Interim Management Statement

JPMorgan Fleming Japanese Smllr Cos
26 July 2007


        JPMorgan Fleming Japanese Smaller Companies Investment Trust plc

                          Interim Management Statement

                   For the three months ended 30th June 2007


This interim management statement relates to the quarter from 1st April 2007 to
30th June 2007 and contains information that covers that period, unless
otherwise stated.

Financial performance - Cumulative Total Return *

                         1 month      3 months       1 Year       3 Years      5 Years      10 Years
Share price              0.3%         -12.1%         -24.6%       -13.2%       20.9%        38.4%
Net asset value          1.4%         -7.1%          -22.8%       -16.2%       13.2%        36.9%
Benchmark                -1.5%        -5.6%          -11.1%       12.5%        44.4%        1.0%


* total return with net dividends reinvested

Source: JPMAM/Fundamental Data


Financial position

                          As at 30th June 2007             As at 25th July 2007
Total assets              £115,020,000                     £116,372,000
Share price               225.50 p                         226.75 p
Net asset value           250.58 p                         251.22 p
Discount                  -10.01%                          -9.74%
Gearing                   114.52%                          114.02%


Share prices shown are closing mid
Net asset values are shown with debt at fair value
Source: JPMAM/Fundamental Data


Material events

At the Company's Annual General Meeting ('AGM') held on 25th July 2007, all of
the resolutions put to shareholders were passed, including Special Resolutions
which allow the Company to:
     
i.   make market purchases of up to 5,899,977 of its shares, representing 14.99% 
     of the Company's issued share capital;

ii.  to sell shares from treasury at a price below the net asset value of the 
     existing shares in issue, up to an aggregate nominal amount of £393,594,
     representing approximately 10% of the Company's issued share capital; and

iii. to disapply pre-emption rights on the sale of shares from treasury up to an 
     aggregate nominal amount of £393,594, representing approximately 10% of
     the Company's issued share capital.

At the conclusion of the Company's AGM George Long retired from the Board.


Material transactions

Changes to share capital
    
                                                                               Shares of 10p

Shares in issue as at 31st March 2007                                             39,409,423
Shares bought back and cancelled                                                      50,000
Shares issued                                                                              -
As at 30th June 2007                                                              39,359,423


During the quarter, the Company made market purchases of 50,000 its own shares
for cancellation, representing 0.13% of the shares outstanding at the beginning
of the financial year, at an average discount of 9.5%.

Portfolio

Top ten holdings as at 30th June 2007


Stock name                             Sector                         Weight %
Sumco (5977)                           Information Technology         2.3
Atrium (8993)                          Financials                     2.1
Showa Aircraft Industry (7404)         Industrials                    2.0
Aeon Delight  (9787)                   Industrials                    1.9
Miraial (4238)                         Information Technology         1.9
DTS (9682)                             Information Technology         1.9
Innotech (9880)                        Industrials                    1.8
Moshi Moshi Hotline (4708)             Consumer Discretionary         1.8
Urban (8868)                           Financials                     1.8
Nippon Seiki (7287)                    Consumer Discretionary         1.8



Sector analysis as at 30th June 2007

                                                      Portfolio %
Consumer Services                                     24.0
Financials                                            22.7
Industrials                                           21.1
Consumer Goods                                        21.1
Oil & Gas                                             3.5
Technology                                            2.1
Utilities                                             2.1
Basic Materials                                       1.2
Telecommunications                                    0.6
Health Care                                           0.3
Cash                                                  1.3
Total                                                 100.00


By order of the Board
Hilary Lowe, for and on behalf of
JPMorgan Asset Management (UK) Limited, Secretary
26th July 2007

Registered office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ

This interim management statement has been prepared solely to provide
information to meet the requirements of the UK Listing Authority's Disclosure
and Transparency Rules.

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.jpmfjapanesesmallercompanies.co.uk For investor information please contact
the JPMorgan helpline on Freephone 0800 40 30 30.


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