Final Results

RNS Number : 6526Q

JPMorgan Smaller Cos IT PLC

21 October 2011

 



STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN SMALLER COMPANIES INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31^ST JULY 2011

The Directors of JPMorgan Smaller Companies Investment Trust plc announce the Company's results for the year ended 31st July 2011. The following comprises extracts from the Company's Annual Financial Report for the year ended 31st July 2011. The full Annual Report and Accounts, including the Notice of the Annual General Meeting will be available to be viewed on or downloaded from the Company's website at www.jpmsmallercompanies.co.uk shortly.

Chairman's Statement

Investment Performance

Global equity markets continued to rise during the year ended 31st July 2011, although they remained volatile and we have since witnessed a severe market setback. Following the pattern of 2010, the Company delivered another year of strong performance. I am pleased to report that the Company recorded a total return on net assets of +39.3%, a very strong outperformance of the total return of the benchmark, the FTSE Small Cap index (excluding investment trusts) of +21.1%. The most significant contributor to this performance was the Investment Manager's stock selection and asset allocation, helped by gearing to a smaller extent. The Investment Manager's report analyses the performance further and gives a detailed commentary on the investment strategy and portfolio construction. Since the year end, stockmarket volatility has increased substantially and the performance of the Company in August and September, the first two months of this financial year, has been seriously and adversely affected by the worldwide reduction in investors' appetite for equity risk. As a consequence of these market conditions, as at 19th October 2011 the net asset value per share was 527.5p, the share price 425.0p and the discount 19.4%.

The period under review saw continued economic recovery in the UK, albeit at a slow rate. The macro-economic and political concerns remained unchanged during the period with tensions rising considerably in Europe and the US as governments appear unable to provide credible solutions to the escalating sovereign debt crisis. Despite this difficult environment, the Company's share price increased from 368p at 31st July 2010 to 538p at 31st July 2011, amounting to a rise of 46% during the year. The total return to shareholders was +49.0% after a narrowing of the share price discount to net asset value from 22.1% at 31st July 2010 to 16.5% at 31st July 2011.

Revenue and Dividends

Net revenue after taxation for the year was £1,600,000 (2010: £1,723,000) and revenue return per share, calculated on the average number of shares in issue, was 8.5p (2010: 8.9p). The Directors are recommending a final dividend of 8.5p per share (2010: 8.5p), costing £1,584,000 (2010: £1,610,000). If approved, the dividend will be paid on 9th December 2011 to shareholders on the register on 18th November 2011.

Each year the level of income received varies according to the Company's gearing, its investment stance and market conditions and, whilst it is the Company's policy to distribute substantially all the available income each year, shareholders should note that the Company's dividends will vary accordingly.

Continuation Vote

The Company's Articles of Association require that shareholders vote on the continuation of the Company at every third Annual General Meeting ('AGM'). The fifth of these votes falls this year. The Board has evaluated the performance and progress of the Company over the last year and, in particular, the three years since the last continuation vote was passed.

The table below shows that the Company has outperformed the Company's benchmark, the FTSE Small Cap Index over this period and over the longer term.

	1 August 2010	1 August 2008	1 August 2001
	to 31 July 2011	to 31 July 2011	to 31 July 2011
Total Return	(1 year)	(3 years)	(10 years)
Share price	+49.0%	+49.0%	+140.4%
Net asset value	+39.3%	+43.8%	+158.1%
Benchmark	+21.1%	+24.5%	+30.9%

In the period since the last continuation vote the net asset value outperformance against the benchmark has been +19.3%.

The Directors are delighted to report that the net asset value total return is 894.3% since the inception of the Company in July 1990, a compound growth rate of 11.0% per annum - comfortably outstripping the Company's benchmark (ahead by 245.6%, a compound growth rate of 6.1%). The Company's share price is 753.2% since its inception, a compound growth rate of 10.1%.

The Directors have confidence in the long-term growth prospects for UK smaller companies and in the ability of the Manager to continue to select a portfolio of attractive investments in this segment. The investment competence of the Manager is borne out by the Company's consistent out-performance of the benchmark over the last ten years with a return on net assets shown above. They therefore recommend that shareholders vote in favour of the resolution at the AGM on 28th November 2011, as they intend to do so in respect of their own holdings.

Investment Manager

The Company's objective is to provide shareholders with capital growth from a portfolio of investments in UK smaller companies. The Board carried out a formal review of the capabilities and services of the Manager during the year. This covered the investment management, company secretarial, administrative and marketing services provided to the Company by JPMorgan Asset Management (UK) Limited ('JPMAM') and further included their investment performance record, management processes, investment style and resources. We have concluded that JPMAM remains the most appropriate Manager of the Company's assets and that the ongoing appointment of the existing Investment Manager is in the best interests of shareholders.

The Board has been advised that Kent Kwan has relocated to Australia and is no longer on the team managing the Company's portfolio. We are sorry to lose Kent and wish him all the best. Peter Dalton has now joined the investment management team to work alongside Georgina Brittain. He brings with him extensive experience and knowledge of UK Small Cap equities and fund management.

Share Buy Backs

At last year's AGM, shareholders granted the Directors authority to repurchase the Company's shares for cancellation, such authority to expire at the earlier of 24th May 2012 or the conclusion of the AGM in 2011. During the financial year the Company repurchased a total of 301,971 ordinary shares for cancellation for a total consideration of £1,499,000, representing 1.6% of the issued share capital at the beginning of the year. This has added approximately 1.7p per ordinary share to the net asset value for continuing shareholders. Since the year end the Company has repurchased an additional 39,844 ordinary shares for cancellation.

The Board's objective remains to use the share repurchase authority to manage imbalances between the supply and demand of the Company's shares, thereby reducing the volatility of the discount. To date the Board believes this mechanism has been helpful and therefore proposes and recommends that powers to repurchase up to 14.99% of the Company's shares for cancellation be renewed for a further period.

Board of Directors

At the Nomination Committee meeting held earlier this year, the Board carried out an evaluation of the Directors, the Chairman, the Board itself and its Committees. The Board takes this review seriously and views it as an effective means of evaluating the continuing efficacy of the Board. Additionally, the Board has decided to engage an independent external party to conduct a formal evaluation of the Board members early next year, subject to the Company's continuation after the forthcoming AGM vote. In accordance with the Company's Articles of Association, Michael Quicke will retire by rotation at this year's AGM and will offer himself for re-election. The Nomination Committee having considered his qualifications, performance and contribution to the Board and its committees, confirm that he continues to be effective and demonstrates commitment to his role and the Board recommends to the shareholders that he be re-elected. In accordance with the Company's Articles of Association, and having served as Directors for more than nine years, both Richard Fitzalan Howard and I offer ourselves for re-election on an annual basis. The Board does not believe that length of service in itself should disqualify a Director from seeking re-election and, in proposing our re-elections, it has taken into account the ongoing requirements of the UK Corporate Governance Code, including the need to refresh the Board and its Committees. The Nomination Committee recommends to shareholders that we should therefore be re-elected.

Corporate Governance

The Board has always focused its governance obligations and has in place procedures to monitor the Company's compliance with the AIC Code on Corporate Governance and the new UK Corporate Governance Code.

Annual General Meeting

The Company's twenty first AGM will be held on Monday, 28th November 2011 at 12.00 noon at The Library, 60 Victoria Embankment, London EC4Y 0JP. In addition to the formal part of the meeting, there will be a presentation from the Investment Manager who will answer questions on the portfolio and performance. Shareholders who are unable to attend the AGM in person are encouraged to use their proxy votes.

Outlook

After such a strong performance in the last financial year, as indicated earlier, the first two months of the new financial year have proved exceptionally difficult for the Investment Manager, with widespread, significant and often indiscriminate falls in UK Smaller Companies' valuations. This reflects the considerable uncertainty facing the eurozone, and consequently the outlook for the UK economy where concerns about a double dip recession have been increasing.

Growth rates in many parts of the world have been slowing. In addition to this, the process of consumer and government deleveraging is likely to prove longer and more painful than investors anticipated.

Despite these concerns, there are opportunities to be found in individual UK based smaller company stocks that are well-positioned to benefit from their exposure to niche growth areas both within the UK and further afield in regions such as China, Australia and the Middle East. The Board believes that the Investment Manager will continue to find sufficient high quality small UK listed and AIM companies with good financial strength and prospects and that these will continue to deliver good returns for the Company in the longer term. Whilst the timing and strength of any sustainable economic recovery is difficult to assess, the Board, and the Investment Manager, are optimistic that the portfolio will be well positioned when industrial and commercial activity levels improve.

Strone Macpherson

Chairman                                                                                                          21st October 2011

Investment Manager's Report

Market Background

The market background to the last year of the Company's performance was generally one of continued economic recovery. Concerns over a slowdown in China were misplaced; the Eurozone area and the USA appeared to be evidencing a slow recovery, and in the UK while the consumer was suffering, a recovery in growth prospects seemed on the cards.

Portfolio

As the signs of on-going recovery remained in place last year, the portfolio was well-positioned to benefit, as can be seen from the figures. While the index put in a strong performance of +21.1% to 31st July 2011, the portfolio produced a return on net assets of 39.3%. A narrowing of the discount led to shareholder returns of 49%.

Key contributors to this strong performance were the overweight positions in the Oil & Gas Producers and Oil Services sectors (Nautical Petroleum, Cape and Kentz in particular), and in the Chemicals sector (Elementis, Yule Catto). On the negative side there was only one significant underperformer held within the portfolio, Healthcare Locums. Other negatives were strong perfomers within the index which we did not own.

Throughout the year, the exposures within the portfolio were gradually changed. The very large position in the Oil & Gas Producers was significantly reduced (although we remain overweight in this sector), while the exposure to Oil Services was increased. The large overweight in the Industrials sector increased further, in part through strong performance, and in part through additional investment in the Electronic and Electricals sector, most notably Oxford Instruments.

As our concerns regarding the domestic consumer grew, we went further underweight in the Consumer Services sector and moved from a small overweight to an underweight position in the Consumer Goods sector. This led to disposals of positions such as Domino's Pizza and Restaurant Group and a reduction in the position in JD Sports. The other notable change was a large reduction in our technology position.

Performance attribution

	12 months to 31st July 2011		12 months to 31st July 2010			12 months to 31st July 2009
Contributions to total return	%	%	%	%	%		%
Benchmark return		21.1		15.6			-11.0
Asset allocation	9.9		2.8		-2.6
Stock selection	7.9		10.6		-6.4
Gearing/cash	1.3		0.4		0.1
Investment Manager's contribution		19.1		13.8			-8.9
Portfolio total return		40.2		29.4			-19.9
Management fee/other expenses   Repurchase of shares for cancellation	-1.3 0.4		-1.1 0.9		-1.1 0.2
VAT recovery	-		0.3		0.5
Other effects		-0.9		0.1			-0.4
Return on net assets		39.3		29.5			-20.3
Impact of decrease/increase in discount		9.7		0.7			-2.9
Return to shareholders		49.0		30.2			-23.2

Source: Xamin/JPMAM/Morningstar. All figures are on a total return basis.

Corporate activity (i.e. takeovers) was a feature throughout the year. We benefited from the takeovers of Minerva and Prostrakan; other targets which we did not own included Holidaybreak and Northern Foods. We continue to expect more such takeover activity, as large companies look to acquire growth through acquisitions.

We described the fairly benign economic backdrop in the Market Background above. Since the Company's year end this backdrop has changed. It began to fade in the summer, and disintegrated in August 2011. This has led to significant falls in stockmarkets around the world. In the UK the FTSE 100 index fell some 13%, although it has since partially rebounded and is down around 7% since the end of July. The smaller companies index has fallen more sharply, and is now back to the level of the end of July 2010. The Company has lagged in this environment, as the outlook for global growth has reduced, although this has been addressed over the past few months.

Market Outlook

Specific triggers for the recent fall in stockmarkets have included renewed focus on the Greek debt situation and the broader implications of European debt issues spreading to major Eurozone countries including Italy and Spain. At the same time in the USA, politicians have failed to address adequately the growing deficit problem, leading to a downgrade of the credit rating of the USA. These factors have combined with more general concerns focusing on a continual weakening of economic data, leading to strong doubts about the sustainability of the recovery, and renewed worries about a recession in the UK, Europe and the USA.

It is clear that growth rates in much of the Western World have stalled. Recent forecasts for 2012 are for 1.5% GDP growth in the UK, and 1% in the Eurozone. So how are we positioned against this gloomy backdrop of low growth and austerity measures?

Our focus remains on individual companies and ensuring that we understand their individual markets. We do not expect, and are not positioned for, a return to 2008 in terms of a collapse in company profits. The corporate world is in a much stronger position now than then, and companies are still growing their profits. Balance sheets have been repaired, companies (in general) have much lower borrowings, they are leaner and more efficient, and they do not have huge amounts of inventory.

Despite the downgrades to global GDP, forecast profit growth for smaller companies over the next twelve months is 10%. Where is the growth coming from, in this low-growth environment? The answer is from the UK, Europe and all over the world, for individual companies that are well-positioned in niche growth areas. In the UK, examples include niche communications providers such as KCOM and Alternative Networks; or growth retail brands such as Mulberry. Outside of the UK examples include those companies still benefiting from China's 10% GDP growth; or those exposed to the billions of dollars of new infrastructure spend in the Middle East; or to the $50 billion spend on LNG projects in Australia. This list goes on. We seek to identify such growth areas, and to invest in those companies which will benefit from them.

There is no doubt that on every measure, companies are cheap. We are positioning ourselves to ensure that the Company's diversified portfolio has exposure to growth.  In a low growth environment, this ability to increase profits and dividends will make these companies more valuable over time.

Georgina Brittain

Investment Manager                                                                                          21st October 2011

Principal Risks

With the assistance of the Manager, the Board has drawn up a risk matrix, which identifies the key risks to the Company. These key risks fall broadly under the following categories:

These key risks fall broadly under the following categories:

• Investment and Strategy: An inappropriate investment strategy, for example asset allocation or the level of gearing, may lead to under-performance against the Company's benchmark index and peer companies, resulting in the Company's shares trading on a wider discount. The Board manages these risks by diversification of investments through its investment restrictions and guidelines which are monitored and reported on. JPMAM provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, liquidity reports and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Managers, who attend all Board meetings, and reviews data which shows statistical measures of the Company's risk profile. The Investment Manager employs the Company's gearing tactically, within a strategic range set by the Board. The Board usually holds a separate meeting devoted to strategy each year.

• Discount:A disproportionate widening of the discount relative to the Company's peers could result in loss of value for shareholders. The Board regularly discusses discount policy and has set parameters for the Manager and the Company's broker to follow.

• Political:Changes in financial or tax legislation, including in the European Union, may adversely effect the Company. The Manager makes recommendations to the Board on accounting, dividend and tax policies, and seeks external advice where appropriate.

• Corporate Governance and Shareholder Relations: Details of the Company's compliance with Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance section in the Annual Report and Accounts.

• Market:Market risk arises from uncertainty about the future prices of the Company's investments. It represents the potential loss that the Company might suffer through holding investments in the face of negative market movements. The Board considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines, which are monitored and reported on by JPMAM. The Board monitors the implication and results of the investment process with the Manager.

• Accounting, Legal and Regulatory: In order to qualify as an investment trust, the Company must comply with Section 1158 of the Income and Corporation Tax Act 2010 ('Section 1158'). Should the Company breach Section 1158, it may lose its investment trust status and as a consequence capital gains within the Company's portfolio would be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by JPMAM and the results reported to the Board each month. The Company must also comply with the provisions of The Companies Act 2006 and, as its shares are listed on the London Stock Exchange, the UKLA Listing Rules. A breach of the Companies Act 2006 could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the UKLA Listing Rules may result in the Company's shares being suspended from listing which in turn would breach Section 1158. The Board relies on the services of its Company Secretary, JPMAM, and its professional advisers to ensure compliance with the Companies Acts and the UKLA Listing Rules.

• Operational:Disruption to, or failure of, JPMAM's accounting, dealing or payments systems or the custodian's records may prevent accurate reporting and monitoring of the Company's financial position. Details of how the Board monitors the services provided by JPMAM and its associates and the key elements designed to provide effective internal control are included within the Internal Control section of the Corporate Governance section in the Annual Report and Accounts.

• Financial:The financial risks faced by the Company include market price risk, interest rate risk, liquidity risk and credit risk. Bank counterparties are subject to daily credit analysis by the Manager and regular consideration at meetings of the Board. In addition the Board receives regular reports on the Manager's monitoring and mitigation of credit risks on share transactions carried out by the Company.

Related Parties Transactions

During the financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company during the period.

Statement under the Disclosure & Transparency Rules 4.1.12

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

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

b) the Annual Report and Accounts, to be published shortly, includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that they face.

For and on behalf of the Board

Strone Macpherson

Chairman                                                                                                          21st October 2011

Please note that up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can be found at www.jpmsmallercompanies.co.uk.

For further information please contact:

Divya Amin

For and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary                                        020 7742 6000

Income Statement

for the year ended 31st July 2011

			2011			2010
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair
value through profit or loss		-	32,758	32,758	-	19,117	19,117
Income from investments		2,511	-	2,511	2,185	-	2,185
Other interest receivable and similar
income		14	-	14	170	-	170
Gross return		2,525	32,758	35,283	2,355	19,117	21,472
Management fee		(472)	(472)	(944)	(373)	(373)	(746)
VAT recoverable		-	-	-	178	20	198
Other administrative expenses		(333)	-	(333)	(340)	-	(340)
Net return on ordinary activities
before finance costs and taxation		1,720	32,286	34,006	1,820	18,764	20,584
Finance costs		(117)	(117)	(234)	(96)	(96)	(192)
Net return on ordinary activities
before taxation		1,603	32,169	33,772	1,724	18,668	20,392
Taxation		(3)	-	(3)	(1)	-	(1)
Net return on ordinary activities
after taxation		1,600	32,169	33,769	1,723	18,668	20,391
Return per share	3	8.50p	170.90p	179.40p	8.92p	96.65p	105.57p

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

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

Reconciliation of Movements in Shareholders' Funds

for the year ended 31st July 2011

	Called up		Capital
	share	Share	redemption	Capital	Revenue
	capital	premium	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
At 31st July 2009	4,903	18,360	1,763	45,564	2,426	73,016
Repurchase and cancellation of the
Company's own shares	(168)	-	168	(2,386)	-	(2,386)
Net return on ordinary activities	-	-	-	18,668	1,723	20,391
Dividend appropriated in the year	-	-	-	-	(1,561)	(1,561)
At 31st July 2010	4,735	18,360	1,931	61,846	2,588	89,460
Repurchase and cancellation of the
Company's own shares	(75)	-	75	(1,499)	-	(1,499)
Net return on ordinary activities	-	-	-	32,169	1,600	33,769
Dividend appropriated in the year	-	-	-	-	(1,604)	(1,604)
At 31st July 2011	4,660	18,360	2,006	92,516	2,584	120,126

Balance Sheet

at 31st July 2011

		2011	2010
	Notes	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss		128,948	94,396
Investment in liquidity fund held at fair value through profit or loss		-	1,305
Total investments		128,948	95,701
Current assets
Debtors		212	734
Cash and short term deposits		1,313	271
		1,525	1,005
Creditors: amounts falling due within one year		(1,347)	(7,246)
Net current assets/(liabilities)		178	(6,241)
Total assets less current liabilities		129,126	89,460
Creditors: amounts falling due after more than one year		(9,000)	-
Net assets		120,126	89,460
Capital and reserves
Called up share capital		4,660	4,735
Share premium		18,360	18,360
Capital redemption reserve		2,006	1,931
Capital reserves		92,516	61,846
Revenue reserve		2,584	2,588
Total equity shareholders' funds		120,126	89,460
Net asset value per share	4	644.5p	472.3p

Company registration number: 2515996.

Cash Flow Statement

for the year ended 31st July 2011

		2011	2010
		£'000	£'000
Net cash inflow from operating activities		1,198	1,501
Returns on investments and servicing of finance
Interest paid		(174)	(199)
Net cash outflow from returns on investments and servicing
of finance		(174)	(199)
Capital expenditure and financial investment
Purchases of investments		(70,393)	(78,839)
Sales of investments		71,533	81,733
Other capital charges		(19)	(22)
Net cash inflow from capital expenditure and financial
investment		1,121	2,872
Dividend paid		(1,604)	(1,561)
Net cash inflow before financing		541	2,613
Financing
Net drawdown of loans		2,000	-
Repurchase and cancellation of the Company's own shares		(1,499)	(2,442)
Net cash inflow/(outflow) from financing		501	(2,442)
Increase in cash and cash equivalents		1,042	171

.

Notes to the Accounts

for the year ended 31st July 2011

1.         Accounting policies

            Basis of accounting

            The accounts are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the AIC in January 2009.

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

            The accounts have been prepared on a going concern basis.

            The policies applied in these accounts are consistent with those applied in the preceding year.

            The Company has a dormant and wholly owned subsidiary, Fleming Smaller Companies Securities Limited. Consolidated accounts have not been prepared as exemption under Section 405 of the Companies Act 2006 has been exercised due to the immateriality of the subsidiary.

2.         Dividends

	2011	2010
Dividends paid and proposed	£'000	£'000
Unclaimed dividends refunded to the Company	-	(8)
2010 final dividend of 8.5p (2009: 8.0p)	1,604	1,569
Total dividends paid in the year	1,604	1,561
Final dividend proposed of 8.5p (2010: 8.5p)	1,584	1,610

            The final dividend proposed in respect of the year ended 31st July 2010, amounted to £1,610,000. However, the actual payment amounted to £1,604,000 due to shares repurchased and cancelled after the Balance Sheet date but prior to the share register Record Date.

            The final dividend has been proposed in respect of the year ended 31st July 2011 and is subject to approval at the forthcoming Annual General Meeting. In accordance with the accounting policy of the Company, this dividend will be reflected in the accounts for the year ending 31st July 2012.

3.         Return per share

            The revenue return per share is based on the earnings attributable to the ordinary shares of £1,600,000 (2010; £1,723,000) and on the weighted average number of shares in issue during the year of 18,823,179 (2010: 19,316,003).

            The capital return per share is based on the capital return attributable to the ordinary shares of £32,169,000 (2010: £18,668,000) and on the weighted average number of shares in issue during the year of 18,823,179 (2010: 19,316,003).

            Total return per share is based on the total return attributable to the ordinary shares of £33,769,000 (2010: £20,391,000) and on the weighted average number of shares in issue during the year of 18,823,179 (2010: 19,316,003).

4.         Net asset value per share

            Net asset value per share is based on the funds attributable to ordinary shareholders and on 18,638,052 (2010: 18,940,023) ordinary shares in issue at the year end.

Status of announcement

2010 Financial Information

The figures and financial information for 2010 are extracted from the published Annual Report and Accounts for the year ended 31st July 2010 and do not constitute the statutory accounts for that year.  The Annual Report and Accounts has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

2011 Financial Information

The figures and financial information for 2011 are extracted from the Annual Report and Accounts for the year ended 31st July 2011 and do not constitute the statutory accounts for the year.  The Annual Report and Accounts includes the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts will be delivered to the Register of Companies in due course.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

ENDS

A copy of the annual report will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.hemscott.com/nsm.do.

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

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

 

END

 

 

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