LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN AMERICAN INVESTMENT TRUST PLC
HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30TH JUNE 2025
Legal Entity Identifier : 549300QNAI4XRPEB4G65
Information disclosed in accordance with the DTR 4.2.2
Highlights:
· NAV total return of -4.6% compared with-3.0% for the S&P 500 Index (in sterling terms) (the 'Benchmark'). Share price return of -8.7%, reflecting a widening of the Company's discount to NAV over the period.
· For the six years since the higher-conviction, best ideas approach was adopted in June 2019, the Company outperformed the benchmark index by +20.4, providing a NAV total return of +145.6%, compared with a benchmark return of +125.2%, an annualised outperformance of +1.6% over the six-year period.
· The Company is declaring a dividend of 2.75 pence per share (2024: 2.75 pence) for the first six months of this year, which will be payable on 6th October 2025 to shareholders on the register on 29th August 2025.
· During the reporting period, the Company repurchased a total of 3,403,340 shares, representing 1.9% of the Company's issued share capital (excluding shares held in treasury) at an average discount of 3.1%. In the same period, the Company issued 1,414,046 shares from Treasury at an average premium to NAV of 0.8%.
The Chair, Robert Talbut, commented:
"The first six months of 2025 were marked by volatility in the US stock market, driven by geopolitical tensions and fluctuating economic indicators. Despite some initial optimism following the new US administration's economic policy announcements, concerns over potential trade conflicts only added to market uncertainty, which peaked in early April. Despite these challenges, some companies managed to report positive earnings growth, which helped to lift markets back to near record levels at the end of the period."
The Portfolio Managers, Felise Agranoff, Jack Caffrey, Eric Ghernati and Graham Spence, commented:
"The first half of 2025 was a rollercoaster for US markets, with significant ups and downs, driven by bouts of optimism and unexpected challenges. Despite these concerns, markets demonstrated resilience and reached new all-time highs by mid-year. "
"We are optimistic about the prospects for US equities for the rest of this year and beyond. Market expectations have improved in recent months, with investors no longer focused on worst-case scenarios."
CHAIR'S STATEMENT
Performance
The first six months of 2025 were marked by volatility in the US stock market, driven by geopolitical tensions and fluctuating economic indicators. Despite some initial optimism following the new US administration's economic policy announcements, concerns over potential trade conflicts only added to market uncertainty, which peaked in early April. The Federal Reserve's cautious approach to interest rate adjustments given inflation remaining above target also weighed on market sentiment. Despite these challenges, some companies managed to report positive earnings growth, which helped to lift markets back to near record levels at the end of the period.
Against this backdrop, GBP returns for both the Company and the Company's index were negative reflecting the impact of the US dollar's weakest first half performance since 1973. The Company's total return on net assets per share over the six months to end June 2025 was -4.6% in GBP terms, underperforming the -3.0% GBP total return on the Company's benchmark, the S&P 500 Index, by -1.6 percentage points on a net asset value per share ('NAV') basis. The GBP return on share price was -8.7%, reflecting a widening of the Company's discount to NAV over the period.
The large-cap component of the Company adopts a higher-conviction approach combining the best ideas from the Manager's growth and value investment teams. In the six years since this approach was adopted in June 2019, the Company has outperformed the benchmark index by +20.4% in the subsequent 73 months through to the end of June 2025, providing a NAV total return to shareholders of +145.6%, compared with a benchmark return of +125.2%. This represents an annualised outperformance of +1.6 percentage points over the six-year period.
The Portfolio
At the end of the review period, 94.5% of your Company's portfolio assets were invested in US large cap stocks, in a high conviction portfolio of 39 stocks. This represents a carefully curated selection of the Manager's best growth and value investment ideas. The proportions of growth and value weightings can vary between 60% and 40% in either direction and stood at 56% in growth stocks and 44% in value names at the period end. The overall allocation to the small cap portfolio was 5.5% at the end of the review period.
More details about performance attribution and portfolio activity during the half-year can be found in the Investment Manager's report below, along with their view on the outlook for US equity markets.
Investment Manager Succession
As previously reported, Jonathan Simon retired as the portfolio manager responsible for value stocks in the Company's large cap portfolio on 3rd March 2025. The portfolio's value stocks are now managed by Jack Caffrey and Graham Spence, while the growth stocks continue to be managed by Felise Agranoff and Eric Ghernati.
There are no changes to the Company's investment process or investment objective as a result of these changes.
Share Price and Premium/Discount
The Company's shares have traded at an average discount during the period under review of 2.0% relative to NAV. The Company has continued to both buy back and issue shares in line with the Board's longstanding position of buying back shares when they stand at anything more than a small discount to NAV, and issuing shares when they are trading at a premium to NAV at least sufficient to cover the costs of issuance.
The Company bought into Treasury a total of 3,403,340 shares, or 1.9% of the Company's issued share capital during the six months to end June 2025, excluding shares held in treasury (30th June 2024: 0.8%). These shares were purchased at an average discount to NAV of 3.1%, producing a modest accretion to the NAV for continuing shareholders. The Company issued a total of 1,414,046 shares from treasury during the same period, at an average premium to NAV of 0.8%.
Dividends
The Company is declaring a dividend of 2.75 pence per share (2024: 2.75 pence) for the first six months of this year, which will be payable on 6th October 2025 to shareholders on the register on 29th August 2025. While capital growth is the primary aim of the Company, the Board understands that dividend receipts can be an important element of shareholder returns. The Board continues to monitor the net income position of the Company and, in the absence of unforeseen circumstances, aims to continue its progressive dividend policy.
Gearing
The Company is able to deploy gearing, which over time is expected to enhance performance provided that the cost of gearing is less than the performance delivered by the Company's equity portfolio. The Board has set the current tactical level of gearing at 5% of net assets, with a permitted range around this level of plus or minus 5%, meaning that gearing can vary between 0% and 10%. During the period the Board decided to add additional gearing to the portfolio, drawing down US$40 million from the revolving credit facility. In total the tactical level of gearing of the Company increased from 2.8% at year-end 2024 to 4.9% at the end of June. The overall effect of gearing during the first half of the year was to add 50bp to the return of the Company's portfolio.
The Board believes it is prudent for its gearing capacity to be funded from a mix of sources, including short- and longer-term tenors, and fixed and floating rate borrowings. The Company now has in place an £85 million revolving credit facility (with an additional £15 million accordion) with Industrial and Commercial Bank of China Limited, London Branch. This replaces the £80 million revolving credit facility (with an additional £20 million accordion) with Mizuho Bank Ltd that expired in early August 2025. It also has in issue a combined total of US$100 million unsecured loan notes issued via private placements, US$65 million of which are repayable in February 2031 and carry a fixed interest rate of 2.55% per annum. The remaining US$35 million of loan notes mature in October 2032 and carry a fixed interest rate of 2.32%.
Board
There have been no changes to the Board over the six-month review period. The Board continues to carefully manage its succession planning and remains committed to maintaining a diverse and experienced team to guide the Company's strategic direction.
Stay Informed
The Company delivers email updates with regular news and views, as well as the latest performance. If you have not already signed up to receive these communications and you wish to do so, you can opt in via https://web.gim.jpmorgan.com/emea_investment_trust_subscription/welcome?targetFund=JAM.
Outlook
It is customary when commentating upon financial markets to state that the outlook remains uncertain. At present I would draw attention to the escalating number of conflicts around the world, to the fracturing of politics and the rise of more extreme parties in many countries, and to diminishing global cooperation being replaced by fiercer competition between countries. In short, it does appear that we really are in a period which is indeed very uncertain. However, North American companies and their management teams have a long track record of quickly adapting to whatever circumstances confront them, resulting in improved profitability and earnings per share. In addition, US businesses appear to adopt new technologies more quickly than others, driving efficiencies within companies and hence sharpening their competitive edge relative to their global competition. The Board has no reason to doubt that these dynamics will not continue to prevail. The Manager remains confident that it can still identify attractive investment opportunities throughout the North American market and this fact combined with the continued dynamism of US business gives the Board confidence that the Company should continue to provide opportunities for attractive returns over the medium term.
Robert Talbut
Chair 13th August 2025
INVESTMENT MANAGER'S REPORT
Market Review
The first half of 2025 was a rollercoaster for US markets, with significant ups and downs, driven by bouts of optimism and unexpected challenges. Despite these concerns, markets demonstrated resilience and reached new all-time highs by mid-year. The S&P 500 posted a +6.2% return in US dollar terms, although it declined by -3.0% in sterling terms due to the US dollar's worst first-half performance since 1973.
As 2025 started, markets were buoyed by expectations of pro-growth policies from the new administration, which fuelled a surge in optimism. However, worries about cracks in the AI growth narrative, the threat to economic activity posed by US tariffs and geopolitical tensions soon emerged, adversely impacting global markets, and causing a growth scare that culminated in a pronounced market sell-off in April.
'Big Tech', particularly the so-called 'Magnificent 7', fell into bear market territory, significantly contributing to the downturn. Meanwhile, Treasuries rallied, although 10-year yields remained sensitive to fluctuations in the economic data. Investors also began to fret about stagflation, as the US Federal Reserve's economic projections indicated upward revisions in both the unemployment rate and core inflation to 4.4% and 2.8%, respectively, by the end of 2025.
Despite these setbacks, US equities showed resilience as the year progressed with investor fears of worst-case scenarios diminishing. An easing in trade tensions, combined with resilient employment and corporate earnings reports, and persistently tame inflation data, helped restore investor confidence. The S&P saw the fastest ever rebound from a drawdown of more than 15%, although the recovery was not universal as only some members of the Magnificent 7, Meta Platforms, Microsoft, and NVIDIA outperformed, while other names lagged. As the sectors expected to be beneficiaries of AI broadened, the industrials sector emerged as the top performer so far this year, rising by 12% in the review period, closely followed by communication services (+11%) and financial stocks (+9%). Consumer discretionary was the worst-performing sector, declining by 4%, and health care also ended in negative territory, declining by 1%.
The S&P 500, which is predominantly large-cap stocks, outshone the small-cap Russell 2000 Index, which experienced a -1.8% decline in US dollar terms. In terms of style, both value and growth achieved comparable returns.
The two charts which are in the full Half Year Report of the Company (available on the website) provide an overview of the returns of different investment styles in the US market during the six-month period through the end of June, as well as the sector performance of the S&P 500 during that period.
Performance and Overall Asset Allocation
The Company's net asset value declined by 4.6% on a total return basis (in GBP terms) in the first half of 2025, lagging the 3.0% drop in the S&P 500 Index. Both the large cap and small cap allocations detracted from relative performance during the period, with the Company's small cap allocation detracting the most. The overall allocation to the small cap portfolio was maintained at less than 6% over the period and stood at 5.5% at the end of June. Gearing positively impacted the portfolio performance, as shown in the table.
We remain dedicated to owning high-quality businesses with durable competitive advantages. Our concentrated bottom-up stock selection process has led to several deviations from the benchmark at both the stock and sector levels. The information technology sector remains our largest sectoral weighting in absolute terms, although it is also our largest underweight. We have modestly added to our exposure to selected software and semiconductor companies, where we see strong or rising demand.
Notably, consumer discretionary is our largest sectoral overweight. During the six-month review period, we increased our exposure by reintroducing Tesla. Overall, within the sector, we strive to maintain a balanced exposure between secular growth companies and those with less cyclicality and more defensive business models, such as globally recognised brands, with capital-light operations.
Financials represent the next largest sectoral overweight. Our strategy remains diversified, prioritising names with strong operations and the ability to adapt to evolving market dynamics. Capital One Financial is one example. The sector's relative valuations are attractive, and we are particularly interested in businesses with the potential to disrupt traditional payments systems. We are also optimistic about companies focused on capital markets activity, as these are being supported by robust trading volumes, sporadic volatility and a potential easing in capital requirements by the new administration. We continue to hold the same names in this sector as we did at the start of the year.
Performance Attribution
For the six-month period ended 30th June 2025
|
|
% |
% |
| Contributions to total returns |
|
|
| Net asset value (debt at fair value) total return |
|
|
| in sterling termsAPM |
|
-4.6 |
| Benchmark total return (in sterling terms) |
|
-3.0 |
| Excess return |
|
-1.6 |
| Combined Portfolio return in US dollar terms1 |
4.7 |
|
| Benchmark total return in US dollar terms |
6.1 |
|
| Combined Portfolio relative return in US dollar terms |
-1.4 |
|
| Large & Small Cap Portfolio contribution2: |
|
|
| Large Cap Portfolio in US dollar terms |
-0.6 |
|
| Small Cap Portfolio in US dollar terms |
-0.8 |
|
| Combined Portfolio relative return in US dollar terms |
-1.4 |
|
| Contributions to return |
|
|
| Equity portfolio (ex-cash and gearing) in US dollar terms |
-1.9 |
|
| Cash and gearing impact in US dollar terms3 |
0.5 |
|
| Combined Portfolio relative return in US dollar terms |
-1.4 |
|
| Effect of foreign currency translation4 |
|
0.1 |
| Combined Portfolio relative return in sterling terms |
|
-1.3 |
| Management fee and other expenses5 |
|
-0.2 |
| Finance costs5 |
|
-0.1 |
| Share buybacks and issuances6 |
|
0.1 |
| Impact of fair valuation of debt7 |
|
-0.1 |
| Total excess return |
|
-1.6 |
Source: J.P. Morgan/Morningstar.
All figures are on a total return basis. Performance attribution analyses how the Company achieved its recorded performance relative to its benchmark.
1 The aggregated returns of both the Large Cap and Small Cap portfolios.
2 The split of returns by portfolio, relative to the benchmark. This has been calculated using the average weighting of the Large Cap and Small Cap portfolios over the period.
3 Cash and gearing - measures the impact on returns of the principle amount of borrowings or cash balances on the Company's relative performance.
4 Effect of foreign currency translation - measures the impact of currency exposure differences between the Company's portfolio and its benchmark.
5 Management fee, other expenses and finance costs - the payment of fees, expenses and finance costs (interest paid on borrowings) reduces the level of total assets, and therefore has a negative effect on relative performance.
6 Share buybacks and issuances - measures the combined effect of the enhancement to net asset value per share from i) buying back the Company's shares at a price which is less than the Company's net asset value per share and ii) issuing shares at a price which is higher than the net asset value per share.
7 The impact of fair valuation is the effect of valuing the combined US$100m private placements at fair value.
APM Alternative Performance Measure ('APM').
Large Cap Portfolio
The large cap portion of the portfolio, which accounts for over 90% of the Company's assets, detracted from relative performance over the period under review as our stock selection weighed on performance.
Our stock selection in the health care and consumer staples sectors detracted the most from relative performance. Within the health care space our exposure to UnitedHealth Group was the worst performer. UnitedHealth has long been regarded as the leading managed care company, consistently enjoying a premium valuation. Last year, it appeared to be operating significantly better than its competitors in the Managed Care space. However, recent developments suggest that efforts to boost growth have led to mispricing, resulting in health care costs that are significantly higher than forecast. These issues led to a notable reduction in earnings guidance, marking the first year of expected earnings decline since 2010. A former CEO has returned to the helm, and he has indicated plans to further enhance the company's management talent. Given current related uncertainties, UnitedHealth's premium valuation may no longer be justified, and while a turnaround is possible, the timing is uncertain, so we exited our position.
Our performance in consumer staples was adversely impacted by our exposure to Estee Lauder, a cosmetics company which has been facing earnings challenges, including a decline in sales in key markets such as Asia and China. In addition, there have been recent management changes and strategic uncertainties, including the withdrawal of FY25 guidance and the announcement of a significant dividend cut, aimed at providing more financial flexibility, further exacerbated market apprehension. While the company has implemented a plan to improve margins and drive future growth, we have concerns about management's ability to execute, and exited our position.
At the security level, our underweight position in NVIDIA was one of the more significant detractors during the period, as the company's share price experienced a strong rally, outperforming the S&P 500. Although NVIDIA's platform is in high demand and its software is robust, we believe the market may not be taking full account of increasing competition, including from Broadcom, another portfolio holding, which has developed a highly customisable ASIC chip. We also have some concerns that market expectations about NVIDIA's growth potential might be overdone, so we have maintained a below-index weighting to this name.
While the large cap portfolio faced several detrimental influences, there were plenty of bright spots, including strong stock selection in the information technology (IT) and financial sectors. In the IT sector, our decision to maintain an underweight position in Apple made a positive contribution to performance. This stock faced downward pressure due to concerns about the impact of US tariffs, and uncertainties regarding potential regulatory impact on its services business. The company is also experiencing ongoing challenges integrating AI into its products.
Capital One Financial, a provider of financial products and services, was a top contributor in the financial space, thanks in part to positive investor sentiment regarding the sector. The market is also positive about the benefits of Capital One's acquisition of Discover Financial Services. This deal should enhance Capital One's banking and payments platform, while also delivering both cost savings and revenue growth. Furthermore, the company's management team has a track record of successfully executing large investments, including in the business's technological transformation and its national banking strategy. This bodes well for future growth and we remain overweight this name.
Another significant contributor during the period was our underweight position in Tesla. We have previously owned this stock and know the company well. We had closed our position in January 2024 as demand for electric vehicles (EV) stalled. The stock has since faced pressure due to various investor concerns, both real and perceived. We capitalised on the sell-off by reintroducing Tesla to our portfolio. Although demand for EVs remains tentative, we are increasingly confident in the company's autonomous driving technology, which we believe is approaching commercial viability, and we see potential for autonomous driving to enhance Tesla's brand perception and eventually reignite demand for its vehicles. This transition is in its early stages, so the portfolio remains underweight, but we anticipate that autonomous driving will significantly improve Tesla's margins over time, and our long-term investment horizon allows us to be patient while these expectations play out, especially as we took the opportunity to re-purchase the stock at an attractive level.
Portfolio Activity
Over the period, the most significant portfolio shifts have occurred in the health care space, as we exited three longstanding positions due to changing fundamentals. In addition to the sale of UnitedHealth Group, already discussed, we also closed positions in Regeneron Pharmaceuticals and Eli Lilly. Regeneron Pharmaceuticals is currently navigating a tough commercial landscape, including increasing competitive pressures on its flagship product, Eylea, for the treatment of eye disease, which are raising doubts about the company's ability to maintain its market leadership in this segment. In addition, there are emerging concerns regarding the life cycle of Dupixent, used in the treatment of severe inflammatory conditions, as well as Regeneron's overall drug pipeline, which has not developed at a pace sufficient to offset diminishing demand for Eylea and Dupixent. Eli Lilly's stock dropped sharply following its latest earnings report on concerns over pricing dynamics in the weight loss drugs market. In response to these challenges, we sold our holdings in all three names. We added one new health care name - Johnson & Johnson. This large cap pharmaceutical and medical technology business trades at a discount to its peers, while offering a premium dividend and attractive dividend yield, with higher returns on equity and invested capital.
We also added exposure to industrials, with the addition of 3M, a tech services conglomerate, where we have gained confidence in the company's operational turnaround. Earlier this year, the incoming CEO highlighted new and increasingly granular plans to reinvigorate growth and improve operating performance. Additionally, 3M has strengthened its balance sheet and the management of legal liabilities, to reduce risks. These developments reinforced our view that 3M's recovery is proceeding well and looks set to exceed market expectations both in timing and magnitude.
Value and growth exposure
As we have mentioned previously, the large cap portfolio is divided between growth and value stocks, with the allocation allowed to vary between 60:40 and 40:60. At the end of the review period, growth stocks comprised some 56% of the large cap portfolio, with the remaining 44% invested in value stocks. This is coincidently close to the current growth/value split of the S&P 500 index.
The table below shows that at the end of June 2025, the large cap portfolio was trading at a 17% discount to the market on a free cash flow basis, which confirms that we are not paying a premium for good cash flow. Indeed, the discount provides a comforting valuation cushion. The portfolio is expected to deliver earnings growth of around 13% over the next 12 months, in line with the market. However, both figures are based on consensus earnings, which may be revised over time.
| Characteristics |
Large Cap Portfolio |
S&P 500 |
| Weighted Average Market Cap |
US$ 1,022.0 bn |
US$ 1,064.6 bn |
| Price/Earnings, 12-months forward1 |
22.9x |
21.3x |
| Price/Free Cash Flow, last 12-months |
21.9x |
26.4x |
| Price to Book Value |
4.3x |
5.0x |
| EPS Growth, 12-months forward |
12.7% |
12.8% |
| Return on Equity, last 12-months |
20.8% |
25.4% |
| Dividend Yield, current |
1.2% |
1.2% |
| Predicted Beta |
1.00 |
- |
| Predicted Tracking Error |
2.72 |
- |
| Number of Holdings |
39 |
500 |
| Active Share |
63% |
- |
Source: Factset, J.P. Morgan Asset Management.
1 Including negatives. Data as of 30th June 2025. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the investment manager without notice.
A Glossary of Terms is provided on page 32 of the complete Half Year Report (available on the website).
Small Cap Portfolio
As mentioned above, the small cap portfolio negatively impacted returns over the review period, as it underperformed the S&P 500. The overall allocation to the small cap portfolio was maintained at less than 6% over the period and stood at 5.5% at the end of June. Small cap valuations continue to look compelling relative to large caps following a prolonged period during which large caps outperformed small caps. It feels as though the stage is still set for a reversal, although timing is always hard to predict.
Outlook
We are optimistic about the prospects for US equities for the rest of this year and beyond. Market expectations have improved in recent months, with investors no longer focused on worst-case scenarios. And history suggests that a strong first half of the year often leads to a solid second half. Since 2000, in the 11 instances where the S&P 500 rose by at least 5% in the first half, it continued to rally in the second half, with full year gains averaging more than 19%.
In addition, the economy is demonstrating resilience, although its growth trajectory is flattening. Inflation may tick higher, due to labour market pressures and higher tariffs, but is not expected to rise significantly. The unemployment rate remains relatively stable, and consumer financial conditions are manageable. This combination suggests a stable economic environment, conducive to further, albeit modest, growth. Our confidence in the market's potential is further underpinned by expectations of robust earnings growth - our analysts predict S&P 500 earnings will increase by 8% in 2025 and 13% in 2026.
While we are encouraged by these signs of improving market fundamentals, we remain vigilant about potential risks that could spark volatility. These include ongoing geopolitical tensions and continuing shifts in US trade, regulatory, and fiscal policies.
Our focus on high-quality businesses with strong competitive advantages helps to ensure stable returns during uncertain times and when market volatility rises, we aim to capitalise on it by identifying and seizing selective opportunities that align with our long-term investment goals. Our strategy is to maintain a balanced approach, leveraging our insights and expertise to navigate market complexities, while actively seeking opportunities for growth and value creation. We are confident that this approach will continue to reward shareholders with strong capital growth over time.
Felise Agranoff
Jack Caffrey
Eric Ghernati
Graham Spence
Portfolio Managers 13th August 2025
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its half year report.
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Company fall into the following broad categories:
Investment Strategy, Process and Performance
This includes risks such as Investment Strategy and Process, Investment Team, Market Risk, Technological Change, Rating Volatility and Corporate Activity Risk and Integration of ESG Factors into the Investment Process.
Regulatory, Compliance & Operational
This includes risks relating to Operational, Resilience, Controls and Security along with Accounting, Legal and Regulatory risks.
Geopolitical and Other Exogenous Issues
This includes risks relating to Geopolitical, Artificial Intelligence, Climate Change, Widespread Social and Economic Disruption along with Legislative and Regulatory Changes.
Whilst the Board has not identified any new emerging risks at the time of publication of this report, it has noted the continued heightened level and evolving nature of the Geopolitical risks facing the Company and is monitoring these accordingly.
Information on each of these risks is given in the Strategic Report within the Annual Report and Financial Statements for the year ended 31st December 2024. In the view of the Board, these principal risks and uncertainties are as much applicable to the remaining six months of the financial year as they were to the six months under review.
Related Parties Transactions
During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.
Going Concern
In accordance with The Financial Reporting Council's guidance on going concern and liquidity risk, the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Board has, in particular, considered the impact of market volatility from the ongoing conflicts between Ukraine and Russia and in the Middle East, and does not believe the Company's going concern status is affected. The Company's assets, the vast majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly under all stress test scenarios reviewed by the Board. Gearing levels and compliance with borrowing covenants are reviewed by the Board on a regular basis. Furthermore, the Directors are satisfied that the Company's key third party service providers have in place appropriate business continuity plans to ensure their operational resilience and the performance of these service providers is reviewed at least annually by the Management Engagement Committee.
Accordingly, having assessed the principal and emerging risks and other matters, the Directors believe 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.
Directors' Responsibilities
The Board of Directors confirms that, to the best of its knowledge:
(i) the condensed set of financial statements contained within the half year financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company, and of the assets, liabilities, financial position and net return of the Company as at 30th June 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 Rules 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
Robert Talbut
Chair 13th August 2025
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
| |
(Unaudited) |
(Unaudited) |
(Audited) |
||||||
| |
Six months ended |
Six months ended |
Year ended |
||||||
| |
30th June 2025 |
30th June 2024 |
31st December 2024 |
||||||
| |
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
| |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
| (Loss)/gains on investments |
|
|
|
|
|
|
|
|
|
| held at fair value through |
|
|
|
|
|
|
|
|
|
| profit or loss |
- |
(108,492) |
(108,492) |
- |
290,667 |
290,667 |
- |
459,406 |
459,406 |
| Net foreign currency |
|
|
|
|
|
|
|
|
|
| gains/(losses) |
- |
6,206 |
6,206 |
- |
(798) |
(798) |
- |
(743) |
(743) |
| Income from investments |
12,473 |
5 |
12,478 |
11,281 |
- |
11,281 |
23,579 |
55 |
23,634 |
| Interest receivable and similar |
|
|
|
|
|
|
|
|
|
| income |
531 |
- |
531 |
750 |
- |
750 |
1,352 |
- |
1,352 |
| Gross return/(loss) |
13,004 |
(102,281) |
(89,277) |
12,031 |
289,869 |
301,900 |
24,931 |
458,718 |
483,649 |
| Management fee |
(551) |
(2,203) |
(2,754) |
(499) |
(1,995) |
(2,494) |
(1,041) |
(4,164) |
(5,205) |
| Other administrative expenses |
(448) |
- |
(448) |
(619) |
- |
(619) |
(1,139) |
- |
(1,139) |
| Net return/(loss) before finance |
|
|
|
|
|
|
|
|
|
| costs and taxation |
12,005 |
(104,484) |
(92,479) |
10,913 |
287,874 |
298,787 |
22,751 |
454,554 |
477,305 |
| Finance costs |
(309) |
(1,232) |
(1,541) |
(236) |
(939) |
(1,175) |
(494) |
(1,970) |
(2,464) |
| Net return/(loss) before taxation |
11,696 |
(105,716) |
(94,020) |
10,677 |
286,935 |
297,612 |
22,257 |
452,584 |
474,841 |
| Taxation |
(1,843) |
(7) |
(1,850) |
(1,212) |
(70) |
(1,282) |
(3,024) |
- |
(3,024) |
| Net return/(loss) after taxation |
9,853 |
(105,723) |
(95,870) |
9,465 |
286,865 |
296,330 |
19,233 |
452,584 |
471,817 |
| Return/(loss) per share (note 3) |
5.50p |
(59.01)p |
(53.51)p |
5.18p |
156.93p |
162.11p |
10.59p |
249.22p |
259.81p |
The interim dividend of 2.75p (2024:2.75p) per share has been declared in respect of the six months ended 30th June 2025, amounting to £4,870,000 (2024: £5,003,000).
All revenue and capital items in the above statement derive from continuing operations. The return/(loss) per share represents the profit/(loss) per share for the period and also the total comprehensive income per share.
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.
CONDENSED STATEMENT OF CHANGES IN EQUITY
| |
Called up |
|
Capital |
|
|
|
| |
share |
Share |
redemption |
Capital |
Revenue |
|
| |
capital |
premium |
reserve |
reserves1 |
reserve1 |
Total |
| |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
| Six months ended 30th June 2025 (Unaudited) |
|
|
|
|
|
|
| At 31st December 2024 |
14,082 |
159,821 |
8,151 |
1,769,497 |
36,294 |
1,987,845 |
| Repurchase of shares into Treasury |
- |
- |
- |
(33,439) |
- |
(33,439) |
| Issue of shares from Treasury |
- |
9,925 |
- |
6,550 |
- |
16,475 |
| Net (loss)/return after taxation |
- |
- |
- |
(105,723) |
9,853 |
(95,870) |
| Dividends paid in the period (note 4) |
- |
- |
- |
- |
(14,768) |
(14,768) |
| At 30th June 2025 |
14,082 |
169,746 |
8,151 |
1,636,885 |
31,379 |
1,860,243 |
| Six months ended 30th June 2024 (Unaudited) |
|
|
|
|
|
|
| At 31st December 2023 |
14,082 |
151,850 |
8,151 |
1,358,329 |
31,587 |
1,563,999 |
| Repurchase of shares into Treasury |
- |
- |
- |
(13,910) |
- |
(13,910) |
| Issue of shares from Treasury |
- |
4,443 |
- |
3,715 |
- |
8,158 |
| Proceeds from share forfeiture2 |
- |
- |
- |
731 |
- |
731 |
| Proceeds from forfeiture of unclaimed dividends2 (note 4) |
- |
- |
- |
- |
71 |
71 |
| Net return after taxation |
- |
- |
- |
286,865 |
9,465 |
296,330 |
| Dividends paid in the period (note 4) |
- |
- |
- |
- |
(9,595) |
(9,595) |
| At 30th June 2024 |
14,082 |
156,293 |
8,151 |
1,635,730 |
31,528 |
1,845,784 |
| Year ended 31st December 2024 (Audited) |
|
|
|
|
|
|
| At 31st December 2023 |
14,082 |
151,850 |
8,151 |
1,358,329 |
31,587 |
1,563,999 |
| Repurchase of shares into Treasury |
- |
- |
- |
(48,069) |
- |
(48,069) |
| Issue of shares from Treasury |
- |
7,971 |
- |
5,922 |
- |
13,893 |
| Proceeds from share forfeiture2 |
- |
- |
- |
731 |
- |
731 |
| Proceeds from forfeiture of unclaimed dividends2 (note 4) |
- |
- |
- |
- |
71 |
71 |
| Net return after taxation |
- |
- |
- |
452,584 |
19,233 |
471,817 |
| Dividends paid in the year (note 4) |
- |
- |
- |
- |
(14,597) |
(14,597) |
| At 31st December 2024 |
14,082 |
159,821 |
8,151 |
1,769,497 |
36,294 |
1,987,845 |
1 These reserves form the distributable reserves of the Company and may be used to fund distributions to investors.
2 During 2024, the Company undertook an Asset Reunification Program to reunite inactive shareholders with their shares and unclaimed dividends. In accordance with the Company's Articles of Association, the Company exercised its right to forfeit the shares belonging to untraced shareholders for a period of 12 years or more. These shares were sold in the open market and the net proceeds returned to the Company. In addition, any unclaimed dividends older than 12 years from the date of payment of such dividend were forfeited and returned to the Company.
CONDENSED STATEMENT OF FINANCIAL POSITION
| |
(Unaudited) |
(Unaudited) |
(Audited) |
| |
At |
At |
At |
| |
30th June |
30th June |
31st December |
| |
2025 |
2024 |
2024 |
| |
£'000 |
£'000 |
£'000 |
| Fixed assets |
|
|
|
| Investments held at fair value through profit or loss |
1,951,943 |
1,925,506 |
2,042,755 |
| Current assets |
|
|
|
| Debtors |
582 |
4,245 |
600 |
| Current asset investments1 |
10,117 |
15,423 |
24,926 |
| Cash at bank1 |
430 |
12 |
112 |
|
|
11,129 |
19,680 |
25,638 |
| Current liabilities |
|
|
|
| Creditors: amounts falling due within one year |
(30,083) |
(4,760) |
(971) |
| Net current (liabilities)/assets |
(18,954) |
14,920 |
24,667 |
| Total assets less current liabilities |
1,932,989 |
1,940,426 |
2,067,422 |
| Creditors: amounts falling due after more than one year |
(72,746) |
(94,642) |
(79,577) |
| Net assets |
1,860,243 |
1,845,784 |
1,987,845 |
| Capital and reserves |
|
|
|
| Called up share capital |
14,082 |
14,082 |
14,082 |
| Share premium |
169,746 |
156,293 |
159,821 |
| Capital redemption reserve |
8,151 |
8,151 |
8,151 |
| Capital reserves |
1,636,885 |
1,635,730 |
1,769,497 |
| Revenue reserve |
31,379 |
31,528 |
36,294 |
| Total shareholders' funds |
1,860,243 |
1,845,784 |
1,987,845 |
| Net asset value per share (note 5) |
1,050.4p |
1,014.2p |
1,109.9p |
1 As at 30th June 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'. This revision separately reports the £15,423,000 investment in the JPMorgan USD Liquidity Fund as 'Current asset investments' and £12,000 as 'Cash at bank', in accordance with the statutory format required by the Companies Act 2006. This adjustment does not affect any other line items in the Statement of Financial Position or the total current assets.
CONDENSED STATEMENT OF CASH FLOWS
| |
(Unaudited) |
(Unaudited) |
(Audited) |
| |
Six months |
Six months |
Year |
| |
ended |
ended |
ended |
| |
30th June |
30th June |
31st December |
| |
2025 |
2024 |
2024 |
| |
£'000 |
£'000 |
£'000 |
| Cash flows from operating activities |
|
|
|
| Net (loss)/return before finance costs and taxation |
(92,479) |
298,787 |
477,305 |
| Adjustment for: |
|
|
|
| Net losses/(gains) on investments held at fair value through |
|
|
|
| profit or loss |
108,492 |
(290,667) |
(459,406) |
| Net foreign currency exchange (gains)/losses |
(6,206) |
798 |
743 |
| Dividend income |
(12,478) |
(11,281) |
(23,634) |
| Interest income |
(531) |
(750) |
(1,352) |
| Scrip dividends received as income |
(5) |
- |
- |
| Realised foreign currency exchange losses on transactions |
(320) |
(337) |
(292) |
| Realised foreign currency exchange losses on JPMorgan |
|
|
|
| USD Liquidity Fund |
(1,335) |
(335) |
(623) |
| (Increase)/decrease in accrued income and other debtors |
(47) |
- |
31 |
| (Decrease)/increase in accrued expenses |
(174) |
(11) |
41 |
| Net cash outflow from operations before dividends, |
|
|
|
| interest and taxation |
(5,083) |
(3,796) |
(7,187) |
| Dividends received |
12,542 |
11,263 |
23,593 |
| Interest received |
531 |
826 |
1,481 |
| Overseas withholding tax paid |
(1,849) |
(1,300) |
(3,003) |
| Net cash inflow from operating activities |
6,141 |
6,993 |
14,884 |
| Purchases of investments |
(357,807) |
(321,362) |
(570,659) |
| Sales of investments |
340,152 |
293,680 |
595,515 |
| Net cash (outflow)/inflow from investing activities |
(17,655) |
(27,682) |
24,856 |
| Dividends paid |
(14,768) |
(9,595) |
(14,597) |
| Proceeds from forfeiture of unclaimed dividends |
- |
71 |
71 |
| Issue of shares from Treasury |
16,475 |
8,158 |
13,893 |
| Repurchase of shares into Treasury |
(33,439) |
(12,622) |
(48,069) |
| Proceeds from share forfeiture |
- |
731 |
731 |
| Repayment of bank loan |
- |
- |
(15,205) |
| Drawdown of bank loan |
30,806 |
15,790 |
15,790 |
| Loan interest paid |
(475) |
(208) |
(583) |
| Private placement interest paid |
(971) |
(975) |
(1,925) |
| Net cash (outflow)/inflow from financing activities |
(2,372) |
1,350 |
(49,894) |
| Decrease in cash and cash equivalents |
(13,886) |
(19,339) |
(10,154) |
| Cash and cash equivalents at start of period/year |
25,038 |
34,207 |
34,207 |
| Foreign currency exchange movements |
(605) |
567 |
985 |
| Cash and cash equivalents at end of period/year |
10,547 |
15,435 |
25,038 |
| Cash and cash equivalents consist of: |
|
|
|
| Cash at bank |
430 |
12 |
112 |
| Current asset investments in JPMorgan USD Liquidity Fund |
10,117 |
15,423 |
24,926 |
| Total |
10,547 |
15,435 |
25,038 |
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 30th June 2025
1. Financial statements
The information contained within the condensed financial statements in this half year report has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 31st December 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 including the report of the auditor which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
The condensed financial statements are prepared under the historical cost convention, modified to include fixed asset investments at fair value, 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 revised 'SORP') issued by the Association of Investment Companies in July 2022.
FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 30th June 2025.
All of the Company's operations are of a continuing nature.
The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 31st December 2024.
3. (Loss)/return per share
| |
(Unaudited) |
(Unaudited) |
(Audited) |
| |
Six months ended |
Six months ended |
Year ended |
| |
30th June |
30th June |
31st December |
| |
2025 |
2024 |
2024 |
| |
£'000 |
£'000 |
£'000 |
| (Loss)/return per share is based on the following: |
|
|
|
| Revenue return |
9,853 |
9,465 |
19,233 |
| Capital (loss)/return |
(105,723) |
286,865 |
452,584 |
| Total (loss)/return |
(95,870) |
296,330 |
471,817 |
| Weighted average number of shares in issue |
179,168,654 |
182,799,838 |
181,599,757 |
| Revenue return per share |
5.50p |
5.18p |
10.59p |
| Capital (loss)/return per share |
(59.01)p |
156.93p |
249.22p |
| Total (loss)/return per share |
(53.51)p |
162.11p |
259.81p |
4. Dividends paid
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|||
|
|
Six months ended |
Six months ended |
Year ended |
|||
|
|
30th June 2025 |
30th June 2024 |
31st December 2024 |
|||
|
|
Pence |
£'000 |
Pence |
£'000 |
Pence |
£'000 |
| Dividend paid |
|
|
|
|
|
|
| Final dividend in respect of prior year |
8.25 |
14,768 |
5.25 |
9,595 |
5.25 |
9,594 |
| Interim dividend in respect of the six months |
- |
- |
- |
- |
2.75 |
5,003 |
| Total dividends paid |
8.25 |
14,768 |
5.25 |
9,595 |
8.00 |
14,597 |
| Proceeds from forfeiture of unclaimed dividends1 |
- |
- |
- |
(71) |
- |
(71) |
| Net dividends . |
8.25 |
14,768 |
5.25 |
9,524 |
8.00 |
14,526 |
1 During 2024, the Company undertook an Asset Reunification Program to reunite inactive shareholders with their shares and unclaimed dividends. In accordance with the Company's Articles of Association, the Company exercised its right to forfeit the shares belonging to untraced shareholders for a period of 12 years or more. These shares were sold in the open market and the net proceeds returned to the Company. In addition, any unclaimed dividends older than 12 years from the date of payment of such dividend were forfeited and returned to the Company.
All dividends paid in the period/year have been funded from the revenue reserve.
An interim dividend of 2.75p (2024: 2.75p) has been declared in respect of the six months ended 30th June 2025, amounting to £4,870,000 (2024: £5,003,000).
5. Net asset value per share
The net asset value per Ordinary share and the net asset value attributable to the Ordinary shares at the period/year end are shown below. These were calculated using 177,106,660 (30th June 2024: 182,002,868; 31st December 2024: 179,095,954) Ordinary shares in issue at the period/year end (excluding Treasury shares).
| |
(Unaudited) |
(Unaudited) |
(Audited) |
|||
| |
Six months ended |
Six months ended |
Year ended |
|||
| |
30th June 2025 |
30th June 2024 |
31st December 2024 |
|||
| |
Net asset value |
Net asset value |
Net asset value |
|||
| |
attributable |
attributable |
attributable |
|||
| |
£'000 |
pence |
£'000 |
pence |
£'000 |
pence |
| Net asset value - debt at par value |
1,860,243 |
1,050.4 |
1,845,784 |
1,014.2 |
1,987,845 |
1,109.9 |
| Add: amortised cost of US$65 million 2.55% Private |
|
|
|
|
|
|
| Placement Feb 2031 |
47,239 |
26.6 |
51,174 |
28.1 |
51,670 |
28.9 |
| Less: fair value of US$65 million 2.55% Private |
|
|
|
|
|
|
| Placement Feb 2031 |
(43,384) |
(24.5) |
(45,125) |
(24.8) |
(45,875) |
(25.6) |
| Add: amortised cost of US$35 million 2.32% Private |
|
|
|
|
|
|
| Placement Oct 2032 |
25,507 |
14.4 |
27,646 |
15.2 |
27,907 |
15.6 |
| Less: fair value of US$35 million 2.32% Private |
|
|
|
|
|
|
| Placement Oct 2032 |
(22,194) |
(12.5) |
(22,903) |
(12.6) |
(23,396) |
(13.1) |
| Net asset value - debt at fair value |
1,867,411 |
1,054.4 |
1,856,576 |
1,020.1 |
1,998,151 |
1,115.7 |
6. Fair valuation of instruments
The fair value hierarchy analysis for financial instruments held at fair value at the period end is as follows:
| |
(Unaudited) |
(Unaudited) |
(Audited) |
|||
| |
Six months ended |
Six months ended |
Year ended |
|||
| |
30th June 2025 |
30th June 2024 |
31st December 2024 |
|||
| |
Assets |
Liabilities |
Assets |
Liabilities |
Assets |
Liabilities |
| |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
| Level 1 |
1,951,943 |
- |
1,925,506 |
- |
2,042,755 |
- |
| Total value of investments |
1,951,943 |
- |
1,925,506 |
- |
2,042,755 |
- |
7. Analysis of change in net debt
| |
|
|
Foreign |
|
|
| |
As at |
|
currency |
Other |
As at |
| |
31st December |
|
exchange |
non-cash |
30th June |
| |
2024 |
Cash flows |
movements |
charges |
2025 |
| |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
| Cash and cash equivalents |
|
|
|
|
|
| Cash at bank |
112 |
318 |
- |
- |
430 |
| Current asset investments1 |
24,926 |
(14,204) |
(605) |
- |
10,117 |
|
|
25,038 |
(13,886) |
(605) |
- |
10,547 |
| Borrowings |
|
|
|
|
|
| Debt due after one year |
- |
(30,806) |
1,616 |
- |
(29,190) |
| Private placements due after one year |
(79,577) |
- |
6,850 |
(19) |
(72,746) |
|
|
(79,577) |
(30,806) |
8,466 |
(19) |
(101,936) |
| Net debt |
(54,539) |
(44,692) |
7,861 |
(19) |
(91,389) |
1 JPMorgan USD Liquidity Fund, money market fund.
Other non-cash charges relate to an amortisation adjustment on borrowings.
JPMORGAN FUNDS LIMITED
13th August 2025
For further information, please contact:
Priyanka Vijay Anand
For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 20 40 20 or +44 1268 44 44 70
E-mail: jpmam.investment.trusts@jpmorgan.com
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
ENDS
A copy of the half year will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The 2025 Half Year Report will also shortly be available on the Company's website at www.jpmamerican.co.uk
where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.
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