Half Yearly Results

RNS Number : 4356E

JPMorgan Asian Investment Tst PLC

30 May 2012

 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN ASIAN INVESTMENT TRUST PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED

31ST MARCH 2012

Chairman's Statement

As reported in my statement that accompanied the financial results for the year ended 30th September 2011, the management of the Company's portfolio was moved to Hong Kong from Singapore and Jeff Roskell took over as the lead portfolio manager on 1st January 2012. Jeff inherited a portfolio that was defensively positioned and, in retrospect, it was too defensive during the sharp market rebound witnessed in January and early February. Much of the Company's underperformance in the reporting period is attributable to this. Jeff now has the portfolio where he wishes it to be and I can report that the Company outperformed our benchmark index in both March and April. J.P. Morgan Asset Management remains acutely aware of the need to see an improvement in both the Company's investment performance and in its competitive position in the AIC's Asia Pacific ex-Japan sector and retains the Board's full support in achieving this.

Performance

Over the six months ended 31st March 2012, the Company's portfolio return, net of fees and expenses was 12.0%. The return to Ordinary shareholders over the reporting period was 6.4%, reflecting a widening of the Company's discount from 7.0% to 10.9%. The Company's diluted return on net assets (which assumes that the Subscription shares outstanding at 31st March 2012 were all exercised at 176 pence per share and the impact of a move to calculate performance on a cum income basis) was 11.0%. The new method of calculating performance on a cum income basis

adversely affected performance by 1.3 percentage points. For more information on this move please refer to the glossary of terms on page 20 of the Company's Half-Year Report. The Company's benchmark returned 14.5%. A market review, commentary on portfolio activity and performance together with the outlook are set out in the accompanying Investment Manager's report.

Discount Management

In February 2012, 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 8,417,149 shares, representing 5% of the Company's then outstanding Ordinary shares, were repurchased at a price of 213.45 pence per share and were subsequently cancelled.

At the Annual General Meeting held in February 2012, Shareholders approved two further 5% conditional tender offers. These conditional tender offers could be implemented by the Board if the Ordinary shares traded at an average discount of more than 9% to their diluted cum income NAV over the six month periods ending 31st March 2012 and 30th September 2012. The first conditional tender offer was not implemented by the Board as the Company's average discount for the six months ended 31st March 2012 was under 9%.

The Board continues closely to monitor the level of discount at which the Company's Ordinary shares trade relative to their NAV and will use the Company's buyback powers to stabilise the discount, in normal market conditions, at between 8% and 10%. Given the high volatility in Asian markets witnessed over the last few months, the Board has, from time to time, refrained 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 30^th September 2011 and to the date of this Report, a total of 11,839,721 Ordinary shares have been bought back (this figure does not include the 8,417,149 shares bought back in respect of the 5% tender offer conducted in February 2012).

Subscription Shares

Shareholders are reminded that Subscription shares may be exercised on any business day until 31st March 2014, after which the rights on these shares will lapse. The Subscription share exercise price is now 203p per share, following the final price increase on 1st April 2012. In the six month period to 31st March 2012, 134,008 Subscription shares were converted into Ordinary shares, raising proceeds of £236,000. As at the date of this Report, and in advance of the step-up in exercise price, a further 3,035,512 Subscription shares have been exercised, so that a total of £33,454,000 has now been raised for investment by the Company since the Subscription shares were issued, with just over 73% of the original issue of Subscription shares being converted.

Further details on the Subscription shares, including the apportionments for capital gains tax purposes and how they may be exercised, can be found on the Company's website at www.jpmasian.co.uk and in the Company's Half-Year Report.

Gearing and Index Futures

The Company did not utilise its bank borrowings over the review period. Since taking over the management of the portfolio, Jeff Roskell has introduced index futures into the portfolio within guidelines set by the Board, which replicate the effect of traditional gearing. The current gearing factor inclusive of exposure via index futures is just over 100.

Outlook

The strong rise in Asian markets, which began at the end of last year, ended in March with growing investor concerns regarding China's slowing economy and, more recently, renewed uncertainty in the Eurozone. Your Board will continue carefully to monitor the Manager's performance and very much hope to be able to report positive progress in the second half of the financial year.

James M Long

Chairman

30th May 2012

Investment Manager's Report

Market Review

The MSCI AC Asia ex Japan Index rose 14.5% in sterling terms in the six months ended 31st March 2012, although it remained highly volatile over that period. Having fallen sharply in the third quarter of calendar year 2011, due to European debt concerns and a slowdown in China, Asian markets started to recover during October as recessionary fears receded. Markets received a further boost when The People's Bank of China cut its Required Reserve Ratio by 0.5% at the end of November, effectively ending almost two years of monetary tightening in China. Asian markets began 2012 strongly, triggered by a range of catalysts, including supportive valuations, fading inflationary pressures in Asia, improved economic data from the United States and investor support for the long term refinancing operation ('LTRO') by the European Central Bank. However, a rising oil price and generally poor earnings results across the region started to weigh on market sentiment as the quarter progressed. Towards the end of March 2012, concerns grew over China's slowing economy and a slower than expected monetary policy response from the Chinese Central Bank.

In the review period, Thailand was the strongest performing market helped by post-flood spending and generally strong domestic consumption. Conversely India was the worst performing market, as it was dragged down in the last quarter of 2011 by a falling currency, poor earnings and concerns over policy paralysis at government level. After having outperformed strongly early in 2011, Indonesia was impacted by profit taking and concerns over rising inflation.

Portfolio Activity

As reported by the Chairman in his statement, I took over as the named investment manager of this Company's portfolio on 1st January 2012. At the start of 2012 and before any transactions, the Company was overweight in Indonesia and Thailand and held a number of high conviction mid-cap stocks. In addition, the portfolio had a defensive bias, with a higher than usual concentration of tobacco and telecom stocks from around the region, and also held a net cash position of around 4%. Since then I have sought to reduce the level of cyclicality in the portfolio and raise consumer type exposure through acquiring companies, trading on sensible multiples, which we believe will continue to grow and outperform the market. This has resulted in an increased exposure to Hong Kong and China and the portfolio maintaining an overweight position in Indonesia and Thailand. The biggest underweights are in Malaysia and Taiwan.

As was previously the case, domestic consumption in South-East Asia remains a key strategy for the portfolio. However, it was deemed prudent to trim a number of the portfolio's outsized positions in holdings such as Astra International. As a cheaper alternative, an investment in Jardine Strategic was initiated, which derives a significant part of its earnings from Astra. Furthermore, holdings in several Indonesian banks including Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia were sold. Similarly in Thailand, the portfolio's overweight position in telecom company Advanced Info Service was reduced and the position in oil-based refiner Siam Cement was switched to gas-based refiner PTT Global Chemical, given the latter's lower cost of feedstock.

Significant changes to our investments in Hong Kong and China have been made and the portfolio's overall allocation to these markets has been increased following their underperformance in 2011. A holding in China Mobile was initiated and weightings increased in consumer stocks such as Intime Department Store and Ports Design, whilst positions in cyclical stocks such as China Eastern Airlines, Anhui Conch Cement and China National Building Material have been sold or reduced. In Hong Kong property companies, Kerry Properties and New World Development, have been introduced and Chinese property companies China Overseas Land, Poly (Hong Kong) Investments and China Resources Land sold to fund these purchases. In Taiwan President Chain Store and Chunghwa Telecom were sold and positions in technology names such as Taiwan Semiconductor Manufacturing, Hon Hai Precision Industry and Foxconn Technology added.

In Korea, a position in KiaMotors was established at the expense of Mando and LG Household & Healthcare was added following the sale of Amorepacific and KT&G. Advantage was also taken of the market rally to trim positions in shipbuilders such as Hyundai Heavy Industries. Additionally, several mid-cap stocks were exited including China Windpower, Midas, Overseas Union Enterprise and Otto Marine.

Performance

At the portfolio level, the Company returned 12.0% net of management fees and expenses, underperforming the benchmark's return of 14.5%. Much of this underperformance can be attributed to, in retrospect, the portfolio, albeit in transition, retaining too much of a defensive bias through the sharp market rebound in January and early February 2012. The portfolio transition is however now largely complete and we did see some recovery in relative performance in both March and April.

Dissecting the contributions to total returns, within stock selection, Korea, Taiwan and India were the key detractors. On the positive side, stock selection in Hong Kong and in China was strong. The portfolio not being geared, and holding a circa 3% average cash position in a rising market, also cost performance.

In Korea, the key detractors were our overweight positions in auto-part companies Mando and Hyundai Mobis. The share price of both companies fell due to margin concerns in the fourth quarter of last year. Lock & Lock, another major holding in the portfolio at the start of the period but now sold, was another detractor to performance. The producer of plastic food containers lagged the market rally on earnings downgrades.

In Taiwan, stock selection in the technology sector also detracted from performance. For example, we did not hold, but acquired during the period, Hon Hai Precision Industry, a company that provides assembly for many Apple products and which rose by 67% over the period. The company released earnings that were stronger than expected, driven by new orders from Apple as well as margin improvement. On the other hand, we owned names such as TPK and E Ink, which both fell over the period due to concerns over order trends. In India, overweights in telecommunications company, Bharti Airtel, and cigarette company, ITC, detracted from performance. Both stocks underperformed the market rally, the former due to worries over rising competitive pressure and the latter due to its defensive low-beta characteristics.

On the positive side, stock selection in Hong Kong was very strong. Our overweight in Macau gaming stocks (e.g. Galaxy Entertainment and Sands China) boosted relative performance given these companies' strong revenue growth. In addition, after falling sharply in August and September 2011, key China positions such as our overweight in Chinese banks (e.g. Agricultural Bank of China), property (e.g. China Overseas Land) and building materials (e.g. China National Building Material Co.), all emerged as top contributors over the period under review. Performance was also assisted by an underweight in Chinese telecom stocks such as China Mobile and China Unicom which lagged the market rally.

Market Outlook

Looking ahead, the positives and negatives seem evenly balanced. In Asia, valuations are still enticing. There are plenty of companies with strong balance sheets, experienced management and solid growth prospects to populate a conviction

portfolio. We expect conditions in the West to be similar to that in the previous year, i.e. with low interest rates but also lower growth. Concerns regarding the Eurozone, particularly the future of Greece, continue to stall any recovery in risk assets. However, we believe sentiment in the Asia region should turnaround in the second half of 2012 provided that policy cooperation within the Eurozone remains on track. Whether Central banks will be easing monetary policy cannot be predicted with certainty yet.

We continue to adopt a bottom-up stock picking approach and aim to buy stocks that deliver sustainable growth and returns to shareholders at a reasonable price. As reported earlier, a key theme in the portfolio is consumption, which is manifested in an overweight in Chinese retailers, Macau gaming stocks, Thai food companies, Indonesian motorcycle companies (directly and indirectly) and in banks in India and Thailand. We continue to have a preference for Korea over Taiwan in the portfolio. Valuations are lower, the currency remains favourable for exporters and Korea will continue to take market share on a global stage. We are also positive on the smartphone industry supply chain in Asia, which includes names such as Samsung Electronics as well as some of the Taiwanese suppliers to Apple.

Jeff Roskell

Investment Manager

30th May 2012

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 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 2011.

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

(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.

For and on behalf of the Board

James M Long
Chairman

30th May 2012

For further information, please contact:

Alison Vincent

For and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary

020 7742 4000

Please note that up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can be found at www.jpmasian.co.uk

Unaudited figures for the six months ended 31st March 2012

Income Statement

for the six months ended 31st March 2012

	(Unaudited) Six months ended 31st March 2012			(Unaudited) Six months ended 31st March 2011			(Audited) Year ended 30th September 2011
	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	-	36,997	36,997	-	25,632	25,632	-	(91,982)	(91,982)
Net foreign currency losses	-	(124)	(124)	-	(442)	(442)	-	(19)	(19)
Income from investments	1,478	-	1,478	1,726	-	1,726	9,163	-	9,163
Other interest receivable and similar income	4	-	4	7	-	7	12	-	12
Gross return/(losses)	1,482	36,873	38,355	1,733	25,190	26,923	9,175	(92,001)	(82,826)
Management fee	(1,185)	-	(1,185)	(1,520)	-	(1,520)	(2,964)	-	(2,964)
Other administrative expenses	(411)	-	(411)	(469)	-	(469)	(835)	-	(835)
Net (loss)/return on ordinary activities before finance costs and taxation	(114)	36,873	36,759	(256)	25,190	24,934	5,376	(92,001)	(86,625)
Finance costs	(134)	-	(134)	(322)	-	(322)	(592)	-	(592)
Net (loss)/return on ordinary activities before taxation	(248)	36,873	36,625	(578)	25,190	24,612	4,784	(92,001)	(87,217)
Taxation	(141)	-	(141)	(185)	-	(185)	(955)	-	(955)
Net (loss)/return on ordinary activities after taxation	(389)	36,873	36,484	(763)	25,190	24,427	3,829	(92,001)	(88,172)
(Loss)/return per Ordinary share - diluted (note 4)	(0.23)p	22.27p	22.04p	(0.43)p	14.14p	13.71p	2.19p	(52.73)p	(50.54)p
(Loss)/return per Ordinary share - undiluted (note 4)	(0.24)p	22.42p	22.18p	(0.44)p	14.37p	13.93p	2.23p	(53.55)p	(51.32)p

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 2012	capital	premium	reserve	reserve	reserve	reserves	reserve	Total
(Unaudited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 30th September 2011	42,196	26,679	977	6,002	79,874	173,517	4,292	333,537
Repurchase of the Company's own Ordinary shares for cancellation	(4,383)	-	-	4,383	(36,009)	-	-	(36,009)
Exercise of Subscription shares into Ordinary shares	(1)	1	-	-	-	-	-	-
Issue of Ordinary shares on exercise of Subscription shares	34	208	-	-	-	-	-	242
Net return/(loss) on ordinary activities	-	-	-	-	-	36,873	(389)	36,484
Dividend appropriated in the period	-	-	-	-	-	-	(3,675)	(3,675)
At 31st March 2012	37,846	26,888	977	10,385	43,865	210,390	228	330,579
	Called up		Exercised	Capital
Six months ended	share	Share	warrant	redemption	Other	Capital	Revenue
31st March 2011	capital	premium	reserve	reserve	reserve	reserves	reserve	Total
(Unaudited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 30th September 2010	44,371	26,438	977	3,789	100,436	265,518	3,473	445,002
Repurchase of the Company's own Ordinary shares for cancellation	(2,213)	-	-	2,213	(20,527)	-	-	(20,527)
Exercise of Subscription shares into Ordinary shares	(1)	1	-	-	-	-	-	-
Issue of Ordinary shares on exercise of Subscription shares	20	118	-	-	-	-		138
Net return/(loss) on ordinary activities	-	-	-	-	-	25,190	(763)	24,427
Dividend appropriated in the period	-	-	-	-	-	-	(3,010)	(3,010)
At 31st March 2011	42,177	26,557	977	6,002	79,909	290,708	(300)	446,030
	Called up		Exercised	Capital
Year ended	share	Share	warrant	redemption	Other	Capital	Revenue
30th September 2011	capital	premium	reserve	reserve	reserve	reserves	reserve	Total
(Audited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 30th September 2010	44,371	26,438	977	3,789	100,436	265,518	3,473	445,002
Repurchase of the Company's own Ordinary shares for cancellation	(2,213)	-	-	2,213	(20,562)	-	-	(20,562)
Exercise of Subscription shares into Ordinary shares	(2)	2	-	-	-	-	-	-
Issue of Ordinary shares on exercise of Subscription shares	40	239	-	-	-	-	-	279
Net (loss)/return on ordinary activities	-	-	-	-	-	(92,001)	3,829	(88,172)
Dividend appropriated in the year	-	-	-	-	-	-	(3,010)	(3,010)
At 30th September 2011	42,196	26,679	977	6,002	79,874	173,517	4,292	333,537

Balance Sheet

at 31st March 2012

	(Unaudited)	(Unaudited)	(Audited)
	31st March 2012	31st March 2011	30th September 2011
	£'000	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	320,515	452,851	320,030
Current assets
Debtors	7,285	4,244	4,129
Cash and short term deposits	3,281	6,136	20,570
Derivative financial instruments held at fair value through profit or loss	38	-	-
	10,604	10,380	24,699
Creditors: amounts falling due within one year
Bank loans	-	(11,229)	-
Other creditors	(540)	(5,972)	(2,843)
Derivative financial instruments held at fair value through profit or loss	-	-	(4)
Net current assets/(liabilities)	10,064	(6,821)	21,852
Total assets less current liabilities	330,579	446,030	341,882
Creditors: amounts falling due after more than one year
Bank loans	-	-	(8,345)
Net assets	330,579	446,030	333,537
Capital and reserves
Called up share capital	37,846	42,177	42,196
Share premium	26,888	26,557	26,679
Exercised warrant reserve	977	977	977
Capital redemption reserve	10,385	6,002	6,002
Other reserve	43,865	79,909	79,874
Capital reserves	210,390	290,708	173,517
Revenue reserve	228	(300)	4,292
Total equity shareholders' funds	330,579	446,030	333,537
Net asset value per Ordinary share - diluted (note 5)	216.0p	259.3p	196.7p
Net asset value per Ordinary share - undiluted (note 5)	219.0p	265.1p	198.2p

Cash Flow Statement

for the six months ended 31st March 2012

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	31st March 2012	31st March 2011	30th September 2011
	£'000	£'000	£'000
Net cash (outflow)/inflow from operating activities (note 6)	(797)	(1,141)	3,958
Net cash outflow from returns on investments and servicing of finance	(170)	(313)	(553)
Taxation paid	-	-	(80)
Net cash inflow from capital expenditure and financial investment	31,601	33,037	45,141
Dividend paid	(3,675)	(3,010)	(3,010)
Net cash outflow from financing	(43,829)	(53,348)	(56,759)
Decrease in cash in the period	(16,870)	(24,775)	(11,303)
Reconciliation of net cash flow to movement in net debt
Net cash movement	(16,870)	(24,775)	(11,303)
Loans repaid	8,054	33,055	36,474
Exchange movements	(128)	(447)	(20)
Changes in net funds/debt arising from cash flows	(8,944)	7,833	25,151
Net funds/(debt) at the beginning of the period	12,225	(12,926)	(12,926)
Net funds/(debt) at the end of the period	3,281	(5,093)	12,225
Represented by:
Cash and short term deposits	3,281	6,136	20,570
Bank loans	-	(11,229)	(8,345)
Net funds/(debt) at the end of the period	3,281	(5,093)	12,225

Notes to the Accounts

for the six months ended 31st March 2012

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 2011 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 2011.

3.   Dividend

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended	Six months ended	Year ended
		31st March 2012	31st March 2011	30th September 2011
		£'000	£'000	£'000
	Final dividend paid in respect of the year ended
	30th September 2011 of 2.20p (2010: 1.70p)	3,675	3,010	3,010

      No interim dividend has been declared in respect of the six months ended 31st March 2012 (2011: nil).

4.   (Loss)/return per Ordinary share

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended	Six months ended	Year ended
		31st March 2012	31st March 2011	30th September 2011
		£'000	£'000	£'000
	(Loss)/return per share is based on the following:
	Revenue (loss)/return	(389)	(763)	3,829
	Capital return/(loss)	36,873	25,190	(92,001)
	Total return/(loss)	36,484	24,427	(88,172)
	Weighted average number of Ordinary shares in issue during the period used for the purpose of the diluted calculation	165,561,998	178,199,472	174,464,515
	Weighted average number of Ordinary shares in issue during the period used for the purpose of the undiluted calculation	164,496,435	175,349,320	171,802,870
	Diluted
	Revenue (loss)/return per Ordinary share	(0.23)p	(0.43)p	2.19p
	Capital return/(loss) per Ordinary share	22.27p	14.14p	(52.73)p
	Total return/(loss) per Ordinary share	22.04p	13.71p	(50.54)p
	Undiluted
	Revenue (loss)/return per Ordinary share	(0.24)p	(0.44)p	2.23p
	Capital return/(loss) per Ordinary share	22.42p	14.37p	(53.55)p
	Total return/(loss) per Ordinary share	22.18p	13.93p	(51.32)p

      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 2012	31st March 2011	30th September 2011
	Diluted
	Ordinary shareholders' funds assuming exercise of Subscription shares (£'000)	350,963	466,798	354,163
	Number of potential Ordinary shares in issue	162,503,781	180,035,651	180,035,651
	Net asset value per Ordinary share (pence)	216.0	259.3	196.7
	Undiluted
	Ordinary shareholders' funds (£'000)	330,579	446,030	333,537
	Number of Ordinary shares in issue	150,922,005	168,235,868	168,316,005
	Net asset value per Ordinary share (pence)	219.0	265.1	198.2

      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 return/(loss) 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 2012	31st March 2011	30th September 2011
		£'000	£'000	£'000
	Net return/(loss) on ordinary activities before finance costs and taxation	36,759	24,934	(86,625)
	Less capital (return)/loss before finance costs and taxation	(36,873)	(25,190)	92,001
	Scrip dividends received as income	-	-	(551)
	(Increase)/decrease in accrued income	(479)	(566)	114
	(Increase)/decrease in other debtors	(19)	(31)	6
	Decrease in accrued expenses	(38)	(29)	(14)
	Overseas taxation	(147)	(206)	(920)
	Performance fee paid	-	(53)	(53)
	Net cash (outflow)/inflow from operating activities	(797)	(1,141)	3,958

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.hemscott.com/nsm.do

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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