Annual Financial Report

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN GLOBAL EMERGING MARKETS INCOME TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 31ST JULY 2024

Legal Entity Identifier: 549300OPJXU72JMCYU09

Information disclosed in accordance with the DTR 4.1.3

JPMorgan Global Emerging Markets Income Trust plc (the 'Company' or 'JEMI') announces its financial results for the year ended 31st July 2024.

Highlights:

·    Net asset total return of +6.3% for the financial year, closely aligning with the Benchmark* total return of +6.4%.  Share price return to shareholders, including dividends, was +5.4%.

·    The five year NAV total return to 31st July 2024 was +25.3%, ahead of the Benchmark total return of +12.7%. Share price return to shareholders, including dividends, was +15.5%.

·      The total dividend for the financial year was 5.4p per share, representing a yield of 4% based on the share price as at 31 July 2024, and a modest increase from 5.3p in the previous year. The Company has paid three interim dividends of 1.0p per share and a fourth interim dividend of 2.4p per share.

·      During the financial year, the Company repurchased 6,799,472 shares into Treasury, enhancing the NAV per share by approximately 1.1p or 0.8%.

Elisabeth Scott, Chair of the Board, commented: "The Board sees a host of reasons to share the Portfolio Managers' excitement about the many investment opportunities available in Emerging Markets. The Artificial Intelligence ('AI') revolution is likely to provide ongoing support for many Emerging Market technology and other AI-related stocks for the foreseeable future. In the Board's view, the potential rewards from Emerging Market investment are significant, especially for those investors willing to take a long-term view and tolerate a degree of volatility along the way. We remain confident that the focused and disciplined stock selection process adopted by the Investment Manager will maintain the Company's long track record of delivering attractive long-term returns and dividend income to shareholders."

Omar Negyal and Isaac Thong, Portfolio Managers, noted: "Like their counterparts in developed markets, the attention of investors in Emerging Markets over the past year has been focused on AI and its potential to disrupt and reshape business practices in many sectors. Companies will need to increase capital expenditure to acquire and deploy new AI-driven technology and to stay competitive. Given our bottom-up approach to building the portfolio, we remain excited by the many opportunities we see across Emerging Markets. Our principal focus is the same as it has been since the inception of the Company: we seek out companies able to produce attractive returns on equity, generate healthy free cash flow and pay shareholders reliable dividends."

*the Company's benchmark is the MSCI Emerging Markets Index with net dividends reinvested (in sterling terms).

CHAIR'S STATEMENT

Performance

I am pleased to report that the performance of both Emerging Markets and your Company improved in the second half of the financial year ended 31st July 2024. After declining by 5.0% over the first half of the financial year, the Company's benchmark index, the MSCI Emerging Markets Index with net dividends reinvested (in sterling terms) (the 'Benchmark'), ended the year +6.4%, narrowly ahead of the Company's total return on net assets of +6.3% over the same period. The total return to shareholders (which includes both the share price return and dividends) was +5.4%, which reflects a widening of the discount to net asset value ('NAV') at which the Company's shares trade, from 9.3% at the end of the previous financial year end, to 10.5% at the end of July 2024.

Excitement about artificial intelligence ('AI') was one of the main drivers of global equities, including Emerging Markets, over the past year, and your Company's returns were supported by the positive performance of a number of AI-related positions in South Korea and Taiwan. The ongoing weakness in the Chinese economy was another focus, and the decision not to own one of the largest Chinese internet retailers (Alibaba) also enhanced relative returns. The Indian market continued to strengthen, so the Company's underweight position in this market detracted from overall performance. This underweight is due in part to the fact that many Indian companies do not pay dividends and are therefore excluded from the Portfolio Managers' universe of stocks. In addition, the Portfolio Managers believe that valuations in the Indian market are high, so companies that do pay dividends are too expensive to meet the Investment Manager's valuation criteria. See the performance attribution table below for details.

The Investment Manager's Report, which can be found in the full Annual Report, 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.

The Company's positive, near-benchmark return over the past year is certainly welcome. However, given the volatile nature of Emerging Markets, the Portfolio Managers adopt a long-term approach, so it is more meaningful to consider returns over longer time frames. I am pleased to note that the Company's NAV total return on net assets over periods of three and five years and beyond is significantly ahead of the Benchmark - testament to the skill and experience of the Portfolio Managers, and the breadth and quality of the support from the Investment Manager's extensive global Emerging Markets research team. Please see the full Annual Report for the long-term performance figures.

Revenue and Dividends

The Company's gross revenue for the year amounted to £21.2 million (2023: £20.8 million), with net revenue of £16.6 million (2023: £16.9 million). Net revenue return per ordinary share for the year, calculated on the average number of shares in issue, was 5.64p (2023: 5.70p).

During the financial year, the Board paid three interim dividends of 1.0p per share and on 5th September 2024 it declared the payment of a fourth interim dividend of 2.4p per share, which was paid on 18th October 2024. This brings the total dividend for the financial year to 5.4p per share, a modest increase from the previous year (2023: 5.3p per share).

The Board pays four interim dividends each year, reflecting the support we have received from shareholders for a regular and timely income stream. We are seeking shareholder authority to maintain this dividend payment policy at the forthcoming Annual General Meeting.

The Board reviews dividend receipts at each of its meetings, given their importance to the Company. The Board carefully considers the outlook for dividend receipts with the Portfolio Managers 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 in 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 adversely affected in any given period by adverse currency movements (if sterling strengthens), and flattered by favourable moves (if sterling weakens) relative to Emerging Market currencies and the US dollar. Your Board and the Investment Manager are of the view that despite any such currency fluctuations, Emerging Markets offer attractive income prospects, as well as the prospect of strong earnings growth.

Loan Facilities and Gearing

The Board believes that gearing can be used to enhance long-term shareholder returns. Gearing levels are discussed with the Portfolio Managers at each Board meeting. Presently, the Company has a US Dollar 20 million two-year revolving loan facility with Mizuho Bank Limited ('Mizuho'), which will be repaid in November 2024. The Company also maintains a US Dollar 20 million revolving loan facility with ING Bank ('ING'), which is repayable in October 2025, having been renewed during the reporting period at a competitive market rate plus Secured Overnight Financing Rate ('SOFR').

In view of the pending maturity of the Mizuho facility, your Board has been working closely with the Manager to assess the Company's borrowing options. I am pleased to report that the Company has negotiated a US Dollar 40 million revolving credit facility, along with an additional US Dollar 20 million accordion, provided by Industrial and Commercial Bank of China Limited (London) Plc ('ICBC') for two years, with two one year extension options. As part of this refinancing, the Company intends to make an early repayment of the ING facility as well as repaying the Mizuho facility upon maturity in November 2024.

As at 31st July 2024, portfolio gearing stood at 6.1% (31st July 2023: 5.7%).

Share Repurchases and Issuance

During the financial year ended 31st July 2024, the Company's share price traded at an average discount to NAV of 11.8%. The Board regularly considers the merits of buying back shares to manage the level and volatility of the discount and will buy back shares if it is considered to be in the best interests of shareholders to do so. As shares are only bought back at a discount to the prevailing NAV, share buybacks benefit shareholders as they increase the NAV per share of the remaining outstanding shares.

During the financial year, the Company bought back 6,799,472 shares into Treasury for a total cost of £9,033,000 at an average discount of 11.7%. It did not issue any shares. These purchases were value accretive for shareholders, increasing the NAV per share by approximately 1.1p, and they underscore your Board's belief that the shares offer intrinsic value at current levels.

At the forthcoming Annual General Meeting, the Board will seek a renewal of shareholder authority to issue up to a further 10% of the Company's issued share capital and to buy back its own shares. It is the Board's intention to use the repurchase and allotment authorities to manage imbalances between the supply and demand of the Company's shares, thus reducing the volatility of the discount or premium, in normal market conditions, and meet demand for the Company's shares as and when they trade at an appropriate premium to NAV.

At the time of writing, the discount stands at 13.1%¹. The Board will continue to actively manage the Company's discount in its commitment to seek a stable discount or premium over the longer-term, in recognition of the Company's long-term consistent and strong investment performance, and with the aim of enhancing NAV for shareholders. Between the end of the financial year and 1st November 2024, the Company has bought back an additional 2,400,000 shares into Treasury.

¹     As at 30th October 2024.

Board Composition

As previously reported, Caroline Gulliver will be retiring from the Board at the 2024 Annual General Meeting and Ranjan Ramparia, who joined the Board on 1st March 2024, will take on the role of Chair of the Audit and Risk Committee. On behalf of the Board, I would like to thank Caroline for her extensive and important contribution to the Company over her tenure.

The Board supports the annual appointment/reappointment for all Directors, as recommended by the Association of Investment Companies Code of Corporate Governance, and therefore all Directors will stand for reappointment at the forthcoming AGM, with the exception of Ranjan Ramparia, who will stand for election for the first time, as this is the first Annual General Meeting to be held since her appointment, and Caroline Gulliver who is retiring from the Board.

Investment Management Fees

During the reporting period, as previously announced, the Board agreed with the Manager that the Company's investment management fees should be tiered.

With effect from 1st November 2023, the investment management fee has been charged on a tiered basis at an annual rate of 0.75% of the Company's net assets on the first £500 million and at 0.65% of net assets above that amount. This compared with the previous arrangement under which the management fee was charged at an annual rate of 0.75% on net assets. The fee is calculated and paid monthly.

Annual General Meeting

The Company's Annual General Meeting ('AGM') will be held at 60 Victoria Embankment, London EC4Y 0JP on Wednesday, 27th November 2024 at 2.00 p.m. Full details of the format and explanations of the business proposed at the AGM can be found in the Notice of Meeting in the full Annual Report.

We are delighted to invite shareholders to join us in person for the Company's AGM. However, those Shareholders wishing to follow the AGM proceedings without attending in person will be able to view them live and ask questions (but not vote) through conferencing software. Details on how to register, together with access details, will be available shortly on the Company's website at www.jpmglobalemergingmarketsincome.co.uk or by contacting the Company Secretary at [email protected].

As is best practice, all voting on the resolutions will be conducted on a poll. Shareholders who are unable to attend the AGM in person are strongly encouraged to submit their proxy votes in advance of the meeting, so that they are registered and recorded at the AGM. Proxy votes can be lodged in advance of the AGM either by post or electronically: detailed instructions are included in the Notes to the Notice of Meeting in the full Annual Report.

Shareholders are encouraged to send any questions ahead of the AGM to the Board via the Company Secretary at the email address above. We will endeavour to answer relevant questions at the meeting or via the Company's website. My fellow Board members, representatives of the Manager, the Portfolio Managers, and I, look forward to the opportunity to meet and speak with shareholders after the formalities of the meeting have been concluded. We would also welcome comments and questions from shareholders throughout the year - please use the same contact details as above.

If there are any changes to the above AGM arrangements, the Company will update shareholders through an announcement to the London Stock Exchange and on the Company's website.

Continuation Vote

In accordance with the Company's Articles of Association, at the forthcoming AGM an ordinary resolution will be put to shareholders that the Company continue in existence as an investment trust for a further three-year period.

The Board believes that the long-term outlook for global Emerging Markets is favourable, and that the Investment Manager has the resources and processes to deliver good results for shareholders, as evidenced by the Company's longer-term performance.

Accordingly, the Board believes that the continuation of the Company is in the best interests of all shareholders and strongly recommends that shareholders vote in favour of the resolution.

Stay Informed

The Board believes that it is important to keep shareholders well informed of developments within the Company. To this end, the Company delivers email updates with regular 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 or by scanning the QR code in the full Annual Report.

Outlook

The Board sees a host of reasons to share the Portfolio Managers' excitement about the many investment opportunities available in Emerging Markets. The AI revolution is likely to provide ongoing support for many Emerging Market technology and other AI-related stocks for the foreseeable future, while the increasing focus on raising shareholder returns should underpin share prices in South Korea and China, and in any other markets that come to see the merit in returning excess cash to shareholders. It is worth bearing in mind that while many investors are disappointed in China's recent performance, it is one of the world's fastest growing economies and this should translate into earnings and profits growth and higher dividend payments over the medium-term, which is expected to be assisted with the recent stimulus measures announced by the Chinese government. This, combined with more attractive valuations, is creating attractive investment opportunities. In the US, the recent start of the Federal Reserve's ('Fed') rate cutting cycle may provide fresh impetus to global markets, provided it does not turn out to be too little, too late to prevent a slowdown in US growth. Lower US rates will also create leeway for emerging market central banks to follow the Fed's lead and ease monetary policy, which will boost growth in their economies.

As ever, there are risks associated with investing in Emerging Markets, including political instability, currency fluctuations, and regulatory challenges. In coming months, the US Presidential election and its ramifications for Sino/US relations could provide further challenges. However, in the Board's view, the potential rewards from Emerging Market investment are significant, especially for those investors willing to take a long-term view and tolerate a degree of volatility along the way. We remain confident that the focused and disciplined stock selection process adopted by the Investment Manager will maintain the Company's long 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                                                                                                                                           1st November 2024

INVESTMENT MANAGER'S REPORT

Introduction

For the year ended 31st July 2024, the Company's total return on net assets, including dividends, was +6.3%. This compares with our Benchmark, with dividends reinvested, which returned +6.4%. The return on shares, including dividends, was +5.4%. Over the three-and five-year periods to end July 2024, the Company made annualised returns of +3.4% and +4.6% respectively in NAV terms, comfortably ahead of respective Benchmark returns of -0.1% and +2.4%. As highlighted in the full Annual Report, cumulative returns for the Company have been positive and higher than the Benchmark over the long term. The cumulative return on net assets over 10 years was +87.5% compared to +70.3% for the Benchmark.

Investment Environment

Like their counterparts in developed markets, the attention of investors in Emerging Markets over the past year has been focused on Artificial Intelligence ('AI') and its potential to disrupt and reshape business practices in many sectors. Companies will need to increase capital expenditure to acquire and deploy new AI-driven technology and to stay competitive. Semiconductor manufacturers and related tech companies are already benefiting from strong demand, and their resultant share price gains have been a key driver for all markets. Within Emerging Markets, this influence has been most important in South Korea and Taiwan, which are home to many companies with exposure to the AI boom.

The excitement about AI has spilled over into other sectors of the market such as energy and materials. AI-driven tools and their related storage and processing requirements are energy hungry, and electricity companies and energy infrastructure suppliers are perceived as major beneficiaries. So too are the producers of commodities such as copper, which is essential to the manufacture of semiconductors and energy transmission systems.

Shareholder returns have been another key theme in both South Korea and China over the past year. In South Korea, the government launched a so-called 'Value-Up' initiative, which aims to encourage corporate managers to enhance shareholder value via increased dividend payments and share buybacks. The intention is to replicate the success of similar efforts by the Tokyo Stock Exchange, which have had a favourable impact on Japanese share prices.

In China, we saw a brief rally going into 2024, inspired by short-term government stimulus and attractive valuations. However, structural issues remain, with ongoing weakness in the property sector continuing to weigh on consumer sentiment and hence on domestic demand, though the government has recently announced stimulus measures which could help improve this. As growth slows, investors' attention has shifted to more yield focused names. Additionally, companies, especially China's internet companies, are distributing more to shareholders, rather than reinvesting for growth. Geopolitical tensions between China and the US continue to simmer, creating a further potential drag on growth, especially via increased US sanctions and tariffs on Chinese electric vehicles and advanced tech products.

The other predominant theme in Emerging Markets over the past year was the ongoing interest in India. The economy continues to grow at a fast pace, and optimism in India's longer-term future is mounting amongst both domestic and international investors. This has resulted in further stock market gains.

Performance Attribution

for the year ended 31st July 2024

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

¹     Based on Country allocation.

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

Performance Drivers

The most significant positive contributor to performance at the stock level over the past year was our decision not to own Alibaba, a Chinese internet retailing behemoth. China's property market slump and the more general economic slowdown have put pressure on consumers. This has adversely impacted internet retailers. To add to pressures on Alibaba, the company is also facing greater competition, as consumers are increasingly focused on value for money. Interestingly, as the market has become more pessimistic on the stock, we have in contrast become more interested, to the extent that we initiated a new position for the portfolio after the financial year end. It seems to us that the management team has recognised its growth issues and is acting in a more rational way to increase its ability to compete in this new environment (both in terms of more focus on the key e-commerce business and reducing emphasis on other non-core activities). In addition, the company has improved its cash shareholder returns, initiating its inaugural dividend last year and implementing share buybacks. This increased shareholder return, combined with a lower valuation than in previous years, made the stock look more attractive to us and prompted the new position.

Vanguard International Semiconductor was a strong contributor to performance. This company operates semiconductor fabs, following the outsourcing foundry model where it manufactures chips for other companies who do not have a manufacturing capability. In the period, the company announced plans to expand capacity by building a new semiconductor plant, in a joint venture with NXP Semiconductor (a US semiconductor company). This was well received by markets as investors focused on the capacity increase in the long term which could drive earnings for the company. However, this also introduced potential downside risks to the nearer term earnings outlook given the large capex that would be required. Given this raised questions on the free cash flow profile of the company (and therefore dividend growth), we trimmed our holding.

Within financials, two South Korean names, KB Financial and Shinhan Financial enhanced returns. This was largely driven by the favourable impact of the government's 'Value-Up' program, discussed above, which has seen Korean banks announce measures to increase shareholder returns. Their stocks have re-rated accordingly.

Infosys, an Indian IT services company, was another contributor to performance over the past 12 months. Fears that generative AI would be able to replicate the company's IT outsourcing services weighed on the stock price during 2022. Infosys's management sought to assuage these fears, claiming instead that AI will actually create more opportunities, as has been the case in the last few technological cycles. The stock has re-rated in recent months as investors' AI-related concerns finally abated and the company's earnings outlook improved.

Brazilian stock exchange operator B3 SA Brasil was the largest detractor from returns due to weaker than expected trading volumes on the back of a challenging macro environment. The high interest rate environment and uncertainty about future interest rates particularly affected the cash equities business. However, valuations are now at an attractive level, and it is well positioned for when the macroeconomic environment improves. We also like this quality business as it generates strong free cash flow, has few competitors, and is making successful efforts to diversify its revenue streams. Additionally, it boasts an attractive dividend policy.

Within our holdings in consumer staples, an overweight in Wuliangye, a baijiu (Chinese liquor) producer, detracted from returns. The company's share price declined due to concerns that the domestic economic slowdown would damage future sales. With its strong brand and market position we continue to see this company as a long term winner in the sector and retain a position; for the overall portfolio we are continuing to evaluate how best to position within the China consumer space, considering the economic headwinds which exist.

Another detractor from performance at the stock level over the review period was Indonesia's Bank Rakyat, which suffered a deterioration in asset quality in its key microfinance division, with small borrowers incrementally less able to repay loans on time. We believe this deterioration is cyclical, but market focus on these near-term headwinds led to weakness in the share price. In our view the investment thesis remains intact, and we continue to hold the stock.

Another stock which detracted was Kimberly Clark Mexico, a Mexican consumer goods company. As discussed below, the political situation in Mexico caused weakness for the entire market which was unhelpful. In addition, the Mexican peso also weakened - this was incrementally negative for the company's cost profile as many of its raw materials are priced in US dollars, while it prices its products in pesos. In a short term time-frame, it is difficult for the company to reprice its products quickly with negative consequences for the operating margin. In the long term we are still confident on the pricing power and cost efficiency gains the company can generate, and continue to hold our position.

Our decision not to own Hon Hai was relatively negative for our performance, as the stock outperformed in the period. This Taiwanese downstream technology manufacturer performed strongly as investors became more excited about its prospects for earnings growth as AI demand increases. We prefer to gain exposure to this area via other stocks such as Quanta which we see as better positioned in terms of product exposure and where valuations (including yield) look attractive.

Our country allocations had a negative impact on relative performance over the year. Our overweight exposure to South Korea was the most important positive contributor. This was entirely the result of successful stock selection. The government's 'Value-Up' program has seen many companies announce plans to distribute more cash to shareholders. Our holdings in financials have done particularly well as a result, as mentioned above, and so too have our positions in several auto manufacturers, SK Telecom and Samsung Electronics.

The excitement surrounding AI ensured that our overweight to Taiwan was another notable contributor to performance. TSMC and other Taiwanese tech companies are at the forefront of the AI revolution and our investments in companies such as Wiwynn, a supplier of computer hardware and Quanta Computer, a leader in hyper-scale servers, as well as in TSMC, did well over the past year.

Despite the Chinese economic slowdown, our modest overweight to China had a favourable impact on returns, thanks to our stock selection decisions. As growth slows, investors typically value companies which offer income. This aligns with our investment strategy and some of our holdings have benefited as a result. Tencent, an internet company whose offerings include social networking, e-commerce, mobile gaming and financial payments is one example. This stock has only recently entered our investment universe, as it has increased its shareholder returns. At the same time, the stock has become more attractively priced, and our decision to open a position subsequently enhanced returns.

Additionally, high yielding names such as Yangtze Power, China Construction Bank, and Sinopec, an oil and gas producer, performed well. Lastly, with the domestic economy slowing, we are increasingly interested in large exporters, given their limited exposure to the domestic economy. Our holdings in Fuyao Glass, an auto parts producer, Midea and Haier, both home appliance makers, have all performed well thanks to export demand.

However, the favourable impact of these positions was not sufficient to fully offset the adverse effect of our positioning in other markets. The Indian market performed well, and our underweight relative to the Benchmark created a drag on relative returns. It is difficult to find Indian stocks offering an attractive yield, partly because India is more of a 'growth' market, and because valuations are high, which means the yields on offer are correspondingly low. As the valuations of Indian stocks are amongst the highest across Emerging Markets, we typically find better value opportunities elsewhere, notably in Taiwan, which offers high growth opportunities at a more reasonable price.

Our overweight in Indonesia also detracted from returns due to political concerns, as well as some short-term, stock specific issues with holdings including Bank Rakyat, mentioned above. However, our conviction in the long-term investment thesis for this and other names remains intact. Lastly, our overweight in Mexico also detracted, due to political developments. The new president's decision to push through judicial reform raised question marks over the effectiveness of governance checks and balances in Mexico. Although this spooked markets, her success does not fundamentally change our view on the growth opportunities of the Mexican companies we own. In addition, the Mexican economy is a major beneficiary of the trend towards nearshoring, as global manufacturers shorten the supply chains for goods destined for the US market.

Portfolio Positioning and Changes

We build our portfolio from the bottom up, 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 portfolio tilts towards some sectors and countries and a very active portfolio. 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 the portfolio is usually underweight in Materials, Industrials, and Healthcare. Overall, the portfolio has a high active share versus the Benchmark (74.8% at end of July 2024), demonstrating that we have a differentiated approach compared to the broader market.

At the country level, significant portfolio overweights include South Korea, Indonesia and Mexico - 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. The portfolio has a slightly overweight position in China and Hong Kong combined. China faces some challenges, including weak consumer demand, a stricken property market and a fractious relationship with the US, as discussed above, but we think overall valuations are more attractive after recent market weakness. The Chinese market's dividend outlook is also becoming more positive.

The portfolio changes we have implemented over the past year have mainly been motivated by individual stock considerations. Declines in valuations provided opportunities for us to open new positions in a number of companies including Tencent, as mentioned above. We expect this company to remain resilient due to its leading position within its sector, and the prospect of higher cash distributions to shareholders creates an attractive investment case. With valuations in the company much lower after a significant and protracted sell-off from their peak in early 2021, we took the opportunity to initiate a position in this high-quality company at an attractive price. We also purchased Quanta Computer, as demand for their hyper-scale servers is likely to grow for many years, as the AI revolution broadens and deepens, and we expect profitability to improve accordingly.

We took advantage of more attractive valuations and improved fundamentals to add to several existing positions across markets and sectors. Examples include Realtek Semiconductor, a Taiwanese semiconductor design company involved in Wi-Fi and audio products, and Walmart de Mexico, a food, clothing, and general merchandise retailer. Conversely, we trimmed positions where we thought valuations were beginning to look stretched after relatively strong performance. One such case was Southern Copper, a mining company with operations in Peru and Mexico. This remains an interesting investment given that long-term demand for copper is likely to be strong, as discussed above. However, the stock's performance has reduced its yield and inflated its valuation, so we reduced our position size.

One notable disposal over the past year was the closure of our position in Bid Corp, a South African food distributor. This company has performed well over the years, in line with our expectations, and with its valuation looking toppy, we decided to take profits and rotate into other, more attractive names, with greater potential upside. However, this is a good example of a successful investment in a high-quality company, and we would consider re-opening a position in Bid Corp if valuations look more attractive or if the company shows potential for further growth.

Our Engagement on 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 (please see the dedicated section in the full Annual Report). When considering potential investments, our analysts assess each company on a list of related factors, including its carbon emissions, renewable energy and recycling policies, and employment and diversity practices, along with its approach to corporate governance.

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.

Examples of recent ESG engagement with portfolio companies can be seen in the ESG Report in the full Annual Report.

Dividends

The Company's revenue return per share during the financial year was 5.64p, which compares to 5.70p in the prior financial year. As with previous years, the portfolio generated dividend income from a diverse set of companies across different countries and sectors. For example, the top three dividend contributors in the year were OPAP (a Greek gaming company), Tisco (a Thai consumer finance company) and Bank Rakyat (an Indonesian bank).

As a reminder, the Company receives dividends from portfolio companies in local currencies and pays out dividends in 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.

Other factors aside from currency will also impact near term dividend receipts. We would consider issues such as the possibility of a US recession weighing on Emerging Markets earnings, China's relatively slow growth (which affects many other Emerging Markets), and the outlook for technology which still looks relatively favourable.

Outlook

Emerging Markets are subject to multiple influences, both positive and negative. Export-oriented economies such as South Korea and Taiwan will continue to benefit from the surge in global demand for AI-driven tools. However, the risk of a US economic slowdown is increasing, as shown by the US Federal Reserve cutting interest rates. Yet with US interest rates set to decline, individual Emerging Markets such as Indonesia, South Africa and Mexico may have more scope to follow their own monetary easing cycles, which could be supportive for domestic demand in these economies. Meanwhile, the Indian economy continues to forge ahead, but as value investors, we still view valuations as relatively unattractive.

In contrast to India and several other emerging economies, China's economy is sluggish, but we are seeing increasing evidence that policymakers are acting with a higher sense of urgency to improve economic conditions and, crucially, to help consumer confidence to improve. Easing measures announced so far are mainly monetary policy focused and we suspect we need to see more fiscal tools being used for there to be more traction in terms of stimulus - but the higher degree of policy coordination is a positive and is being taken well by markets. Our constructive case for China is more based on the micro than the macro, i.e., we see attractive opportunities at the stock level driven by increasing focus on cash returns to shareholders via both dividends and buybacks. We continue to see improvement here, however, the desire to return cash to shareholders should always be balanced against the need to invest for future growth.

Given our bottom-up approach to building the portfolio, we remain excited by the many opportunities we see across Emerging Markets. Our principal focus is the same as it has been since the inception of the Company: we seek out companies able to produce attractive returns on equity, generate healthy free cash flow and pay shareholders reliable dividends. By identifying stocks with these characteristics, and buying them at attractive valuation levels, we can construct a portfolio with both value and quality attributes, that generates an attractive yield for shareholders, as well as allowing them to participate in Emerging Markets growth.

Omar Negyal

Isaac Thong

Portfolio Managers

JPMorgan Asset Management                                                                                                          1st November 2024

PRINCIPAL RISKS AND UNCERTAINTIES

The Board has overall responsibility for reviewing the effectiveness of the Company's system of risk management and internal control. The Board is supported by the Audit and Risk Committee in the management of risk. The risk management process is designed to identify, evaluate, manage, and mitigate risks faced. Although the Board believes that it has a robust framework of internal controls in place this can provide only reasonable, and not absolute, assurance against material financial misstatement or loss and is designed to manage, not eliminate, risk.

The Directors confirm that they have carried out a robust assessment of the principal risks and uncertainties facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. With the assistance of the Manager, the Audit and Risk Committee has drawn up a risk matrix, which identifies the principal risks and uncertainties, and the emerging risks to the Company and the ways in which these risks are managed or mitigated. These are reviewed and noted by the Board through the Audit and Risk Committee. The Audit and Risk Committee has agreed to hold a third meeting every year dedicated to the review of the Company's risk matrix.

The principal risks fall broadly under the following categories: investment; strategy; political and economic; financial; operational and cybercrime; accounting, legal and regulatory; and ESG.

The Board, through the Audit and Risk Committee, considers that the risks detailed below are the principal risks facing the Company currently, along with the financial risks detailed in note 22 of the full Annual Report. These are the risks that could affect the ability of the Company to deliver its strategy.

EMERGING RISKS

The AIC Code of Corporate Governance requires the Audit and Risk Committee to put in place procedures to identify emerging risks facing the Company. Emerging risks, which are not deemed to represent an immediate threat, are considered by the Audit and Risk Committee as they come into view and are incorporated into the existing review of the Company's risk matrix. However, since emerging risks are likely to be more dynamic in nature, they are considered on a more frequent basis, through the remit of the Board when the Audit and Risk Committee does not meet. The Board, through the Audit and Risk Committee, considers that the following is an emerging risk facing the Company:

Artificial Intelligence - While it might equally be deemed a great opportunity and force for good, there appears also to be an increasing risk to business and society more widely from Artificial Intelligence ('AI').

The use of AI could be a significant disrupter to business models and whole companies, leading to added uncertainty in company valuations. Equally, embracing AI with strategies and proactive measures can gain advantages for companies and failing to seize the AI opportunity could lead to a risk of losing competitiveness.

TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES

Details of the management contract are set out in the Directors' Report in the full Annual Report. The management fee payable to the Manager for the year was £3,208,000 (2023: £3,121,000) of which £nil (2023: nil) was outstanding at the year end.

Included in administration expenses in note 6 in the full Annual Report are safe custody fees amounting to £246,000 (2023: £205,000) payable to JPMorgan Chase Bank, N.A. of which £102,000 (2023: £86,000) was outstanding at the year end.

The Manager may carry out some of its dealing transactions through its group subsidiaries. These transactions are carried out at arm's length. The commission payable to JPMorgan Securities Limited for the year was £7,000 (2023: £5,000) of which £nil (2023: £nil) was outstanding at the year end.

The Company also holds cash in the JPMorgan USD Liquidity Fund, which is managed by the Manager. At the year end this was valued at £2,459,000 (2023: £2,184,000). Income amounting to £199,000 (2023: £212,000) was receivable during the year of which £nil (2023: £nil) was outstanding at the year end.

Stock lending income amounting to £18,000 (2023: £20,000) was receivable by the Company during the year. The commissions in respect of such transactions amounted to £2,000 (2023: £2,000) payable to the lending agent, JPMorgan Chase Bank, N.A.

Handling charges on dealing transactions amounting to £40,000 (2023: £20,000) were payable to JPMorgan Chase Bank, N.A. during the year of which £11,000 (2023: £5,000) was outstanding at the year end.

At the year end, total cash of £701,000 (2023: £1,291,000) was held with JPMorgan Chase Bank, N.A. A net amount of interest of £10,000 (2023: £4,000) was receivable by the Company during the year from JPMorgan Chase Bank, N.A. of which £nil (2023: £nil) was outstanding at the year end.

Full details of Directors' remuneration and shareholdings can be found in note 6 in the full Annual Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under Company law the Directors must not approve the financial statements unless they are satisfied that, taken as a whole, the annual report and financial statements are fair, balanced and understandable, provide the information necessary for shareholders to assess the Company's performance, business model and strategy and that they give a true and fair view of the state of affairs of the Company and of the total return or loss of the Company for that period. 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 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; 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.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the UK Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The financial statements are published on the www.jpmglobalemergingmarketsincome.co.uk website, which is maintained by the Company's Manager. The maintenance and integrity of the website maintained by the Manager is, so far as it relates to the Company, the responsibility of the Manager. The work carried out by the Auditor does not involve consideration of the maintenance and integrity of this website and, accordingly, the Auditor accepts no responsibility for any changes that have occurred to the financial statements since they were initially presented on the website. The financial statements are prepared in accordance with UK legislation, which may differ from legislation in other jurisdictions.

Under applicable law and regulations the Directors are also responsible for preparing a Directors' Report, Strategic Report and Directors' Remuneration Report that comply with that law and those regulations.

Each of the Directors, whose names and functions are listed in the full Annual Report confirm that, to the best of their knowledge:

•        the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and return of the Company; and

•        the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The Board confirms that it is satisfied that the annual report and financial statements taken as a whole is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

For and on behalf of the Board

Elisabeth Scott

Chair

1st November 2024

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31st July 2024

All revenue and capital items in the above statement derive from continuing operations.

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 for the year and also the total comprehensive income.

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF FINANCIAL POSITION

At 31st July 2024

STATEMENT OF CASH FLOWS

For the year ended 31st July 2024

NOTES TO THE FINANCIAL STATEMENTS

1.       Accounting policies

(a)     Basis of accounting

The financial statements are prepared under the historical cost convention, modified to include fixed asset investments at fair value, and in accordance with the UK 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.

All of the Company's operations are of a continuing nature.

The financial statements have been prepared on a going concern basis. In forming this opinion, the Directors have considered the impact of continued market volatility and economic uncertainty resulting from ongoing geopolitical tensions and conflicts, including the war in Ukraine, ongoing tensions between China and the US and escalating conflict in the Middle East, and in particular the impact of these geopolitical risks, as well as climate change, on the going concern and viability of the Company. In making their assessment, the Directors have reviewed income and expense projections and the liquidity of the investment portfolio, and considered the mitigation measures which key service providers, including the Manager, have in place to maintain operational resilience. The Directors have also reviewed the Company's compliance with debt covenants in respect of its loans with ING and Mizuho Bank, taking into consideration that the loan with Mizuho Bank will be repaid in November 2024. The Board has considered communications with key shareholders in respect of the continuation vote at the AGM in November 2024 in assessing the going concern and viability of the Company. In light of these factors, the Company's cash balances, and the liquidity position, the Directors consider that the Company has adequate financial resources to enable it to continue in operational existence for at least 12 months.

The policies applied in these financial statements are consistent with those applied in the preceding year.

2.       Dividends

(a)     Dividends paid and declared

The fourth interim dividend proposed in respect of the year ended 31st July 2023 amounted to £6,819,000. However, the amount paid amounted to £6,813,000 due to ordinary shares repurchased after the balance sheet date but prior to the record date.

(b)    Dividend for the purposes of Section 1158 of the Corporation Tax Act 2010 ('Section 1158')

The requirements of Section 1158 are considered on the basis of dividends declared in respect of the financial year, shown below.

The revenue available for distribution by way of dividend for the year is £16,586,000 (2023: £16,908,000). The revenue reserve after payment of the fourth interim dividend will amount to £13,186,000 (2023: £12,326,000).

3.       Return per share^A

The Revenue, Capital and Total return shown below, is the Net return after taxation in the Statement of Comprehensive Income in the full Annual Report.

^A     Alternative Performance Measure (APM).

4.       Net asset value per share^A

 ^A    Alternative Performance Measure (APM).

5.  Status of announcement

      2023 Financial Information

      The figures and financial information for 2023 are extracted from the Annual Report and Accounts for the year ended 31st July 2023 and do not constitute the statutory accounts for that year. The Annual Report and Accounts includes the Report of the Independent Auditor which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts has been delivered to the Registrar of Companies.

      2024 Financial Information

      The figures and financial information for 2024 are extracted from the Annual Report and Accounts for the year ended 31st July 2024 and do not constitute the statutory accounts for that year. The Annual Report and Accounts includes the Report of the Independent Auditor which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts will be delivered to the Registrar of Companies in due course.

JPMORGAN FUNDS LIMITED

4 November 2024

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: [email protected]

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 Annual 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 Annual 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.

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