JPMorgan Global Core Real Assets

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN GLOBAL CORE REAL ASSETS LIMITED

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31ST AUGUST 2021

Legal Entity Identifier: 549300D8JHZTH6GI8F97

Information disclosed in accordance with the DTR 4.1.3

CHAIRMAN'S STATEMENT

Introduction

I am pleased to present the interim report for JPMorgan Global Core Real Assets Limited (the 'Company', or 'JARA') for the six months ended 31st August 2021.

Over the period economic activity and business confidence have increased, largely on the back of the successful roll-out of Covid-19 vaccines - at least in developed markets. The gradual return to something approaching normal life has already delivered benefits to the sectors in which your Company invests. The real estate sectors, in both the public and private markets, and the transportation markets have all seen more activity, resulting in strong utilisation levels. JARA's listed allocation supplemented its exposure to private businesses by providing strong positive performance over the six months.

The Company recorded a total return on net assets of +6.5% over the six months ended 31st August 2021. The total return for shareholders was -2.8% over the same period as a result of the premium to net asset value narrowing, moving from 10.6% at the previous year end to 0.9% at 31st August 2021. The Investment Managers' Report reviews the Company's performance and gives a detailed commentary on the investment strategy and portfolio construction, and their outlook for the underlying strategies.

Objectives and Features

The Company's objective is to provide shareholders with stable income and capital appreciation from exposure to a globally diversified portfolio of core real assets, being 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 in listed 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.

Capital Deployment

As I wrote in my Chairman's statement for the year ended 28th February 2021, the Company was 90% invested at the start of the latest six month period. There were a number of capital calls from the funds into which we invest over the period, including $12 million into the Global Transport Strategy and a smaller call into the Global Infrastructure Strategy (including a post period Infrastructure investment of $0.8 million). A further $15.8 million of capital has been called into Global Real Estate, primarily in the Asia-Pacific markets. During the period, there was also a maiden commitment to JPMorgan's US Real Estate Mezzanine Debt Strategy which aims to capture the attractive returns currently available in that sector and will serve to boost the income receivable by JARA.

After taking into account the share issuance in the period, the Company had 95% of shareholders' funds invested at 31st August 2021, with uncalled commitments of $20.9 million.

Dividends

Over the review period the Company has declared and paid two quarterly dividends, both for 1 penny per share. Based on the closing share price as at 31st August 2021, this represents an annualised yield of 4.4%.

Share Issuance and Capital Raising

In the six month review period the Company took advantage of investor demand to issue an additional 8.6 million shares, raising some £7.8 million of proceeds. This level of issuance reflects the Board's assessment of the benefits that come from additional share issuance, the new shares being issued at a premium to NAV to compensate existing shareholders for any possible dilution of returns that can arise when new capital is waiting to be deployed. After talking to existing shareholders, the Board and Manager maintain their view that periodic issuance of new shares at a modest premium when client demand and market opportunities arise is a sound way to grow JARA.

Outlook

Given the pandemic that we sailed into and which has had such a profound effect on the world for the past 18 months, it is clear that the decision to launch an investment fund in September 2019 with significant exposure to sectors such as transportation and real estate has ensured that JARA has had a baptism of fire. Not only were many of our target sectors severely affected by what was to come, we also experienced significant delays in the deployment of our funds, being forced to sit with cash at a time when interest rates were effectively zero. The fact that our reference currency is sterling, which has appreciated against almost every currency in which our underlying assets are valued, has provided a further brake on our performance when reported in sterling.

Fortunately, our Investment Managers held their nerve and JARA is now seeing the benefits of their patience and expertise. I am very encouraged both by the speed of the recovery we are seeing in so many of the sectors where our shareholders' money has been deployed; and by the way our revenue account has been growing, thus allowing us to make quarterly distributions in line with what was offered at the time of our 2019 IPO. After what I have already referred to as a baptism of fire, I believe that we are remarkably well placed to profit from the next phase of the recovery in the world economy and that our shareholders will continue to capture the benefits of the high quality, internationally diversified portfolio of real assets in which we are invested.

John Scott

Chairman                                                                                                                                

16th November 2021

INVESTMENT MANAGERS' REPORT

Review of Markets

In the prior six months, many developed economies made sufficient progress on vaccination levels to allow them to ease COVID-related restrictions significantly - enabling greater mobility and for activity levels to pick up. As a result of this, more economically sensitive parts of the market, such as equities and real estate, rose strongly. The relaxation of pandemic-related restrictions was achieved despite the highly contagious Delta variant spreading across much of the world. Winter brings with it further uncertainty in relation to COVID's transmissibility and if hospitalisations do increase further, the economic recovery could be impeded though, in our view, not derailed.

As a result of the reopening, economic data over the period was generally very strong, especially in the US, which posted an annualised growth rate in excess of 6% in both the first and second quarters of 2021. Although the Eurozone economy contracted by 0.6% in the first quarter, it was able to grow strongly in Q2 owing in no small part to an accelerated vaccination effort. Despite supply side strain, indicators point to continued economic growth over the remainder of the year.

The reopening of economies and the quick rebound in activity has met with some production and transportation bottlenecks - constraining growth and fuelling inflation in some countries. The US consumer price index increased over 5% year on year and whether or not supply side issues can ease and whether inflation will be with us for a while are the big questions for investors. Whilst the Federal Reserve continues to see this inflation increase as transitory, it has recently become slightly more hawkish, as have other central banks, meaning quicker tapering and earlier rate rises are being discussed. Importantly for investors, in an environment where inflation is running above trend, gaining a positive real return is a challenge. As such, assets that can increase their cash flows as a result of inflation or nominal GDP growth - something real assets are typically well positioned to do - should become a valuable quality within investors' portfolios.

The other significant driver of markets in the last six months has been politics and regulation. Examples of what investors have had to deal with recently include: new regulation in China; changing governments in Japan and Germany; and the wide variety of policies in the name of greener, more sustainable economies. Real assets are an asset class where regulation and/or political interference can have an impact and this is something of which we are mindful when we invest. Nevertheless, in our view, diversification across many countries and regulatory regimes remains the best way of protecting a portfolio from these issues and is a major focus of our portfolio construction approach.

Portfolio Review

Portfolio Review and Positioning

The first six months of this financial year represent JARA's first two quarters of being significantly invested. Over the period, the Company's portfolio had a total return in GBP of +6.5%, inclusive of two 1 quarterly dividends of 1 penny per share. The annualised yield, based on the NAV as at 31st August 2021, was 4.4% and this is within the Company's 4 to 6% target range. This strong positive NAV return aligns with JARA being a more fully invested portfolio which is well positioned to generate positive real returns over the long term.

The Company started the year with an investment level of 90% and finished the period at 95%. During the six months the Company invested $27.8 million of additional capital primarily into Transportation and Asia-Pacific Real Estate markets with smaller investments in the US Real Estate and Infrastructure markets. JARA's initial commitment to Real Estate Mezzanine Debt has also been made - an attractive sub-sector of real estate which offers a strong yield from more senior securities. This commitment, which has yet to be funded, will represent just over 5% of JARA and the allocation will be funded from cash and the Company's existing real estate allocation.

JARA Sector Exposures

JARA has now achieved its target of being a globally diversified portfolio. The Company currently has 51% of its portfolio in North America, 30% in Asia-Pacific, 16% in Europe and 3% in the UK. With this portfolio comes currency exposure, and whilst the strength of sterling has been a negative influence on returns since inception we would highlight that the majority of return in the past six months was driven by strong local currency asset return, with currency as a slight tailwind. Over the six months JARA's real estate, infrastructure and transportation allocations were positive contributors to the portfolio.

JARA entered the year with a slight overweight to real estate - something we were comfortable with due to real estate being a slightly more economically sensitive asset class and therefore one we feel should benefit over the next 12-18 months from a favourable economic environment. This positioning had positive outcomes as we saw real estate provide the largest contribution to the portfolio - with the Company's industrial and residential exposure leading the way. Across the portfolio we continue to have a pipeline of over 11 million square feet in industrial assets, helping to build on this high conviction area. Further investments into Asia deepen the exposure in markets where we expect strong economic and demographic growth during the next cycle, as well as further diversifying the currency exposure.

The infrastructure and transportation markets continued their consistent run, with a +3.6% and a +2.5% performance, respectively. Similar to real estate, the transportation market is benefiting from the increase in economic activity with measures such as port call data and utilisation levels looking strong. As a core investor in the asset class the Company is focused on access to this market through longer term contracts, which are less affected by spot rates, but the portfolio takes advantage of attractive economics when renewing lease rates or acquiring new vessels. This addition of new vessels at higher rates serves to benefit the overall portfolio and we have targeted new capital towards the containership market and new build assets in the Liquid Natural Gas sector. In Infrastructure the focus remains on smaller, bolt on acquisitions and these continue to be made in the utilities and renewable energy areas.

The portfolio is focused on achieving positive environmental, social and governance benefits across its real assets - something we believe to be vitally important given the assets are often fundamental to the societies in which they operate. With this in mind, we are reviewing the Company's emissions footprint with a view to providing investors with a full understanding of the portfolio, as well as how we will improve this over time. In this vein we would like to highlight that across the Company's real estate portfolio we are targeting a reduction of energy and emissions by 25% over ten years in alignment with the Paris Accord and reduce water and waste by 15% over the decade. In the past year these targets were achieved and we were also able to avoid 4 million metric tonnes of emissions as a result of the renewable energy generated.

Other Portfolio metrics/exposures

Please refer to the Company's Half Year Report & Financial Statements ('Half Year Report') for various graphics highlighting other portfolio metrics, exposures and key portfolio themes.

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

Investment Managers                                                                                                             

16th November 2021

HALF YEAR MANAGEMENT REPORT

The Company is required to make the following disclosures in its Half Year Report:

Principal and Emerging Risks and Uncertainties

The principal and emerging risks and uncertainties faced by the Company fall into eight broad categories: investment and strategy; valuation of investments; counterparty; operational and cybercrime; geopolitical events and regulatory change; over reliance on the Manager; climate change; and global pandemics. Information on each of these areas is given in the Company's Strategic Report within the Annual Report and Financial Statements for the period ended 28th February 2021.

Related Parties Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company during the period.

Going Concern

The Directors believe that having considered the Company's objective, risk management policies, capital management policies and procedures, the nature of the portfolio and expenditure projections, the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for a period of at least 12 months from the date of approval of this Half Year Report. They have not identified any material uncertainties to the Company's ability to continue to do so over a period of at least 12 months from the date of approval of this Half Year Report. This conclusion also takes into account the Board's assessment of the risks arising from the COVID-19 pandemic on the current and future operations of the Company.

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 Report has been prepared in accordance with FRS104 'Interim Financial Reporting' and gives a true and fair view of the assets, liabilities, financial position and net return of the Company as required by the UK Listing Authority Disclosure and Transparency Rules ('DTR') 4.2.4R; and

(ii)     the half year management report includes a fair review of the information required by DTR 4.2.7R and 4.2.8R.

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 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

John Scott

Chairman                                                                                                                              

16th November 2021

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31ST AUGUST 2021

The Company does not have any income or expense that is not included in the net return/(loss) for the period/year. Accordingly the 'Net return/(loss) for the period/year, is also the 'Total comprehensive income/(expense)' for the period/year, as defined in IAS1 (revised).

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

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31ST AUGUST 2021

STATEMENT OF FINANCIAL POSITION

AT 31ST AUGUST 2021

STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31ST AUGUST 2021

¹ Presented under Cash and cash equivalents in Statement of Financial Position.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31ST AUGUST 2021

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. It was admitted to the premium listing category of the Official List of the FCA and to trading on the Main Market and had its first day of trading on 24th September 2019.

The information contained within the financial statements in this half year report has not been audited or reviewed by the Company's auditors.

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.       Accounting policies

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.

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.

The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 28th February 2021.

3.       Return/(loss) per share

4.       Dividends paid

A third interim dividend of 1.00p per share, amounting to £2,174,000 has been declared payable on 29th November 2021 in respect of the year ending 28th February 2022.

5.       Net asset value per share

JPMORGAN FUNDS LIMITED

16th November 2021

For further information, please contact:

Alison Vincent

For and on behalf of

JPMorgan Funds Limited

020 7742 4000

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 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.