounting, legal and regulatory; corporate governance and shareholder relations; operational; going concern; and financial. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 30th June 2016.
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.
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 operation existence for at least twelve 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) the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at 31st December 2016, as required by the UK Listing Authority Disclosure and Transparency Rules 4.2.4R; and
(ii) the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules.
In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently; -- make judgements and accounting estimates that are reasonable and prudent;
-- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;
and the Directors confirm that they have done so.
For and on behalf of the Board
Nigel Wightman
Chairman
22nd February 2017
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31ST DECEMBER 2016
Hot Features
Premium
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 31st December 30th June 2016
2016 2015
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 - 65,913 65,913 - 723 723 - 14,343 14,343
Net foreign currency
gains - 4,619 4,619 - 272 272 - 1,143 1,143
Income from investments 1,829 - 1,829 1,710 - 1,710 5,669 - 5,669
Interest receivable
and similar
income 50 - 50 30 - 30 89 - 89
------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gross return 1,879 70,532 72,411 1,740 995 2,735 5,758 15,486 21,244
Management fee (353) (353) (706) (289) (289) (578) (593) (593) (1,186)
Performance fee
(charge)/writeback - (2,419) (2,419) - 551 551 - 1,672 1,672
Other administrative
expenses (278) - (278) (262) - (262) (572) - (572)
------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return on
ordinary activities
before finance
costs and
taxation 1,248 67,760 69,008 1,189 1,257 2,446 4,593 16,565 21,158
Finance costs (85) (85) (170) (92) (92) (184) (184) (184) (368)
------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return on
ordinary activities
before taxation 1,163 67,675 68,838 1,097 1,165 2,262 4,409 16,381 20,790
Taxation (185) - (185) (139) - (139) (407) - (407)
------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return on
ordinary
activities after
taxation 978 67,675 68,653 958 1,165 2,123 4,002 16,381 20,383
------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Return per share
(note 4)(1) 0.79p 54.73p 55.52p 0.79p 0.97p 1.76p 3.24p 13.27p 16.51p
(1) Comparative figures for the period ended 31st December 2015 have been restated following the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 8th January 2016.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31ST DECEMBER 2016
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
---------------------------- -------- -------- ----------- ------------ ----------- ----------
Six months ended 31st
December 2016 (Unaudited)
At 30th June 2016 7,746 46,670 27,401 201,167 17,170 300,154
Repurchase of shares
into Treasury - - - (3) - (3)
Net return on ordinary
activities - - - 67,675 978 68,653
Dividend paid in the
period - - - - (3,957) (3,957)
---------------------------- -------- -------- ----------- ------------ ----------- ----------
At 31st December 2016 7,746 46,670 27,401 268,839 14,191 364,847
---------------------------- -------- -------- ----------- ------------ ----------- ----------
Six months ended 31st
December 2015 (Unaudited)
At 30th June 2015 6,814 9,317 27,401 208,191 17,402 269,125
Repurchase of shares
into Treasury - - - (12,339) - (12,339)
Exercise of Subscription
shares into Ordinary
shares (39) 39 - - - -
Issue of Ordinary shares
on exercise of
Subscription shares 970 37,336 - - - 38,306
Net return on ordinary
activities - - - 1,165 958 2,123
Dividend paid in the
period - - - - (4,240) (4,240)
---------------------------- -------- -------- ----------- ------------ ----------- ----------
At 31st December 2015 7,745 46,692 27,401 197,017 14,120 292,975
---------------------------- -------- -------- ----------- ------------ ----------- ----------
Year ended 30th June
2016 (Audited)
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
Dividend paid in the
year - - - - (4,234) (4,234)
---------------------------- -------- -------- ----------- ------------ ----------- ----------
At 30th June 2016 7,746 46,670 27,401 201,167 17,170 300,154
---------------------------- -------- -------- ----------- ------------ ----------- ----------
(1) These reserves form the distributable reserves of the Company and may be used to fund distribution of profits to investors via dividend payments.
STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2016
(Unaudited) (Unaudited) (Audited)
31st December 31st December 30th June
2016 2015 2016
GBP'000 GBP'000 GBP'000
---------------------------------- -------------- -------------- ----------
Fixed assets
Investments held at fair
value through profit or loss 381,659 318,075 309,325
Current assets
Derivative financial assets 4,787 3,521 6,429
Debtors 483 525 5,855
Cash and cash equivalents 7,308 577 11,411
---------------------------------- -------------- -------------- ----------
12,578 4,623 23,695
Current liabilities
Creditors: amounts falling
due within one year (1,108) (731) (2,199)
Derivative financial liabilities (1,268) (2,826) (5,467)
---------------------------------- -------------- -------------- ----------
Net current assets 10,202 1,066 16,029
---------------------------------- -------------- -------------- ---------- Total assets less current liabilities 391,861 319,141 325,354 Creditors: amounts falling due after more than one year (25,200) (25,200) (25,200) Provisions for liabilities and charges Performance fee payable (1,814) (966) - ---------------------------------- -------------- -------------- ---------- Net assets 364,847 292,975 300,154 ---------------------------------- -------------- -------------- ---------- Capital and reserves Called up share capital 7,746 7,745 7,746 Share premium reserve 46,670 46,692 46,670 Capital redemption reserve 27,401 27,401 27,401 Capital reserves 268,839 197,017 201,167 Revenue reserve 14,191 14,120 17,170 ---------------------------------- -------------- -------------- ---------- Total equity shareholders' funds 364,847 292,975 300,154 ---------------------------------- -------------- -------------- ---------- Net asset value per share (note 5)(1) 295.0p 226.9p 242.7p
(1) Comparative figures for the period ended 31st December 2015 have been restated following the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 8th January 2016.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31ST DECEMBER 2016
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 June 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 included the report of the auditors which are 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 have been prepared in accordance with the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' of the United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the revised '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 31st December 2016.
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 30th June 2016.
3. Dividends paid(1)
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st December 31st December 30th June
2016 2015 2016
GBP'000 GBP'000 GBP'000
-------------------------- -------------- -------------- -----------
Unclaimed dividends
refunded to the Company - - (6)
2016 Final dividend
of 3.2p (2015: 3.2p(2)
) 3,957 4,240 4,240
-------------------------- -------------- -------------- -----------
Total dividends paid
in the period/year 3,957 4,240 4,234
-------------------------- -------------- -------------- -----------
1 All dividends paid in the period/year have been funded from the Revenue Reserve.
2 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 first interim dividend of 2.2p has been paid on 6th January 2017 for the financial year ending 30th June 2017, costing GBP2,721,000. A second interim dividend of 2.2p has been declared for payment on 7th April 2017 for the financial year ending 30th June 2017.
4. Return per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st December 31st December 30th June
2016 2015 2016
GBP'000 GBP'000 GBP'000
-------------------------- -------------- -------------- ------------
Return per share is
based on the following:
Revenue return 978 958 4,002
Capital return 67,675 1,165 16,381
-------------------------- -------------- -------------- ------------
Total return 68,653 2,123 20,383
-------------------------- -------------- -------------- ------------
Weighted average number
of shares in issue 123,661,285 120,405,510 123,434,710
Revenue return per share 0.79p 0.79p 3.24p
Capital return per share 54.73p 0.97p 13.27p
-------------------------- -------------- -------------- ------------
Total return per share 55.52p 1.76p 16.51p
-------------------------- -------------- -------------- ------------
Comparative figures for the period ended 31st December 2015 have been restated following the sub-division of each existing Ordinary share of 25p into five Ordinary shares of 5p each on 8th January 2016.
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st December 31st December 30th June
2016 2015 2016
---------------------- -------------- -------------- ------------
Net assets (GBP'000) 364,847 292,975 300,154
Number of shares in
issue 123,661,285 129,145,685 123,661,285
---------------------- -------------- -------------- ------------
Net asset value per
share 295.0p 226.9p 242.7p
---------------------- -------------- -------------- ------------
Comparative figures for the period ended 31st December 2015 have been restated following the sub-division of each existing Ordinary share of 25p into five Ordinary shares of 5p each on 8th January 2016.
6. Fair valuation of investments
The fair value hierarchy disclosures required by FRS 102 are given below:
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31st December 31st December 30th June
2016 2015 2016
Assets Liabilities Assets Liabilities Assets Liabilities
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ -------- ------------ -------- ------------ ----------- ------------
Level 1 381,659 - 318,075 - 309,325 -
Level 2(1) 4,787 (1,268) 3,521 (2,826) 6,429 (5,467)
------------ -------- ------------ -------- ------------ ----------- ------------
Total 386,446 (1,268) 321,596 (2,826) 315,754 (5,467)
------------ -------- ------------ -------- ------------ ----------- ------------
1 Includes forward foreign currency contracts.
JPMORGAN FUNDS LIMITED
22nd February 2017
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.
ENDS
A copy of the half year will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM
The half year 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UUUVRBSAUUAR
(END) Dow Jones Newswires
February 22, 2017 10:30 ET (15:30 GMT)
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