Half-year Report

RNS Number : 1531I

JPMorgan Claverhouse IT PLC

07 August 2019

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN CLAVERHOUSE INVESTMENT TRUST PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED
30th JUNE 2019

Legal Entity Identifier: 549300NFZYYFSCD52W53

Information disclosed in accordance with the DTR 4.2.2

The Directors of JPMorgan Claverhouse Investment Trust plc announce the Company's results for the half year ended 30th June 2019.

CHAIRMAN'S STATEMENT

Performance

For the six months to 30th June 2019 I am pleased to report a total return on the Company's net assets of +16.7% and a share price total return of +10.1%. This result compares with a total return from the Company's benchmark index, the FTSE All-Share index, of +12.9% over the same period.

Relative performance continues to be strong over the short and long term. Since the change in investment strategy in 2012 the Company has produced a total return on net assets of 100.0% compared with the benchmark index total return of 74.5% and for the last three, five and ten years to 30th June 2019 the Company's cumulative total return on net assets has exceeded the benchmark index by 3.8%, 5.7% and 33.9%, respectively.

The Investment Managers' report below reviews the market and provides more detail on performance.

Revenue and Dividends

Earnings per share for the six months to 30th June 2019 decreased to 16.45p, compared to 17.30p earned in the same period in 2018. This 5% decline was principally caused by a generally weaker environment for dividends.

A first quarterly dividend of 6.25p per share (2018: 6.00p) was paid on 31st May 2019. It remains the Board's intention that the first three quarterly dividends should be of an equal amount and the Board has declared a second quarterly dividend of 6.25p per share (2018: 6.00p) to be paid on 2nd September 2019 to shareholders on the register at the close of business on 9th August 2019. It continues to be the aim to increase the total dividend each year and, taking a run of years together, to increase dividends at a rate close to or above the rate of inflation. Over the last five years annual dividends have increased by 38.9%, compared with inflation of about 7.9% over the period.¹ The Company continues to benefit from a relatively high level of revenue reserves and the ability to utilise these, if necessary, to support the dividend.

Discount and Share Repurchases

Discounts in the UK investment trust sector have widened in recent months. This has been reflected in the movement in the Company's share price significantly lagging the return on net assets, particularly since the end of March. As a result the Company has repurchased 180,272 shares during the six month period (all occurring in May and June), at an average discount of 4.9%. Since the period end the Company has repurchased 20,000 shares, as at 31st July 2019. When market sentiment was stronger earlier in the year the Company issued 105,000 new shares at an average premium to NAV of 1.5%. As at 30th June 2019 the Company's discount (to its cum-income, debt at par, NAV) was 4.3%.

Gearing

The Company's gearing policy is to operate within a range of 5% net cash and 20% geared and the investment managers have discretion to vary the gearing level between 5% net cash and 17.5% geared. In addition to the debenture, which is due to be repaid in March 2020 and to be replaced by loan notes bearing a lower interest rate, the Company has a revolving credit facility of £50 million of which £15 million was drawn down as at 30th June 2019.

Board of Directors

In addition to the intended retirement of Humphrey van der Klugt as a Director at next year's Annual General Meeting, which has already been announced, Jane Tufnell has also decided to retire as a Director at the same time. The Board has already commenced a recruitment process with a view to appointing two new Directors in the New Year.

Audit Tender

Ernst & Young LLP has audited the Company's financial statements for over 20 years and, as reported in the Annual Report and Accounts, the Company is required to appoint a new audit firm no later than 2020. A tender process is being undertaken with a view to another audit firm being appointed in 2020.

Outlook

Having lived with the issue of Brexit for over three years there are many who would just like it to go away. It does now look as though we are entering the endgame of the UK's plan to leave the European Union ('EU'). What is still uncertain is what will be the short and long term effects of Brexit on the UK economy, markets and livelihoods. Notwithstanding strong equity markets and the Company's good performance during the first half of the year, I believe that we must be prepared for the UK stockmarket and sterling to experience significant volatility over the coming months. However, one can take comfort from the portfolio being invested predominantly in large blue chip companies, with no unquoted stocks.

An upside is that many of the portfolio companies trade internationally and earn foreign currency revenues which, when translated into sterling, are positive for earnings and dividends. The Company continues to have strong revenue reserves, which is a strength at a time when dividend growth of UK companies is slowing.

Appetite amongst investors for UK equities has been damaged by the Brexit uncertainty, with significant redemptions over recent months from UK equity open-ended funds and discounts widening in the UK equity investment trust sector. The Company is not immune from these headwinds but continues to benefit from its closed-end structure, its risk controls and the ability of the Managers to construct a portfolio which can benefit from positive factors in the global economy while seeking to defend against weaknesses in the UK economy.

Source: CPI; Office of National Statistics.

Andrew Sutch

Chairman                                                                                                                                         6th August 2019

INVESTMENT MANAGERS' REPORT

Investment Approach

We aim to construct a diversified portfolio of our best ideas, comprising both growth and value stocks. We also hold a small number of very large stocks by market capitalisation for risk-control reasons. For the patient investor, such an approach will, we believe, produce outperformance of the index in a steady, risk-controlled manner irrespective of market conditions. We also strive to maintain Claverhouse's enviable dividend record by biasing the portfolio towards stocks with growing dividends.

Market Review

Equity markets were very strong over the period as investors took the view that the fears of a global recession, which dominated thinking in the fourth quarter of last year, were unfounded.

The first six months of the year saw the FTSE All-Share index deliver a total return of +12.9%. The more internationally oriented FTSE100 large-cap index returned +13.1%, whilst the FTSE mid 250 and FTSE small-cap indices returned 13.0% and 9.4%, respectively. Although volatile, the pound was broadly flat over the period. At its peak, the pound traded at $1.33 but then sank back to $1.27 at the period end. The UK Gilts market delivered a total return of 4.8%.

The stock market shed no tears when Prime Minister May announced that she was standing down as Conservative Party leader, focusing more on the expectation that long term interest rates around the world would continue to fall. By the end of the period, 10 year gilts yielded just 0.8% compared to a yield of 4.1% on the FTSE All-Share index, the biggest 'yield gap' since the First World War.

The global economy was dominated by elevated trade tensions between the US and China. But global equity markets remained relatively sanguine, as investors took the view that a near-term resolution would be found or that the Fed would cut rates enough to cushion these headwinds. As the period drew to a close global markets continued to rally with some of them at or close to an all-time high.

Portfolio review

The portfolio performed well over the period, benefitting from both good stock selection and being geared into a rising market. The total return of +16.7% on the net assets of the Company (with debt at par), compared well with the benchmark total return of +12.9%.

The UK stock market comprises a healthy, well-diversified mix of both international companies, for example Glaxo and BP, where profits are earned largely overseas and domestic stocks, for example housebuilders and general retailers, which are more dependent on the domestic economy.

As part of our risk controls, we have structured the portfolio so it is not dependent on any one particular Brexit outcome. Consequently, whilst the portfolio has meaningful exposure to many large, international stocks (which we would expect to perform relatively better in a hard or no deal Brexit), it also holds a number of attractively valued domestic stocks, which should benefit relatively from a softer Brexit. As a yardstick, we estimate that approximately 70% of the revenues earned by the companies in the portfolio are earned overseas.

In terms of individual stocks, the exceptional 2019 results of JD Sports proved the sceptics wrong when they produced excellent figures. Its strong brand relationships continue to drive rapid growth in their existing shops and facilitate expansion into Europe and the US.  The 68% rise in the shares during the period was a healthy contributor to the portfolio.

Softcat, the IT services company, was another significant contributor. The trend towards digitalisation is still accelerating with rapid changes in the industry presenting growth opportunities. The company has had to consistently upgrade guidance due to excellent trading during the period.

Intermediate Capital Group contributed positively to performance. This alternative asset manager has a range of mezzanine finance and private credit funds. Being an early entrant into these types of product and building an excellent performance track record has meant demand for their funds has been exceptionally strong leading to them consistently beating expectations.

As commodity prices rallied, the overweight position in the mining sector performed very well and stock selection further benefitted the portfolio. The holding in Rio Tinto rose 40% over the period, driven by the strong iron ore price; the company also paid a handsome special dividend of 184p per share. The iron ore price also benefitted the holding in Anglo American. The holding in Glencore performed poorly but the portfolio's underweight position compared to the Company's benchmark benefitted our relative performance.

The portfolio's holding in the tobacco stock, Imperial Brands was the biggest detractor from performance. Whilst the sector faces considerable regulatory challenges and disruption from next generation tobacco products, Imperial Brands' yield of 10% remains attractive and any change in sentiment could drive a meaningful re-rating. 

New purchases included Games Workshop. This table-top games producer is a relatively recent addition to the FTSE 250 index but has been held by the JPMorgan Asset Management ('JPMAM') small-cap team for years. It continues to beat even JPMAM's high earnings expectations as product innovation and customer engagement through social media drive expansion into global markets. We also purchased a position in London Stock Exchange. This unique asset continues to grow its revenues ahead of its costs whilst it invests for growth. The potential for further growth and the high barriers to entry in its industry should help it maintain the market's label of it being a high quality business which deserves to trade on a premium rating to the market.

The underweight position in the telecoms sector continued to benefit the portfolio. The period saw us reduce holdings further with sales of both BT and Vodafone.

We exited the off-benchmark position in Burford Capital. As the litigation finance market becomes more crowded, our concerns grew over the sustainability of the company's high returns on capital.

Top Contributors and Detractors to Performance vs. FTSE All-Share Index:

Top Five Contributors	Average Active %	Attribution %	Explanation
JD Sports	+1.2	+0.47	JD Sports' unique relationships with big brands such as Nike and Adidas continue to give it protection from a weaker retail backdrop. The acquisition of Footasylum was also well received by the market.
Softcat	+0.93	+0.37	A fast growing information technology services company whose products have been in high demand given the push for digitalisation across many industries leading to positive earnings surprises.
Rio Tinto	+1.5	+0.34	The resurgent Chinese stimulus and a shortfall in iron ore supply after the Vale mine disaster has caused the iron ore price to rally from its December lows. Rio Tinto has strong exposure to iron ore and copper as well as limited exposure to coal which is out of vogue with investors.

Top Contributors and Detractors to Performance vs. FTSE All-Share Index continued:

Top Five Contributors	Average Active %	Attribution %	Explanation
Intermediate Capital Group	+0.8	+0.34	This alternative asset manager posted strong results during the period. Due to the high demand for the company's relatively niche private credit products, it was able to raise more money than expected, with a more favourable fee structure which led to earnings upgrades.
Vodafone	-1.1	+0.28	Being underweight this sprawling telecommunications company was positive for returns during the quarter as the company disappointed on revenue and earnings in its full year results. The company also cut its dividend which caused some churn in the investor base.

Top Five Detractors	Average Active %	Attribution %	Explanation
Imperial Brands	+1.0	-0.30	This tobacco company underperformed during the period as it faces regulatory challenges and disruption from next generation tobacco products, which have lower profit margins.
Burford	+0.8	-0.20	Owning this litigation finance provider was negative for performance. Uncertainty over the sustainability of the company's extremely high historic levels of returns caused the share price to fall. During the period we sold out of the holding.
International Consolidated Airlines	+0.3	-0.16	This international airlines operator has struggled in the face of a rising oil price and fierce competition in the markets which the company operates in. Extra selling pressure was created by the removal from certain MSCI indices as a result of the company's ownership structure.
BT	+0.3	-0.15	Despite its cheap valuation, owning BT has been negative for performance as the company has struggled to remain competitive as more nimble competitors have entered the sector.
London Stock Exchange	-0.51	-0.12	Not owning the primary stock exchange in the United Kingdom has been negative for the portfolio. This unique company continues to grow revenues ahead of costs as it invests for growth. Following the period end the portfolio has a small overweight position.

Top Over and Under-weight positions vs FTSE All-Share Index:

Top Five Overweight Positions		Top Five Underweight Positions
Diageo	+2.2%	Reckitt Benckiser	-1.8%
Unilever	+2.1%	Glencore	-1.3%
Rio Tinto	+2.0%	Barclays	-1.3%
3i	+1.8%	National Grid	-1.3%
GlaxoSmithKline	+1.7%	British American Tobacco	-1.1%

Source: JPMAM, as at 30th June 2019.

Market outlook

Relative global valuations strongly favour equities over bonds and within this, the high yielding UK equity market looks particularly good value. But UK dividend growth is slowing as a number of blue chip companies (Vodafone, Marks & Spencer and Centrica) have recently cut their pay-outs to shareholders. Moreover, the uncertainty over the timing and nature of our departure from the EU continues to weigh heavily on both consumer and company confidence, the effect of which is seen in a moribund housing market, subdued corporate investment and a falling pound.

The new Prime Minister, Boris Johnson, is pledging 'do or die' to take the UK out of the EU by 31st October 2019. However, the EU has reiterated that many of the matters which Mr. Johnson thinks are still up for negotiation are in, their minds, definitely not. So, if the Prime Minister is to keep his pledge, then a 31st October departure is likely to be without a deal with the EU. In such a scenario, we would expect both the UK economy and sterling to suffer significant setbacks, at least in the short term. However, international companies and exporters (which make up the bulk of the portfolio) would benefit from a weakening of sterling.

These are very uncertain times and the economic and political stakes could not be much higher. With such a volatile and rapidly changing political UK and European backdrop it would be wrong (and dangerous) of us to be too prescriptive as to how events will unfold. So whilst the portfolio is biased towards large, 'blue chip' companies, which should perform relatively well in a hard/no deal Brexit, the portfolio also holds a number of attractively valued smaller, domestic stocks which should respond well to a softer Brexit. With such a fast-changing political and economic backdrop, we will be flexible in our allocation between international and domestic stocks.

Whilst UK equities are likely to be more volatile in the second half of the year, our belief is that they continue to represent good value for the medium term investor, especially if interest rates stay low and sterling remains at these very competitive levels. Our core philosophy of investing in quality, reasonably priced companies with good growth prospects should continue to stand the portfolio in good stead and help us navigate these unchartered waters to our shareholders' benefit.

Claverhouse shareholders should also take comfort from the Company's very strong revenue reserves, which can be called upon, if necessary, to support future shareholder dividends.  

Encouragingly, the global economy remains reasonably strong but not so robust as to change our view that interest rates will remain very low in the developed world for the foreseeable future.

Our belief in the medium term attractiveness of UK equities is reflected in the portfolio remaining geared, at the time of writing by 8.9%.

William Meadon

Callum Abbot

Investment Managers                                                                                                                 6th August 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: cybercrime; share price discount; political; investment and strategy; market; operational; loss of investment team; legal and regulatory/corporate governance; and financial. Information on each of these areas is given in the Strategic Report within the Annual Report and Accounts for the year ended 31st December 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.

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 yearly financial report. For these reasons, they consider that there is sufficient evidence to continue to adopt the going concern basis in preparing the accounts.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i)      the condensed set of financial statements contained within the half year financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company, and of the assets, liabilities, financial position and net return of the Company as at 30th June 2019 as required by the UK Listing Authority 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 UK Listing Authority Disclosure Guidance and Transparency Rules.

In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:

•        select suitable accounting policies and then apply them consistently;

•        make judgements and accounting estimates that are reasonable and prudent;

•        state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•        prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;

and the Directors confirm that they have done so.

For and on behalf of the Board

Andrew Sutch

Chairman                                                                                                                                         6th August 2019

STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30th june 2019

	(Unaudited)			(Unaudited)			(Audited)
	Six months ended			Six months ended			Year ended
	30th June 2019			30th June 2018			31st December 2018
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments held at fair value through profit or loss	-	53,797	53,797	-	4,639	4,639	-	(70,369)	(70,369)
Net foreign currency (losses)/gains	-	-	-	-	(12)	(12)	-	31	31
Income from investments	10,517	-	10,517	10,739	-	10,739	19,039	-	19,039
Interest receivable and similar income	39	-	39	46	-	46	119	-	119
Gross return/(loss)	10,556	53,797	64,353	10,785	4,627	15,412	19,158	(70,338)	(51,180)
Management fee	(405)	(751)	(1,156)	(418)	(776)	(1,194)	(840)	(1,559)	(2,399)
Other administrative expenses	(356)	-	(356)	(348)	-	(348)	(739)	-	(739)
Net return/(loss) on ordinary activities before finance costs and taxation	9,795	53,046	62,841	10,019	3,851	13,870	17,579	(71,897)	(54,318)
Finance costs	(427)	(793)	(1,220)	(466)	(865)	(1,331)	(911)	(1,691)	(2,602)
Net return/(loss) on ordinary activities before taxation	9,368	52,253	61,621	9,553	2,986	12,539	16,668	(73,588)	(56,920)
Taxation	(18)	-	(18)	(88)	-	(88)	(45)	-	(45)
Net return/(loss) on ordinary activities after taxation	9,350	52,253	61,603	9,465	2,986	12,451	16,623	(73,588)	(56,965)
Return/(loss) per share (note 3)	16.45p	91.94p	108.39p	17.30p	5.46p	22.76p	30.09p	(133.20)p	(103.11)p

STATEMENT OF CHANGES IN EQUITY

for the six months ended 30th june 2019

	Called up		Capital
	share	Share	redemption	Capital	Revenue
	capital	premium	reserve	reserves	Reserve1	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Six months ended 30th June 2019 (Unaudited)
At 31st December 2018	14,192	155,384	6,680	171,977	23,800	372,033
Issue of new ordinary shares	26	685	-	-	-	711
Repurchase of shares into Treasury	-	-	-	(1,268)	-	(1,268)
Net return on ordinary activities	-	-	-	52,253	9,350	61,603
Dividends paid in the period (note 4)	-	-	-	-	(8,947)	(8,947)
At 30th June 2019	14,218	156,069	6,680	222,962	24,203	424,132
Six months ended 30th June 2018 (Unaudited)
At 31st December 2017	14,192	149,641	6,680	235,667	22,318	428,498
Issue of shares from Treasury	-	1,462	-	2,220	-	3,682
Net return on ordinary activities	-	-	-	2,986	9,465	12,451
Dividends paid in the period (note 4)	-	-	-	-	(8,456)	(8,456)
At 30th June 2018	14,192	151,103	6,680	240,873	23,327	436,175
Year ended 31st December 2018 (Audited)
At 31st December 2017	14,192	149,641	6,680	235,667	22,318	428,498
Issue of shares from Treasury	-	5,821	-	9,898	-	15,719
Expenses related to listing of shares	-	(78)	-	-	-	(78)
Net (loss)/return on ordinary activities	-	-	-	(73,588)	16,623	(56,965)
Dividends paid in the year (note 4)	-	-	-	-	(15,141)	(15,141)
At 31st December 2018	14,192	155,384	6,680	171,977	23,800	372,033

¹ The 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 30th june 2019

	(Unaudited)	(Unaudited)	(Audited)
	30th June 2019	30th June 2018	31st December 2018
	£'000	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	458,516	480,505	381,377
Current assets
Debtors	2,254	6,852	869
Cash and cash equivalents	9,080	11,049	20,436
	11,334	17,901	21,305
Current liabilities
Creditors: amounts falling due within one year	(45,718)	(2,299)	(703)
Net current (liabilities)/assets	(34,384)	15,602	20,602
Total assets less current liabilities	424,132	496,107	401,979
Creditors: amounts falling due after more than one year1	-	(59,932)	(29,946)
Net assets	424,132	436,175	372,033
Capital and reserves
Called up share capital	14,218	14,192	14,192
Share premium	156,069	151,103	155,384
Capital redemption reserve	6,680	6,680	6,680
Capital reserves	222,962	240,873	171,977
Revenue reserve	24,203	23,327	23,800
Total shareholders' funds	424,132	436,175	372,033
Net asset value per share (note 5)	748.2p	792.3p	655.4p

¹ Includes £30 million debenture maturing on 30th March 2020 and £15 million drawn down on the National Australia Bank loan maturing on 27th April 2020. They were classified under 'creditors: amounts falling due within one year' in comparative numbers.

STATEMENT OF CASH FLOWS

for the six months ended 30th june 2019

	(Unaudited)	(Unaudited)	(Audited)
	30th June 2019	30th June 2018	31st December 2018
	£'000	£'000	£'000
Net cash outflow from operations before dividends received and interest	(1,499)	(1,511)	(3,096)
Dividends received	9,102	9,391	18,928
Interest received	33	44	120
Interest paid	(1,169)	(1,349)	(2,649)
Overseas tax recovered	18	87	69
Net cash inflow from operating activities	6,485	6,662	13,372
Purchases of investments	(88,679)	(85,553)	(206,973)
Sales of investments	65,336	83,226	232,047
Settlement of foreign currency contracts	2	1	-
Net cash (outflow)/inflow from investing activities	(23,341)	(2,326)	25,074
Dividends paid	(8,947)	(8,456)	(15,141)
Issue of new ordinary shares	711	-	-
Issue of shares from Treasury	-	3,682	15,719
Repurchase of the Company's shares into Treasury	(1,268)	-	-
Repayment of bank loan	-	(5,000)	(45,000)
Drawdown of bank loan	15,000	-	10,000
Expenses related to listing of shares	-	-	(78)
Net cash inflow/(outflow) from financing activities	5,496	(9,774)	(34,500)
(Decrease)/increase in cash and cash equivalents	(11,360)	(5,438)	3,946
Cash and cash equivalents at start of period/year	20,436	16,489	16,489
Exchange movements	4	(2)	1
Cash and cash equivalents at end of period/year	9,080	11,049	20,436
(Decrease)/increase in cash and cash equivalents	(11,360)	(5,438)	3,946
Cash and cash equivalents consist of:
Cash and short term deposits	781	250	359
Cash held in JPMorgan Sterling Liquidity Fund	8,299	10,799	20,077
Total	9,080	11,049	20,436

NOTES TO THE FINANCIAL STATEMENTS

for the six months ended 30th june 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 31st December 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 30th June 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 31st December 2018.

3.       Return/(loss) per share

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	30th June 2019	30th June 2018	31st December 2018
	£'000	£'000	£'000
Return/(loss) per share is based on the following:
Revenue return	9,350	9,465	16,623
Capital return/(loss)	52,253	2,986	(73,588)
Total return/(loss)	61,603	12,451	(56,965)
Weighted average number of shares in issue	56,833,327	54,705,913	55,249,240
Revenue return per share	16.45p	17.30p	30.09p
Capital return/(loss) per share	91.94p	5.46p	(133.20)p
Total return/(loss) per share	108.39p	22.76p	(103.11)p

4.       Dividends paid

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	30th June 2019	30th June 2018	31st December 2018
	£'000	£'000	£'000
Unclaimed dividends refunded to the Company	(10)	(8)	(8)
2018 fourth quarterly dividend of 9.5p (2017: 9.5p) paid in March	5,403	5,183	5,183
2019 first quarterly dividend of 6.25p (2018: 6.0p) paid in May (2018: June)	3,554	3,281	3,281
2018 second quarterly dividend of 6.0p paid in September	n/a	n/a	3,303
2018 third quarterly dividend of 6.0p paid in December	n/a	n/a	3,382
Total dividends paid in the period	8,947	8,456	15,141

All dividends paid in the period/year have been funded from the revenue reserve.

A second quarterly dividend of 6.25p (2018: 6.0p) per share, amounting to £3,543,000 (2018: £3,303,000) has been declared payable in respect of the year ending 31st December 2019. It will be paid on 2nd September 2019 to shareholders on the register at the close of business on 9th August 2019.

5.       Net asset value per share

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	30th June 2019	30th June 2018	31st December 2018
Net assets (£'000)	424,132	436,175	372,033
Number of shares in issue at period/year end1	56,690,381	55,053,979	56,765,653
Net asset value per share	748.2p	792.3p	655.4p

¹     Excluding 180,272 (30th June 2018: 1,711,674; 31st December 2018: nil) shares held in Treasury.

For further information, please contact:

Faith Pengelly

For and on behalf of

JPMorgan Funds Limited, Secretary

020 7742 4000

Please note that up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can be found at www.jpmclaverhouse.co.uk

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 has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM

The half year will also shortly be available on the Company's website at www.jpmclaverhouse.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

 

END

 

 

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