Final Results

RNS Number : 8696O

JPMorgan Overseas IT PLC

25 September 2013

 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN OVERSEAS INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 30TH JUNE 2013

Chairman's Statement

During the year to 30th June 2013, equity markets in the developed world rallied significantly as investor confidence grew and it became apparent that Central Banks across the world were prepared to take drastic measures to support economic conditions for growth.

I am pleased to report that the Company continued to deliver a strong positive performance during the second half of the financial year, adding to the performance generated during the first six months. The Company recorded a total return on net assets of +21.6%, ahead of the total return of +20.6% of the benchmark, the MSCI All Country World Index (in sterling terms). The total return to shareholders was +22.8% over the reporting period as a result of the narrowing discount. Since the period end, the positive trend of performance has been maintained and the Company's net asset value has increased by 6.4% to 17th September 2013.

The Company has delivered a solid performance over its last five years of trading to 30th June 2013, producing performance above the benchmark of 20.7% over the period.

The Investment Manager's Report provides a detailed commentary on the Company's investment strategy and performance.

Dividends

The Directors are proposing, subject to shareholders' approval at the Annual General Meeting ('AGM'), to pay a final dividend of 15.0 pence per share (2012: 13.5 pence) on 29th November 2013 to shareholders on the register at the close of business on 8th November 2013. The Company's principal aim is to maximise capital growth. The Board does however appreciate that many shareholders do like to receive a dividend rather than have to sell shares to obtain income.

Share Buybacks

Over the year, the share price to net asset value discount ranged between 4.2% and 6.9%. The Board will continue to manage the discount at which the share price trades relative to its net asset value at around 5% and should it become necessary, repurchase the Company's shares in the market to achieve this. The Company repurchased 1,897,907 ordinary shares into Treasury for a total consideration of £14,974,000, adding approximately 3.7 pence per share to the net asset value for continuing shareholders. At the year end, a total of 2,683,588 shares were held in Treasury.

A resolution to renew the authority to permit the Company to continue to repurchase shares will be submitted to the AGM. Resolutions renewing the authorities to issue shares from Treasury and to issue new shares at a premium to net asset value, and to disapply pre-emption rights over such issues, will also be submitted for approval at the AGM. Any shares held in Treasury will only be re-issued at a premium to net asset value.

Subscription Shares

Following my announcement at the last AGM on 6th November 2012, the Board took the decision to propose to shareholders a bonus issue of subscription shares on the basis of one for every five ordinary shares held to provide the Company an opportunity to grow its capital base. This was agreed at a general meeting on 10th January 2013. On 17th September 2013, the subscription shares were priced at 49 pence. Details of the subscription shares, including the apportionment of base cost for capital gains tax purposes and how they may be exercised are given on page 61 of the Annual Report and Accounts.

Ongoing Charges

The Board continues to believe that the Company's ongoing charges of 0.65% for the year ended 30th June 2013 (2012: 0.63%) represents very good value when compared to other trusts and savings products such as open ended funds actively investing in global equities.

Gearing

Gearing is regularly discussed between the Board and the Investment Manager. A borrowing facility of £25 million with Scotiabank is in place until July 2014 at which time it will be reviewed. This facility is flexible and can be used tactically as investment opportunities present themselves. Although the gearing level had been reduced to zero previously during an uncertain economic environment, it was reintroduced in August 2012 by drawing £20 million of the £25 million facility following an improvement in global economic sentiment and growth outlook. I am pleased to report that since its reintroduction, gearing has added value to the performance of the Company.

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 World All Countries Index (in sterling terms). 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.

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

Shareholders may be aware of the AIFMD which came into force on 22nd July 2013, with provision for transitional arrangements until 22nd July 2014, by which time the Company must register and comply with the regulations. As we move towards full implementation, the Board expects to enter into arrangements with the Manager, JPMAM, to act as the Company's Alternative Investment Fund Manager, at no additional cost. Under the AIFMD, the Company will also be required to appoint a Depositary, which the Board is also actively considering.

The Board

As previously reported, John Rennocks retired from the Board at the conclusion of the last AGM on 6th November 2012 upon which Jonathan Carey assumed the role of Chairman of the Audit and Management Engagement Committee and Nigel Wightman became the Senior Independent Director.

Following the Board's annual evaluation by the Nomination Committee, it is felt that given the recent refreshment of the Board, its current composition and size is sufficient at the present time and no further changes are anticipated over the next 12 months.

The Board supports annual re-election for all Directors, as recommended by the UK Corporate Governance Code, and therefore all of the other 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 Holborn Bars, 138-142 Holborn, London EC1N 2NQ on Tuesday, 12th November 2013 at 2.30 p.m. 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 65 of the 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.

Outlook

It is encouraging to note the signs of an improving global economic environment following a significant period of uncertainty and concerns over equity markets in general. The Board continues to support the Investment Manager and his highly experienced team of research analysts in pursuing their high conviction stock picking strategy to achieve superior long term performance returns for the shareholders.

Simon Davies

Chairman

24th September 2013

Investment Manager's Report

Market review

In contrast to my comments in the previous annual report, the last 12 months have seen strong performance from equity markets. As ever, there was a considerable range of returns across regions, with Japan leading the pack. Following the election of Shinzo Abe as prime minister in December, Japan has launched one of the most aggressive policy moves in the country's history, seeking to revive the world's third largest economy which has been stagnant for two decades. This change was well received by investors (as the Japanese index rallied more than 50% in Yen terms), as well as Japanese exporters (with the Yen falling by 17% against Sterling over the year).

European markets rallied sharply as the president of the European Central Bank (ECB), in a landmark speech, stressed his support for preserving the euro, mitigating investors' fears of a collapse that had plagued stock prices in the previous year. In the US the economy showed signs of steady improvement with encouraging housing and employment data and the US Federal Reserve continued its policy of economic stimulus. Towards the end of the period, however, markets retreated amid speculation that this policy of monetary easing could be withdrawn sooner than many expected.

Emerging markets were by far the worst performers. Investors have become increasingly concerned over the growth outlook for emerging countries, despite many continuing to see much higher growth than in the developed world. This uncertainty, coupled with weakness in commodity prices, currencies and concerns over the banking system in China led to a sharp sell-off in 2013.

Portfolio review

The portfolio marginally outperformed its benchmark in what has been a year of two halves. Positive relative performance was achieved during the first half of the reporting period, as we might expect during a time of diminishing economic uncertainty and a greater focus on stock specific fundamentals. Areas of particular strength included technology and consumer staples. It was encouraging to see good performance from North American stocks, in particular Fluor (plant engineering and construction), Lowe's (home improvement retailing) and First Quantum (copper mining). A key detractor from performance, however, was our limited exposure to banks, particularly in Europe, which recovered sharply.

In the second half of the reporting period the portfolio lagged the benchmark modestly. This was a somewhat unusual environment for equity markets, as traditionally defensive sectors led the rally and significantly outperformed more economically sensitive, cyclical sectors. A likely cause of this was fixed income investors allocating money into higher yielding areas of the equity market. This proved to be a challenging environment for our strategy, given our focus on company fundamentals and the portfolio's bias towards cyclicals.

Holdings that detracted from performance during the period included Petrofac, a UK listed company which builds and operates oil and gas plants around the world. Shares in the company fell following a profit warning from a key competitor. This does not impact our positive long-term view on the company, which has significant cost advantages, attractive margins and continues to win new contracts. Our holding in Allergan, the US Botox and eyecare company, detracted from returns. Shares in the company fell as one of its eyecare treatments faces higher competition from unbranded products. We believe that the stock was oversold on this news. Our investment case, which is focused on Botox being used for medical reasons, remains intact. Sodexo, a global catering and services company, also performed poorly. The shares fell amid concerns over slowing growth for the company's customer base in France, which led to a short-term decline in margins. Longer-term we believe that Sodexo's Brazilian vouchers business (supplying meal and gift passes) is strong and that the trend towards outsourcing in a highly fragmented market remains a powerful theme.

Our holding in EADS contributed positively to performance as the company is seeing strong demand for its Airbus. EADS is benefiting from an environment where air passenger traffic has remained robust and yet the supply of new aircraft has been limited. The company is now looking to restructure its business to emphasise these operations, while consolidating its more volatile defence business. VF Corp, the owner of brands such as North Face, Wrangler and Timberland, was another contributor to performance. The company is seeing strong sales and margin growth across a number of key brands and recently announced plans to increase sales by 10% by 2017, on an annualised basis.

Portfolio positioning

We have not made any significant changes to the overall shape of the portfolio and maintain our bias towards cyclical stocks. The portfolio continues to hold a number of contrarian positions, which have not participated in the recent market rally and which we believe offer extremely attractive valuations. Examples include UPM, which is exposed to a consolidating paper industry and an improving pulp market. The shares are cheap based on longer-term valuations with strong cashflows and a 6% dividend yield. Daimler is another example, which we bought this year, as its trucks franchise will be a key beneficiary of a cyclical recovery in corporate spending.

Geographically, our focus on companies which are cheap relative to global peers continues to lead us towards Europe and the UK and away from North America. The valuation disparity between these two markets remains compelling. 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 we believe are simply too expensive in their global context. Holdings in companies such as SABMiller, 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 their US peers.

We have further reduced our position in Emerging Markets over the last year (from 5% underweight to 7% underweight at the end of June 2013). We sold positions in Ping-An (Chinese insurer) and China Overseas Land (Chinese property) given the limited visibility over the earnings growth for these companies in China. Looking forward, while valuations in the region look increasingly interesting in a global context, we remain cautious in our near-term outlook.

Investment Outlook

Looking ahead, there remains much speculation about when the US Federal Reserve may begin tapering the economic stimulus that has been in play since the financial crisis, and accordingly the outlook for interest rates. Federal Reserve Chairman Ben Bernanke has stated that interest rates will be kept close to zero, so long as unemployment remains above 6.5% and, whilst the US economy is showing continued signs of improvement, it may be some time before this level is reached. In Europe, recent economic data has been encouraging, however economic growth remains sluggish and this is not likely to change substantially. In Japan investors will be looking for signs that the aggressive programme undertaken by Prime Minister Abe to jump-start the economy is taking effect. Perhaps the greatest uncertainty around the outlook lies in emerging markets as these economies grapple with decelerating growth, deleveraging and currency pressures.

Whilst developed market economies continue to improve, albeit unevenly, equity valuations are comfortably below long-term averages and are attractive relative to bonds, providing a firm underpinning for equity markets. Corporate cash balances remain at record levels, profit margins have proved robust and dividend growth rates across the world are attractive. In August 2012 we reintroduced a degree of gearing into the portfolio, driven by improving economic sentiment, corporate resiliency and extreme valuation signals across a number of existing holdings.

As the big picture concerns subside, the emphasis on individual companies' fundamentals relative to their competitors will become more prominent. We are very well positioned to benefit from this shift and our dedicated team of highly experienced research analysts continue to unearth attractive investment opportunities around the world.

Jeroen Huysinga

Investment Manager

24th September 2013

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 23 to 28 of the Annual Report and Accounts.

•     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 of the Annual Report and Accounts.

•     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 50 to 56 of the Annual Report and Accounts.

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 pages 7 to 8 of the Annual Report and Accounts.

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.

Each of the Directors, whose names and functions are listed in the Directors' Report confirms that, to the best of his/her knowledge:

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

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

For and on behalf of the Board
Simon Davies
Chairman

24th September 2013

Income Statement

for the year ended 30th June 2013

	2013				2012
		Revenue	Capital	Total	Revenue	Capital	Total
	£'000		£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments held at fair value through profit or loss	-		37,692	37,692	-	(30,364)	(30,364)
Net foreign currency (losses)/gains	-		(1,421)	(1,421)	-	2,508	2,508
Income from investments	5,329		-	5,329	4,439	-	4,439
Other interest receivable and similar income	179		-	179	99	-	99
Gross return/(loss)	5,508		36,271	41,779	4,538	(27,856)	(23,318)
Management fee	(440)		(440)	(880)	(403)	(403)	(806)
Performance fee - writeback	-		26	26	-	1,695	1,695
Other administrative expenses	(491)		-	(491)	(476)	-	(476)
Net return/(loss) on ordinary activities before finance costs and taxation	4,577		35,857	40,434	3,659	(26,564)	(22,905)
Finance costs	(169)		(169)	(338)	(65)	(65)	(130)
Net return/(loss) on ordinary activities before taxation	4,408		35,688	40,096	3,594	(26,629)	(23,035)
Taxation	(398)		-	(398)	(316)	-	(316)
Net return/(loss) on ordinary activities after taxation	4,010		35,688	39,698	3,278	(26,629)	(23,351)
Return/(loss) per share -undiluted (note 3)	16.56p		147.39p	163.95p	12.64p	(102.68)p	(90.04)p
Return/(loss) per share - diluted (note 3)	16.56p		147.39p	163.95p	n/a	n/a	n/a

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	Share	Capital
	share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
At 30th June 2011	6,544	970	27,401	178,926	17,986	231,827
Repurchase of shares into Treasury	-	-	-	(5,299)	-	(5,299)
Re-issue of shares from Treasury	-	45	-	243	-	288
Net (loss)/return on ordinary activities	-	-	-	(26,629)	3,278	(23,351)
Dividends appropriated in the year	-	-	-	-	(3,526)	(3,526)
At 30th June 2012	6,544	1,015	27,401	147,241	17,738	199,939
Repurchase of shares into Treasury	-	-	-	(14,974)	-	(14,974)
Bonus issue of Subscription shares	48	(48)	-	-	-	-
Subscription shares issue costs	-	(233)	-	-	-	(233)
Net return on ordinary activities	-	-	-	35,688	4,010	39,698
Dividends appropriated in the year	-	-	-	-	(3,285)	(3,285)
At 30th June 2013	6,592	734	27,401	167,955	18,463	221,145

Balance Sheet

at 30th June 2013

	2013	2012
	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	240,016	198,584
Investment in liquidity fund held at fair value through profit or loss	3,000	390
Total investments	243,016	198,974
Current assets
Financial assets: Derivative financial instruments	938	1,567
Debtors	2,443	1,171
Cash and short term deposits	1,966	1,347
	5,347	4,085
Creditors: amounts falling due within one year	(5,504)	(2,298)
Financial liabilities: Derivative financial instruments	(1,455)	(558)
Net current (liabilities)/assets	(1,612)	1,229
Total assets less current liabilities	241,404	200,203
Creditors: amounts falling due after more than one year	(20,200)	(200)
Provisions for liabilities and charges
Performance fee payable	(59)	(64)
Net assets	221,145	199,939
Capital and reserves
Called up share capital	6,592	6,544
Share premium account	734	1,015
Capital redemption reserve	27,401	27,401
Capital reserves	167,955	147,241
Revenue reserve	18,463	17,738
Total equity shareholders' funds	221,145	199,939
Net asset value per share - undiluted (note 4)	941.4p	787.5p
Net asset value per share - diluted (note 4)	934.4p	n/a

Company registration number: 24299.

Cash Flow Statement

for the year ended 30th June 2013

	2013	2012
	£'000	£'000
Net cash inflow from operating activities	3,510	1,648
Returns on investments and servicing of finance
Interest paid	(352)	(224)
Net cash outflow from returns on investments and servicing of finance	(352)	(224)
Taxation
Taxation recovered	40	40
Capital expenditure and financial investment
Purchases of investments	(205,163)	(167,661)
Sales of investments	200,967	189,845
Other capital charges	(16)	(14)
Net cash (outflow)/inflow from capital expenditure and financial investment	(4,212)	22,170
Dividend paid	(3,285)	(3,526)
Net cash (outflow)/inflow before financing	(4,299)	20,108
Financing
Re-issue of shares from Treasury	-	288
Repurchase of shares into Treasury	(14,954)	(4,804)
Subscription share issue expenses	(233)	-
Drawdown of bank loan	20,000	17,800
Repayment of bank loan	-	(35,600)
Net cash inflow/(outflow) from financing	4,813	(22,316)
Increase/(decrease) in cash for the year	514	(2,208)

Notes to the Accounts

for the year ended 30th June 2013

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 Association of Investment Companies 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

(a)    Dividends paid and proposed

		2013	2012
		£'000	£'000
	Dividend paid
	Unclaimed dividends refunded to the Company	(4)	-
	2012 final dividend of 13.5p (2012: 13.5p)	3,289	3,526
	Total dividends paid in the year	3,285	3,526
	Dividend proposed
	2013 final dividend proposed of 15.0p (2012: 13.5p)	3,524	3,427

      For the year ended 30th June 2012, the Company declared a dividend of £3,427,000 but the final dividend paid amounted to £3,289,000 due to share repurchase after the balance sheet date but prior to the share register record date.

      The final dividend proposed in respect of the year ended 30th June 2013 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 2014.

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

      The requirements of Section 1158 are considered on the basis of dividends declared in respect of the financial year, as follows:

		2013	2012
		£'000	£'000
	Final dividend payable of 15.0p (2012: 13.5p)	3,524	3,427
	Total dividends for Section 1158 purposes	3,524	3,427

         The revenue available for distribution by way of dividend for the year is £4,010,000 (2012: £3,278,000).

		2013	2012
		£'000	£'000
3.	Return/(loss) per share
	Revenue return	4,010	3,278
	Capital return/(loss)	35,688	(26,629)
	Total return/(loss)	39,698	(23,351)
	Weighted average number of Ordinary shares in issue during the period used for the purpose of the undiluted calculation	24,212,969	25,935,640
	Weighted average number of Ordinary shares in issue during the period used for the purpose of the diluted calculation	24,212,969	n/a
	Undiluted
	Revenue return per share	16.56p	12.64p
	Capital return/(loss) per share	147.39p	(102.68)p
	Total return	163.95p	90.04p
	Diluted
	Revenue return per share	16.56p	n/a
	Capital return per share	147.39p	n/a
	Total return	163.95p	n/a

      On 15th January 2013, the Company issued Subscription shares as a bonus issue to Ordinary shareholders as detailed on page 61 of the Annual Report and Accounts. Accordingly, we disclose above the diluted returns per Ordinary share in addition to the undiluted returns per Ordinary share.

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

		2013	2012
4.	Net asset value per share
	Undiluted
	Ordinary shareholders' funds (£'000)	221,145	199,939
	Number of Ordinary shares in issue	23,491,110	25,389,017
	Net asset value per Ordinary share (pence)	941.4	787.5
	Diluted
	Ordinary shareholders funds assuming exercise of Subscription shares (£'000)	264,402	n/a
	Number of potential Ordinary shares in issue	28,297,512	n/a
	Net asset value per Ordinary share (pence)	934.4	n/a

5.      Status of announcement

2012 Financial Information

The figures and financial information for 2012 are extracted from the Annual Report and Accounts for the year ended 30th June 2012 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.

2013 Financial Information

The figures and financial information for 2013 are extracted from the Annual Report and Accounts for the year ended 30th June 2013 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 has been delivered to the Registrar of Companies.

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.morningstar.co.uk/uk/NSM

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 LAMBTMBMTBJJ