Final Results

RNS Number : 8496M

JPMorgan Mid Cap Invest Trust PLC

21 September 2012

 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN MID CAP INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 30TH JUNE 2012

The Directors of JPMorgan Mid Cap Investment Trust plc announce the Company's results for the year ended 30th June 2012.

Chairman's Statement

Investment Performance and Manager Evaluation

After the strong performance of the Company's benchmark index in the year to 30th June 2011, with the FTSE 250 Index returning 32.1%, the sector retreated in 2012 with the benchmark total return registering -5.2%. Although mid cap companies were able to shrug off the persistent macro headwinds during the Company's last financial year, a resurgence of the Eurozone debt crisis and weaker global economic data weighed heavily on sentiment and at the six month mark the sector was already down 14.6%. The second half of the Company's financial year saw a recovery of 9.4% but this was not enough to offset the earlier falls. The Company's total return on net assets was -7.7%. The total return to shareholders was -9.8%, as the discount widened over the course of the year from 16.2% to 18.8%.

Many managers had a torrid time in these extremely volatile markets and underperformed their benchmarks. However, it is very disappointing to report that the Company has underperformed its benchmark index again, particularly given that the Company's half year results were ahead of benchmark. Shareholders will recall that in May 2009, the Board instigated a change of investment management personnel, which resulted in the appointment of William Meadon and Jane Lennard to run the mandate. The appointment of William and Jane heralded a much needed change of investment style following a two year period of underperformance against the Company's benchmark. Like their predecessors, William and Jane had utilised J.P. Morgan's behavioural finance investment model to screen the mid cap investment universe so as to identify cheap, fast growing stocks. However, their approach differed from the outgoing managers by the adoption of a more concentrated portfolio and a more proactive stock picking approach, which places a greater emphasis on fundamental analysis and company meetings. William and Jane inherited some poor performance statistics, which are evident from the five and ten year performance tables on page 1 of the Annual Report.

At the end of March this year, the Company announced that Jane Lennard had stood down as joint investment manager to pursue interests outside investment management. The Board was reassured that J.P. Morgan proposed that Georgina Brittain, a managing director on JPMAM's UK Mid and Small Cap Team, assume the responsibility for the management of the portfolio from 1st April 2012. Before agreeing to her appointment, the Board met with Georgina to understand her investment style and approach. It was clear that Georgina, who is a highly experienced fund manager with a strong stock picking track record in the smaller companies universe, would be able to translate her skills seamlessly into the mid cap universe.

The Board has taken the opportunity of Georgina's appointment to discuss with JPMAM its desire for a more conviction based portfolio, which would ultimately manifest itself in a more growth orientated, less defensive portfolio made up of a smaller number of stocks. This approach suits Georgina's style and she has already made a number of changes to the portfolio with the aim of increasing the conviction, in an orderly fashion. Directors have also given the authority to invest in AIM stocks within the existing parameter of not more than 10% of the portfolio to be invested outside the index. Some of the changes that Georgina has made to the portfolio over the course of the last quarter of the financial year have negatively impacted upon performance in the very short term, but the Board is fully supportive and believes that the changes she is making to the portfolio will bear fruit for shareholders given time. William Meadon, head of JPMAM's UK institutional business, remains in his position as joint investment manager and retains responsibility for strategy and gearing decisions.

During this year's annual evaluation of the Manager, the Board's main area of concern was of course performance. A very frank discussion with JPMAM ensued and both parties have agreed that the notice period under the Company's management contract will be shortened from six months to three, but only if that notice results from poor investment performance. Otherwise it will remain at six months. In addition to investment management, the Manager provides many other services to the Company, including marketing, accounting and company secretarial services. In all these other functions the Board is very satisfied with JPMAM's performance. Thus, taking all factors into account, the Board concluded that JPMAM should remain as the Company's Manager and that its ongoing appointment remains in the interests of shareholders.

The Board will of course continue to monitor the new team, their investment style and their investment performance very closely. While the Board recognises that the current world economic problems are some of the most challenging in living memory and markets are consequently very volatile, it nevertheless expects the Manager to start adding value against the index and deliver a much improved performance in the future.

Revenue and Dividends

Earnings per share for the year to 30th June 2012 were 16.04 pence per share, significantly above the 11.81 pence earned in 2011. This is an encouraging improvement in net revenue from last year, which has been as a result of an improvement in the growth of dividends paid by the underlying companies in the portfolio and the receipt of some special dividends over the period. Furthermore in the second half of the financial year there was a reduction in the Company's interest payments, following the repayment of the Company's debenture in December 2011. Despite earnings being marginally below 17.0 pence, the Board has decided to maintain this level of dividend by proposing to pay a final dividend of 11.5 pence (2011: 11.5 pence). The maintenance of this dividend level necessitates a transfer of £173,000 from revenue reserves, leaving reserves of £2.26 million. The dividend is payable on 9th November 2012 to shareholders on the register at the close of business on 5th October 2012.

Excluding the payment of special dividends, early indications suggest that underlying dividend receipts in the Company's portfolio in 2013 are likely to exceed those of 2012. As in 2012, there is also a probability that a number of companies will pay special dividends in 2013, which could result in the Company being able to maintain its dividend at the current level without having to draw significantly on reserves. Shareholders should note that although likely in 2013, the payment of special dividends may not be a permanent feature in the UK market.

The Board is aware of the importance of income to shareholders and it remains the aspiration to maintain the total dividend. While the Company does have significant revenue reserves, these are clearly finite; however, it is pleasing that the reliance on the Company's reserves to maintain the dividend at its current level is diminishing. It remains the case that the Company's expenses continue to be relatively low in comparison to the rest of the investment trust industry. In line with industry practice following the Retail Distribution Review, the calculation of the Company's total expense ratio has been amended slightly to allow a direct comparison with investment trusts and other pooled investment funds. This results in an ongoing charges figure of 0.80% for 2012 (2011: 0.72%). Further details of this change of methodology can be found on pages 18 and 55 of the Annual Report.

Gearing

The use of gearing over the last year has marginally detracted from performance. However, the Board continues to believe in the benefits of gearing over the long term. The Board of Directors sets the overall gearing guidelines and reviews these at each meeting; changes in these guidelines between meetings may be undertaken after consultation with the Board. The Board has determined that in normal circumstances the Company's gearing range is 95%-125%. At the year end gearing was 104% and at the time of writing it is 109%. However, the portfolio's position in Aegis is effectively cash given that this company is the subject of an agreed bid, hence a more meaningful gearing figure at the time of writing is 108%.

Borrowing Facilities and Debenture

As reported in the Company's half year results, the Company's £9.5 million debenture was redeemed at par on 2nd December 2011. The Board has replaced the debenture with cheaper loan facilities with varying maturity dates. At the end of the reporting year, the Company had two £5 million loan facilities with ING Bank and a £15 million loan facility with Scotiabank. One of the ING facilities has recently expired and the Board is currently seeking a suitable replacement.

Discount Management

It is the present intention of the Board to continue its policy of buying back shares, to assist in reducing the volatility of the discount and enhance the net asset value per share. This policy will be reviewed regularly in the light of market conditions including the levels of discounts in our peer group and in the wider investment trust sector. During the year under review, the Company repurchased into Treasury 225,400 shares and, upon reaching the Board's limit of holding up to 5% of the Company's share capital in Treasury, a further 634,000 shares were repurchased for cancellation. Since 30th June 2012, the Company has bought back a further 100,000 shares.

Directors will be seeking to renew powers to repurchase up to 14.99% of the Company's shares at the forthcoming Annual General Meeting.

Board of Directors

The Board has procedures in place to ensure that the Company complies fully with the AIC Code on Corporate Governance and the UK Code on Corporate Governance.

In accordance with the Company's Articles of Association, I will be retiring by rotation and seeking re-election at this year's Annual General Meeting. John Emly also retires on grounds of tenure (having served as a Director for more than nine years) and seeks re-election. The Nomination and Remuneration Committee has met to evaluate our attributes and contributions and to consider Mr Emly's length of service and independence. On this point the Board remains entirely satisfied with his independence of thought and judgement in fulfilling his role as a Director of the Company notwithstanding his tenure and believes that he continues to make a strong and effective contribution to the Company. Accordingly, his re-election at the forthcoming Annual General Meeting is recommended to shareholders. The Company's senior independent director, Michael Hughes, led my appraisal, which also resulted in recommending my re-election at the Annual General Meeting.

When I come to write my annual statement next year, the majority of the Board will have served more than nine years. The Nomination and Remuneration Committee has been tasked with drawing up a succession plan and shareholders will be kept updated with developments.

Annual General Meeting

This year's Annual General Meeting will be held on Tuesday, 6th November 2012 at 2.30 p.m. at Holborn Bars, 138-142 Holborn, London EC1N 2NQ. As in previous years, in addition to the formal part of the meeting, there will be a presentation from our investment managers, Georgina Brittain and William Meadon, who will answer questions on the portfolio and performance. There will also be an opportunity to meet the Board, the investment managers and representatives of JPMAM after the meeting. I look forward to welcoming as many of you as possible to this meeting.

If you have any detailed or technical questions, it would be helpful if you could raise these in advance of the meeting with the Company Secretary at Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ. Shareholders who are unable to attend the AGM are encouraged to use their proxy votes.

Prospects

Concerns over the Eurozone, slowing growth in China and prospects for the global economy continue to weigh heavily on investor sentiment. Our investment managers, however, believe that the stock market prices of many UK mid cap companies have discounted too much bad news and consequently they have increased the level of gearing since the Company's year end to 109%. Although there remain many uncertainties for the UK economy our investment managers are confident that the portfolio is well placed to benefit from a recovery in activity and from any lasting resolution of the Eurozone crisis.

At the time of writing1, the Company's benchmark index has risen 11.3% since the year end. Provisional figures indicate that the Company's net asset value per share has risen 13.7%. A narrowing of the Company's discount has led to a share price rise of 16.3%. Pleasingly, this makes up for the disappointing absolute and relative returns in the Company's last financial year.

1 figures at the close of business on 19th September 2012

Andrew Barker

Chairman

21st September 2012

Investment Managers' Report

Market Background

Even by the standard of recent years, the year under review was a particularly volatile one. With increasing concerns that the crisis in the Eurozone was worsening, the summer of 2011 saw the Mid cap index fall some 22% from its July peak to its eventual trough at the beginning of October. As hopes rose that a credible resolution was in sight, the index regained most of these losses before falling away again in April and May. June saw another rally which has continued into the Company's new financial year.

Performance and Portfolio

In a poor year for the market, where the benchmark returned a negative 5.2%, it is disappointing to report that the Company underperformed the benchmark producing a net asset value total return of -7.7%. This underperformance was due to both gearing and stock selection, as can be seen in the table on performance attribution on page 6 of the Annual Report.

In relation to gearing, the presence of the expensive 11% debenture was particularly burdensome during the falling markets in the first half of the Company's year. The replacement of the debenture by the Board at the first opportunity on 2nd December 2011 with much cheaper financing was very beneficial. This cheaper financing was used to gear the portfolio into the rising markets which continued, albeit in volatile fashion, through to the end of 2011 and indeed into the new year.

In regard to stock selection, a number of companies in the index disappointed over the year. While the Company avoided many of them, such as Aquarius Platinum, Thomas Cook and Chemring, (the former two falling over 80% during the year, the latter over 50%), it was not totally immune from shock profit warnings. The key detractors from performance all fell within this camp, and included Cape, Lamprell and Supergroup. These latter two have now been sold, having been relegated out of the Mid 250 Index. More positively, a number of long held positions such as Dunelm and Persimmon continued to outperform.

Corporate activity was a notable feature in the FTSE 250 over the last year and within the portfolio, bids were received for technology stocks Logica and Misys, and also Northumbrian Water, Charter and Cable & Wireless Worldwide. This theme is likely to continue. In a low growth world, we expect that a number of companies will seek to expand by using their strong balance sheets to buy growth through expanding into new geographies or new markets.

Over the last quarter of your financial year, William Meadon and I, as your recently appointed investment manager, have made changes to the portfolio. The new approach is not a step change from the previous methodology of investing, but it is a more conviction based and more growth oriented style. We are encouraged that, despite the UK economy falling back into recession, there are a number of Mid cap companies where it is possible to find significant growth, organic or otherwise. When we have assured ourselves that such growth prospects are genuine we will add these stocks to the portfolio. Our balanced approach will, however, ensure that the portfolio includes some more defensive, higher yielding companies, too.

Recent new growth stocks in the portfolio include Perform Group (forecast earnings growth for this market leader in sports content distribution online and via mobile is over 30% for each of the next two years), Anite (a testing company for 3G and 4G telecoms networks, which grew earnings at over 100% last year), Dialight (in the LED market, growing at 30%) and Easyjet (passenger numbers growing at 8% year on year). New holdings with somewhat lower growth include two telecom companies TalkTalk and KCOM, the former offering significant margin improvement, the latter steady growth, with both providing a significant dividend income.

Although the anaemic economic backdrop is putting pressure on consumer spending, there are still some bright spots within the UK. We have retained significant positions in two domestic retailers in the portfolio, namely Dunelm and Sports Direct and added Debenhams to the portfolio. Each of these companies offer very competitively priced products which, at a time when there are pressures on every household budget, we think will prove to be a winning strategy.

The recent changes we have made to the portfolio have resulted in a more growth‑oriented, less defensive portfolio. As and when the world becomes a more certain and less volatile place this shift in emphasis will continue further. The Board strongly encourages this conviction approach, and with this in mind has broadened the available investment universe to include companies of the requisite size which are quoted on AIM. While we have not yet invested in any AIM stocks, we expect to do so in the future.

Outlook

These are challenging times: the UK economy has fallen back into recession, the Eurozone debt crisis remains unresolved and even those economies which are growing (eg USA and China) are now slowing. However, the fact that Mid cap equities have been relatively resilient in the face of such economic gloom, shows how much bad news has already been reflected in current share prices. The prospective price earnings ratio of approximately 11x is at a significant discount to its 10 year average of approximately 13x. Mid cap equities also offer an average prospective yield of 3.7% which is not only more than twice that offered on 10 year government gilts but also offers the prospect of growth in income. Moreover, balance sheets are generally strong and there is some sign of corporate merger and acquisition activity returning.

Since the year end, Mid cap equities have rallied strongly and the Company has benefitted by being geared into this rally. Barring the very worst economic outcome, long term investors should be rewarded for being invested at this time although the experience is likely to remain a volatile one.

Georgina Brittain
William Meadon

Investment Managers

21st September 2012

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 stock selection 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 through its investment restrictions and guidelines which are monitored and reported monthly. 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 Managers, who attend all Board meetings, and reviews data which shows statistical measures of the Company's risk profile. The Investment Managers employ the Company's gearing tactically, within a strategic range set by the Board. The Board holds a separate meeting devoted to strategy each year.

•           Financial: The Company is exposed to market risk, liquidity risk and credit risk. The principal financial risk facing the Company is market risk arising from uncertainty about the future prices of the Company's investments. It represents the potential loss the Company might suffer through holding investments that could fall in value either due to general market movements or stock specific events. The latter is mitigated through diversification of investments in the portfolio. The Board reviews the portfolio and its gearing on a regular basis and has set investment restrictions and guidelines for the Manager. JPMAM reports its adherence to these limits once a month to the Board. The other financial risks faced by the Company are disclosed in note 22 in the Annual Report.

•           Accounting, Legal and Regulatory: In order to qualify as an investment trust, the Company must comply with Section 1158 of the Corporation Tax Act 2010 ('Section 1158'). Details of the Company's approval are given under "Business of the Company" above. Should the Company breach Section 1158, it may lose investment trust status and as a consequence capital gains within the Company's portfolio would 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, as its shares are listed on the London Stock Exchange, the UKLA Listing Rules. A breach of the Companies Act could result in the Company and/or the Directors being fined or the subject of criminal proceedings. A breach of the UKLA Listing Rules may 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, and its professional advisers to ensure compliance with the Companies Act 2006 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 Statement on pages 21 to 26 of the Annual Report.

•           Operational: Disruption to, or failure of, JPMAM's accounting, dealing or payments systems or the custodian's records may 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 within the Internal Control section of the Corporate Governance Statement on pages 24 and 25 of the Annual Report.

Related Parties Transactions

During the 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 year.

Directors' Responsibilities

The Directors each confirm to the best of their knowledge that:

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

b)         the Annual Report, to be published shortly, 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.

For and on behalf of the Board
Andrew Barker
Chairman

21st September 2012

Income Statement

for the year ended 30th June 2012

		2012			2011
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments held at fair value through profit or loss		-	(14,338)	(14,338)	-	28,009	28,009
Income from investments		4,709	-	4,709	3,768	-	3,768
Other interest receivable and similar income		7	-	7	67	-	67
Gross return/(loss)		4,716	(14,338)	(9,622)	3,835	28,009	31,844
Management fee		(156)	(363)	(519)	(166)	(388)	(554)
Other administrative expenses		(433)	-	(433)	(364)	-	(364)
Net return/(loss) on ordinary activities before finance costs and taxation		4,127	(14,701)	(10,574)	3,305	27,621	30,926
Finance costs		(184)	(429)	(613)	(343)	(800)	(1,143)
Net return/(loss) on ordinary activities before taxation		3,943	(15,130)	(11,187)	2,962	26,821	29,783
Taxation		(5)	-	(5)	(1)	-	(1)
Net return/(loss) on ordinary activities after taxation		3,938	(15,130)	(11,192)	2,961	26,821	29,782
Return/(loss) per share (Note: 3)		16.04p	(61.63)p	(45.59)p	11.81p	106.95p	118.76p

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

for the year ended 30th June 2012

	Called up	Capital
	share	redemption	Capital	Revenue
	capital	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000
At 30th June 2010	6,533	3,467	94,046	6,597	110,643
Repurchase of shares into Treasury	-	-	(588)	-	(588)
Net return on ordinary activities	-	-	26,821	2,961	29,782
Dividends appropriated in the year	-	-	-	(4,265)	(4,265)
At 30th June 2011	6,533	3,467	120,279	5,293	135,572
Repurchase of shares into Treasury	-	-	(928)	-	(928)
Repurchase and cancellation of the Company's own shares	(158)	158	(2,641)	-	(2,641)
Net (loss)/return on ordinary activities	-	-	(15,130)	3,938	(11,192)
Dividends appropriated in the year	-	-	-	(4,199)	(4,199)
At 30th June 2012	6,375	3,625	101,580	5,032	116,612

Balance Sheet

at 30th June 2012

		2012	2011
		£'000	£'000
Fixed assets
Equity investments held at fair value through profit or loss		121,607	143,703
Investment in liquidity fund held at fair value through profit or loss		3,880	2,640
Total investments		125,487	146,343
Current assets
Debtors		1,782	3,270
Cash and short term deposits		177	35
		1,959	3,305
Current liabilities
Creditors: amounts falling due within one year		(6,834)	(4,580)
Net current liabilities		(4,875)	(1,275)
Total assets less current liabilities		120,612	145,068
Creditors: amounts falling due after more than one year		(4,000)	(9,496)
Net assets		116,612	135,572
Capital and reserves
Called up share capital		6,375	6,533
Capital redemption reserve		3,625	3,467
Capital reserves		101,580	120,279
Revenue reserve		5,032	5,293
Total equity shareholders' funds		116,612	135,572
Net asset value per share ( Note: 4)		483.9p	543.2p

Cash Flow Statement

for the year ended 30th June 2012

		2012	2011
		£'000	£'000
Net cash inflow from operating activities		3,754	2,743
Returns on investments and servicing of finance
Interest paid		(713)	(1,136)
Net cash outflow from returns on investments and servicing of finance		(713)	(1,136)
Taxation
Overseas tax recovered		4	6
Capital expenditure and financial investment
Purchases of investments		(116,977)	(144,455)
Sales of investments		122,572	147,448
Other capital charges		(4)	(13)
Net cash inflow from capital expenditure and financial investment		5,591	2,980
Dividends paid		(4,199)	(4,265)
Net cash inflow before financing		4,437	328
Financing
Repurchase of shares into Treasury		(1,154)	(366)
Repurchase and cancellation of the Company's own shares		(2,641)	-
Redemption of debenture		(9,500)	-
Loans drawn down		9,000	-
Net cash outflow from financing		(4,295)	(366)
Increase/(decrease) in cash for the year		142	(38)

Notes to the Accounts

for the year ended 30th June 2012

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 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	2012	2011
		£'000	£'000
	2011 Final dividend of 11.5p (2010: 11.5p)	2,860	2,885
	Interim dividend of 5.5p (2011: 5.5p)	1,339	1,380
	Total dividends paid in the year	4,199	4,265
	2012 Final dividend proposed of 11.5p (2011: 11.5p)	2,772	2,870

For the year ended 30th June 2011, the Company declared a dividend of £2,870,000 but the final dividend paid amounted to £2,860,000 due to share buyback after the balance sheet date but prior to the share register record date.

The final dividend has been proposed in respect of the year ended 30th June 2012 and 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 2013.

3.       Return/(loss) per share

The revenue return per share is based on the earnings attributable to the ordinary shares of £3,938,000 (2011: £2,961,000) and on the weighted average number of shares in issue during the year of 24,551,213 (2011: 25,078,189).

The capital loss per share is based on the capital loss attributable to the ordinary shares of £15,130,000 (2011: £26,821,000 return) and on the weighted average number of shares in issue during the year of 24,551,213 (2011: 25,078,189).

Total loss per share is based on the total loss attributable to the ordinary shares of £11,192,000 (2011: £29,782,000 return) and on the weighted average number of shares in issue during the year of 24,551,213 (2011: 25,078,189).

4.       Net asset value per share

Net asset value per share is based on total shareholders' funds of £116,612,000 (2011: £135,572,000) and on the 24,097,180 (2011: 24,956,680) shares in issue at the year end, excluding shares held in Treasury.

5.       Status of announcement

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 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.

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.

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

21st September 2012

For further information please contact:

Alison Vincent

For and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary                       020 7742 4000

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.jpmmidcap.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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