LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN GLOBAL EMERGING MARKETS INCOME TRUST PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS

ENDED 31ST JANUARY 2025

Legal Entity Identifier: 549300OPJXU72JMCYU09

Information disclosed in accordance with the DTR 4.2.2

JPMorgan Global Emerging Markets Income Trust plc (the 'Company' or 'JEMI') announces its half year results for the six months period ended 31st January 2025. The full half year report and financial statements can be accessed via the Company's website at www.jpmglobalemergingmarketsincome.co.uk.  

Highlights

·    NAV total return of +5.9% compared with +4.9% for the MSCI Emerging Markets Index with net dividends reinvested (in sterling terms) (the 'Benchmark').  The total return to shareholders  was +3.4% reflecting a widening of the discount to net asset value ('NAV') from 10.5% as at 31st July 2024 to 12.9% as at 31st January 2025.

·    Outperformance (in NAV terms) was due to the Portfolio Manager's asset allocation decisions and share buybacks, which were accretive to the NAV of the remaining shares.

·    For five years cumulative ended 31st January 2025, NAV total return of +39.5% compared with +23.2% for the Benchmark. Total return to shareholders of +31.3%.

·    Two interim dividends of 1.0p per share were declared for the six months ended 31st January 2025. The first interim dividend was paid on 24th January 2025, and the second interim dividend will be paid on 22nd April 2025.

·    Buybacks in the six months ended 31st January 2025 of 9.4 million shares at a cost of £12.7 million and an average discount of 12.8%, adding 1.8 pence per share to the NAV.

·    The Board has decided to introduce a five-year performance-based conditional tender offer with effect from 1st August 2025 (the 'Tender Offer').  The Tender Offer would be made to shareholders for up to 25% of the Company's issued share capital (excluding shares held in Treasury) at the time, at a price equal to a 2% discount to the prevailing NAV (less associated costs), in the event the Company's audited NAV total return does not exceed the total return of the Company's Benchmark on a cumulative basis over the five years from 1st August 2025.

Elisabeth Scott, Chair of the Company, commented:

"The Board shares the Portfolio Manager's ongoing enthusiasm for the many exciting investment opportunities offered by Emerging Markets, and the potential rewards remain significant, especially for those investors willing to take a long-term view and tolerate some volatility along the way."

"Investors always face some uncertainties, especially in Emerging Markets. Foremost among these at present are the risk of a debilitating global trade war triggered by widespread US tariffs, and the adverse implications this may have for the US's global trading relationships."

"The Board is reassured by the Investment Manager's long-term track record, which amply demonstrates the team's ability to navigate whatever challenges are thrown up by geopolitical, economic or financial market developments. The investment process is robust and resilient and is supported by the Investment Manager's deep and extensive Emerging Markets research resources".

Omar Negyal, Portfolio Manager of JEMI, commented:

"We remain excited by the many opportunities we see across Emerging Markets. Our focus has remained unchanged since the Company's inception: we seek out businesses that can produce attractive returns on equity, generate healthy free cash flow, and pay reliable dividends to shareholders. By identifying stocks with these characteristics, and buying them at appealing valuations, we have built a portfolio with both value and quality attributes, which gives shareholders an attractive yield while also providing them with the opportunity to participate in Emerging Markets growth."

CHAIR'S STATEMENT

Before I report on your Company's performance, I would like to begin my statement by taking the opportunity to thank our former Board colleague, Caroline Gulliver, who stepped down as a Director and Chair of the Audit & Risk Committee at the Company's last Annual General Meeting, for her wise counsel and significant contribution to the Company during her tenure. Ranjan Ramparia, who joined the Board in March 2024, has taken on the role of Chair of the Audit & Risk Committee.

Performance

I am pleased to report that the positive performance of both Emerging Markets and your Company, which began in the second half of the financial year ended 31st July 2024, continued over the six months ended 31st January 2025, and furthermore, that your Company outpaced its benchmark, the MSCI Emerging Markets Index with net dividends reinvested (in sterling terms) (the 'Benchmark') over this period. In the six months to 31st January 2025, your Company recorded a total return on net assets of +5.9%, outperforming the Benchmark return of +4.9%. The total return to shareholders (which includes both the share price return and dividends) was +3.4%, reflecting a widening of the discount to net asset value ('NAV') at which the Company's shares trade, from 10.5% as at 31st July 2024 to 12.9% as at 31st January 2025.

The Company's outperformance in NAV terms was due in part to the Portfolio Manager's asset allocation decisions, and the result of share buybacks undertaken to support the share price, as buybacks are accretive to the value of remaining shares. I discuss this in more detail further below. The table below provides a full breakdown of performance attribution.

Positive outright gains and outperformance such as we have seen over the past six months are, of course, always to be welcomed. However, the volatile nature of Emerging Markets, combined with the Investment Manager's long-term investment approach, means that it is more appropriate for shareholders to judge performance over longer time frames. On this basis, it is satisfying to note that the Company's NAV total return over the three- and five-year periods to end January 2025 and over longer periods has been significantly ahead of the Benchmark. Please see the full Half Year Report for long-term performance figures.

The Investment Manager's Report, which can be found below, reviews the market environment and the Company's performance over the reporting period in more detail and comments on the investment strategy and outlook for Emerging Markets. My key takeaways from Omar's report are the reversal of the relative performance of the Indian and Chinese equity markets: with China's economy stabilising and India suffering from a degree of over-optimism. This trend has helped the relative performance of the portfolio, although I note Omar's comments about the outperformance of stocks that are not held in the portfolio due to their lack of dividend payout. It is clear that Artificial Intelligence ('AI') is driving developments in Emerging Markets as it is in the rest of the world, and DeepSeek's demonstration that AI can be done more cheaply than had hitherto been thought possible, was an important milestone.

Continuation Vote

On behalf of the Board, I would like to extend my gratitude to all our shareholders for your unwavering support and participation in the Company's recent continuation vote. Your confidence in the Company and its strategy is invaluable. The positive outcome of the vote reaffirms our commitment to enhancing shareholder value and navigating the ever-evolving market landscape with diligence and foresight. We are excited to continue this journey together, and we remain dedicated to upholding the highest standards of governance and performance whilst doing so.

Revenue and Dividends

The Company's net revenue earnings for the six months to 31st January 2025 amounted to 1.48p per share (six months to 31st January 2024: 1.78p per share). Similar to prior years, the Company expects to earn the bulk of its dividend income during the second half of its financial year.

In the last financial year ended 31st July 2024, the Board paid a total dividend of 5.4p per share, a modest increase from 5.3p per share in 2023. This dividend was fully covered by income. During the six months ended 31st January 2025, the Board declared two interim dividends of 1.0p per share with respect to the current financial year ending 31st July 2025. This is consistent with dividend payments made over the same period last year. The first interim dividend was paid on 24th January 2025. The second interim dividend will be paid on 22nd April 2025 to shareholders on the register as at the close of business on 7th March 2025. The ex-dividend date was 6th March 2025. Two further interim dividend payments for the current financial year are expected to be paid in July and October 2025.

The Board reviews dividend receipts at each Board meeting, given their importance to the Company's strategy. The Board carefully considers the outlook for dividend receipts with the Portfolio Manager on a regular basis, including a sensitivity analysis of the impact of currency movements on revenue receipts. As shareholders are aware, the Company receives dividends in the currencies of developing countries and US dollars but pays dividends in sterling. It has not been the Company's policy to hedge currency risk as this is expensive and, for many currencies, impracticable. This policy inevitably means that the Company's asset values, and cash flows, may be damaged by adverse currency movements (if sterling strengthens) and flattered by favourable moves (if sterling weakens) relative to Emerging Market currencies and the US dollar.

Despite any such currency fluctuations, your Board and the Investment Manager are of the view that over the long term, Emerging Markets offer attractive income prospects alongside the prospects for strong earnings growth.

Gearing and Loan Facilities

The Board believes that gearing can be used to enhance long-term shareholder returns. Gearing levels are discussed with the Portfolio Manager at each Board meeting.

This gearing strategy is funded by the Company's debt facilities. During the period, the Company repaid its US$20 million two-year revolving loan facility with Mizuho Bank Limited ('Mizuho'), which matured in November 2024. It also made early repayment of its US$20 million two-year revolving loan facility with ING Bank ('ING'). As I reported in my previous statement, the Company negotiated a US$40 million revolving credit facility, along with flexibility to borrow an additional US$20 million, provided by Industrial and Commercial Bank of China Limited (London) Plc ('ICBC') for two years, maturing in November 2026, with two one-year extension options.

While borrowing costs may be a concern to some shareholders, it is essential to recognise the strategic benefits that gearing can offer, particularly for an income-focused investment trust. By leveraging the Company's investment capacity through gearing, the Investment Manager is able to access a broader range of income-generating opportunities that have the potential to enhance the portfolio's overall yield. This approach allows them to capitalise on investments that can deliver robust dividends, thereby supporting the Company's commitment to providing a steady and attractive income stream to shareholders. The cost of the Company's borrowing is expected to decline over time given its floating nature and the outlook for rate cuts by the Federal Reserve and Bank of England during the course of 2025 and beyond.

As at 31st January 2025, gearing stood at 7.2%, somewhat higher than the 6.1% level at 31st July 2024. This increase in gearing reflects the number of attractive investment opportunities currently available within the Company's investment universe.

Share Repurchases

Over the six months to 31st January 2025, the Company's share price traded at an average discount to NAV of 13.0%. The Board regularly considers the merits of buying back shares in order to manage the level and volatility of the discount. The Company will only buy back shares if doing so is considered to be in the best interests of shareholders.

The Company has been actively engaged with share buybacks, and during the reporting period, the Company repurchased 9,368,500 shares into Treasury at a weighted average discount of 12.8% and at a total cost of £12.7 million. It did not issue any shares. Such purchases underscore your Board's belief that there is attractive value in the investments held by the Company. At this level of discount, they are value accretive for shareholders, and share buybacks increased the NAV per share by 1.8 pence during the review period. All shares repurchased are held in Treasury rather than cancelled so that they may be reissued at a premium to NAV at a later date.

At the time of writing, the discount stands at 12.2%¹. The Board will continue to actively manage the Company's discount in support of its commitment to seek a narrower discount over the short-term whilst ultimately seeking a premium over the longer-term. In the period since the end of the half year and 3rd April 2025, the Company has repurchased an additional 4,075,000 shares into Treasury.

¹     As at 2nd April 2025.

Introduction of Conditional Tender Mechanism

As referenced above, the Board has an active approach to the management of the discount to NAV at which the Company's shares trade. Furthermore, the Board is also aware of the challenges that are facing the Investment Trust sector, and the increasing number of additional mechanisms, including tenders and other forms of redemptions, being offered to shareholders to assist with discount management.

In view of the Board's commitment to shareholders and to upholding the highest standards of governance, the Board has determined that now is the right time to implement a five-year performance-based conditional tender offer with effect from 1st August 2025 (the "Tender Offer"). This would provide shareholders with the opportunity to redeem a portion of their shares at a price close to the NAV, contingent upon the Company's performance over the five year period.

The Tender Offer would be made to shareholders for up to 25% of the Company's issued share capital (excluding shares held in Treasury) at the time, at a price equal to a 2% discount to the prevailing NAV (less the associated costs), in the event that the Company's audited NAV total return does not exceed the total return of the Company's Benchmark on a cumulative basis over the five years from 1st August 2025.

The Tender Offer is contingent on the Company having the required shareholder approval at the relevant time, and also on the passing of the Company's existing three-year continuation vote at its Annual General Meetings in 2027 and 2030. It should be noted that the Company successfully passed its recent continuation vote at the 2024 Annual General Meeting with 99.5% of votes cast in favour.

It should be noted that the Company has outperformed the Benchmark over the longer-term, as referenced in the full Half Year Report. The introduction of the Tender Offer will not change the Board's current approach to discount management. It will also not impact the Investment Manager's investment process, strategy and management of the portfolio.

Investment Team

As previously announced, Isaac Thong, a portfolio manager for the Company since 2020, has resigned from JPMorgan Asset Management. Omar Negyal, who has managed the portfolio since 2012 and became the lead portfolio manager in 2014, will continue to manage the assets of the Company, supported by the Investment Manager's extensive team of analysts across Global Emerging Markets. Recruitment efforts to replace Isaac are under way, with JPMorgan Asset Management looking both internally and externally for suitable candidates, and an update will be given later in the year.

We would like to thank Isaac for his contribution to the management of the Company's assets and wish him the very best in his future endeavours.

Environmental, Social and Governance Factors

The Investment Manager incorporates Environmental, Social and Governance ('ESG') considerations into its investment process, as these factors may have a financially material impact on a company's ability to deliver shareholder value. Your Board shares the Investment Manager's belief in the importance of ESG factors for long-term investments and supports the Portfolio Manager's efforts to maintain continuous engagement with investee companies.

The Investment Manager's Investment Stewardship Priorities, which may be of interest to shareholders, can be found at: https://am.jpmorgan.com/gb/en/asset-management/adv/about-us/investment-stewardship/

Stay Informed

The Board would like to ensure that all shareholders are kept well-informed, and we would like to encourage those who have not already done so to consider signing up for our email updates, which include 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://tinyurl.com/JEMI-Sign-Up.  

Outlook

The Board shares the Portfolio Manager's ongoing enthusiasm for the many exciting investment opportunities offered by Emerging Markets, and the potential rewards remain significant, especially for those investors willing to take a long-term view and tolerate some volatility along the way. There are many good reasons to be positive. In addition to the strong long-term growth prospects of Emerging Market economies, their favourable demographics and the innovative, entrepreneurial nature of many businesses, there is huge potential for the AI revolution to support tech and other AI-related stocks across all markets, including Emerging Markets, over the foreseeable future. Other sectors are likely to benefit from the productivity gains AI promises to deliver over the longer term. India, one of the largest and most vibrant Emerging Markets, is now looking more attractive after its recent pull back. In China, there are finally signs of improvement in investor sentiment thanks in part to the authorities' efforts to stabilise the property sector and support consumer demand. In addition, valuations of Chinese stocks are attractive, shareholder returns are improving, and the early success of DeepSeek is also bolstering confidence in this market.

Investors always face some uncertainties, especially in Emerging Markets. Foremost among these at present are the risk of a debilitating global trade war triggered by widespread US tariffs, and the adverse implications this may have for the US's global trading relationships. The Trump administration's policies may also exert upward pressure on US inflation, potentially strengthening the US dollar, and this could tighten financial conditions in Emerging Markets (although any appreciation in the US dollar or Emerging Markets currencies would support portfolio income).

Despite these and other unforeseen risks, the Board is reassured by the Portfolio Manager's long-term track record, which amply demonstrates the team's ability to navigate whatever challenges are thrown up by geopolitical, economic or financial market developments. Their investment process is robust and resilient, and is supported by the Investment Manager's deep and extensive Emerging Markets research resources. All this leaves my fellow directors and I confident in your Company's ability to continue providing shareholders with exposure to the many and varied opportunities offered by Emerging Markets, while also building on its track record of delivering attractive long-term returns and dividend income to shareholders.

On behalf of the Board, I would like to thank you for your ongoing support and commitment to the Company.

Elisabeth Scott

Chair                                                                                                                                                    3rd April 2025

INVESTMENT MANAGER'S REPORT

Introduction

For the six month period ended 31st January 2025, the Company's total return on net assets, including dividends, was +5.9%. This compares favourably with our Benchmark, with dividends reinvested, which returned +4.9%. The return to shareholders, including dividends, was +3.4%. Over the three-, five-, and ten-year periods ended 31st January 2025, the Company made annualised returns of +3.3%, +6.9% and +6.8% respectively in NAV terms, comfortably ahead of corresponding Benchmark annualised returns of +1.9%, +4.3% and +5.7%. As highlighted in the full Half Year Report, cumulative returns have been positive and higher than the Benchmark over the long term.

Investment environment

Emerging Markets provided a positive return over the review period, helped by a recovery in Chinese equities.

This positive return occurred despite the risk of US tariffs being implemented following the US elections and concerns that they would trigger a damaging global trade war. The US President, Donald Trump, has already imposed a variety of tariffs, including a 20% tariff on Chinese goods and a 25% tariff on all steel and aluminium imports, which will impact Brazil, Mexico and South Korea - several of the largest suppliers of steel and aluminium to the US. The new Trump administration has also announced further 25% tariffs on Mexico and Canada. However, at the time of writing, the US policy around tariffs is fast changing and therefore the longer term impacts are more difficult to predict. China has already imposed a mix of retaliatory measures, including counter tariffs, and countries, including the European Union, have responded with their own tariff measures.

Despite persistent trade tensions between China and the US, Chinese equities made gains in the past six months. Investors welcomed a broad and co-ordinated stimulus package implemented by the People's Bank of China and the Politburo during the autumn, and the promise of fiscal stimulus to come, in the hope that these measures would address structural issues within the property sector and boost weak consumer demand. Market sentiment was further bolstered by the launch of Chinese artificial intelligence ('AI') company DeepSeek, which appears to offer a viable and cheaper alternative to Large language models ('LLM's') developed by western companies. This boosted the Chinese equity market, with particularly improving sentiment towards the more growth-oriented stocks.

Another significant development in Emerging Markets over the past six months has been the weakness of the Indian market. The Indian economy has been growing rapidly, fuelling extreme optimism about the prospects for locally-based businesses. This has driven very significant gains in Indian stock indices in recent years. However, expectations began to run ahead of reality, especially when the pace of economic growth showed signs of slowing, and in recent months the market has experienced a modest correction as investors reset their estimates for growth and earnings to more realistic levels.

The past six months saw continued focus on AI across all major markets. Companies will need to invest in AI-related capex to stay competitive and take full advantage of the commercial potential of this new technology. The main beneficiaries of such expenditure include semiconductor manufacturers and tech companies, and these stocks remained key drivers for markets over the review period. Within Emerging Markets, this influence was most important in Korea and Taiwan. However, the launch of DeepSeek, which was meaningfully cheaper to develop and train, gave investors pause as they considered its potential long-term impact on the global market for AI-powered tools and products.

Performance attribution

for the six months ended 31st January 2025

Source: JPMAM and Morningstar. All figures are on a total return basis.

Performance attribution analyses how the Company achieved its recorded performance relative to its Benchmark.

Performance drivers

If we consider the portfolio from a country perspective, the largest contributor to relative performance in the period was India (both the portfolio's underweight to the market as well as stock selection). Our underweight positioning was motivated by our concerns that valuations were at extreme levels, despite the country's strong growth outlook. It remained difficult to find Indian stocks offering an attractive yield, and therefore we typically found better value opportunities elsewhere. This strategy paid off in the past six months as the market corrected. Strong Indian stock selection also added to returns over the period.

An overweight to Thailand also contributed, thanks mainly to our investments in Thai financials, notably our positions in SCB X and Tisco Financial. Although the country faces some long-term secular challenges, Thai banks trade on low valuations, and could benefit from the potential for credit cost normalisation. Shareholder returns are also improving, thanks to higher dividend payouts and share buybacks - a trend gathering momentum across Asia. These factors supported Thai financials over the period, as the risk reward outcome began to skew to the upside.

Lastly, our overweight exposure to Taiwan added to returns. Taiwanese semiconductor manufacturers and related tech businesses are benefiting from an increase in demand as businesses build out their AI capabilities. Our investments in companies such as ASE Technology and Accton Technology performed well over the period.

On the negative side, stock selection within China detracted in the six month period. We have discussed previously that since 2020 we have been increasingly interested in China due to a combination of lower valuations and increasing moves by companies to be more shareholder friendly (including paying more dividends). This led us to move overweight in China during 2024. This was a positive move to make but in the six month period, performance was negatively impacted as the portfolio's China stocks rose relatively less than the market. Although we saw strong performance from stocks such as Fuyao Glass Industry and China Merchants Bank, our lack of ownership in Xiaomi and Meituan acted as a drag as they performed well. We note neither of these stocks pay dividends and hence do not fit our investment strategy.

Our overweight in South Korea also detracted from returns, in part due to recent dramatic political developments in the country - though the political situation now looks calmer once again. However, we think the outlook for South Korea is still favourable, as the arrest of President Yoon after his declaration of martial law is a clear signal that the judicial system is sufficiently robust to enforce the rule of law and ensure political and social stability. There were also some stock specific concerns with portfolio holdings such as Samsung Electronics as investors worried about its competitive advantage in memory semiconductor production. Here we remain optimistic about the company's prospects and think valuations look supportive. Samsung's announcement of a share buyback scheme is also good news for investors.

The most significant contributor to performance at the stock level was our holding in Fuyao Glass Industry. This Chinese company is one of the world's largest auto glass manufacturers, and enjoys superior profitability versus its peers, thanks to its manufacturing excellence and its heavy investment in R&D. The business has performed well, delivering on its investment thesis, and we are upbeat about its prospects. Demand for electric vehicles (EVs) is increasing (which drives higher glass content in cars) and Fuyao's competitive advantages are enabling it to grow its market share.

The second largest contributor to performance at the stock level was our decision not to own Reliance Industries. This Indian conglomerate's multiple business lines include oil and energy, retail, telecommunications, and media. Although Reliance's outlook is constructive, with multiple avenues for growth, the stock had simply become too expensive, and underperformed accordingly. Aside from its excessive valuation, our decision not to hold this name is also driven by the fact that it does not fit with our investment strategy, as it does not pay sufficient dividends.

China Merchants Bank was another outperformer that enhanced relative returns over the period. The stock had been experiencing muted performance due to concerns about the adverse impact of slow Chinese growth on the country's banks. However, it recovered in response to the government's recent stimulus measures. We took the opportunity provided by this rebound to trim our position, bearing in mind that returns on equity across Chinese banks are likely to be structurally lower than in the past.

Our positions in two Thai financial names - SCB X and Tisco Financial - also added to relative returns. SCB is one of Thailand's largest banks, while Tisco is a small financial institution focused on auto finance. Both have experienced some operating challenges, but we believe their risk/reward outlook is favourable. In our view, their valuations reflected most downside risks, and when these risks began to subside, and sentiment regarding the sector began to improve, both businesses performed well.

The most significant detractor to relative performance at the stock level in the past six months was our decision not to own Xiaomi. This Chinese company is one of the world's top smartphone brands. It also sells other consumer electronic goods, and has ventured into the EV business. As with Reliance, our decision not to hold this stock is based on Xiaomi's dividend policy (up till now it has not paid any dividends). However, the stock performed well following continued growth in earnings and early success in the EV market.

An overweight to Walmart de Mexico, a food, clothing and general merchandise retailer, also hurt performance. The company's share price declined following a slowdown in consumption spending in Mexico, as government financial aid to low-income consumers decreased after the country's June 2024 elections. However, we have retained our position, as the stock is attractively priced and is a solid compounder.

An underweight in China's internet retailer Alibaba also detracted. The stock rallied as investor sentiment towards Chinese AI beneficiaries improved after the release of DeepSeek. In addition, Alibaba announced a successful upgrade to its own LLM, based on DeepSeek. In hindsight, we were too slow to increase our position size, and thus experienced some opportunity cost by being underweight when the stock experienced its recent rebound.

Our decision not to hold another Chinese internet stock, Meituan, again due to its failure to pay dividends, also hurt performance. This stock did well during the period, supported by its market leadership in food delivery, in-store services, and on-demand retail delivery.

Lastly, our holding in Taiwan's Vanguard International Semiconductor came under protracted pressure during the past six months, following the announcement of a large, multi-year investment plan which will take time to boost performance. Furthermore, demand for Vanguard's core product weakened due to its links to the auto industry cycle. However, the stock is now attractive on a valuations basis, and we expect demand to eventually recover, so we retain our position.

Portfolio positioning and changes

We build the portfolio on a bottom-up basis, selecting stocks based on their sound fundamental qualities, strong balance sheets and capacity to pay dividends over the long term. Naturally, some areas within Emerging Markets offer more investment opportunities than others, and this results in tilts within the portfolio towards some sectors and countries. From a sectoral viewpoint, we tend to find the most attractive income opportunities within Information Technology, Consumer Staples and Financials, so these are the portfolio's three key sector overweights, while historically, the portfolio is usually underweight in Basic Materials, Industrials, and Healthcare.

At the country level, significant portfolio overweights include Indonesia, Mexico, and South Korea. As with our sector allocations, these country weightings are driven by the many individual stock opportunities which we view as attractive from an income investor's perspective. In contrast, our largest country underweight is India. India's long-term growth prospects are very good and investor interest in this market is high. However, as mentioned above, this is reflected in valuations, which makes it difficult for us to find attractive income paying stocks.

For China we think stock selection should be the key driver from here. From an overall viewpoint, China still faces some challenges, including weak consumer demand, a stricken property market and a fractious relationship with the US, as discussed above. But we also see many stocks looking more attractive from a valuation viewpoint and in many cases shareholder returns are rising up management teams' priority lists, clearly something that we see positively.

The portfolio changes we have implemented over the past six months have mainly been motivated by individual stock considerations. One to highlight in China was our initiation of a position in Alibaba, the Chinese internet company. This, along with our purchase of Tencent earlier in 2024, represented a symbolic moment for the portfolio as we had never owned these Chinese internet stocks in the past. The severe valuation derating we had seen over many years led us to think the stock looked more attractive. We also thought management initiatives on e-commerce in particular looked positive, while shareholder return activity was clearly positive (both dividends and buybacks). Therefore, we bought a position early in the review period. The stock has performed particularly well since then. Moving forward, we will continue to assess the position size based on our views on the fundamentals and valuation.

We also purchased National Bank of Greece, as we like its fundamental turnaround story. More than a decade after the sovereign debt crisis which hit Greece so badly, the country's banks have finally completed the process of repairing their balance sheets. National Bank of Greece is one of Greece's highest quality banks, with a large deposit base and best in class capital ratios, which provides ample room for higher dividend payments down the line (having restarted dividends in 2024).

In addition, we took advantage of better valuations to add to several existing positions across markets and sectors. Examples include HDFC Bank, the largest private sector bank in India, and Walmart de Mexico. Conversely, we trimmed positions where we thought valuations were beginning to look more stretched after relatively strong performance, for instance Infosys, one of India's top three IT services' exporters. This business remains an interesting investment given the long-term prospects for outsourcing business processes and software development. However, we recognise that the stock's performance has reduced its yield and inflated valuations, so we want to manage the position size. We are also monitoring the potentially adverse impact of AI on Infosys's business model.

One notable disposal over the past year was the closure of our position in Accton Technology, a Taiwanese communications equipment supplier. This business has done well over the years, consistent with our expectations, and following recent good performance we decided to take profits and rotate into more attractive opportunities elsewhere.

Environmental, social and governance issues

We believe that sound environmental, social and governance ('ESG') practices are extremely important to the resilience of business models, and we welcome signs that more Emerging Market companies are explicitly recognising this and improving their practices accordingly. Financially material ESG considerations are therefore integral to our investment process.

We place particular emphasis on governance, and we draw a direct link between a company's dividend policy and the quality of its governance. In our view, a company's willingness to return cash to shareholders is a tangible and positive governance indicator. We have engaged with many companies on this issue over time, to understand their motivations and capital allocation objectives. We also discuss the magnitude of returns to shareholders and the rationale behind any split between dividends and buybacks.

Dividends

Our portfolio companies continue to pay dividends in line with our expectations; the nature of dividend payment timing means that the bulk of annual dividends will come through in the second half of the financial year. In terms of issues which will broadly affect dividend delivery, recent developments around tariffs will likely introduce more friction into global trade with consequences for growth and cash flow for companies.

As a reminder, the Company receives dividends from portfolio companies in local currencies and pays out dividends in pound sterling. Currency movements therefore have an impact on revenue receipts year-on-year. All else being equal, a falling pound increases revenue receipts from Emerging Markets, and vice versa.

Outlook

As ever, we expect Emerging Markets to be subject to multiple influences, both positive and negative. Key amongst these over the coming year will be the possible consequences of the Trump administration's policies. Perhaps most importantly, US tariffs would act as a headwind to the outlook for Emerging Markets. In addition, Trump's pro-US growth stance could put upwards pressure on US inflation and support the dollar, which would tighten financial conditions in Emerging Markets. On the other hand, key Emerging Markets central banks have already begun to ease monetary policy and any softening in US inflation could lead to further cuts from the US Federal Reserve, which would provide a supportive environment for Emerging Markets equities.

From a sector perspective, the arrival of DeepSeek has raised some concerns about the sustainability of AI-related capital expenditure as it raises the prospects of lesser spending being required to achieve positive results. The major US AI infrastructure spenders such as Meta and Google have continued to forge ahead with their capex plans, but investors continue to wonder about the magnitude of return on these investments. This has implications across the technology sector and is a key area of analysis within our team.

At the country level, the outlook for China remains mixed. September's policy announcements suggest policymakers seem to be doing enough to prevent a further serious deterioration in the property sector and consumer sentiment. However, monetary policy remains tight, and the follow-through on promised fiscal stimulus has so far disappointed markets. On the other hand, idiosyncratic stories such as China's burgeoning capabilities in AI and technology are supporting parts of the economy. In addition, valuations of many stocks look attractive and shareholder returns are improving thanks to increased dividend payouts and share buybacks. In India, the market's unique structural growth outlook remains compelling. With nominal growth slowing and earnings expectations being downgraded, associated stock price declines may provide opportunities to buy interesting companies at more reasonable valuations.

Ultimately, we build the portfolio from the bottom up, and we remain excited by the many opportunities we see across Emerging Markets. Our focus has remained unchanged since the Company's inception: we seek out businesses that can produce attractive returns on equity, generate healthy free cash flow, and pay reliable dividends to shareholders. By identifying stocks with these characteristics, and buying them at appealing valuations, we have built a portfolio with both value and quality attributes, which gives shareholders an attractive yield while also providing them with the opportunity to participate in Emerging Markets growth.

For and on behalf of

JPMorgan Asset Management

Investment Manager

Omar Negyal

Portfolio Manager                                                                                                                             3rd April 2025

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its interim report.

Principal Risks and Uncertainties

The principal risk and uncertainties, and emerging risks faced by the Company have not changed from those reported in the Annual Report and Financial Statements for the year ended 31st July 2024 and fall into the following broad categories: investment; strategy; financial; operational and cybercrime; accounting, legal and regulatory; political and economic; and environmental, social and governance.

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. Details of related party transactions are contained within the 2024 Annual Report and Financial Statements.

Going Concern

The Directors believe, having considered the Company's investment objective, risk management policies, capital management policies and procedures, nature of the portfolio, including an analysis of the portfolio's liquidity, and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and, more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least 12 months from the date of the approval of this half yearly financial report.

In reaching that view, the Board was mindful of the economic outlook and geopolitical landscape, and the longer term impact this may have on the global economy, including Emerging Markets and the sectors in which the Company operates.

The Directors have also reviewed the Company's compliance with its debt covenants. In addition, the Board noted the full support from 99.5% of voting shareholders for the continuation vote at the Company's Annual General Meeting held in November 2024. For these reasons, they consider it reasonable to continue to adopt the going concern basis in preparing the financial statements.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i)    the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with FRS 104 'Interim Financial Reports' and gives a true and fair view of the state of the affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at 31st January 2025, as required by the Disclosure Guidance and Transparency Rules ('DTR') 4.2.4R; and

(ii)   the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the 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;

•      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

Elisabeth Scott

Chair                                                                                                                                                 3rd April 2025

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

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.

The net return after taxation represents the profit or loss for the period and also the total comprehensive income.

CONDENSED STATEMENT OF CHANGES IN EQUITY

¹     These reserves form the distributable reserve of the Company and may be used to fund distributions to investors.

CONDENSED STATEMENT OF FINANCIAL POSITION

¹      For the period ended 31st January 2024 and year ended 31st July 2024, the 'Cash and cash equivalents' line item in the Statement of Financial Position has been revised to 'Cash at bank' and 'Current asset investments.' In accordance with the statutory format required by the Companies Act 2006, this revision separately reports holdings in the JPMorgan USD Liquidity Fund, a money market fund, as 'Current asset investments'. This adjustment does not affect any other line items in the Statement of Financial Position or the total current assets.

CONDENSED STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

For the six months ended 31st January 2025.

The Company is a listed public limited company incorporated in England and Wales. The registered office is detailed in the full half year report.

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 auditor.    

The figures and financial information for the year ended 31st July 2024 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and included the report of the 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 under the historical cost convention, modified to include fixed asset investments at fair value, and in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the Association of Investment Companies in July 2022.

FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015, and updated in March 2018, has been applied in preparing this condensed set of financial statements for the six months ended 31st January 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 July 2024.

3.  Return/(loss) per share

4.  Dividends paid and declared

All dividends paid and declared in the six months period to 31st January 2025 have been funded from the revenue reserve. All dividends paid for the previous periods ended 31st January 2024 and 31st July 2024 were funded from the revenue reserve.

A second interim dividend of 1.00p per share, amounting to £2,790,000 has been declared and will be paid on 22nd April 2025 to shareholders on the register on the record date of 7th March 2025 in respect of the year ending 31st July 2025.

5. Net asset value per share

6.  Fair valuation of investments

The fair value hierarchy disclosures required by FRS 102 are given below:

¹     The Level 3 investments relates to the Company's holdings in the Russian stocks as listed in the full Half Year Report, which have been valued at nil as at 31st January 2025.

¹     The Level 3 investment relates to the Company's holdings in the Russian stocks, as listed in the full Half Year Report.

As at 31st January 2025, the Company's holdings in the Russian stocks have been written down to nil due to the prolonged conflict with Ukraine and the sanctions imposed on Russia since 25th February 2022. For the previous periods ended 31st January 2024 and 31st July 2024, the fair value of these stocks was determined by taking the close of day market price as at 25th February 2022 (i.e. when the market was still trading normally) and applying a 99% reduction to the valuation.

7.  Analysis of changes in net debt

1    JPMorgan USD Liquidity Fund, a AAA rated money market fund which seeks to achieve a return in line with prevailing money market rates whilst aiming to preserve capital consistent with such rates and to maintain a high degree of liquidity.

2    Other non-cash charges include foreign exchange movements and amortisation adjustment.

JPMORGAN FUNDS LIMITED

4th April 2025

For further information, please contact:

Emma Lamb

For and on behalf of

JPMorgan Funds Limited

Telephone: 0800 20 40 20 or 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 report will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

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