Last checked at 5 Mar 2020 11:47
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL CORE REAL ASSETS LIMITED
NET ASSET VALUE AND UPDATE
Legal Entity Identifier: 549300D8JHZTH6GI8F97
JPMorgan Global Core Real Assets Limited ("JARA") announces the unaudited Net Asset Value ("NAV") as at 29th February 2020 of 96.58 pence, up from 95.50 pence as at 30th November 2019.
The total return was +1.9% over the period, inclusive of the 0.75 pence per share dividend paid to investors on 27th February 2020.
The positive performance of the NAV over the period was helped by income from the liquid portion of the portfolio along with the depreciation of Sterling versus the Dollar and Euro of circa. 0.8% and 1.0%, respectively. The MSCI World Net Total Return Index in GBP delivered -5.03% over the same period.
Fee Change: JARA has received notice from one of its committed funds that the management fees are being reduced. This should result in a 1 basis point reduction in the aggregated management fee at the JARA level. This will result in the below updated fee schedule,1 showing the expected management fee over a range of fund sizes.
· £100m: 0.97%
· £300m: 0.96%
· £500m: 0.90%
· £1bn: 0.86%.
JARA's currency exposures remain unhedged as set out in the prospectus. Committed capital awaiting drawdown into the underlying private strategies is held in USD money market instruments. To reiterate, there is no fee charged on uncalled capital held in cash or cash equivalent instruments.
Investment
Over the period and in line with the proposed portfolio as outlined in the prospectus, JARA invested into two liquid segregated mandates for circa. 20 per cent. of NAV and as per the announcement from 29th October 2019, 19.5 per cent. of NAV was drawn down into one of the underlying real estate strategies (as well as further top-up investments deploying capital raised from the issuance of shares at a premium to NAV), bringing JARA's current investment to near 40 per cent. The Company remains on track to have 80 per cent. of its proceeds invested within six months of launch, with all net initial proceeds invested within 12 months. We expect a further 20% capital call into one of the underlying strategies to take place in the next few weeks.
Once fully invested, the net proceeds of the Issue will be invested with the view of providing holders of the Ordinary Shares with stable income and capital appreciation through exposure to a globally diversified portfolio of Core Real Assets in accordance with the Company's investment policy. The Company is initially seeking 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 will have the primary responsibility for managing the Company's portfolio.
Income
Income generated from the underlying portfolio was 57 bps over the period, arising from its investment in cash equivalent instruments and the liquid strategies, along with the first distribution from one of the underlying private property strategies. JARA remains on course to deliver on its first year income target.
Issuance
During the period there were 40,138,090 new shares issued and the period ended with 200,802,887 shares in issue.
5th March 2020
Alison Vincent
JPMorgan Funds Limited - Company Secretary
Telephone 0207 742 4000
1 As a reminder the management fee charged on JARA will reflect the Company’s portfolio weightings, the NAV so of the underlying funds (which are denominated in USD), and the irrespective fee schedules. The above schedule is for illustrative purposes only and assumes an exchange rate of 1.28 GBP/USD (as of 29th February 2020)