Final Results

RNS Number : 4144Y

JPMorgan Multi-Asset Grwth & Income

12 May 2021

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN MULTI-ASSET GROWTH & INCOME PLC

ANNOUNCEMENT OF FINAL RESULTS

The Directors of JPMorgan Multi-Asset Growth & Income plc announce the Company's results

for the period ended 28^th February 2021

Legal Entity Identifier:

549300C0UCY8X2QXW762 Information disclosed in accordance with DTR 4.1.

CHAIRMAN'S STATEMENT

Introduction

The Company's objective is to generate income and capital growth through a multi-asset strategy, while seeking to maintain lower levels of volatility than a traditional equity portfolio. Our commitment to this objective is underpinned by the Company's distribution policy, which aims to achieve a yield of 4.0% on the Initial Issue Price of £1.00 per share at the time of the Company's launch in 2018. Following the Company's 28th February 2021 year end, the Board has made a number of changes to the Company's investment flexibility, distribution policy, reference index and name. Please see below for details.

Portfolio Performance

As at 28th February 2021, the Company had achieved a positive total return of 4.1% on its net asset value, an underperformance of 0.7% against the Company's Reference Index. During this reporting period to 28th February 2021, the Company's Reference Index comprised the LIBOR one-month sterling rate of 0.3% plus 4.5% per annum. (See below for details of the new Reference Index introduced following the Company's 28th February 2021 year end.). Since the 1st March 2021 to 10th May 2021 (the last practical date before printing this document) the Company's NAV total return increased 4.6%, ahead of the Company's new reference index (total return 6.0% per annum, effective since 1st March 2021) by 3.4%.

It has been a turbulent year for global economies and stock markets, commencing with the crash in global equity markets in March 2020 as investors reacted to the spread of Covid-19. As economies around the world went into 'lockdown', equity prices suffered significant falls on the back of contracting economies and downward corporate earnings revisions. However, in response to the threat of a global economic depression central banks injected an unprecedented level of economic stimulus into the world's economies. This massive government support helped to bolster investor confidence and resulted in an unexpected rally in equity markets from April 2020. Equity markets have remained relatively strong since, although performance has been disparate with businesses which flourished under lockdown conditions, such as internet and technology growth stocks, hitting record highs up until November, as earnings were revised upwards and stocks were rerated. The last four months of the Company's financial year, however, has seen a rotation back into value stocks as markets look ahead to post Covid-19 economic recovery and the potential threat of rising inflation. The Board has kept in regular contact with the JPM investment management team during the peaks of market turbulence in order to keep fully updated of developments. Further details of the portfolio are provided in the investment managers' report on page 10 of the Company's Annual Report.

Share Price Performance

The Company recorded a negative share price total return of 0.7% during the 12 months to 28th February 2021 as the discount to net asset value widened over the period. The price of the Company's shares commenced the year at a discount of 7.9% which increased to 12.6% as at 28th February 2021. The Company's share price on 10th May 2021 (the last practical date before printing this document), was 102p per share, and the discount was 5.5%.

During the 12 months, the Company bought back nil shares. From the 1st March 2021 and 10th May 2021 the Company bought back 1,803,000 shares. No new shares were allotted during the 12 months ended 28th February 2021. For further details please see the Share Capital section on page 22 of the Company's Annual Report.

Discount Management

The Board recognises that it is in the interests of Shareholders to maintain a share price as close as possible to the Net Asset Value per Share. The Board will consider using buybacks to address imbalances in supply of and demand for the Company's shares in the market, when it believes it is in the interests of all Shareholders and subject to normal market conditions.

Revenue and Distributions

During the 12 months to 28th February 2021, the Company's net revenue return after taxation was £3,576,000 (2020: £3,500,000). The Board has declared four interim distributions, each of 1.0p per share, in respect of the financial year to 28th February 2021, making a total of 4.0p per share for the year (2020: 4.0p), equating to a distribution yield of 4.0% on the Initial Issue Price as forecast in the Company's Prospectus dated 24th January 2018. As in previous years, the Company's dividend was covered by revenue arising in the year. The Company 'streamed' part of these distributions as detailed further on page 21 of the Company's Annual Report.

Gearing

The Company may use gearing, in the form of borrowings and derivatives, to seek to enhance returns over the long term. During the year the Company had no bank loans/facilities or structured debt, but did use derivatives to enhance portfolio returns and for efficient portfolio management. The level of the Company's gearing at the year-end was (6.9)%, (2020: (3.1)%), reflecting an increase in the net cash position of the Company at the year end. See page 84 of the Company's Annual Report for further details and definition of Gearing.

The Board of Directors

As detailed in previous Chairman's Statements, during the year Richard Hills retired from the Company as a Director at the Company's Annual General Meeting on 2nd July 2020 and Sir Laurence Magnus retired as Chairman and a Director of the Company on 1st October 2020 and was succeeded by myself as Chairman. Following the Board's announcement on 18th August 2020 of its decision to appoint Patrick Edwardson as a Non-Executive Director, he joined the Board on 1st October 2020. It is the Board's current intention to continue with a complement of four Directors.

In compliance with corporate governance best practice, all Directors, will be standing for re-appointment at the forthcoming AGM.

Following the Company's annual evaluation of the existing Directors, the Chairman, the Board and its Committees, the Board recommends to shareholders that all directors standing be reappointed.

In accordance with the AIC 2019 Code of Corporate Governance, endorsed by the Financial Reporting Council, the Company has established a separate Remuneration Committee. The Company's Directors fees were last increased with effect from 1st March 2019 and the fees of the Chairman of the Board and the Chairman of the Audit Committee had remained unchanged since inception in March 2018. Therefore, in order to maintain the fees in line with its peers, the Board agreed that the current fees should be increased with effect from 1st March 2021. See page 39 of the Company's Annual Report for further details.

Changes to Investment Flexibility, Distribution Policy, Reference Index and Name of Company

As detailed in the Company's RNS Announcement released on 23rd March 2021, whilst maintaining the Company's investment objectives, the Company has made the following adjustments effective following its 28th February 2021 year end.

Investment Flexibility

The Manager will have greater flexibility in the allocation of the portfolio across the JPM strategies following a revision of the expectation that the portfolio is required to provide a fully covered dividend from its income.

Distribution Policy

Cognisant of a rise in the medium term risk of rising inflation the Board will link its progressive distribution policy to the UK's annual Consumer Price Index (CPI) from the current distribution level of 4 pence per share per annum. The Company will draw on distributable revenue and capital reserves when the dividend is not covered by current year income.

Reference Index

LIBOR is likely to cease to exist by the end of 2021. While SONIA (Sterling Overnight Interbank Average Rate) is likely to be the most widely used replacement for LIBOR, the Board considered it an opportune moment to review the Company's Reference Index of LIBOR plus 4.5%. After consideration, the Board decided that a clear and simple Reference Index would better serve Shareholders. Effective from 1st March 2021 the Company's Reference Index is equivalent to a total return of 6.0% per annum, measured over a rolling five year period. The Manager believe that, although higher than the previous target, this return is achievable based on JPMorgan's long term return assumptions which inform the Strategic Asset Allocation for the portfolio, together with additional alpha from active positioning both bottom up and top down.

Name of the Company

To better reflect the investment objective of providing an attractive total return of growth and income, the Company has changed its name to JPMorgan Multi-Asset Growth & Income plc, effective from 31st March 2021. The Company's stock market ticker, MATE, was unchanged.

Investment Manager

The performance of the Manager was formally evaluated by the Board. Following this review undertaken in February 2021 by the recently established Management Engagement Committee, the Board concluded that the performance of the Manager had been satisfactory and that their services should be retained.

In advance of the first UK lockdown in March 2020, JPMorgan introduced special work practices with the majority of employees working from home. The Board has met the Investment Managers on line and has conducted all its affairs remotely. This shift has been a remarkably smooth operation, in response to a situation none of us could have anticipated at the start of 2020. It is pleasing to report that the Company's business has been able to continue without disruption, although we all look forward to a return to normality as soon as the Covid-19 threat subsides.

Environmental, Social and Governance Considerations

As detailed in the Investment Managers' report, Environmental, Social and Governance ('ESG') considerations are integrated into the Investment Managers' investment process. The Board shares the Investment Managers' view of the importance of ESG factors when making investments for the long term and of the necessity of continued engagement with investee companies throughout the duration of the investment. Further information on the Manager's ESG process and engagement is set out in the ESG Report on pages 13 to 14 of the Company's Annual Report.

Adoption of new Articles of Association

Resolution 12, which will be proposed as a special resolution, seeks shareholder approval to adopt new Articles of Association (the 'New Articles') in order to update the Company's current Articles of Association (the 'Existing Articles'). The proposed amendments being introduced in the New Articles primarily relate to changes in law and regulation and developments in market practice since the Existing Articles were adopted. The proposed amendments, if approved, include the possibility of the Company holding shareholder meetings whereby shareholders are not required to attend the meeting in person at a physical location. This will facilitate shareholder attendance in situations where they are prevented, through laws or regulations, from attending at a physical location. The Directors have no present intention of holding 'virtual-only' meetings. Proposed amendments also include changes in response to the introduction of international tax regimes requiring the exchange of information. A summary of the principal amendments being introduced in the New Articles which the Board considers will be of most interest to shareholders is set out in the appendix to the AGM Notice (on page 83 of this document). Other amendments, which are of a minor, technical or clarifying nature, have not been summarised in the appendix.

Annual General Meeting

The Company's third AGM will be held at 60 Victoria Embankment, London EC4Y 0JP London at 2.30 p.m. on Tuesday, 6th July 2021.

The format of the Company's 2021 AGM has unfortunately had to be adapted again. Given the uncertainty about the course of Covid-19 and due to ongoing public health concerns, the Board currently intends to limit physical attendance at the AGM only to Directors or their proxies and representatives from J.P. Morgan. The Board will ensure that the minimum quorum is present to allow the formal business to proceed. If law or Government guidance so requires at the time of the Meeting, the Chairman of the Meeting will limit, in his sole discretion, the number of individuals in attendance at the Meeting. Should the Government guidance change and the current restrictions on group gatherings be relaxed by the time of the Meeting, the Company may still impose entry restrictions on certain persons wishing to attend the Annual General Meeting in order to secure the safety of those attending the Meeting and the orderly conduct of the Meeting.

Despite these restrictions, the Board is keen to ensure shareholders have the opportunity to hear from the Manager and, accordingly, at the time of the AGM a webinar will be organised, to include a presentation from the Chairman of the Board and the Investment Managers, which may be viewed at the time by registered participants. This will be followed by a live question and answer session. Shareholders are invited to register as participants to join the webinar and address any questions they have either by submitting questions during the webinar or in advance of the AGM via the 'Ask a Question' link on the Company's website or via email to [e-mail]. Details on how to register as a participant for this event will be posted on the Company's website, or by requesting the details via the email address above.

The Board strongly encourages all shareholders to submit their votes in advance of the meeting, so that these 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 Annual General Meeting on pages 80 to 82 of the Company's Annual Report.

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

The Board would like to thank shareholders for their understanding and co-operation at this difficult time. We very much hope that you and your families are safe and well and look forward to meeting with you when, as we all hope, normality has returned.

Outlook

The year ahead should hopefully prove less volatile for global stock markets than the last financial year. The vaccine rollout around the world has fuelled optimism for a strong economic recovery later in the year as national 'lockdowns' abate and some form of economic normality resumes. The very significant stimulus packages passed by central governments, most notably in the US, in addition to record levels of household savings should help to further boost economic recovery. Set against this optimistic scenario are the fears of the return of inflation, high or excessive debt levels and recurring trade tensions. Furthermore, the scale and longevity of Covid-19 remains unknown, with the impact of new variants and the possibility of further waves an imponderable. Market valuations are relatively expensive compared to their history and there is potential for earnings disappointment.

The Board has confidence in the Investment Managers' ability to navigate these difficult markets. The recent changes to the Company, as detailed above, will allow the Investment Managers greater freedom to allocate across asset classes in order to achieve the objectives of generating income and capital growth which the Company set at launch. The investment trust structure facilitates a long term investment outlook and the Company's progressive dividend policy, linked to CPI, should provide some reassurance to shareholders in the current low interest rate environment.

Sarah MacAulay

Chairman     12th May 2021

INVESTMENT MANAGERS' REPORT

Introduction

In this report, we review the Company's investment performance for the year ending 28th February 2021. We consider the impact of the unprecedented global lockdowns, distress in financial markets and subsequent path of economic and market recovery. We examine how the Company's diversified portfolio has performed in this environment and discuss how we are positioned for the year ahead.

Setting the scene - our investment approach

We seek to achieve the best risk-adjusted returns by investing in a globally diversified portfolio that includes company shares, bonds and other assets. Our aim is to construct a well balanced portfolio which is flexible with respect to asset class and geography. This flexibility allows us to take advantage of the best opportunities to deliver an attractive total return to our shareholders. We take a research-based approach, positioning assets in line with our medium to long-term view of markets and leveraging the expertise of active managers in portfolio construction.

Market review: An unprecedented year with Covid-19 disruption, encouraging signs of recovery and a new economic cycle

The economic and policy implications from the Covid-19 pandemic dominated financial market performance in 2020. Equity markets endured their sharpest fall since the Great Depression as the pandemic spread and economies locked down; they rebounded to record highs later in the year following significant stimulus from governments and in anticipation of an economic recovery.

Global markets fell sharply in February driven by concerns over a sudden downward dislocation in global economic activity due to the outbreak of Covid-19 which became a pernicious global pandemic by the end of the first quarter of 2020, spreading to nearly 200 countries. Further contributing to market volatility, crude oil prices plunged to levels last seen in 2002.

The economic impact from social distancing measures and lockdowns was severe, but governments and central banks acted quickly with stimulus: the US government approved a record fiscal stimulus package of over USD 2 trillion, while the Federal Reserve (Fed) and other central banks launched programmes to support liquidity and demand for fixed income assets.

Stocks rebounded from late March 2020 as strong stimulus measures were being introduced by governments and central banks. However, volatility remained heightened as risks around containment of the virus and the longer-lasting economic effects weighed on sentiment.

In September, despite economic data revealing a solid recovery, markets pared some of their gains as investors turned their attention to a possible second wave of Covid-19 infections, renewed lockdown measures and uncertainty around the prospects of additional fiscal stimulus measures from the US government. At the same time, monetary policy in the US and UK lifted market sentiment and provided support for risk assets.

Market volatility remained high in the fourth quarter, amid heavy news flow regarding the US election, Brexit negotiations and the pandemic. Joe Biden's victory in the US presidential election, additional fiscal stimulus measures from the US government, a Brexit deal and the promise of an imminent Covid-19 vaccine lifted markets. However, markets gave back some of their gains as news of a new and more contagious strain of the virus ignited fears of travel restrictions and further lockdowns.

After a strong start to 2021, most equity markets gave up their gains as January came to a close. The global roll-out of vaccinations and the promise of further fiscal and monetary stimulus helped the market to overlook concerns about virus-driven restrictions but towards the end of February stock markets declined as fears of higher interest rates and inflation intensified.

How has the Company performed over the year under review?

The Company delivered a positive return on net assets of +4.1% over the year, underperforming the Company's Reference Index which returned +4.8%.

The portfolio's equity exposure was the largest positive contributor to absolute performance. While our position in physical equities was beneficial overall, our regional positioning through index futures (by which means we agree to trade a specific index at a specific future price and date) in developed markets provided a negative contribution to return chiefly due to the unexpected speed of the rebound in equity markets in April 2020. Please see Note 21 (a) (iii) on page 70 for further details of the use and management of derivatives. In contrast, our emerging market equity exposure provided a positive contribution. Fixed income in aggregate detracted from performance while our allocation to infrastructure was beneficial over the year.

Portfolio review

We made significant asset allocation changes through the period as we continued to position the Trust in line with favoured markets and regions. We reduced our equity position significantly in March to the lowest historical levels held, before starting to scale exposure back up through the second quarter as volatility eased and markets started to bounce back from the lows. Going into the market decline with significant equity exposure was clearly detrimental to performance but we were able to regain the losses by the end of the financial year.

While stock selection is undertaken by our in-house International Equity Group, we tilt regional positioning to reflect our latest views, implemented via index futures. As we increased equity risk in the portfolio, we added to the US as we believed the strong fiscal and monetary policy response would provide upside potential in the US and emerging markets where valuations were supportive.

In the Company's portfolio of fixed income investments, we meaningfully reduced our allocation to high yield bonds in the initial months of the Company's financial year in response to the pandemic driven economic crisis and significantly increased exposure from May given the backdrop of support from the Fed. While we added investment grade corporate bonds in March against a favourable backdrop, we exited this position in September as we added further to equity markets. Towards the end of 2020, we added exposure to local currency-denominated emerging market debt amid strong manufacturing and export data. We have significantly reduced our exposure to global government bonds to express our views on duration in recent months.

Our bespoke equity portfolio generated returns in excess of the MSCI World High Dividend Yield index. At a sector level, the largest contributors to performance were technology - semi & hardware and utilities. Detractors included pharma/medtech and transportation. At a stock level, Taiwan Semiconductors was the largest contributor. The stock performed very strongly over the period as the company affirmed its leadership in foundries for nanometer-scale chip production. An overweight in Iberdrola, the Spanish electric utility company, also contributed positively. As market volatility intensified in the second quarter of last year due to the Covid-19 pandemic, investors turned towards defensive sectors and in particular towards renewable energy generation companies. Not holding Ventas, a US based healthcare real estate investment trust, was the largest detractor over the period. During the year, the stock was impacted by the pandemic and the risks to the senior housing business that could lead to a decline in occupancy and cash flow pressures on the industry. The stock rebounded strongly in November on the vaccine news and after reporting better quarterly earnings on lower expenses. An overweight position in Coca-Cola also detracted from performance. The stock declined strongly at the beginning of 2021 on account of prolonged social restrictions across its key markets and concerns loomed over a potential tax liability.

Contribution to the Portfolio by Asset Class - Year to 28th February 2021

Asset Class	%
Global Equities	5.1
Emerging Market Equities	3.7
Infrastructure	0.6
Government Bonds	-0.1
Corporate Bonds	0.8
High Yield Bonds	0.2
Emerging Market Debt	-0.7
Equity Futures	-3.8
Cash	-0.3
	5.5
Ongoing charges	-1.0
Share Buybacks	-
Other	-0.4
Total Return on Net Asset ValueA	4.1

^A   Alternative Performance Measure ('APM').

A glossary of terms and APMs is provided on pages 84 to 85   of the Company's Annual Report.

Changes to Investment Flexibility

As a result of the increased investment flexibility referred to in the Chairman's Statement, we have made changes to better position the Trust for growth. This has included reshaping the bespoke equity portfolio which has led to significant changes in the sectoral and geographical composition. We have also made some changes in our emerging market equity exposure and have sold out of our position in the JPM Income Fund. We believe the increased flexibility afforded in respect of the yield target will enable us to deliver a more attractive total return for shareholders.

Outlook: weathering the economic uncertainty

We continue to believe that economic growth will be above trend for the rest of the year, initially powered by the US recovery but with growth picking up across other regions in the middle of the year. We expect inflation to be volatile but ultimately contained, while monetary policy remains accommodative. We therefore maintain our risk on view, however we seek to express it in a more nuanced way, reflecting the themes of higher yields, cyclical earnings recovery and above trend growth.

The portfolio remains well diversified and we will actively pursue opportunities for growth across asset classes and regions as they present themselves, both through our underlying manager selection and active asset allocation.

Katy Thorneycroft

Gareth Witcomb

Investment Managers       12th May 2021

PRINCIPAL AND EMERGING RISKS

The Directors confirm that they have carried out a robust assessment of the principal risks and emerging risks facing the Company, including climate change and those that would threaten its business model, future performance, solvency or liquidity.

With the assistance of the Manager, the Board has drawn up a risk matrix which identifies the key and emerging risks to the Company. In assessing the risks and how they can be mitigated, the Board has given particular attention to those issues that threaten the viability of the Company. These key risks fall broadly under the following categories:

•   Investment and Strategy

An inappropriate investment strategy, for example asset allocation or the level of gearing or foreign exchange exposure, may lead to underperformance against peer companies. This may result in the Company's shares trading on a narrower premium or a wider discount or insufficient income generation which may lead to a cut in the dividend. The Board manages these risks by diversification of investments through its investment restrictions and guidelines, which are monitored and reported on by the Manager. The Manager provides the Directors with timely and accurate management information, including performance data, revenue estimates, currency performance, liquidity reports and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Managers, who attend Board meetings, and reviews data which show statistical measures of the Company's risk profile. The Investment Managers review the Company's gearing strategically.

•   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 21 on pages 67 to 74.

•   Corporate Governance and Shareholder Relations

Details of the Company's compliance with Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance report on pages 32 to 37.

•   Operational

Loss of key staff by the Manager, such as the Investment Managers, could affect the performance of the Company. 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. This includes the risk of cybercrime and consequent potential threat to security and business continuity. 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 in the Risk Management and Internal Control section of the Corporate Governance report on page 34.

The threat of cyber attack, in all its guises, is regarded as at least as important as more traditional physical threats to business continuity and security. The Company benefits directly 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 reporting accountants and reported on every six months against the Audit and Assurance Faculty ('AAF') standard.

•   Accounting, Legal and Regulatory

In order to qualify as an investment trust, the Company must comply with Section 1158 of the Corporation Tax Act 2010 ('Section 1158'). Details of the Company's approval are given on page 24 above. Was the Company to breach Section 1158, it would lose its investment trust status and, as a consequence, gains within the Company's portfolio could be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by the Manager and the results reported to the Board each month. The Company must also comply with the provisions of the Companies Act 2006 and, since its shares are listed on the London Stock Exchange, the FCA Prospectus Rules, Listing Rules and Disclosure, Guidance & Transparency Rules ('DTRs'). A breach of the Companies Act could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the FCA Listing Rules or DTRs could result in the Company's shares being suspended from listing which in turn would breach Section 1158. 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 Prospectus Rules, Listing Rules, DTRs and the Alternative Investment Fund Managers Directive.

•   Global Pandemics

The outbreak and spread of Covid-19 has demonstrated the risk of global pandemics, in whatever form a pandemic takes. Covid-19 poses a significant risk to the Company's portfolio. At the date of this report, the virus has contributed to significant volatility in trading, although the Board and Manager expect that the portfolio's holdings will not suffer a material long-term impact and should continue to recover as the vaccine roll out develops pace. Should a new variant of the virus spread more aggressively or become more virulent, it may present risks to the operations of the Company, its Manager and other major service providers. The Board and the Manager will continue to monitor developments as they occur and seek to learn lessons which may be of use in the event of future pandemics.

TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES

Details of the management contract are set out in the Directors' Report on page 29. The management fee payable to the Manager for the year was £476,000 (2020: £525,000) of which £nil (2020: £nil) was outstanding at the year end.

During the year £nil (2020: £22,000) was payable to the Manager for the administration of savings scheme products, of which £nil (2020: £nil) was outstanding at the year end.

Included in administration expenses in note 6 on page 60 are safe custody fees payable to JPMorgan Chase N.A. amounting to £3,000 (2020: £4,000) of which £1,000 (2020: £1,000) was outstanding at the year end.

The Manager may carry out some of its dealing transactions through group subsidiaries. These transactions are carried out at arm's length. The commission payable to JPMorgan Securities Limited for the year was £nil (2020: £nil) of which £nil (2020: £nil) was outstanding at the year end.

The Company holds investments in funds managed by JPMAM. At 28th February 2021 these were valued at £23.3 million (2020: £17.5 million) and represented 28.3% (2020: 20.4%) of the Company's investment portfolio. During the year the Company made £28.5 million (2020: £9.4 million) purchases and sales with a total value of £20.5 million (2020: £8.5 million). Income amounting to £1.1 million (2020: £1.0 million) of such investments was receivable from these investments during the year of which £nil (2020: £nil) was outstanding at the year end.

The Company holds investments in Infrastructure Investment Fund (IIF UK 1 LP), the General Partner of IIF UK 1 LP is an affiliate of JPMorgan Asset Management (UK) Limited. At 28th February 2021 these were valued at £8.3 million (2020: £9.1 million) and represented 10.1% (2020: 10.6%) of the Company's investment portfolio. During the year the Company made £nil (2020: nil) purchases and £nil (2020: £nil) sales. Income amounting to £928,000 (2020: £925,000) of such investments was receivable from these investments during the year of which £nil (2020: £145,000) was outstanding at the year end.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the annual report and 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. Under Company law the Directors must not approve the financial statements unless they are satisfied that, taken as a whole, the annual report and accounts 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 a 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 accounts are published on the www.jpmmultiassetgrowthandincome.com 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 auditors does not involve consideration of the maintenance and integrity of this website and, accordingly, the auditors accept no responsibility for any changes that have occurred to the accounts since they were initially presented on the website. The accounts 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 and Directors' Remuneration Report that comply with that law and those regulations.

Each of the Directors, whose names and functions are listed on page 28, 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 or loss of the Company.

The Board confirms that it is satisfied that the annual report and accounts taken as a whole are fair, balanced and understandable and provide the information necessary for shareholders to assess the strategy and business model of the Company.

For and on behalf of the Board

Sarah MacAulay

Chairman

12th May 2021

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 28TH FEBRUARY 2021

	2021			2020
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments held at
fair value through profit or loss	-	(3,283)	(3,283)	-	3,943	3,943
Net foreign currency gains/(losses)	-	3,284	3,284	-	(2,608)	(2,608)
Income from investments	3,770	-	3,770	4,506	-	4,506
Interest receivable and similar income	529	-	529	30	-	30
Gross return	4,299	1	4,300	4,536	1,335	5,871
Management fee	(167)	(309)	(476)	(184)	(341)	(525)
Other administrative expenses	(388)	-	(388)	(393)	-	(393)
Net return before finance costs
and taxation	3,744	(308)	3,436	3,959	994	4,953
Finance costs	(13)	(24)	(37)	(2)	(3)	(5)
Net return/(loss) before taxation	3,731	(332)	3,399	3,957	991	4,948
Taxation (charge)/credit	(155)	71	(84)	(457)	102	(355)
Net return/(loss) after taxation	3,576	(261)	3,315	3,500	1,093	4,593
Return/(loss) per share	4.15p	(0.30)p	3.85p	4.06p	1.27p	5.33p

STATEMENT OF CHANGES IN EQUITY

	Called up
	share	Special	Capital	Revenue
	capital	reserve1	reserves1	reserve1	Total
	£'000	£'000	£'000	£'000	£'000
At 28th February 2019	931	84,925	1,050	495	87,401
Repurchase of shares into Treasury	-	(157)	-	-	(157)
Net return	-	-	1,093	3,500	4,593
Distributions paid in the year (note 3)	-	-	-	(3,446)	(3,446)
At 29th February 2020	931	84,768	2,143	549	88,391
Net (loss)/return	-	-	(261)	3,576	3,315
Distributions paid in the year (note 3)	-	-	-	(3,444)	(3,444)
At 28th February 2021	931	84,768	1,882	681	88,262

¹   These reserves form the distributable reserve of the Company and may be used to fund distributions to investors.

STATEMENT OF FINANCIAL POSITION

AT 28TH FEBRUARY 2021

	2021	2020
	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	82,213	85,625
Current assets
Derivative financial assets	3,259	3,064
Debtors	15,186	466
Cash and cash equivalents	5,459	3,876
	23,904	7,406
Current liabilities
Creditors: amounts falling due within one year	(16,925)	(134)
Derivative financial liabilities	(930)	(4,506)
Net current assets	6,049	2,766
Total assets less current liabilities	88,262	88,391
Net assets	88,262	88,391
Capital and reserves
Called up share capital	931	931
Special reserve	84,768	84,768
Capital reserves	1,882	2,143
Revenue reserve	681	549
Total shareholders' funds	88,262	88,391
Net asset value per share	102.5p	102.7p

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 28TH FEBRUARY 2021

	2021	2020
	£'000	£'000
Net cash outflow from operations before dividends and interest	(597)	(758)
Dividends received	2,696	3,163
Interest received	1,021	1,049
Overseas tax recovered	6	14
Interest paid	(37)	(5)
Net cash inflow from operating activities	3,089	3,463
Purchases of investments	(60,971)	(56,065)
Sales of investments	62,942	58,284
Settlement of forward foreign currency contracts	222	716
Settlement of future contracts	531	(2,140)
Settlement of option contracts	(785)	(74)
Net cash inflow from investing activities	1,939	721
Repurchase of shares into Treasury	-	(342)
Distributions paid	(3,444)	(3,446)
Net cash outflow from financing activities	(3,444)	(3,788)
Increase in cash and cash equivalents	1,584	396
Cash and cash equivalents at start of year	3,876	3,463
Exchange movements	(1)	17
Cash and cash equivalents at end of year	5,459	3,876
Increase in cash and cash equivalents	1,584	396
Cash and cash equivalents consist of:
Cash and short term deposits	2,210	3,164
Cash held in JPMorgan Sterling Liquidity Fund	3,249	712
Total	5,459	3,876

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28TH FEBRUARY 2021

1.  Accounting policies

  Basis of accounting

The financial statements are prepared under 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 October 2019.

The financial statements have been prepared on a going concern basis. In forming this opinion, the Directors have considered any potential impact of the Covid-19 pandemic 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 particularly in light of Covid-19. The disclosures on long term viability and going concern on pages 24 and 36 of the Directors' Report in the Company's Annual Report form part of these financial statements.

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

2.  Return/(loss) per share

	2021	2020
	£'000	£'000
Revenue return	3,576	3,500
Capital (loss)/return	(261)	1,093
Total return	3,315	4,593
Weighted average number of shares in issue during the year	86,096,408	86,117,323
Revenue return per share	4.15p	4.06p
Capital (loss)/return per share	(0.30)p	1.27p
Total return per share	3.85p	5.33p

3.  Distributions

(a)  Distributions paid and declared

	2021	2020
	£'000	£'000
Distributions paid
2020 fourth distribution of 1.0p (2019: 1.0p)	861	863
2021 first interim distribution of 1.0p (2020: 1.0p)	861	861
2021 second interim distribution of 1.0p (2020: 1.0p)	861	861
2021 third interim distribution of 1.0p (2020: 1.0p)	861	861
Total distribution paid in the year	3,444	3,446
Distribution declared
2021 fourth interim distribution of 1.0p (2020: 1.0p)	861	861

All distributions paid and declared in the year are and will be funded from the revenue, capital and special reserves.

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

The revenue available for distribution by way of dividend and interest for the year is £3,576,000 (2020: £3,500,000)

	2021	2020
	£'000	£'000
2021 first interim distribution of 1.0p (2020: 1.0p)	861	861
2021 second interim distribution of 1.0p (2020: 1.0p)	861	861
2021 third interim distribution of 1.0p (2020: 1.0p)	861	861
2021 fourth interim distribution declared of 1.0p (2020: 1.0p)	861	861
	3,444	3,444

4.  Net asset value per share

	2021	2020
Net assets (£'000)	88,262	88,391
Number of shares in issue	86,096,408	86,096,408
Net asset value per share	102.5p	102.7p

Status of results announcement

2020 Financial Information

The figures and financial information for 2020 are extracted from the Annual Report and Accounts for the year ended 29^th February 2020 and do not constitute the statutory accounts for the year. The Annual Report and Accounts include the Report of the Independent Auditors 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 Register of Companies in due course.

2021 Financial Information

The figures and financial information for 2021 are extracted from the published Annual Report and Accounts for the year ended 28^th February 2021 and do not constitute the statutory accounts for that year. The Annual Report and Accounts has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

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.

For further information please contact:

Paul Winship

For and on behalf of

JPMorgan Funds Limited, Secretary - 020 7742 4000

12 May 2021

ENDS

Annual Report and Financial Statements

The Annual Report and Financial Statements will be posted to shareholders on or around the 20 May 2021 and will shortly be available on the Company's website (www.jpmmultiassetgrowthandincome.com ) or in hard copy format from the Company's Registered Office, 60 Victoria Embankment  London EC4Y 0JP.

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

The annual report is also available on the Company's website at www.jpmmultiassetgrowthandincome.com where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

 

END

 

 

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