JPMORGAN GLOBAL CORE REAL
ASSETS LIMITED
STRATEGIC INVESTMENT ALLOCATION
UPDATE
The information communicated
within this announcement is deemed to constitute inside information
as stipulated under the Market Abuse Regulations (EU) No 596/2014
which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. Upon publication of this announcement, this
inside information is now considered to be in the public
domain.
Legal Entity Identifier:
549300D8JHZTH6GI8F97
JPMorgan Global Core Real Assets
Limited ("JARA" or the "Company"), the diversified global
infrastructure, transportation and real estate investment company,
listed on the London Stock Exchange in September 2019. As the
Company's five-year anniversary approaches, the Company has taken
the opportunity to review its allocations to target sectors and
capital allocation, continuing a process which commenced in the
past financial year.
JARA provides diversified exposure
to the predictable, long term and non-correlated cash flows often
associated with Core Real Assets, through the JPMorgan Asset
Management ("JPMAM" or the "Investment Manager")
Platform.
JARA's portfolio exposures are
managed within the Company's investment restrictions, incorporating
strategic allocation priorities, liquidity conditions and available
investment opportunities. Following a recent review of these
exposures by the Board and the Investment Manager, it is proposed
that further adjustments be made to the portfolio's targeted
exposures following this year's Annual General Meeting ("AGM"),
with the objective of achieving an increase in allocations to the
higher income-generating real assets categories, such as
infrastructure, transport, and mezzanine debt. At the same time,
concurrent reductions will be seen in other exposures, such as
private real estate. The changes, which would not be expected to
introduce an enhanced level of risk to the portfolio, are designed
to improve the yield profile, whilst keeping a similar long-term
total return. The range for strategy allocation is expected
to remain unchanged.
The implementation timeline and
target exposures will be governed by various factors, including the
timing of redemption receipts from underlying investment vehicles,
market conditions, investment performance, and the number of shares
that the Company repurchases.
|
Strategy
|
Range for
Strategy
Allocation
(% of
Assets)**
|
Current
exposure
(% of NAV
as at
31 May
2024)
|
Target
exposure***
|
|
Global Infrastructure
Assets
|
10 - 30%
|
20.9%
|
24.5%
|
|
Global Transport Assets
|
10 - 30%
|
20.7%
|
24.5%
|
|
US Core Real Estate
|
20 - 50%
|
18.2%
|
12.5%
|
|
APAC Core Real Estate
|
15.8%
|
12.5%
|
|
Global Liquid Real Assets
|
0 - 30%
|
14.9%
|
15%
|
|
Other Real Assets*
|
0 - 30%
|
7.5%
|
10.0%
|
*Other real assets may include U.S.
real estate mezzanine debt and other real assets
strategies.
**The NAV percentage allocation
restriction for each real asset strategy does not take into account
indirect exposure to real asset strategies through the Company's
investment in global liquid real assets. The above table does not
take into account cash or cash equivalent, which has a 0 - 10%
range for strategy allocation, ~2% on 31 May 2024, and 1% in
the new target exposure.
***Target exposures are subject to
change and will be impacted by the factors outlined
above.
In addition, the Liquid Real Assets
Strategy exposure has been re-weighted towards infrastructure and
transport investments, thereby reducing the Company's exposure to
publicly listed REITs.
As part of the proposed
re-weightings, and subject to the requisite approval by the
Financial Conduct Authority and the Company's shareholders at the
AGM in September 2024, the Company plans to amend its investment
policy. This would adjust the current investment restriction
limiting investment (at the time of investment) in the securities
or other interests of any single company or other entity, from 20%
of the Company's Gross Asset Value to a maximum of 30% of the
Company's Gross Asset Value where the relevant entity is a Private
Fund managed or advised by JPMAM.
Furthermore, the Company is
cognisant of the benefits which buybacks can bring in terms of NAV
accretion, reduced discount volatility, provision of liquidity to
the secondary market and creating the potential for the discount to
narrow by changing the balance of demand and supply for the
Company's shares. The Board is pleased with the results of the
present buyback programme in respect of the period since the
Company's August 2023 AGM, where the Company has repurchased
11,887,814 shares (5.4% of the starting number of shares) resulting
in 1.3% accretion to the Company's NAV. The Company has therefore
determined that, in the event that the Company's shares continue to
trade on a material discount to NAV, it intends to continue to make
use of available liquidity to buy back shares, while also achieving
the portfolio's key sector exposures as outlined above.
25 June 2024
Emma Lamb
JPMorgan Funds Limited - Company
Secretary
invtrusts.cosec@jpmorgan.com
Telephone: 0800 20 40 20 (or +44 1268
44 44 70)
David Yovichic
Tom Skinner
Investec Bank plc -
Broker
Telephone: 020 7597 4000
Helen Tarbet / Henry
Wilson
Buchanan - Financial PR
JARA@buchanancomms.co.uk
Telephone: 020 7466 5111
Notes
The Company aims to provide holders
of the Ordinary Shares with a stable income and capital
appreciation, measured on a constant currency basis, through
exposure to a globally diversified portfolio of Core Real Assets in
accordance with the Company's investment policy. The Company
obtains exposure to Core Real Assets through various real asset
strategies, namely: Global Infrastructure, Global Real Estate,
Global Transport and Global Liquid Real Assets. J.P. Morgan's
Alternative Solutions Group has the primary responsibility for
managing the Company's portfolio.