Half Yearly Report

RNS Number : 8569H

JPMorgan Asian Investment Tst PLC

23 May 2014

 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN ASIAN INVESTMENT TRUST PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED
31ST MARCH 2014

Chairman's Statement

Over the six months ended 31st March 2014, the Company's diluted return on net assets was -1.3% and the return to Ordinary shareholders was -1.0%, reflecting a slight narrowing of the Company's discount from 10.7% to 10.5%. The Company marginally underperformed its benchmark, the MSCI Asia ex Japan Index, which returned -0.3%.

I am pleased to report that, at the Company's Annual General Meeting held on 31st January 2014, shareholders voted in favour of the Company's continuation as an investment trust for a further three year period. Your Board is aware that shareholders need to be rewarded for their ongoing support and we will continue to monitor closely the Manager's performance.

A market review, commentary on portfolio activity and performance together with the outlook are set out in the accompanying Investment Manager's report.

Tender Offers

In December 2013, a tender offer for up to 5% of the Company's Ordinary share capital was implemented at a 2% discount to net asset value ('NAV'), less the direct costs and expenses of the tender offer. A total of 5,041,946 shares, representing 5% of the Company's then outstanding Ordinary shares, were repurchased at a price of 224.15 pence per share and were subsequently cancelled.

Shareholders will be aware that the Company has conducted a number of tender offers over the past few years. In late 2013 the Board consulted with shareholders owning over 45% of the Company's shares in relation to the principle and operation of the 5% tender offers implemented by the Company in 2013. Whilst there was a wide spectrum of opinion, a significant percentage of these shareholders expressed opposition to the ongoing contraction of the Company via the semi annual tender mechanism and did not believe that it provided a sufficient benefit to longer term shareholders. Accordingly, having considered this feedback the Board decided to seek authority from shareholders at the Annual General Meeting to change the tender offer structure in 2014. At the 2014 Annual General Meeting, shareholders were asked to approve a conditional tender offer for up to 10% of the Company's issued share capital at a discount of 3.5% to the relevant cum income NAV less other costs associated with the tender offer. As with prior tender offers, the tender offer was to be at the discretion of the Board, but in relation to the 2014 tender offer, the discretion was to take into account the Company's relative and absolute performance, its relative and absolute discount level over the financial year ending 30th September 2014 and to market conditions at the time.

Despite the majority of shareholders voting in favour of the tender offer at the 2014 AGM, the majority was insufficient to achieve the requisite 75% of those voting to carry a special resolution and accordingly the resolution was not passed. Therefore, for the time being the Company will not be conducting further tender offers. The Board is aware that tender offers, both in terms of availability and structure divide shareholders. It is true that they provide a liquidity event for shareholders at close to NAV, but there is limited evidence to suggest that they assist in reducing discounts and of course they impact all non-tendering shareholders by increasing the Company's ongoing charges ratio, given the reduction in share capital. The Board will consider the best course of action for the Company in respect of any future tender offers in the lead up to the Company's year end.

Discount Management

The Board closely monitors the level of discount at which the Company's Ordinary shares trade relative to their NAV and believes that the Company's buyback powers can have some success in stabilising the discount. The Board has undertaken to buy back shares in normal market conditions, to ensure that, as far as possible, that its Ordinary shares trade no wider than discounts of between 8% to 10%. As I have reported in my previous statements, continued volatility within the Asian market has meant that the Company may refrain from implementing share buybacks when the discount has widened beyond 10%, as there has been no certainty that such actions would assist in stabilising the discount. Since the Company's year end on 30th September 2013 and to the date of this Report, a total of 260,000 Ordinary shares have been bought back (this figure does not include the 5,041,946 shares bought back in respect of the 5% tender offer conducted in December 2013).

Subscription Shares

In February 2009 the Company issued 32,000,805 Subscription shares as a bonus issue to qualifying shareholders on the basis of one Subscription share for every five Ordinary shares held. Each Subscription share conferred the right to subscribe for one Ordinary share at predetermined prices on any business day during the period from 1st April 2009 until 31st March 2014. The Subscription share rights lapsed at the close of business on 31st March 2014 and were unfortunately out-of-the money, that is, the share price was less than the exercise price at that date. Although it is disappointing that the final remaining Subscription shares expired out of the money, just under 75% of the Subscription shares were exercised during their life span, raising over £33 million for the Company.

In accordance with the shareholder resolutions passed on 31st January 2014, all outstanding Subscription shares were re-designated into deferred shares and subsequently repurchased and cancelled by the Company. The UK Listing Authority suspended the listing of the Subscription shares from 7.30 a.m. on 14th April 2014 and the Financial Conduct Authority cancelled the Subscription shares from the Official List on 1st May 2014.

Gearing

The Company has a £30 million three year multi currency loan facility with Scotiabank in place which will expire in December 2016. The investment managers utilise draw downs from this loan facility to gear the portfolio. As at 31st March 2014 total gearing was 0.3%.

The Alternative Investment Fund Managers' Directive (the 'AIFMD')

The Company is on course to be fully compliant with the AIFMD on 22nd July 2014. The Company has appointed JPMorgan Funds Limited as its AIFM and entered into a new management agreement and depositary agreement with Bank of New York Mellon, effective from early June 2014.

Board of Directors

It was recently announced that Andrew Sykes will step down from the Board with effect from 20th June 2014. Since his appointment to the Board in 2004, Andrew has proven to be an exceptional Director and Audit Committee Chairman, and we wish him well for the future. The process for appointing a replacement is under way and an announcement will be made as soon as an individual has been identified.

Outlook

In comparison with the performance returns generated by European and American stock markets over the last six months, the return generated by the overall Asian market is disappointing. However, despite differing fortunes, there were some highlights amongst the constituent countries which make up the Asian ex Japan Index and, as reported by our Investment Managers overleaf, stronger European and American economies can only help to support the Asian export market going forward.

James M Long

Chairman

23rd May 2014

Investment Managers' Report

During the six months under review, the benchmark against which your Company is measured traded in a narrow range. However, its constituents - countries, sectors, equities and currencies - experienced significant volatility and dispersion of returns. The final outcome was disappointing in that the performance of the Company lagged that of the benchmark by one percentage point on a diluted net asset value total return basis.

Market Review

In the final quarter of 2013, Asean stock markets declined. Investors, typically overweight in these markets for many years, rushed to exit in early 2014. The spectre of rising interest rates combined with deteriorating current accounts and the exodus of foreign investors exerted considerable pressure on certain currencies, most notably the Indonesian Rupiah, which depreciated by more than 20% in the second half of 2013. Earnings forecasts came also under pressure. The high equity ratings, both earnings multiples and price to book values, quickly declined. We reduced exposure to Asean earlier in the year, so the effect of these falls was relatively small for the Company.

Meanwhile, in the aftermath of the Plenum in China in October, investors started to perceive Mainland equities in a more positive light. The new leadership of Xi Jinping and Li Keqiang articulated objectives that made sense to investors and they projected a determination to achieve those goals that previous leadership lacked. Their commitment to reforms was a welcome departure from many years of simply accelerating credit growth. Many of the stocks held within the portfolio rallied significantly, especially those in the environmental, internet and casino sectors.

As the Company entered 2014, its positioning can be briefly summarised as overweight Greater China and underweight Asean. The Company was also well positioned in India to take advantage of a positive election outcome. Overall, the Company was fully invested, with stock selection that could be described as growth orientated, not defensive. We mention these characteristics for two reasons. First, as at the time of writing, the position of the Company has not changed. Second, the positioning described above was exactly the wrong way to be placed in the first quarter of 2014.

As the year commenced, the yield on the US Ten Year Treasury bond, which is one of the most relevant and observed financial instruments, started falling. This surprised us and many other market observers. Given the improving American economy and the Federal Reserve's commitment to tapering, many assumed the yield would rise. A rising yield would have exerted more pressure on Asean currencies, so equally the falling yield was a reprieve. To their credit, Thailand and Indonesia also took measures to address their current account deficits. Overall, the outcome was stable to stronger currencies and better economic data within the Asean region. Stocks posted strong gains in the first quarter, despite negative earnings revisions which are still unfolding at the time of writing this report. As a result Asean equities are looking comparatively expensive again.

Despite the early optimism from 2013, the post Plenum enthusiasm in China wore off and the reality of the Mainland's credit problems took centre stage. Several wealth management products ('WMPs') quasi defaulted early in the calendar year. These WMP products are sold via banks to retail and private wealth customers where the underlying collaterals are loans underwrote by trust companies. Individuals who bought WMPs are essentially lending the money to higher risk borrowers, often in the resources, property or infrastructure sectors. The deposit rates and lending rates are well above what can be found in banks, given the higher risk profile of the borrowers. To put the scale of the issue into context, the total amount of trust products in China is around US$ 2 trillion, which is 10% of China's gross debt. In 2014 and 2015, many of these trust-related WMPs will mature, and some will default. The immediate effect of just two WMP defaults, was that Chinese equities fell in the first quarter, relinquishing much of their fourth quarter gains.

In India, markets rallied in the first quarter as Narendra Modi's election campaign gathered steam, improving the likelihood of a decisive win, which we now know was the case. Corporate earnings have been better of late, so forecasts have stabilized. The economic data is still poor but we believe that the investment cycle has bottomed in this region.

Two other factors affecting the Asian stock markets are worth mentioning. First, investors have been reducing their exposure to global emerging markets ('GEM'). GEM equity and fixed income funds had endured approximately 30 consecutive weeks of redemption by April 2014. That equates to tens of billions of dollars leaving emerging markets (which are dominated by Asia) and more often than not being re-invested in Europe and America. The other disappointing factor has been the moribund state of trade in Asia. In the fourth quarter of 2013, data suggested that a nascent recovery in exports from Asia was unfolding. In 2014, that data has reversed and Asian economies continue to lack a key growth ingredient.

Performance Analysis

There are many ways to analyse the Company's underperformance over the past six months. Overall asset allocation detracted from returns; the Company was overweight China, a market that retreated, and underweight Asean, when it rallied convincingly in the first quarter. Stock selection, however, produced mixed results. Despite China being the wrong market to be exposed to, stock selection in Greater China was positive. However, stock selection in Korea was the key detractor from performance returns as one of the Company's most successful Korean investments, the steel company Posco, declined in the first quarter (it is recovering at the time of writing, having revealed an intention to restructure its balance sheet). One other way to assess the performance would be to look at style, factors or sectors. The Company was underweight expensive 'quality' stocks in the consumer staples sector in 2013, which aided performance. In addition, the Company had eschewed defensive stocks in the telecom sector, again reflecting a good decision for 2013. In 2014, though, quality and telecom stocks have rallied, whereas growth and value stocks have stalled.

Market Outlook

Over the past three years, investors in Asian stock markets have had to contend with persistently declining earnings forecasts. Every year, the consensus expects earnings to rise by 12-16% and every year earnings only increase by 0-8%. The trend will recur in 2014, but we think the numbers will be better i.e. expectations started the year lower and the depth of the cuts should be less. Regardless, valuations have continually provided downside support. What we need is a catalyst to propel markets higher. There is no visible catalyst. The result is that European and American stock markets have significantly outperformed Asian and global emerging markets and that the former are materially more expensive in valuation terms than the latter. Empirical data tells us that this disconnect does not last forever. We can also be confident that the recovering economies in Europe and America will inevitably lead to stronger Asian exports.

2014 will be a crucial year for Asia politically and geopolitically. New leaders will take the helm in India and Indonesia and hopefully accelerate much needed reform and investment in these two countries. We are observing political developments carefully. In China, the new leadership has mapped out aggressive and necessary plans and reforms, which will cause pain as they are implemented. China has a difficult road ahead, especially as the economy commences the deleveraging process. Growth cannot be allowed to slow to the point that it affects employment, but growth will slow. Everybody accepts this and the reality is reflected in equity valuations. Geopolitically, tensions in the South China Sea and the East China Sea are unsettling and could lead to sharp (but probably temporary) market declines if relations deteriorate.

Company Positioning and Outlook

In light of the poor first quarter performance which more than offset the positive fourth quarter performance, we have re-examined our stocks, asset allocation and overall positioning. The result is that we have made few changes, and in fact have probably added to certain stocks that look even more attractive.

Your Company is positioned for better market conditions than appear at present. Valuations provide enough downside support and the global economy is healing. The necessary pain has been taken and is still being taken in Asia. By that, we mean that currencies have lost value, balance sheets are improving, reforms are finally being embraced and corruption is being attacked. At the beginning of 2013, very few participants predicted that American equities would rally 30%, nor could they have articulated why, and yet that was the outcome. We think the risk is asymmetrically positive for investors, i.e. there is more upside than downside. The question is when, not if. We thank you for your patience.

Ted Pulling

Sonia Yu

Jeff Roskell

Investment Managers

23rd May 2014

Interim Management Report

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

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Company have not changed since the Company's year end and fall into the following broad categories: investment and strategy; market; accounting, legal and regulatory; corporate governance and shareholder relations; operational; and financial. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 30th September 2013.

Related Party Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company during the period.

Going Concern

The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i)   the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with the Accounting Standards Board's Statement 'Half Yearly Financial Reports' and gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at 31st March 2014, as required by the UK Listing Authority Disclosure and Transparency Rules 4.2.4R; and

(ii)  the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules.

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 accounting 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.

For and on behalf of the Board

James M Long

Director

23rd May 2014

Income Statement

for the six months ended 31st March 2014

	(Unaudited)			(Unaudited)			(Audited)
	Six months ended			Six months ended			Year ended
	31st March 2014			31st March 2013			30th September 2013
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments held at   fair value through profit or loss	-	(2,874)	(2,874)	-	33,489	33,489	-	12,349	12,349
Net foreign currency losses	-	(257)	(257)	-	(423)	(423)	-	(984)	(984)
Income from investments	1,035	-	1,035	1,032	-	1,032	5,704	-	5,704
Other interest receivable and similar income	-	-	-	-	-	-	2	-	2
Gross return/(loss)	1,035	(3,131)	(2,096)	1,032	33,066	34,098	5,706	11,365	17,071
Management fee	(602)	-	(602)	(730)	-	(730)	(1,382)	-	(1,382)
Management fee contribution	-	-	-	-	1,135	1,135	-	1,135	1,135
Other administrative expenses	(364)	-	(364)	(347)	-	(347)	(729)	-	(729)
Net return/(loss) on ordinary activities   before finance costs and taxation	69	(3,131)	(3,062)	(45)	34,201	34,156	3,595	12,500	16,095
Finance costs	(120)	-	(120)	(156)	-	(156)	(355)	-	(355)
Net (loss)/return on ordinary activities   before taxation	(51)	(3,131)	(3,182)	(201)	34,201	34,000	3,240	12,500	15,740
Taxation	(124)	-	(124)	(120)	-	(120)	(291)	(251)	(542)
Net (loss)/return on ordinary activities   after taxation	(175)	(3,131)	(3,306)	(321)	34,201	33,880	2,949	12,249	15,198
(Loss)/return per Ordinary share   - diluted (note 4)	(0.18)p	(3.20)p	(3.38)p	(0.27)p	28.41p	28.14p	2.63p	10.94p	13.57p
(Loss)/return per Ordinary share   - undiluted (note 4)	(0.18)p	(3.20)p	(3.38)p	(0.27)p	28.47p	28.20p	2.64p	10.96p	13.60p

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

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 Total column 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.

Reconciliation of Movements in Shareholders' Funds

	Called up		Exercised	Capital
Six months ended	share	Share	warrant	redemption	Other	Capital	Revenue
31st March 2014	capital	premium	reserve	reserve	reserve	reserves	reserve	Total
(Unaudited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 30th September 2013	25,280	31,539	977	23,670	-	145,656	4,334	231,456
Repurchase of the Company's own   Ordinary shares for cancellation	(5,302)	-	-	5,302	-	(11,876)	-	(11,876)
Issue of Ordinary shares on exercise of   Subscription shares	4	28	-	-	-	-	-	32
Expenses in relation to tender offers	-	-	-	-	-	(68)	-	(68)
Net loss on ordinary activities	-	-	-	-	-	(3,131)	(175)	(3,306)
Dividends appropriated in the period	-	-	-	-	-	-	(2,491)	(2,491)
At 31st March 2014	19,982	31,567	977	28,972	-	130,581	1,668	213,747
	Called up		Exercised	Capital
Six months ended	share	Share	warrant	redemption	Other	Capital	Revenue
31st March 2013	capital	premium	reserve	reserve	reserve	reserves	reserve	Total
(Unaudited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 30th September 2012	37,337	31,503	977	11,622	34,499	203,905	4,453	324,296
Repurchase of the Company's own   Ordinary shares for cancellation	(10,550)	-	-	10,550	-	(91,749)	-	(91,749)
Issue of Ordinary shares on exercise   of Subscription shares	3	18	-	-	-	-	-	21
Net return/(loss) on ordinary activities	-	-	-	-	-	34,201	(321)	33,880
Dividends appropriated in the period	-	-	-	-	-	-	(2,564)	(2,564)
At 31st March 2013	26,790	31,521	977	22,172	34,499	146,357	1,568	263,884
	Called up		Exercised	Capital
Year ended	share	Share	warrant	redemption	Other	Capital	Revenue
30th September 2013	capital	premium	reserve	reserve	reserve	reserves	reserve	Total
(Audited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 30th September 2012	37,337	31,503	977	11,622	34,499	203,905	4,453	324,296
Repurchase of the Company's own   Ordinary shares for cancellation	(12,048)	-	-	12,048	(34,499)	(69,822)	-	(104,321)
Repurchase of Subscription shares   for cancellation	(12)	12	-	-	-	(339)	-	(339)
Issue of Ordinary shares on exercise   of Subscription shares	3	24	-	-	-	-	-	27
Expenses in relation to tender offers	-	-	-	-	-	(337)	-	(337)
Net return on ordinary activities	-	-	-	-	-	12,249	2,949	15,198
Dividends appropriated in the year	-	-	-	-	-	-	(3,068)	(3,068)
At 30th September 2013	25,280	31,539	977	23,670	-	145,656	4,334	231,456

Balance Sheet

at 31st March 2014

	(Unaudited)	(Unaudited)	(Audited)
	31st March 2014	31st March 2013	30th September 2013
	£'000	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	213,700	265,635	230,588
Current assets
Debtors	1,587	2,932	1,573
Cash and short term deposits	10,018	9,966	6,829
	11,605	12,898	8,402
Creditors: amounts falling due within one year	(11,558)	(14,647)	(7,534)
Derivative financial instruments held at fair value   through profit or loss	-	(2)	-
Net current assets/(liabilities)	47	(1,751)	868
Total assets less current liabilities	213,747	263,884	231,456
Net assets	213,747	263,884	231,456
Capital and reserves
Called up share capital	19,982	26,790	25,280
Share premium	31,567	31,521	31,539
Exercised warrant reserve	977	977	977
Capital redemption reserve	28,972	22,172	23,670
Other reserve	-	34,499	-
Capital reserves	130,581	146,357	145,656
Revenue reserve	1,668	1,568	4,334
Total equity shareholders' funds	213,747	263,884	231,456
Net asset value per Ordinary share - diluted (note 5)	222.3p	243.8p	227.8p
Net asset value per Ordinary share - undiluted (note 5)	223.7p	247.0p	229.6p

Cash Flow Statement

for the six months ended 31st March 2014

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	31st March 2014	31st March 2013	30th September 2013
	£'000	£'000	£'000
Net cash (outflow)/inflow from operating activities   (note 6)	(434)	(422)	3,866
Net cash outflow from returns on investments   and servicing of finance	(121)	(132)	(348)
Taxation recovered	-	40	40
Net cash inflow from capital expenditure and   financial investment	13,881	82,510	96,606
Dividend paid	(2,491)	(2,564)	(3,068)
Net cash outflow from financing	(7,495)	(80,993)	(100,553)
Increase/(decrease) in cash in the period	3,340	(1,561)	(3,457)
Reconciliation of net cash flow to movement   in net (debt)/funds
Net cash movement	3,340	(1,561)	(3,457)
Loans drawn down in the period	(4,418)	(13,285)	(6,966)
Exchange movements	(258)	(425)	(989)
Changes in net debt arising from cash flows	(1,336)	(15,271)	(11,412)
Net funds at the beginning of the period	654	12,066	12,066
Net (debt)/funds at the end of the period	(682)	(3,205)	654
Represented by:
Cash and short term deposits	10,018	9,966	6,829
Bank loans	(10,700)	(13,171)	(6,175)
Net (debt)/funds at the end of the period	(682)	(3,205)	654

Notes to the Accounts

for the six months ended 31st March 2014

1.    Financial statements

The information contained within the Financial Statements in this half year report has not been audited or reviewed by the Company's auditors.

The figures and financial information for the year ended 30th September 2013 are extracted from the latest published accounts of the Company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either 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 Capital Trusts', issued in January 2009.

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

The accounting policies applied in these half year accounts are consistent with those applied in the accounts for the year ended 30th September 2013.

3.   Dividend

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	31st March 2014	31st March 2013	30th September 2013
	£'000	£'000	£'000
Final dividend paid in respect of the year ended   30th September 2013 of 2.6p1 (2012: 2.4p)	2,491	2,564	3,068

¹Includes 2012 special dividend of 0.5p.

No interim dividend has been declared in respect of the six months ended 31st March 2014 (2013: nil).

4.   (Loss)/return per Ordinary share

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	31st March 2014	31st March 2013	30th September 2013
	£'000	£'000	£'000
(Loss)/return per share is based on the following:
Revenue (loss)/return	(175)	(321)	2,949
Capital (loss)/return	(3,131)	34,201	12,249
Total (loss)/return	(3,306)	33,880	15,198
Weighted average number of Ordinary shares in issue   during the period used for the purpose of the   diluted calculation	97,886,250	120,389,724	111,939,781
Weighted average number of Ordinary shares in issue   during the period used for the purpose of the   undiluted calculation	97,883,280	120,138,874	111,745,277
Diluted
Revenue (loss)/return per Ordinary share	(0.18)p	(0.27)p	2.63p
Capital (loss)/return per Ordinary share	(3.20)p	28.41p	10.94p
Total (loss)/return per Ordinary share	(3.38)p	28.14p	13.57p
Undiluted
Revenue (loss)/return per Ordinary share	(0.18)p	(0.27)p	2.64p
Capital (loss)/return per Ordinary share	(3.20)p	28.47p	10.96p
Total (loss)/return per Ordinary share	(3.38)p	28.20p	13.60p

The Company's Subscription shares expired and their rights lapsed on 31st March 2014.

The diluted (loss)/return per Ordinary share represents the (loss)/return on ordinary activities after taxation divided by the weighted average number of Ordinary shares in issue during the period as adjusted in accordance with the requirements of Financial Reporting Standard 22: 'Earnings per share'.

5.   Net asset value per Ordinary share

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	31st March 2014	31st March 2013	30th September 2013
Diluted
Ordinary shareholders' funds assuming exercise of   Subscription shares (£'000)	228,439	281,213	246,180
Number of potential Ordinary shares in issue	102,780,539	115,353,095	108,082,485
Net asset value per Ordinary share (pence)	222.3	243.8	227.8
Undiluted
Ordinary shareholders' funds (£'000)	213,747	263,884	231,456
Number of Ordinary shares in issue	95,543,244	106,816,558	100,829,335
Net asset value per Ordinary share (pence)	223.7	247.0	229.6

The Company's Subscription shares expired and their rights lapsed on 31st March 2014.

The diluted net asset value per Ordinary share assumes that all outstanding Subscription shares were converted into Ordinary shares at the period end.

6.   Reconciliation of net (loss)/return on ordinary activities before finance costs and taxation to net cash (outflow)/inflow from operating activities

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	31st March 2014	31st March 2013	30th September 2013
	£'000	£'000	£'000
Net (loss)/return on ordinary activities before finance costs and taxation	(3,062)	34,156	16,095
Add capital loss/less capital (return)	3,131	(34,201)	(12,500)
Scrip dividends received as income	-	-	(114)
(Increase)/decrease in accrued income	(515)	(193)	78
(Increase)/decrease in other debtors	(26)	(6)	5
(Decrease)/increase in accrued expenses	(84)	(54)	18
Overseas taxation	(118)	(124)	(600)
Expenses credited to capital	240	-	884
Net cash (outflow)/inflow from operating activities	(434)	(422)	3,866

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.

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

ENDS

A copy of the half year has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM

The half year will also shortly be available on the Company's website at www.jpmasian.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

 

END

 

 

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