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RNS Number : 2104X JPMorgan Global Growth & Income PLC 19 March 2026
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL GROWTH & INCOME PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED
31ST DECEMBER 2025
JPMorgan Global Growth & Income plc (the 'Company' or 'JGGI') announces
its half year results for the six-months ended 31st December 2025.
Legal Entity Identifier: 5493007C3I0O5PJKR078
Information disclosed in accordance with DTR 4.2.2
HIGHLIGHTS
· NAV total return of +9.1% (with debt at fair value) compared with
+13.3% for the MSCI All Countries World Index in sterling terms (total return
with net dividends reinvested) (the "Benchmark"). Share price total return of
+7.1% for the period.
· Five year cumulative NAV total return of +90.6% compared with +72.7%
for the Benchmark; five year share price cumulative total return of +79.4%.
· Ten year cumulative NAV total return of +275.2% compared with 232.0%
for the Benchmark; ten year share price cumulative total return of +288.0%.
· The Company remains one of the top performers in its peer group over
five and ten years.
· The Company repurchased 19,086,840 shares into Treasury at a total
cost of £109.7 million at a 3.0% average discount, adding 0.6p to NAV per
share.
· Dividends: two interim dividends of 5.75p per share (total 11.50p in
the period) were paid on 7th October and 30th December 2025; for the financial
year commencing 1st July 2025, the Board intends to pay dividends totalling
23.0p per share (5.75p per quarter), a 0.9% year on year increase. Since
adoption of the enhanced policy in 2016, dividends rose by 613%, with 22.80p
paid for FY2025; a third interim dividend has been declared for payment on 9th
April 2026 (record 6th March; ex div 5th March).
James Macpherson, Chairman of JGGI, commented:
"Despite the underperformance in recent quarters, the Company's long term
track record remains resilient, and it has significantly outperformed the
Benchmark over the last five years. My fellow Directors and I share the
Portfolio Managers' view that the Company is well placed to navigate the
current challenging market environment, and to benefit as long term
fundamentals resume their role as key market drivers… We are therefore
confident that the Company will continue to deliver attractive returns to
shareholders over the long term."
Portfolio Managers, Helge Skibeli, James Cook and Sam Witherow, commented:
"We continue to believe that global stock picking across our core investment
universe offers attractive rewards for investors over the long-term, and we
see many well-priced opportunities. The Company has exposure to several
long-term trends, such as the rapid adoption of AI tools and cloud computing,
which we expect will underpin market returns over the medium to long-term.
"While the extent and speed of the current relative drawdown have been
sharp… we have seen similar market environments in the past… Historically,
these market shifts have typically been short lived and the rebound is often
substantial… we are confident that our investment process harbours pent up
opportunities for alpha generation."
Chairman's Statement
Introduction
The six months ending 31st December 2025 saw a positive period for global
equity markets. However, conditions remained volatile as a result of
geopolitical events and the uncertainty surrounding US trade and economic
policy. Following initial concerns in the first half of 2025 over President
Trump's 'America First' agenda, the second half of the year saw easing trade
tensions and a surge in artificial intelligence (AI) investment. This boosted
stocks considered to be AI winners, albeit technology stocks had mixed results
as high expectations and rising capital expenditure fuelled concerns of an AI
bubble.
Performance
The Company generated a positive return over the six months to 31st December
2025, although its NAV total return of 9.1% lagged the 13.3% return from the
MSCI AC World Index (the Benchmark). Despite the underperformance in recent
quarters, the Company's long-term track record remains resilient and it has
significantly outperformed the Benchmark over the last five years, with a NAV
total return of 90.6% compared with 72.7% for the Benchmark.
Against the backdrop of volatile markets, the underperformance in the second
half of 2025 was largely due to stock selection, with the portfolio
underperforming in a market that strongly favoured short term momentum over
long term fundamentals. For over a year now the Portfolio Managers have been
wary of the sustainability of profit margins and the degree to which momentum
has been a factor driving stock returns. Consequently they have had a
preference for higher-quality stocks that could demonstrate superior and
resilient earnings growth but this strategy has not been rewarded over the
period. Positions in traditionally defensive areas, particularly high quality
consumer and healthcare companies, detracted from returns as earnings
downgrades proved deeper and more prolonged than anticipated. In addition, the
portfolio's underweight exposure to certain large technology stocks weighed on
relative returns. The Manager discusses recent market conditions and stock
selection in further detail in the Investment Manager's Report below.
Performance attribution
Six months ended 31st December 2025
% %
Contributions to total returns
Benchmark return 13.3
Asset allocation (0.5)
Stock selection (3.8)
Currency effect 0.1
Gearing/cash 0.2
Investment Manager's contribution (4.0)
Portfolio total return 9.3
Management fee/other expenses (0.2)
Net asset value return - prior to structural effects 9.1
Structural effects
Share buy-backs 0.1
Net asset value total return - Debt at par value 9.2
Impact of Fair Valuation of Debt (0.1)
Net asset value total return - Debt at fair value 9.1
Ordinary Share Price Total Return 7.1
Source: Morningstar/J.P. Morgan. All figures are on a total return basis.
A glossary of terms and APMs is provided on pages 33 to 36 of the full
Half-Year Report.
Dividend Policy
Shareholders should be aware that the Company does not have a progressive
dividend policy. However, since the adoption of the enhanced dividend policy
in 2016, shareholders in the Company will have seen an increase in their
dividends of 613% based on a total dividend of 22.80 pence per share for the
financial year ended 30th June 2025, equivalent to almost 24.5% per annum. For
the current financial year commencing 1st July 2025, the Company intends to
pay dividends totalling 23.0 pence per share (5.75 pence per share per
quarter), which represents an increase of 0.9% on the last financial year's
total dividend.
The third interim dividend with respect to the current year was declared by
the Board on 11th February 2026 and will be paid on 9th April 2026. The record
date is 6th March 2026, and the ex-dividend date is 5th March 2026. The final
interim dividend will be declared in May 2026 and paid in June 2026.
The Company's capacity to part-fund dividends from its significant level of
reserves provides it with the means to meet our investors' desire for regular
income, combined with clarity on dividend payments for the coming year. It
also allows our Portfolio Managers to invest where they see the most
attractive opportunities, as they are not constrained by the need to invest
only in high dividend-paying companies to meet the Company's dividend policy.
Instead, they are free to invest in non- or low-dividend paying companies,
with a view to benefitting from the long-term capital growth prospects of
these businesses. The Company's distributable reserves stood at £2.3 billion
in aggregate as at 31st December 2025.
Share buybacks and Treasury
The Company's long-term policy of repurchasing its ordinary shares with the
aim of maintaining an average discount of around 5% or less, calculated with
debt at fair value, remains unchanged.
During the review period, a total of 19,086,840 shares were repurchased into
Treasury at a total cost of £109.7 million at a weighted-average discount of
3.0%, adding 0.6p to the NAV per share. Following these repurchases, there
were 20,769,292 ordinary shares held in Treasury at the end of the period.
In the six months to 31st December 2025, the Company's share price traded
within the range stated in the discount policy above and, at the end of the
half year period, the discount was 2.6%. The Board has sought to manage the
volatility of the Company's discount by actively repurchasing shares, ensuring
it does not drift wider than 5% in normal market conditions.
Since 31st December 2025, the Company has bought back an additional 12,899,322
shares into Treasury at a weighted-average discount of 3.1%, adding 0.3p to
the NAV per share. The share price discount is currently 2.6%. The Board
continues to monitor the impact of share buybacks on both the share price and
the discount.
Gearing
The Company's gearing policy is set by the Board and remains unchanged. Our
Portfolio Managers use gearing flexibly and continually assess opportunities
to deploy it when there is potential to enhance shareholder value. At the
start of the period the Company had net cash of 0.6%, with gearing varying
between net cash of 1.3% and gearing of 1.8% during the period. As explained
in the Investment Manager's Report, the Portfolio Managers remain cautious
near-term and this is reflected in the Company's net cash position of 0.5% at
the end of December 2025.
In its last annual report, the Company reported that it had taken on €30
million of senior secured notes as part of the combination with Henderson
International Income Trust plc (HINT). It also disclosed the purchase of the
remaining 0.06% (£125) issue of its £200,000 secured 4.5% Perpetual
Debenture 1895 which, consequentially, has now been fully redeemed.
Currency Hedging
The Company continues its passive currency hedging strategy, which has been in
place since 2009. The strategy aims to make stock selection the predominant
driver of overall portfolio performance relative to the Benchmark. This is a
risk reduction measure, designed to eliminate most of the differences between
the portfolio's currency exposure and that of the Company's Benchmark. As a
result, the returns derived from the portfolio's exposure to currencies may
differ materially from that of the Company's competitors, some of whom opt
instead to fully or partially hedge currency exposure over the short-term.
Half Year Report review
In light of the four mergers undertaken by the Company in the past four years
and the resultant increased complexity of the financial statements, the Board
has engaged its auditors, Ernst & Young LLP, to undertake a review of this
Half Year Report. The Board will decide annually whether such a review is
required, dependent upon the level of corporate activity undertaken by the
Company during the year.
The Board
As disclosed in the Company's last Annual Report, Richard Hills, the former
chairman of HINT, joined our Board for a transition period of 12 months from
May 2025, lifting the number of directors to seven. The Board also disclosed
that Jane Lewis, who holds the role of Senior Independent Director (SID), will
stay on the Board until May 2026, at which time both Jane and Richard will
retire. Following Jane's retirement from the Board, I am pleased to announce
that Sarah Whitney will take over the roles of SID and Chair of the Nomination
Committee. Upon assuming these roles, Sarah will step down as Chair of the
Audit Committee, with Rakesh Thakrar succeeding her. On behalf of my fellow
Directors, I would like to take this opportunity to thank Richard for his
invaluable contributions during the combination process and Jane for her
dedication to the Company since joining the Board in September 2022, and in
particular for her exceptional dedication and insight as SID and Chair of the
Nomination Committee.
After close consideration of its composition and succession plans, the Board
has decided that having five independent non-executive directors is
appropriate for the time being, while still satisfying the Board's commitment
to diversity and inclusivity. This decision will be kept under review as part
of the Board's ongoing succession planning.
Stay in Touch
The Board would like to ensure that all shareholders are kept well-informed
about the Company's progress, and we would like to encourage those who have
not already done so to please consider signing up for our email updates. You
can opt in by scanning the QR Code on page 2 of the full Half-Year Report or
via the following link: tinyurl.com/JGGI-Sign-Up.
Outlook
The Board recognises that this has been a disappointing period for relative
performance with current events in the Middle East adding to uncertainty.
However, history suggests that periods when company valuations disconnect from
their long-term earnings potential are often temporary and, in the case of
this fund, since the 'dot-com' break in 2001, the subsequent recovery in
performance has exceeded the previous downturn.
My fellow Directors and I share the Portfolio Managers' view that the Company
is well placed to navigate the current challenging market environment, and to
benefit as long-term fundamentals resume their role as key market drivers.
Importantly in this respect, the portfolio is exposed to several powerful
structural themes, including the AI revolution and cloud computing, which are
expected to support earnings growth over the medium to long-term.
The Board also believes that the Portfolio Managers' ability to draw on the
deep resources of J.P. Morgan Asset Management's global research platform and
proprietary analytical tools, provides the Company with a durable competitive
advantage. We are therefore confident that the Company will continue to
deliver attractive returns to shareholders over the long-term, and look
forward to reporting back to you on the Company's future progress.
Thank you for your ongoing support in the Company.
James Macpherson
Chairman
18th March 2026
Investment Manager's Report
Introduction
In the six months to 31st December 2025, the Company generated a NAV total
return of +9.1%, compared with a 13.3% increase in the MSCI AC World Index
(the 'Benchmark'). Although the Company underperformed its comparable
Benchmark over this period, it has delivered positive cumulative total returns
of 90.6% over the last five years, well ahead of the Benchmark return of
72.7%. This performance has been consistent over time, as the portfolio has
outperformed in six of the last seven calendar years. Please see page 6 of the
full Half-Year Report for details.
In this report, we discuss the main drivers of the Company's recent returns,
including the reasons for the portfolio's underperformance over the review
period. We also provide our market outlook and explain how we have positioned
the portfolio to benefit from both expected near-term developments and
longer-term structural trends.
The Global Market Backdrop
Like the first half of 2025, the second half was eventful. Global equity
markets were volatile, in response to shifting US policy, geopolitical events
and changing trade dynamics. The year began with uncertainty over the new
Republican administration's 'America First' agenda, which dampened confidence
and raised global growth concerns, particularly after the April announcement
of tariffs on many of the US's trading partners. In the second half of the
year, easing trade tensions and a surge in artificial intelligence (AI)
investment - especially from Chinese technology firms - boosted stocks seen as
AI winners. The final three months of the year brought moderate gains,
although market sentiment fluctuated between optimism and caution. US equities
were aided by progress in trade negotiations and three interest rate cuts from
the Federal Reserve, while technology stocks had mixed results, with the
positive impact of high expectations and rising capital expenditure (capex)
tempered by increasing concerns about an AI bubble. Rising geopolitical
tensions around the world also impacted equity markets, with defense exposed
names enjoying a resurgence on the back of growing uncertainty around US
foreign policy commitments.
Six-Month Performance
The Company uses an investment process that, at its heart, relies on strong
company fundamentals and long-term earnings potential being recognised by
investors. However, this period saw short-term sentiment driving investor
preferences, which is an environment that does not favour our investment
process.
We must also acknowledge that stock selection detracted from performance for
some of the names held in the portfolio, but also not capturing parts of the
market which performed well. For example, the rally in some value-oriented
sectors internationally, coupled with underweights to some large index names
which performed incredibly strongly, further impacted performance negatively.
Nonetheless, the resultant drawdown in excess returns is as disappointing to
us as it is for our investors. We have seen some instances of momentum-driven
markets in the past, including the Covid-19 pandemic and Russia's invasion of
Ukraine, and, while history is not a guide to the future, maintaining our
underweight to momentum during short-lived bouts of market dislocation has
ultimately proved to be the right decision. Historically, associated market
dislocations have provided good opportunities to buy high-quality companies at
reasonable valuations. For example, in 2020 we avoided expensive stay-at-home
winners at the height of the Covid pandemic, and then, in late 2022, we
embraced big tech near the trough of the growth sell-off. Both these decisions
were quite quickly rewarded as the sentiment underpinning these market
developments dissipated.
However, the current market exuberance, fueled by the AI boom, has compressed
investor time horizons, with markets fixated on short-term winners and losers
and prone to reward the most recent results. This is not only visible in the
premium valuations of US AI stocks and European defence stocks, but also in
sectors away from the headlines. As just one example of such market
dislocation, within the retail sector, Costco, the American discount retailer
that we do not own, is benefiting from price-sensitive consumers trading down,
while another US retailer, Lowes, which we do own, specialises in home
improvements, has seen sales suppressed by high interest rates. Both companies
have similar long-term earnings growth potential, but Costco currently trades
on 47x this year's earnings, versus Lowes, which trades on just 22x.
With hindsight, we underestimated the potential persistence of the momentum
rally. We followed the valuation signals of the process too closely and
allowed the portfolio's underweight exposure to momentum to become too large.
Among our technology holdings, the Company has benefited from strong positive
stock selection since 2018, especially from 2022 until mid-2024, which marked
the peak of our AI positioning's contribution to performance. However, during
the review period, growing index concentration detracted from the portfolio's
alpha. Our decision not to hold Alphabet and Broadcom earlier in the period -
both of which saw substantial index gains - meant we missed out on their
strong rallies. Our preference for other AI ecosystem stocks (such as NVIDIA
and Taiwan Semiconductor Manufacturing Company (TSMC)), which we favour due to
their strong competitive positions within the AI ecosystem, did not offset
that negative impact. We believe they are well positioned as demand for AI
infrastructure and data centres continues to grow.
Additionally, individual stock decisions in Healthcare companies further
weighed on relative returns due to some near-term challenges. Novo Nordisk, a
longstanding position that has been a strong contributor over time, lost
market share amid rising competition and management indecision. UnitedHealth
Group, another long-term holding, suffered from operational missteps and
regulatory scrutiny, leading to guidance cuts and leadership changes that
unsettled the market.
These stock-specific setbacks, across several different sectors and regions,
amplified the portfolio's challenges in a momentum-driven market, underscoring
the importance of timely risk management and adaptability.
Lessons learned
In response to current market conditions and the Company's resultant
underperformance, we have reduced exposure to stocks with near-term
challenges. Our strategy often involves investing in companies with negative
short-term earnings revisions, as they tend to offer attractive entry points
and strong long-term valuation signals, despite typically having negative
short-term price momentum. While this approach works in most market
environments, as it did during the pandemic and at the beginning of the war in
Ukraine, it becomes problematic when price momentum dominates for extended
periods. Over the past year, such exposures detracted from relative
performance and needed to be curtailed accordingly. Although we remain
confident in the long-term prospects of holdings like Novo Nordisk and
UnitedHealth Group, our conviction is lower than in the past, and we recognise
the importance of refining and strengthening our risk positioning framework to
better navigate these challenges. Therefore, we reduced exposure to both
names.
Additionally, we are seeking to better manage portfolio underweights to the
index's largest companies. The high concentration of tech mega-cap stocks in
the index now means they can significantly impact portfolio performance,
making it essential to closely monitor and quickly adapt underweight positions
as required. To better navigate this new landscape, we are therefore adapting
our risk model to be more balanced between overweights and underweights.
Specifically, we have recently added positions in Alphabet and Broadcom as
their index weights surged, although we remain underweight both names.
Finally, we have balanced near-term momentum with long-term valuation signals.
Today, the portfolio has neutral exposure to momentum and earnings revisions.
We have achieved this through holding stocks we believe to be long-term
structural winners along with near-term outperformers. In both instances
though, we do not compromise on the valuation signal that meets our criteria
for purchase. Our decision to reduce active weights in some holdings with
near-term challenges, as discussed above, also reflects this more balanced
approach. This positioning should enable us to better weather this period
during which our longer-term valuation framework is out of fashion. And we are
ready to recalibrate further as market conditions evolve.
We would like to stress that these changes do not represent a shift in our
underlying investment process. On the contrary, even after these changes which
were made during the final quarter of 2025, the portfolio remains ~23%
overweight Premium and Quality companies and ~31% overweight companies with
the highest expected returns. However, it feels prudent at present to
construct the portfolio to better navigate the prevailing backdrop.
Portfolio Positioning
As a result of these changes, the Company has evolved over the past year and
is now more balanced across the growth and cyclicality spectrum. We continue
to focus on stock-specific drivers, but we are anchored in a balanced approach
that seeks to capture both value and growth opportunities, while managing
risk.
Within the high growth cohort of companies, which includes names such as
semiconductor manufacturers TSMC and its Dutch supplier ASML, we have reduced
the overall active weighting. AI euphoria remained elevated over the review
period and we took the opportunity to take profits from parts of the market
where we believe long-term valuations were no longer as attractive. For
example, we sold the Japanese semiconductor equipment manufacturer Disco
which, whilst a high-quality name, has a more volatile order book than we
originally anticipated. We redeployed the proceeds of these disposals to other
areas, notably manufacturers of less advanced, analogue semiconductors (such
as Germany's Infineon) where we believe valuations are more reasonable.
In the low-growth cyclicals cohort, we added significantly to our exposure to
interest rate sensitive businesses. We have become more positive on banks, as
the possibility of a steeper yield curve is likely to benefit many financial
institutions by improving their net interest margin spreads. This sector
rotation also reflects our view that financials may offer more attractive
risk-reward potential in an environment supported by deregulation, especially
in the US. Key additions to positions or new purchases included Japanese bank
Mitsubishi UFJ, American Express, a credit card provider and Charles Schwab, a
US financial services and asset management company. We reduced the overall
weight to industrial cyclicals, but we continue to find some interesting
opportunities within this space among businesses with stock-specific drivers.
For example, we own Swedish vehicle and equipment manufacturer Volvo, as we
believe truck orders are at a cyclical trough, and a replacement cycle driven
by pending regulatory change suggests further upside potential. We also bought
Howmet Aerospace, as this US company's strategic focus on lightweight
materials and innovative manufacturing processes is expected to enhance its
competitive edge in the aerospace and defence sectors - industries seeing
increased demand due to escalating geopolitical tensions.
Finally, amongst low growth defensives, we added moderately to the overall
active weight. Within Healthcare, we maintained our core holding in Johnson
& Johnson (JNJ), a global healthcare leader. JNJ has delivered strongly on
our thesis of operational execution and resilient franchises, including its
oncology, immunology and cardiovascular units. The largest reduction in
Healthcare, was a reduction in our positions in Novo Nordisk and
UnitedHealth, as described earlier. Conversely, we increased the weighting to
defensive consumer names by initiating new positions in McDonald's and Coca
Cola.
Outlook
We continue to believe that global stock picking across our core investment
universe offers attractive rewards for investors over the long-term, and we
see many well-priced opportunities. The Company has exposure to several
long-term trends, such as the rapid adoption of AI tools and cloud computing,
which we expect will underpin market returns over the medium to long-term.
We are fortunate to be assisted by the support of J.P. Morgan Asset
Management's fundamental global research platform (comprised of over 80 career
analysts with an average experience of over 20 years). We are also the
beneficiaries of continued advancements in technology, including SpectrumTM,
our proprietary investment management tool. These resources give us an
information advantage that we believe is difficult to replicate and serve to
complement the team's extensive investment management experience. This synergy
between technology and experience is essential when navigating challenging
markets, and we believe we have the right resources in place to chart a path
for recovery from here.
While the extent and speed of the current relative drawdown have been sharp,
during times like these we believe it is crucial to stay true to our tried and
tested investment process, especially when it has enabled us to deliver many
years of consistent alpha across most of the sectors and regions.
It is also important to appreciate that we have seen similar market
environments in the past, when share price performance has disconnected from
long-term company fundamentals. Historically, these market shifts have
typically been short-lived and the rebound is often substantial. While there
is no guarantee that past instances of rebounds will be repeated, we are
confident that our investment process harbours pent-up opportunities for alpha
generation.
For and on behalf of the
Investment Manager
Helge Skibeli
James Cook
Sam Witherow
Portfolio Managers
18th March 2026
Interim Management Report
The Company is required to make the following disclosures in its half year
report:
Principal Risks
The principal risks faced by the Company have not changed from those reported
in the Annual Report and Financial Statements for the year ended 30th June
2025 and, are as follows: market risk, geopolitical risk, cyber security,
investment and strategy, and operational risk. Information on principal and
emerging risks faced by the Company is given in the Strategic Report within
the 2025 Annual Report & Financial Statements.
Related Parties Transactions
During the first six months of the current financial year, no transactions
with related parties have taken place which would have materially affected the
financial position or the performance of the Company. Details of related party
transactions are contained within the 2025 Annual Report & Financial
Statements.
Going Concern
The Directors believe, having considered the Company's investment objectives,
risk management policies, capital management policies and procedures, nature
of the portfolio, including an analysis of the portfolio's liquidity, 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. The Directors
further believe 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. Gearing levels and compliance with the covenants of
its secured bonds and senior secured notes are regularly reviewed by the
Manager and Board. For these reasons, they consider there is reasonable
evidence to continue to adopt the going concern basis in preparing the
condensed 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 half yearly financial report have 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 2025, as required by the
Disclosure Guidance 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 Disclosure Guidance and
Transparency Rules.
In order to provide these confirmations, and in preparing these condensed set
of 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 condensed
set of financial statements; and
• prepare the condensed set of 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
James Macpherson
Chairman
18th March 2026
INDEPENDENT REVIEW Report
Conclusion
We have been engaged by JPMorgan Global Growth & Income plc ('the
Company') to review the condensed set of financial statements in the
Half-Yearly financial report for the six months ended 31st December 2025 which
comprises the Condensed Statement of Comprehensive Income, Condensed Statement
of Changes in Equity, Condensed Statement of Financial Position, Condensed
Statement of Cash Flows and related notes 1 to 7. We have read the other
information contained in the Half Yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the Half-Yearly
financial report for the six months ended 31st December 2025 is not prepared,
in all material respects, in accordance with FRS 104 'Interim Financial
Reporting' and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 2, the annual financial statements of the Company are
prepared in accordance with United Kingdom Generally Accepted Accounting
Practice. The condensed set of financial statements included in this
Half-Yearly financial report has been prepared in accordance with the
Financial Reporting Standard FRS 104 'Interim Financial Reporting'.
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the Directors
The Directors are responsible for preparing the Half-Yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the Half-Yearly financial report, the Directors are responsible
for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to
liquidate the Company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibility for the review of the financial information
In reviewing the Half-Yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
Half-Yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the Company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the Company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
London
18th March 2026
Condensed Statement of Comprehensive Income
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2025 31st December 2024 30th June 2025
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value through profit or loss - 270,998 270,998 - 68,311 68,311 - 13,829 13,829
Foreign currency exchange gains/(losses) - 1,138 1,138 - (5,996) (5,996) - (11,476) (11,476)
Income from investments 23,209 206 23,415 18,359 - 18,359 46,212 87 46,299
Interest receivable and similar income 3,394 - 3,394 3,715 - 3,715 6,985 - 6,985
Gross return 26,603 272,342 298,945 22,074 62,315 84,389 53,197 2,440 55,637
Management fee (1,577) (4,731) (6,308) (1,362) (4,087) (5,449) (2,332) (6,998) (9,330)
Other administrative expenses (932) - (932) (872) - (872) (1,818) - (1,818)
Net return/(loss) before finance costs and taxation 24,094 267,611 291,705 19,840 58,228 78,068 49,047 (4,558) 44,489
Finance costs (759) (2,277) (3,036) (640) (1,917) (2,557) (1,301) (3,902) (5,203)
Net return/(loss) before taxation 23,335 265,334 288,669 19,200 56,311 75,511 47,746 (8,460) 39,286
Taxation (2,561) (2) (2,563) (2,554) 183 (2,371) (5,440) 143 (5,297)
Net return/(loss) after taxation 20,774 265,332 286,106 16,646 56,494 73,140 42,306 (8,317) 33,989
Return/(loss) per ordinary share 3.63p 46.30p 49.93p 3.36p 11.40p 14.76p 8.27p (1.63)p 6.64p
(note 3)
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period. In the
year ended 30th June 2025 the Company acquired the assets and liabilities of
Henderson International Income Trust plc ('HINT') following a scheme of
reconstruction.
The 'Total' column of this statement is the profit and loss account of the
Company, and the 'Revenue' and 'Capital' columns represent supplementary
information prepared under guidance issued by the Association of Investment
Companies.
The 'Net return/(loss) after taxation' represents the profit/(loss) for the
period and also the total comprehensive income.
The notes below form an integral part of these financial statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Called up Share Capital
share premium redemption Other Capital Revenue
capital account reserve reserve(1,2) reserves(2) reserve(2) Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months ended 31st December 2025 (Unaudited)
At 30th June 2025 29,095 937,497 27,401 1,207,237 978,991 - 3,180,221
Repurchase of ordinary shares into Treasury - - - (109,668) - - (109,668)
Net return after taxation - - - - 265,332 20,774 286,106
Dividends paid in the period (note 4) - - - - (45,032) (20,774) (65,806)
At 31st December 2025 29,095 937,497 27,401 1,097,569 1,199,291 - 3,290,853
Six months ended 31st December 2024 (Unaudited)
At 30th June 2024 24,017 385,574 27,401 1,221,808 1,077,142 - 2,735,942
Issue of new ordinary shares 1,534 175,158 - - - - 176,692
Costs in relation to issue of ordinary shares - (182) - - - - (182)
Cost in relation to placing programme(3) - - - - (500) - (500)
Net return after taxation - - - - 56,494 16,646 73,140
Dividends paid in the period (note 4) - - - - (33,508) (16,646) (50,154)
At 31st December 2024 25,551 560,550 27,401 1,221,808 1,099,628 - 2,934,938
Year ended 30th June 2025 (Audited)
At 30th June 2024 24,017 385,574 27,401 1,221,808 1,077,142 - 2,735,942
Issue of ordinary shares 1,865 213,455 - - - - 215,320
Repurchase of ordinary shares into Treasury - - - (14,571) - - (14,571)
Issue of new ordinary shares from Treasury - - - - 5,569 - 5,569
Issue of new ordinary shares in respect of the combination with HINT 3,213 339,420 - - - - 342,633
Costs in relation to issue of ordinary shares(3) - (952) - - - - (952)
Net (loss)/return after taxation - - - - (8,317) 42,306 33,989
Dividends paid in the year (note 4) - - - - (95,403) (42,306) (137,709)
At 30th June 2025 29,095 937,497 27,401 1,207,237 978,991 - 3,180,221
(1) Created following approval by the High Court on 27th February 2024 to
cancel the share premium account as at close of business on 2nd November 2023.
(2) These reserves form the distributable reserves of the Company and may be
used to fund distributions to shareholders.
(3) Includes costs in relation to the publication of a prospectus on 18th
October 2024 in respect of the placing programme to issue up to 150,000,000
Ordinary Shares by way of placings and/or tap issues. This amount was
subsequently reclassified to the share premium account as at 30th June 2025.
The notes below form an integral part of these financial statements.
Condensed Statement of Financial Position
(Unaudited) (Unaudited) (Audited)
At At At
31st December 31st December 30th June
2025 2024 2025
£'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 3,273,400 2,902,118 3,159,956
Current assets
Derivative financial assets 1,500 8,004 10,609
Debtors 9,463 5,300 23,041
Current asset investments 173,512 142,135 174,752
Cash at bank 265 28,925 4,457
184,740 184,364 212,859
Current liabilities
Creditors: amounts falling due within one year (7,822) (2,007) (25,811)
Derivative financial liabilities (439) (11,601) (7,775)
Net current assets 176,479 170,756 179,273
Total assets less current liabilities 3,449,879 3,072,874 3,339,229
Non current liabilities
Creditors: amounts falling due after more than one year (159,024) (137,936) (159,008)
Provision for liabilities (2) - -
Net assets 3,290,853 2,934,938 3,180,221
Capital and reserves
Called up share capital 29,095 25,551 29,095
Share premium account 937,497 560,550 937,497
Capital redemption reserve 27,401 27,401 27,401
Other reserve 1,097,569 1,221,808 1,207,237
Capital reserves 1,199,291 1,099,628 978,991
Revenue reserve - - -
Total shareholders' funds 3,290,853 2,934,938 3,180,221
Net asset value per ordinary share (note 5) 586.5p 574.3p 548.1p
The notes below form an integral part of these financial statements.
Condensed Statement of Cash Flows
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 31st December 30th June
2025 2024 2025
£'000 £'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 291,705 78,068 44,489
Adjustment for:
Gains on investments held at fair value through profit or loss (270,998) (68,311) (13,829)
Foreign currency exchange (gains)/losses (1,138) 5,996 11,476
Dividend income (23,415) (18,359) (46,299)
Interest and other income (3,394) (3,708) (6,985)
Realised gains/(losses) on foreign currency exchange transactions 167 (729) (587)
Decrease/(increase) in other debtors 1,022 98 (340)
(Decrease)/increase in accrued expenses (27) 169 231
Net cash outflow from operating activities before dividends, interest and tax (6,078) (6,776) (11,844)
Dividends received 19,891 15,758 40,785
Interest and other income 3,394 4,293 7,535
Overseas tax recovered 1,220 575 828
Capital gains tax paid - - (40)
Net cash inflow from operating activities 18,427 13,850 37,264
Purchases of investments (2,028,470) (1,724,160) (3,757,214)
Sales of investments 2,176,384 1,586,392 3,592,775
Settlement of forward currency contracts 3,156 (4,461) (16,211)
Costs in relation to acquisition of assets - - (855)
Net cash inflow/(outflow) from investing activities 151,070 (142,229) (181,505)
Dividends paid (65,806) (50,154) (137,709)
Issue of new ordinary shares, excluding the combinations - 175,100 216,038
Net cash acquired following the combination with HINT - - 82,897
Issue of ordinary shares from Treasury - - 5,569
Repurchase of ordinary shares into Treasury (105,751) (10) (14,566)
Costs in relation to issue of new ordinary shares - (182) (952)
Costs in relation to placing programme(1) - (500) -
Interest paid (3,376) (3,058) (6,080)
Net cash (outflow)/inflow from financing activities (174,933) 121,196 145,197
(Decrease)/increase in cash and cash equivalents(2) (5,436) (7,183) 956
Cash and cash equivalents at start of period/year(2) 179,209 178,256 178,256
Foreign currency exchange movement 4 (13) (3)
Cash and cash equivalents at end of period/year(2) 173,777 171,060 179,209
Cash and cash equivalents consist of(2):
Cash at bank 265 28,925 4,457
Current asset investment in JPMorgan GBP Liquidity Fund 173,512 142,135 174,752
Total 173,777 171,060 179,209
(1) This amount was included within the costs in relation to the issue of new
ordinary shares for the year ended 30th June 2025.
(2) The term 'cash and cash equivalents', is used for the purpose of the
Statement of Cash Flows.
The notes below form an integral part of these financial statements.
Notes to the Condensed Financial Statements
For the six months ended 31st December 2025.
1. Condensed financial statements
The information contained within the condensed financial statements in this
half year report has been reviewed, but not audited, by the Company's auditor
and does not amount to full statutory accounts within the meaning of section
435 of the Companies Act 2006. The figures and financial information for the
year ended 30th June 2025 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 auditor which is unqualified and did
not contain a statement under either section 498(2) or 498(3) of the
Companies Act 2006.
2. Accounting policies
The Company is a listed public limited company incorporated in England and
Wales. The registered office is detailed on page 40 of the full Half-Year
Report.
FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting
Council ('FRC') has been applied in preparing this condensed set of financial
statements for the six months ended 31st December 2025.
The condensed financial statements are prepared under the historical cost
convention, modified to include fixed asset investments at fair value, and in
accordance with the Companies Act 2006, United Kingdom Generally Accepted
Accounting Practice ('UK GAAP'), including FRS 102 'The Financial Reporting
Standard applicable in the UK and Republic of Ireland' and with the Statement
of Recommended Practice 'Financial Statements of Investment Trust Companies
and Venture Capital Trusts' (the 'SORP') issued by the Association of
Investment Companies in July 2022.
All of the Company's operations are of a continuing nature.
The Directors believe, having considered the Company's investment objectives,
risk management policies, capital management policies and procedures, nature
of the portfolio, including an analysis of the portfolio's liquidity, 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. The Directors
further believe 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. Gearing levels and compliance with the covenants of
its secured bonds and senior secured notes are regularly reviewed by the
Manager and Board. For these reasons, they consider there is reasonable
evidence to continue to adopt the going concern basis in preparing the
condensed financial statements.
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 2025.
Management fee and finance costs
Management fees and finance costs are allocated 25% to revenue and 75% to
capital in line with the Board's expected long-term split of revenue and
capital return from the Company's investment portfolio.
Finance costs are payable on the £82.8 million 5.75% secured bonds, £30
million 2.93% senior secured notes, £20 million 2.36% senior secured notes
and €30 million 2.43% senior secured notes.
3. Return per ordinary share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2025 31st December 2024 30th June 2025
£'000 £'000 £'000
Return per ordinary share is based on the following:
Revenue return 20,774 16,646 42,306
Capital return/(loss) 265,332 56,494 (8,317)
Total return 286,106 73,140 33,989
Weighted average number of ordinary shares in issue (excluding shares held in 573,034,140 495,529,183 511,582,151
Treasury)
Revenue return per ordinary share 3.63p 3.36p 8.27p
Capital return/(loss) per ordinary share 46.30p 11.40p (1.63)p
Total return per ordinary share 49.93p 14.76p 6.64p
4. Dividends paid on ordinary shares
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2025 31st December 2024 30th June 2025
Pence £'000 Pence £'000 Pence £'000
Dividend paid
Fourth interim dividend in respect of prior year - - 4.61 22,091 4.61 22,091
First interim dividend 5.75 33,300 5.70 28,063 5.70 28,063
Second interim dividend 5.75 32,506 - - 5.70 28,618
Third interim dividend - - - - 5.70 29,445
Fourth interim dividend - - - - 5.70 29,492
Total dividends paid in the period/year 11.50 65,806 10.31 50,154 27.41 137,709
A third interim dividend of 5.75p per ordinary share has been declared for
payment on 9th April 2026 for the financial year ending 30th June 2026.
5. Net asset value per ordinary share
The net asset value per ordinary share and the net asset value attributable to
the ordinary shares at the period end are shown below. These were calculated
using 561,119,729 (31st December 2024: 511,027,308, 30th June 2025:
580,206,569) ordinary shares in issue at the period/year end (excluding
Treasury shares).
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st December 2025 31st December 2024 30th June 2025
Net asset value Net asset value Net asset value
attributable attributable attributable
£'000 pence £'000 pence £'000 pence
Net asset value - debt at par value 3,290,853 586.5 2,934,938 574.3 3,180,221 548.1
£82.8 million 5.75% secured bonds - April 2030
Add back: amortised cost 87,126 15.5 88,159 17.2 87,645 15.1
Deduct: fair value (87,499) (15.6) (86,043) (16.8) (87,202) (15.0)
£30 million 2.93% senior secured notes - January 2048
Add back: amortised cost 29,865 5.3 29,859 5.8 29,862 5.1
Deduct: fair value (19,683) (3.5) (19,554) (3.8) (19,371) (3.3)
£20 million 2.36% senior secured notes - March 2036
Add back: amortised cost 19,925 3.6 19,918 3.9 19,922 3.4
Deduct: fair value (15,578) (2.8) (15,016) (2.9) (15,330) (2.6)
€30 million 2.43% senior secured notes - April 2044
Add back: amortised cost 22,107 3.9 - - 21,579 3.7
Deduct: fair value (20,784) (3.7) - - (21,312) (3.7)
Net asset value - debt at fair value 3,306,332 589.2 2,952,261 577.7 3,196,014 550.8
6. Fair valuation of instruments
The fair value hierarchy disclosures required by FRS 102 are given below.
(Unaudited) (Unaudited) (Audited)
As at As at As at
31st December 2025 31st December 2024(2) 30th June 2025
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Level 1 3,273,400 - 2,902,118 - 3,159,956 -
Level 2(1) 175,012 (439) 150,139 (11,601) 185,361 (7,775)
Total value of investments 3,448,412 (439) 3,052,257 (11,601) 3,345,317 (7,775)
(1) Consists of the current asset investment in the JPMorgan GBP Liquidity
Fund and forward foreign currency contracts.
(2) The figures as at 31st December 2024 have been restated to include the
current asset investment in the JPMorgan GBP Liquidity Fund of £142,135,000
(31st December 2025: £173,512,000; 30th June 2025: £174,752,000) as Level 2.
There have been no transfers between Levels 1, 2 or 3 during the period.
7. Analysis of changes in net cash
As at Other As at
30th June non-cash 31st December
2025 Cash flows transactions(2) 2025
£'000 £'000 £'000 £'000
Cash and cash equivalents
Cash at bank 4,457 (4,196) 4 265
Current asset investments(1) 174,752 (1,240) - 173,512
179,209 (5,436) 4 173,777
Borrowings:
Secured bonds and senior secured notes due after one year (159,008) - (16) (159,024)
Net cash 20,201 (5,436) (12) 14,753
(1) Investment in the JPMorgan GBP Liquidity Fund, a money market fund.
(2) Other non-cash transactions include foreign exchange movement and
amortisation on loan adjustments.
JPMORGAN FUNDS LIMITED
18th March 2026
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
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
The half year will also shortly be available on the Company's website at
www.jpmglobalgrowthandincome.co.uk (http://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.
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