JPMorgan Global Core Real Assets Ltd on Wednesday said its loss narrowed in the first half of its current financial year, as the firm progresses its managed wind-down.
The investment firm with assets in global infrastructure, transportation and real estate said its pretax loss narrowed to £2.6 million during the six months that ended August 31, from £9.8 million the year before.
This was primarily due to its fair value loss on investments reducing to £6.6 million from £13.9 million last year.
Its net asset value per share on August 31 was 90.0 pence, down 5.6% year-on-year from 95.2p.
The firm declared two interim dividends during the six-month period that totalled 2.10p per share, unchanged from the year before. During its second half to date, it has also declared a third interim dividend of 1.05p per share.
Chair John Scott said: ‘We announced on November 5 that your board has taken the decision to liquidate the company. This followed many conversations with the company’s largest shareholders on the options available, leading the board to conclude that it was in the best interest of shareholders as a whole to put forward proposals for a managed wind-down of the company with a consequent return of capital.
‘This decision was not made lightly. Since inception in 2019, the company has faced challenging macroeconomic conditions, including inflation, leading to higher interest rates, and major disruptions to the sectors in which JPMorgan Global Core Real Assets invests.
‘We were also confronted by reduced market liquidity, a change in investor appetite for real assets and the widest cap for half a century between underlying asset values and share prices in the investment trust sector. These factors proved too challenging for JPMorgan Global Core Real Assets.’
It anticipates around 50% to 60% of the company’s portfolio to be liquidated by the end of the second quarter of financial 2025, with the remaining redemptions to be satisfied over the following twelve months. Redemption requests will be satisfied on a ‘best-efforts basis’, with no guarantee of the outlined timeline being achieved.
Shares in JPMorgan Global Core Real Assets were down 1.9% at 74.00p each in London on Wednesday afternoon.
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