LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN GLOBAL CORE REAL ASSETS LIMITED

("JARA" or the "Company")  

QUARTERLY NET ASSET VALUE AND PORTFOLIO UPDATE

Legal Entity Identifier: 549300D8JHZTH6GI8F97

Publication of Shareholder Circular ("Circular")

Further to the Company's announcement of 5th November 2024 confirming the intention of the Board to put forward proposals for a managed wind-down of JARA ("Managed Wind-Down"), the Company published a Circular on 3rd December 2024. The Circular gives details of the Managed-Wind down proposals ("the Proposals") for JARA, the expected timeline for the sales of JARA's assets and also gives notice of an Extraordinary General Meeting ("EGM") of the Company on 20th December 2024. The Circular states that if the Proposals are approved at the EGM the Company will cease paying dividends and no further dividends will be announced following the date of the EGM.

Until further notice, the Company will continue to issue monthly Net Asset Value announcements and quarterly portfolio updates as usual to ensure transparency for shareholders.

Net Asset Value

The Company announces its unaudited Net Asset Value ("NAV") as at 29th November 2024 of 95.53 pence per share (30th August 2024: NAV 90.07 pence per share). The principal factor behind this increase is the strengthening of the US dollar relative to Sterling. During the quarter, the Company paid a dividend of 1.05 pence per share on 29th November 2024, bringing the NAV total return for the quarter to +7.3% and to +6.3% for the preceding 12 months, while the total share price return for the 12 months to 29th November 2024 was +13.2%.

In the 3 months to 29th November 2024, the Company bought back 50,000 shares (on 2nd September 2024) at a discount of approximately 20.8%. As noted in the Chairman's statement in the interim results announced on 27th November 2024, the Board has taken the decision to suspend buybacks of the Company's own shares. A snapshot of the components to this NAV and the relevant date for their valuation is provided below.

Strategies

Private infrastructure and transportation were the largest contributors during the period, adding +0.5% and +0.9%, respectively, in local currency terms. Private real estate equity was marginally positive, while private real estate debt contributed +0.2%. Liquid strategies contributed +0.5% in local currency.

Sterling¹ weakened against the underlying currencies in the portfolio, including USD, resulting in a net positive currency impact over the Company's quarter to 29th November 2024.

¹ The GBP/USD exchange rate was 1.27105 as at 29th November 2024, versus 1.31425 as at 30th August 2024. Currency impact does not factor in an offsetting loss from the hedged infrastructure strategy, which is priced as at 30th September 2024.

Dividends

The most recent quarterly dividend of 1.05 pence per share was paid to shareholders on 29th November 2024. As noted above, the Circular, published on 3 December 2024, states that if the Proposals are approved at the EGM, the Company will cease paying dividends and no further dividends will be announced following the date of the EGM.

Issued Share Capital

As at 29th November 2024, there were 205,820,138 shares in issue, excluding 13,587,814 shares held in Treasury.

Valuations

The Board notes that across the investment companies sector the accuracy of private market valuations is a key investor concern. To this end, the portfolio management team has reviewed historical transactional data in relation to the appraisal (carrying) NAVs for JARA's indirect investments in private real assets. This review was conducted on 30 transactions from 2Q 2022 to 3Q 2024 across US real estate, APAC real estate, and global infrastructure. It showed that exit valuations were largely aligned with the appraisal values at the time of disposal, with an average difference of approximately 3%.

Both the Board and the Investment Manager believe this affirms the quality and resilience of JARA's NAV. This is an indication of the rigour of the valuation process which is undertaken for each of JARA's strategies and their underlying assets. It is important to highlight that this has occurred during a period of significant market uncertainty, most notably in the real estate sector. The Board receives regular reporting on realised gains/losses of any underlying asset disposal against carrying value as part of its work to oversee and validate the Company's reported NAV.  

Portfolio Construction

As at 29th November 2024, the Company's portfolio was valued at £195.0 million.

Sector exposure percentage of NAV²

² As at 29th November 2024. Numbers may not sum due to rounding. Cash level at quarter end was <2%.

Geographical exposure percentage of NAV³

³ As at 29th November 2024. Numbers may not sum due to rounding.

Private Asset Portfolio Metrics

Please see below for the metrics of JARA's private investments. As at 29th November 2024, private asset exposure represented ~82% of JARA's NAV.

Investments

·    347 private investments and, at a more granular individual asset level, look through exposure to 1,440 individual assets (30th August 2024: 348 private investments and 1,442 individual assets).

Private Portfolio Operating Metrics

Discount Rates

The blended average discount rate is 8.1%. The asset level discount rate will vary by strategy, as detailed below. The average discount rate is unchanged over the quarter.

Lease Duration

·    Average lease duration of 5.4 years in real estate and transportation, with approximately 13% expected to expire in 2025.

Occupancy

·    96% occupancy of leased assets in real estate and transportation, with Q3 2024 collections being in line with expectations. At an overall portfolio level, occupancy and income receipts are in line with the Investment Manager's expectations.

Loan To Value (LTV)

·    41% portfolio weighted average LTV across private assets. Asset level LTVs will vary by strategy, with the real estate average LTV of 36% and infrastructure and transport blended LTV of 49%. The underlying strategies continue to take a conservative view on overall leverage use.

Debt

·    4.4% blended average cost of debt across the strategies, with 71.9% being fixed and 28.1% floating and a weighted average maturity of 4.8 years.

Development Profile

A number of the underlying private strategies have the capacity to engage in a small degree of development, with the private asset portfolio having a relatively minimal exposure to development assets. This small allocation allows the Investment Manager, where appropriate, to capitalise on areas where construction is a more effective way to gain access to assets or sectors less accessible in the secondary market. The development pipeline has moderated, especially in real estate. We would expect construction exposure across JARA's portfolio to remain relatively low on an aggregate basis.

Currency

The main currency exposures⁴ of the portfolio (including liquidity funds) are as follows:

⁴ Other currencies represent approximately 4% in aggregate. Numbers may not sum to 100% due to rounding.

17 December 2024

For Further Information

JPMorgan Funds Limited - Company Secretary

Emma Lamb

Telephone 0800 20 40 20 or +44 1268 44 44 70