Final Results

RNS Number : 8762O

JPMorgan Overseas IT PLC

23 September 2011

 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN OVERSEAS INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 30TH JUNE 2011

Chairman's Statement

During the year ended 30th June 2011 global equity markets continued to rise, although they remained volatile and we have since witnessed a severe market setback. The portfolio produced a return on net assets of 24.6%, which compared favourably with the Company's benchmark, the MSCI AC World Index (expressed in sterling terms), which recorded a total return of 21.3% over the year. Once again, this performance relative to the benchmark was largely attributable to good stock selection, boosted by being geared into a rising market. The return to shareholders of 16.1% reflected the movement of the share price from a premium of 5.9% to a narrow discount of 1.5% over the year.

The Investment Manager's Report provides a detailed commentary on the Company's investment strategy and performance. The Board is satisfied with the Investment Manager's performance over the past year and continues to support his high conviction approach of selecting stocks based on their strong financial position, quality of management and growth potential as identified by the J. P. Morgan worldwide research organisation.

It is pleasing to reflect upon the table on page 11 of the 2011 Annual Report and Accounts that shows the outperformance achieved by the Company since Jeroen Huysinga assumed responsibility for the management of the portfolio in October 2008.

Dividends

The Directors are proposing, subject to shareholders' approval at the Annual General Meeting ('AGM'), to pay an increased final dividend of 13.5 pence per share (2010: 13.0 pence) on 25th November 2011 to shareholders on the register at the close of business on 4th November 2011. The Company's principal aim is to maximise capital growth so as to give shareholders the advantage of the more benign tax rate on capital gains. The Board does however appreciate that many shareholders do like to receive a dividend rather than have to sell shares to obtain income.

Share Issuance and Discount Management Policy

The Board believes that share issuance at a premium which grows the Company is of benefit to shareholders as it results in operating costs being spread over a larger capital base; tempers the premium at which the share price trades to net asset value ("NAV"); marginally enhances the NAV per share of existing shares; and, improves liquidity in the market for the Company's shares. I am pleased to report that during the year, the Company reissued a total of 351,000 shares from Treasury at a premium to the prevailing NAV, representing 1.4% of the shares outstanding at the beginning of the year. The total proceeds amounted to £3.1 million. At the year end, a total of 96,966 shares were held in Treasury. Any shares held in Treasury will only be reissued at a premium. Since the year end, a further 40,000 shares have been reissued from Treasury for a total consideration of £288,000. Resolutions renewing the authorities to issue shares from Treasury and to issue new shares at a premium to NAV, and to disapply pre-emption rights over such issues, will also be submitted for approval at the AGM.

The Board will continue to manage the volatility and the absolute level of discount at which the share price can trade relative to their NAV at around 5% if it should become necessary, by means of repurchases of the Company's shares in the market. Over the year, the share price discount / premium to NAV ranged between a discount of 1.5% and premium of 5.9%.  At the year end it stood at a discount of 1.5%.

No shares were bought into Treasury or for cancellation during the year. A resolution to renew the authority to permit the Company to continue to repurchase shares will be submitted to the AGM.

Total Expense Ratio

The Board continues to maintain a close watch on the costs of operating your Company to ensure that they are kept to a minimum. The Company's total expense ratio (management expenses expressed as a percentage of the average of the month end net assets during the year) was 0.64% for the year ended 30th June 2011 (2010: 0.65%). 

Gearing

Gearing is regularly discussed between the Board and the Investment Manager. A new increased three year borrowing facility of £25 million was negotiated with Scotiabank in July this year upon expiry of the previous £20 million facility with ING Bank. This facility is flexible and can be used tactically as investment opportunities present themselves. Throughout the year, £17.8 million of the £20 million facility was drawn to enhance the potential gains. This represented a gearing level of 7.4% of net assets at 30th June 2011, although this has been reduced to zero since 14th July 2011.

Currency Hedging

The Company continues its passive currency hedging strategy (implemented in late 2008) that aims to make stock selection the predominant driver of overall portfolio performance relative to the benchmark, the MSCI Word AC Index. This is a risk reduction measure, designed to eliminate most of the differences between the portfolio's currency exposure and that of the Company's benchmark. As a result the returns derived from, and the portfolio's exposure to currencies may differ materially from that of the Company's competitors in the AIC Global Growth sector, who generally do not undertake such a strategy.

The Board

I succeeded George Paul as Chairman of the Nomination Committee and of the Board following the 2010 AGM. Dick Barfield also retired from the Board at the last AGM, following the appointment of Nigel Wightman. Having served as a Director since 2001, John Rennocks has indicated his intention to step down from the Board at the conclusion of the 2012 AGM. The Board will therefore review the recruitment position towards the end of this year, with a view to appointing a new director in early 2012.

The Board supports the introduction of annual re-election for all Directors, as recommended by the UK Corporate Governance Code, and therefore all of the Directors will stand for re-election at the forthcoming AGM.

Annual General Meeting

My fellow Directors and I invite you to attend the Company's AGM which will be held at Trinity House, Tower Hill, London EC3N 4DH on Tuesday, 25th October 2011 at 12.00 noon. An investment presentation will be made at the meeting by Jeroen Huysinga. If you have any detailed or technical questions, please submit these in advance of the meeting in writing, or via the Company's website, to the Company Secretary whose contact details are shown on page 61 of the 2011 Annual Report and Accounts. Shareholders who are unable to attend the AGM in person are encouraged to use their proxy votes.

The AGM will be followed by refreshments and there will be an opportunity for shareholders to meet the Directors and the Investment Manager. I hope to have the pleasure of meeting you then.

Simon Davies

Chairman

23rd September 2011

Investment Manager's Report

Market Review

Equity markets performed strongly over the 12 months to end of June 2011, with the MSCI All Country World Index rising 21.3% in sterling terms.

The period started very well, with the MSCI All Country World Index rising 19% during the second half of 2010, in sterling terms. Advances were driven principally by exceptional growth in corporate profitability. In an environment of very low interest rates throughout most of the developed world, there were signs of positive economic growth. The announcement by the US Federal Reserve of plans to boost the supply of money ('QE2') in a bid to stimulate economic activity led to a rush to risk assets towards the end of 2010, as fears of a double dip recession in the US dissipated.

Cyclical sectors, for example, autos and industrials, outperformed more defensive sectors, such as utilities, over the period. This trend reversed in the second quarter of 2011 as investors grappled with growing evidence of low growth and stubbornly high levels of unemployment in the developed world along with signs of overheating in emerging markets. Inflation rates in many key emerging markets, such as China and India, rose and triggered a tightening response from central banks. Investor sentiment was further hit following several significant events, including the Japanese earthquake, political unrest in North Africa and the Middle East and sovereign debt challenges within the Eurozone.

Despite these factors, corporate profitability remained robust during the first half of 2011 with companies continuing to report both earnings and revenues ahead of analyst expectations.

The best performing markets over the year were the US and the UK, while Japan lagged the index, in local currency terms. Emerging markets also underperformed, marking a reversal on earlier 2010 performance.

Portfolio Review

The portfolio outperformed the benchmark over the year, driven by positive stock selection across a number of sectors, notably in basic industries where stocks that we had held in the portfolio for some time performed very well, including Rhodia and First Quantum Minerals, which both rose more than 100%.

Portfolio performance was strong across most regions, particularly in Continental Europe. Our underweight position in the US as well as weak stock selection here (for example; Staples, Cisco and Citigroup) detracted from returns.

Below are comments on some of the key stock contributors to performance over the year:

In April 2011, Rhodia, a French speciality chemicals company, agreed to be acquired by Solvay, at a premium to the prevailing stock price of 50%. Rhodia had been one of our largest holdings because we felt that the market had underestimated its exposure to the growth in consumer chemicals and advanced materials. Following the offer, we sold our position in Rhodia and initiated a holding in Solvay. The deal created a global chemicals company with leadership in a number of attractive activities. It is very seldom that we have been so constructive about the industrial logic and the pricing of a corporate deal.

Biogen Idec, a US biotechnology company, was a significant performer over the period. We correctly identified the potential for this company to make large advances in therapies for multiple sclerosis. This is a high growth global market which is currently worth around $11 billion and Biogen is a smaller company which is well positioned to capture this growth. The company has also developed a strong pipeline which includes promising compounds in areas such as Haemophilia. All this gives us confidence in the company's revenue growth projections which are well above those of its industry peers.

Hutchinson Whampoa, listed in Hong Kong, is a conglomerate with exposure to a wide range of activities including ports, retail, energy and telecoms. When we bought the stock in June 2010 it was for a combination of very good value and a number of potential catalysts. These catalysts included operational improvements in Husky (energy) and the retail business as well as the fact that the Chairman had been adding significantly to his already sizable stake in the company. We sold Hutchinson towards the end of the financial period after many of these features became more widely appreciated at levels where the stock was no longer cheap in a global context.

Both Nokian, listed in Finland, and Continental, Germany, were outstanding performers during the review period. Both companies have a strong presence in the tyre industry. Structurally, we like this industry because of long-standing price discipline and reliance on a relatively stable spares business. Additionally, Nokian is a market leader in the fast-growing Russian tyre market which is close to experiencing capacity shortage. Continental also operates a number of automotive components activities which have been shaped to capture secular growth in sub-segments of the industry such as fuel efficiency and safety. Both stocks still represent important positions in the portfolio.

Recent Markets

Since the end of the review period, markets have experienced extreme volatility which has tested many investment processes. Despite the economic difficulties building in 2011 across the developed world, equity markets had remained reasonably resilient. From the end of July, however, a number of developments amplified the economic concerns highlighted above and led to a steep sell-off in equities.

The principal areas of concern have been in the Eurozone, where investors have lost patience with the lack of decisive actions from policy makers over the European sovereign debt crisis. Additionally the decision by Standard & Poor's to downgrade US Treasury debt and the subsequent flight to quality pushed US Treasury rates to near historic lows. Throughout the turmoil signs have emerged that growth is slowing globally.

We see parallels between recent months and periods of similar stress in 1998, 2002/3 and 2008. On each occasion, the valuation gap between companies which were large, solid and well capitalised and companies which were more economically sensitive and prone to volatility rose to excessive levels. At times such as this, experience tells us that it is has never been right to change the portfolio dramatically. We continue to invest with a long term view and we believe that there are many positive fundamental factors today that support the case for a disciplined valuation based investment approach.

Market Outlook

In contrast to 2008, corporate earnings results have been very strong, despite the modest economic growth in developed markets. The balance sheets of many companies are robust with significant cash balances and well-positioned debt maturity profiles. Although we are very mindful of how upbeat companies were shortly before the Lehman crisis in 2008 it is important to focus on the differences as they relate to corporate health, inventory ratios, banks' willingness to lend and the absolute level of activity in such areas as US housing and automotive sales.

Emerging markets remain a vital source of long-term growth potential. The consumer purchasing power of the developing world continues to expand and the pace of technological innovation is rapid. Many companies which are exposed to these trends are based in the US and Europe. Oil prices have declined significantly in recent months which may provide a boost to disposable income and consumer spending. Other sources of rising inflation in emerging markets such as vegetable and pork prices appear to be levelling out or decelerating.

We fully expect the economic recovery to be slow and drawn out in many developed markets, as is frequently the case in the aftermath of a financial crisis. The current Federal Reserve policy is very accommodative and it has been made abundantly clear that policy will not be tightened soon and that additional measures will be utilised as necessary to support the economy. Globally it would seem likely that both Europe and China will become more accommodative in the coming months.

Portfolio Positioning

With economically sensitive companies having been hit the hardest in recent months this has resulted in some attractive investment opportunities. While we have not changed the overall stock-specific risk profile of the portfolio, we have made some selective changes, switching between companies in response to the dramatic price moves we have seen. Given the significant market uncertainty all gearing in the portfolio was removed in July.

Geographically, our focus on companies which are cheap relative to global peers has led to the portfolio being positioned away from the US and towards Europe and the UK. While this has not been successful in the short term, the valuation disparity between these two markets has become overwhelming. A large proportion of our underweight position in the US is driven by no exposure to a handful of extremely large consumer staple companies which are simply too expensive in their global context. Holdings in companies such as Anheuser-Busch Inbev, Associated British Foods and Japan Tobacco provide us with exposure to interesting themes in this sector at valuations which are much lower than those of US peers.

Valuation is also preventing us from building aggressive positions directly in Emerging Markets. We have been very happy, however, to add to, or introduce, new holdings which have significant exposure to those markets while domiciled in developed markets. Here we would highlight not only Telenor, which is listed in Norway but has earnings forecasts which are driven by growth in Asian subsidiaries, but also Ericsson, Kuehne & Nagel and ABB.

We continue to be underexposed to banks within the portfolio. Indeed this is the one area where we have cut some positions in recent months given increased uncertainty within the Eurozone. Proceeds have been redeployed into US companies such as Wells Fargo and Capital One, both of which have developed powerful competitive advantages within their markets and are selling at valuations which are not reflective of their strength.

Despite recent setbacks, equity valuations are attractive and our opportunities to outperform continue to stem from our ability to look through any short-term market volatility, focussing on the long-term valuations and the earnings prospects of the many companies which comprise our research universe. We continue to draw on the expertise of our career research analysts based around the world, identifying companies which are cheap relative to global peers based on a long-term valuation methodology, companies for which we forecast significant earnings growth and companies with sufficient catalysts to ensure that our insight is rewarded within an acceptable period of time.

Jeroen Huysinga

Investment Manager

23rd September 2011

Principal Risks

With the assistance of the Manager, the Board has drawn up a risk matrix, which identifies the key risks to the Company.

These key risks fall broadly under the following categories:

•           Investment and Strategy: An inappropriate investment strategy, for example asset allocation or the level of gearing, may lead to under-performance against the Company's benchmark index and peer companies, resulting in the Company's shares trading on a wider discount. The Board manages these risks by diversification of investments through its investment restrictions and guidelines which are monitored and reported by the Manager. JPMAM provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, liquidity reports and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Manager, who attends all Board meetings, and reviews data which show statistical measures of the Company's risk profile. The Investment Manager employs the Company's gearing within a strategic range set by the Board. The Board may hold a separate meeting devoted to strategy each year.

•           Market: Market risk arises from uncertainty about the future prices of the Company's investments. It represents the potential loss that the Company might suffer through holding investments in the face of negative market movements. The Board considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines, which are monitored and reported on by JPMAM. The Board monitors the implementation and results of the investment process with the Manager.

•           Accounting, Legal and Regulatory: In order to qualify as an investment trust, the Company must comply with Section 1158 of the Corporation Taxes Act 2010 ('Section 1158'). Details of the Company's approval are given under "Business of the Company" above. Were the Company to breach Section 1158, it might lose investment trust status and, as a consequence, gains within the Company's portfolio could be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by JPMAM and the results reported to the Board each month. The Company must also comply with the provisions of The Companies Act 2006 and, since its shares are listed on the London Stock Exchange, the UKLA Listing Rules. A breach of the Companies Act 2006 could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the UKLA Listing Rules could result in the Company's shares being suspended from listing, which in turn would breach Section 1158. The Board relies on the services of its Company Secretary, JPMAM to ensure compliance with the Companies Acts and The UKLA Listing Rules.

•           Corporate Governance and Shareholder Relations: Details of the Company's compliance with Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance report on pages 24 to 27.

•           Operational: Loss of key staff by JPMAM, such as the Investment Manager, could affect the performance of the Company. Disruption to, or failure of, JPMAM's accounting, dealing or payments systems or the custodian's records could prevent accurate reporting and monitoring of the Company's financial position. Details of how the Board monitors the services provided by JPMAM and its associates and the key elements designed to provide effective internal control are included with the Internal Control section of the Corporate Governance report on page 27.

•           Financial: The financial risks faced by the Company include market price risk, interest rate risk, liability risk and credit risk. Further details are disclosed in note 26 on pages 48 to 54.

Future Developments

Clearly, the future development of the Company is much dependent upon the success of the Company's investment strategy in the light of economic and equity market developments. The Investment Manager discusses the outlook in his report on page 7.

Statement of Directors' Responsibilities

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

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

•           select suitable accounting policies and then apply them consistently;

•           make judgements and estimates that are reasonable and prudent;

•           state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•           prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

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

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The accounts are published on the www.jpmoverseas.co.uk website, which is maintained by the Company's Manager, J.P. Morgan Asset Management (UK) Limited ('JPMAM'). The maintenance and integrity of the website maintained by JPMAM is, so far as it relates to the Company, the responsibility of JPMAM.

Statement under the Disclosure & Transparency Rules 4.1.12

(a) the accounts, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

(b) this Annual Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that they face.

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.jpmmidcap.co.uk.

For further information please contact:

Divya Amin

For and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary

020 7742 6000

 

Income Statement

for the year ended 30th June 2011

		2011			2010
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair   value through profit or loss		-	45,596	45,596	-	41,974	41,974
Net foreign currency (losses)/gains		-	(3,243)	(3,243)	-	5,282	5,282
Income from investments		5,232	-	5,232	3,927	-	3,927
Other interest receivable and similar income		70	-	70	35	-	35
Gross return		5,302	42,353	47,655	3,962	47,256	51,218
Management fee		(455)	(455)	(910)	(362)	(362)	(724)
Performance fee		-	(262)	(262)	-	(2,540)	(2,540)
Other administrative expenses		(472)	-	(472)	(458)	-	(458)
Net return on ordinary activities before finance costs and taxation		4,375	41,636	46,011	3,142	44,354	47,496
Finance costs		(223)	(223)	(446)	(93)	(93)	(186)
Net return on ordinary activities before taxation		4,152	41,413	45,565	3,049	44,261	47,310
Taxation		(408)	-	(408)	(298)	-	(298)
Net return on ordinary activities after taxation		3,744	41,413	45,157	2,751	44,261	47,012
Return per share (note 3)		14.51p	160.52p	175.03p	10.65p	171.28p	181.93p

Details of the proposed dividend are given in note 2.

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

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		Capital
	share	Share	redemption	Capital	Revenue
	capital	premium	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
At 30th June 2009	6,544	-	27,401	93,721	17,804	145,470
Repurchase of shares into Treasury	-	-	-	(2,599)	-	(2,599)
Net return on ordinary activities	-	-	-	44,261	2,751	47,012
Dividends appropriated in the year	-	-	-	-	(2,970)	(2,970)
At 30th June 2010	6,544	-	27,401	135,383	17,585	186,913
Re-issue of shares from Treasury	-	970	-	2,130	-	3,100
Net return on ordinary activities	-	-	-	41,413	3,744	45,157
Dividends appropriated in the year	-	-	-	-	(3,343)	(3,343)
At 30th June 2011	6,544	970	27,401	178,926	17,986	231,827

Balance Sheet

at 30th June 2011

		2011	2010
		£'000	£'000
Fixed assets
Investments held at fair value through profit or loss		248,913	198,288
Investment in liquidity fund held at fair value through profit or loss		3,430	1,100
Total investments		252,343	199,388
Current assets
Financial assets: Derivative financial instruments		3,027	4,126
Debtors		1,501	1,204
Cash and short term deposits		875	637
		5,403	5,967
Creditors: amounts falling due within one year		(21,989)	(12,824)
Financial liabilities: Derivative financial instruments		(1,846)	(2,571)
Net current liabilities		(18,432)	(9,428)
Total assets less current liabilities		233,911	189,960
Creditors: amounts falling due after more than one year		(200)	(200)
Provisions for liabilities and charges
Performance fee payable		(1,884)	(2,847)
Net assets		231,827	186,913
Capital and reserves
Called up share capital		6,544	6,544
Share premium		970	-
Capital redemption reserve		27,401	27,401
Capital reserves		178,926	135,383
Revenue reserve		17,986	17,585
Total equity shareholders' funds		231,827	186,913
Net asset value per share (note 4)		889.0p	726.5p

JPMorgan Overseas Investment Trust plc

Registration number: 24299.

Cash Flow Statement

for the year ended 30th June 2011

		2011	2010
		£'000	£'000
Net cash inflow from operating activities		2,684	1,215
Returns on investments and servicing of finance
Interest paid		(351)	(113)
Net cash outflow from returns on investments and servicing of finance		(351)	(113)
Taxation
Taxation recovered		82	83
Capital expenditure and financial investment
Purchases of investments		(282,132)	(302,085)
Sales of investments		275,287	303,595
Other capital charges		(19)	(23)
Net cash (outflow)/inflow from capital expenditure and financial investment		(6,864)	1,487
Dividend paid		(3,343)	(2,970)
Net cash outflow before financing		(7,792)	(298)
Financing
Re-issue of shares from Treasury		3,100	-
Repurchase of shares into Treasury		-	(2,599)
Net drawdown of loans		7,800	-
Net cash inflow/(outflow) from financing		10,900	(2,599)
Increase/(decrease) in cash for the year		3,108	(2,897)

Notes to the Accounts

for the year ended 30th June 2011

1.          Accounting policies

             Basis of accounting

             The accounts are prepared in accordance with the Companies Act 2006, 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' (the 'SORP') issued by the AIC in January 2009.

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

             The accounts have been prepared on a going concern basis under the historical cost convention as modified by the revaluation of investments and derivative financial instruments at fair value through profit or loss.

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

2.          Dividends

             Dividends paid and proposed

	2011	2010
	£'000	£'000
Dividend paid
Unclaimed dividends refunded to the Company	(1)	(9)
2010 final dividend of 13.0p (2009: 11.5p)	3,344	2,979
Total dividends paid in the year	3,343	2,970
Dividend proposed
2011 final dividend proposed of 13.5p (2010: 13.0p)	3,520	3,344

             The final dividend proposed in respect of the year ended 30th June 2011 is subject to approval at the forthcoming Annual General Meeting. In accordance with the accounting policy of the Company, this dividend will be reflected in the accounts for the year ending 30th June 2012.

3.       Return per share

             The revenue return per share is based on the earnings attributable to the ordinary shares of £3,744,000 (2010: £2,751,000) and on the weighted average number of shares in issue during the year of 25,799,741 (2010: 25,840,791).

             The capital return per share is based on the capital return attributable to the ordinary shares of £41,413,000 (2010: £44,261,000) and on the weighted average number of shares in issue during the year of 25,799,741 (2010: 25,840,791).

             The total return per share is based on the total return attributable to the ordinary shares of £45,157,000 (2010: £47,012,000) and on the weighted average number of shares in issue during the year of 25,799,741 (2010: 25,840,791).

4.       Net asset value per share

             The net asset value per share is based on funds attributable to ordinary shareholders and on 26,077,732 (2010: 25,726,732) shares in issue at the year end, excluding shares held in Treasury.

5.          Status of announcement

2010 Financial Information

The figures and financial information for 2010 are extracted from the Annual Report and Accounts for the year ended 30th June 2010 and do not constitute the statutory accounts for that year.  The Annual Report and Accounts has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

2011 Financial Information

The figures and financial information for 2011 are extracted from the Annual Report and Accounts for the year ended 30th June 2011 and do not constitute the statutory accounts for that year.  The Annual Report and Accounts includes the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts will be delivered to the Registrar of Companies in due course.

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 annual report will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.hemscott.com/nsm.do

The annual report is also available on the Company's website at www.jpmoverseas.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

 

 

FR LJMRTMBTTBAB