Annual Financial Report

JPMorgan Global Emerging Mkts I.T.

26 October 2023

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN GLOBAL EMERGING MARKETS INCOME TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 31ST JULY 2023

Legal Entity Identifier: 549300OPJXU72JMCYU09

Information disclosed in accordance with the DTR 4.1.3

JPMorgan Global Emerging Markets Income Trust plc (the 'Company' or 'JEMI') announces its financial results for the year ended 31^st July 2023.

CHAIR'S STATEMENT

Performance

This is my first annual report as chair of your Company, and I am pleased to be able to tell you that the past year ended 31st July 2023 has been an encouraging one, with the Company making a positive return, comfortably ahead of the Benchmark Index. I would like to thank my predecessor, Sarah Fromson, for her leadership of the Company in her time as Chair. Many of the building blocks upon which the Company's success depends are a consequence of her contribution. The Board and I wish her well in her future endeavours.

During the period, the Company's total return on net assets, including dividends, was 9.2%, which compares favourably with the Benchmark return of 2.5%. The total return to shareholders (which includes both the share price return and dividends) was 12.6%. This reflected some narrowing of the discount to net asset value at which the Company's shares trade, from 11.6% at 31st July 2022 to 9.3% at the end of the period under review. Given the Company's long-term investment approach, I want to draw your attention to the fact that performance over periods of three years and beyond remains excellent.

China's economy was the key driver of Emerging Market performance over the past year, giving investors a bumpy and uncomfortable ride. Optimism sparked by China's unexpectedly rapid abandonment of its harsh zero Covid restrictions late in 2022 saw Chinese equity markets rise sharply in Q422. However, during the first half of 2023, hope gave way to disappointment and renewed market weakness, with China's recovery proving shallower and more hesitant than most expected. The year's other notable development was investors' sudden enthusiasm for stocks expected to profit from the rapid integration of artificial intelligence ('AI') tools into work practices and many aspects of daily life, which benefitted some of the Company's Taiwanese portfolio holdings.

The Performance Attribution table below shows that a substantial proportion of the Company's relative performance was derived from stock selection decisions made by the Portfolio Managers. B3, Novatek and Grupo Financiero Banorte were the largest individual stock contributors to performance, although these gains were partially offset by the adverse influence of underweight positions in India, South Korea and Turkey. The Investment Manager's Report, which can be found below, reviews the market environment, the Company's performance and portfolio allocations in more detail. It also considers the outlook for emerging markets over the coming year.

Dividends

The Company's gross revenue for the year amounted to £20.8 million (2022: £22.2 million) with net revenue of £16.9 million (2022: £18.1 million), slightly reduced from the prior year, in part due to a timing issue of receipt of dividends from our Taiwanese portfolio holdings. Please see the Investment Manager's Report below for further details. Net revenue return per ordinary share for the year, calculated on the average number of shares in issue, was 5.70p (2022: 6.11p).

During the financial year, the Board paid three interim dividends of 1.0p per share and on 4th September 2023 it announced the payment of a fourth interim dividend of 2.30p per share. This brings the total dividend for the financial year to 5.30p per share, a modest increase from the previous year (2022: 5.20p per share).

The Board pays four interim dividends, reflecting the support we have received from shareholders for a regular and timely income stream. We are seeking shareholder authority to maintain this dividend payment policy at the forthcoming Annual General Meeting ('AGM').

The Board closely monitors dividend receipts, given their importance to the Company. Both the Investment Manager and the Board are of the view that Emerging Markets continue to offer long term growth potential with attractive income prospects. The Board carefully considers the outlook and potential risks with the investment team on a regular basis, including a sensitivity analysis of the impact of currency movements on revenue receipts. As shareholders are aware, the Company receives dividends in the currencies of developing countries and in US dollars but pays dividends in sterling. It has not been the Company's policy to hedge currency risk as that is expensive and, for many currencies, impracticable. That policy inevitably means that the Company's asset value and cash flows will be buffeted by adverse currency movements (if sterling strengthens) and flattered by favourable moves (if sterling weakens relative to emerging market currencies and US dollars).

Loan facilities and gearing

The Board regularly discusses gearing with the Portfolio Managers, who use it to enhance long-term shareholder returns. As reported in our 2023 Half Year Report, the Company's US$20 million fixed interest loan facility with National Australia Bank was repaid in November 2022. The Company secured a competitive US$20 million, two-year revolving loan facility with Mizuho Bank Limited, repayable in November 2024.

The Company also maintains a US$20 million floating rate loan facility with ING Bank, repayable in early October 2023. With the pending maturity of this facility, your Board has been working closely with the Manager to assess the Company's borrowing options. The Company has renewed its US$20 million revolving loan facility with ING Bank for a further two years. Further details can be found on page 82 of the Annual Report.

As at 31st July 2023, portfolio gearing stood at 5.7% (31st July 2022: 5.7%).

Share repurchases and issuance

During the financial year to 31st July 2023, the Company's share price traded at an average discount to net asset value ('NAV') of 10.5%.

The Board regularly considers the merits of buying back shares to manage the level and volatility of the discount and will buy back shares if it is considered to be in the best interests of shareholders to do so. As shares are only bought back at a discount to the prevailing NAV, share buybacks benefit shareholders as they increase the NAV per share of remaining outstanding shares. During the financial year, the Company bought back 358,101 shares into Treasury for a total cost of £448,000. It did not issue any shares. These purchases were value accretive for shareholders and underscore your Board's belief that there is attractive value in the investments held by the Company.

At the forthcoming AGM, the Board will seek a renewal of shareholder authority to issue up to a further 10% of the Company's issued share capital and to buy back its own shares. It is the Board's intention to use the repurchase and allotment authorities to manage imbalances between the supply and demand of the Company's shares, thus reducing the volatility of the discount or premium in normal market conditions and to meet demand for the Company's shares as and when they trade at an appropriate premium to net asset value.

Investment Management Fees

Since the year end, the Board has agreed with the Manager that the Company's investment management fees should be tiered.

With effect from 1st November 2023, the investment management fee will be charged on a tiered basis at an annual rate of 0.75% of the Company's net assets on the first £500 million and at 0.65% of net assets above that amount. This compares with the previous arrangement under which the management fee was charged at an annual rate of 0.75% on net assets. The fee will continue to be calculated and paid monthly.

Investment Team

Omar Negyal and Isaac Thong are the lead Portfolio Managers, supported by the Investment Manager's extensive team of analysts across Global Emerging Markets. As previously announced, Jeffrey Roskell, a portfolio manager for the Company since 1st August 2016, has announced his retirement from JPMorgan Asset Management in the first quarter of 2024. We would like to thank Jeffrey for his contribution to the management of the Company's assets and wish him the very best in his retirement.

Board and Corporate Governance

During the year, the Board extended the remit of the Nomination Committee to include responsibility for Directors' remuneration in accordance with the provisions of the AIC Code of Corporate Governance, this committee is now known as the Nomination and Remuneration Committee. I am a member of this committee, being fully independent of the Manager now and on my appointment.

Following the Board's annual evaluation by the Nomination and Remuneration Committee, it is felt that the Board's composition and size remains appropriate. The Nomination and Remuneration Committee is cognisant that Caroline Gulliver will reach her ninth-year anniversary of shareholder appointment to the Board at the 2024 AGM. The Nomination and Remuneration Committee will commence a search, in early 2024, with assistance from an appropriate independent recruitment specialist for board level searches, for Caroline's successor. An update will be provided in 2024.

The Board has recently established a separate Management Engagement Committee, chaired by me, and comprising the entire Board, all of whom are independent of the Company, its Manager and its advisers. The Management Engagement Committee's key purpose is to review the continued appointment, remuneration and performance of, and contractual arrangements with, the Manager and the Company's other key service providers. The Management Engagement Committee will not review the performance of the Company's auditor, the review of which remains within the remit of the Audit and Risk Committee.

The Board supports the annual appointment/reappointment for all Directors, as recommended by the AIC Code of Corporate Governance, and therefore all Directors will stand for reappointment at the forthcoming AGM. Shareholders who wish to contact the Chair or other members of the Board may do so through the Company Secretary or the Company's website, details of which can be found below.

Environmental, Social and Governance

Whilst the Company is not a sustainable or environmental, social and governance ('ESG') investment vehicle, and does not explicitly target ESG outcomes as part of portfolio construction, we welcome the Investment Manager's incorporation of financially material ESG considerations into its investment process. The potential impact of financially material ESG factors on a company's ability to deliver shareholder value is considered as part of the Portfolio Managers' stock selection process. Your Board shares this belief in the importance of financially material ESG factors for long-term investments and supports the Portfolio Managers' efforts to maintain continuous engagement with investee companies.

Task Force on Climate-related Financial Disclosures

On 30th June 2023, as a regulatory requirement the Investment Manager published its first UK Task Force on Climate-related Financial Disclosures Report for the Company in respect of the year ended 31st December 2022. The report discloses estimates of the portfolio's climate-related risks and opportunities according to the Financial Conduct Authority Environmental, Social and Governance Sourcebook and the Task Force on Climate-related Financial Disclosures Recommendations ('TCFD'). The report is available on the Company's website: www.jpmglobalemergingmarketsincome.co.uk

This is the first report under the new guidelines and disclosure requirements. The Board is aware that best practice reporting under the TCFD regime is still evolving both with regard to metrics and input data quality, as well as the interpretation and implications of the outputs produced, and will continue to monitor developments as they occur.

Annual General Meeting

The Company's AGM will be held at 60 Victoria Embankment, London EC4Y 0JP on Monday, 27th November 2023 at 2.00 p.m. Full details of the format and explanations of the business proposed at the AGM can be found in the Notice of Meeting on page 96 of the full Annual Report.

We are delighted to invite shareholders to join us in person for the Company's AGM. However, those Shareholders wishing to follow the AGM proceedings without attending in person will be able to view them live and ask questions (but not vote) through conferencing software. Details on how to register, together with access details, will be available shortly on the Company's website at www.jpmglobalemergingmarketsincome.co.uk or by contacting the Company Secretary at [e-mail].

As is best practice, all voting on the resolutions will be conducted on a poll. Shareholders who are unable to attend the AGM in person are strongly encouraged to submit their proxy votes in advance of the meeting, so that they are registered and recorded at the AGM. Proxy votes can be lodged in advance of the AGM either by post or electronically: detailed instructions are included in the Notes to the Notice of Meeting on pages 96 to 99 of the full Annual Report.

Shareholders are encouraged to send any questions ahead of the AGM to the Board via the Company Secretary at the email address above. We will endeavour to answer relevant questions at the meeting or via the Company's website. My fellow Board members, representatives of JPMorgan and I look forward to the opportunity to meet and speak with shareholders after the formalities of the meeting have been concluded. We would also welcome comments and questions from shareholders throughout the year, please use the same contact details as above.

If there are any changes to the above AGM arrangements, the Company will update shareholders through an announcement to the London Stock Exchange and on the Company's website.

Outlook

Wariness is spreading across markets as the Middle East crisis looks increasingly complex. Oil prices are climbing amid concerns about global supplies and crude is expected to remain susceptible to more spikes on signs of further disruptions in the Middle East. Global gas supply is set to remain tight and subject to a wide range of uncertainties. These latest developments increase concerns on higher inflation and lower growth.

Despite some near-term uncertainties, there are good reasons to be optimistic about the long-term prospects for Emerging Markets. The uncertainties relate mostly to how the US and Chinese economies perform in coming months. In the US, the Federal Reserve's restrictive monetary stance is likely to dampen activity over the remainder of this year and next, which may reduce demand for Emerging Market exports. It is not yet clear whether the US economy will dip into recession as the impact of higher interest rates and tighter financing conditions are seemingly taking longer to take effect on consumer demand and inflation than previously expected. With respect to China, we share the Portfolio Managers' assessment that the market does not fully appreciate that, although China's near-term growth is less vigorous than before the pandemic, its GDP is forecast to grow much more rapidly than in most developed economies. Longer-term growth is likely to be supported by the Chinese authorities' pro-growth stance. When investors form a more realistic and more upbeat view of the country's prospects, China is likely to resume its role as an important positive driver of activity and markets within Asia and further afield, especially if the recent apparent warming in relations between China and the US results in an easing of trade and political tensions between the world's two largest economies.

It is important to note that, while China has been absorbing investors' attention in recent months, many other Emerging Markets, notably equity markets in Taiwan, Mexico and Peru have been performing well and are forecast to continue growing strongly over the medium term. Expansion will be underpinned by positive structural trends such as digitalisation, urbanisation and favourable demographics, which result in growing working-age populations and rising incomes.

In summary, the Board believes that Emerging Markets continue to offer many attractive opportunities capable of delivering capital growth and above market yields, especially after the declines in valuations seen over the past couple of years. The Company's strong track record gives us confidence that the Portfolio Managers have the skills, experience and discipline to identify and capitalise on these opportunities for the ongoing benefit of our shareholders.

On behalf of the Board, I would like to thank you for your ongoing support.

Elisabeth Scott

Chair                                                                                                                                           25th October 2023

INVESTMENT MANAGER'S REPORT

Introduction

For the year ended 31st July 2023, the Company's total return on net assets, including dividends, was 9.2%. This compares with our Benchmark, with dividends reinvested, which returned 2.5%. The return on shares, including dividends, was 12.6%. It is pleasing to be able to report outperformance over the year, as well as over a longer-term period. Over a three-and five-year basis, the Company made annualised returns of 9.0% and 5.7% respectively in NAV terms, compared to Benchmark returns of 2.1% over both periods respectively.

This supports our view that our income philosophy and process can work well within Emerging Markets, producing a portfolio with value and quality characteristics, which can provide a healthy level of income for shareholders while also providing good participation in Emerging Markets.

Investment environment

In the 12 month period ended 31st July 2023, developments in China were the main focus for emerging market investors. During the first half of the period, China's surprisingly rapid reopening late in 2022, after a long period of severe, 'zero covid' restrictions, prompted a sharp rally in the market. MSCI China returned 4.5% (in GBP) in the fourth quarter of 2022 in anticipation of a strong rebound in economic activity. However, the recovery proved to be unexpectedly lacklustre, as consumer demand remained weak, and the property market continued to stagnate after the government's harsh crackdown on speculative activity in 2020. Investors were also wary about persistent geo-political tensions, both with Taiwan and the US. The Chinese market lost some of the ground gained in the fourth quarter of 2022, ending the seven months to 31st July 2023 down 1.4% (MSCI China total return, in GBP).

Investors in all markets also watched the US closely during the review period, as the Federal Reserve continued to raise interest rates to damp down inflation pressures. This stringent monetary policy stance raised concerns about the possibility of a US recession, and emerging market investors worried about an associated contraction in demand for exports from emerging markets.

The first half of 2023 also saw a surge in interest in artificial intelligence ('AI'), following the launch of Chat GPT, a language processing tool driven by AI, which can conduct conversation and undertake simple writing and research tasks. Investors focused on AI's potential to transform work practices and boost productivity, and semiconductor manufacturers and tech companies perceived to be at the forefront of this AI revolution have been the key drivers for markets in recent months.

Performance attribution

for the year ended 31st July 2023

	%	%
Contributions to total returns
Benchmark total return		2.5%
Asset allocation	0.1%
Stock selection	7.0%
Gearing/cash	0.5%
Investment manager contribution		7.6%
Portfolio total return		10.1%
Management fees/other expenses	-0.9%
Share buy-back/issuance	0.0%1
Other effects		-0.9%
Cum income net asset value total return		9.2%
Cum income share price total return		12.6%

Source: JPMAM and Morningstar. All figures are on a total return basis.

Performance attribution analyses how the Company achieved its recorded performance relative to its benchmark index.

¹     The Company has bought back shares during the year. However, the number of shares purchased is not material enough to have a significant impact as indicated in the table.

A glossary of terms and APMs is provided on pages 100 to 102 in the annual report.

Performance drivers over the past year

Stock selection enhanced relative returns during the financial year. The table below shows the top five and bottom five contributors to performance over this period.

Top five Contributors	Top five Detractors
B3 SA-Brasil Bolsa Balcao	Inner Monogolia Yili Industrial Group
Novatek Microelectronics	Tencent (not owned)
Grupo Financiero Banorte	Posco Holdings Inc (not owned)
OPAP	Telkom Indonesia Persero TBK
Kimberly-Clark de Mexico	Petrobras - Petróleo Brasileiro (not owned)

Looking at some of the main individual contributors to performance:

Our position in B3, Brazil's main stock exchange, was the largest positive contributor to performance. We like exchanges in general, as they tend to be high quality companies with few, if any, competitors. Furthermore, they generate strong free cash flow and often have attractive dividend policies. All these points hold true for B3, and the stock re-rated strongly over the period.

The holding in Taiwan's Novatek Microelectronics Corp, which designs chips for screens as well as other specialised applications, contributed to performance. Novatek's share price rose strongly, helped by an easing in market worries over high inventory levels. The company also reported meaningful improvements in revenue over several quarters. We continue to see the company as being able to generate a healthy return on equity and we like the fact it has been able to maintain its strong position within the market over a long period of time, showing that it has the ability to navigate multiple product cycles.

Within financials, the holding in Grupo Financiero Banorte, a Mexican bank, contributed to performance. Banorte's net interest margin has expanded thanks to rate increases and accelerated growth in lending. Additionally, this bank has demonstrated good governance, and prudent capital allocation, as illustrated by management's decision to eschew an offer to acquire its competitor, Banamex, from Citibank. Mexico's macroeconomic prospects are also positive - its GDP growth is expected to outpace that of other Latin American countries, thanks in part to nearshoring trends (discussed further below), which will allow Banorte to benefit from greater local financing opportunities.

Of our holdings in consumer staples, an overweight in Inner Mongolia Yili Industrial Group, which produces and sells dairy products, detracted from performance. The company's share price de-rated due to slower than expected sales growth and low returns from branding investments. Earnings also became more volatile due to expenses related to covid controls. However, we continue to hold this stock, as we expect these issues to fade with time. Furthermore, the company has been able to hold on to gains in market share and new product categories are growing well. Among communication services holdings, not owning China's internet content giant Tencent detracted from performance. However, we will continue to remain uninvested in the stock, as it does not offer an attractive dividend yield.

Among materials sector positions, our decision not to own POSCO, a Korean steelmaker which produces materials used in the manufacture of vehicles, machinery and home electronics, also detracted from returns. The stock rallied thanks to Korean retail investors' enthusiasm for battery materials. The company's plans to produce battery cathodes were also well-received by the market, but we intend to stay out of the stock, as we do not share the market's conviction in POSCO's fundamentals, or its ability to fend off competitors over the long-term.

Country contributors to relative performance

Positive	Negative
Mexico (overweight)	India (underweight)
Taiwan (overweight)	South Korea (underweight)
Peru (overweight)	Turkey (not owned)

Our country allocations had a positive impact on relative performance over the year. The Company's exposure to Mexico was the most important contributor. Since the pandemic, manufacturers have attempted to diversify and strengthen their global supply chains, and Mexico's proximity to the large markets of the US and Canada means it stands to benefit greatly from this nearshoring trend, via heavier investment in manufacturing, including from foreign investors. In fact, these benefits are already materialising - Mexico became America's top trading partner during the first half of 2023. Our positions in Banorte and Kimberly Clark Mexico, a supplier of household and personal products, have done well accordingly. Peru was another market which added to relative returns, due to our position in copper miner Southern Copper. Demand for copper is strong and likely to increase over time as this mineral is a key component of batteries and other components and equipment necessary of the transition to net zero carbon emissions.

In Asia, our exposure to Taiwan was another positive contributor to relative returns, thanks to gains in our holdings in semiconductor companies such as Novatek Microelectronics and computer hardware companies such as Wiwynn, which were supported by rising demand for semiconductors in general and, in a couple of cases, potential new opportunities in AI.

On the negative side, the Indian market performed well, but our underweight position relative to the Benchmark created a drag on relative returns. It is difficult to find Indian stocks offering an attractive yield, partly because India is more of a 'growth' market, and because valuations are high, thanks to positive investor sentiment towards the country, which means the yields on offer are correspondingly low. Our underweight in South Korea also hurt returns, in large part due to not owning POSCO, which, as previously mentioned, has gained thanks to retail investor enthusiasm, which we do not share.

Not owning stock in Turkey was a further drag. The market rose as high domestic inflation, negative interest rates and unattractive government bond yields made equity investment the only viable investment alternative for local investors. However, these are hardly compelling reasons for us to invest in this market, especially given escalating macroeconomic uncertainty and currency weakness, so we chose not to hold any Turkish names.

Portfolio positioning and changes

We build the portfolio on a bottom-up basis, selecting stocks based on their sound fundamental qualities, strong balance sheets and capacity to pay dividends over the long term. Naturally, some areas within Emerging Markets offer more investment opportunities than others, and this results in tilts within the portfolio towards some sectors and countries. From a sectoral viewpoint, we tend to find the most attractive income opportunities within Technology, Consumer Staples and Financials, so these are the portfolio's three key sector overweights, while historically, the portfolio is usually underweight in Materials, Energy and Industrials.

At the country level, significant portfolio overweights include Mexico, South Africa and Taiwan - as with our sector allocations, these country weightings are driven by the many individual stock opportunities which we view as attractive from an income investor's perspective. In contrast, our largest country underweight is India. India's long-term growth prospects are very positive and investor interest in this market is high. However, as mentioned above, this is reflected in valuations, which makes it difficult for us to find attractive income paying stocks. The portfolio has a roughly neutral position in China but is slightly overweight once the holdings of Hong Kong stocks are included. China faces some challenges, including weak consumer demand, a stricken property market and a fractious relationship with the US, as discussed above, but we think overall valuations are more attractive after recent market weakness. The Chinese market's dividend outlook is also positive.

The portfolio changes we have implemented over the past year have mainly been motivated by individual stock considerations. For example, we opened a new position in TIM, a Brazilian telecom company which we expect to benefit from market consolidation and more rational behaviour by remaining market participants. The company is set to generate healthy free cash flow going forward, which should flow directly to shareholders thanks to TIM's positive dividend policy. We also purchased JD.com, a Chinese e-commerce business. This company provides a very interesting illustration of the progression of Chinese corporate life cycles. Slower Chinese growth has led many companies to recognise the need to adjust their capital allocation. In JD.com's case, when we met the company's CEO, she was clear that in the past, the cash generated by the company's very strong growth was invested across a wide range of areas. But now, with slower, though still healthy, trend growth, JD.com is being more considered in its use of cash - the company has adopted an annual dividend policy and a more disciplined approach to investments. We like JD.com's new-found balance between dividends and growth, and with the valuation much lower after the sharp sell-off seen over the past two years, we initiated a new position.

We also took advantage of better valuations to add to several existing positions across markets and sectors. Examples include Realtek Semiconductor, a Taiwanese semiconductor design company involved in Wi-Fi and audio products, and Haier Smart Home, a Chinese white goods manufacturer producing fridges, washing machines and air conditioning units both for domestic consumption and export. In these cases, we followed our valuation (including yield) and fundamental signals to add to positions we thought looked more attractive. Conversely, we trimmed positions where we thought valuations were beginning to look more stretched after relatively strong performance, e.g., Walmart de Mexico, the Mexican supermarket operator. This remains a very strong company and we like the management team's strategy for the long term - but we also recognise that the stock's performance has reduced yield and increased other valuations, so we want to manage the position size.

One notable disposal over the past year was the closure of our position in the Saudi bank, Al Rajhi. This sale was motivated by our view that management was de-prioritising the dividend. However, we still like the bank's strong domestic franchise, so we would consider re-opening a position in future if management decides to place dividends higher up the agenda.

Our engagement on environmental, social and governance issues

We believe that sound environmental, social and governance ('ESG') practices are extremely important to the resilience of business models, and we welcome signs that more Emerging Market companies are explicitly recognising this and improving their practices accordingly. Financially material ESG considerations are therefore integral to our investment process (please see the dedicated section on pages 18 to 23 of the full Annual Report). When considering potential investments, our analysts assess each company on a list of related factors, including its carbon emissions, renewable energy and recycling policies, and employment and diversity practices, along with its approach to corporate governance.

We place particular emphasis on governance, and we draw a direct link between a company's dividend policy and the quality of its governance. In our view, a company's willingness to return cash to shareholders is a tangible and positive governance indicator. We have engaged with many companies on this issue over time, to understand their motivations and capital allocation objectives. We also discuss the magnitude of returns to shareholders and the rationale behind any split between dividends and buybacks.

Examples of recent ESG engagement with portfolio companies can be seen in the ESG section of the report on pages 20 and 21 in the full annual report.

Dividends

The Company's earnings per share during the financial year was 5.70p, down from 6.11p in the prior year, partly reflecting the pressure that Emerging Markets companies are facing currently (particularly in the face of a weaker Chinese economy). This decline was also partly due to a timing issue we highlighted last year, when a few Taiwanese companies paid two dividends last year rather than one, following pandemic-induced delays to their annual general meetings. The return to normal dividend paying patterns in the financial year explains roughly 60% of the year-on-year decline in earnings.

As a reminder, the Company receives dividends from portfolio companies in local currencies and pays out dividends in sterling. Currency movements therefore have an impact on revenue receipts year-on-year. All else being equal, a falling pound increases revenue receipts from Emerging Markets, and vice versa.

Other factors aside from currency will also impact near term dividend receipts. The two most important of these are the strength of the Chinese economy and the possibility of a downturn in the US economy, as discussed above. However, despite the near-term uncertainties generated by these two issues, we are confident that the portfolio's long-term dividend generating power remains intact.

Outlook

Emerging markets do face some challenges in the year ahead. A possible slowdown in the US economy would have an adverse impact on demand for exports from emerging markets. Our technology company holdings are particularly exposed to this possibility, although consensus forecasts suggest a growth slowdown and a soft landing, rather than a contraction in activity. But slower growth, combined with higher funding costs, will also put pressure on overall market earnings.

China is likely to remain a principal focus of investors' attention. The Chinese economy has not accelerated in the way we, and most others, expected after its re-opening. However, we see several reasons to be incrementally optimistic about China's prospects. First, after a long period where the market has absorbed the various issues that China faces (property, the government's common prosperity agenda, lower consumer confidence), expectations have been reset to relatively low levels - whether we look at market valuations, currency valuation, expectations for growth and investor positioning. Secondly, although we do not expect a one-off massive stimulus announcement from the government (as happened in 2008), we are starting to see a series of small positive policy measures which we think will add up over time to help consumer confidence and the economy. Finally, and most importantly, we see China as an attractive market from a stock selection perspective, due to the breadth of the opportunity available as well as the incremental positive evolution of corporate life cycles (e.g. better capital allocation) as discussed above.

Taking a broader view, emerging market valuations are, in general, reasonably low, and we see many interesting opportunities to acquire companies which can generate healthy cash flow, resilient returns on equity and possess positive dividend policies that reward minority shareholders with regular pay-outs. In our view, successfully identifying such stocks will allow us to build a portfolio with a higher yield than the market, that also continues to deliver capital growth to shareholders.

We thank you for your ongoing support.

Omar Negyal

Isaac Thong

Portfolio Managers                                                                                                                      25th October 2023

PRINCIPAL AND EMERGING RISKS

The Board has overall responsibility for reviewing the effectiveness of the Company's system of risk management and internal control. The Board is supported by the Audit and Risk Committee in the management of risk. The risk management process is designed to identify, evaluate, manage, and mitigate risks faced. Although the Board believes that it has a robust framework of internal controls in place this can provide only reasonable, and not absolute, assurance against material financial misstatement or loss and is designed to manage, not eliminate, risk.

The Directors confirm that they have carried out a robust assessment of the principal risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. With the assistance of the Manager, the Audit and Risk Committee has drawn up a risk matrix, which identifies the principal and emerging risks to the Company and the ways in which these risks are managed or mitigated. These are reviewed and noted by the Board through the Audit and Risk Committee.

The principal risks fall broadly under the following categories: investment; strategy; political and economic; financial; operational and cybercrime; accounting, legal and regulatory; and environmental, social and governance.

The Board, through the Audit and Risk Committee, considers that the risks detailed below are the principal risks facing the Company currently, along with the financial risks detailed in note 22 to the financial statements. These are the risks that could affect the ability of the Company to deliver its strategy.

			Movement in risk
			status in year to
Principal risk	Description	Mitigation/Control	31st July 2023
Investment performance	Inappropriate investment decisions, for example poor stock selection or asset allocation may lead to underperformance against the Company's Benchmark index and peer companies.	The Board manages this risk by diversification of investments through its investment restrictions and guidelines which are monitored and reported by the Manager. The Investment Manager provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, currency performance, liquidity reports and peer group analyses. The Board monitors the implementation and results of the investment process with the Portfolio Managers, who attend Board meetings, and reviews data which show statistical measures of the Company's risk profile. The Board holds a separate meeting devoted to strategy each year.	Risk has been heightened by the current unfavourable economic conditions, caused by the inflationary environment and other global geopolitical factors such as the Russian/Ukrainian war, US/China tensions and the recent attacks by Hamas on Israel.
Income	There is the risk that the Company may underperform resulting in insufficient local currency generation, reducing the income available to pay dividends to shareholders.	The Investment Manager has an investment process which is designed to maximise the changes of the investment objective and deliver income. The Board regularly reviews investment and financial reports, including revenue estimates, to monitor the effectiveness of the investment process.	Whilst macroeconomic conditions have been challenging, this risk has remained stable during the year. The Company has continued to generate sufficient income over the year and paid a modest increase on the dividend from the prior year.
Strategy	If the Company's business objective and strategy is no longer appropriate, it may lead to a lack of investor demand. This may result in the Company's shares trading at a narrower premium or a wider discount. A widening discount out of line with the industry may lead to hostile action by shareholders or arbitrageurs. An inappropriate gearing strategy may lead to suboptimal returns; poor performance if over-geared in weak markets or performance foregone if under-geared in strong markets.	The Board holds a separate meeting devoted to strategy each year. The Board seeks to narrow the discount by undertaking measured buybacks of the Company's shares. The Company has authority to buy back its existing shares to enhance the NAV per share for its shareholders and to reduce the absolute level of discount and discount volatility. The Company and Manager work with the Corporate Broker to seek to increase demand for the Company's shares. The Board has set a gearing range within which the Investment Managers employ the Company's gearing on a strategic basis. Gearing levels are detailed in the monthly Portfolio restrictions and guidelines report provided to the Board and the level of gearing is discussed at each Board meeting.	Risk has been heightened. During the year, Emerging Markets lagged the United States and other asset classes, constrained by concerns about US inflation and monetary policy, the trajectory of the US dollar, geopolitical risks, and global macroeconomic conditions. Nevertheless, Emerging Markets economies have enjoyed an economic growth premium over those of developed markets over a number of years now, providing a source of varied investment opportunities across different asset classes, with valuations at attractive levels.
Political and Economic	The Company's returns, both capital and revenue, are affected by changes in the economic, political and corporate conditions, which can cause market and exchange rate fluctuations. Sustained underperformance of emerging markets as an asset class may result from risks such as the imposition of restrictions on the free movement of capital, ability to pay corporate dividends and change in legislation. Risks of economic, political and ultimately military conflicts between nations, regions and trading blocks are an ever present risk. So too are the risks of social dislocation or civil unrest within countries. These bring with them risks to economic growth, to investors' risk appetites and, consequently, to the valuations and distributions of companies in the portfolio.	This risk is managed to some extent by diversification of investments and by regular communication with the Investment Managers on matters of investment strategy and portfolio construction which will directly or indirectly include an assessment of these risks. The Board receives regular reports from the Manager and Company Broker regarding market outlook and considers thematic and factor risks, stock selection and levels of gearing on a regular basis.	Although political and economic risks have always been part of the investment process, the risk has been heightened by the quick succession of the events which have unfolded in recent times i.e. the outbreak of the Covid-19 pandemic, inflation and geopolitical crises in Russia-Ukraine, US-China tensions and the events in the Middle East adding significant pressure on markets and economies.
Financial	The financial risks faced by the Company include market price risk, interest rate risk, liquidity risk and credit risk.	Further details are disclosed in note 22 on pages 85 to 91 in the annual report.	Risk has been heightened to reflect concerns surrounding global inflation and monetary policy, the trajectory of the US dollar, geopolitical risks, and global macroeconomic conditions.
Operational and cybercrime	The Company is dependent on third parties for the provision of services and systems. Disruption to, or failure of, the Manager's accounting, dealing or payments systems or the depositary's or custodian's records could prevent accurate reporting and monitoring of the Company's financial position. There is also the potential for fraud, errors or control failures at the Company's Manager and or third party service providers, which could result in damage to the Company's reputation or result in losses. The threat of a cyber-attack is regarded as at least as important as more traditional physical threats to business continuity and security. In addition to threatening the Company's operations, such an attack is likely to raise reputational issues which may damage the Company's share price and reduce demand for its shares.	The Board keeps the services of the Manager and third-party service providers under continuous review, and the Management Engagement Committee undertakes a formal evaluation of performance on an annual basis. The Manager has in place service level agreements with its service providers that are attested to on an annual basis. Details of how the Board monitors the services provided by the Manager and its associates and the key elements designed to provide effective internal control are included within the Risk Management and Internal Control section of the Corporate Governance Report. The Audit and Risk Committee regularly reviews statements on internal controls and procedures from the Company's Manager. The Audit and Risk Committee also reviews a summary of annual controls reports from the Manager, with exceptions found in its control environment highlighted to the Audit and Risk Committee. The Company is subject to an annual external audit. The Company's service providers have robust business continuity plans. The Board works closely with the Investment Manager in identifying these threats and, in addition, monitor the strategies of its service providers. The Company benefits directly and/or indirectly from all elements of JPMorgan's Cyber Security programme. The information technology controls around the physical security of JPMorgan's data centres, security of its networks and security of its trading applications are tested by independent auditors and reported every six months against the AAF Standard.	Risk remained stable during the year. The Board continues to monitor the outsourced services and an annual appraisal of the performance, and ongoing appointment, of the Manager and the Company's third-party service providers is undertaken by the Management Engagement Committee. To date the Manager's cyber security arrangements have proven robust and the Company has not been impacted by any cyber attacks threatening its operations.
Accounting, Legal and Regulatory	Loss of its investment trust status and, as a consequence, gains within the Company's portfolio could be subject to Capital Gains Tax. A breach of the Companies Act 2006 could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the FCA Listing Rules or Disclosure, Guidance & Transparency Rules ('DTRs') could result in the Company's shares being suspended from listing which in turn would breach Section 1158.	The Section 1158 qualification criteria are continuously monitored by the Manager and the results reported to the Board at each Board meeting. The Board relies on the services of its Company Secretary, the Manager and its professional advisers to ensure compliance with the Companies Act 2006, the FCA Listing Rules, DTRs and the Alternative Investment Fund Managers' Directive.	Risk remained stable during the year. The Board is comfortable that the Manager continuously monitors the Company's compliance with the section 1158 qualification criteria.
Environmental, Social and Governance	The Board acknowledges that there are risks associated with investments in companies which fail to conduct business in a responsible manner. Insufficient consideration given to financially material ESG factors may lead to poor performance, and a reduction in demand for the Company's shares as investors seek greater ESG oversight in their portfolios. Climate change is one of the most critical issues confronting asset managers and their investors. Climate change may have a disruptive effect on the business models and profitability of individual investee companies, and indeed, whole sectors.	The Manager has integrated the consideration of financially material ESG factors into the Company's investment process. Further details are set out in the ESG report on pages 18 to 23 of the full Annual Report. The Board is also considering the threat posed by the direct impact of climate change on the operations of the Manager and other key service providers.	Risk remained stable during the year. The Board is comfortable that the Investment Manager has integrated ESG consideration into its investment process.

Emerging Risks

The AIC Code of Corporate Governance also requires the Audit and Risk Committee to put in place procedures to identify emerging risks. Emerging risks, which are not deemed to represent an immediate threat, are considered by the Audit and Risk Committee as they come into view and are incorporated into the existing review of the Company's risk register. However, since emerging risks are likely to be more dynamic in nature, they are considered on a more frequent basis, through the remit of the Board when the Audit and Risk Committee does not meet. The Board, through the Audit and Risk Committee, considers that the following are emerging risks:

Economic Contraction - A long term reduction in returns available from investments as a result of recession, stagnation, inflation or other extended exogenous factor which may render the Company's investment objectives and policies unattractive or unachievable.

Global conflicts - The political tensions between China and Taiwan and Hamas' attack on Israel have the potential to lead to war which would have a detrimental effect on the Company's investments in those countries and, probably, on many other global markets.

Artificial Intelligence - While it might equally be deemed a great opportunity and force for good, there appears also to be an increasing risk to business and society more widely from Artificial Intelligence ('AI').

The use of AI could be a significant disrupter to business models and whole companies, leading to added uncertainty in company valuations. Equally, embracing AI with strategies and proactive measures can gain advantages for companies and failing to seize the AI opportunity could lead to a risk of losing competitiveness.

TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES

Details of the management contract are set out in the Directors' Report on page 46 in the annual report. The management fee payable to the Manager for the year was £3,121,000 (2022: £3,432,000) of which £nil (2022: nil) was outstanding at the year end.

Included in administration expenses in note 6 on page 78 of the annual report are safe custody fees amounting to £205,000 (2022: £250,000) payable to JPMorgan Chase Bank N.A. of which £86,000 (2022: £39,000) was outstanding at the year end.

The Manager may carry out some of its dealing transactions through its group subsidiaries. These transactions are carried out at arm's length. The commission payable to JPMorgan Securities Limited for the year was £5,000 (2022: £14,000) of which £nil (2022: £nil) was outstanding at the year end.

The Company also holds cash in the JPMorgan US Dollar Liquidity Fund, which is managed by the Manager. At the year end this was valued at £2,184,000 (2022: £684,000). Income amounting to £212,000 (2022: £21,000) was receivable during the year of which £nil (2022: £6,000) was outstanding at the year end.

Stock lending income amounting to £20,000 (2022: £44,000) was receivable by the Company during the year. The Investment Manager's commissions in respect of such transactions amounted to £2,000 (2022: £5,000).

Handling charges on dealing transactions amounting to £20,000 (2022: £36,000) were payable to JPMorgan Chase Bank N.A. during the year of which £5,000 (2022: £7,000) was outstanding at the year end.

At the year end, total cash of £1,291,000 (2022: £3,603,000) was held with JPMorgan Chase Bank N.A. A net amount of interest of £4,000 (2022: £1,000) was receivable by the Company during the year from JPMorgan Chase Bank N.A. of which £nil (2022: £nil) was outstanding at the year end.

Full details of Directors' remuneration and shareholdings can be found on page 59 and in note 6 on page 78 of the annual report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under Company law the Directors must not approve the financial statements unless they are satisfied that, taken as a whole, the annual report and financial statements are fair, balanced and understandable, provide the information necessary for shareholders to assess the Company's performance, business model and strategy and that they give a true and fair view of the state of affairs of the Company and of the total return or loss of the Company for that period. 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 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.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The financial statements are published on the www.jpmglobalemergingmarketsincome.co.uk website, which is maintained by the Company's Manager. The maintenance and integrity of the website maintained by the Manager is, so far as it relates to the Company, the responsibility of the Manager. The work carried out by the Auditor does not involve consideration of the maintenance and integrity of this website and, accordingly, the Auditor accepts no responsibility for any changes that have occurred to the financial statements since they were initially presented on the website. The financial statements are prepared in accordance with UK legislation, which may differ from legislation in other jurisdictions.

Under applicable law and regulations the Directors are also responsible for preparing a Directors' Report, Strategic Report and Directors' Remuneration Report that comply with that law and those regulations.

Each of the Directors, whose names and functions are listed on page 45 of the annual report confirm that, to the best of their knowledge:

•        the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and return of the Company; and

•        the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The Board confirms that it is satisfied that the annual report and financial statements taken as a whole is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

For and on behalf of the Board

Elisabeth Scott

Chair

25th October 2023

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31st July 2023

	2023			2022
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments held at fair value
through profit or loss	-	21,726	21,726	-	(31,037)	(31,037)
Net foreign currency gains/(losses)	-	1,845	1,845	-	(3,249)	(3,249)
Income from investments	20,604	348	20,952	22,232	-	22,232
Interest receivable and similar income	236	-	236	66	-	66
Gross return/(loss)	20,840	23,919	44,759	22,298	(34,286)	(11,988)
Management fee	(936)	(2,185)	(3,121)	(1,030)	(2,402)	(3,432)
Other administrative expenses	(735)	-	(735)	(758)	-	(758)
Net return/(loss) before finance costs
and taxation	19,169	21,734	40,903	20,510	(36,688)	(16,178)
Finance costs	(582)	(1,356)	(1,938)	(239)	(557)	(796)
Net return/(loss) before taxation	18,587	20,378	38,965	20,271	(37,245)	(16,974)
Taxation	(1,679)	(99)	(1,778)	(2,118)	(1,205)	(3,323)
Net return/(loss) after taxation	16,908	20,279	37,187	18,153	(38,450)	(20,297)
Return/(loss) per share	5.70p	6.84p	12.54p	6.11p	(12.94)p	(6.83)p

STATEMENT OF CHANGES IN EQUITY

	Called up		Capital
	share	Share	redemption	Other	Capital	Revenue
	capital	premium	reserve	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31st July 2021	2,973	222,582	13	100,605	111,660	14,667	452,500
Repurchase of shares into Treasury	-	-	-	(513)	-	-	(513)
Net (loss)/return	-	-	-	-	(38,450)	18,153	(20,297)
Dividends paid in the year (note  2)	-	-	-	-	-	(15,155)	(15,155)
At 31st July 2022	2,973	222,582	13	100,092	73,210	17,665	416,535
Repurchase of shares into Treasury	-	-	-	(448)	-	-	(448)
Net return	-	-	-	-	20,279	16,908	37,187
Dividends paid in the year (note  2)	-	-	-	-	-	(15,428)	(15,428)
At 31st July 2023	2,973	222,582	13	99,644	93,489	19,145	437,846

STATEMENT OF FINANCIAL POSITION

At 31st July 2023

	2023	2022
	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	462,662	440,419
Current assets
Derivative financial assets	-	1
Debtors	3,392	8,556
Cash and cash equivalents	3,475	4,287
	6,867	12,844
Current liabilities
Creditors: amounts falling due within one year	(31,559)	(20,210)
Derivative financial liabilities	-	(2)
Net current (liabilities)/assets	(24,692)	(7,368)
Total assets less current liabilities	437,970	433,051
Creditors: amounts falling due after more than one year	-	(16,435)
Provision for capital gains tax	(124)	(81)
Net assets	437,846	416,535
Capital and reserves
Called up share capital	2,973	2,973
Share premium	222,582	222,582
Capital redemption reserve	13	13
Other reserve	99,644	100,092
Capital reserves	93,489	73,210
Revenue reserve	19,145	17,665
Total equity shareholders' funds	437,846	416,535
Net asset value per share	147.7p	140.3p

STATEMENT OF CASH FLOWS

For the year ended 31st July 2023

	2023	20221
	£'000	£'000
Cash flows from operating activities before finance costs and taxation
Total return/(loss) on ordinary activities	40,903	(16,178)
Adjustment for:
Net (gains)/losses on investments held at fair value through profit or loss	(21,726)	31,037
Net foreign currency (gains)/losses	(1,845)	3,249
Dividend income	(20,943)	(22,218)
Interest income	(216)	(22)
Scrip Dividends received as income	(9)	(14)
Realised gains on foreign exchange transactions	4	461
Realised exchange gains on US Dollar Liquidity Fund	70	479
Increase in accrued income and other debtors	(7)	(17)
(Decrease)/increase in accrued expenses	(221)	150
Net cash outflow from operations before dividends and interest1	(3,990)	(3,073)
Dividends received	20,571	18,648
Interest received	222	17
Overseas withholding tax recovered	-	174
Indian capital gains tax paid	(56)	(1,124)
Net cash inflow from operating activities	16,747	14,642
Purchases of investments	(117,620)	(102,855)
Sales of investments	117,735	106,618
Settlement of forward currency contracts	-	(46)
Net cash inflow from investing activities	115	3,717
Dividends paid	(15,428)	(15,155)
Repurchase of shares into Treasury	(448)	(513)
Repayment of loan	(16,613)	-
Drawdown of loan	16,613	-
Interest paid	(1,786)	(829)
Net cash outflow from financing activities	(17,662)	(16,497)
(Decrease)/increase in cash and cash equivalents	(800)	1,862
Cash and cash equivalents at start of year	4,287	2,467
Unrealised losses on foreign currency cash and cash equivalents	(12)	(42)
Cash and cash equivalents at end of year	3,475	4,287
Cash and cash equivalents consist of:
Cash and short term deposits	1,291	3,603
Cash held in JPMorgan US Dollar Liquidity Fund	2,184	684
Total	3,475	4,287

¹     The presentation of the Cash Flow Statement, as permitted under FRS 102, has been changed so as to present the 'reconciliation of net return before finance costs and taxation' to 'net cash inflow from operating activities' on the face of the Cash Flow Statement. Previously, this was shown by way of note to the Cash Flow Statement. Interest paid has also been reclassified to financing activities, previously shown under operating activities, as this relates to the loans drawndown. Other than consequential changes in the presentation of certain cash flow items, there is no change to the cash flows as presented in previous periods.

Analysis of changes in net debt

	As at		Other non-cash	As at
	31st July 2022	Cash flows	charges	31st July 2023
	£'000	£'000	£'000	£'000
Cash and cash equivalents
Cash	3,603	(2,312)	-	1,291
Cash equivalents	684	1,512	(12)	2,184
	4,287	(800)	(12)	3,475
Borrowings
US$20m fixed rate loan with NAB matured 2022	(16,435)	16,613	(178)	-
US$20m revolving rate loan with ING maturing 2023	(16,435)	-	891	(15,544)
US$20m revolving rate loan with Mizuho
maturing 2024	-	(16,613)	1,069	(15,544)
	(32,870)	-	1,782	(31,088)
Total net debt	(28,583)	(800)	1,770	(27,613)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31st July 2023

1.       Accounting policies

(a)     Basis of accounting

The 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 financial statements have been prepared on a going concern basis. In forming this opinion, the Directors have considered the impact of the ongoing direct and indirect consequences arising from the Russian invasion of Ukraine on the going concern and viability of the Company. In making their assessment, the Directors have reviewed income and expense projections and the liquidity of the investment portfolio, and considered the mitigation measures which key service providers, including the Manager, have in place to maintain operational resilience. The Directors have also reviewed the Company's compliance with debt covenants and noted the full support from 100% of voting shareholders for the continuation vote at the AGM in November 2021 in assessing the going concern and viability of the Company, and do not consider this view to have changed for the foreseeable future.

The policies applied in these financial statements are consistent with those applied in the preceding year.

2.       Dividends

(a)     Dividends paid and declared

	2023	2022
	£'000	£'000
Dividend paid
2022 Fourth interim dividend paid of 2.2p (2021: 2.1p)	6,530	6,242
First interim dividend paid of 1.0p (2022: 1.0p)	2,966	2,972
Second interim dividend paid of 1.0p (2022: 1.0p)	2,966	2,972
Third interim dividend paid of 1.0p (2022: 1.0p)	2,966	2,969
Total dividends paid in the year	15,428	15,155
	2023	2022
	£'000	£'000
Dividend declared
Fourth interim dividend declared of 2.3p (2022: 2.2p)	6,819	6,530

(b)    Dividend for the purposes of Section 1158 of the Corporation Tax Act 2010 ('Section 1158')

The revenue available for distribution by way of dividend for the year is £16,908,000 (2022: £18,153,000). The revenue reserve after paying the proposed dividend will be £12,326,000 (2022: £11,135,000).

	2023	2022
	£'000	£'000
First interim dividend paid of 1.0p (2022: 1.0p)	2,966	2,972
Second interim dividend paid of 1.0p (2022: 1.0p)	2,966	2,972
Third interim dividend paid of 1.0p (2022: 1.0p)	2,966	2,969
Fourth interim dividend declared of 2.3p (2022: 2.2p)	6,819	6,530
Total dividends for Section 1158 purposes	15,717	15,443

3.       Return/(loss) per share

	2023	2022
	£'000	£'000
Revenue return	16,908	18,153
Capital return/(loss)	20,279	(38,450)
Total return/(loss)	37,187	(20,297)
Weighted average number of shares in issue during the year	296,678,384	297,087,353
Revenue return per share	5.70p	6.11p
Capital return/(loss) per share	6.84p	(12.94)p
Total return/(loss) per share	12.54p	(6.83)p

4.       Net asset value per share

	2023	2022
Net assets (£'000)	437,846	416,535
Number of shares in issue	296,482,060	296,840,161
Net asset value per share	147.7p	140.3p

5.   Status of announcement

      2022 Financial Information

      The figures and financial information for 2022 are extracted from the Annual Report and Accounts for the year ended 31st July 2022 and do not constitute the statutory accounts for that year. The Annual Report and Accounts includes the Report of the Independent Auditor which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts has been delivered to the Registrar of Companies.

      2023 Financial Information

      The figures and financial information for 2023 are extracted from the Annual Report and Accounts for the year ended 31st July 2023 and do not constitute the statutory accounts for that year. The Annual Report and Accounts includes the Report of the Independent Auditor which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts will be delivered to the Registrar of Companies in due course.

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

26th October 2023

For further information please contact:

Emma Lamb

For and on behalf of

JPMorgan Funds Limited

0800 20 40 20 or [phone]

ENDS

A copy of the Annual Report will shortly be submitted to the National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The Annual Report will also shortly be available on the Company's website at www.jpmorganglobalemergingmarkets.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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