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Half Year Report2012/13JPMorgan Overseas Investment Trust plc

Half Year Report & Accounts for the six months ended 31st December 2012

Features

Contents

About the Company

1 Half Year Performance2 Chairman’s Statement3 Investment Manager’s Report

Investment Review

5 List of Investments7 Portfolio Analyses

Accounts

8 Income Statement9 Reconciliation of Movements in

Shareholders’ Funds10 Balance Sheet11 Cash Flow Statement12 Notes to the Accounts14 Interim Management Report

Shareholder Information

15 Subscription Shares16 Glossary of Terms and Definitions17 Information about the Company

Objective

Capital growth from world stockmarkets.

Investment Policies

– To provide a diversified portfolio of approximately 70-90 stocks in which theinvestment manager has a high degree of conviction.

A significant, global commitment to proprietary research is essential in generatinginvestment ideas. A strong partnership between the investment manager andanalysts is key to understanding valuations and developing conviction.

Investment Strategy

To provide superior long-term capital growth by investing in a high convictionportfolio of companies with strong valuation signals, significant profit growthpotential and an identifiable catalyst to unlock that potential, regardless of industry,region or size.

Gearing

A flexible, low cost £25million borrowing facility is in place and available for theinvestment manager to utilise at times of low absolute valuation or for short termborrowing to avoid contingent investment decisions.

Benchmark

The Company’s benchmark is the MSCI All Country World Index in sterling terms (totalreturn with net dividends reinvested).

Capital Structure

At 31st December 2012, the Company’s issued share capital comprised 26,174,698ordinary shares of 25p each, including 2,123,654 shares held in Treasury.

Share Repurchase Policy

In order for the Company’s shares to trade at a relatively narrow discount, theCompany will repurchase its shares with the aim of maintaining an average discountof around 5% calculated with debt at par value. Any shares repurchased under thispolicy may be held in Treasury or cancelled. Shares held in Treasury will only bereissued at a premium to net asset value per share.

Management Company

The Company employs JPMorgan Asset Management (UK) Limited (‘JPMAM’ or‘the Manager’) to manage its assets.

JPMorgan Overseas Investment Trust plc. Half Year Report & Accounts 2012 1

Half Year PerformanceTotal returns (includes dividends reinvested)

+10.0%Return to shareholders1

+6.8%Return on net assets2

Financial Data31st December 30th June %

2012 2012 change

Shareholders’ funds (£’000) 198,870 199,939 –0.5

Number of shares in issue4 24,051,044 25,389,017 –5.3

Net asset value per share with debt at par value 826.9p 787.5p +5.0

Net asset value per share with debt at fair value5 826.9p 787.6p +5.0

Share price 776.5p 718.7p +8.0

Gearing/(net cash)6 10.6% 0.4%

Share price discount to net asset value per share7 6.1% 7.0%

A glossary of terms and definitions is provided on page 16.

1Source: Morningstar.2Source: J.P. Morgan.3Source: MSCI. The Company’s benchmark is the MSCI All CountryWorld Index in sterling terms (total return with netdividends reinvested).4Excludes shares held in Treasury.5The fair value of the £200,000 debenture issued by the Company has been calculated using discounted cash flowtechniques using the yield on a long dated gilt plus a margin based on the 5 year average for the AA Barclays CorporateBond.6Gearing represents the excess amount above shareholders’ funds of total assets less cash/cash equivalents, expressedas a percentage of the shareholders’ funds. If the amount calculated is negative, this is shown as a ‘net cash’ position.7Ex-income. Source: Bloomberg.

+6.1%Benchmark return3

Further analysis of these results is given in the table on page 2.

JPMorgan Overseas Investment Trust plc. Half Year Report & Accounts 20122

Chairman’s Statement

The period under review saw global equity markets rise considerably from thebeginning of the six months reporting period to 31st December 2012, driven byanticipated further actions from global central banks. It is encouraging to report thatthe Company’s trend of outperformance has been re-established following achallenging last financial year. The Company recorded a total return on net assets of+6.8%, marginally ahead of the total return of +6.1% of the benchmark, the MSCI AllCountry World Index (in sterling terms). The total return to shareholders was +10.0%over the reporting period as a result of the narrowing discount. Since the period end,global markets have continued to rally strongly and the Company’s net asset valuehas increased by 12.0% to 20th February 2013.

The Investment Manager provides further comments on performance, marketdevelopments and the Company’s portfolio in his report.

The Board regularly discusses gearing with the Investment Manager and continues tobelieve that it serves as a valuable tool to enhance performance over time. Reflectingthe Investment Manager’s more positive view of global equity markets, gearing wasreintroduced on 7th August 2012 by drawing down £20 million of the £25 millionborrowing facility with Scotiabank. The level of gearing at 31st December 2012 stoodat 10.6%.

In line with the Company’s discount management policy, we repurchased1,337,973 Ordinary shares at a cost of £10,084,000 during the six months period forholding into Treasury. The Board is pleased that these actions, which it has continuallyfollowed proactively, have been successful in reducing the volatility of the share pricediscount to net asset value. The Board continues to keep the discount under reviewand will purchase shares, if appropriate, in the interests of shareholders.

Following my announcement at the Annual General Meeting on 6th November 2012,the Board took the decision to propose to shareholders a bonus issue of subscriptionshares on the basis of one for every five Ordinary shares held to provide the Companyan opportunity to grow its capital base. This was agreed at a general meeting on10th January 2013. On 20th February 2013 the subscription shares were priced at42.5p, which equates to an additional 8.5p per Ordinary share or a further 1.1% to thereturn earned per Ordinary share since the period end, 31st December 2012.

While many of the significant world challenges have not diminished, the outlookfor the second half of the Company’s financial year appears positive. The Board hasconfidence in the Investment Manager’s approach of identifying companies withstrong growth potential and financial characteristics towards achieving stronglong-term performance for shareholders.

for and on behalf of the BoardSimon DaviesChairman 22nd February 2013

Performance attribution for the sixmonths ended 31st December 2012

% %

Contributions to total returns

Benchmark return 6.1

Asset allocation 0.3Stock selection 0.0Gearing/cash effect 0.4Currency 0.2

Investment managercontribution 0.9

Portfolio total return 7.0

Management fee/other expenses –0.3

Performance fee –0.2Share repurchases 0.3

Other effects –0.2

Return on net assets 6.8

Effect of decrease in discount 3.2

Return to shareholders 10.0

Source: Xamin/JPMAM and Morningstar.

All figures are on a total return basis.

Performance attribution analyses howthe Company achieved its recordedperformance relative to its benchmarkindex.

A glossary of terms and definitions isprovided on page 16.


Investment Manager’s Report

Market review

After reaching a low in June 2012, global equity markets performed strongly duringthe second half of the six months reporting period to 31st December 2012. Despite adecline in estimates for corporate earnings, the MSCI All Country World Indexincreased 6.1% in sterling terms and more than 10% in local currency terms. Sterlingcurrency strength relative to the US dollar and, in particular, the Japanese yencreated this dispersion. Market sentiment improved in July after the president of theEuropean Central Bank (ECB), Mario Draghi, announced that the ECB would do‘whatever it takes’ to preserve the euro. Aggressive monetary policies were notconfined to Europe but intensified across the globe. The US Federal Reserveintroduced the third and fourth round of Quantitative Easing, the Bank of Englandincreased its stimulus, while in Japan monetary policy was the primary issue in therecent elections.

All regions posted positive returns, led by Asia Pacific and Continental Europe. InEurope, bond yields responded to Draghi’s statement and fell significantly (10 yearSpanish bond yield declined from a peak of 7.6% in July to 5.3% at the end ofDecember) while private foreign ownership of Spanish and Italian bonds stabilised.Economic data in China showed signs of improvement, including an acceleration inboth industrial production and retail sales. This allayed fears of an abrupt slowdownand enabled a smooth, once in a decade, leadership transition. In Japan, equitymarkets rallied after Shinzo Abe’s Liberal Democratic Party won the election on anaggressive anti-deflation platform. Political uncertainty has been high in 2012 withmore than 65% of global GDP, including four out of the largest five economies,undergoing elections and/or leadership change. The US lagged global marketsduring the second half of 2012, as investor concerns surrounding the ‘fiscal cliff’overshadowed more encouraging economic data.

Portfolio review

Our portfolio outperformed its benchmark during the second half of 2012. Thisshould not be unexpected during a period of diminishing macro-economic concernand greater focus on stock specific fundamentals. Furthermore, portfolio gearingcontributed positively to returns over the period, given the strong performance ofequity markets. Areas of particular strength included technology and consumer nondurables. Within technology, Cognizant was a strong performer. The managementteam’s strategy continues to impress and offshore IT services is an industry capableof mid-teens growth over the next three years. In the consumer sector, AssociatedBritish Foods was one of the top performers as forecasts for both existing store salesgrowth at Primark and new store expansion (particularly in Germany) rose. After anegative period it was encouraging to see good performance from North Americanstocks, in particular Fluor (plant engineering and construction), Lowe’s (homeimprovement retailing) and First Quantum (copper mining). Stock selection inContinental Europe was mixed. Our holding in Solvay, a company where self-help andrestructuring has led to a continuation of positive results, contributed positively toperformance. A key detractor from performance during the second half of 2012 wasour limited exposure to banks, particularly in Europe.

Portfolio positioning

We have not made any significant changes to the overall shape of the portfolio andmaintain our pro-cyclical exposure. The portfolio continues to hold a number ofcontrarian ‘unloved’ companies, which have not participated in the recent marketrally and which we expect to perform well over the rest of the year. Furthermore, wehave taken the opportunity to add to our positions across a number of these names;


including Interoil (an energy company with significant untapped exploration potentialin Papua New Guinea) and Outokumpu (now the leader in a consolidating Europeanstainless steel market following a recent acquisition).

Geographically, our focus on companies which are cheap relative to global peerscontinues to lead us towards Europe and the UK and away from North America.Despite its recent underperformance, large parts of the US equity market remainexpensive in a global context. Exposure to Asia and Japan has remained largelyunchanged over the last six months. On a sector basis, we remain cautious onEuropean banks. While it has been frustrating to watch the rally, we have muchmore conviction in other, non financial, European names where there is greaterearnings visibility.

Significant new positions in the portfolio include Lam Research (US), Goodman Group(Australia), EADS (France) and Tullow Oil (UK). Lam is a leading provider of equipmentfor semiconductor manufacturing. Through its recent acquisition of Novellus Systemsit has gained exposure to new areas of the industry in which it can grow its marketshare. We also hold ASML (Netherlands) which should not only benefit from a cyclicalrebound but has also gained an insuperable position in lithography equipment.Goodman manages, develops and invests in modern industrial warehouses andbusiness parks. The business model is being rolled out across Asia, in particularChina, where Goodman is well positioned to benefit from the growth of third partylogistics providers. EADS, the company behind Airbus, offered us a very attractiveopportunity for purchase shortly after the aborted merger with BAE Systems. Civilaerospace order books are extremely strong and scope for margin improvement in itscore business is high. Tullow is one of Europe’s largest oil exploration and productioncompanies. It owns a well diversified exploration portfolio and, over the long term,has achieved an impressive appraisal and development track record. After adisappointing year, 2013 will see heavy exploration news flow. Relative to long termestimates for net asset value, the stock price appears very attractive.

Investment outlook

Central bank stimulus has reached unprecedented levels and although there arequestions around the long-term implications of such measures, global growth hasnevertheless stabilised and appears set to recover. Uncertainty remains aroundausterity in Europe, long-term debt sustainability in the US and growth in China.Over the coming months, however, we do not expect to see the same levels ofmarket turbulence that we have seen in recent years.

Corporate cash balances are at record levels and equity valuations are attractiverelative to bonds, providing a firm underpinning for equity markets. Company cashflows remain very strong, profit margins have proved robust and dividend growthrates across the world are attractive. In August 2012 we re-introduced a degree ofgearing into the portfolio, driven by improving economic sentiment, corporateresiliency 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 arevery well positioned to benefit from this shift and our dedicated team of highlyexperienced research analysts continue to unearth attractive investmentopportunities around the world.

Jeroen HuysingaInvestment Manager 22nd February 2013

Investment Manager’s Reportcontinued


ValuationCompany Sector £’000 %1

Associated British Foods United Kingdom 7,027 3.2InterOil North America 6,525 3.0Solvay (Belgium) Continental Europe 5,320 2.4Intercontinental Hotels United Kingdom 5,036 2.3Bayer (Germany) Continental Europe 4,733 2.2Sodexo (France) Continental Europe 4,484 2.0Schneider Electric (France) Continental Europe 4,350 2.0JPMorgan Emerging Markets Investment Trust Emerging Markets 4,202 1.9United Health North America 4,075 1.9Telenor (Norway) Continental Europe 3,890 1.8Orix Japan 3,867 1.8Morgan Stanley North America 3,759 1.7Hutchinson Whampoa (Hong Kong) Developed Asia 3,754 1.7Covidien North America 3,748 1.7Cognizant Technology Solutions North America 3,681 1.7Nokian Renkaat (Finland) Continental Europe 3,672 1.7Carnival North America 3,649 1.7China Merchants Bank ‘H’ Developed Asia 3,573 1.6Carlsberg (Denmark) Continental Europe 3,467 1.6Volkswagen (Germany) Continental Europe 3,425 1.6First Quantum Minerals North America 3,371 1.5UPM-Kymmene (Finland) Continental Europe 3,356 1.5Ping An Insurance (China) Developed Asia 3,338 1.5Capital One Financial North America 3,325 1.5Fluor North America 3,295 1.5Petrofac United Kingdom 3,242 1.5Tullow Oil United Kingdom 3,150 1.4Paccar North America 3,144 1.4ACE Continental Europe 3,133 1.4Experian United Kingdom 3,091 1.4Electrolux ‘B’ (Sweden) Continental Europe 3,088 1.4Hitachi Japan 2,912 1.3Shire United Kingdom 2,905 1.3APR Energy United Kingdom 2,887 1.3Union Pacific North America 2,787 1.3Allergan North America 2,740 1.2BG United Kingdom 2,725 1.2Metlife North America 2,676 1.2Wells Fargo North America 2,656 1.2European Aeronautic Defence & Space (Netherlands) Continental Europe 2,622 1.2LinkedIn North America 2,588 1.2Emerson Electric North America 2,569 1.2Kuehne & Nagel (Switzerland) Continental Europe 2,550 1.2

List of Investmentsat 31st December 2012


ValuationCompany Sector £’000 %1

Hon Hai Precision Industry (Taiwan) Developed Asia 2,505 1.1Compagnie de Saint-Gobain (France) Continental Europe 2,479 1.1China Overseas Land & Investments (Hong Kong) Developed Asia 2,402 1.1Occidental Petroleum North America 2,368 1.1SABMiller United Kingdom 2,313 1.0VF Corp North America 2,279 1.0Henkel (Germany) Continental Europe 2,220 1.0Mitsubishi Electric Japan 2,210 1.0Altera North America 2,185 1.0Time Warner North America 2,179 1.0Biogen Idec North America 2,163 1.0Lowes North America 2,145 1.0Peabody Energy North America 2,125 1.0Teva Pharmaceutical Industries Emerging Markets 2,093 1.0Novatek Microelectronics (Taiwan) Developed Asia 2,033 0.9Autozone North America 2,028 0.9Outokumpu ‘A’ (Finland) Continental Europe 1,820 0.8LAM Research North America 1,806 0.8Nissan Motor Japan 1,780 0.8LG Chemical Developed Asia 1,762 0.8Amazon North America 1,754 0.8JPMorgan Indian Investment Trust Emerging Markets 1,721 0.8CareFusion North America 1,668 0.8Petropavlosk United Kingdom 1,654 0.8Continental (Germany) Continental Europe 1,632 0.7Goodman (Australia) Developed Asia 1,582 0.7African Bank Investments Emerging Markets 1,573 0.7Broadcom ‘A’ North America 1,562 0.7Japan Airlines Japan 1,527 0.7Stora Enso (Finland) Continental Europe 1,418 0.6Pentair United Kingdom 1,385 0.6China Everbright International Developed Asia 1,139 0.5ASML (Netherlands) Continental Europe 1,085 0.5AerCap (Netherlands) Continental Europe 1,053 0.5Pearson United Kingdom 1,030 0.5JPMorgan Japan Smaller Companies Trust Japan 1,022 0.5Hamburger Hafen und Logistik (Germany) Continental Europe 316 0.1Net current assets (462) (0.2)

Total 219,941 100.0

1Based on total assets less current liabilities of £219.9m.

List of Investments continued


Portfolio Analyses

31st December 2012 30th June 2012Active Active

Portfolio Benchmark Position Portfolio Benchmark PositionGeographical Analysis % % % % % %

North America 36.0 49.7 (13.7) 36.8 51.6 (14.8)Continental Europe 27.3 16.0 11.3 24.8 14.9 9.9 United Kingdom 16.5 8.4 8.1 19.0 8.3 10.7 Developed Asia 9.9 5.7 4.2 6.8 5.2 1.6 Japan 6.1 7.4 (1.3) 7.3 7.8 (0.5)Emerging Markets 4.4 12.8 (8.4) 4.4 12.2 (7.8)

Total equities 100.2 100.0 99.1 100.0

Liquidity Fund — — — 0.2 — 0.2Net current (liabilities)/assets (0.2) — (0.2) 0.7 — 0.7

Total 100.0 100.0 100.0 100.0

Based on total assets less current liabilities of £219.9m (30th June 2012: £200.2m).

31st December 2012 30th June 2012Active Active

Portfolio Benchmark Position Portfolio Benchmark PositionSector Analysis % % % % % %

Consumer Discretionary 17.3 10.7 6.6 14.2 10.4 3.8 Industrials 16.9 10.4 6.5 15.5 10.4 5.1 Financials 16.3 21.1 (4.8) 15.9 19.4 (3.5)Health Care 11.0 9.3 1.7 10.8 9.5 1.3 Information Technology 9.3 12.1 (2.8) 7.3 12.8 (5.5)Energy 9.1 10.6 (1.5) 11.2 10.8 0.4 Materials 8.5 7.6 0.9 7.4 7.5 (0.1)Consumer Staples 6.8 10.4 (3.6) 9.8 10.7 (0.9)Investment Companies 3.2 — 3.2 3.2 — 3.2 Telecommunication Services 1.8 4.3 (2.5) 1.2 4.7 (3.5)Utilities — 3.5 (3.5) 2.6 3.8 (1.2)Liquidity Fund — — — 0.2 — 0.2 Net current (liabilities)/assets (0.2) — (0.2) 0.7 — 0.7

Total 100.0 100.0 100.0 100.0

Based on total assets less current liabilities of £219.9m (30th June 2012: £200.2m).


Income Statementfor the six months ended 31st December 2012

(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended31st December 2012 31st December 2011 30th June 2012

Revenue Capital Total Revenue Capital Total Revenue Capital Total£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Gains/(losses) on investments held at fair value through profit or loss — 12,784 12,784 — (37,887) (37,887) — (30,364) (30,364)

Net foreign currency (losses)/gains — (904) (904) — 2,661 2,661 — 2,508 2,508Income from investments 2,042 — 2,042 1,623 — 1,623 4,439 — 4,439Other interest receivable and

similar income 79 — 79 37 — 37 99 — 99

Gross return/(loss) 2,121 11,880 14,001 1,660 (35,226) (33,566) 4,538 (27,856) (23,318)Management fee (207) (207) (414) (204) (204) (408) (403) (403) (806)Performance fee (charge)/writeback — (785) (785) — 1,884 1,884 — 1,695 1,695Other administrative expenses (209) — (209) (210) — (210) (476) — (476)

Net return/(loss) on ordinary activities before finance costs and taxation 1,705 10,888 12,593 1,246 (33,546) (32,300) 3,659 (26,564) (22,905)

Finance costs (68) (68) (136) (37) (37) (74) (65) (65) (130)

Net return/(loss) on ordinary activities before taxation 1,637 10,820 12,457 1,209 (33,583) (32,374) 3,594 (26,629) (23,035)

Taxation (note 3) (154) — (154) (118) — (118) (316) — (316)

Net return/(loss) on ordinary activities after taxation 1,483 10,820 12,303 1,091 (33,583) (32,492) 3,278 (26,629) (23,351)

Return/(loss) per share (note 4) 6.02p 43.95p 49.97p 4.18p (128.72)p (124.54)p 12.64p (102.68)p (90.04)p

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired ordiscontinued in the period.

The ‘Total’ column of this statement is the profit and loss account of the Company and the ‘Revenue’ and ‘Capital’ columnsrepresent supplementary information prepared under guidance issued by The Association of Investment Companies. The Totalcolumn 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 inShareholders’ Funds

Called up CapitalSix months ended share Share redemption Capital Revenue31st December 2012 capital premium reserve reserves reserve Total(Unaudited) £’000 £’000 £’000 £’000 £’000 £’000

At 30th June 2012 6,544 1,015 27,401 147,241 17,738 199,939Repurchase of shares into Treasury — — — (10,084) — (10,084)Net return on ordinary activities — — — 10,820 1,483 12,303Dividend appropriated in the period — — — — (3,288) (3,288)

At 31st December 2012 6,544 1,015 27,401 147,977 15,933 198,870

Called up CapitalSix months ended share Share redemption Capital Revenue31st December 2011 capital premium reserve reserves reserve Total(Unaudited) £’000 £’000 £’000 £’000 £’000 £’000

At 30th June 2011 6,544 970 27,401 178,926 17,986 231,827Repurchase of shares into Treasury — — — (1,230) — (1,230)Re-issue of shares from Treasury — 45 — 243 — 288Net (loss)/return on ordinary activities — — — (33,583) 1,091 (32,492)Dividend appropriated in the period — — — — (3,526) (3,526)

At 31st December 2011 6,544 1,015 27,401 144,356 15,551 194,867

Called up CapitalYear ended share Share redemption Capital Revenue30th June 2012 capital premium reserve reserves reserve Total(Audited) £’000 £’000 £’000 £’000 £’000 £’000

At 30th June 2011 6,544 970 27,401 178,926 17,986 231,827Repurchase of shares into Treasury — — — (5,299) — (5,299)Re-issue of shares from Treasury — 45 — 243 — 288Net (loss)/return on ordinary activities — — — (26,629) 3,278 (23,351)Dividend appropriated in the year — — — — (3,526) (3,526)

At 30th June 2012 6,544 1,015 27,401 147,241 17,738 199,939


Balance Sheetat 31st December 2012

(Unaudited) (Unaudited) (Audited)31st December 2012 31st December 2011 30th June 2012

£’000 £’000 £’000

Fixed assetsEquity investments held at fair value through

profit or loss 220,403 189,777 198,584Investments in liquidity funds held at fair value

through profit or loss — 3,250 390

Total investments 220,403 193,027 198,974

Current assetsFinancial assets: derivative financial instruments 568 2,384 1,567Debtors 659 283 1,171Cash and short term deposits 45 168 1,347

1,272 2,835 4,085Creditors: amounts falling due within one year (581) (269) (2,298)Financial liabilities: derivative financial instruments (1,153) (526) (558)

Net current (liabilities)/assets (462) 2,040 1,229

Total assets less current liabilities 219,941 195,067 200,203

Creditors: amounts falling due after more than one year (20,200) (200) (200)

Provisions for liabilities and chargesPerformance fee (871) — (64)

Net assets 198,870 194,867 199,939

Capital and reservesCalled up share capital 6,544 6,544 6,544Share premium 1,015 1,015 1,015Capital redemption reserve 27,401 27,401 27,401Capital reserves 147,977 144,356 147,241Revenue reserve 15,933 15,551 17,738

Total equity shareholders’ funds 198,870 194,867 199,939

Net assetvalue per share (note5) 826.9p 751.2p 787.5p

Company registration number: 24299.


Cash Flow Statementfor the six months ended 31st December 2012

(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended

31st December 2012 31st December 2011 30th June 2012£’000 £’000 £’000

Net cash inflow/(outflow) from operating activities (note 6) 1,224 (367) 1,648

Net cash outflow from returns on investments and servicing of finance (149) (170) (224)

Taxation recovered 3 24 40Net cash (outflow)/inflow from capital expenditure

and financial investment (9,327) 19,934 22,170Dividend paid (3,288) (3,526) (3,526)Net cash inflow/(outflow) from financing 9,545 (18,587) (22,316)

Decrease in cash for the period (1,992) (2,692) (2,208)

Reconciliation of net cash flow to movement in net debt

Net cash movement (1,992) (2,692) (2,208)Loans (drawn down)/repaid in the period (20,000) 17,800 17,800Exchange movements 690 1,985 2,680

Movement in net funds/(debt) in the period (21,302) 17,093 18,272Net funds/(debt) at the beginning of the period 1,147 (17,125) (17,125)

Net (debt)/funds at the end of the period (20,155) (32) 1,147

Represented by:Cash and short term deposits 45 168 1,347Debt falling due inmore than one year but

not more than five years (20,000) — —Debt falling due after more than five years (200) (200) (200)

Total (20,155) (32) 1,147


Notes to the Accountsfor the six months ended 31st December 2012

1. Financial statements

The information contained within the accounts in this half year report has not been audited or reviewed by the Company’sauditors.

The figures and financial information for the year ended 30th June 2012 are extracted from the latest published accounts ofthe Company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar ofCompanies and included the report of the auditors which was unqualified and did not contain a statement under eithersection 498(2) or 498(3) of the Companies Act 2006.

2. Accounting policies

The accounts have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice and with theStatement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ datedJanuary 2009.

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

The accounting policies applied to these half year accounts are consistent with those applied in the accounts for the yearended 30th June 2012.

3. Taxation

The taxation charge of £154,000 (31st December 2011: £118,000 and 30th June 2012: £316,000) comprises irrecoverableoverseas withholding tax.

4. Return/(loss) per share



Return/(loss) per share is based on the following:Revenue return 1,483 1,091 3,278Capital return/(loss) 10,820 (33,583) (26,629)

Total return/(loss) 12,303 (32,492) (23,351)

Weighted average number of shares in issue 24,622,969 26,089,914 25,935,640Revenue return per share 6.02p 4.18p 12.64pCapital return/(loss) per share 43.95p (128.72)p (102.68)p

Total return/(loss) per share 49.97p (124.54)p (90.04)p

5. Net asset value per share

Net asset value per share is calculated by dividing the funds attributable to ordinary shareholders by the number of ordinaryshares in issue at 31st December 2012 of 24,051,044 (31st December 2011: 25,942,428 and 30th June 2012: 25,389,017),excluding shares held in Treasury.


6. Reconciliation of total return/(loss) on ordinary activities before finance costs and taxation to net cash inflow from operating activities



Total return/(loss) on ordinary activities before finance costs and taxation 12,593 (32,300) (22,905)

Less capital (return)/loss before finance costs and taxation (10,888) 33,546 26,564

Scrip dividends received as income (32) (29) (29)Net movement in debtors and accruals 3 (41) (11)Overseas withholding tax (141) (114) (343)Management fee charged to capital (207) (204) (403)Performance fee paid (104) (1,225) (1,225)

Net cash inflow/(outflow) from operating activities 1,224 (367) 1,648


Interim Management Report

The Company is required to make the following disclosures inits half year report.

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Companyhave not changed and fall into the following broadcategories: investment and strategy; market; accounting,legal and regulatory; corporate governance and shareholderrelations; operational; and financial. Information on each ofthese areas is given in the Business Review within the AnnualReport and Accounts for the year ended 30th June 2012.

Related Parties Transactions

During the first six months of the current financial year, notransactions with related parties have taken place which havematerially affected the financial position or the performance ofthe Company during the period.

Directors’ Responsibilities

The Board of Directors confirms that, to the best of itsknowledge:

(i) the condensed set of financial statements contained withinthis half year report has been prepared in accordance withthe Accounting Standards Board’s Statement ‘Half-YearlyFinancial Reports’; and

(ii) the interim management report includes a fair review ofthe information required by 4.2.7R and 4.2.8R of the UKListing Authority Disclosure and Transparency Rules.

for and on behalf of the Board

Simon DaviesChairman 22nd February 2013


Subscription Shares

On 15th January 2013 the Company issued Subscription sharesas a bonus issue to the Ordinary shareholders on the basis ofone Subscription share for every five Ordinary shares held.Each Subscription share confers the right (but not theobligation) to subscribe for one Ordinary share to have effecton 31st October 2013, 30th April 2014, 31st October 2014,30th April 2015 or 30th October 2015, after which the rights onthe Subscription shares will lapse.

Future exercise prices have been determined as follows:

(a) If exercised to have effect on 31st October 2013 –900 pence;

(b) If exercised to have effect on 30th April 2014 or31st October 2014 – 943 pence.

(c) If exercised to have effect on 30th April 2015 or30th October 2015 – 986 pence.

To be exercised, a notice of exercise must be received by theRegistrar no later than 10 days before the relevant exercisedate and no earlier than 30 business days before the relevantexercise date.

For the purposes of UK taxation, the issue of Subscriptionshares is treated as a reorganisation of the Company’s sharecapital. Whereas such reorganisations do not trigger achargeable disposal for the purposes of the taxation of capitalgains, they do require shareholders to reallocate the base costsof their Ordinary shares between Ordinary shares andSubscription shares received.

At the close of business on 15th January 2013 the middlemarket prices of the Company’s Ordinary shares andSubscription shares were as follows:

Ordinary shares: 803pSubscription shares: 27p

Accordingly an individual investor who on 11th January 2013held five Ordinary shares (or a multiple thereof) would havereceived a bonus issue of one Subscription share (or therelevant multiple thereof) and would apportion the base cost ofsuch holding 99.33% to the five Ordinary shares and 0.67% tothe Subscription share.


Glossary of Terms and Definitions

Return to shareholders Total return to the investor, on a mid-market price tomid-market price basis, assuming that all dividends receivedwere reinvested, without transaction costs, into the shares ofthe Company at the time the shares were quoted ex-dividend.

Return on net assets Total return on net asset value (‘NAV’) per share, on a bid valueto bid value basis, assuming that all dividends paid out by theCompany were reinvested into the shares of the Companyat the NAV per share at the time the shares were quotedex-dividend.

In accordance with industry practice, dividends payable whichhave been declared but which are unpaid at the balance sheetdate are deducted from the NAV per share when calculatingthe total return on net assets.

Benchmark return Total return on the benchmark, on a mid-market value tomid-market value basis, assuming that all dividends receivedwere reinvested into the shares of the underlying companiesat the time the shares were quoted ex-dividend.

The benchmark is a recognised index of stocks which shouldnot be taken as wholly representative of the Company’sinvestment universe. The Company’s investment strategy doesnot ‘track’ this index and consequently, there may be somedivergence between the Company’s performance and that ofthe benchmark.

Gearing/(net cash)Gearing represents the excess amount above shareholders’funds of total assets less cash/cash equivalents, expressed as apercentage of the shareholders’ funds. If the amount calculatedis negative, this is shown as a ‘net cash’ position.

Share price discount/premium to net asset value (‘NAV’) per shareIf the share price of an investment trust is lower than theNAV per share, the shares are said to be trading at a discount.The discount is shown as a percentage of the NAV per share.The opposite of a discount is a premium. It is more commonfor an investment trust’s shares to trade at a discount than ata premium.

Active position The active position shows the difference between theCompany’s holding of an individual stock or sector comparedwith the stock or sector’s weighting in the Company’sbenchmark. A positive number indicates an active decision bythe Manager to own more of (i.e. be overweight) a particularstock or sector versus the benchmark and a negative numberindicates a decision to hold less of (i.e. be underweight) aparticular stock or sector versus the benchmark.

Performance attribution definitions:

Asset allocation Measures the impact of allocating assets differently from thosein the benchmark, via the portfolio’s weighting in differentcountries, sectors or asset types.

Stock selection Measures the effect of investing in securities to a greater orlesser extent than their weighting in the benchmark, or ofinvesting in securities which are not included in thebenchmark.

Gearing/cash effect Measures the impact on returns of borrowings or cashbalances on the Company’s relative performance.

Currency Measures the impact of investing in different currencies on theperformance which is measured in sterling terms.

Management fee/other expenses The payment of fees and expenses reduces the level of totalassets, and therefore has a negative effect on relativeperformance.

Performance feeMeasures the effect of a performance fee charge or writeback.

HistoryThe Company was formed in 1887. The Company was a general investment trustuntil 1982, when it adopted its current objective. The current name was adoptedin 2006.

The Company is managed by JPMorgan Asset Management (UK) Limited, and thepresent named investment manager, Jeroen Huysinga, is responsible for theportfolio.

DirectorsSimon Davies (Chairman)Jonathan CareyGay CollinsNigel Wightman

Company NumbersCompany registration number: 24299Stock Exchange SEDOL Number: 0914327Bloomberg Code: JMO LNReuters Code: JMO.L

Market InformationThe Company’s net asset value (‘NAV’) per share is published daily, via the LondonStock Exchange. The Company’s shares are listed on the London Stock Exchangeand the New Zealand Stock Exchange.

The Company’s shares may be dealt in directly through a stockbroker orprofessional adviser acting on an investor’s behalf. They may also be purchasedand held through the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan SIPP. These products are all available on the online wealth managerservice, J.P. Morgan WealthManager+ available atwww.jpmorganwealthmanagerplus.co.uk

Websitewww.jpmoverseas.co.uk

Share TransactionsThe Company’s shares may be dealt in directly through a stockbroker orprofessional adviser acting on an investor’s behalf. They may also be purchasedand held through the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan SIPP. These products are all available on the online wealth managerservice, J.P. Morgan WealthManager+ available atwww.jpmorganwealthmanagerplus.co.uk

Manager and Company SecretaryJPMorgan Asset Management (UK) Limited

Company’s Registered OfficeFinsbury Dials20 Finsbury StreetLondon EC2Y 9AQTelephone number: 020 7742 4000

For company secretarial and administrative matters, please contact Divya Amin.

CustodianJPMorgan Chase Bank, N.A.25 Bank StreetCanary WharfLondon E14 5JP

UK RegistrarsEquiniti LimitedReference 1103, Aspect House Spencer Road Lancing West Sussex BN99 6DA Telephone: 0871 384 2330 Overseas helpline: +44 121 415 7047

Notifications of changes of address and enquiries regarding share certificates ordividend cheques should be made in writing to the Registrar quoting reference1103. Registered shareholders can obtain further details on individual holdings onthe internet by visiting www.shareview.co.uk.

New Zealand Registrars Computershare Investor Services Limited Private Bag 92119 Auckland 1020 Level 2 159 Hurstmere Road Takapuna North Shore City New Zealand. Telephone: 09 522 0022

Notifications of changes of address and enquiries regarding certificates ordividend cheques should be made in writing to the Registrars.

Independent AuditorsPricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors7 More London RiversideLondon SE1 2RT

UK Brokers Winterflood Securities LimitedThe Atrium Building Cannon Bridge 25 Dowgate Hill London EC4R 2GA Telephone: 020 3100 0000

New Zealand Brokers First NZ Capital Securities P.O. Box 396 Wellington New Zealand Telephone: 0800 800 968 (NZ Toll Free) Please contact Peter Irwin

Savings Product AdministratorsFor queries on the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan SIPP, see contact details on the back cover of this report.

Information about the Company

Financial CalendarFinancial year end 30th JuneHalf year results announced FebruaryFinal results announced SeptemberFinal dividend on shares NovemberInterest payment on 4.5% perpetual debenture stock 1st January, 1st JulyAnnual General Meeting NovemberInterim Management Statements May and November

A member of the AIC


J.P. Morgan HelplineFreephone 0800 20 40 20 or +44 (0)20 7742 9995

Your telephone call may be recorded for your security

www.jpmoverseas.co.uk

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