Half-year Report

JPMorgan European Discovery Trust

14 December 2023

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMorgan European DISCOVERY Trust plc

Half Year Report & FINANCIAL STATEMENTS for the six months

ended 30TH September 2023

Legal Entity Identifier: 54930049CEWDI46Y3U28

Information disclosed in accordance with DTR 4.2.2

JPMorgan European Discovery Trust plc, the FTSE 250 trust investing in European smaller companies, announces its interim results for the six-month period ended 30 September 2023 (the "Reporting Period").

European small caps underperformed large caps during the period, as small caps are particularly sensitive to 'risk off' conditions. The Company was not immune to these conditions and the portfolio underperformed its benchmark. However, the Manager has made important enhancements to the portfolio selection process with improved risk management. There has been improved performance over recent months as the portfolio adjustments begin to pay off. 

Financial highlights for the Reporting Period include:

·      NAV per Ordinary Share of 434.5 pence (as at 30 September 2023) down 12.8% from 31 March 2023

o  European small caps underperformed large caps with the benchmark index, MSCI Europe (ex UK) Small Cap Index, declining 5.7% v large cap MSCI Europe (ex UK) NR Index, which declined 2.0%

·      Shareholder total return of -10.7%, better than reported return on NAV of -11.4% with the Company's discount narrowing from -15.1% to -14.8%

·      Interim dividend increased to 2.5 p per share (2022: 1.2p)

o  To be paid on 5 February 2024 to shareholders on the register as at 29 December 2023

·      50,000 shares were repurchased over the period and a further 3,384,539 shares have been repurchased since the period end. The share price discount has narrowed to 11.3%, as at time of writing.

Operational highlights for the Reporting Period include:

·      Enhancements to the investment process and risk management, with increased exposure to Consumer Discretionary and Financials sectors

o  Added Technogym, manufacturer of premium gym equipment, De'Longhi, the leading producer of espresso machines for households and businesses, French reinsurer SCOR and Italian bank, BPER Banca

·      Arun Sarwal joined the Board as an independent non-executive director.

o  Arun has extensive experience developing technology businesses and working in financial services, across a range of industry segments and was previously CEO of Fund Communication Solutions at Broadridge

Outlook:

·      The Company's performance has improved over recent months as portfolio adjustments begin to pay off

·      Combination of low valuations of European small caps and possible worldwide central bank easing should be positive for the Company.

CHAIRMAN'S STATEMENT

Investment Performance

Investment companies have had a well-publicised 'tough year', with high inflation and global macro-uncertainty taking its toll on performance across many asset classes. Against this backdrop, the Trust underperformed its benchmark over the six months to end of September 2023. During the half year to 30th September 2023, the Company recorded a total return on net assets of -11.4%, with the Company's benchmark index, the MSCI Europe (ex UK) Small Cap NR Index, returning -5.7% over the same period. The total return to shareholders was -10.7%, slightly better than the reported return on NAV due moderate narrowing of the discount at which the Company's shares traded, from -15.1% to -14.8% over the six months.

The Company's longer-term performance has been mixed. Over the past five years, the total return on net assets was 2.0%, compared the benchmark total return of 20.1%. However, over the past ten years, the total return of 119.8% has been high in absolute terms and close to the benchmark return of 124.7%. 

The Investment Managers' Report that follows provides a review of markets, and more detail on the performance drivers within the portfolio, along with some discussion of the market outlook.

Revenue and Dividends

Gross revenue return for the six months to 30th September 2023 was higher than the corresponding period in 2022, at 12.62 pence per share (2022: 12.32 pence). The Board has decided the interim dividend of 2.5 pence (2022: 1.2 pence) per share which will be paid on 5th February 2024 to shareholders on the register as at 29th December 2023 (the ex-dividend date will be 28th December 2023). The Board will keep this matter under review and take into account the income received and the level of the Company's revenue reserves when determining the final dividend for the year in 2024.

Discount Management and Share Repurchases

The Board continues to monitor closely the level of the discount and believes that its ability to repurchase shares to minimise the short-term volatility and the absolute level of the discount is of prime importance. A total of 50,000 shares were repurchased in the six months to 30th September 2023. A further 3,384,539 shares have been repurchased since the period end. At the time of writing, the share price discount had narrowed to 11.3%.

The Board

In line with the Board's succession planning and the retirement of Ashok Gupta at the 2023 Annual General meeting, the Board undertook a search to identify a new Director. Following the successful conclusion of this search, and as announced on 9th May 2023, Arun Sarwal was appointed as an independent non-executive director with effect from the conclusion of the Annual General Meeting 2023. Arun has extensive experience developing technology businesses and working in financial services, across a range of industry segments including commercial & investment banking, and asset and wealth management across the globe. Some of his previous roles include his position as the CEO of Fund Communication Solutions at Broadridge.

Environmental, Social and Governance ('ESG')

As highlighted in the 2023 Annual Report, the Board has continued to engage with the Manager on the integration of ESG factors into its investment process. These issues are considered at every stage of the investment decision. The Board shares the Investment Managers' view of the significance of ESG factors, both when making initial investment decisions and during ongoing engagement with investee companies throughout the period of the investment. For more details, please refer to pages 23 to 26 of the 2023 Annual Report, which can be found on the Company's website at: www.jpmeuropeandiscovery.co.uk.

TCFD

JPMorgan Asset Management (JPMAM) published its first UK Task Force on Climate-related Financial Disclosures ('TCFD') Report for the Company in respect of the year ended 31 December 2022 on 30th June 2023. The report is designed to provide investors with transparency into the portfolio's climate-related risks and opportunities according to the Financial Conduct Authority (FCA) Environmental, Social and Governance (ESG) Sourcebook and the Task Force on Climate related Financial Disclosures (TCFD) Recommendations. The report is available on the Company's website under the ESG documents section www.jpmeuropeandiscovery.co.uk.

Outlook

Higher interest rates are beginning to bite and economic activity seems to be slowing, which is likely to put earnings and share prices under pressure as we head into 2024. However, there are reasons to be optimistic; rates are at, or near, their peaks in the major developed economies and may begin to fall next year.

The Manager has made changes to the investment process and has enhanced risk management to protect the portfolio on the downside in volatile markets and better position it to capture the upside. Relative performance has improved in recent months, suggesting that these recent portfolio changes are beginning to pay off. The Board welcomes the Managers' ongoing efforts to further enhance returns by taking advantage of current low valuations to acquire other interesting hidden gems, at attractive prices.

History shows that while European markets have been through challenging periods, performance has subsequently rebounded strongly as these challenges abate. European small cap companies tend to outperform as the broader market rallies. Looking ahead, any signs that central banks are considering lower interest rates should provide a significant boost to investor confidence and equity markets. If history is any guide, European small caps in general, and your Company in particular, should do even better. On this basis, the Board is optimistic about the Company's prospects over 2024 and beyond.

Marc van Gelder
Chairman
13th December 2023

INVESTMENT MANAGERS' REPORT

Review

Investor sentiment remained risk adverse as government bond yields continued to move higher. While inflationary pressures began to ease, concerns around unsustainably large government fiscal deficits grew. European small caps underperformed large caps, as small caps are particularly sensitive to such 'risk off' conditions.

The benchmark MSCI Europe (ex UK) Small Cap NR Index fell by 5.7 per cent over the review period versus the large cap MSCI Europe (ex UK) NR Index that fell 2.0 per cent.

Portfolio performance

The portfolio's NAV declined by 11.4 per cent, underperforming its benchmark by 5.7 percentage points, as the Company's investment process tends to struggle during periods of high volatility. A detailed overview of the Company's investment process follows this report.

Contributors to performance included French professional installations company, Spie, due to continued high demand driven by the energy transition towards electrification. Scout24, the leading German real estate digital classifieds platform, contributed due to strong growth even as the real estate market remained under pressure. Dutch engineering services provider, Arcadis, outperformed due to increasing demand driven by climate change, the energy transition, and urbanisation.

Over the period, detractors from performance included Bravida, the Swedish commercial building installation company. Its share price came under pressure as cost inflation depressed margins, even though orders held up well. Melexis, a Belgium provider of semiconductor chips primarily for the automotive end market, underperformed due to concerns that high inventories at their customers could temporarily depress demand. Swedish engineering services provider, AFRY, detracted as weaker demand impacted their utilisation rate which depressed margins.

Portfolio changes

During the year, we have made some important enhancements to our process and risk management in the portfolio, seeking to minimise downside risk during periods of volatility and capture upside risk when volatility reduces. The changes made have led to improved portfolio construction and include an increase in the number of holdings, thereby reducing thematic and sector concentration during periods of global stress.

Among other things, we increased the portfolio's exposure to the Consumer Discretionary sector. Valuations are attractive, inventory levels are normalising, and there is potential for real wage growth as wage increases feed through and inflation moderates. Falling input costs are a further tailwind to earnings. For instance, we added Technogym, the Italian manufacturer of premium gym equipment, and De'Longhi, a leading producer of espresso machines for households and businesses. We increased the portfolio's Financials holdings, including via French reinsurer, Scor, as operational momentum began to improve following a business restructuring, and Italian bank, BPER Banca, due to its very attractive valuation and better-than-expected profit growth.

To fund these purchases, we reduced our exposure to construction related industrials, as high bond yields are adversely impacting demand for new construction, and cost inflation is putting pressure on margins. For example, we sold Swiss listed Georg Fischer and Dutch Aalberts. We also sold or reduced companies whose market caps had risen due to outperformance to the point where they were no longer small caps. These sales included D'ieteren, a Belgium holding company focused primarily on automotive related end markets, and Prysmian, an Italian manufacturer of high voltage cables which are vital to support the transition towards renewable energy.

As a result of these changes Consumer Discretionary became the portfolio's largest sector overweight and Financials became the second largest overweight. Healthcare and Real Estate remained the largest underweights due to a combination of poor momentum and expensive valuations. France and Italy remained the two largest country overweights, while Norway and Switzerland remained the two most significant underweights.

At the end of September 2023, portfolio gearing was 3.8%.

Outlook

The long-anticipated global slowdown appears to have finally arrived, and with it the likelihood that central bank rates have peaked. This makes the near-term outlook for equities very hard to anticipate. On the one hand, company earnings are slowing, on the other, the headwinds created by higher rates are starting to show signs of abating. We suspect that earnings will dominate in the near term, keeping equities under pressure, while expectations of lower interest rates may play an increasingly supportive role next year.

Top-down macroeconomic uncertainty has been dominating the performance of stock markets for some time. As a result we have transitioned towards a more diversified portfolio comprising companies that are benefitting from the current high interest rate environment, while adding attractively valued companies that should do well as interest rates begin to fall. While this is a difficult balancing act, the Trust's performance has improved over recent months as portfolio adjustments are beginning to pay off. Looking to next year, the combination of extremely low valuations for European small caps, and possible central bank easing around the world, should be very positive for markets in general and even more so for our asset class.

Francesco Conte
Edward Greaves
Investment Managers
13th December 2023

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its half year report:

Principal Risks and Uncertainties

The principal and emerging risks and uncertainties faced by the Company fall into the following broad categories: investment underperformance and strategy; market and currency; accounting, legal and regulatory; operational; cyber-crime, financial, corporate governance and shareholder relations, climate change, pandemic risk, artificial intelligence, geopolitical and global recession. The Board has reviewed the principal risks and uncertainties, reported in the Annual Report and Financial Statements for the year ended 31st March 2023, and concluded that it does not believe that currently there are any emerging risks facing the Company. In the view of the Board, these principal risks and uncertainties are as much applicable to the remaining six months of the financial year as they were to the six months under review.

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. 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 12 months from the date of the approval of this half yearly financial report. For these reasons, they consider that there is reasonable evidence to continue to adopt the going concern basis in preparing the financial statements.

Directors' Responsibilities

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

(i)   the condensed set of financial statements contained within the half-yearly financial report has been prepared in accordance with FRS 104 'Interim Financial Reports' 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 September 2023, 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
Marc van Gelder
Chairman
13th December 2023

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30th SEPTEMBER 2023

	(Unaudited) Six months ended 30th September 2023			(Unaudited) Six months ended 30th September 2022			(Audited) Year ended 31st March 2023
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Losses on investments held at fair value through profit or loss	-	(102,583)	(102,583)	-	(164,778)	(164,778)	-	(45,535)	(45,535)
Foreign exchange gains on liquidity fund	-	235	235	-	1,819	1,819	-	2,265	2,265
Net foreign currency gains/(losses)	-	1,166	1,166	-	(1,455)	(1,455)	-	(2,366)	(2,366)
Income from investments	19,519	-	19,519	19,359	-	19,359	22,389	-	22,389
Interest receivable and similar income	351	-	351	70	-	70	113	-	113
Gross return/(loss)	19,870	(101,182)	(81,312)	19,429	(164,414)	(144,985)	22,502	(45,636)	(23,134)
Management fee	(944)	(2,202)	(3,146)	(989)	(2,308)	(3,297)	(1,925)	(4,491)	(6,416)
Other administrative expenses	(355)	-	(355)	(312)	-	(312)	(690)	-	(690)
Net return/(loss) before finance costs and taxation	18,571	(103,384)	(84,813)	18,128	(166,722)	(148,594)	19,887	(50,127)	(30,240)
Finance costs	(657)	(1,532)	(2,189)	(138)	(321)	(459)	(530)	(1,237)	(1,767)
Net return/(loss) before taxation	17,914	(104,916)	(87,002)	17,990	(167,043)	(149,053)	19,357	(51,364)	(32,007)
Taxation	(1,509)	-	(1,509)	(1,548)	-	(1,548)	(1,845)	-	(1,845)
Net return/(loss) after taxation	16,405	(104,916)	(88,511)	16,442	(167,043)	(150,601)	17,512	(51,364)	(33,852)
Return/(loss) per share (note 3)	10.42p	(66.62)p	(56.20)p	10.43p	(105.95)p	(95.52)p	11.11p	(32.60)p	(21.49)p

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or
discontinued in the period.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns
represent supplementary information prepared under guidance issued by the Association of Investment Companies.

The net return/(loss) after taxation represents the profit/(loss) for the period/year and also the total comprehensive income.

CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30th SEPTEMBER 2023

	Called up share capital £'000	Share premium £'000	Capital redemption reserve £'000	Capital reserves1 £'000	Revenue reserve1 £'000	Total £'000
Six months ended 30th September 2023 (Unaudited)
At 31st March 2023	7,874	1,312	7,762	749,999	18,115	785,062
Repurchase of shares into Treasury	-	-	-	(185)	-	(185)
Net (loss)/return on ordinary shares	-	-	-	(104,916)	16,405	(88,511)
Dividends paid in the period (note 4)	-	-	-	-	(12,283)	(12,283)
At 30th September 2023	7,874	1,312	7,762	644,898	22,237	684,083
Six months ended 30th September 2022 (Unaudited)
At 31st March 2022	7,924	1,312	7,712	805,617	11,154	833,719
Repurchase and cancellation of Company's own shares	(50)	-	50	(4,254)	-	(4,254)
Net (loss)/return on ordinary shares	-	-	-	(167,043)	16,442	(150,601)
Dividends paid in the period (note 4)	-	-	-	-	(8,661)	(8,661)
At 30th September 2022	7,874	1,312	7,762	634,320	18,935	670,203
Year ended 31st March 2022 (Audited)
At 31st March 2022	7,924	1,312	7,712	805,617	11,154	833,719
Repurchase and cancellation of Company's own shares	(50)	-	50	(4,254)	-	(4,254)
Net (loss)/return on ordinary activities	-	-	-	(51,364)	17,512	(33,852)
Dividends paid in the year (note 4)	-	-	-	-	(10,551)	(10,551)
At 31st March 2023	7,874	1,312	7,762	749,999	18,115	785,062

¹   These reserves form the distributable reserves of the Company and may be used to fund distribution of profits to investors via dividend payments.

CONDENSED STATEMENT OF FINANCIAL POSITION

AT 30th SEPTEMBER 2023

	(Unaudited) 30th September 2023 £'000	(Unaudited) 30th September 2022 £'000	(Audited) 31st March 2023 £'000
Fixed assets Investments held at fair value through profit or loss	710,083	642,346	839,582
Current assets
Debtors	5,966	5,482	16,100
Cash and cash equivalents	43,530	57,729	47,000
	49,496	63,211	63,100
Current liabilities
Creditors: amounts falling due within one year	(75,496)	(35,354)	(117,620)
Net current (liabilities)/assets	(26,000)	27,857	(54,520)
Total assets less current liabilities	684,083	670,203	785,062
Net assets	684,083	670,203	785,062
Capital and reserves
Called up share capital	7,874	7,874	7,874
Share premium	1,312	1,312	1,312
Capital redemption reserve	7,762	7,762	7,762
Capital reserves	644,898	634,320	749,999
Revenue reserve	22,237	18,935	18,115
Total shareholders' funds	684,083	670,203	785,062
Net asset value per share (note 5)	434.5p	425.6p	498.5p

CONDENSED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30th SEPTEMBER 2023

	(Unaudited) Six months ended 30th September 2023 £'000	(Unaudited) Six months ended 30th September 20221 £'000	(Audited) Year ended 31st March 2023 £'000
Cash flows from operating activities
Net loss before finance costs and taxation	(84,813)	(148,594)	(30,240)
Adjustment for:
Net losses on investments held at fair value through profit or loss	102,583	164,778	45,535
Foreign exchange gains on liquidity fund	(235)	(1,819)	(2,265)
Net foreign currency (gains)/losses	(1,166)	1,455	2,366
Dividend income	(19,519)	(19,171)	(22,201)
Interest income	(246)	-	-
Scrip Dividends received as income	-	(188)	(188)
Realised loss on foreign exchange transactions	(494)	(59)	(567)
Realised exchange loss/(gains) on liquidity	(123)	738	2,897
Decrease/(increase) in accrued income and other debtors	23	(2)	(40)
Increase/(decrease) in accrued expenses	32	(20)	17
Net cash outflow from operations before dividends and interest	(3,958)	(2,882)	(4,686)
Dividends received	16,517	16,084	17,806
Interest received	147	-	1
Overseas withholding tax recovered	1,227	531	820
Net cash inflow from operating activities	13,933	13,733	13,941
Purchases of investments	(350,432)	(258,862)	(733,345)
Sales of investments	381,566	282,414	675,882
Settlement of forward currency contracts	-	184	2
Net cash inflow/(outflow) from investing activities	31,134	23,736	(57,461)
Equity dividends paid	(12,283)	(8,661)	(10,551)
Repurchase and cancellation of the Company's own shares	-	(4,412)	(4,412)
Repayment of bank loans	(34,447)	(42,528)	(42,528)
Drawdown of bank loans	-	-	74,509
Interest paid	(2,169)	(536)	(1,184)
Net cash (outflow)/inflow from financing activities	(48,899)	(56,137)	15,834
Decrease in cash and cash equivalents	(3,832)	(18,668)	(27,686)
Cash and cash equivalents at start of period/year	47,000	75,318	75,318
Exchange movements	362	1,079	(632)
Cash and cash equivalents at end of period/year	43,530	57,729	47,000
Cash and cash equivalents consist of:
Cash and short term deposits	497	266	447
Cash held in JPMorgan Euro Liquidity Fund	43,033	57,463	46,553
Total	43,530	57,729	47,000

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/(loss) 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. 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 presentation of the certain cash flow items, there is no change to the cash flows as presented in previous periods.

Analysis of change in net debt

	As at 31st March 2023 £'000	Cash flows £'000	Other non-cash charges £'000	As at 30th September 2023 £'000
Cash and cash equivalents:
Cash	447	46	4	497
Cash equivalents	46,553	(3,878)	358	43,033
	47,000	(3,832)	362	43,530
Borrowings
Debt due within one year	(109,836)	34,447	1,657	(73,732)
	(109,836)	34,447	1,657	(73,732)
Net debt	(62,836)	30,615	2,019	(30,202)

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30th SEPTEMBER 2023

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 March 2023 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 condensed 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 July 2022.

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 September 2023.

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 March 2023.

3.    Return/(loss) per share

	(Unaudited) Six months ended 30th September 2023 £'000	(Unaudited) Six months ended 30th September 2022 £'000	(Audited) Year ended 31st March 2023 £'000
Return per share is based on the following:
Revenue return	16,405	16,442	17,512
Capital loss	(104,916)	(167,043)	(51,364)
Total loss	(88,511)	(150,601)	(33,852)
Weighted average number of shares in issue	157,474,385	157,662,663	157,569,054
Revenue return per share	10.42p	10.43p	11.11p
Capital loss per share	(66.62)p	(105.95)p	(32.60)p
Total loss per share	(56.20)p	(95.52)p	(21.49)p

4.    Dividends paid     

	(Unaudited) Six months ended 30th September 2023 £'000	(Unaudited) Six months ended 30th September 2022 £'000	(Audited) Year ended 31st March 2023 £'000
2023 final dividend of 7.8p (2022: 5.5p) per share	12,283	8,661	8,661
2023 interim dividend of 1.2p per share	-	-	1,890
Total dividends paid in the period/year	12,283	8,661	10,551

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

An interim dividend of 2.5p (2022:1.2p) has been declared in respect of the six months ended 30th September 2023, amounting to £3,937,000.

5.    Net asset value per share

	(Unaudited) Six months ended 30th September 2023	(Unaudited) Six months ended 30th September 2022	(Audited) Year ended 31st March 2023
Net assets (£'000)	684,083	670,203	785,062
Number of shares in issue	157,424,931	157,474,931	157,474,931
Net asset value per share	434.5p	425.6p	498.5p

6.    Fair valuation of investments

The fair value hierarchy analysis for financial instruments held at fair value at the period end is as follows:

	(Unaudited) Six months ended 30th September 2023		(Unaudited) Six months ended 30th September 2022		(Audited) Year ended 31st March 2023
	Assets £'000	Liabilities £'000	Assets £'000	Liabilities £'000	Assets £'000	Liabilities £'000
Level 1	710,083	-	642,346	-	839,582	-
Total	710,083	-	642,346	-	839,582	-

13th December 2023

For further information, please contact:

Priyanka Vijay Anand

For and on behalf of JPMorgan Funds Limited,

Company Secretary

0800 20 40 20 or [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

ENDS

A copy of the half year report will be submitted to the FCA's National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

The half year will also shortly be available on the Company's website at www.jpmeuropeandiscovery.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