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JPMORGAN ASIA GROWTH & INCOME PLC
Quarterly Report • May 30, 2025
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Quarterly Report
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JPMorgan Asia Growth & Income plc
Half Year Report & Financial Statements for the six months ended 31st March 2025
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Your Company at a glance
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Structure of the Company
Launched in 1997, JPMorgan Asia Growth & Income plc (the 'Company') is an investment trust and public limited company, with a listing on the London Stock Exchange.
Objective
Total return, primarily from investing in equities quoted on the stock markets of Asia, excluding Japan.
Investment Policy
- To have a diversified portfolio of Asian stocks.
- To prioritise capital growth rather than income.
- To have a portfolio comprising around 50 to 80 investments.
- To use borrowings, when in place, to gear the portfolio within a range of 10% net cash to 20% geared in normal market conditions.
Dividend Policy
The Company aims to pay, in the absence of unforeseen circumstances, a regular quarterly dividend equivalent to 1.5% of the Company's cum-income net asset value ('NAV') on the last business day of each financial quarter i.e., end of December, March, June and September. These dividends are paid from a combination of revenue and capital reserves and will fluctuate in line with any rise or fall in the Company's net assets at the end of each financial quarter.
Benchmark
MSCI AC Asia ex Japan Index with net dividends reinvested, expressed in sterling terms.
Capital Structure
At 31st March 2025, the Company's issued share capital comprised 71,345,265 shares of 25p each, excluding shares held in Treasury.
Discount Management
In normal market circumstances the Company will use its buyback powers in order to ensure that, as far as possible, its ordinary shares trade at a discount no wider than 8% to 10% relative to their cum-income Net Asset Value ('NAV') per share.
Continuation Resolution
In accordance with the Company's Articles of Association, the Directors are required to propose a resolution that the Company continue as an investment trust at the Annual General Meeting in 2026 and every third year thereafter.
Website
The Company's website, which can be found at www.jpmasiagrowthandincome.co.uk, includes useful information on the Company, such as daily prices, factsheets and current and historic half year and annual reports.
| FINANCIAL CALENDAR | |
|---|---|
| Financial year end | 30th September |
| Final results announced | December |
| Half year end | 31st March |
| Half year results announced | May |
| Dividend on ordinary shares paid | February/May/August/November |
| Annual General Meeting | February |
Management Company and Company Secretary
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The Company engages JPMorgan Funds Limited ('JPMF' or the 'Manager') as its Alternative Investment Fund Manager ('AIFM'). JPMF delegates the management of the Company's portfolio to JPMorgan Asset Management (UK) Limited ('JPMAM or Investment Manager'), with the day to day investment management activity conducted in Hong Kong by JPMorgan Asset Management (Asia Pacific) Limited. Robert Lloyd and Pauline Ng the ('Portfolio Managers') are the Company's designated portfolio managers on behalf of the Investment Manager.
Email Updates
To sign up to receive email updates from the Company delivering regular news and views, as well as the latest performance statistics, please visit https://tinyurl.com/JAGI-Sign-Up or scan the QR code on page 4 and 10.
Contact the Company
General enquiries about the Company should be directed to the Company Secretary at [email protected].
Why Invest in JPMorgan Asia Growth & Income plc
The Company has an established long-term track record of investing in Asian markets. The Company pays a regular quarterly dividend equivalent to 1.5% of the Company's cum-income net asset value ('NAV') on the last business day of each financial quarter. The investment team benefits from J.P. Morgan Asset Management's extensive network of Asian market specialists around the world. Their on-the-ground experience and in-depth knowledge of local markets coupled with an established investment process enable them to make longer-term appraisals of companies and not be side-tracked by short-term noise.
Our Investment Approach
The Company takes an active, bottom-up approach to investing in Asian markets. The Portfolio Managers look at the growth potential of specific companies rather than simply taking a view on individual countries, which is reflected in the Company's low stock turnover and concentrated portfolio. Investing sustainably has always been an integral part of the Manager's fundamental research and investment approach, well before environmental, social and governance ('ESG') factors became mainstream. With an investment approach which identifies profitable companies that demonstrate sustained growth potential over the long-term rather than focusing on short-term market movements, the Company has created value for investors over the long-term.
Contents
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| Half Year Performance | 6 |
|---|---|
| Financial Highlights | |
| Chairman's Statement | |
| Chairman's Statement | 9 |
| Investment Review | |
| Portfolio Managers' Report | 13 |
| Ten Largest Investments | 16 |
| List of Investments | 17 |
| Portfolio Analysis | 19 |
| Financial Statements | |
| Condensed Statement of Comprehensive Income | 21 |
| Condensed Statement of Changes in Equity | 22 |
| Condensed Statement of Financial Position | 23 |
| Condensed Statement of Cash Flows | 24 |
| Notes to the Condensed Financial Statements | 25 |
| Interim Management Report | |
| Interim Management Report | 29 |
| Shareholder Information | |
| Glossary of Terms and Alternative Performance Measures ('APMs') (Unaudited) | 31 |
| Investing in JPMorgan Asia Growth & Income plc | 34 |
| Share Fraud Warning | 35 |
| Information about the Company | 36 |
Keeping in Touch
The Board and the Portfolio Managers are keen to increase dialogue with the Company's shareholders and other interested parties. If you wish to sign up to receive email updates from the Company, including news and views and latest performance statistics, please click https://tinyurl.com/JAGI-Sign-Up by scanning the QR code on this page.
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Financial Highlights
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Total returns in sterling terms (including dividends reinvested) to 31st March 2025
1 Source: Morningstar.
2 Source: J.P. Morgan/Morningstar, using cum income net asset value per share.
3 Source: MSCI. The Company's benchmark is the MSCI AC Asia ex Japan Index with net dividends reinvested, expressed in sterling terms.
4 Dividends paid and declared in respect of the six months to 31st March 2025.
A Alternative Performance Measure ('APM').
A glossary of terms and APMs is provided on pages 31 to 33.
Financial Highlights
Summary of results
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| 31st March 2025 |
30th September 2024 |
% change excluding dividends reinvested |
% change including dividends reinvested |
|
|---|---|---|---|---|
| Net assets (£'000) | 289,171 | 329,627 | –12.3% | |
| Net asset value per share1,A | 405.3p | 417.9p | –3.0% | –1.1% |
| Share price1 | 368.0p | 371.0p | –0.8% | +1.4% |
| Share price discount to net asset value per shareA |
(9.2)% | (11.2)% | ||
| Number of shares in issue (excluding shares held in Treasury) |
71,345,205 | 78,868,615 | ||
| Gearing2,A | 4.0% | 0.8% | ||
| Ongoing chargesA | 0.83% | 0.78% |
1 Source: Morningstar/J.P.Morgan.
2 Gearing includes market asset exposure through derivative financial instruments (Contracts for Difference 'CFDs') (30th September 2024: no CFDs were held). In addition the provision for Indian capital gains tax will also have an effect on the Company's gearing.
A Alternative Performance Measure ('APM').
A glossary of terms and of APMs is provided on pages 31 to 33.
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Chairman's Statement
Performance and Market Background
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I am pleased to report that despite challenging market conditions, your Company has once again demonstrated resilience and outperformance. While the broader Asian markets declined by 2.2% over the six months ended 31st March 2025, our portfolio limited its decline to just 1.1%, and shareholders enjoyed a positive total return of 1.4%. This continues our strong track record of outperforming the benchmark (MSCI AC Asia ex Japan) in eight of the last ten calendar years, delivering cumulative returns of 106% over the decade – substantially ahead of the benchmark's 74.1%.
Despite the new US administration's threats of swingeing tariffs on Chinese exports, the Chinese market rose by 10.4% in sterling terms. This was a response to more co-ordinated government action to address ongoing weaknesses, particularly in the real estate sector, and to the launch of DeepSeek, a platform that offers various open-source AI models. DeepSeek's advanced capabilities and cost-effectiveness took its western competitors, and global markets, by surprise. However, the improvement in Chinese market sentiment was more than offset by weakness in several other markets, notably Taiwan, South Korea, Indonesia and India. The latter is experiencing a broad-based correction following the strong gains seen in recent years.
The Portfolio Managers' Report which follows provides more detail on recent market developments, performance, and portfolio activity, along with the Managers' view on the outlook for Asian equity markets.
Dividend Policy
Since 2016, the Company's dividend policy has been to pay a regular, quarterly 'enhanced dividend' – i.e. one funded from a combination of revenue and capital reserves. Historically this dividend was set at 1% of the Company's NAV. Earlier this year, the Board recommended an increase in the enhanced dividend to 1.5% per quarter i.e. a notional yield of 6%. Shareholders approved this at February's Annual General Meeting, and the increase took effect from 31st March 2025. The Board believes that this dividend increase is preferable to returning funds to shareholders through share buybacks, will further differentiate your Company from its peers and will generate additional demand for its shares. The initial shareholder response to the dividend increase has certainly been very positive.
Premium/Discount and Share Capital Management
The discount at which the Company's shares trade narrowed during the review period, ending at 9.2%. Encouragingly, this is lower than the discount of 11.2% at the end of the last financial year and is within the Board's targeted range of 8% to 10% in normal market circumstances. The Board's view is that buy back activity can help balance the demand for and supply of the Company's shares, while maintaining underlying liquidity. The Company utilised its buy back powers over the period, buying in a total of 7.5 million shares (representing 10.5% of issued share capital) and holding them in Treasury. Since the end of the period, the Company has repurchased a further 731,866 shares. It is important to note that such share buybacks are accretive to the NAV per share of remaining shares in issue and added 3.9p per share to the NAV during the review period.
Gearing
Over most of the reporting period, the Company was not geared. This is appropriate, given the high levels of market volatility, especially over recent months. However, the Board regularly discusses gearing with the Portfolio Managers. At the end of March 2025, the portfolio was 4.0% geared. This modest amount of leverage reflects the Portfolio Managers' generally positive view on the outlook for Asian markets.
The Company currently has no loan facility in place, so this level of gearing was achieved via the use of contracts for difference (CFDs), a strategy which was foreshadowed in the last Annual Report. CFDs are a flexible, low-cost, capital-efficient alternative to loan facilities and thus offer considerable advantages to the Portfolio Managers. The Board will closely monitor the use and effectiveness of this form of gearing.
Sir Richard Stagg Chairman
Chairman's Statement
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Environmental, Social and Governance issues
It is the Board's conviction that effective investment stewardship can materially contribute to the construction of stronger portfolios over the long term and therefore enhance returns. The Company's Investment Manager has a well-established approach to investment stewardship, designed both to understand how companies address issues related to Environmental, Social and Governance ('ESG') factors and to seek to influence their behaviour and encourage best practice. Financially material ESG factors have been integrated into the investment process, and these issues are considered as part of the investment decision making process. The Board receives regular ESG updates from the Investment Manager.
The Investment Manager has recently published a document containing its latest Investment Stewardship Priorities, which may be of interest to shareholders. This can be found at: https://am.jpmorgan.com/gb/en/asset-management/adv/about-us/investment-stewardship/
Board Succession
The Board is committed to succession planning to maintain a balanced mix of skills, knowledge, and diverse perspectives. Our current composition meets all diversity targets for UK companies listed on the London Stock Exchange, and we intend to continue this compliance.
Diana Choyleva, a Director since 2023, will step down at the end of our financial year due to the pressure of her other commitments.
Peter Moon will retire at the AGM in February 2026, following the completion of his nine-year tenure as a Director, as noted in the 2024 Annual Report.
On behalf of the Board, we extend our gratitude to both Diana and Peter for their valuable contributions.
To ensure a smooth transition and uphold governance standards, the Board plans shortly to start the process of recruiting new Directors to replace Diana Choyleva and Peter Moon.
Stay Informed
The Company is committed to engaging with its shareholders, in particular those with smaller holdings who invest via platforms. To support this goal, the Company provides email updates on the Company's progress with regular news and views, as well as the latest performance data. If you have not already signed up to receive these communications and you wish to do so, you can opt in via https://tinyurl.com/JAGI-Sign-Up by scanning the QR code on this page.
Outlook
We agree with the Portfolio Managers' view on the impact of the new US administration's approach to trade policy. Effective levels of tariffs may prove to be lower than initially threatened but it is likely that economic growth will be slower than previously expected. Uncertainties around the broader geopolitical landscape are unlikely to dissipate. None of this is good news for investors.
That said, there are ample reasons to be optimistic about the opportunities offered by Asian equities in relative and absolute terms. Asian economies will continue to grow more rapidly than their Western counterparts, where lacklustre growth is likely to be further diminished by the threat of a trade war. Most important, the Chinese authorities are trying to stimulate their economy which is showing some signs of recovery. This should be good for regional growth, as will interest rate cuts by Asian central banks. In addition, the launch of DeepSeek serves as a reminder of how rapidly artificial intelligence is evolving. This, combined with the more general trend towards digitalisation should provide further impetus to regional growth and improved productivity. At the corporate level, an increasing focus on improving governance is lifting shareholder returns in Korea and China via increased dividends and share buybacks. We hope that this is an example which other Asian markets will follow.
Chairman's Statement
It is important to bear in mind that market volatility, whether generated by near-term geopolitical disturbances or longer-term structural change, almost always creates opportunities for watchful, nimble and well-informed investors. The Portfolio Managers' strong track record leaves the Board confident in their ability to recognise and capitalise on such opportunities and to keep providing shareholders with capital gains and an attractive income, despite the challenges presented by the investment environment.
On behalf of the Board, I would like to thank you for your continuing support.
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Sir Richard Stagg Chairman 29th May 2025
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Investment Review
Portfolio Managers' Report
Market Environment
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The Company's benchmark index returned –2.2% in sterling terms in the six months to 31st March 2025. However, there was considerable dispersion in performance by country. China and Singapore posted double digit returns over the period. China's performance was driven by signs of stabilisation as government stimulus measures in second half of 2024 began to take effect. In addition, the launch of DeepSeek, a Chinese Artificial Intelligence (AI) start-up, drove a re-rating of stocks across the Chinese technology sector, as investors were surprised by Deepseek's advanced AI technology and low cost. Internet-based companies such as on-line retailer Alibaba announced significant investments in their cloud businesses to take full advantage of Deepseek's AI offering. This is in spite of previous year's economic challenges persisting, with property market and exports remaining weak. Meanwhile, the Singaporean market was supported by strong results and improving shareholder returns from the major banks.
The Korean stock market fell 11.5% over the six months to end March 2025, mainly due to former President Yoon's declaration of martial law in early December 2024, which triggered domestic demonstrations and international criticism. Yoon was impeached by the Constitutional Court in April 2025. The Indonesian stock market dropped 20% over the period, driven in part by a series of policy u-turns by the new president. The country's fiscal situation is also deteriorating, and investors fear that the new sovereign wealth fund, Danatara, could lead to a misallocation of funds. Taiwan's market declined by 6%, mainly on concerns regarding over-investment in chips and in the data centres which power AI models.
The Indian stock market experienced a significant correction, mainly in response to slowing consumption, lower earnings and a de-rating of highly valued small cap indices. The broad market fell sharply towards the end of the period on growing concerns that the US administration could announce unexpectedly aggressive tariffs. These fears were realised in mid-April when the US announced heavy tariffs on many countries, including India, although their imposition was subsequently delayed subject to negotiations, which could take many months. Indian equity markets have been further unsettled in recent weeks by brief military conflict between India and Pakistan, triggered by a bombing in Indian-controlled Kashmir. A US-brokered ceasefire between the two nuclear powers was holding at the time of writing, but tensions in the region remain high.
Performance
The Company outperformed its benchmark over the period, returning –1.1% on a net asset value ('NAV') total return basis (in sterling terms), compared with the benchmark's 2.2% decline, but as our investment strategy adopts a longer-term perspective, we feel it is more meaningful to assess performance on the same basis. In the ten years ended 31st March 2025, the Company has delivered a cumulative total return of +106.0% in NAV terms and +115.0% on a share price basis, well above the benchmark's cumulative total return of +74.1%. These results equate to annualised returns of +7.5% in NAV terms, and +8.0% on a share price basis, compared to annual rises of 5.7% for the benchmark. The managers continue to focus on bottom-up stock selection to drive consistent performance through market cycles and leverage JP Morgan Asset Management's deep resources in research and technology.
Attribution
The most significant contributor to performance over the six-month review period was our decision to open a position in and overweight Alibaba. In addition to its investment in AI tools, mentioned above, Alibaba enjoyed good Q424 results in e-commerce, its market share losses have stabilised and profitability increased after three years' of decline. The next largest contributor to returns was Hong Kong Exchange, which owns and operates stock exchanges in Hong Kong and Mainland China. This business has benefitted from a recovery in turnover in Chinese markets, and from growth in secondary equity issuance.
Notable detractors included two Indian businesses. Reliance Industries, an oil and gas refiner which also has interests in retail and digital services, was hit by the decline in the Indian market, and by weaker results in its telecom segment. Zomato, India's leading on-line food delivery company, saw its stock underperform on the back of heighted competition. Although Zomato retains its top market ranking, expectations that the company will move into profit have been pushed out to 2026.
Robert Lloyd Portfolio Manager
Pauline Ng Portfolio Manager
Portfolio Managers' Report
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Performance Attribution
For the six months ended 31st March 2025
| % | % |
|---|---|
| –2.2 | |
| –0.2 | |
| 0.0 | |
| 0.0 | |
| –0.2 | |
| 0.1 | |
| –2.3 | |
| –0.4 | |
| 0.6 | |
| 1.0 | |
| –1.1 | |
| 2.5 | |
| 1.4 | |
1 The dividend/residual arises principally from timing differences in the treatment of income flows.
A Alternative Performance Measure ('APM').
Source: FactSet, JPMAM and Morningstar.
All figures are on a total return basis. Performance attribution analyses how the portfolio achieved its recorded performance relative to its benchmark.
A glossary of terms and APMs is provided on pages 31 to 33.
Portfolio Activity
The purchase and overweighting of Alibaba was one of the Company's key transactions over the financial half year. Alibaba operates various platforms connecting on-line retailers to customers. Additionally, the company provides cloud computing services, digital media, and entertainment. We have avoided this name in the past due to continued market share losses in domestic e-commerce. However, Alibaba has been expanding its global influence across multiple sectors and our decision to gain exposure was based on the company's improving growth prospects, combined with an attractive valuation after a protracted period of share price weakness. We also added to an existing position in Telstra, Australia's largest telecommunications company, due to its attractive valuation and an easing in concerns about US tariffs. Sales include AIA, a leading pan-Asian insurer. This holding was sold after its share price rebounded in response to higher shareholder returns and an improvement in China's outlook.
Outlook for 2025
The outlook for the global economy has shifted considerably due to the new US administration's threatened tariffs. Economists have reduced their 2025 US GDP forecasts from around 2.5% to almost zero. Broad measures of policy uncertainty have surpassed levels reached during President Trump's first administration and could rise further depending on retaliatory responses from trading partners. As a consequence, US survey data on capital expenditures and employment intentions have deteriorated, with some dipping into contractionary territory. US tariffs, if implemented, will also take a toll on growth in other regions, including Asia. Asian countries face the prospect of higher tariffs on some Chinese goods along with products from most other regional economies. Tariffs will have their most adverse growth impact on more open and trade-sensitive countries such as Hong Kong, Korea, Taiwan and Singapore, while China, Australia, Indonesia and India are likely to be relatively insulated due to their greater reliance on domestic demand.
Portfolio Managers' Report
In China, the authorities have adopted a more pro-growth, pro-business stance over the past year and policy action finally seems to be broadening out, but many investors would like to see further stimulus, as economic activity remains below trend, with real estate weakness still weighing on consumer confidence and spending. However, on a more positive note, there are signs of property market stabilisation in major cities, although this improvement needs to spread to smaller cities to cement a sector-wide recovery. Chinese equity valuations, while likely capped by geopolitical concerns, have nonetheless recovered from record lows, and could rise further as and when earnings begin to surprise on the upside.
Finally, tech heavy North Asia is becoming an integral part of the expanding global AI supply chain, thanks to its leading role as a provider of servers, components, cooling systems and related services. This should ensure that Taiwan and South Korea see continued demand growth in these sectors. However, the region remains vulnerable to recession risks if corporates reduce their capital expenditure plans in the wake of potentially hefty tariffs and other geopolitical uncertainties.
This all amounts to a decidedly mixed economic outlook for the Asian region. And with economic and political uncertainties simmering, volatility will remain elevated. But there are, nonetheless, reasons to be optimistic about Asian equities: regardless of near-term fluctuations, the region continues to grow more strongly than developed economies, and China's economy is still growing, even if the recovery will take longer to unfold than originally envisaged; falling global inflation provides Asian central banks with scope to cut interest rates; and the US dollar is down substantially from its peak. Furthermore, the significance of the rapid development and penetration of AI should not be underestimated. This structural change will boost productivity and cut costs across most sectors for years to come. And finally, it is important to remember that although volatility can be uncomfortable, it is the source of many attractive investment opportunities, which hold the potential to compound earnings growth and returns over the long run. So, as always, we will continue to seek out and capitalise on these opportunities for the benefit of shareholders.
For and on behalf of the Investment Manager Robert Lloyd Pauline Ng Portfolio Managers 29th May 2025
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Ten Largest Investments
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| 31st March 2025 | 30th September 2024 | ||||
|---|---|---|---|---|---|
| Asset Exposure | Asset Exposure | ||||
| Company | Country | £'000 | %1 | £'000 | %1 |
| Taiwan Semiconductor Manufacturing | Taiwan | 36,034 | 12.7 | 36,658 | 11.1 |
| Tencent | China and Hong Kong | 22,003 | 7.7 | 25,403 | 7.6 |
| Alibaba | China and Hong Kong | 13,133 | 4.6 | 14,596 | 4.4 |
| Hong Kong Exchanges & Clearing | China and Hong Kong | 13,086 | 4.6 | 9,022 | 2.7 |
| Samsung Electronics | South Korea | 11,750 | 4.1 | 9,787 | 3.0 |
| HDFC Bank | India | 10,030 | 3.5 | 8,423 | 2.5 |
| Telstra2 | Australia | 8,218 | 2.9 | 4,783 | 1.4 |
| Reliance Industries | India | 7,574 | 2.7 | 8,241 | 2.5 |
| DBS2 | Singapore | 6,965 | 2.5 | 5,064 | 1.5 |
| Kotak Mahindra Bank3 | India | 6,849 | 2.4 | — | — |
| Total | 135,642 | 47.7 | 121,977 | 36.7 |
1 Based on Gross Asset Exposure which comprises of market exposure to both direct investments and investments through derivative financial instruments, expressed as a percentage of net assets (2024: direct investments with no exposure to derivative financial instruments).
2 Not included in the ten largest investments at 30th September 2024.
3 Not held in the portfolio as at 30th September 2024.
At 30th September 2024, the value of the ten largest equity investments amounted to £136.8 million representing 41.3% of total investments.
List of investments
List of investments
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At 31st March 2025
| Asset Exposure1 | Fair value5 | |||
|---|---|---|---|---|
| Company | £'000 | %1 | £'000 | % |
| China and Hong Kong | ||||
| Tencent | 22,003 | 7.6 | 22,003 | 7.7 |
| Alibaba (shares and long CFD) | 21,569 | 7.5 | 13,133 | 4.6 |
| Hong Kong Exchanges & Clearing | 13,086 | 4.5 | 13,086 | 4.6 |
| NetEase | 4,970 | 1.7 | 4,970 | 1.8 |
| Hongfa Technology | 4,902 | 1.7 | 4,902 | 1.7 |
| China Yangtze Power | 4,803 | 1.7 | 4,803 | 1.7 |
| KE2 | 4,579 | 1.6 | 4,579 | 1.6 |
| Luzhou Laojiao | 4,406 | 1.5 | 4,406 | 1.6 |
| Meituan | 4,280 | 1.4 | 4,280 | 1.5 |
| Zijin Mining3 | 3,992 | 1.4 | 3,992 | 1.4 |
| Xinyi Solar Holdings (long CFD) | 3,849 | 1.3 | (489) | –0.2 |
| China Merchants Bank | 3,734 | 1.3 | 3,734 | 1.3 |
| Weichai Power (long CFD) | 3,577 | 1.2 | (5) | 0.0 |
| Haidilao International | 3,566 | 1.2 | 3,566 | 1.3 |
| Baoshan Iron & Steel | 3,178 | 1.1 | 3,178 | 1.1 |
| Henan Pinggao Electric | 3,112 | 1.1 | 3,112 | 1.1 |
| Dongguan Yiheda Automation | 1,958 | 0.7 | 1,958 | 0.7 |
| China Tower3 | 1,686 | 0.6 | 1,686 | 0.6 |
| Jiangxi Ganfeng Lithium | 1,461 | 0.5 | 1,461 | 0.5 |
| Beijing Huafeng Test & Control Technology | 192 | 0.1 | 192 | 0.1 |
| 114,903 | 39.7 | 98,547 | 34.7 | |
| India | ||||
| HDFC Bank | 10,030 | 3.5 | 10,030 | 3.5 |
| Reliance Industries | 7,574 | 2.6 | 7,574 | 2.7 |
| Kotak Mahindra Bank | 6,849 | 2.4 | 6,849 | 2.4 |
| Oil & Natural Gas | 5,146 | 1.8 | 5,146 | 1.8 |
| Embassy Office Parks | 4,203 | 1.5 | 4,203 | 1.5 |
| Cholamandalam Investment and Finance | 3,767 | 1.3 | 3,767 | 1.3 |
| Colgate-Palmolive India | 3,607 | 1.3 | 3,607 | 1.3 |
| Shriram Finance | 3,581 | 1.2 | 3,581 | 1.3 |
| UltraTech Cement | 3,276 | 1.1 | 3,276 | 1.2 |
| Axis Bank | 3,232 | 1.1 | 3,232 | 1.1 |
| Coforge | 2,809 | 1.0 | 2,809 | 1.0 |
| LTIMindtree | 2,382 | 0.8 | 2,382 | 0.8 |
| Bharat Electronics | 2,380 | 0.8 | 2,380 | 0.8 |
| Infosys | 1,962 | 0.7 | 1,962 | 0.7 |
| Mahindra & Mahindra | 1,497 | 0.5 | 1,497 | 0.5 |
| Hindustan Aeronautics | 1,435 | 0.5 | 1,435 | 0.5 |
| Hexaware Technologies | 983 | 0.3 | 983 | 0.3 |
| Zomato | 817 | 0.3 | 817 | 0.3 |
| 65,530 | 22.7 | 65,530 | 23.0 |
List of investments
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List of investments continued
At 31st March 2025
| Asset Exposure1 | Fair value5 | ||||
|---|---|---|---|---|---|
| Company | £'000 | %1 | £'000 | % | |
| Taiwan | |||||
| Taiwan Semiconductor Manufacturing | 36,034 | 12.5 | 36,034 | 12.7 | |
| Largan Precision | 5,330 | 1.8 | 5,330 | 1.9 | |
| Airtac International | 3,025 | 1.0 | 3,025 | 1.1 | |
| Parade Technologies | 2,829 | 1.0 | 2,829 | 1.0 | |
| Delta Electronics | 2,655 | 0.9 | 2,655 | 0.9 | |
| Alchip Technologies | 511 | 0.2 | 511 | 0.1 | |
| 50,384 | 17.4 | 50,384 | 17.7 | ||
| South Korea | |||||
| Samsung Electronics | 11,750 | 4.1 | 11,750 | 4.1 | |
| Shinhan Financial | 4,840 | 1.7 | 4,840 | 1.7 | |
| NAVER | 3,418 | 1.2 | 3,419 | 1.2 | |
| Hana Financial | 2,837 | 1.0 | 2,837 | 1.0 | |
| Samsung Biologics | 2,384 | 0.8 | 2,384 | 0.8 | |
| SK Hynix | 2,354 | 0.8 | 2,354 | 0.8 | |
| Kumho Petrochemical | 2,278 | 0.8 | 2,278 | 0.8 | |
| HDC Hyundai Development Co-Engineering | |||||
| & Construction | 2,227 | 0.8 | 2,227 | 0.8 | |
| APRILBIO | 1,942 | 0.7 | 1,942 | 0.7 | |
| Soulbrain | 1,720 | 0.6 | 1,720 | 0.6 | |
| Korea Aerospace Industries | 1,320 | 0.5 | 1,320 | 0.5 | |
| 37,070 | 12.8 | 37,071 | 13.0 | ||
| Singapore | |||||
| DBS | 6,965 | 2.4 | 6,965 | 2.5 | |
| United Overseas Bank | 4,895 | 1.7 | 4,895 | 1.7 | |
| Sea 2 |
2,899 | 1.0 | 2,899 | 1.0 | |
| 14,759 | 5.1 | 14,759 | 5.2 | ||
| Australia | |||||
| Telstra | 8,218 | 2.9 | 8,218 | 2.9 | |
| Woolworths | 1,562 | 0.5 | 1,562 | 0.6 | |
| 9,780 | 3.4 | 9,780 | 3.5 | ||
| Indonesia | |||||
| Bank Central Asia | 5,070 | 1.8 | 5,070 | 1.8 | |
| Bank Mandiri Persero | 3,230 | 1.1 | 3,230 | 1.1 | |
| 8,300 | 2.9 | 8,300 | 2.9 | ||
| 4 Gross Asset Exposure |
300,726 | 104.0 | |||
| Portfolio Fair Value 5 |
284,371 | 100.0 | |||
| Net current assets (excluding derivative financial assets and liabilities) | 5,089 | ||||
| Provision for Indian capital gains tax | (289) | ||||
| Net Assets | 289,171 |
1 Asset exposure comprises the market exposure of the investment portfolio held through both direct investment and derivative financial instruments. This is expressed as a percentage of net assets.
2American Depositary Receipts (ADRs).
3Hong Kong 'H' shares, that is, shares in companies incorporated in mainland China and listed in Hong Kong and other foreign stock exchanges.
4Gross Asset Exposure comprises market exposure to investments held directly of £285,332,000 plus market exposure to investments held through derivative financial instruments (long CFDs) of £15,395,000.
5Portfolio Fair Value refers to the fair value of investments held both directly and via derivative financial instruments (excluding derivatives utilised for hedging purposes). For CFDs, this is calculated as the difference between the price at which the CFD was entered into and the market value of the underlying investment, which is presented as derivative financial assets or derivative financial liabilities. This comprises total direct investments held at fair value through profit or loss of £285,332,000 less derivative financial liabilities of £961,000 as shown per the Statement of Financial Position on page 23.
Portfolio Analysis
| 31st March 2025 | 30th September 2024 | ||||
|---|---|---|---|---|---|
| Asset Exposure | Benchmark | Asset Exposure | Benchmark | ||
| %1 | % | %1 | % | ||
| China and Hong Kong | 39.7 | 40.4 | 37.8 | 36.5 | |
| India | 22.7 | 21.1 | 20.5 | 22.2 | |
| Taiwan | 17.4 | 19.2 | 18.9 | 20.0 | |
| South Korea | 12.8 | 10.2 | 14.3 | 11.9 | |
| Singapore | 5.1 | 4.3 | 2.3 | 3.5 | |
| Australia | 3.4 | — | 1.9 | — | |
| Indonesia | 2.9 | 1.4 | 3.4 | 1.9 | |
| Thailand | — | 1.3 | 1.2 | 1.7 | |
| Malaysia | — | 1.5 | 0.5 | 1.7 | |
| Philippines | — | 0.6 | — | 0.6 | |
| Total | 104.0 | 100.0 | 100.0 | 100.0 |
Geographical Analysis
Asia Growth and Income HY pp12_19.qxp 29/05/2025 17:11 Page 19
1 Based on the Asset Exposure (total exposure from direct portfolio investments plus derivative financial instruments) expressed as a percentage of NetAssets. The presentation of 30th September 2024 comparatives has been revised to align with the basis used for 31st March 2025, for comparison purposes.
Sector Analysis
| 31st March 2025 | 30th September 2024 | ||||
|---|---|---|---|---|---|
| Asset Exposure Benchmark |
Asset Exposure | Benchmark | |||
| %1 | % | %1 | % | ||
| Information Technology | 25.4 | 24.5 | 25.2 | 25.1 | |
| Financials | 25.0 | 22.6 | 21.5 | 21.0 | |
| Communication Services | 15.0 | 11.2 | 13.0 | 10.1 | |
| Consumer Discretionary | 10.9 | 15.7 | 14.7 | 15.0 | |
| Industrials | 8.2 | 7.1 | 5.7 | 7.5 | |
| Materials | 5.5 | 3.7 | 7.2 | 4.5 | |
| Energy | 4.4 | 3.2 | 3.8 | 3.6 | |
| Consumer Staples | 3.3 | 3.8 | 3.5 | 4.3 | |
| Real Estate | 3.1 | 2.2 | 2.7 | 2.4 | |
| Utilities | 1.7 | 2.5 | 1.8 | 2.8 | |
| Health Care | 1.5 | 3.5 | 1.7 | 3.7 | |
| Total | 104.0 | 100.0 | 100.0 | 100.0 |
1 Based on the Asset Exposure (total exposure from direct portfolio investments plus derivative financial instruments) expressed as a percentage of NetAssets. The presentation of 30th September 2024 comparatives has been revised to align with the basis used for 31st March 2025, for comparison purposes.
Asia Growth and Income HY pp20_27.qxp 29/05/2025 17:09 Page 20
Condensed Statement of Comprehensive Income
| (Unaudited) Six months ended 31st March 2025 |
(Unaudited) Six months ended 31st March 2024 |
(Audited) Year ended 30th September 2024 |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| Revenue | Capital | Total Revenue | Capital | Total Revenue | Capital | Total | |||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| (Losses)/gains on investments | |||||||||
| held at fair value through | |||||||||
| profit or loss | — | (7,181) | (7,181) | — | 11,787 | 11,787 | — | 39,462 | 39,462 |
| Losses on derivative financial | |||||||||
| instruments | — | (504) | (504) | — | — | — | — | — | — |
| Net foreign currency losses | — | (2) | (2) | — | (233) | (233) | — | (415) | (415) |
| Income from investments | 2,425 | — | 2,425 | 2,465 | — | 2,465 | 7,000 | — | 7,000 |
| Interest receivable and | |||||||||
| similar income1 | 57 | — | 57 | 49 | — | 49 | 126 | — | 126 |
| Gross return/(loss) | 2,482 | (7,687) | (5,205) | 2,514 | 11,554 | 14,068 | 7,126 | 39,047 | 46,173 |
| Management fee | (827) | — | (827) | (842) | — | (842) | (1,736) | — | (1,736) |
| Other administrative expenses | (472) | — | (472) | (478) | — | (478) | (821) | — | (821) |
| Net return/(loss) before finance | |||||||||
| costs and taxation | 1,183 | (7,687) | (6,504) | 1,194 | 11,554 | 12,748 | 4,569 | 39,047 | 43,616 |
| Finance costs | (67) | — | (67) | (29) | — | (29) | (20) | — | (20) |
| Net return/(loss) before taxation | 1,116 | (7,687) | (6,571) | 1,165 | 11,554 | 12,719 | 4,549 | 39,047 | 43,596 |
| Taxation (charge)/credit | (221) | 1,207 | 986 | (316) | (481) | (797) | (692) | (2,507) | (3,199) |
| Net return/(loss) after taxation | 895 | (6,480) | (5,585) | 849 | 11,073 | 11,922 | 3,857 | 36,540 | 40,397 |
| Return/(loss) per share (note 3) | 1.20p | (8.67)p | (7.47)p | 0.96p | 12.50p | 13.46p | 4.51p | 42.75p | 47.26p |
1 Includes income from securities lending.
Asia Growth and Income HY pp20_27.qxp 29/05/2025 17:09 Page 21
All revenue and capital items in the above statement derive from continuing operations.
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.
Net return/(loss) after taxation represents the profit/(loss) for the period and also the total comprehensive income.
Condensed Statement of Changes in Equity
Asia Growth and Income HY pp20_27.qxp 29/05/2025 17:09 Page 22
| Called up | Exercised | Capital | |||||
|---|---|---|---|---|---|---|---|
| share | Share | warrant redemption | Capital | Revenue | |||
| capital | premium | reserve | reserve | reserves1 | reserve1 | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Six months ended 31st March 2025 (Unaudited) | |||||||
| At 30th September 2024 | 24,449 | 46,705 | 977 | 25,121 | 232,375 | — | 329,627 |
| Repurchase of shares into Treasury | — | — | — | — | (28,508) | — | (28,508) |
| Net (loss)/return | — | — | — | — | (6,480) | 895 | (5,585) |
| Dividends paid in the period (note 4) | — | — | — | — | (5,468) | (895) | (6,363) |
| At 31st March 2025 | 24,449 | 46,705 | 977 | 25,121 | 191,919 | – | 289,171 |
| Six months ended 31st March 2024 (Unaudited) | |||||||
| At 30th September 2023 | 24,449 | 46,705 | 977 | 25,121 | 247,577 | — | 344,829 |
| Repurchase of shares into Treasury | — | — | — | — | (18,926) | — | (18,926) |
| Proceeds from share forfeiture2 | — | — | — | — | 412 | — | 412 |
| Net return | — | — | — | — | 11,073 | 849 | 11,922 |
| Dividends paid in the period (note 4) | — | — | — | — | (5,661) | (1,059) | (6,720) |
| Forfeiture of unclaimed dividends (note 4)2 | — | — | — | — | — | 210 | 210 |
| At 31st March 2024 | 24,449 | 46,705 | 977 | 25,121 | 234,475 | — | 331,727 |
| Year ended 30th September 2024 (Audited) | |||||||
| At 30th September 2023 | 24,449 | 46,705 | 977 | 25,121 | 247,577 | — | 344,829 |
| Repurchase of shares into Treasury | — | — | — | — | (42,765) | — | (42,765) |
| Proceeds from share forfeiture2 | — | — | — | — | 426 | — | 426 |
| Net return | — | — | — | — | 36,540 | 3,857 | 40,397 |
| Dividends paid in the year (note 4) | — | — | — | — | (9,403) | (4,067) | (13,470) |
| Forfeiture of unclaimed dividends (note 4) 2 |
— | — | — | — | — | 210 | 210 |
| At 30th September 2024 | 24,449 | 46,705 | 977 | 25,121 | 232,375 | — | 329,627 |
1 These reserves form the distributable reserves of the Company and may be used to fund distributions to investors.
2 During the period, the Company undertook an Asset Reunification Program to reunite inactive shareholders with their shares and unclaimed dividends. Pursuant to the Company's Articles of Association, the Company has exercised its right to reclaim the shares of shareholders whom the Company, through its previous Registrar, has been unable to locate for a period of 12 years or more. These forfeited shares were sold in the open market by the Registrar and the proceeds, net of costs, were returned to the Company. In addition, any unclaimed dividends older than 12 years from the date of payment of such dividends were also forfeited and returned to the Company.
Condensed Statement of Financial Position
| (Unaudited) | (Unaudited) | (Audited) | |
|---|---|---|---|
| At | At | At | |
| 31st March | 31st March | 30th September | |
| 2025 | 20241,2 | 20241,2 | |
| £'000 | £'000 | £'000 | |
| Fixed assets | |||
| Investments held at fair value through profit or loss1 | 282,950 | 324,381 | 326,288 |
| Investments on loan1 | 2,382 | 5,430 | 5,964 |
| Total investments held at fair value through profit or loss | 285,332 | 329,811 | 332,252 |
| Current assets | |||
| Debtors | 1,606 | 1,133 | 2,948 |
| Current asset investments2 | 700 | 443 | 1,171 |
| Cash at bank2 | 3,613 | 1,629 | 2,350 |
| 5,919 | 3,205 | 6,469 | |
| Current liabilities | |||
| Creditors: amounts falling due within one year | (830) | (563) | (6,613) |
| Derivative financial liabilities | (961) | — | — |
| Net current assets/(liabilities) | 4,128 | 2,642 | (144) |
| Total assets less current liabilities | 289,460 | 332,453 | 332,108 |
| Provision: Indian capital gains tax | (289) | (726) | (2,481) |
| Net assets | 289,171 | 331,727 | 329,627 |
| Capital and reserves | |||
| Called up share capital | 24,449 | 24,449 | 24,449 |
| Share premium | 46,705 | 46,705 | 46,705 |
| Exercised warrant reserve | 977 | 977 | 977 |
| Capital redemption reserve | 25,121 | 25,121 | 25,121 |
| Capital reserves | 191,919 | 234,475 | 232,375 |
| Total shareholders' funds | 289,171 | 331,727 | 329,627 |
| Net asset value per share (note 5) | 405.3p | 388.4p | 417.9p |
1 For the period ending 31st March 2024 and the year ending 30th September 2024, investments that have been loaned under securities lending arrangements have been separately disclosed as 'investments on loan' from those that are not on loan. This change aligns with the requirements of FRS102 to disclose separately investments involved in securities lending arrangements. This adjustment does not impact any other line items in the Statement of Financial Position or the total current assets.
2 For the period ending 31st March 2024 and the year ending 30th September 2024, the 'Cash and cash equivalents' line item in the Statement of Financial Position has been revised to 'Cash at bank' and 'Current asset investments, in accordance with the statutory format required by the Companies Act 2006, this revision separately reports holdings in the JPMorgan USD Liquidity Fund, a money market fund, as 'Current asset investments'. This adjustment does not affect any other line items in the Statement of Financial Position or the total current assets.
Asia Growth and Income HY pp20_27.qxp 29/05/2025 17:09 Page 23
Condensed Statement of Cash Flows
Asia Growth and Income HY pp20_27.qxp 29/05/2025 17:09 Page 24
| (Unaudited) Six months ended 31st March 2025 £'000 |
(Unaudited) Six months ended 31st March 2024 £'000 |
(Audited) Year ended 30th September 2024 £'000 |
|
|---|---|---|---|
| Cash flows from operating activities | (6,504) | 12,748 | 43,616 |
| Net (loss)/return before finance costs and taxation | |||
| Adjustment for: | |||
| Net losses/(gains) on investments held at fair value through | 7,181 | (11,787) | (39,462) |
| profit or loss | 504 | — | — |
| Net losses on derivative financial instruments | 2 | 233 | 415 |
| Net foreign currency losses | (2,242) | (2,465) | (6,852) |
| Dividend income | (42) | (42) | (98) |
| Interest income | (183) | — | (148) |
| Scrip dividends received as income | (442) | (173) | (195) |
| Realised losses on foreign exchange transactions | |||
| Realised exchange gains/(losses) on the JPMorgan USD Liquidity Fund |
153 | (69) | (178) |
| Increase in accrued income and other debtors | (22) | (5) | (11) |
| Decrease in accrued expenses | (50) | (109) | (17) |
| Net cash outflow from operations before dividends, | |||
| interest and taxation | (1,645) | (1,669) | (2,930) |
| Dividends received | 1,457 | 1,738 | 6,182 |
| Interest received | 42 | 42 | 98 |
| Overseas withholding tax recovered | 107 | 22 | 21 |
| Indian capital gains tax paid | (985) | — | (272) |
| Net cash (outflow)/inflow from operating activities | (1,024) | 133 | 3,099 |
| Purchases of investments and derivative financial instruments | (150,576) | (98,751) | (216,601) |
| Sales of investments and derivative financial instruments | 186,847 | 126,366 | 273,018 |
| Settlement of derivative financial instruments | 457 | — | — |
| Net cash inflow from investing activities | 36,728 | 27,615 | 56,417 |
| Equity dividends paid (note 4) | (6,363) | (6,720) | (13,470) |
| Forfeiture of unclaimed dividends | — | 210 | 210 |
| Repurchase of shares into Treasury | (28,791) | (18,717) | (42,245) |
| Proceeds from share forfeiture | — | 412 | 426 |
| CFD interest paid | (41) | — | — |
| Interest paid | (4) | (18) | (23) |
| Net cash outflow from financing activities | (35,199) | (24,833) | (55,102) |
| Increase in cash and cash equivalents | 505 | 2,915 | 4,414 |
| Cash and cash equivalents at start of period/year | 3,521 | (851) | (851) |
| Exchange movements | 287 | 8 | (42) |
| Cash and cash equivalents at end of period/year | 4,313 | 2,072 | 3,521 |
| Cash and cash equivalents consist of: | |||
| Cash at bank | 3,613 | 1,629 | 2,350 |
| JPMorgan USD Liquidity Fund | 700 | 443 | 1,171 |
| Total | 4,313 | 2,072 | 3,521 |
For the six months ended 31st March 2025
Asia Growth and Income HY pp20_27.qxp 29/05/2025 17:09 Page 25
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 auditor.
The figures and financial information for the year ended 30th September 2024 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
The financial statements are prepared 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.
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 31st March 2025.
All of the Company's operations are of a continuing nature.
During the period ended 31st March 2025, the Company used Contracts for Difference (CFDs) as part of its derivative transactions. Under FRS 102, these derivatives are measured at fair value both initially and subsequently. The fair value of CFDs is determined by the difference between the initial price of the CFD contract and the value of the underlying shares, as per the investment accounting policy. Open CFD positions at the period-end are shown at fair value in the Statement of Financial Position under current assets or liabilities.
Income from CFDs is recognised as derivative income in the revenue column of the Statement of Comprehensive Income, while interest paid on CFDs is recognised as a finance cost, in accordance with the allocation policy of the Company. Gains and losses from CFDs are recognised in the capital column of the Statement of Comprehensive Income.
The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 30th September 2024.
3. (Loss)/return per share
| (Unaudited) Six months ended 31st March 2025 |
(Unaudited) Six months ended |
(Audited) Year ended 31st March 2024 30th September 2024 |
|
|---|---|---|---|
| £'000 | £'000 | £'000 | |
| (Loss)/return per share is based on the following: | |||
| Revenue return | 895 | 849 | 3,857 |
| Capital (loss)/return | (6,480) | 11,073 | 36,540 |
| Total (loss)/return | (5,585) | 11,922 | 40,397 |
| Weighted average number of shares in issue | 74,785,978 | 88,580,256 | 85,475,668 |
| Revenue return per share | 1.20p | 0.96p | 4.51p |
| Capital (loss)/return per share | (8.67)p | 12.50p | 42.75p |
| Total (loss)/return per share | (7.47)p | 13.46p | 47.26p |
Asia Growth and Income HY pp20_27.qxp 29/05/2025 17:09 Page 26
Notes to the Condensed Financial Statements
4. Dividends paid
| (Unaudited) Six months ended 31st March 2025 |
(Unaudited) Six months ended 31st March 2024 |
(Audited) Year ended 30th September 2024 |
||||
|---|---|---|---|---|---|---|
| Pence | £'000 | Pence | £'000 | Pence | £'000 | |
| Dividends paid | ||||||
| Fourth quarterly dividend in respect of prior year | 4.2 | 3,284 | 3.8 | 3,450 | 3.8 | 3,450 |
| First quarterly dividend | 4.1 | 3,079 | 3.7 | 3,270 | 3.7 | 3,270 |
| Second quarterly dividend | — | — | — | — | 3.9 | 3,312 |
| Third quarterly dividend | — | — | — | — | 4.2 | 3,438 |
| Total dividends paid in the period/year | 8.3 | 6,363 | 7.5 | 6,720 | 15.6 | 13,470 |
| Forfeiture of unclaimed dividends over 12 years old1 | — | (210) | (210) | |||
| Net dividends | 8.3 | 6,363 | 7.5 | 6,510 | 15.6 | 13,260 |
1 The unclaimed dividends were forfeited following an extensive exercise which attempted to reunite the dividends with owners.
A second quarterly interim dividend of 6.1p has been declared for payment on 23rd May 2025 for the financial year ending 30th September 2025.
Dividend payments in excess of the revenue amount will be paid out of the Company's distributable reserves.
5. Net asset value per share
| (Unaudited) | (Unaudited) | (Audited) | |
|---|---|---|---|
| Six months ended | Six months ended | Year ended | |
| 31st March 2025 | 31st March 2024 30th September 2024 | ||
| Net assets (£'000) | 289,171 | 331,727 | 329,627 |
| Number of shares in issue (excluding shares held | |||
| in Treasury) | 71,345,205 | 85,416,628 | 78,868,615 |
| Net asset value per share | 405.3p | 388.4p | 417.9p |
6. Fair valuation of instruments
The fair value hierarchy disclosures required by FRS 102 are given below:
| (Unaudited) Six months ended 31st March 2025 |
(Unaudited) Six months ended 31st March 2024 |
(Audited) Year ended 30th September 2024 |
||||
|---|---|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Level 1 | 285,332 | — | 329,501 | — | 332,252 | — |
| Level 2 | — | (961)2 | 3101 | — | — | — |
| Total value of instruments | 285,332 | (961) | 329,811 | — | 332,252 | — |
1 The Level 2 disclosure represents the investment in Berlian Laju Tanker.
2 Includes the fair value of derivative financial instruments (long CFDs).
Notes to the Condensed Financial Statements
7. Analysis of Changes in Net Cash
Asia Growth and Income HY pp20_27.qxp 29/05/2025 17:09 Page 27
| As at | As at | |||
|---|---|---|---|---|
| 30th September | Exchange | 31st March | ||
| 2024 | Cash flows | movements | 2025 | |
| £'000 | £'000 | £'000 | £'000 | |
| Cash and cash equivalents | ||||
| Cash at bank | 2,350 | 976 | 287 | 3,613 |
| JPMorgan USD Liquidity Fund1 | 1,171 | (471) | — | 700 |
| Net cash | 3,521 | 505 | 287 | 4,313 |
1 JPMorgan USD Liquidity Fund, a AAA rated money market fund which seeks to achieve a return in line with prevailing money market rates whilst aiming to preserve capital consistent with such rates and to maintain a high degree of liquidity. This has been shown as a current asset investment in the Statement of Financial Position to conform with the requirements of the Companies Act 2006.
Asia Growth and Income HY pp28-29.qxp 29/05/2025 17:09 Page 28
Interim Management Report
The Company is required to make the following disclosures in its half year report:
Principal Risks and Uncertainties
Asia Growth and Income HY pp28-29.qxp 29/05/2025 17:09 Page 29
The principal and emerging risks faced by the Company fall into the following broad categories: investment and strategy, geopolitical and economic, operational risk and cybercrime, climate change and global pandemic. Information on the principal and emerging risks faced by the Company is given in the business review section within the Annual Report and Financial Statements for the year ended 30th September 2024.
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 during the period.
Going Concern
The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio (being mainly securities which are readily realisable) and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and, more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least 12 months from the date of the approval of this half-yearly financial report. For these reasons, they consider there is reasonable evidence to adopt the going concern basis in preparing the financial statements. This conclusion also takes into account the Board's assessment of the impact of heightened market volatility due to the Russian invasion of Ukraine and the unrest in Israel and Gaza.
Continuation votes are held every three years and the next continuation vote will be put to shareholders at the Annual General Meeting in 2026.
Directors' Responsibilities
The Board of Directors confirms that, to the best of its knowledge:
- (i) the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at 31st March 2025, 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
Sir Richard Stagg Chairman 29th May 2025
Asia Growth and Income HY pp30-36.qxp 29/05/2025 17:08 Page 30
Glossary of Terms and Alternative Performance Measures ('APMS') (Unaudited)
Alternative Performance Measure (APM)
Asia Growth and Income HY pp30-36.qxp 29/05/2025 17:08 Page 31
Alternative Performance Measures (APMs) are numerical measures of current, historical or future financial performance, financial position or cash flow that are not GAAP measures. APMs are intended to supplement the information in the financial statements, providing useful industry-specific information that can assist shareholders to better understand the performance of the Company.
Where a measure is labelled as an APM, a definition and reconciliation to a GAAP measure is set out below.
Return on Share Price (APM)
Total return to shareholders, on a last traded price to last traded price basis, assuming that all dividends received were reinvested, without transaction costs, into the shares of the Company at the time the shares were quoted ex-dividend.
| Six months ended | |||
|---|---|---|---|
| 31st March | |||
| Total return calculation | Page | 2025 | |
| Opening share price (p) | 7 | 371.0 | (a) |
| Closing share price (p) | 7 | 368.0 | (b) |
| Total dividend adjustment factor1 | 1.022138 | (c) | |
| Adjusted closing share price (p) (d = b x c) | 376.1 | (d) | |
| Total return on share price (e=(d/a)–1) | +1.4% | (e) |
1 The dividend adjustment factor is calculated on the assumption that the dividends paid out by the Company are reinvested into the shares of the Company at the last traded price quoted at the ex-dividend date.
Return on Net Assets (APM)
Total return on net asset value ('NAV') per share, on a bid value to bid value basis, assuming that all dividends paid out by the Company were reinvested, without transaction costs, into the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.
| Six months ended | |||
|---|---|---|---|
| 31st March | |||
| Total return calculation | Page | 2025 | |
| Opening cum-income NAV per share (p) | 7 | 417.9 | (a) |
| Closing cum-income NAV per share (p) | 7 | 405.3 | (b) |
| Total dividend adjustment factor1 | 1.020011 | (c) | |
| Adjusted closing cum-income NAV per share (p) (d = b x c) | 413.4 | (d) | |
| Total return on net assets (e=(d/a)–1) | –1.1% | (e) |
1 The dividend adjustment factor is calculated on the assumption that the dividends paid out by the Company are reinvested into the shares of the Company at the cum-income NAV at the ex-dividend date.
In accordance with industry practice, dividends payable which have been declared but which are unpaid at the balance sheet date are deducted from the NAV per share when calculating the total return on net assets.
Net asset value per share (APM)
The value of Company's net assets (total assets less total liabilities) divided by the number of ordinary shares in issue. Please see note 5 on page 26 for detailed calculations.
Benchmark total return
Total return on the benchmark, on a closing-market value to closing-market value basis, assuming that all dividends received were reinvested, without transaction costs, in the shares of the underlying companies at the time the shares were quoted ex-dividend (see page 6).
The benchmark is a recognised index of stocks which should not be taken as wholly representative of the Company's investment universe. The Company's investment strategy does not follow or 'track' this index and consequently, there may be some divergence between the Company's performance and that of the benchmark.
Glossary of Terms and Alternative Performance Measures ('APMS') (Unaudited)
Gearing/(net cash) (APM)
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Gearing represents the excess amount above net assets of total investments and asset exposure through derivative financial instruments, expressed as a percentage of the net assets. If the amount calculated is negative, this is shown as a 'net cash' position.
| 31st March | 30th September | |||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Gearing calculation | Page | £'000 | £'000 | |
| Total investments held at fair value through profit or loss | 23 | 285,332 | 332,252 | (a) |
| Asset exposure through derivative financial instruments (long CFDs) | 15,395 | — | (b) | |
| Gross asset exposure (c=a+b) | 300,727 | 332,252 | (c) | |
| Net assets | 23 | 289,171 | 329,627 | (d) |
| Gearing (e = (c/d) – 1) | 4.0% | 0.8% | (e) |
Ongoing Charges Ratio (APM)
The ongoing charges represent the Company's management fee and all other operating expenses excluding finance costs payable expressed as a percentage of the average of the daily cum-income net assets during the year and is calculated in accordance with guidance issued by the Association of Investment Companies.
| 31st March 2025 |
30th September 2024 |
|||
|---|---|---|---|---|
| Ongoing charges calculation | Page | £'000 | £'000 | |
| Management Fee | 21 | 827 | 1,736 | |
| Other administrative expenses | 21 | 472 | 821 | |
| Total management fee and other administrative expenses | 1,299 | 2,557 | (a) | |
| Average daily cum-income net assets | 311,496 | 327,676 | (b) | |
| Ongoing charges (c = a/b x 2) | 0.83% | (c) | ||
| Ongoing charges (d = a/b) | 0.78% | (d) |
Share Price Discount to Net Asset Value ('NAV') per Share (APM)
If the share price of an investment trust is lower than the NAV per share, the shares are said to be trading at a discount. The discount is shown as a percentage of the NAV per share.
The opposite of a discount is a premium. It is more common for an investment trust's shares to trade at a discount than at a premium. The discount or premium is calculated by taking the share price minus the net asset value per share, divided by the net asset value per share.
| 31st March | 30th September | |||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Page | £'000 | £'000 | ||
| Share price (p) | 7 | 368.0 | 371.0 | (a) |
| Net assets value per share with debt at par value (p) | 7 | 405.3 | 417.9 | (b) |
| Discount to net asset value with debt at par value (c = (a–b)/b) | (9.2)% | (11.2)% | (c) |
Net Asset Values
The capital-only net asset value excludes current year income received from investments. The cum-income net asset value includes current year income received from investments.
Association of Investment Companies ('AIC')
The AIC is the UK trade association for the closed-ended investment company industry.
Glossary of Terms and Alternative Performance Measures ('APMS') (Unaudited)
Performance Attribution Definitions:
Asia Growth and Income HY pp30-36.qxp 29/05/2025 17:08 Page 33
Asset allocation
Measures the impact of allocating assets differently from those in the benchmark, via the portfolio's weighting in different countries, sectors or asset types.
Stock selection
Measures the effect of investing in securities to a greater or lesser extent than their weighting in the benchmark, or of investing in securities which are not included in the benchmark.
Currency effect
Measures the impact of currency exposure differences between the Company's portfolio and its benchmark.
Gearing/(net cash)
Measures the impact on returns of borrowings, exposure through derivative instruments or cash balances on the Company's relative performance.
Management fee/Other expenses
The payment of fees and expenses reduces the level of total assets, and therefore has a negative effect on relative performance.
Share buyback
Measures the enhancement to net asset value per share of buying back the Company's shares for cancellation at a price which is less than the Company's net asset value per share.
Other terms used in this document:
Asset Exposure
Asset Exposure is the market exposure of the investments in the portfolio and exposure through derivative financial instruments, excluding derivatives used for hedging (eg forward currency contracts). This indicates the exposure the Company has to a portfolio holding through both direct and indirect investment.
Contract for Difference (CFD)
CFD is a derivative financial instrument. It is an agreement between the Company and a counterparty, whereby the parties exchange the difference between the opening price and the closing price of an underlying asset of the specified financial instrument. This does not involve the Company purchasing or selling the underlying asset; rather, it involves agreeing to receive, or pay the movement in its share price. A CFD enables the Company to gain exposure to the movement in the share price by depositing a small amount of cash known as collateral. The Company will only hold long CFDs that provide leverage or gearing by having exposure to larger positions with smaller amounts of capital, which will amplify both gains and losses. As the Company holds long positions, dividends are received and interest is paid.
JPMorgan Funds Limited ('JPMF' or the 'Manager')
The Company's Alternative Investment Fund Manager and Company Secretary.
Portfolio Fair Value
Portfolio fair value refers to the fair value of investments held both directly and via derivative financial instruments (excluding derivatives utilised for hedging purposes). For CFDs, this is calculated as the difference between the initial price of the CFD contract and the market value of the underlying investment, which is presented as derivative financial assets or derivative financial liabilities on the Statement of Financial Position.
JPMorgan Asset Management (UK) Limited ('JPMAM' or the 'Investment Manager')
JPMF delegates the management of the Company's portfolio to JPMAM.
Portfolio Managers
Robert Lloyd and Pauline Ng are the Company's designated Portfolio Managers on behalf of the Investment Manager.
Portfolio Turnover
Portfolio turnover is based on the average equity purchases and sales expressed as a percentage of average opening and closing portfolio values (excluding liquidity funds).
Investing in JPMorgan Asia Growth & Income plc
You can invest in a J.P. Morgan investment trust through the following:
Asia Growth and Income HY pp30-36.qxp 29/05/2025 17:08 Page 34
1. Via a third party provider
Third party providers include:
| AJ Bell Investcentre | |
|---|---|
| Barclays Smart investor | |
| Bestinvest | IG |
| Charles Stanley Direct | |
| Close Brothers A.M. Self | |
| Directed Service | |
| Fidelity Personal Investing | |
| Freetrade | |
| Halifax Share Dealing |
Hargreaves Lansdown iDealing Interactive investor IWeb ShareDeal active Willis Owen X-O.co.uk
Please note this list is not exhaustive and the availability of individual trusts may vary depending on the provider. These are third party providers and J.P. Morgan Asset Management does not endorse or recommend any. Please observe each provider's privacy and cookie policies as well as their platform charges structure.
The Board encourages all of its shareholders to exercise their rights and notes that many specialist platforms provide shareholders with the ability to receive company documentation, to vote their shares and to attend general meetings, at no cost. Please refer to your investment platform for more details, or visit the Association of Investment Companies' ('AIC') website at
www.theaic.co.uk/aic/shareholder-voting-consumer-platforms for information on which platforms support these services and how to utilise them.
2. Through a professional adviser
Professional advisers are usually able to access the products of all the companies in the market and can help you find an investment that suits your individual circumstances. An adviser will let you know the fee for their service before you go ahead. You can find an adviser at www.unbiased.co.uk
You may also buy investment trusts through stockbrokers, wealth managers and banks.
To familiarise yourself with the Financial Conduct Authority (FCA) adviser charging and commission rules, visit www.fca.org.uk
3.Dividend reinvestment plan
The Company operates a dividend reinvestment plan. For further information please contact the Registrars, platform provider or a professional adviser.
Share Fraud Warning
Investment and pension scams are -
Be a ScamSmart investor and spot the warning signs
Fraudsters will often:
Asia Growth and Income HY pp30-36.qxp 29/05/2025 17:08 Page 35
- contact you out of the blue
- apply pressure to invest quickly
- downplay the risks to your money
- promise tempting returns that sound too good to be true
-
- even ask you to not tell anyone else about it
How to avoid investment and pension scams
1
Scammers usually cold call, but contact can also come by email, post, word of mouth investment out of the blue, chances are it's a high risk investment or a scam.
Check the FCA Warning List 2
Use the FCA Warning List to check the risks of a potential investment – you can also search -- our authorisation.
3
Get impartial advice before investing – don't use
Y contacting our Consumer Helpline on 0800 111 6768 or using our reporting form using the link below.
If you've lost money in a scam, contact Action Fraud on 0300 123 2040 or www.actionfraud.police.uk
Be ScamSmart and visit -
Information about the Company
Asia Growth and Income HY pp30-36.qxp 29/05/2025 17:08 Page 36
Financial Conduct Authority ('FCA') Regulation of 'non-mainstream pooled investments' and MiFID II 'complex investments'
The Company currently conducts its affairs so that the shares issued by the Company can be recommended by independent financial advisers to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future.
The shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust. The Company's ordinary shares are not considered to be 'complex investments' under the FCA's 'Appropriateness' rules and guidance in the Conduct of Business sourcebook.
Consumer Duty Value Assessment
JPMF has conducted an annual Value Assessment on the Company in line with Financial Conduct Authority ('FCA') rules set out in the Consumer Duty regulation. The Assessment focuses on the nature of the product, including benefits received and its quality, limitations that are part of the product, expected total costs to clients and target market considerations. Within this, the assessment considers quality of services, performance of the trust (against both benchmark and peers), total fees (including management fees and entry and exit fees as applicable to the Company), and also considers whether vulnerable consumers are able to receive fair value from the product. JPMF has concluded that the Company is providing value based on the above assessment.
Information about the Company
History
The Company was launched in September 1997 as a rollover vehicle for shareholders in The Fleming Far Eastern Investment Trust plc. The Company adopted its present name in February 2020.
Asia Growth and Income HY cover.qxp 29/05/2025 17:13 Page 37
Directors
Sir Richard Stagg (Chairman) June Aitken Diana Choyleva Kathryn Mathews Peter Moon
Company Numbers
Company registration number: 3374850 LEI: 5493006R74BNJSJKCB17
Ordinary Shares
London Stock Exchange Sedol number: 0132077 ISIN: GB0001320778 Bloomberg ticker: JAGI
Market Information
The Company's shares are listed on the London Stock Exchange. The market price of the shares is shown daily in the Financial Times and on the JPMorgan internet site at www.jpmasiagrowthandincome.co.uk where the prices are updated every 15 minutes during trading hours.
Website
www.jpmasiagrowthandincome.co.uk
Share Transactions
The Company's shares may be dealt in directly through a stockbroker or professional adviser acting on an investor's behalf.
Manager and Company Secretary JPMorgan Funds Limited
Investment Manager JPMorgan Asset Management (UK) Limited
Company's Registered Office
60 Victoria Embankment London EC4Y 0JP Telephone: 0800 20 40 20 or +44 1268 44 44 70 email: [email protected]
For company secretarial matters, please contact Anmol Dhillon.
Depositary
The Bank of New York Mellon (International) Limited 160 Queen Victoria Street London EC4V 4LA
The Depositary has appointed JPMorgan Chase Bank N.A. as the Company's custodian.
Registrar
Computershare Investor Services PLC The Pavilions Bridgwater Rd Bristol BS99 6ZZ United Kingdom Telephone + 44 (0) 370 707 1521
Lines open 8.30 a.m. to 5.30 p.m. Monday to Friday Shareholders can manage their shareholding online by visiting Investor Centre at www.investorcentre.co.uk, Shareholders just require their Shareholder Reference Number ('SRN'), which can be found on any communications previously received from Computershare.
Independent Auditor
Forvis Mazars LLP The Pinnacle 160 Midsummer Boulevard Milton Keynes MK9 1FF
Broker
Cavendish Financial plc One Bartholomew Close, London, UK EC1A 7BL
A member of the AIC
CONTACT
60 Victoria Embankment London EC4Y 0JP Tel +44 (0) 20 7742 4000 Freephone: 0800 20 40 20 Calls from outside the UK: +44 1268 44 44 70 Website: www.jpmasiagrowthandincome.co.uk
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