2012/13 - J.P. Morgan · Ltd and previously served as British Ambassador to Japan between 1999 and...

JPMorgan Japanese Investment Trust plc

Half Year Report & Accounts for the six months ended 31st March 2013

Half Year Report2012/13

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Features

Contents

About the Company

1 Half Year Performance2 Chairman’s Statement3 Investment Manager’s Report

Investment Review

5 List of Investments 7 Sector Analysis

Accounts

8 Income Statement9 Reconciliation of Movements inShareholders’ Funds

10 Balance Sheet11 Cash Flow Statement12 Notes to the Accounts 14 Interim Management Report

Shareholder Information

15 Glossary of Terms and Definitions17 Information about the Company

Objective

Capital growth from Japanese investments.

Investment Policy

- To maintain a portfolio almost wholly invested in Japan.

- To use gearing to increase potential returns to shareholders. The Company’s gearingpolicy is to operate within a range of 5% net cash to 15% geared in normal marketconditions.

- To invest no more than 15% of its gross assets in any listed company (includinginvestment trusts).

Benchmark

The Tokyo Stock Exchange 1st Section Index (TOPIX) expressed in sterling terms.

Capital Structure

UK domiciled. Full listing on London Stock Exchange.

At 31st March 2013, the Company’s issued share capital comprised 161,248,078ordinary shares of 25p each.

Management Company

The Company employs JPMorgan Asset Management (UK) Limited (‘JPMAM’ or the‘Manager’) to manage its assets.


+24.7%Return on net assets2

+31.4%Return to shareholders1

+24.7%Benchmark return3

Financial Data31st March 30th September %

2013 2012 change

Shareholders’ funds (£’000) 368,971 302,134 +22.1

Number of shares in issue 161,248,078 161,318,078 –0.0

Net asset value per share 228.8p 187.3p +22.2

Share price 198.3p 154.5p +28.3

Share price discount tonet asset value per share 13.3% 17.5%

Exchange rate £1 = ¥142.8 £1 = ¥125.6 +13.7

A dividend of 3.65p per share was paid in the period.

A glossary of terms and definitions is provided on page 15.

1Source: Morningstar.2Source: J.P. Morgan.3Source: Datastream. The Company’s benchmark is the Tokyo Stock Exchange 1st Section Index (TOPIX) expressed insterling terms.

1JPMorgan Japanese Investment Trust plc. Half Year Report & Accounts 2013

Half Year Performancefor the six months ended 31st March 2013

Total returns (includes dividends reinvested)

Japanese HY pp01-16_Japanese_Half Year 21/05/2013 13:34 Page 1

Performance

I am delighted to report an excellent total return to shareholders for the six monthsended 31st March 2013 of 31.4%, the best first six month period during my time asChairman. The total return on net assets over the same period was in line with theCompany’s benchmark, the Tokyo Stock Exchange First Section (TOPIX) Index, of 24.7%in sterling terms. Both the shareholder returns and return on net assets were impactedby the weakening of the yen against sterling and most other currencies.

Further detail on the background against which the Company performed is discussedin the Investment Manager’s Report on pages 3 and 4.

Revenue and Dividends

As I emphasise each year in my Chairman’s Statement, dividend streams from Japanare unpredictable and dividends paid in previous years should not be taken as a guideto future payments. In respect of the year ended 30th September 2012, we paid adividend of 3.65p per share but, given a combination of the impact of the yen onrevenue and the revisions to the structure of the portfolio, it is unlikely that we will beable to maintain this level; on current projections, we would hope to pay a finaldividend of around 3p per share, subject to shareholder approval at the AnnualGeneral Meeting in December 2013.

Discount Management

The Board has guidelines in place with regard to the management of any discount/premium that may develop between the Company’s share price and its net asset valueper share and to enhance returns to ongoing shareholders. The Company repurchased70,000 ordinary shares for cancellation during the period under review, the firstrepurchase by the Company since November 2010.

Board of Directors

It is with regret that I have to announce that David Pearson will be retiring from theBoard of Directors at the Annual General Meeting in December 2013 having served fornearly eleven years. I would like to express my thanks to David for his valuablecontribution to the Board over many years.

I am pleased to announce, however, that Sir Stephen Gomersall, KCMG will be appointedto the Board with effect from 1st July 2013 and will seek reappointment as is required atthe December 2013 Annual General Meeting. Sir Stephen is currently a Director of HitachiLtd and previously served as British Ambassador to Japan between 1999 and 2004.

Gearing

The Board of Directors sets the overall strategic gearing policy and guidelines andreviews these at each meeting. As at the date of this report, the Company was 13%geared, having ranged between 6% and 14% during the six months under review, andthis contributed positively to performance.

Outlook

It has been an exceptional period of change within Japan from which shareholdershave benefited. In September 2012 when Shinzo Abe became President of the LiberalDemocratic Party (‘LDP’) and was subsequently appointed Prime Minister on26th December 2012 after the LDP won the general election. Your Manager’s Reportcontains detailed comment on the prospects for the Japanese economy and it isencouraging to note that your Manager believes that there are significantopportunities for investors in Japan, many resulting from the changes in Governmentpolicy now under way.

Jeremy Paulson-EllisChairman 21st May 2013

JPMorgan Japanese Investment Trust plc. Half Year Report & Accounts 20132

Chairman’s Statement


JPMorgan Japanese Investment Trust plc. Half Year Report & Accounts 2013 3

Investment Manager’s Report

The total return to shareholders in the six months ended 31st March 2013 was 31.4%.The Company’s NAV rose 24.7% during the same period, in line with the Company’sbenchmark TOPIX index.

Review

The major event during the period was the general election. The Liberal DemocraticParty under Prime Minister Shinzo Abe won a landslide victory. The centrepiece ofAbe’s platform is the economy. A 2% inflation target has already been enactedalongside a group of policies collectively known as ‘Abenomics’. The new governorof the Bank of Japan, Haruhiko Kuroda, is focused on trying to generate inflation andis pursuing aggressive policies. It is particularly notable that popularity ratings forPrime Minister Abe have risen post the election. On the negative side relations withChina have continued to be difficult. This, and tensions on the Korean Peninsula, arekey risks for Japan and the region and we continue to pay close attention to events.

One consequence of the changes above has been a rapid weakening of the yen. Fromthe beginning of October to the end of March the yen weakened against the US dollarfrom ¥78 to ¥94. This happened because of the loosening of monetary policy inJapan on the one hand and a possible gradual tightening in the United States, as theeconomy continues to improve, on the other. The yen weakened against all majorcurrencies with the moves against the euro and Korean won noteworthy in terms ofthe boost to competitiveness this will give Japanese exporters. In addition manyJapanese companies will see a marked improvement in their underlying earnings asthe weakness of the yen should increase revenues.

Following the decisive election result we increased the level of gearing to themaximum permitted due to the improved outlook. The top stock contributors wereJin, a spectacles retailer that is transforming the industry with its low-cost businessmodel, and MonotaRO, an online retailer similar to Amazon. The major stock thatdetracted from performance was Namco Bandai, the gaming and software company,which we sold during the period.

Outlook and Future Strategy

We are positive on the outlook. There are four key reasons for this:

- Domestic policy support.

Prime Minister Abe won a landslide victory in the December election and,unusually, has had increasing support ratings in the months that havefollowed. He has a strong mandate to reform and is pursuing his policies at afaster than expected rate. We expect public works spending to increase,corporate tax rates to come down and Japan to enter negotiations to join theTrans Pacific Partnership, a free trade association which includes the UnitedStates. We have already seen some companies increase wages. It is a longtime since Japan has had stable and dynamic leadership.

- Improving global economic outlook.

The US economy is recovering as evidenced by the housing market and afalling unemployment rate. The most negative outcomes in the Eurozonehave, for now, been averted. The Japanese economy is geared to suchimprovements. It is important to remember that during the 2008 financialcrisis it was Japan that suffered the worst recession of any of the G8 nations.Conversely, when the global economy recovers we expect the Japaneseeconomy to benefit strongly. Indeed, the stock market is even more geared to



this trend with manufacturing accounting for over 50% of the TOPIX indexversus around 20% of GDP.

- The weaker yen.

One consequence of the prospect of looser monetary policy in Japan has beena much weaker currency as detailed above. It weakened against all majorcurrencies including the Korean won and the euro. This is important becausemany of Japan’s major competitors are in these regions. The boost tocompetitiveness should be substantial.

- Valuations.

Although the stock market has rallied in recent months it is still around 40%below the highs of the summer of 2008. On a price/book valuation basisJapan trades at a large discount relative to its own history and other majormarkets. On a price/earnings basis it trades in line with other major marketsbut has much better earnings momentum, not only for 2013 but also 2014.

Overall, we see significant opportunities ahead. We believe that the primarybeneficiaries of so-called Abenomics lie in domestic sectors. The improved outlookfor export companies thanks to the weaker yen will feed directly through to thedomestic economy in the form of higher profits and in turn higher wages.Furthermore, the drive for inflation should force companies and individuals out ofcash savings and into riskier assets as they become concerned about their purchasingpower being eroded. The Company is therefore overweight financial companies.Banks will benefit from increased loan demand as well as being able to sell moreinvestment products. Real estate companies will benefit as the improved economicoutlook pushes down vacancy rates and drives up rents. We also expect housing andcondominium sales to improve. Eventually we expect wages to rise as the economyimproves which should in turn increase demand for discretionary goods. TheCompany is therefore overweight retailers.

Long-term structural trends are the other core pillar of our investment strategy. Thepercentage of exports from Japan to Asia has increased from 25% to 55% over thelast 25 years. For example, Japanese car companies have a 95% market share in thenascent Indonesian auto market. Japanese companies are also global leaders ingrowth areas such as factory automation – as Chinese wages rise we expect factoriesto increasingly automate with companies such as robot maker Fanuc ideally placed tobenefit. Domestically there are also long-term trends. The percentage of shoppingtransacted on the internet is still very low by global standards but we see no reasonwhy this low level should persist. We therefore own shares in Japan’s largeste-commerce company Rakuten. We also invest in companies that will benefit fromthe ageing population. One example is Unicharm, the number one company in adultnappies.

At JPMorgan we have a large team based on the ground in Tokyo and we conductmany company visits each year – around 2,400 company meetings in the lastfinancial year – to try to identify significant changes in sectors and companies. Weexpect this to be a source of continued competitive advantage both this year and intothe future.

Nicholas WeindlingInvestment Manager 21st May 2013

Investment Manager’s Reportcontinued



List of Investmentsat 31st March 2013

Valuation PercentageCompany Sector1 £’000 %

Mitsubishi UFJ Banks 18,050 4.3Sumitomo Mitsui Financial Banks 17,647 4.2Orix Other Financing Business 13,103 3.1Hitachi Electric Appliances 11,273 2.7Sumitomo Realty & Development Real Estate 11,180 2.7Japan Tobacco Foods 10,814 2.6Isuzu Motors Transportation Equipment 9,940 2.4Mizuho Financial Banks 8,776 2.1Sumitomo Electric Nonferrous Metals 8,599 2.1

Top 25%Softbank Information & Communication 8,262 2.0Kubota Machinery 8,129 1.9Mitsubishi Electric Electric Appliances 8,044 1.9Honda Motor Transportation Equipment 7,929 1.9Fanuc Electric Appliances 7,926 1.9Shoei Real Estate 7,890 1.9Makita Machinery 7,827 1.9Marubeni Wholesale Trade 7,726 1.9Daihatsu Motor Transportation Equipment 7,542 1.8Itochu Wholesale Trade 7,408 1.8Taiheiyo Cement Glass & Ceramics Products 7,346 1.8MonotaRO Retail Trade 7,193 1.7Don Quijote Retail Trade 6,993 1.7

Top 50%Rakuten Retail Trade 6,808 1.6Nissan Motor Transportation Equipment 6,760 1.6Shimano Transportation Equipment 6,332 1.5Lixil Metal Products 6,221 1.5Industrial & Infrastructure Fund Other Financing Business 5,987 1.4Unicharm Chemicals 5,680 1.4Shinsei Bank Banks 5,647 1.4Digital Garage Information & Communication 5,324 1.3Kakaku.com Services 5,299 1.3Tokio Marine Insurance 5,080 1.2Misumi Wholesale Trade 4,886 1.2Tokyo Tatemono Real Estate 4,862 1.2Kansai Paint Chemicals 4,717 1.1Jin Retail Trade 4,573 1.1Sysmex Electric Appliances 4,563 1.1Cookpad Services 4,561 1.1Nissin Kogyo Transportation Equipment 4,365 1.0Enplas Electric Appliances 4,251 1.0Sanrio Wholesale Trade 4,133 1.0H.I.S Services 4,093 1.0

Top 75%



List of Investments continued

Valuation PercentageCompany Sector1 £’000 %

Leopalace21 Real Estate 3,868 0.9Sohgo Securities Services 3,860 0.9DaiichiKosho Services 3,853 0.9Daikin Industries Machinery 3,841 0.9Fuji Media Information & Communication 3,763 0.9Seven Bank Banks 3,755 0.9Suzuki Motor Transportation Equipment 3,750 0.9Aeon Credit Service Other Financing Business 3,710 0.9M3 Services 3,725 0.9Nihon M&A Center Services 3,725 0.9Sho-Bond Construction 3,676 0.9Kasuri No Aoki Retail Trade 3,666 0.9Keyence Electric Appliances 3,630 0.9FamilyMart Retail Trade 3,630 0.9Nippon Telegraph and Telephone Information & Communication 3,519 0.8Itochu Techno-Solutions Information & Communication 3,431 0.8Sumitomo Corporation Wholesale Trade 3,419 0.8Toyo Suisan Foods 3,399 0.8Konami Information & Communication 3,296 0.8Avex Information & Communication 3,229 0.8Obayashi Construction 3,201 0.8Musashi Seimitsu Transportation Equipment 3,187 0.8Cosmos Pharmaceutical Retail Trade 3,044 0.7Seria Retail Trade 3,027 0.7Nippon Shinyaku Pharmaceutical 2,826 0.73D Matrix Information & Communication 2,555 0.6Sumco Metal Products 1,876 0.4Anritsu Electric Appliances 1,819 0.4Sosei Pharmaceutical 1,697 0.4Glory Machinery 1,645 0.4Sugi Retail Trade 1,633 0.4Nifco Chemicals 1,600 0.4Daido Metal Transportation Equipment 1,492 0.4Lifenet Insurance Insurance 999 0.2

Total Portfolio 417,085 100.0

1Tokyo Stock Exchange classifications.



at 31st March 2013 at 30th September 2012Portfolio Benchmark Portfolio Benchmark

% % % %

Processing 52.4 44.5 59.2 46.3

Transportation Equipment 12.3 11.2 9.9 10.1

Electric Appliances 9.9 11.4 9.3 11.9

Services 7.7 2.2 12.5 4.0

Wholesale 7.6 4.9 8.6 5.4

Information & Communications 7.4 6.1 13.2 7.2

Machinery 5.1 5.1 3.5 4.7

Other Products 1.8 2.3 2.2 1.5

Precision Instruments 0.6 1.3 — 1.5

Financial 18.3 15.9 12.3 14.3

Banks 12.9 10.8 7.7 10.0

Other Financing Business 4.0 1.2 2.9 0.9

Insurance 1.4 2.3 1.7 2.3

Security & Commodity Futures — 1.6 — 1.1

Consumer 12.6 18.7 16.2 23.9

Retail Trade 8.1 4.4 10.3 4.6

Foods 3.4 4.2 4.9 4.4

Pharmaceuticals 1.1 5.1 1.0 5.6

Other Consumer — 5.0 — 9.3

Assets 9.8 5.9 4.4 5.5

Real Estate 8.1 3.6 3.0 2.9

Construction 1.7 2.3 1.4 2.6

Basic 6.9 7.2 7.9 7.5

Chemicals 2.9 5.6 3.2 5.7

Nonferrous Metals 2.1 1.0 2.1 1.1

Metal Products 1.9 0.6 2.6 0.7

Utilities — 7.8 — 2.5

Total 100.0 100.0 100.0 100.0

Based on the total portfolio of investments of £417.1m (2012: £324.2m).

Sector Analysis


Income Statementfor the six months ended 31st March 2013

(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended31st March 2013 31st March 2012 30th September 2012

Revenue Capital Total Revenue Capital Total Revenue Capital Total£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Gains/(losses) on investments held at fair value through profit or loss — 67,351 67,351 — 2,614 2,614 — (11,574) (11,574)

Net foreign currency gains — 4,091 4,091 — 1,515 1,515 — 141 141Income from investments 3,244 — 3,244 3,817 — 3,817 8,121 — 8,121

Gross return/(loss) 3,244 71,442 74,686 3,817 4,129 7,946 8,121 (11,433) (3,312)Management fee (201) (802) (1,003) (206) (825) (1,031) (368) (1,475) (1,843)Other administrative expenses (273) — (273) (228) — (228) (479) — (479)

Net return/(loss) on ordinary activities before finance costs and taxation 2,770 70,640 73,410 3,383 3,304 6,687 7,274 (12,908) (5,634)

Finance costs (63) (252) (315) (36) (144) (180) (93) (371) (464)

Net return/(loss) on ordinary activities before taxation 2,707 70,388 73,095 3,347 3,160 6,507 7,181 (13,279) (6,098)

Taxation (232) — (232) (267) — (267) (569) — (569)

Net return/(loss) on ordinary activities after taxation 2,475 70,388 72,863 3,080 3,160 6,240 6,612 (13,279) (6,667)

Return/(loss) per share (note 3) 1.53p 43.63p 45.16p 1.91p 1.96p 3.87p 4.10p (8.23)p (4.13)p

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

The ‘Total’ column of this statement is the profit and loss account of the Company and the ‘Revenue’ and ‘Capital’ columnsrepresent supplementary information prepared under guidance issued by the Association of Investment Companies. The Totalcolumn represents all the information that is required to be disclosed in a Statement of Total Recognised Gains and Losses(‘STRGL’). For this reason a STRGL has not been presented.

8 JPMorgan Japanese Investment Trust plc. Half Year Report & Accounts 2013


Reconciliation of Movements inShareholders’ Funds

Called up CapitalSix months ended share Other redemption Capital Revenue31st March 2013 capital reserve reserve reserves reserve Total(Unaudited) £’000 £’000 £’000 £’000 £’000 £’000

At 30th September 2012 40,330 166,791 8,632 78,012 8,369 302,134Repurchase and cancellation of the Company’s

own shares (18) — 18 (138) — (138)Net return on ordinary activities — — — 70,388 2,475 72,863Dividends appropriated in the period — — — — (5,888) (5,888)

At 31st March 2013 40,312 166,791 8,650 148,262 4,956 368,971

Called up CapitalSix months ended share Other redemption Capital Revenue31st March 2012 capital reserve reserve reserves reserve Total(Unaudited) £’000 £’000 £’000 £’000 £’000 £’000

At 30th September 2011 40,330 166,791 8,632 91,291 7,080 314,124Net return on ordinary activities — — — 3,160 3,080 6,240Dividends appropriated in the period — — — — (5,323) (5,323)

At 31st March 2012 40,330 166,791 8,632 94,451 4,837 315,041

Called up CapitalYear ended share Other redemption Capital Revenue30th September 2012 capital reserve reserve reserves reserve Total(Audited) £’000 £’000 £’000 £’000 £’000 £’000

At 30th September 2011 40,330 166,791 8,632 91,291 7,080 314,124Net (loss)/return on ordinary activities — — — (13,279) 6,612 (6,667)Dividends appropriated in the year — — — — (5,323) (5,323)

At 30th September 2012 40,330 166,791 8,632 78,012 8,369 302,134



Balance Sheetat 31st March 2013

(Unaudited) (Unaudited) (Audited)31st March 2013 31st March 2012 30th September 2012

£’000 £’000 £’000

Fixed assetsInvestments held at fair value through profit or loss 417,085 339,397 324,227

Current assetsDebtors 8,536 7,436 9,850Cash and short term deposits 1,244 1,817 4,796

9,780 9,253 14,646

Creditors: amounts falling due within one year (57,894) (33,609) (36,739)

Net current liabilities (48,114) (24,356) (22,093)

Net assets 368,971 315,041 302,134

Capital and reservesCalled up share capital 40,312 40,330 40,330Other reserve 166,791 166,791 166,791Capital redemption reserve 8,650 8,632 8,632Capital reserves 148,262 94,451 78,012Revenue reserve 4,956 4,837 8,369

Total equity shareholders’ funds 368,971 315,041 302,134

Net asset value per share (note 4) 228.8p 195.3p 187.3p



Cash Flow Statementfor the six months ended 31st March 2013


£’000 £’000 £’000

Net cash inflow from operating activities (note 5) 1,975 1,806 4,795Net cash outflow from returns on investments

and servicing of finance (277) (186) (476)Net cash outflow from capital expenditure and

financial investment (24,149) (25,256) (25,019)Dividend paid (5,888) (5,323) (5,323)Net cash inflow from financing 25,121 20,587 20,587

Decrease in cash for the period (3,218) (8,372) (5,436)

Reconciliation of net cash flow to movement in net debtNet cash movement (3,218) (8,372) (5,436)Loans drawn down in the period (25,121) (20,587) (20,587)Exchange movements 4,092 1,518 143

Movement in net debt in the period (24,247) (27,441) (25,880)

Net debt at the beginning of the period (27,043) (1,163) (1,163)

Net debt at the end of the period (51,290) (28,604) (27,043)

Represented by:Cash and short term deposits 1,244 1,817 4,796Debt falling due within one year (52,534) (30,421) (31,839)

Net debt at the end of the period (51,290) (28,604) (27,043)



Notes to the Accountsfor the six months ended 31st March 2013

1. Financial statements

The information contained within the financial accounts in this half year report has not been audited or reviewed by theCompany’s auditors.

The figures and financial information for the year ended 30th September 2012 are extracted from the latest publishedaccounts of the Company and do not constitute statutory accounts for that year. Those accounts have been delivered to theRegistrar of Companies and included the report of the auditors which was unqualified and did not contain a statement undereither Section 498(2) or 498(3) of the Companies Act 2006.

2. Accounting policies

The accounts have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (‘UK GAAP’)and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture CapitalTrusts’ issued in January 2009.

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

The accounting policies applied to these half year accounts are consistent with those applied in the accounts for the yearended 30th September 2012.

3. Return per share


£’000 £’000 £’000

Return per share is based on the following:Revenue return 2,475 3,080 6,612Capital return/(loss) 70,388 3,160 (13,279)

Total return/(loss) 72,863 6,240 (6,667)

Weighted average number of shares in issue 161,316,450 161,318,078 161,318,078Revenue return per share 1.53p 1.91p 4.10pCapital return/(loss) per share 43.63p 1.96p (8.23)p

Total return/(loss) per share 45.16p 3.87p (4.13)p

4. Net asset value per share

Net asset value per share is calculated by dividing the funds attributable to ordinary shareholders by the number of ordinaryshares in issue at 31st March 2013 of 161,248,078 (31st March 2012: 161,318,078 and 30th September 2012: 161,318,078).



5. Reconciliation of total net return on ordinary activities before finance costs and taxation to net cash inflow from operating activities


£’000 £’000 £’000

Net total return/(loss) on ordinary activities before finance costs and taxation 73,410 6,687 (5,634)

(Less capital return)/add capital loss before finance costs and taxation (70,640) (3,304) 12,908

Decrease/(increase) in net debtors and accrued income 257 (485) (419)Decrease in accrued expenses (18) — (16)Overseas taxation (232) (267) (569)Management fee charged to capital (802) (825) (1,475)

Net cash inflow from operating activities 1,975 1,806 4,795



Interim Management Report

The Company is required to make the following disclosures inits half year report.

Principal Risks andUncertainties

The principal risks and uncertainties faced by the Companyhave not changed and fall into the following broad categories:investment and strategy; market risk; political, economic andgovernance; loss of investment team or investment manager;discount; change of corporate control of the Manager;accounting, legal and regulatory; corporate governance andshareholder relations; operational and financial. Informationon each of these areas is given in the Business Review withinthe Annual Report and Accounts for the year ended30th September 2012.

Related Parties Transactions

During the first six months of the current financial year, notransactions with related parties have taken place which havematerially affected the financial position or the performanceof the Company.

Going Concern

The Directors believe, having considered the Company’sinvestment objectives, risk management policies, capitalmanagement policies and procedures, nature of the portfolioand expenditure projections, that the Company has adequateresources, an appropriate financial structure and suitable

management arrangements in place to continue in operationalexistence for the foreseeable future. For these reasons, theyconsider there is reasonable evidence to continue to adopt thegoing concern basis in preparing the accounts.

Directors’ Responsibilities

The Board of Directors confirms that, to the best of itsknowledge:

(i) the condensed set of financial statements containedwithin the half yearly financial report has beenprepared in accordance with the Accounting StandardsBoard’s Statement ‘Half Yearly Financial Reports’ andgives a true and fair view of the assets, liabilities,financial position and net return of the Company asrequired by the UK Listing Authority Disclosure andTransparency Rules 4.2.4R; and

(ii) the half year management report includes a fair reviewof the information required by 4.2.7R and 4.2.8R of theUK Listing Authority Disclosure and TransparencyRules.

For and on behalf of the Board

Jeremy Paulson-EllisChairman 21st May 2013



Glossary of Terms and Definitions

Return to Shareholders

Total return to the investor, on a mid-market price tomid-market price basis, assuming that all dividends receivedwere reinvested, without transaction costs, into the shares ofthe Company at the time the shares were quoted ex-dividend.

Return onNet Assets

Total return on net asset value (‘NAV’) per share, on a bidvalue to bid value basis, assuming that all dividends paidout by the Company were reinvested into the shares of theCompany at the NAV per share at the time the shares werequoted ex-dividend.

In accordance with industry practice, dividends payable whichhave been declared but which are unpaid at the balance sheetdate are deducted from the NAV per share when calculatingthe total return on net assets.

BenchmarkReturn

Total return on the benchmark, on a mid-market value tomid-market value basis, assuming that all dividends receivedwere reinvested, without transaction costs, into the shares ofthe underlying companies at time the shares were quotedex-dividend.

The benchmark is a recognised index of stocks which shouldnot be taken as wholly representative of the Company’sinvestment universe. The Company’s investment strategy doesnot follow or ‘track’ this index and consequently, there may besome divergence between the Company’s performance andthat of the benchmark.

SharePriceDiscount/Premium toNet Asset Value (‘NAV’)

If the share price of an investment trust is lower than the NAVper share, the shares are said to be trading at a discount. Thediscount is shown as a percentage of the NAV per share. Theopposite of a discount is a premium. It is more common for aninvestment trust’s shares to trade at a discount than at apremium.




Warning to shareholders – Boiler Room Scams

In recent years, many companies have become aware that their shareholdershave been targeted by unauthorised overseas-based brokers selling what turnout to be non-existent or high risk shares, or expressing a wish to buy theirshares. If you receive unsolicited investment advice or requests:

• Make sure you get the correct name of the person or organisation

• Check that they are properly authorised by the FCA before gettinginvolved by visiting www.fca.org.uk/consumers

• Report the matter to the FCA by calling 0800 111 6768

• If the calls persist, hang up.

More detailed information on this can be found on the Money Advice Servicewebsite www.moneyadviceservice.org.uk


History

The Company was formed in 1927 as The Capital & National TrustLimited. It was a general investment trust until 1982, when itsshareholders approved a change of name to The Fleming JapaneseInvestment Trust plc and the adoption of a policy of specialising ininvestment in Japan. It is the largest UK investment trust specialisingin Japan. The Company adopted its current name in December 2006.

Directors

Jeremy Paulson-Ellis (Chairman) Alan BarberAndrew FlemingDavid PearsonKeith Percy

Company Numbers

Company registration number: 223583London Stock Exchange number: 0174002 ISIN: GB0001740025Bloomberg code: JFJ LNReuters code: JFJ.L

Market Information

The Company’s unaudited net asset value (‘NAV’) per share is publisheddaily via the London Stock Exchange. The Company’s shares arelisted on the London Stock Exchange. The market price is shown dailyin the Financial Times, The Times, The Daily Telegraph, The Scotsman,The Independent and on the JPMorgan website atwww.jpmjapanese.co.uk, where the share price is updated every fifteenminutes during trading hours.

Website

www.jpmjapanese.co.uk

Share Transactions

The Company’s shares may be dealt in directly through a stockbrokeror professional adviser acting on an investor’s behalf. They may alsobe purchased and held through the J.P. Morgan Investment Account,J.P. Morgan ISA and J.P. Morgan SIPP. These products are all availableon the online wealth manager service, J.P. Morgan WealthManager+available at www.jpmorganwealthmanagerplus.co.uk

Manager and Company Secretary

JPMorgan Asset Management (UK) Limited

Company’s Registered Office

Finsbury Dials20 Finsbury StreetLondon EC2Y 9AQTelephone number: 0207 742 4000

For company secretarial and administrative matters please contactRebecca Burtonwood at the above address.

CustodianJPMorgan Chase Bank, N.A.25 Bank StreetCanary WharfLondon E14 5JP

Registrars

Equiniti LimitedReference 1090Aspect HouseSpencer RoadLancingWest Sussex BN99 6DATelephone number: 0871 384 2317

Notifications of changes of address and enquiries regarding sharecertificates or dividend cheques should be made in writing to theRegistrar quoting reference 1090.

Registered shareholders can obtain further details on their holdings onthe internet by visiting www.shareview.co.uk.

Independent Auditors

BegbiesChartered Accountants and Statutory AuditorsEpworth House25 City RoadLondon EC1Y 1AR

Brokers

Canaccord Genuity88 Wood StreetLondon EC2V 7QR

Savings Product AdministratorsFor queries on the J.P. Morgan Investment Account, J.P. Morgan ISAand J.P. Morgan SIPP, call the JPMorgan Helpline on Freephone0800 20 40 20 or +44 (0)20 7742 9995.

Information about the Company

Financial CalendarFinancial year end 30th SeptemberFinal results announced NovemberHalf year end 31st MarchHalf year results announced MayHalf year Management Statements announced January and JulyDividend on ordinary shares paid DecemberAnnual General Meeting December

A member of the AIC



J.P. Morgan HelplineFreephone 0800 20 40 20 or +44 (0)20 7742 9995

Your telephone call may be recorded for your security

www.jpmjapanese.co.uk


2012/13 - J.P. Morgan · Ltd and previously served as British Ambassador to Japan between 1999 and...

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Transcript of 2012/13 - J.P. Morgan · Ltd and previously served as British Ambassador to Japan between 1999 and...