JPMorgan Global Core Real Assets

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN GLOBAL CORE REAL ASSETS LIMITED

FINAL RESULTS FOR THE YEAR ENDED 28TH FEBRUARY 2021

Legal Entity Identifier: 549300D8JHZTH6GI8F97

Information disclosed in accordance with the DTR 4.1.3

CHAIRMAN'S STATEMENT

I am pleased to present the second Annual Report & Financial Statements for JPMorgan Global Core Real Assets Limited (the 'Company' or 'JARA') for the 12 months to 28th February 2021, this being the first annual report which covers a complete financial year.

Year In Review

Having obtained a premium listing on the London Stock Exchange on 24th September 2019 following a successful initial public offering ('IPO'), your Company entered this financial year with 200,802,887 shares in issue and £194.4 million in net assets. Over the course of the year, the Company grew its share capital by 4.0% through the issue of 8,005,065 new shares at a premium to their prevailing net asset value and, as at 28th February 2021, the Company had 208,807,952 shares in issue and net assets of £183.5 million. Over the year 3.25p in dividends were declared and paid to shareholders.

Objective and Features

The Company's objective is to provide shareholders with stable income and capital appreciation through exposure to a globally diversified portfolio of 'core real assets', by which we mean real assets that offer reliable, highly forecastable, long term cash flows. These are focused on unlisted assets held in private funds investing in the global infrastructure, real estate and transportation sectors, alongside a more liquid element of the portfolio investing directly in listed real assets.

Through these private funds and accounts managed by J.P. Morgan Asset Management, the Company provides diversified access to what is currently over 200 private investments with exposure to over 800 underlying private real assets.

The Company aims to provide investors with a long-term NAV return of 7 to 9% per annum, inclusive of a dividend yield (based on the initial issue price of 100p per share) of 4 to 6% per annum, now that the Company is close to fully invested.

Capital Deployment

Although the COVID-19 pandemic slowed the Company's capital deployment, particularly at the height of the uncertainty between February and August 2020, from September the pace of capital deployment picked up significantly, allowing the Company to meet initial deployment targets. Your Company has now invested 100% of the proceeds arising from its IPO and has invested the major part of the capital raised from subsequent share issuance, which we were able to put to work at a much faster pace than the IPO proceeds. At year end, the Company had invested 90% of shareholder funds and since then further investments have increased to 96% invested. The Investment Manager's report provides more detail on the timing of the deployments and the subsequent geographical and currency exposures of the Company.

Investment and Share Price Performance

The net asset value total return over the period, measured in pound sterling, was -5.9% inclusive of the 3.25p per share dividends paid to shareholders, while share price total return was -1.0%. The Company's share price was 97.2p per share at the financial year end and in the year under review the shares traded in a range of 112.5p to 73.5p per share, reflecting the heightened volatility in equity markets in the first half of 2020 as the effect of the pandemic shook investor confidence. The low point was reached on 19th March 2020 when world equity markets were in a pandemic-induced freefall and it was gratifying to see how fast the share price recovered once central banks intervened to inject liquidity and steady markets.

Since the majority of JARA's assets are US dollar denominated, reported returns have been adversely affected by sterling's 9.5% appreciation against the US dollar over the year. While this exposure has been a negative contributor to date, one of JARA's unique attributes is that it offers shareholders access to real assets globally and with this comes a global currency exposure. Whilst this currency impact has moved against the Company over the last year, one would expect that over the long term currency moves will represent a neutral impact for shareholder returns. It is pleasing to note that the three private strategies in which the Company was invested over the year (transportation and infrastructure assets only in the last few months) and the more liquid strategies all posted positive returns in their local currencies - a testament to the resilience of the underlying strategies in what has a truly testing year.

The Investment Manager's Report reviews the Company's performance and gives a detailed commentary on the investment strategy and portfolio construction, and an outlook for the strategies.

Revenue and Dividends

The Company has weathered a number of headwinds over the last year regarding the portfolio income, with delays to deployment and sterling strength presenting significant hurdles, but the Board is pleased to note that this has not prevented JARA from achieving both its first year target dividend yield of 2 to 3p per share, and is now on track to hit its fully invested run rate of 4 to 6p per share, with both targets based on the initial issue price of 100p per share. Over the year the Board declared in respect of the Company's year ending 28th February 2021 the following dividends:

•   First quarterly interim dividend of 0.75p per share, which was paid on 28th May 2020

•   Second quarterly interim dividend of 0.75p per share, which was paid on 31st August 2020

•   Third quarterly interim dividend of 0.75p per share, which was paid on 30th November 2020

•   Fourth quarterly interim dividend of 1.0p per share, which was paid on 25th February 2021

Over the longer term, however, the ability to maintain and grow the dividend will depend on the rate at which the Company can invest and in the continuing success of the underlying strategies. The Directors intend to maintain the current level of dividend payments and review the level of dividend cover in the coming quarters and have declared a first dividend for the 2021/22 financial year of 1 penny per share, which was paid to shareholders on 27th May. Your Board is hopeful that over the longer term the success of the underlying businesses into which we invest will facilitate a steadily growing level of dividends.

Placing Programme and Share Issuance

Since IPO, the Company has taken advantage of the premium to NAV at which the shares have traded over the period to issue an additional 59,833,063 shares, and over the past financial year 8,005,065 new shares were issued pursuant to the placing programme, raising gross proceeds of £8.7 million. These proceeds are invested in line with the Company's investment policies across the underlying investment strategies. Share issuance is always executed at a premium to the prevailing cum-income NAV per share and so is accretive to the returns of existing shareholders. If conditions are appropriate, the Company will continue to issue new shares which, as well as assisting with premium management, will also enhance liquidity and continue to underpin the Company as an attractive investment.

C-Share Capital Raise

The Company published a prospectus on 10th November 2020 looking to raise new capital. This prospectus remains active and the Company continues to explore a number of fund raising opportunities and when the market environment allows, this will be conducted either via a C-Share or placing. The Manager believes there are a number of opportunities across the JPMorgan real asset platform that are attractive and would offer accretive additions to the Company's portfolio and return profile.

Corporate Governance

The Board is committed to maintaining and demonstrating high standards of corporate governance, which is essential to foster the long-term, strategic thinking that will create and protect value for all stakeholders. The Board has considered the principles and provisions of the 2019 Association of Investment Companies Code of Corporate Governance (the 'AIC Code'). The AIC Code addresses all the principles and provisions set out in the UK Corporate Governance Code, as well as setting out additional principles and provisions on issues that are of specific relevance to investment companies. The Board considers that reporting in accordance with the principles and provisions of the AIC Code provides relevant and comprehensive information to shareholders.

I am pleased to report that throughout the year ended 28th February 2021, the Company complied with the recommendations of the AIC Code.

The Board

In accordance with the Company's Articles of Incorporation and corporate governance best practice, all Directors will be retiring and seeking re-election by shareholders at the Company's Annual General Meeting ('AGM'). The Board's knowledge and experience is detailed on page 36 of the Company's Annual Report & Financial Statements for the year ended 28th February 2021 ('2021 Annual Report').

Annual General Meeting

The Company's second AGM will be held on 3rd August 2021 at 12.30 p.m. at Les Echelons Court, Les Echelons, South Esplanade, St Peter Port, Guernsey GY1 1AR. At the time of writing, it is unclear whether social distancing measures will be in place at the time of the AGM. We therefore intend to hold the AGM as a formal meeting simply to conduct the business of the meeting and without presentations or refreshments. 

Currently Guernsey based shareholders are permitted to attend the AGM in person, shareholders from outside of the Bailiwick of Guernsey are strongly encouraged to appoint the chairman of the AGM as their proxy. Shareholders from outside of the Bailiwick of Guernsey are encouraged to raise any questions in advance of the meeting with the Company Secretary at the Company's registered address, or via the 'Ask Us a Question' link which can be found in the 'Contact Us' section on the Company's website, or by writing to the Company Secretary at the address on page 91 of the 2021 Annual Report or via email to [email protected].

Should circumstances change and restrictions be further eased or tightened prior to the date of the AGM, the Company will announce, via its website and, as appropriate, through an announcement on the London Stock Exchange, any change in the arrangements which it feels would be reasonable and practical to implement.

Outlook

The Company has developed significantly from when I wrote to shareholders in my last annual statement. It has hit its dividend targets and its assets have seen no material disruption or lasting impact from the COVID-19 pandemic. Given our extensive exposure to the international property and transportation sectors, our asset managers would appear to have weathered the storm with very little damage suffered. Our only real headwind has been the current strength of pound sterling relative to most foreign currencies, an issue which many regard as a 'high quality problem' and one which may well correct itself in the medium term.

The world around us is likely to continue to change, both as a result of the pandemic but also from technological and societal forces. The Company's portfolio diversity should be a strength during these times as its exposure to any one sector or asset type is well dispersed. This is typified by the movement seen in the property allocations over the last year as the strength in the allocations to logistics and suburban housing - sectors positively impacted by how people's shopping and living preferences have changed as a result of the pandemic - served to offset any weakness in the small retail exposures. It is also exciting to see how the Company is exposed to a number of global trends throughout its portfolio including: the energy transition, e-commerce acceleration and changing living preferences. One of the criteria that define real assets as being 'core' is the extent to which the asset acts as a fundamental building block to a well-functioning society. Thus it makes sense that, as society evolves, so will the definition of what we consider to be core real assets. The Company's diversification, and ability to adapt to find opportunities globally, should act as an exciting strength in this time.

John Scott

Chairman                                                                                                                                         

7th July 2021

INVESTMENT MANAGER'S REPORT

The Investment Management Team

The Company's portfolio is managed by the Alternative Solutions Group ('ASG') of J.P. Morgan Asset Management ('JPMAM'). This team manages over £50 billion of real assets - investments with predictable cash flows and stable capital values.

With over 25 years of experience in managing real assets, the team is made up of over 30 investment professionals based primarily in London, New York, Hong Kong and Singapore. Senior members of the ASG team are responsible for implementing the Company's investment policy via an Investment Committee which brings together the ASG's experience, insights and analytics to manage JARA's portfolio for the benefit of shareholders.

Portfolio Review

Over the year, the Company's NAV total return measured in pounds sterling was -5.9%, whilst JARA's return measured in source currency of the investments was +2.1%. The main driver of the Company's negative NAV return was sterling's appreciation versus most major currencies, particularly towards year end. Of particular note was sterling strengthening by 9.5% against the US dollar.

As a reminder, the Company's portfolio is unhedged and, therefore, when allocating to overseas assets denominated in currencies other than sterling, there is a foreign exchange risk which can act to the detriment as well as the benefit of shareholders. Non-sterling assets comprise the vast majority of the potential investment opportunities open to the Company, so this risk is inherent in the Company's investment aims and policies. The ASG notes that some of this sterling strength has stabilised since year-end and that JARA's currency mix is now more diversified than it was during 2020.

Through the year, the Company invested US$131 million (£93 million) in private core real assets in line with its investment objective. The deployment of initial IPO proceeds was somewhat delayed as a result of COVID-19 pandemic uncertainties and constraints in the March to August 2020 period. In addition to creating valuation uncertainties, the pandemic placed constraints on travel which limited the extent to which the investment managers where able to carry out the due diligence necessary to complete underlying investments. However, from September, investment progress picked up substantially and JARA has now invested all IPO proceeds and a significant portion of subsequently raised capital. This involved new investments being made across infrastructure, transportation and Asia-Pacific real estate.

As shown below, JARA is now well diversified across a range of different sectors throughout the Real Asset spectrum. This sectoral allocation evolved significantly over the last 12 months, with JARA's initial private allocations being initiated to many sectors including: Utilities, Renewable Energy, Maritime and Energy Logistics. An important aspect of JARA's focus is its diversification which aims to ensure no over-exposure to any one sector, asset or counterparty. Over the year JARA has gone a long way towards achieving this.

As of 28th February 2021. Note sector allocation includes both public and private assets.

Having started its financial year with c. 65% in cash (predominantly held in US dollars) there has also been significant progress in diversifying the Company's geographic exposure following further deployment of its assets. JARA's currency exposure has also developed since the start of the year when US dollar exposure was 92%, compared with 66% at the year-end (see chart below). This US dollar bias in the Company's asset allocation is expected to persist with a long term exposure of approximately 60%.

Private real estate allocations represented 33% of the portfolio at year end and, in local currency terms, contributed a marginally positive return to JARA's portfolio over the year. The majority of this came from the US real estate exposure. Real estate markets started and finished the year well which offset the negative returns over the middle of the year coinciding with the height of the pandemic. The private real estate allocation focused in four primary sectors - Industrial, Office, and Residential and Retail. The top and bottom performing sectors were Industrial and Retail, respectively - sectors which are on either side of the e-commerce trend which has been accelerated by the pandemic. Performance in the Office and Residential markets was relatively flat but with some significant intra-sector dispersion. For example, suburban residential and specialised offices (e.g. life sciences) performed well, whilst luxury residential and offices serving the finance and legal professions were impacted to a greater extent by the pandemic.

Following initial investments in October 2020, JARA's private infrastructure and transportation allocation contributed to JARA's performance only towards the end of its financial year. Both, however, contributed positively during this period to returns in local currency terms and look well positioned to continue this trend in the Company's current financial year. Importantly, prior to JARA's investment, both strategies exhibited resilience in the face of the pandemic with the contracted and regulated income streams remaining robust and delivering the majority of expected return. However, not all parts of the market were immune, with sectors like aviation (both aircraft and airports) and other demand-sensitive sectors in infrastructure, such as toll roads, suffering. Even if some of this pandemic-led disruption continues through the current financial year, these sectors are a relatively small part of JARA's asset mix at 4% and this exposure is expected to reduce during 2021.

At year end, the liquid real assets strategies collectively represented 22.6% of the portfolio. As a reminder, JARA's listed real asset allocation is made up of two distinct strategies: U.S. all-tranche REITs and an allocation more broadly across a variety of other listed real assets. In source currency terms these allocations produced returns of +9.6% and +3.6% respectively. The allocation to the listed strategies was increased during the middle of the last financial year whilst public market prices were still deemed to be depressed. The continued market rally has meant that this allocation now represents a marginal overweight compared to the target allocation and, in addition to its ability to generate returns, this is expected to be a useful source of liquidity to re-cycle into private opportunities at some point during the current financial year.

At the beginning of the period the listed allocation unsurprisingly witnessed some volatility; it did, however, fulfil its role in the portfolio as both a liquidity source and a diversifier to complement the private assets. In particular, the all-tranche REIT allocation has flexibility to invest in different parts of the REIT capital structure, allowing it to provide comparative capital value and income stream stability during volatile periods. The benefit of this was seen over the period where it was able to produce a similar performance to REIT equity, but with a lower level of volatility.

Real Asset Market Outlook

There are many aspects which help define what 'core real assets' are, but one is that they provide essential services which make up the key building blocks and networks of society. As society changes, so will the definition, use of and opportunities within the core real asset market. Societal change is afoot, accelerated by the COVID-19 pandemic and by the adoption of new technologies. The way we work, live and consume energy is changing and this impacts the investment landscape and presents new and exciting opportunities in the real asset market.

Notwithstanding these changes, core real assets are as essential as ever to investors' portfolios. With traditional fixed income yields still near all-time lows, core real assets can help investors seeking income and diversification. In addition, core real assets tend to be inflation sensitive assets with opportunity for upside participation, given the pass-through structure of many of the underlying contracts. Therefore, to the extent an economic recovery leads to levels of inflation closer to historical norms, it should be positive for asset class returns.

Set out below is the outlook for each of the major real asset categories within JARA: Real Estate, Infrastructure and Transportation.

Real Estate

COVID-19 has accelerated a number of technologically driven mega-trends that were already underway in the real estate market. The Industrial and Logistics sector has been the greatest beneficiary of this but the sector's relative success, and our positive outlook, is not limited to the benefits of e-commerce. Other forces include the need to update warehousing for modern supply chain management; rapid infrastructure advances, population growth/change and supportive government policies all provide opportunities for JARA, but present challenges for the unprepared. We take the view that opportunities vary by country and there are also opportunities in more targeted markets such as 'last-mile' logistics.

Retail and Office are also highly impacted sectors. We expect the headwinds for Retail to continue, albeit the pace of the shift to e-commerce may soften this in the short-term. The outlook for the Office market is less clear. Collaboration is essential to productivity, especially in industries for which innovation is a competitive necessity and perhaps surprisingly even in those industries traditionally thought of as most susceptible to remote work, such as technology, which have been relatively strong proponents of returning to the office1. Therefore, whilst we believe that the Office market will evolve as a result of the pandemic, wholesale reduction in all office use is not our base case. We also emphasise a differentiation between different types of Office assets. For example, there are regional differences in the pace of the move to return to work, with some countries, regions and sectors reverting more quickly than others. Similarly, in some specialist Office categories such as life sciences, space is in high demand and cannot easily be replaced by remote working due to regulatory and safety limitations.

Looking ahead, the case for global real estate remains consistent and simple. The addressable market is far larger and much more diverse than in the UK or European markets alone, allowing investors to benefit from different underlying return drivers. At the same time, the rapid growth of certain markets in Asia, such as China, is transforming the global core market and providing a multitude of attractive investment opportunities. We initiated a Chinese-based logistics allocation in 2020 and expect to see opportunities to expand such investments over time.

Infrastructure

As shown below, private core infrastructure returns held up well in 2020, supported by robust income, reflecting the essential and long-term contracted/regulated nature of many core infrastructure assets. Nevertheless the asset class was not immune to the pandemic's headwinds. The pre-COVID-19 environment had in part been characterised by an expansion of the definition of core infrastructure to include assets where the robustness of income streams had not been tested. When pandemic lockdowns hit, many (though not all) of these higher risk infrastructure assets, such as demand based toll roads (to which JARA has no exposure) struggled, highlighting the varied risk profiles of the asset types.

The challenges posed by the pandemic also underlined the importance of owning a controlling stake in assets. A majority owner can more often than not make needed changes - and move with the requisite speed to tackle issues that arise in a crisis. In the 'batten down the hatches' environment of Q2 2020, investors with control positions were able quickly to coordinate their actions with their companies' management teams to address the environment they were facing. Similarly, the COVID-19 crisis also emphasised the importance of proactive stakeholder engagement. For example, in the early weeks of the pandemic shutdowns, regulated utilities agreed not to disconnect any customers for non-payment and provided employees with Personal Protective Equipment ('PPE') along with new operating procedures to keep them safe. These actions were not only the right thing to do, they were also exactly what regulators were looking for and foster a positive long term relationship.

COVID-19 has also accelerated the energy transition. Several governments (and prospective governments), particularly across the EU, have pledged commitments to a 'green recovery,' promising environmentally friendly stimulus measures to mitigate the effects of the coronavirus recession and future concerns over global warming. We expect this to lead to an acceleration in the construction of solar and wind energy generation capacity and increased adoption of renewable sources by electric utilities. This transition will provide continued investment opportunities. We also expect that there will be necessary complementary investments to upgrade existing transmission grids and build storage capacity to complement growth in intermittent renewable sources.

Transportation

The maritime transportation industry has experienced a decade-long correction to what was, at the peak of the Global Financial Crisis ('GFC'), a severe supply order book overhang of 55% of the then on-the-water fleet. The current order book levels are at an attractive 7.6% of the global fleet, with this amount set for delivery over the next four years (see below). This level is not expected to be sufficient to support industry scrappage plans and growth requirements. This, coupled with strong post COVID-19 demand - e.g. cargo volume growth of 4.7% is expected in 2021, following a -3.8% decline in 2020 - provides strong fundamentals for transport owners.

This situation, combined with an increasing focus on new carbon reduction initiatives and the technologies needed to support these, is leading to a market populated by fewer, consolidated, more financially robust participants. It also paves the way for opportunities in new ESG-aligned transportation assets. Examples include technologies which allow for a wider variety of 'fuels' to be used, including LNG, battery powered propulsion and perhaps hydrogen. The companies driving this transformation are reliant on investors like JARA who are seen as long term, financially stable partners who can provide the capital to finance assets which are critical to their supply chain.

Conclusion

The Company has met its income and investment objectives despite disruptions caused by the COVID-19 pandemic, with we believe, no material impact to the portfolio. An important aspect of the JARA's focus is its diversification, which aims to ensure no over-exposure to any one sector, asset or counterparty. The Company has gone a long way towards achieving this, having fully invested both its IPO proceeds and the majority of capital raised post IPO, and the portfolio is now well positioned to deliver on its objective of providing shareholders with stable income and capital appreciation from exposure to its portfolio of core real assets.

Investment Manager                                                                                                                            

J.P. Morgan Asset Management's Alternative Solutions Group

7th July 2021

PRINCIPAL AND EMERGING RISKS

The Directors confirm that they have carried out a robust assessment of the principal risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. With the assistance of JPMF, the Audit Committee and Market Risk Committee, chaired by Helen Green and Simon Holden, respectively, have drawn up a risk matrix, which identifies the key risks to the Company. These are reviewed and noted by the Board. The principal and emerging risks identified and the broad categories in which they fall, and the ways in which they are managed or mitigated are summarised below. The AIC Code of Corporate Governance requires the Audit Committee to put in place procedures to identify emerging risks and also provide an explanation of how these are managed or mitigated.

TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES

Details of the management contract are set out in the Directors' Report on page 37 of the 2021 Annual Report. The management fee payable to the Manager for the year was £703,000 (period ended 29th February 2020: £113,000) of which £203,000 (period ended 29th February 2020: £107,000) was outstanding at the year end.

The Company holds cash in JPMorgan Sterling Liquidity Fund, which is managed by JPMF. At the year end, this was valued at £0.3 million (period ended 29th February 2020: £3.4 million). Interest amounting to £6,000 (period ended 29th February 2020: £10,000) was receivable during the year of which £nil (period ended 29th February 2020: £2,000) was outstanding at the year end.

The Company holds cash in JPMorgan US Dollar Liquidity Fund, which is managed by JPMF. At the year end, this was valued at £18.6 million (period ended 29th February 2020: £122.7 million). Interest amounting to £559,000 (period ended 29th February 2020: £850,000) was receivable during the year of which £4,000 (period ended 29th February 2020: £172,000 was outstanding at the year end.

Included in administrative expenses in note 7 on page 66 of the 2021 Annual Report are safe custody fees amounting to £94,000 (period ended 29th February 2020: £17,000) payable to JPMorgan Chase N.A. of which £1,000 (period ended 29th February 2020: £17,000) was outstanding at the year end.

Handling charges on dealing transactions amounting to £21,000 (period ended 29th February 2020: £19,000) were payable to JPMorgan Chase N.A. during the year of which £2,000 (period ended 29th February 2020: £12,000) was outstanding at the year end.

At the year end, a bank balance of £976,000 (period ended 29th February 2020: £570,000) was held with JPMorgan Chase N.A. A net amount of interest of £nil (period ended 29th February 2020: £34,000) was receivable by the Company during the year from JPMorgan Chase N.A. of which £nil (period ended 29th February 2020: £nil) was outstanding at the year end.

Full details of Directors' remuneration and shareholdings can be found on pages 45 and 46 and in note 7 on page 66 of the 2021 Annual Report. Directors received a dividend from their shares over the reporting period commensurate with their shareholdings.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report & Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare the Financial Statements for each financial year. Under that Law, the Directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards to meet the requirements of applicable law and regulations. Under company Law the Directors must not approve the Financial Statements unless they are satisfied that, taken as a whole, the Annual Report & Financial Statements are fair, balanced and understandable, provide the information necessary for shareholders to assess the Company's position, performance, business model and strategy and that they give a true and fair view of the state of affairs of the Company and of the total return or loss of the Company for that period. In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:

•        select suitable accounting policies and then apply them consistently;

•        make judgements and accounting estimates that are reasonable and prudent;

•        state whether applicable International Financial Reporting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•        prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business

and the Directors confirm that they have done so.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies (Guernsey) Law, 2008. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The accounts are published on the www.jpmrealassets.co.uk website, which is maintained by the Company's Manager. The maintenance and integrity of the website maintained by the Manager is, so far as it relates to the Company, the responsibility of the Manager. The work carried out by the Auditor does not involve consideration of the maintenance and integrity of this website and, accordingly, the Auditor accepts no responsibility for any changes that have occurred to the accounts since they were initially presented on the website. The accounts are prepared in accordance with International Financial Reporting Standards.

Under applicable law and regulations the Directors are also responsible for preparing a Directors' Report, Strategic Report, Corporate Governance Statement and Directors' Remuneration Report that comply with that law and those regulations.

Each of the Directors, whose names and functions are listed on page 36 of the 2021 Annual Report confirms that, to the best of their knowledge:

•        the financial statements, which have been prepared in accordance with International Financial Reporting Standards and applicable law, give a true and fair view of the assets, liabilities, financial position and return or loss of the Company; and

•        the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal and emerging risks and uncertainties that it faces.

The Board also confirms that it is satisfied that the Strategic Report and Directors' Report include a fair review of the development and performance of the business, and the position of the Company, together with a description of the principal and emerging risks and uncertainties that the Company faces.

For and on behalf of the Board

John Scott

Chairman

7th July 2021

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 28TH FEBRUARY 2021

The Company does not have any income or expense that is not included in the net loss for the year/period.

Accordingly the 'Net loss for the year/period, is also the 'Total comprehensive loss' for the year/period, as defined in IAS1 (revised).

All Items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year/period.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 28TH FEBRUARY 2021

STATEMENT OF FINANCIAL POSITION

AS AT 28TH FEBRUARY 2021

Incorporated in Guernsey with the company registration number: 66082.

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 28TH FEBRUARY 2021

1     Cash and cash equivalents includes liquidity funds.

NOTES TO THE FINANCIAL STATEMENTS

1.       General information

The Company is a closed-ended investment company incorporated in accordance with the Companies (Guernsey) Law, 2008. The address of its registered office is at 1st Floor, Les Echelons Court, Les Echelons, South Esplanade, St Peter Port, Guernsey GY1 1AR.

The principal activity of the Company is investing in securities as set out in the Company's Objective and Investment Policies. The Company was incorporated on 22nd February 2019. The Company was admitted to the Main market of the London Stock Exchange and had its first day of trading was on 24th September 2019.

Investment objective

The Company will seek to provide Shareholders with stable income and capital appreciation from exposure to a globally diversified portfolio of core real assets.

Investment policy

The Company will pursue its investment objective through diversified investment in private funds or accounts managed or advised by entities within J.P. Morgan Asset Management (together referred to as 'JPMAM'), the asset management business of JPMorgan Chase & Co. These JPMAM Products will comprise 'Private Funds', being private collective investment vehicles, and 'Managed Accounts', which will typically take the form of a custody account the assets in which are managed by a discretionary manager.

2.  Summary of significant accounting policies

          Basis of Preparation

          (a)          Statement of compliance

The Company's financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS'), which comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'), the IFRS Interpretations Committee and interpretations approved by the International Accounting Standards Committee ('IASC') that remain in effect and the Companies (Guernsey) Law, 2008.

          (b)    Basis of accounting

These financial statements have been prepared on a going concern basis in accordance with IAS 1, applying the historical cost convention, except for the measurement of financial assets including derivative financial instruments designated as held at fair value through profit or loss ('FVTPL') that have been measured at fair value.

All of the Company's operations are of a continuing nature.

3.       Loss per share

4.       Dividends

The first interim dividend proposed in respect of the period ended 29th February 2020 amounted to £1,506,000. However the amount paid amounted to £1,510,000 due to shares issued after the balance sheet date but prior to the share register record date.

5.       Net asset value per share

6.       Status of announcement

  2020 Financial Information

  The figures and financial information for 2020 are extracted from the Annual Report and Financial Statements for the       period ended 29th February 2020 and do not constitute the statutory accounts for the   year. The Annual Report   & Financial Statements includes the Report of the Independent Auditors which is unqualified.

  2021 Financial Information

  The figures and financial information for 2021 are extracted from the published Annual Report and Financial            Statements for the year ended 28th February 2021 and do not constitute the statutory accounts for that year. The Annual    Report and Financial Statements include the Report of the Independent Auditors which is unqualified.

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.

7th July 2021

For further information:

Alison Vincent,

JPMorgan Funds Limited            

020 7742 4000

ENDS

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

The annual report will shortly be available on the Company's website at www.jpmrealassets.co.uk where up-to-date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

JPMORGAN FUNDS LIMITED