clean security cover - j.p. morgan asset management · totvs brazil 8,284 1.26 xinyi glass china...

Half Year Report2011/12JPMorgan Emerging Markets

Investment Trust plcHalf Year Report & Accounts for the six months ended 31st December 2011

Features

Contents

About the Company

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

Investment Review

4 List of Investments6 Portfolio Analyses

Accounts

7 Income Statement8 Reconciliation of Movements inShareholders’ Funds

9 Balance Sheet10 Cash Flow Statement11 Notes to the Accounts

Shareholder Information

13 Interim Management Report14 Subscription Shares15 Glossary of Terms and Definitions17 Information about the Company

Objective

Capital growth from emerging markets worldwide.

Investment Policies

- To invest in a diversified portfolio, concentrating on countries and shares with themost attractive prospects. To have no more than 50% of the Company’s assetsinvested in any one region.

- To invest no more than 15% of gross assets in other UK listed investment companies(including investment trusts).

Benchmark

The MSCI Emerging Markets Free Index with net dividends reinvested, in sterlingterms.

Share Capital

At 31st December 2011, the Company’s issued share capital comprised 114,399,875Ordinary shares of 25p each, including 70,000 shares held in Treasury, and 17,963,650Subscription shares of 1p each.

Continuation Vote

At the Annual General Meeting held on 14th November 2011 an ordinary resolution ofthe shareholders approved the continuation of the Company until the Annual GeneralMeeting in November 2014 and at three yearly intervals thereafter.

Management Company

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

JPMorgan Emerging Markets Investment Trust plc. Half Year Report & Accounts 2011 1

Half Year PerformanceTotal returns (includes dividends reinvested)

–12.7%Return to Ordinary

shareholders5

–13.6%Diluted return on net assets1,4

–16.5%Benchmark3

–15.4%Portfolio return net of fees

and expenses1,2

Financial Data31st December 30th June %

2011 2011 change

Shareholders’ funds (£’000) 658,580 785,060 –16.1

Ordinary shares in issue (excluding shares held in Treasury) 114,329,875 114,365,583 0.0

Ordinary share price 518.0p 597.5p –13.3

Ordinary share price discount to diluted net assetvalue per Ordinary share 7.5% 8.8%

Subscription share price 57.5p 135.0p –57.4

Subscription shares in issue 17,963,650 17,997,942 –0.2

A glossary of terms and definitions is provided on page 15.

1Source: J.P. Morgan.2Return on net assets, net of management and performance fees and administration expenses, but excluding both the effect of Subscription shares whichhave been converted during the period and the dilutive impact of Subscription shares in issue at the period end.3Source: Datastream. The Company’s benchmark is the MSCI Emerging Market Free Index with net dividends reinvested, in sterling terms. 4Return on net assets calculated using the diluted net asset value, which assumes that all outstanding Subscription shares were converted into Ordinaryshares at the period end.

5Source: Morningstar.

JPMorgan Emerging Markets Investment Trust plc. Half Year Report & Accounts 20112

Chairman’s Statement

Performance

Following the strong returns in the year to 30th June 2011, equity markets suffered asharp correction in the first half of the Company’s financial year. In the six months to31st December 2011, the portfolio return net of fees and expenses was –15.4%, ascompared to the total return from our benchmark index, the MSCI Emerging MarketsFree Index (in sterling terms) of –16.5%. The diluted total return on net assets, whichassumes that all of the Company’s Subscription shares were exercised at the price of460 pence per share, was –13.6%. Over the same period, the return to Ordinaryshareholders was –12.7%. A review of the Company’s performance for the first sixmonths and the outlook for the remainder of the year is provided in the InvestmentManager’s Report on page 3.

Discount

During the first six months of this financial year, the discount on the Company’sOrdinary shares to their diluted net asset value (‘NAV’) ranged between 6.0% and11.2%, averaging 8.6%. As I explained in the last annual report, the Board would likethe Company’s Ordinary shares to continue to trade at a discount of less than 10% tothe diluted NAV and is therefore prepared to buy in shares at discounts of between8% and 10% to achieve this, but only if the discount is out of line with our peer groupand market conditions are orderly. During the period the Company repurchased70,000 Ordinary shares into Treasury at a 9.3% discount to NAV.

Subscription shares

During the six months to 31st December 2011 and up to the date of this report, theCompany has issued a total of 55,404 Ordinary shares following the exercise ofSubscription shares, amounting to proceeds of £255,000. Further details of theSubscription shares can be found on page 14 of this report and on the Company’swebsite at www.jpmemergingmarkets.co.uk

Outlook

The second half of 2011 was disappointing for emergingmarkets equities, as anumber of factors increased the risks to global growth. Those factors, such as the riskof continued inflationary pressures and uncertainty in the Eurozone, are unlikely tobe resolved quickly but equity valuations are attractive and we remain confident thatour Investment Manager will continue to add value over the long term.

Alan SaundersChairman 27th February 2012


Investment Manager’s Report

The last six months of 2011 was not a happy period for equity investors in general,nor, more specifically, for investors in emerging markets; the benchmark index foryour Company declined by 16.5% during the first six months of your Company’sfinancial year, while the net asset value per share, net of fees and expenses, fell by15.4% on an undiluted basis and by 13.6% once dilution is taken into account.

Three major factors conspired to depress equity prices. The first, which led to a sharpsell-off in July and August, was the gamesmanship in American politics which led theUSA dangerously close to a position of technical default. At a time of economicfragility, this was not the example of political leadership that the world was lookingfor. The second was the ever-darkening sky over the Eurozone. Markets continued topress the harsh realities of debt and deficits on a political structure and a group ofleaders which seemed ill-designed and ill-equipped to cope. Again, politicalleadership seemed in short supply, and the ability to overcome vested interests andpress for a resolution appeared as elusive as ever. Against this background, emergingmarkets look economically robust, but they are suffering from a third factor: somecyclical pressures, mostly in the form of inflation, which are requiring a tightening ofpolicy and in consequence an economic slowing. This in itself is not a seriousdevelopment and should prove temporary.

In the long run, emerging markets still offer great potential for the patient andthorough investor. Over the longest periods, returns from equities should be afunction of the valuation of stocks and the underlying ability of companies togenerate and grow profits and dividends over time. Economic cycles influence these,but do not really alter the long term trend of returns and our investing horizon, whichsets out to be as long as possible and tries to look through cycles rather than becomefixated by them. Valuations in general look reasonable or better after last year’sdecline, which means one less risk to worry about. Accordingly, we spend most of ourtime trying to find and understand good, sustainable businesses and act only whenprices look acceptable. Market cycles do not change this and our efforts in the rest ofthis year and beyond will continue to pursue investment opportunities using thisapproach.

Austin ForeyInvestment Manager 27th February 2012


ValuationCompany Country of Listing £’000 %

Housing Development Finance India 24,484 3.73Vale1 Brazil 21,192 3.23Petroleo Brasileiro1 Brazil 17,819 2.72Taiwan Semiconductor Manufacturing1 Taiwan 17,204 2.62Li & Fung Hong Kong 15,598 2.38Wumart Stores China 15,294 2.33Hyundai Mobis South Korea 15,087 2.30Companhia de Bebidas das Americas1 Brazil 15,061 2.30China Merchants Bank China 14,361 2.19Ping An Insurance China 14,248 2.17Hyundai Motor South Korea 14,098 2.15Astra International Indonesia 13,893 2.12Magnit Russia 13,685 2.09Wal-Mart De Mexico Mexico 13,434 2.05Ultrapar Participaçoes Brazil 13,285 2.02African Bank Investments South Africa 13,284 2.02Itau Unibanco Brazil 13,132 2.00AIA Hong Kong 12,640 1.93Turkiye Garanti Bankasi Turkey 12,404 1.89Bharti Airtel India 10,849 1.65Banco Santander-Chile Chile 10,838 1.65Infosys Technologies1 India 10,660 1.62MTN South Africa 10,259 1.56Compartamos Mexico 10,188 1.55Capitec Bank South Africa 10,104 1.54WEG Brazil 9,985 1.52Grupo Financiero Banorte Mexico 9,789 1.49Tsingtao Brewery China 9,730 1.48United Breweries India 9,555 1.46International Personal Finance United Kingdom 9,353 1.43Bank Rakyat Indonesia Indonesia 8,925 1.36Jardine Matheson Hong Kong 8,802 1.34Cielo Brazil 8,733 1.33OGX Petroleo e Gas Participaçoes Brazil 8,304 1.27TOTVS Brazil 8,284 1.26Xinyi Glass China 8,230 1.25Anhui Conch Cement China 8,221 1.25Sberbank Russia 8,213 1.25Impala Platinum South Africa 8,197 1.25Massmart South Africa 8,016 1.22

List of Investmentsat 31st December 2011


ValuationCompany Country of Listing £’000 %

Yes Bank India 7,918 1.21Grupo Aeroportuario del Sureste1 Mexico 7,843 1.20China Mobile Hong Kong 7,761 1.18Tingyi China 7,708 1.17Shoprite Holdings South Africa 7,650 1.17Clicks South Africa 7,340 1.12Hon Hai Precision Taiwan 7,161 1.09Discovery South Africa 7,118 1.08RMB South Africa 6,386 0.97ACC India 6,376 0.97Tenaris1 Argentina 6,370 0.97Cafe De Coral Hong Kong 6,162 0.94Infosys Technologies India 5,495 0.84Posco South Korea 5,435 0.83Unilever Indonesia Indonesia 5,419 0.83Top Glove Malaysia 5,221 0.80E-mart South Korea 5,205 0.79Hang Lung Properties Hong Kong 5,056 0.77British American Tobacco Malaysia Malaysia 4,285 0.65Tripod Technology Taiwan 3,903 0.59KOC Turkey 3,753 0.57Orascom Construction Industries Egypt 3,124 0.48Shinsegae Food South Korea 3,005 0.46Ambuja Cements India 2,914 0.44Convenience Retail Asia Hong Kong 2,910 0.44Sun Art Retail Group Hong Kong 2,716 0.41H.K. Aircraft Engineering Hong Kong 2,606 0.40Bidvest Group South Africa 2,364 0.36BRR Guardian Modaraba Pakistan 33 0.01

JPMorgan US Dollar Liquidity Fund2 JPM Liquidity Stock 21,572 3.29

Total investments 656,247 100.00

1Includes ADRs/GDRs/ADSs/BDRs.2Managed by JPMorgan Asset Management.


Geographical Analysis31st December 2011 30th June 2011

Portfolio Benchmark Portfolio Benchmark% % % %

East Asia 32.4 45.7 30.4 44.9Latin America 26.4 23.0 23.4 22.9Europe/Middle East/Africa 19.9 17.9 22.7 18.5South Asia 17.6 13.4 18.3 13.7

Total equities 96.3 100.0 94.8 100.0

Liquidity fund 3.3 — 2.9 —Net current assets 0.4 — 2.3 —

Total 100.0 100.0 100.0 100.0

Based on total assets less current liabilities of £658.6m (30th June 2011: £785.1m).

Sector Analysis31st December 2011 30th June 2011

Portfolio Benchmark Portfolio Benchmark% % % %

Financials 30.1 23.8 31.6 24.7Consumer Staples 19.0 8.1 15.4 6.7Consumer Discretionary 12.0 8.1 14.7 7.7Information Technology 9.3 13.1 8.7 12.1Materials 7.9 13.3 8.6 14.9Energy 7.0 14.0 6.1 14.5Industrials 5.8 6.4 4.7 7.5Telecommunication Services 4.4 8.5 4.3 7.3Health Care 0.8 1.0 0.7 1.0Utilities — 3.7 — 3.6

Total equities 96.3 100.0 94.8 100.0

Liquidity fund 3.3 — 2.9 —Net current assets 0.4 — 2.3 —

Total 100.0 100.0 100.0 100.0

Based on total assets less current liabilities of £658.6m (30th June 2011: £785.1m).

Portfolio Analyses


Income Statementfor the six months ended 31st December 2011

(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended31st December 2011 31st December 2010 30th June 2011

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

(Losses)/gains on investments held at fair value through profit or loss — (123,422) (123,422) — 165,660 165,660 — 138,790 138,790

Net foreign currency (losses)/gains — (589) (589) — 308 308 — 372 372Income from investments 6,849 — 6,849 6,701 — 6,701 15,905 — 15,905Other interest receivable and similar income 1 — 1 1 — 1 7 — 7

Gross return/(loss) 6,850 (124,011) (117,161) 6,702 165,968 172,670 15,912 139,162 155,074Management fee (3,535) — (3,535) (3,548) — (3,548) (7,394) — (7,394)Performance fee — (659) (659) — (3,068) (3,068) — (1,941) (1,941)Other administrative expenses (589) — (589) (595) — (595) (1,182) — (1,182)

Net return/(loss) on ordinary activities before finance costs and taxation 2,726 (124,670) (121,944) 2,559 162,900 165,459 7,336 137,221 144,557

Finance costs (3) — (3) (5) — (5) (6) — (6)

Net return/(loss) on ordinary activities before taxation 2,723 (124,670) (121,947) 2,554 162,900 165,454 7,330 137,221 144,551

Taxation (note 3) (324) — (324) (417) — (417) (1,132) — (1,132)

Net return/(loss) on ordinary activities after taxation 2,399 (124,670) (122,271) 2,137 162,900 165,037 6,198 137,221 143,419

Return/(loss) per Ordinary share(note 4)

Undiluted 2.10p (109.00)p (106.90)p 1.88p 143.09p 144.97p 5.43p 120.28p 125.71pDiluted 2.06p (106.82)p (104.76)p 1.82p 138.76p 140.58p 5.26p 116.52p 121.78p

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 Other Capital Revenue31st December 2011 capital premium reserve reserve reserves reserve Total(Unaudited) £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 30th June 2011 28,771 86,781 1,665 69,939 587,825 10,079 785,060Repurchase of shares into Treasury — — — — (363) — (363)Issue of Ordinary shares on exerciseof Subscription shares 9 149 — — — — 158

Net (loss)/return on ordinary activities — — — — (124,670) 2,399 (122,271)Dividends appropriated in the period — — — — — (4,004) (4,004)

At 31st December 2011 28,780 86,930 1,665 69,939 462,792 8,474 658,580

Called up CapitalSix months ended share Share redemption Other Capital Revenue31st December 2010 capital premium reserve reserve reserves reserve Total(Unaudited) £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 30th June 2010 28,010 74,138 1,665 69,939 450,604 7,539 631,895Exercise of Subscription shares into Ordinary shares (31) 31 — — — — —

Issue of Ordinary shares on exerciseof Subscription shares 780 12,384 — — — — 13,164

Net return on ordinary activities — — — — 162,900 2,137 165,037Dividends appropriated in the period — — — — — (3,657) (3,657)

At 31st December 2010 28,759 86,553 1,665 69,939 613,504 6,019 806,439

Called up CapitalYear ended share Share redemption Other Capital Revenue30th June 2011 capital premium reserve reserve reserves reserve Total(Audited) £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 30th June 2010 28,010 74,138 1,665 69,939 450,604 7,539 631,895Exercise of Subscription shares into Ordinary shares (32) 32 — — — — —

Issue of Ordinary shares on exercise of Subscription shares 793 12,611 — — — — 13,404

Net return on ordinary activities — — — — 137,221 6,198 143,419Dividends appropriated in the year — — — — — (3,658) (3,658)

At 30th June 2011 28,771 86,781 1,665 69,939 587,825 10,079 785,060


Balance Sheetat 31st December 2011

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

2011 2010 2011£’000 £’000 £’000

Fixed assetsInvestments held at fair value through profit or loss 634,675 802,055 744,489Investments in liquidity funds held at fair value through profit or loss 21,572 511 22,439

Total investments 656,247 802,566 766,928

Current assetsDebtors 580 961 2,294Cash and short term deposits 3,698 6,171 18,350

4,278 7,132 20,644Creditors: amounts falling due within one year (1,945) (3,259) (2,512)

Net current assets 2,333 3,873 18,132

Total assets less current liabilities 658,580 806,439 785,060

Net assets 658,580 806,439 785,060

Capital and reservesCalled up share capital 28,780 28,759 28,771Share premium 86,930 86,553 86,781Capital redemption reserve 1,665 1,665 1,665Other reserve 69,939 69,939 69,939Capital reserves 462,792 613,504 587,825Revenue reserve 8,474 6,019 10,079

Total equity shareholders’ funds 658,580 806,439 785,060

Net asset value per Ordinary share (note 5)Undiluted 576.0p 705.5p 686.4pDiluted 560.3p 672.0p 655.7p

Company registration number: 2618994


Cash Flow Statementfor the six months ended 31st December 2011

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

31st December 2011 31st December 2010 30th June 2011£’000 £’000 £’000

Net cash inflow from operating activities (note 6) 2,016 1,591 4,452Net cash outflow from returns on investments and servicing of finance (3) (5) (6)

Net cash (outflow)/inflow from capital expenditureand financial investment (11,865) (5,699) 3,317

Dividend paid (4,004) (3,657) (3,658)

Net cash (outflow)/inflow before financing (13,856) (7,770) 4,105Net cash (outflow)/inflow from financing (205) 13,163 13,404

(Decrease)/increase in cash in the period (14,061) 5,393 17,509

Reconciliation of net cash flow to movement in net funds

Net cash movement (14,061) 5,393 17,509Exchange movements (591) 309 372

Movement in net funds in the period (14,652) 5,702 17,881Net funds at the beginning of the period 18,350 469 469

Net funds at the end of the period 3,698 6,171 18,350

Represented by:Cash and short term deposits 3,698 6,171 18,350

1. Financial statements

The information contained within the financial statements in this half year report has not been audited or reviewed by theCompany’s auditors.

The figures and financial information for the year ended 30th June 2011 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’ issuedin January 2009.

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

The accounting policies applied to these interim accounts are consistent with those applied in the accounts for the year ended30th June 2011.

3. Taxation

The taxation charge of £324,000 (31st December 2010: £417,000 and 30th June 2011: £1,132,000) comprises irrecoverableoverseas withholding tax.

4. Return/(loss) per Ordinary share



Return per Ordinary share is based on the following:Revenue return 2,399 2,137 6,198Capital (loss)/return (124,670) 162,900 137,221

Total (loss)/return (122,271) 165,037 143,419

Weighted average number of Ordinary shares in issue during the period used for the purpose of the undiluted calculation 114,373,142 113,846,394 114,086,175

Weighted average number of Ordinary shares in issue during the period used for the purpose of the diluted calculation 116,708,841 117,393,377 117,768,751

UndilutedRevenue return per share 2.10p 1.88p 5.43pCapital (loss)/return per share (109.00)p 143.09p 120.28p

Total (loss)/return per share (106.90)p 144.97p 125.71p

DilutedRevenue return per share 2.06p 1.82p 5.26pCapital (loss)/return per share (106.82)p 138.76p 116.52p

Total (loss)/return per share (104.76)p 140.58p 121.78p


Notes to the Accountsfor the six months ended 31st December 2011


The diluted return/(loss) per Ordinary share represents the return/(loss) on ordinary activities after taxation divided by theweighted average number of Ordinary shares in issue during the period as adjusted in accordance with the requirements ofFinancial Reporting Standard 22 ‘Earnings per share’.

5. Net asset value per Ordinary share

(Unaudited) (Unaudited) (Audited)31st December 2011 31st December 2010 30th June 2011

UndilutedOrdinary shareholders’ funds (£’000) 658,580 806,439 785,060Number of Ordinary shares in issue (excluding sharesheld in Treasury) 114,329,875 114,313,321 114,365,583

Net asset value per Ordinary share (pence) 576.0 705.5 686.4

DilutedOrdinary shareholders’ funds assuming exerciseof Subscription shares (£’000) 741,213 889,469 867,851

Number of potential Ordinary shares in issue 132,293,525 132,363,525 132,363,525Net asset value per Ordinary share (pence) 560.3 672.0 655.7

The diluted net asset value per Ordinary share assumes that all outstanding Subscription shares were converted into Ordinaryshares at the period end. The Company will only re-issue shares held in Treasury at a premium and therefore, these shareshave no dilutive potential.

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



Total (loss)/return on ordinary activities before finance costs and taxation (121,944) 165,459 144,557

Less capital loss/(return) on ordinary activities before finance costs and taxation 124,670 (162,900) (137,221)

Scrip dividends received as income (106) (121) (121)Decrease/(increase) in net debtors and accrued income 1,661 305 (921)Overseas withholding tax (324) (440) (1,130)Performance fee paid (1,941) (712) (712)

Net cash inflow from operating activities 2,016 1,591 4,452

Notes to the Accounts continued


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 broad categories:investment underperformance; political and economic; loss ofinvestment team or investment manager; discount; change ofcorporate control of the manager; accounting, legal andregulatory; corporate governance and shareholder relations;operational and financial. Information on each of these areas isgiven in the Business Review within the Annual Report andAccounts for the year ended 30th June 2011.

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.

Going Concern

The Directors believe, having considered the Company’sinvestment objectives, risk management policies, capital

management policies and procedures, nature of the portfolioand expenditure projections, that the Company has adequateresources, an appropriate financial structure and suitablemanagement arrangements in place to continue in operationalexistence for the foreseeable future. For these reasons, theyconsider there is reasonable evidence to continue to adopt thegoing concern basis in preparing the accounts.

Directors’ Responsibilities

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

(i) the condensed set of financial statements contained withinthe half yearly financial report has been prepared inaccordance with the Accounting Standards Board’sStatement ‘Half Yearly Financial Reports’; and

(ii) the half year management report includes a fair review ofthe information required by DTR 4.2.7R and 4.2.8R of theUK Listing Authority Disclosure and Transparency Rules.

For and on behalf of the Board

Alan SaundersChairman 27th February 2012


Subscription Shares

On 11th June 2009 the Company issued Subscription shares asa bonus issue to the Ordinary shareholders on the basis of oneSubscription share for every five Ordinary shares held. EachSubscription share confers the right (but not the obligation) tosubscribe for one Ordinary share on any business day duringthe period from 1st August 2009 to 31st July 2014, after whichthe rights on the Subscription shares will lapse.

During the period, shareholders exercised their right to convert34,292 Subscription shares into Ordinary shares for a totalconsideration of £158,000. Since the period end and at the timeof writing, shareholders have exercised their right to convert afurther 21,112 Subscription shares into Ordinary shares for atotal consideration of £97,115.

Future exercise prices have been determined as follows:

(a) If exercised between and including 1st August 2010 and31st July 2012 – 460 pence;

(b) If exercised between and including 1st August 2012 and31st July 2014 – 543 pence.

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 11th June 2009 the middle marketprices of the Company’s Ordinary shares and Subscriptionshares were as follows:

Ordinary shares: 392pSubscription shares: 57p

Accordingly an individual investor who on 10th June 2009 heldfive 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 97.17% to the five Ordinary shares and 2.83% tothe Subscription share.


Glossary of Terms and Definitions

Portfolio return net of fees and expenses

Return on net assets, net of management and performancefees and administration expenses, but excluding both theeffect of Subscription shares which have been convertedduring the period and the dilutive impact of Subscriptionshares in issue at the period end.

Return to Ordinary shareholders

Total return to the Ordinary shareholder on a mid-marketprice to mid-market price basis, assuming that all dividendsreceived were reinvested, without transaction costs, into theOrdinary shares of the Company at the time the shares werequoted ex-dividend.

Diluted return on net assets

Return on the diluted net asset value (‘NAV’) per share, on abid value to bid value basis, assuming that all dividends paidout by the Company were reinvested, without transactioncosts, into the shares of the Company at the NAV per share atthe time the shares were quoted ex-dividend.

In accordance with industry practice, dividends payablewhich have been declared but which are unpaid at thebalance sheet date are deducted from the NAV whencalculating the return on net assets.

Diluted net asset value (‘NAV’) per Ordinary share

The NAV per Ordinary share assuming that all Subscriptionshares in issue were converted into Ordinary shares at theperiod end at the current exercise price of 460 pence pershare.

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 strategydoes not ‘track’ this index and consequently, there may besome divergence between the Company’s performance andthat of the benchmark.

Ordinary share price discount to diluted net asset vale (‘NAV’) perOrdinary share

If the share price of an investment trust is lower than the NAVper share, the shares are said to be trading at a discount. Thediscount is shown as a percentage of the NAV per share. Theopposite of a discount is a premium. It is more common foran investment trust’s shares to trade at a discount than at apremium.

Return per Ordinary share – Undiluted

The undiluted return per Ordinary share represents thereturn on ordinary activities after taxation divided by theweighted average number of Ordinary shares in issue duringthe period.

Return per Ordinary share – Diluted

The diluted return per Ordinary share represents the returnon ordinary activities after taxation divided by the weightedaverage number of Ordinary shares in issue during the periodas adjusted in accordance with the requirements of FinancialReporting Standard 22 ‘Earnings per share’.


Notes

HistoryThe Company was launched in July 1991 with assets of £60 million.In March 1993 the Company raised a further £50 million by an issueof conversion shares. On 13th April 2006, an additional £76 millionwas raised by an issue of shares following the reconstruction ofF&C Emerging Markets Investment Trust plc. The Companyadopted its current name in November 2005.

DirectorsAlan Saunders (Chairman)David GambleAnatole KaletskyNigel KennyPercy Mistry

Company NumbersCompany registration number: 2618994

Ordinary sharesLondon Stock Exchange number: 0341895ISIN: GB0003418950Bloomberg code: JMG LN

Subscription sharesLondon Stock Exchange number: B3V4X02ISIN: GB00B3V4X029Bloomberg code: JMGS LN

Market InformationThe Company’s net asset value (‘NAV’) per share is published dailyvia the London Stock Exchange. The Company’s Ordinary sharesare listed on the London Stock Exchange and quoted daily in theFinancial Times, The Times, the Daily Telegraph, The Scotsman,The Independent and on the J.P. Morgan website atwww.jpmemergingmarkets.co.uk, where the Ordinary share priceis updated every fifteen minutes during trading hours.The Company’s Subscription share price is listed on the LondonStock Exchange and quoted daily in the Financial Times and on theJ.P. Morgan website at www.jpmemergingmarkets.co.uk, where theSubscription share price is updated every fifteen minutes duringtrading hours.

Websitewww.jpmemergingmarkets.co.uk

Share TransactionsThe Company’s shares may be dealt in directly through a stockbrokeror professional adviser acting on an investor’s behalf. They may alsobe purchased and held through the J.P. Morgan Investment Account,J.P. Morgan ISA and J.P. Morgan SIPP. These products are all availableon the online wealth manager service, J.P. Morgan WealthManager+available at www.jpmorganwealthmanagerplus.co.uk

Manager and Company SecretaryJPMorgan Asset Management (UK) Limited

Company’s Registered OfficeFinsbury Dials20 Finsbury StreetLondon EC2Y 9AQTelephone: 020 7742 6000For company secretarial and administrative matters, please contactJonathan Latter.

CustodianJPMorgan Chase Bank N.A.125 London WallLondon EC2Y 5AJ

RegistrarsEquiniti LimitedReference 1081Aspect HouseSpencer RoadLancingWest Sussex BN99 6DATelephone: 0871 384 2320Calls to this number cost 8p per minute from a BT landline. Otherproviders’ costs may vary. Lines open 8.30 a.m. to 5.30 p.m., Mondayto Friday. The overseas helpline number is +44 (0)121 415 7047.Notifications of changes of address and enquiries regarding sharecertificates or dividend cheques should be made in writing to theRegistrar quoting reference 1081. Registered shareholders can obtain further details on theirholdings on the internet by visiting www.shareview.co.uk

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

BrokersWinterflood Securities LimitedThe Atrium Building Cannon Bridge25 Dowgate HillLondon EC4R 2GATelephone number: 020 3100 0000

Savings Product AdministratorsFor queries on the J.P. Morgan Investment Account, J.P. Morgan ISAand J.P. Morgan SIPP, please see the contact details on the backcover of this report.

Information about the Company

Financial CalendarFinancial year end 30th JuneFinal results announced SeptemberHalf year end DecemberHalf year results announced FebruaryInterim Management Statements announced May and November Final dividend on Ordinary shares paid NovemberSubscription share exercise dates 1st August 2009 to 31st July 2014Annual General Meeting 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.jpmemergingmarkets.co.uk

clean security cover - j.p. morgan asset management · totvs brazil 8,284 1.26 xinyi glass china...

Documents