Half Yearly Report

RNS Number : 9913W

JPMorgan Japan Smaller Co Tst PLC

13 November 2014

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN JAPAN SMALLER COMPANIES TRUST PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED

30TH SEPTEMBER 2014

Chairman's Statement

Performance

The Japanese smaller companies market moved strongly ahead during the six months ended 30th September 2014. Pleasingly, the Company outperformed its benchmark index, the S&P/Citigroup Japan Extended Market Index (Total Return Net), with its net asset value increasing by 10.3% compared to the benchmark's rise of 8.0%. Over the same period, the Company's share price total return was 11.3%, reflecting the narrowing of the discount from 16.2% to 12.7%. At the time of writing, the discount stood at 12.6%.

Further details of the Company's performance in the first half year and the current positioning of the portfolio are given in the Investment Managers' Report in the half year report.

Gearing

The Company has a Japanese Yen 3.0 billion credit facility with ING Bank NV which gives the Investment Managers the ability to gear tactically. During the six months to 30th September 2014 the Company's gearing ranged from 10% to 14%. At the time of writing, the Company was 12.5% geared.

Alternative Investment Fund Managers Directive ('AIFMD')

With effect from 1st July 2014, the Company appointed JPMorgan Funds Limited as its Alternative Investment Fund Manager as newly required under the AIFMD under a new investment management agreement. Portfolio management is delegated by JPMorgan Funds Limited to JPMorgan Asset Management (Japan) Limited through JPMorgan Asset Management (UK) Limited, thus retaining previous portfolio management arrangements. The management fee and notice period arrangements remain unchanged. The Company appointed BNY Mellon Trust & Depositary (UK) Limited to act as the Company's Depositary, a new requirement under AIFMD. JPMorgan Chase Bank, NA remains the Company's Custodian, but as a delegate of the Depositary. JPMorgan Funds Limited was also appointed as Company Secretary to the Company on 1st July 2014, though personnel arrangements remain unchanged.

Subscription Shares

The final date for Subscription shareholders to exercise their Subscription share rights was 31st March 2014. By that date, the rights attaching to 4,036,808 Subscription shares had been exercised resulting in the issuance of new Ordinary shares on 1st April 2014. On that date, 2,747,739 Subscription shares remained outstanding and a trustee was appointed to exercise the rights attaching thereto. The trustee decided to exercise the Subscription share rights and sell the resulting ordinary shares. Subscription shareholders on whose behalf the trustee acted received net proceeds of approximately 7.55 pence per Subscription share (subject to a de minimis of £5.00 per holder).

Therefore, in total, 6,784,547 Ordinary shares were issued pursuant to the exercise of Subscription share rights during the six month period under review.

In September 2014, the Board announced its consideration of a further bonus issue of Subscription shares to Ordinary shareholders on the basis of one Subscription share for every five Ordinary shares held. Further details will be announced in due course.

Board

As detailed in the annual report, we were pleased to welcome Yuuichiro Nakajima to the Board on 1st April 2014. Mr Nakajima was reappointed by shareholders at the Annual General Meeting in July 2014.

Outlook

The recent announcements of renewed quantitative easing by the Bank of Japan and an increased allocation to domestic equities by the Government Pension Investment Fund reiterate the current administration's commitment to a programme of changes which are encouraging for the Japanese economy and the companies in which we invest.

While there remain a number of domestic and global risks that could hinder these changes, we share the Investment Managers' belief that strong prospects for earnings, the return of inflation and changes in corporate and government behaviours should be of benefit to the equity market as a whole, our portfolio and consequently shareholders' returns.

Alan Clifton

Chairman

13th November 2014

Investment Managers' Report

Market review

The Japanese market rose encouragingly during the six months to the end of September, delivering a return of +8.0% in Sterling terms, reflecting the local currency return of 11.8%. The market rose on the back of renewed optimism about the global economy, led by the US, as well as a significant fall in the value of Japanese Yen against the US Dollar and other currencies. Both of these trends are positive for the earnings of listed companies in Japan.

The Japanese equity market rallied from the March end when the alternative valuation case became more clear. Earnings for the Japanese fiscal year to March 2014 delivered few surprises and pre-tax profits, excluding financials, grew by almost 40%. Profits for the new fiscal year were forecast to grow by low single digits; this was weaker than expected but dismissed by the market as conservative. Indeed, first quarter earnings were strong and analyst projections for the full year have continued to be revised upwards. Shareholder returns continued to rise. In the first half of fiscal 2014 (April - September), 249 companies set up share repurchase programmes for a total value of ¥1.85 trillion, the highest tally since the first half of 2008.

A total of 160 institutional investors, including J.P. Morgan Asset Management, have now said they will comply with the new stewardship code, which aims to boost transparency and improve corporate governance. This makes a 26% increase from those that initially signed up in May.

The government led by Prime Minister Shinzo Abe continued to enjoy strong support, allowing him to make proactive changes to the cabinet. The most noteworthy was the appointment of Mr Yasuhisa Shiozaki as Minister of Health, Labour and Welfare. Mr Shiozaki is a strong promoter of reforming the Government Pension Investment Fund, the largest in the world, which falls under his scrutiny. Equally important is the fact that other key ministerial positions were unchanged, enhancing the continuity of policies known as Abenomics. However, with the Diet in recess over the summer, little progress has been made on the 'third arrow'. We are watching the current Diet session carefully for signs of progress on areas such as corporate tax reform and legislation on special economic zones.

Recent economic data have been mixed. Although the initial drop in domestic spending after the consumption tax rise in April was generally milder than feared, the recovery has been slower than expected. This was partly due to poor weather in the summer. Furthermore, despite the weaker Yen, exports have failed to rebound. As a result, most economists have cut their GDP forecasts for 2014. On the positive side, the labour market remains tight with the unemployment rate recently falling to 3.5% from a high of 5.5% in 2009. Wages have also started to increase, although real wage growth remains in negative territory due to higher inflation. One major forthcoming event is the decision on another consumption tax rise from 8% to 10%, scheduled for October 2015. It is questionable whether the economy has sufficient momentum to withstand this potentially negative shock. As such, it is possible that the government may introduce additional fiscal stimulus measures, that the Bank of Japan will further ease monetary policy or that the tax increase is delayed.

Performance review

Over the six months to September, the fund generated a return of +10.3% in Sterling terms, and outperformed the benchmark S&P Japan Small Cap Index. The fund has maintained a bias towards domestic sectors, with a focus on financials, real estate and companies that are likely to benefit from an improving economy. We also maintained the gearing of the fund at above 10% throughout the review period. The turnover was reasonably low at circa 17%, reflecting the strong conviction in our holdings.

Both stock selection and sector allocation contributed to the outperformance. Stocks that contributed most positively included: Cyberdyne (health care equipment & services), Nippon Shinyaku (pharmaceuticals & biotechnology), Daicel (materials), Invincible Investment Corp. (real estate) and Calbee (food beverage & tobacco). Cyberdyne was listed in March and has performed strongly since. Its business is built around its proprietary technology called Hybrid Assistive Limb, or HAL®. Its Robot Suit HAL® provides medical treatments for functional improvement of patients with cerebral, nervous and muscular disorders including spinal cord injury and cerebral embolism. Nippon Shinyaku rallied after the announcement that one of its new drugs showed good results in phase three trials. Daicel is a manufacturer of high value-added materials and components. Its key products include tobacco filters, airbag inflators for automobiles and LCD materials. Daicel enjoys strong pricing power backed by a high global share in each of its core products, and the company is expected to generate profit margins in excess of 10% in the current fiscal year. Invincible Investment Corp is a Real Estate Investment Trust ('REIT') in which we initiated a position at a public offering in July. The REIT raised money to purchase 18 hotels, diversifying the portfolio away from almost exclusively residential properties. In addition to the attractive valuation, we like the upside offered by rising hotel revenues as well as the strong pipeline of properties owned by its sponsor, Fortress. Calbee manufactures snacks and cereals. Since the new management team took charge in 2009, the company has delivered strong top-line growth with a new product and marketing strategy as well as margin expansion on the back of the restructuring of the domestic operations. We sold the shares after the share price had appreciated significantly.

On the other hand, V-cube (software & services), Teikoku Electric Manufacturing (capital goods) and Park24 (commercial & professional services) were among stocks that detracted from performance. V-cube is a recent IPO and we sold the shares in May as we felt uncertain about the potential benefit of large investments that the company had started to make. Teikoku Electric is a manufacturer of industrial pumps which we believe will deliver strong earnings growth over the medium term. It is well positioned to benefit from rising investments in chemicals plants in the US using cheap gas. In addition, its customer base is focusing increasingly on environmental issues and its industry-leading position in canned-motor pumps that offer better performance in terms of environmental impact than commodity pumps meets these needs. This is a positive for the company since its products help reduce adverse impact on the environment. The stock had previously performed strongly and recently has suffered from profit taking. We reduced the position in Teikoku Electric in early April following strong performance. Park24 operates car parks, car rental and car-sharing businesses. It underperformed because earnings were weaker than expected. This was due to a combination of a downturn following the consumption tax rise in April and poor weather in the summer. Although we maintain our positive view on a medium term, we reduced the position in September to reflect the poorer-than-expected short term outlook.

With respect to our sector allocation, the top contributors were the gearing and overweighting in the software & services and insurance sectors. Software stocks performed well thanks to a strong earnings outlook supported by rising demand and improved pricing power as the industry is starting to see a shortage of engineers. The insurance sector performed strongly thanks to the largest constituent, Anicom. On the negative side, overweight diversified financials detracted from performance most. This negative was more than offset by our positive stock selection within the sector such that the overall contribution of our sector positioning was significantly positive. No other sectors detracted more than 0.2% from the relative performance.

Outlook and portfolio strategy

On 31st October, the Government Pension Investment Fund announced that it would target a 25% allocation to domestic equities under its revised strategy. This is a significant increase from the existing target of 12%. Although such a change was anticipated, the official announcement was greeted with excitement by the market. On the same day, the Bank of Japan also surprised the market by announcing a second round of quantitative easing. Virtually nobody expected the Bank to act so soon. As a result of these two announcements, the Yen fell and the equity market made significant gains.

Although the announcements are positive, they do not materially alter our already constructive view on the market or our strategy. We had little doubt that the Bank of Japan would act as and when it felt necessary as the inflation outlook had been deteriorating for some time. As for the Government Pension Investment Fund, the new allocation to domestic equities may provide some support in terms of demand and supply. However, we believe that this is far less important than corporate fundamentals in determining the direction of the market in the medium term. On the other hand, we are encouraged by the recent developments in corporate governance.

Overall, we continue to see the combination of strong political leadership, changing inflation expectations, robust corporate earnings prospects and a recovering global economy as a powerful combination. We have generally stuck with the strategy of focusing on domestic stocks that will benefit from the improving economy such as financials and infrastructure-related companies, and long-term themes such as the ageing population, use of the internet and online content, domestic consolidation, Japanese brands that have globally strong positions and Japanese companies that are growing in Asian markets. We also continue to avoid those companies and industries about which we have long term structural concerns, including producers of digital cameras, where demand is falling due to the increased capabilities of smartphones; pharmaceutical companies with an over-dependence on drugs that are being replaced by cheaper generic alternatives; and utilities, in particular electric power companies, due to high energy costs, network upgrade costs and intensifying competition.

While the above is our central case, there are several downside risks to the global economy. The low volatility of recent years is an exception and we are likely to face higher volatility in the future not least because the US Federal Reserve is about to enter into uncharted territory by unwinding the unorthodox monetary policies that have been in place since 2008. In Japan, the government is expected to decide whether or not it will go ahead with another consumption tax rise soon. There are uncertainties about how policies will be formulated, which will have implications for corporate earnings and therefore capital markets. This means we have to remain flexible and pragmatic. We believe we are in a strong position to detect changes in macro trends through extensive bottom-up research and make changes to our strategy accordingly. Most importantly, we must adhere to our core strength of identifying company specific growth opportunities that do not depend on short term macro economic trends.

Shoichi Mizusawa

Nicholas Weindling

Naohiro Ozawa

Investment Managers

13th November 2014

Interim Management Report

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

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Company have not changed and fall into the following broad categories: investment and strategy; market; liquidity; credit; discount; accounting, legal and regulatory; corporate governance and shareholder relations; operational; loss of investment team; political and economic; and going concern. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 31st March 2014.

Related Parties Transactions

During the first six months of the current 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 period.

Going Concern

The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i) the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with the Accounting Standards Board's Statement 'Half Yearly Financial Reports' and gives a true and fair view of the state of the affairs of the Company and of the assets, liabilities, financial position and net return of the Company as at 30th September 2014, as required by the UK Listing Authority Disclosure and Transparency Rule 4.2.4R; and

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

In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;

and the Directors confirm that they have done so.

For and on behalf of the Board

Alan Clifton

Chairman

13th November 2014

Income Statement

for the six months ended 30th September 2014

	(Unaudited) Six months ended 30th September 2014			(Unaudited) Six months ended 30th September 2013			(Audited) Year ended 31st March 2014
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair value through profit or loss	-	9,919	9,919	-	8,890	8,890	-	2,340	2,340
Net foreign currency gains	-	521	521	-	752	752	-	1,632	1,632
Income from investments	684	-	684	513	-	513	1,242	-	1,242
Gross return/(loss)	684	10,440	11,124	513	9,642	10,155	1,242	3,972	5,214
Management fee	(586)	-	(586)	(488)	-	(488)	(1,018)	-	(1,018)
Other administrative expenses	(211)	-	(211)	(234)	-	(234)	(402)	-	(402)
Net (loss)/return on ordinary activities before finance costs and taxation	(113)	10,440	10,327	(209)	9,642	9,433	(178)	3,972	3,794
Finance costs	(136)	-	(136)	(68)	-	(68)	(246)	-	(246)
Net (loss)/return on ordinary activities before taxation	(249)	10,440	10,191	(277)	9,642	9,365	(424)	3,972	3,548
Taxation	(68)	-	(68)	(37)	-	(37)	(110)	-	(110)
Net (loss)/return on ordinary activities after taxation	(317)	10,440	10,123	(314)	9,642	9,328	(534)	3,972	3,438
(Loss)/return per Ordinary share (note 3)
- undiluted	(0.69)p	22.58p	21.89p	(0.80)p	24.64p	23.84p	(1.36)p	10.13p	8.77p
- diluted	(0.69)p	22.58p	21.89p	(0.79)p	24.18p	23.39p	(1.36)p	9.95p	8.59p

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

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by The Association of Investment Companies. The Total column represents all the information that is required to be disclosed in a Statement of Total Recognised Gains and Losses ('STRGL'). For this reason a STRGL has not been presented.-

Reconciliation of Movements in Shareholders' Funds

	Called up		Capital
Six months ended	share	Share	redemption	Other	Capital	Revenue
30th September 2014	capital	premium	reserve	reserve	reserves	reserve	Total
(Unaudited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31st March 2014	4,058	1,446	1,836	314,774	(222,639)	(12,783)	86,692
Conversion of Subscription shares into Ordinary shares	(68)	68	-	-	-	-	-
Issue of Ordinary shares on exercise of Subscription shares	678	11,115	-	-	-	-	11,793
Net return/(loss) on ordinary activities	-	-	-	-	10,440	(317)	10,123
At 30th September 2014	4,668	12,629	1,836	314,774	(212,199)	(13,100)	108,608

	Called up		Capital
Six months ended	share	Share	redemption	Other	Capital	Revenue
30th September 2013	capital	premium	reserve	reserve	reserves	reserve	Total
(Unaudited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31st March 2013	4,021	764	1,836	314,775	(226,611)	(12,249)	82,536
Repurchase of shares held in Treasury	-	-	-	(1)	-	-	(1)
Issue of Ordinary shares on exercise of Subscription shares	11	179	-	-	-	-	190
Net return/(loss) on ordinary activities	-	-	-	-	9,642	(314)	9,328
At 30th September 2013	4,032	943	1,836	314,774	(216,969)	(12,563)	92,053

	Called up		Capital
Year ended	share	Share	redemption	Other	Capital	Revenue
31st March 2014	capital	premium	reserve	reserve	reserves	reserve	Total
(Audited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31st March 2013	4,021	764	1,836	314,775	(226,611)	(12,249)	82,536
Repurchase of shares into Treasury	-	-	-	(1)	-	-	(1)
Conversion of Subscription shares into Ordinary shares	(4)	4	-	-	-	-	-
Issue of Ordinary shares on exercise of Subscription shares	41	678	-	-	-	-	719
Net return/(loss) on ordinary activities	-	-	-	-	3,972	(534)	3,438
At 31st March 2014	4,058	1,446	1,836	314,774	(222,639)	(12,783)	86,692

Balance Sheet

at 30th September 2014

	(Unaudited)	(Unaudited)	(Audited)
	30th September 2014	30th September 2013	31st March 2014
	£'000	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss	119,474	98,887	97,287
Current assets
Debtors	475	448	1,473
Cash and short term deposits	5,723	3,575	5,649
	6,198	4,023	7,122
Creditors: amounts falling due within one year	(194)	(10,857)	(244)
Net current assets/(liabilities)	6,004	(6,834)	6,878
Total assets less current liabilities	125,478	92,053	104,165
Creditors: amounts falling due after more than one year	(16,870)	-	(17,473)
Net assets	108,608	92,053	86,692
Capital and reserves
Called up share capital	4,668	4,032	4,021
Share premium	12,629	943	764
Capital redemption reserve	1,836	1,836	1,836
Other reserve	314,774	314,774	314,774
Capital reserves	(212,199)	(216,969)	(226,611)
Revenue reserve	(13,100)	(12,563)	(12,249)
Total equity shareholders' funds	108,608	92,053	82,536
Net asset value per Ordinary share (note 4)
- undiluted	234.7p	234.9p	211.2p
- diluted	234.7p	225.6p	205.4p

The Company's registration number is 3916716.

Cash Flow Statement

for the six months ended 30th September 2014

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended	Six months ended	Year ended
	30th September 2014	30th September 2013	31st March 2014
	£'000	£'000	£'000
Net cash (outflow)/inflow from operating activities (note 5)	(84)	(113)	(302)
Net cash outflow from return on investments and servicing of finance	(135)	(59)	(137)
Net cash outflow from capital expenditure and financial investment	(11,417)	(2,556)	(8,323)
Net cash inflow from financing	11,793	5,247	13,922
Increase in cash in the period	157	2,519	5,160
Reconciliation of net cash flow to movement in net debt
Net cash movement	157	2,519	5,160
Net loans drawn down	-	(5,266)	(13,411)
Exchange movements	520	753	1,632
Movement in net funds/(debt) in the period	677	(1,994)	(6,619)
Net debt at the beginning of the period	(11,824)	(5,205)	(5,205)
Net debt at the end of the period	(11,147)	(7,199)	(11,824)
Represented by:
Cash and short term deposits	5,723	3,575	5,649
Debt falling due within one year	-	(10,774)	-
Debt falling due after more than one year	(16,870)	-	(17,473)
Net debt at the end of the period	(11,147)	(7,199)	(11,824)

Notes to the Accounts

for the six months ended 30th September 2014

1.    Financial statements

      The information contained within the Financial Statements in this half year report has not been audited or reviewed by the Company's auditors.

      The figures and financial information for the year ended 31st March 2014 are extracted from the latest published accounts of the Company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 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 ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in January 2009.

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

      The accounting policies applied in these half year accounts are consistent with those applied in the accounts for the year ended 31st March 2014.

3.   (Loss)/return per Ordinary share

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended	Six months ended	Year ended
		30th September 2014	30th September 2013	31st March 2014
		£'000	£'000	£'000
	(Loss)/return per Ordinary share is based on the following:
	Revenue loss	(317)	(314)	(534)
	Capital return	10,440	9,642	3,972
	Total return	10,123	9,328	3,438
	Weighted average number of Ordinary shares in issue during the period used for the purpose of the basic (undiluted) calculation	46,241,998	39,125,711	39,200,194
	Weighted average number of Ordinary shares in issue during the period used for the purpose of the diluted calculation	46,241,998	39,886,422	39,929,867
	Undiluted
	Revenue loss per Ordinary share	(0.69)p	(0.08)p	(1.36)p
	Capital return per Ordinary share	22.58p	24.64p	10.13p
	Total return per Ordinary share	21.89p	23.84p	8.77p
	Diluted (1)
	Revenue loss per Ordinary share	(0.69)p	(0.79)p	(1.36)p
	Capital return per Ordinary share	22.58p	24.18p	9.95p
	Total return per Ordinary share	21.89p	23.39p	8.59p

¹Please refer to the Chairman's Statement for a detailed description of transactions relating to the Subscription shares.

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

4.   Net asset value per Ordinary share

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended	Six months ended	Year ended
		30th September 2014	30th September 2013	31st March 2014
	Undiluted
	Ordinary shareholders' funds (£'000)	108,608	92,053	86,692
	Number of Ordinary shares in issue	46,279,296	39,190,436	39,494,749
	Net asset value per Ordinary share	234.7p	234.9p	219.5p
	Diluted (1)
	Ordinary shareholders' funds assuming exercise of dilutive Subscription shares and reissuance of any Treasury shares (£'000)	108,608	104,387	98,497
	Number of potential Ordinary shares in issue	46,279,296	46,279,296	46,279,296
	Net asset value per Ordinary share	234.7p	225.6p	212.8p

¹Please refer to the Chairman's Statement for a detailed description of transactions relating to the Subscription shares.

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

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended	Six months ended	Year ended
		30th September 2014	30th September 2013	31st March 2014
		£'000	£'000	£'000
	Net return on ordinary activities before finance costs and taxation	10,327	9,433	3,794
	Less capital return before finance costs and taxation	(10,440)	(9,642)	(3,972)
	Decrease/(increase) in accrued income	91	133	(10)
	Decrease/(increase) in other debtors	43	15	(2)
	Decrease in accrued expenses	(37)	(15)	(2)
	Overseas withholding tax	(68)	(37)	(110)
	Net cash outflow from operating activities	(84)	(113)	(302)

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 FUNDS LIMITED

ENDS

A copy of the half yearly report will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.morningstar.co.uk/uk/NSM

The half yearly report will also be available on the Company's website at www.jpmjapansmallercompanies.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found

 

END

 

 

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