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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Jpmorgan Japanese Investment Trust Plc | LSE:JFJ | London | Ordinary Share | GB0001740025 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 5.00 | 1.00% | 505.00 | 504.00 | 505.00 | 508.00 | 505.00 | 507.00 | 136,215 | 11:10:48 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Mgmt Invt Offices, Open-end | 61.35M | 52.82M | 0.3431 | 14.72 | 777.53M |
From Apr 2019 to Apr 2024
TIDMJFJ
RNS Number : 9007Z
JPMorgan Japanese Inv. Trust PLC
23 May 2019
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN JAPANESE INVESTMENT TRUST PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS
ED 31ST MARCH 2019Legal Entity Identifier: 549300JZW3TSSO464R15
Information disclosed in accordance with the DTR 4.2.2
Chairman's Statement
Performance
This is my first statement to you since becoming Chairman of your Company in December last year. For the six months ended 31st March 2019 the total return on net assets was -12.7%. This compares with a total return for the same period from the Company's benchmark return, the Tokyo Stock Exchange First Section (TOPIX) Index (in sterling terms), of -9.0%. The share price total return also declined over the same period by 12.0% (from 458.0p to 398.0p).
The period under review has been disappointing for Japanese equity investors as global stock markets were generally under pressure in the latter months of 2018 reflecting, amongst other things, concerns over a slowdown in Chinese growth and global political uncertainties. Whilst improvements were seen in the Company's net asset value and share price performance in the latter months of the period this was not sufficient for the Company to post a positive result for the six months to 31st March 2019.
Short-term underperformance has, unfortunately, impacted on the longer term performance; however, the Company's long-term performance continues to be strong, with outperformance against the benchmark index over 3, 5, and 10 years of 4.5%, 28.6% and 92.5% respectively.
I am pleased to report, however that the net asset value has increased since the half year end by 3.2% as at 16th May 2019, compared to the benchmark index decline of 0.9%, over the same period, and the share price has risen by 6.0%.
The Investment Managers' Report below reviews the market and provides more detail on performance and the stocks in which the Company is invested. In late 2018 the Board agreed that the Investment Manager could hold investments up to 7.5% (previously 5%) in excess of the benchmark weighting, a level that is in line with many of the Manager's other portfolios. The Investment Managers' report below highlights how this increased flexibility has benefited the running of the portfolio.
Named Investment Manager
The Board is delighted to report that Miyako Urabe will join Nicholas Weindling as Investment Manager, with effect from 22nd May 2019. She has been involved in working on the portfolio for many years and we welcome her to the team. Shoichi Mizusawa is stepping down as investment manager with effect from 22nd May 2019. He will remain as Head of Equities in Tokyo and we thank him for the support he has provided to the Board.
Gearing
The Board of Directors believes that gearing can be beneficial to performance and sets the overall strategic gearing policy and guidelines and reviews these at each Board meeting. The Investment Manager then manages the gearing within the agreed levels. The Investment Managers' permitted gearing limit is within the range of 5% net cash to 20% geared in normal market conditions. During the period gearing ranged from 9.3% to 16.7%.
Revenue and Dividends
Dividend payments from Japanese companies are unpredictable and dividends paid to the Company's shareholders in past years should not be taken as a guide to future payments. For the year ended 30th September 2018, we paid a dividend of 5.0p per share, reflecting the available revenue for distribution. Consistent with previous years the Company will not be declaring an interim dividend.
Discount Management/share repurchases
The Board has guidelines in place with regard to the management of any discount/premium that may develop between the Company's share price and its net asset value per share and to enhance returns to shareholders. Over the period the share price discount ranged from 4.4% to 12.8%. The Company did not repurchase any shares during the six month period.
The Board
Andrew Fleming retired as Chairman at the Annual General Meeting in December; I would like again to thank him for his significant contribution to the Company over the years. At that meeting, we welcomed Sally Macdonald as a new Director. Sally has a wealth of experience in investment management in the Asian region and is an excellent addition to the Board.
The Board's annual evaluation concluded that the Board retains the various skills and experience it needs and that it works well together. The Board's retirement schedule suggests that we would not currently anticipate any Board changes until 2022. However, the Board attaches great importance to the principles on diversity in the Hampton-Alexander Review and plans to be in full conformity with its recommendations.
Outlook
Concerns over a trade war between the United States and China continue to overshadow equity markets and there are mixed indicators from global economic data. However, the stimulus coming from China should help to support growth in Asia and lead to a recovery in global exports. With the prospect of a pickup in growth in Asia, the outlook for the Japanese economy should also be positive.
Against this background I continue to believe that the investment strategy of JPMorgan Japanese Investment Trust plc remains attractive.
Christopher Samuel
Chairman
22nd May 2019
INVESTMENT MANAGERS' REPORT
Performance
Firstly, I would like to welcome Miyako Urabe to the team as a named investment manager. She has been involved in working on the portfolio for many years. Turning to the period under review, in the six months to 31st March 2019 the Company produced a total return to shareholders of -12.0% and a total return on net assets of -12.7%. These compare with a total return of -9.0% from the Company's benchmark index, the TOPIX Index, in sterling terms. Since the half year end the net asset value has increased by 3.2% as at 16th May 2019, compared to the benchmark index decline of 0.9% over the same period.
Over the last three and five years to 31st March 2019 the Company has returned 44.4% and 100.9% respectively versus 39.9% and 72.3% for the benchmark. The average level of gearing over the period was 11.7%, which detracted from returns in the falling market.
Investment Philosophy and Process
Our investment approach emphasises individual stock selection to build a portfolio of quality growth stocks with strong future growth prospects. This means that, within some broad portfolio risk limits, the Company's portfolio is likely to differ materially from the benchmark index as we will avoid companies and sectors that face structural issues even if they are a large constituent of the benchmark index.
The opportunity to find attractive opportunities is assisted by the fact that the Japanese market is under-researched when compared with other developed equity markets. With well over 50% of the constituents of the Company's benchmark index being covered by no more than one provider of broker research, there are significant opportunities to uncover hidden sources of return from Japanese equities.
Portfolio Themes
In building the Company's investment portfolio we have identified several key themes that underlie much of our stock selection. We believe that these themes, which we have used in stock selection for over five years, are long-term resilient sources of return for Japanese companies. The extent to which an individual company is a beneficiary of one or more of these themes adds to the attractions of the company. Background information on each theme is set out in the Company's Annual Report and Financial Statements. As at 31st March 2019 the portfolio breakdown by theme was as follows:
Investment Performance
The themes to which the portfolio is exposed have not changed during the review period. The financial characteristics of the portfolio are also unchanged; balance sheets and cash flows continue to be stronger, earnings growth faster and return on equity higher than the market as a whole. For example, as at 31st March 2019 the holdings in the portfolio generated an average return on equity of almost 17% compared to the benchmark return on equity of close to 12%. The portfolio valuation, as measured by the price-earnings ratio, is higher than the market average but we believe the strong long-term growth prospects of the companies we own more than justifies this.
We also have a bias to mid and smaller sized companies reflecting the fact that coverage by analysts is poor in this part of the market, providing us with the opportunity to identify investments overlooked by the broader market. These companies also tend to have more focused business models. Investors should expect to see these characteristics in the portfolio over the economic cycle.
We made a number of changes to the portfolio and reduced the gearing level from 14.7% at the end of September to 10.3% at the end of March, reflecting the change in our view on the long-term outlook for a number of portfolio companies. The largest new purchases were Fast Retailing and Oriental Land and we made a significant addition to Pan Pacific. Fast Retailing (Investment Theme - Japan Brand) is the operator of UNIQLO stores. It is expanding rapidly outside of Japan, with overseas sales accounting for more than 50% of total sales, and online. At the same time the company has significantly improved efficiency, most recently through a new large distribution center in Tokyo that only requires 10% of the people to operate it compared to the previous facility. Oriental Land (Investment Theme - Japan Brand) is the operator of Tokyo Disneyland which has an entry price half that of equivalent parks in the United States and approximately 30 million visitors per year. The company has yet to start using 'fast passes', which allow customers to move to the front of queues for some rides for an additional payment. We believe the company will start to monetize this hugely popular asset more effectively.
The largest complete sales were Mitsubishi UFJ Financial, Komatsu and Sony. We sold the position in Sony following Google's announcement of its new gaming system Stadia which allows computer games to be streamed directly without the need of a console. This poses a significant threat to one of Sony's key businesses. We believe that games content will continue to be valuable regardless of which system becomes dominant and retain holdings in Nintendo, Square Enix and Nexon as a result.
Annualised turnover for the six months to 31st March 2019 was just over 20%, down from 30% over the same period last year.
Commenting on the Trust's five largest holdings:
-- Keyence (Investment Theme - Automation) continues to be the Trust's largest position. It manufactures sensors used in factory production lines and is well-diversified in terms of geography and end-markets. It makes an operating margin of over 55% which is far ahead of its competitors and one of the highest operating margins of any manufacturing company anywhere in the world. It also generates consistently strong free cash flow and has a very strong balance sheet. In short, it exhibits many of the characteristics we look for in our investments. Its good performance was driven by strong earnings which have proven to be more robust than its peers in the recent economic slowdown.
Due to strong share price performance, the holding exceeded the previous 5% overweight benchmark limit during the six month period. In the past we would have had to reduce the holding. However, we are now able to maintain the holding up to a maximum 7.5% overweight position compared to the benchmark weighting.
-- Recruit (Investment Theme - Internet) operates a number of media businesses in Japan all of which are market leaders including those in the real estate, restaurant, bridal and used-car adverts sectors. The investment case centres on its global number one jobs website 'indeed'. Monetisation of this asset, which receives over 250 million visits per month, remains at an early stage. As such, we believe it has strong future earnings growth potential.
-- Shiseido (Investment Theme - Japan Brand) is a cosmetics manufacturer. The company's operating profit margin is lower than global peers at c.10% versus over 15% for domestic and international competitors. However, this is an improvement on the 5% reported last year. We believe that new management is turning the company around and has a strong focus on profitability. Furthermore, Japanese cosmetics companies have a significant opportunity to grow in China where per capita usage of these products is still well below developed markets.
-- Hikari Tsushin (Investment Theme - Improving Corporate Governance) has a variety of businesses generating strong recurring revenues and free cash flow from SMEs. ePark is a reservation system for online bookings at dental and medical surgeries. To date, approximately 8,000 of the 70,000 dental surgeries in Japan have adopted the system, paying a monthly fee. The company is prioritizing shareholder returns, buying back 20% of its shares over the last 10 years.
-- M3 (Investment Theme - Healthcare) operates the number one website used by doctors in Japan and the UK (amongst other countries). Its use is growing rapidly in China and we expect the company to expand both its geographic reach and the range of services it provides. The core business enables pharmaceutical companies to reduce their marketing expenses by promoting their products online. Governments are putting increasing pressure on pharmaceutical companies to reduce drug prices as they try to control healthcare expenditure. Any reduction in marketing expenses will therefore ease pressure on research and development costs. During the review period, the company prioritised up-front investment resulting in lower short-term profits and negatively impacting share price performance. However we remain holders as we believe in the company's strategy to maximise the long-term opportunity.
Relative performance was strong in the first nine months of 2018 calendar year. However, during the final quarter, being the first three months of the Company's financial year, performance was very poor. During this period both growth stocks, which tend to trade on higher short-term valuations, and stocks which had previously performed well following good results, were weak. The Company has high exposure to stocks in both of these categories as we believe that the outstanding long-term growth profiles of the companies we own more than justify their valuations. We do not have a short term trading approach and believe that a recent relative increase in share price is insufficient reason to sell a stock - there are several examples of stocks we hold that have increased several fold during our ownership.
The market volatility arose largely as a result of uncertainty around rising interest rates in the United States, concerns over global economic growth and a potential trade war between China and the US. In February and March the Company's performance significantly improved as concern over rising interest rates dissipated. In this environment investors sought out high quality companies with strong balance sheets and free cash flows with growth that does not depend on the global economic cycle. These are exactly the types of stocks the Company is exposed to. We continue to have confidence in the long-term attraction of these companies.
During the six month period the top contributing stocks were Pan Pacific Holdings, Keyence (discussed above), GMO Payment Gateway, Nexon and Ci:Z Holdings.
-- Pan Pacific Holdings (Investment Theme - stock specific) (formerly named Don Quijote) operates a chain of discount stores. It is a major disruptor in the Japanese retail industry with a low cost structure that allows it consistently to beat incumbents. It adjusts merchandise depending on the prevailing economic trend and has proved itself in both inflationary and deflationary environments. The company is increasingly successful in new areas such as food and products for tourists. For example the percentage of sales to tourists has increased from roughly 1% five years ago to over 10% now. During the period the company announced its acquisition of competitor, Uny. Stores that have completed their conversion into Don Quijote stores have seen sales rise almost two-fold. The company has a strong track record on such acquisitions, having bought Nagasakiya in 2007.
-- GMO Payment Gateway (Investment Theme - Internet) provides transaction services for cashless payments such as those used in eCommerce. 80% of transactions in Japan are still carried out in cash, which is high by global standards. In the United Kingdom, for example, over 55% transactions are now cashless. There is a strong push from the government to increase the percentage of cashless payments in Japan and GMO Payment Gateway is well positioned to benefit from this trend. It performed well due to continuing high rates of growth with sales and operating profits both growing in excess of 30%.
-- Nexon (Investment Theme - Internet) is a computer games company that aims to have games which generate steady profits and long-term cash flows. Its Dungeons and Fighters title has been one of the most popular games in China for many years. The shares performed strongly following the announcement by major shareholder NXC of its intention to sell its 50% holding in Nexon. The market responded positively to the news as a number of the potential acquirers would be able to assist with Nexon's games distribution.
-- Ci:Z Holdings (Investment Theme - Japanese Brand) is a skincare company which we believe has strong growth potential outside Japan. Johnson & Johnson acquired the company at a significant premium. It is highly unusual to see a Japanese company acquired by a foreign corporate but as attitudes to corporate governance and shareholder value slowly change in Japan it is possible that we see more such deals.
During the six month period the top detracting stocks were M3, Cyber Agent, Zozo, Pigeon and Monotaro. It is notable that four of these five stocks are online businesses. There was little change in long-term outlooks; however their share prices fell significantly during October's sell-off in growth stocks. Further details are set out either in the description of our largest positions earlier in this report, or below. We remain holders of these positions as we continue to believe in the long term investment case for each stock.
-- Cyber Agent (Investment theme - Internet) is Japan's number one online advertising agency. It also operates games for mobile phones and is investing in online television. The penetration of online advertising in Japan is much lower than other developed markets and CyberAgent continues to take share. The shares struggled following the company's downward revision to its earnings projection due to poor sales in its mobile game business.
-- Zozo (Investment Theme - Internet) (formerly called Start Today) sells clothing online. The penetration of clothes bought on the internet in Japan is low relative to other developed markets and, as such, the growth outlook is strong over the next few years. However, the share price fell because recent business initiatives have not been as successful as anticipated. The company has a good record of responding to such challenges. We believe that the long-term outlook is unchanged after the reporting period the company announced the closure of its international business.
-- Pigeon (Investment Theme - Japan Brand) is a manufacturer of baby goods with c.75% of the Japanese baby bottle market. It is expanding rapidly across the Asian region. The shares have performed strongly over several years and were caught in the general market weakening rather than there being a particular reason for the underperformance.
-- MonotaRO (Investment Theme - Internet) is an online supplier of industrial parts and products to small and medium size enterprises. Many SMEs still order via phone or fax and the opportunity is large. The company is investing for future growth which is suppressing short-term profit. However, in the long-term such investment is positive and the outlook is unchanged.
Investment outlook
The Japanese market is more cyclical than other developed markets and is impacted by global economic developments, both positively and negatively. Currently the concerns about a potential trade war between the United States and China remain ongoing and there is somewhat mixed global economic data, particularly in manufactured goods. However, the recent stimulus measures in China should prove favourable.
Your company, however, focuses on individual stocks rather than attempting to predict global economic growth. The companies we have invested in have strong structural growth outlooks, competitive positions and balance sheets and we believe they will perform well in the long-term view regardless of the twists and turns of the wider global economy. Their competitive positions and balance sheets are strong enough to withstand such issues.
Nicholas Weindling
Shoichi Mizusawa
Investment Managers
22nd May 2019
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 fall into the following broad categories: investment underperformance and strategy; market and currency; political, economic and governance; loss of investment team or portfolio manager; discount; change of corporate control of the Manager; accounting, legal and regulatory; corporate governance and shareholder relations; operational, cyber crime and financial. Information on each of these areas is given in the Strategic Report within the Annual Report and Financial Statements for the year ended 30th September 2018.
Related Parties Transactions
During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company during the period.
Going Concern
The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least twelve months from the date of the approval of this half year 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 interim financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of the affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at 31st March 2019, as required by the UK Listing Authority Disclosure Guidance and Transparency Rule ('DTR') 4.2.4R; and
(ii) the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.
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
Christopher Samuel
Chairman
22nd May 2019
statement of comprehensive income
for the six months ended 31st March 2019
Hot Features
Premium
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st March 2019 31st March 2018 30th September 2018
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
---------------------- -------- ---------- ----------- -------- -------- -------- -------- -------- ---------
(Losses)/gains on
investments held at
fair value through
profit or loss - (107,833) (107,833) - 98,795 98,795 - 179,515 179,515
Net foreign currency
losses - (3,473) (3,473) - (1,626) (1,626) - (2,915) (2,915)
Income from
investments 5,747 - 5,747 6,231 - 6,231 11,665 - 11,665
Other interest
receivable and
similar income 364 - 364 36 - 36 293 - 293
---------------------- -------- ---------- ----------- -------- -------- -------- -------- -------- ---------
Gross return/(loss) 6,111 (111,306) (105,195) 6,267 97,169 103,436 11,958 176,600 188,558
Management fee (426) (1,704) (2,130) (439) (1,755) (2,194) (905) (3,622) (4,527)
Other administrative
expenses (305) - (305) (322) - (322) (690) - (690)
---------------------- -------- ---------- ----------- -------- -------- -------- -------- -------- ---------
Net return on
ordinary activities
before finance costs
and taxation 5,380 (113,010) (107,630) 5,506 95,414 100,920 10,363 172,978 183,341
Finance costs (141) (562) (703) (112) (448) (560) (282) (1,127) (1,409)
---------------------- -------- ---------- ----------- -------- -------- -------- -------- -------- ---------
Net return on
ordinary activities
before taxation 5,239 (113,572) (108,333) 5,394 94,966 100,360 10,081 171,851 181,932
Taxation (575) - (575) (624) - (624) (1,168) - (1,168)
---------------------- -------- ---------- ----------- -------- -------- -------- -------- -------- ---------
Net return on
ordinary activities
after taxation 4,664 (113,572) (108,908) 4,770 94,966 99,736 8,913 171,851 180,764
---------------------- -------- ---------- ----------- -------- -------- -------- -------- -------- ---------
Return/(loss) per
share (note 3) 2.89p (70.43)p (67.54)p 2.96p 58.89p 61.85p 5.53p 106.58p 112.11p
statement of changes in equity
for the six months ended 31st March 2019
Called up Capital
share redemption Other Capital Revenue
capital reserve reserve reserves reserve(1) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------- ---------- ----------- -------- ---------- ----------- ----------
Six months ended 31st March 2019 (Unaudited)
At 30th September 2018 40,312 8,650 166,791 623,207 12,580 851,540
Net return on ordinary activities - - - (113,572) 4,664 (108,908)
Dividend paid in the period (note 4) - - - - (8,062) (8,062)
---------------------------------------------- ---------- ----------- -------- ---------- ----------- ----------
At 31st March 2019 40,312 8,650 166,791 509,635 9,182 734,570
---------------------------------------------- ---------- ----------- -------- ---------- ----------- ----------
Six months ended 31st March 2018 (Unaudited)
At 30th September 2017 40,312 8,650 166,791 451,356 11,729 678,838
Net return on ordinary activities - - - 94,966 4,770 99,736
Dividend paid in the period (note 4) - - - - (8,062) (8,062)
---------------------------------------------- ---------- ----------- -------- ---------- ----------- ----------
At 31st March 2018 40,312 8,650 166,791 546,322 8,437 770,512
---------------------------------------------- ---------- ----------- -------- ---------- ----------- ----------
Year ended 30th September 2018 (Audited)
At 30th September 2017 40,312 8,650 166,791 451,356 11,729 678,838
Net return on ordinary activities - - - 171,851 8,913 180,764 Dividend paid in the year (note 4) - - - - (8,062) (8,062) ---------------------------------------------- ---------- ----------- -------- ---------- ----------- ---------- At 30th September 2018 40,312 8,650 166,791 623,207 12,580 851,540 ---------------------------------------------- ---------- ----------- -------- ---------- ----------- ----------
1. This reserve forms the distributable reserve of the Company and may be used to fund distributions to investors via dividend payments.
statement of financial position
at 31st March 2019
(Unaudited) (Unaudited) (Audited)
31st March 2019 31st March 2018 30th September 2018
GBP'000 GBP'000 GBP'000
--------------------------------------------------------- ---------------- ---------------- --------------------
Fixed assets
Investments held at fair value through profit or loss 810,064 895,681 976,724
--------------------------------------------------------- ---------------- ---------------- --------------------
Current assets
Debtors 3,417 4,430 7,001
Cash and cash equivalents 30,182 6,884 7,278
--------------------------------------------------------- ---------------- ---------------- --------------------
33,599 11,314 14,279
Creditors: amounts falling due within one year (19,485) (2,423) (4,951)
--------------------------------------------------------- ---------------- ---------------- --------------------
Net current assets 14,114 8,891 9,328
--------------------------------------------------------- ---------------- ---------------- --------------------
Total assets less current liabilities 824,178 904,572 986,052
--------------------------------------------------------- ---------------- ---------------- --------------------
Creditors: amounts falling due after more than one year (89,608) (134,060) (134,512)
--------------------------------------------------------- ---------------- ---------------- --------------------
Net assets 734,570 770,512 851,540
--------------------------------------------------------- ---------------- ---------------- --------------------
Capital and reserves
Called up share capital 40,312 40,312 40,312
Capital redemption reserve 8,650 8,650 8,650
Other reserve 166,791 166,791 166,791
Capital reserves 509,635 546,322 623,207
Revenue reserve 9,182 8,437 12,580
--------------------------------------------------------- ---------------- ---------------- --------------------
Total shareholders' funds 734,570 770,512 851,540
--------------------------------------------------------- ---------------- ---------------- --------------------
Net asset value per share (note 5) 455.6p 477.8p 528.1p
statement of cash flows
for the six months ended 31st March 2019
(Unaudited) (Unaudited) (Audited)
31st March 2019 31st March 2018 30th September 2018
GBP'000 GBP'000 GBP'000
------------------------------------------------------------ ---------------- ---------------- --------------------
Net cash outflow from operations before dividends and
interest (1,971) (2,397) (4,461)
Dividends received 5,209 5,056 10,902
Interest paid (723) (579) (1,262)
------------------------------------------------------------ ---------------- ---------------- --------------------
Net cash inflow from operating activities 2,515 2,080 5,179
------------------------------------------------------------ ---------------- ---------------- --------------------
Purchases of investments (86,613) (161,104) (404,862)
Sales of investments 149,709 137,451 379,693
Settlement of foreign currency contracts (63) 12 15
------------------------------------------------------------ ---------------- ---------------- --------------------
Net cash inflow/(outflow) from investing activities 63,033 (23,641) (25,154)
------------------------------------------------------------ ---------------- ---------------- --------------------
Dividends paid (8,062) (8,062) (8,062)
Drawdown of bank loan - 32,989 32,990
Drawdown of senior secured loan note - - 88,967
Repayment of bank loan (34,512) - (90,235)
------------------------------------------------------------ ---------------- ---------------- --------------------
Net cash (outflow)/inflow from financing activities (42,574) 24,927 23,660
------------------------------------------------------------ ---------------- ---------------- --------------------
Increase in cash and cash equivalents 22,974 3,366 3,685
------------------------------------------------------------ ---------------- ---------------- --------------------
Cash and cash equivalents at start of period 7,278 3,551 3,551
Exchange movements (70) (33) 42
Cash and cash equivalents at end of period 30,182 6,884 7,278
------------------------------------------------------------ ---------------- ---------------- --------------------
Increase in cash and cash equivalents 22,974 3,366 3,685
------------------------------------------------------------ ---------------- ---------------- --------------------
Cash and cash equivalents consist of:
Cash and short term deposits 30,182 6,884 7,278
------------------------------------------------------------ ---------------- ---------------- --------------------
Notes to the financial statements
for the six months ended 31st March 2019
1. Financial statements
The information contained within the financial statements in this half year report has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 30th September 2018 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 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 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 and updated in February 2018.
FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 31st March 2019.
All of the Company's operations are of a continuing nature.
The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 30th September 2018.
3. Return/(loss) per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st March 2019 31st March 2018 30th September 2018
GBP'000 GBP'000 GBP'000
---------------------------------------------------- ----------------- ----------------- --------------------
Return/(loss) per share is based on the following:
Revenue return 4,664 4,770 8,913
Capital (loss)/return (113,572) 94,966 171,851
---------------------------------------------------- ----------------- ----------------- --------------------
Total (loss)/return (108,908) 99,736 180,764
---------------------------------------------------- ----------------- ----------------- --------------------
Weighted average number of shares in issue 161,248,078 161,248,078 161,248,078
Revenue return per share 2.89p 2.96p 5.53p
Capital (loss)/return per share (70.43)p 58.89p 106.58p
---------------------------------------------------- ----------------- ----------------- --------------------
Total (loss)/return per share (67.54)p 61.85p 112.11p
---------------------------------------------------- ----------------- ----------------- --------------------
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st March 2019 31st March 2018 30th September 2018
GBP'000 GBP'000 GBP'000
------------------------------------------------------- ----------------- ----------------- --------------------
2018 final dividend paid of 5.0p (2017: 5.0p) per
share 8,062 8,062 8,062
------------------------------------------------------- ----------------- ----------------- --------------------
All dividends paid in the period have been funded from the revenue reserve.
No interim dividend has been declared in respect of the six months ended 31st March 2019 (2018: nil).
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st March 2019 31st March 2018 30th September 2018
Net assets (GBP'000) 734,570 770,512 851,540
Number of shares in issue 161,248,078 161,248,078 161,248,078
--------------------------- ----------------- ----------------- --------------------
Net asset value per share 455.6p 477.8p 528.1p
--------------------------- ----------------- ----------------- --------------------
22nd May 2019
For further information, please contact:
Faith Pengelly
For and on behalf of
JPMorgan Funds Limited, Secretary 020 7742 4000
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
JPMORGAN FUNDS LIMITED
ENDS
A copy of the half year will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR BUGDUSSDBGCD
(END) Dow Jones Newswires
May 23, 2019 02:00 ET (06:00 GMT)
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