Final Results

RNS Number : 5346S

JPMorgan Mid Cap Invest Trust PLC

25 September 2014

 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN MID CAP INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 30TH JUNE 2014

The Directors of JPMorgan Mid Cap Investment Trust plc announce the Company's results for the year ended 30th June 2014.

Chairman's Statement

The Chairman's Statement is now included within the Strategic Report which new reporting regulations require UK companies to prepare. There are further changes throughout the Annual Report and Accounts as a result of this new reporting regime.

Investment Performance and Manager Evaluation

Following the strong returns generated by the Company last year, it is pleasing that shareholders have been rewarded with a positive return again this year. The Company's total return on net assets for the year to 30th June 2014 was 18.3%, marginally ahead of the Company's benchmark index, the FTSE 250 Index (excluding investment trusts), which returned 17.8% on a total return basis. The discount at which the ordinary shares trade to their net asset value per share narrowed further, giving a total return to shareholders of 23.2%.

JPMorgan Mid Cap Investment Trust plc continues to be one of the few closed ended companies which invest primarily in UK mid cap stocks. Indeed there remains a paucity of any investment vehicle focusing on the mid cap sector. To some extent this is understandable given that mid cap stocks rarely generate the headlines reserved for the behemoths in the FTSE 100. It is however surprising that more investors have not allocated a greater proportion of their portfolios to the FTSE 250 Index given its strong performance relative to the FTSE 100 Index (both on an including and excluding investment trusts basis). This can be seen in the table below which details the returns generated by the FTSE 250 indices compared to the FTSE 100 Index over one, three, five and 10 years to 30th June 2014. It is also worth highlighting that both the Company's total return to shareholders and total return on net assets have outperformed all of these indices over one, three and five years.

	One Year	Three Year	Five Year	Ten Year
Index	Return %	Return %	Return %	Return %
FTSE 2501	16.8	43.2	143.1	229.8
FTSE 2502	17.8	47.7	154.4	245.8
FTSE 100	12.4	26.7	89.6	117.1

1    Including investment trusts.

2    Excluding investment trusts.

Whilst the FTSE 100 has yet to exceed the level it reached in late 1999, the FTSE 250 has continued to hit new highs, and is now more than double its peak in 1999. The excellent performance of the FTSE 250 indices has been fuelled by fast-growing, innovative companies which have also had the ability to increase their dividend payments. Although mid cap stocks gave some performance back over the last few months, the continued recovery in the UK supports the country's mid-tier stocks which are weighted towards the industrial goods, services and the consumer discretionary sectors. Sales and earnings growth for mid-cap stocks appear far more diversified when compared with their FTSE 100 counterparts, which are weighted towards financials, mining and oil and gas industries. Mid Cap stocks are often referred to as the FTSE 100 companies of tomorrow and as such are often growing at significantly faster rates than their FTSE 100 counterparts. Not only does this offer investors the prospect of generating greater returns, but also the potential for corporate bids; from which the Company has been able to benefit over the past couple of years.

The investment management team of Georgina Brittain and William Meadon has been in place since April 2012. Under their tenure the Company's fortunes have been turned around and the Board is pleased to report that having taken all factors into account, including investment performance and other services provided to the Company and its shareholders, they have concluded that JPMorgan should remain as the Company's Manager and that its ongoing appointment remains in the best interests of shareholders.

As part of a planned succession following the appointment of Georgina Brittain to the fund management team, William Meadon will be standing down as joint fund manager following the Company's forthcoming Annual General Meeting. William has been involved with the Company on and off since 1998 and became involved again with the management of the Company in May 2009. The Board is extremely grateful to him for his wise counsel over the past five years and the significant contribution he has made to the Company over that period. Georgina Brittain has been assisted by Katen Patel since April 2013 and the Board welcomes him onto the investment management team. Katen has a background as a small and mid cap equity specialist and previously worked in this field for HSBC for seven years.

The investment managers' report below gives more detail on performance and investment activity within the portfolio, together with their views on the outlook for the mid cap sector.

Revenue and Dividends

Earnings per share for the year to 30th June 2014 were 21.67 pence, an increase on last year. The receipt of special dividends has been the main reason for the increase in revenue for a number of years now and this has continued to be the case for the year under review, with just over 20% of the total revenue received arising from the payment of special dividends. Against this background the Board has decided to propose a final dividend of 12.5 pence (2013: 11.5 pence plus a 1.0 pence special dividend). Unlike last year the Board has decided not to pay a special dividend but rather to increase the base dividend, giving a total of 18.0 pence for the full year. The final dividend is payable on 12th November 2014 to shareholders on the register at the close of business on 3rd October 2014.

Excluding the receipt of special dividends, early indications suggest that underlying dividend receipts on the Company's portfolio in 2014/2015 will exceed those of 2013/2014. Special dividends are again expected to feature in 2014/2015. However, I would like to add my usual caveat that we do not regard the receipt of special dividends as a permanent feature of the UK market.

Management Fee and Ongoing Charges Ratio

Last year I highlighted that along with many other investment trusts, the Board simplified its management fee arrangements by removing the performance fee element of the structure; leaving an ad valorem fee structure based on a simple fixed tiered percentage fee. With effect from 1st July 2013, the management fee was increased from 0.40% per annum on total assets less current liabilities, excluding bank borrowings to a tiered fee of 0.65% per annum for assets up to £250 million and 0.60% per annum for assets in excess of £250 million.  The impact of this change has resulted in an increase in the Company's Ongoing charges ratio from 0.66% in 2013 to 0.97% for 2014. The increased Ongoing charges ratio is still broadly in line with other comparable investment companies and similar savings products. It is felt that the Company's fee structure balances the need for the Company's ongoing charges to remain competitive post RDR, whilst rewarding the Manager for its efforts.

Gearing and Borrowing Facilities

The use of gearing over the last year has again assisted performance. 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 -5% to +25%. Given the Manager's recent more cautious view of the outlook, gearing was reduced towards the end of the Company's financial year and stood at 8.1% as at the end of June 2014. At the time of writing it is 3.4%.

At the end of the reporting year, the Company had four loan facilities in place all with varying maturities and totalling £60 million with an average interest rate of 1.64%. Following the maturing of one of the loans since the year end, total facilities currently total £55 million. Further details on these facilities can be found within the Company's Annual Report 2014.

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 is 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 did not repurchase any shares, as the Company's discount continued to narrow from 14.7% to 11.5%. However, as in prior years, Directors will be seeking to renew powers to repurchase up to 14.99% and issue up to 10% of the Company's shares respectively, at the forthcoming Annual General Meeting. Treasury shares and new Ordinary shares will only be issued at a premium to net asset value.

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

I reported in my half year statement that in order to comply with the AIFMD, the Company would be appointing a different JPMorgan entity as its Manager and Company Secretary and was further required to appoint a Depository in addition to its existing custodian.

Taking into account legal advice received by the Company from Dickson Minto WS, I can report that JPMorgan Funds Limited, which has been approved by the Financial Conduct Authority as an Alternative Investment Fund Manager, has been appointed as Manager and Company Secretary to the Company with effect from 1st July 2014. This change of entity does not in any way affect the actual management of the portfolio which will continue to be managed by Georgina Brittain and her support team. The Company Secretarial and administration support will also continue to be conducted by the same individuals from the Company's registered office in London. No extra fees are being charged by any JPMorgan entity as a result of the Company's AIFMD obligations.

Although JPMorgan Chase Bank, N.A. will continue as the Company's custodian, the new requirements of a depositary function will be undertaken by Bank of New York Mellon ('BNYM'). BNYM will be paid a fee of approximately £40,000, or 0.017% of the Company's gross assets per annum.

Board of Directors

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

In line with the Board's current succession plan, Richard Huntingford was appointed as a Director on 1st December 2013. Richard brings a wealth of PLC experience to the Board having gained over 25 years of experience from a wide variety of executive, non-executive and advisory board positions. He is a Chartered Accountant who previously spent 12 years at KPMG advising a broad range of companies at board level. John Emly will be retiring from the Board at the conclusion of the Company's 2014 Annual General Meeting. John joined the Board in 1996 and throughout his tenure the Board has benefited tremendously from his knowledge of both investment and JPMorgan, having previously been an employee of the Manager. We wish John well for the future.

In accordance with the Company's Articles of Association, Michael Hughes and Margaret Littlejohns will be retiring by rotation and seeking re-election at this year's Annual General Meeting. Gordon McQueen and I will retire on grounds of tenure (having both served as Directors for more than nine years) and are both seeking re-election. Having been appointed to the Board on 1st December 2013, Richard Huntingford will be standing for initial election by shareholders. The Nomination and Remuneration Committee has met to evaluate all the Directors' attributes and contribution. Following this process the Board remains entirely satisfied with our independence of thought and judgement, and knowledge in fulfilling our roles as Directors of the Company. Accordingly, all our re-elections, and the election of Mr Huntingford, at the forthcoming Annual General Meeting are recommended to shareholders. The Board has resolved that from the Company's 2015 Annual General Meeting all eligible Directors will stand for annual re-election by shareholders.

Directors have resolved not to increase their fees this year, despite them being below industry average. However, given that the aggregate fee level for Directors' fees is £150,000 and was last increased back in 2006, a resolution to increase the aggregate amount to £200,000 will be put to shareholders at the forthcoming Annual General Meeting. Shareholders should note that the increase in the aggregate fee is to provide the Board with the flexibility to increase the number of Directors as and when future succession plans are actioned.

New Reporting Requirements

There have been a number of revisions to reporting requirements for companies with accounting periods beginning on or after 1st October 2012. Accordingly shareholders will note a few amendments to the format of the Company's Annual Report and Accounts from prior years. These include the addition of a new Strategic Report which replaces the Business Review section of the Directors' Report, providing insight into the Company's objectives, strategy and principal risks, and enabling shareholders to assess how effective Directors have been in promoting the success of the Company during the course of the year under review. Other changes comprise additional Audit reporting requirements on the accounts and on the external audit process, and changes to the structure and voting requirements in respect of the Directors' Remuneration Report.

Annual General Meeting

This year's Annual General Meeting will be held on Tuesday, 28th October 2014 at 2.30 p.m. at 60 Victoria Embankment, London EC4Y 0JP. As in previous years, in addition to the formal part of the meeting, there will be a presentation from our investment managers, Georgina Brittain, William Meadon and Katen Patel, who will also answer questions on the portfolio and performance. There will 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 60 Victoria Embankment, London EC4Y 0JP. Shareholders who are unable to attend the Annual General Meeting are encouraged to use their proxy votes.

Prospects

The UK economy continues its recovery prompting upgrades to forecasts for GDP growth. This backdrop will support the growth of UK businesses, and despite recent setbacks in the UK mid cap sector, which our investment managers believe have been primarily as a result of profit taking and not underlying shortcomings within the mid cap universe, they remain confident that the sector will continue to generate interesting and rewarding opportunities.

Andrew Barker

Chairman

25th September 2014

Investment Managers' Report

Performance

After a strong rise in the benchmark in the first half of the Company's financial year, the second half saw a small decline, leading to a total return for the FTSE 250 Index (ex Investment Trusts) of 17.8% for the year to June 2014.

Against this backdrop the Company produced a total return on net assets of 18.3%, and a share price total return of 23.2%. The Company remained geared throughout the period, (although the level was reduced in the last quarter), which provided a positive contribution to returns, while stock selection was marginally negative.

Portfolio

Key positive contributors to the portfolio over the year included Ashtead, which remains the largest holding, TalkTalk, Sports Direct and Kentz. Kentz, an oil services company, was added to the portfolio during the year, and recently received a bid at a significant premium to the then share price. We have accepted this offer for the company. The other bid in the portfolio was for Heritage Oil, another recent addition. On the negative side, key detractors included Thomas Cook, Dunelm and International Personal Finance. The position in each of these was reduced, but we remain confident in the outlook for these companies.

We made a number of changes to the portfolio over the year. Several holdings were sold on promotion into the FTSE 100, including Persimmon, Barratt, Mondi, Tui Travel and William Hill. As can be seen from the sector analysis within the Company's 2014 Annual Report, there have been some significant changes to the positioning of the fund. Most notable is the reduction in our position in the consumer goods sector down to neutral, as we took profits in a number of housebuilders. Some of the proceeds were reinvested into the financials sector, where we moved overweight as we bought into the estate agents, Foxtons and Countrywide, and took a position in the Bank of Georgia. Elsewhere Oil and Gas moved to an overweight position on the purchase of Kentz and Wood Group, while the recent set back in the share prices of Howden Joinery and Interserve provided an opportunity to add to our holdings in the Industrials sector.

One of the key features of the mid cap arena this year has been a preponderance of Initial Public Offerings or IPOs (new companies listing on the stockmarket). We have spent a considerable amount of time and resources evaluating these new investment opportunities, and have been highly selective. We have avoided a number of interesting opportunities where we felt the valuations were significantly too high. New IPOs we have added to the portfolio include B&M, Poundland and Card Factory. These companies are all retailers focusing on the value segment of the market, an area which we expect to continue to thrive.

Outlook

Given the recent geopolitical upheavals seen in the Ukraine, Gaza and Iraq, the resilience of UK stockmarkets may have come as a surprise. However, while recent events on the global stage are clearly disturbing, we see good reason for the equanimity currently displayed by equity markets in the developed world.

The economic backdrop in both the US and the UK continues to strengthen. Forecasts for GDP growth have increased again in both countries; in the UK the Bank of England recently upgraded its UK outlook to 3.5% growth in 2014, and 3% in 2015. Inflation remains subdued and unemployment continues to decline at a rapid pace. Although interest rates are likely to rise in the next six months or so, any rate rise is likely to be gradual and monetary policy will be set in a way that helps to sustain growth and employment. Current low wage inflation is likely to affect the consumer, but this should result in rate rises being tempered.

The message from UK businesses also continues to improve. A recent report by Lloyds indicates companies are at their most confident in over 20 years and business activity continues to rise across the country. This should lead to an increase in capital expenditure - an important ingredient for future growth. Following the recent pull-back in mid cap equities over the summer, we are very comfortable with valuations and the earnings outlook, and also expect our holdings to provide further income growth.

While political uncertainties will increase ahead of the General Election next may, the clear majority in the Scottish referendum in favour of maintaining the Union removed a significant uncertainty for investors. However, the ultimate political and economic consequences for all members of the UK may take some time to emerge. Nevertheless, it is our expectation that markets will be higher in a year's time, although there will continue to be bouts of volatility along the way.

Georgina Brittain
William Meadon
Katen Patel

Investment Managers

 25th September 2014

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. JPMF 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.

Investment performance could be adversely affected the loss of one or more of the investment management team. To reduce the likelihood of such an event, the Manager ensures appropriate succession planning and adopts a team based approach as well as special efforts to retain key personnel. A change of corporate control could also negatively impact the Company. The Board holds regular meetings with senior representatives of JPMAM in order to obtain assurance that the Manager continues to demonstrate a high degree of commitment to its investment trusts business through the provision of significant resources.

Poor performance may lead to a widening of the discount. The Board monitors the Company's premium/discount level and will seek, where deemed prudent, to address imbalances in the supply and demand of the Company's shares through a programme of share buybacks.

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. JPMF 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 Company's 2014 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 JPMF 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, JPMF, 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 in the Company's 2014 Annual Report.

•           Operational: Disruption to, or failure of, JPMF'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 JPMF 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 in the Company's 2014 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                                                                                                                                            

25th September 2014

Financial Statements

Income Statement

for the year ended 30th June 2014

		2014			2013
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair value through profit or loss		-	27,495	27,495	-	55,654	55,654
Income from investments		6,274	-	6,274	5,597	-	5,597
Other interest receivable and similar income		30	-	30	57	-	57
Gross return		6,304	27,495	33,799	5,654	55,654	61,308
Management fee		(432)	(1,008)	(1,440)	(186)	(435)	(621)
Other administrative expenses		(480)	-	(480)	(333)	-	(333)
Net return on ordinary activities before finance costs and taxation		5,392	26,487	31,879	5,135	55,219	60,354
Finance costs		(180)	(420)	(600)	(100)	(233)	(333)
Net return on ordinary activities before taxation		5,212	26,067	31,279	5,035	54,986	60,021
Taxation		(12)	-	(12)	(5)	-	(5)
Net return on ordinary activities after taxation		5,200	26,067	31,267	5,030	54,986	60,016
Return per share (note 3)		21.67p	108.62p	130.29p	20.95p	229.06p	250.01p

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 Movement in Shareholders' Funds

	Called up	Capital
	share	redemption	Capital	Revenue
	capital	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000
At 30th June 2012	6,375	3,625	101,580	5,032	116,612
Repurchase and cancellation of the Company's own shares	(25)	25	(406)	-	(406)
Net return on ordinary activities	-	-	54,986	5,030	60,016
Dividends appropriated in the year	-	-	-	(4,080)	(4,080)
At 30th June 2013	6,350	3,650	156,160	5,982	172,142
Net return on ordinary activities	-	-	26,067	5,200	31,267
Dividends appropriated in the year	-	-	-	(4,320)	(4,320)
At 30th June 2014	6,350	3,650	182,227	6,862	199,089

Balance Sheet

at 30th June 2014

		2014	2013
		£'000	£'000
Fixed assets
Equity investments held at fair value through profit or loss		212,570	191,399
Investment in liquidity fund held at fair value through profit or loss		10,000	2,400
Total investments		222,570	193,799
Current assets
Debtors		4,992	2,835
Cash and short term deposits		1,362	572
		6,354	3,407
Current liabilities
Creditors: amounts falling due within one year		(14,835)	(5,064)
Net current liabilities		(8,481)	(1,657)
Total assets less current liabilities		214,089	192,142
Creditors: amounts falling due after more than one year		(15,000)	(20,000)
Net assets		199,089	172,142
Capital and reserves
Called up share capital		6,350	6,350
Capital redemption reserve		3,650	3,650
Capital reserves		182,227	156,160
Revenue reserve		6,862	5,982
Total equity shareholders' funds		199,089	172,142
Net asset value per share (note 4)		829.6p	717.3p

Company registration number: 1047690.

Cash Flow Statement

for the year ended 30th June 2014

		2014	2013
		£'000	£'000
Net cash inflow from operating activities		4,387	4,578
Returns on investments and servicing of finance
Interest paid		(575)	(325)
Net cash outflow from returns on investments and servicing of finance		(575)	(325)
Taxation
Overseas tax recovered		3	1
Capital expenditure and financial investment
Purchases of investments		(163,557)	(133,219)
Sales of investments		161,358	118,854
Other capital charges		(6)	(8)
Net cash outflow from capital expenditure and financial investment		(2,205)	(14,373)
Dividends paid		(4,320)	(4,080)
Net cash outflow before financing		(2,710)	(14,199)
Financing
Repurchase and cancellation of the Company's own shares		-	(406)
Loans drawn down		11,500	20,000
Loans repaid		(8,000)	(5,000)
Net cash inflow from financing		3,500	14,594
Increase in cash for the year		790	395

Notes to the Accounts

for the year ended 30th June 2014

1.  Accounting policies

(a)     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

(a)     Dividends paid and proposed

		2014	2013
		£'000	£'000
	2013 Final dividend of 11.5p (2012: 11.5p)	2,760	2,760
	2013 Special dividend of 1.0p (2012: nil)	240	-
	2014 Interim dividend of 5.5p (2013: 5.5p)	1,320	1,320
	Total dividends paid in the year	4,320	4,080
	2014 Final dividend proposed of 12.5p (2013: 11.5p)	3,000	2,760
	2013 Special dividend proposed of 1.0p	-	240
	Total dividends proposed for year	3,000	3,000

      The final dividend has been proposed in respect of the year ended 30th June 2014 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 2015.

3.  Return per share

     The revenue return per share is based on the earnings attributable to the ordinary shares of £5,200,000 (2013: £5,030,000) and on the weighted average number of shares in issue during the year of 23,997,180 (2013: 24,005,536).

     The capital return per share is based on the capital return attributable to the ordinary shares of £26,067,000 (2013: £54,986,000) and on the weighted average number of shares in issue during the year of 23,997,180 (2013: 24,005,536).

     Total return per share is based on the total return attributable to the ordinary shares of £31,267,000 (2013: £60,016,000) and on the weighted average number of shares in issue during the year of 23,997,180 (2013: 24,005,536).

4.  Net asset value per share

     Net asset value per share is based on total shareholders' funds of £199,089,000 (2013: £172,142,000) and on the 23,997,180 (2013: 23,997,180) shares in issue at the year end, excluding shares held in Treasury.

5. Status of announcement

     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 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.

     2014 Financial Information

The figures and financial information for 2014 are extracted from the Annual Report and Accounts for the year ended 30th June 2014 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

25th September 2014

For further information please contact:

Alison Vincent

For and on behalf of

JPMorgan Funds 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.morningstar.co.uk/uk/NSM

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

 

 

FR EASNLAENLEFF