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JP Morgan Flem Inc (JPI)

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Wednesday 24 May, 2006

JP Morgan Flem Inc

Final Results

JP Morgan Flem Income & Capital Inv
24 May 2006


              JPMORGAN FLEMING INCOME & CAPITAL INVESTMENT TRUST plc
                          STOCK EXCHANGE ANNOUNCEMENT

                   PRELIMINARY ANNOUNCEMENT OF FINAL RESULTS


The Board of JPMorgan Fleming Income & Capital Investment Trust plc is pleased
to announce the Company's results for the year ended 28th February 2006.
Commenting on the results, the Chairman has made the following statement:


Portfolio Performance

The year under review was a very satisfactory one for the UK stock market and an
even better one for the Company. I am pleased to be able to report that the
Company's portfolio again outperformed its composite benchmark index. The total
return on the portfolio was 26.9%, compared with a return of 17.2% on the index,
while the total return to shareholders after all costs was 25.3%.

There were two main reasons for this outperformance. The first was the Board's
decision to continue to put a much greater emphasis on equities than the
benchmark 67.5% agreed at the Company's formation. By the end of the Company's
financial year on 28th February 2006, the allocation to equities had been
increased to 93% from 80% a year earlier, while the proportion in bonds had been
reduced from 19% to zero. This decision was prompted by the view of the Board
that equities were likely to outperform bonds, which proved to be the case as
the equity market rose sharply towards the end of 2005 and into 2006. The move
into equities added 3.7% to the overall performance of the portfolio.

The second reason was continuing good equity selection by the Investment
Manager. The equity portfolio returned 28.1% during the year, compared with
22.0% for the index. The bond index returned only 7.5% during the year; a
comparable figure for the Company's bond portfolio cannot be calculated
accurately because of the large scale sales.


Share Price Performance

The stronger equity market had a particularly beneficial effect on the Company's
ordinary share price and, taking into account net dividends, ordinary
shareholders enjoyed an increase in value of 43.8% during the year, as the
discount on net asset value fell from 7.7% to 7.1%. The price of the zero
dividend preference shares rose by 4.0% as the premium at which these shares
trade reduced from 9.0% to 4.7%.

The value of a unit, comprising two ordinary shares and one zero dividend
preference share, increased by 29.4% (including net dividends).


Equity Sales Since Year-End

While remaining confident about the longer term attractions of equities, the
Board concluded in April 2006 that the strength of the UK market in recent
months had left share prices vulnerable to a short-term setback.  We therefore
agreed that about 25% of the enlarged equity portfolio should be sold.  This was
accomplished by the beginning of May and raised almost £50m.  Given the
Company's short remaining life, and its benchmark split of 67.5% equities and
32.5% bonds, the sales proceeds are likely to be re-invested in short-term
bonds.


Hurdle Rate

The Hurdle Rate measures the amount by which the total assets of the Company
have to grow each year in order to return the current share price to ordinary
shareholders when the Company winds up in February 2008. At the end of February
2006, the Hurdle Rate required to return the current ordinary share price of
124.8p was 4.3% per annum, and to return the original 100p subscription price
was minus 0.8% per annum.  At 22nd May 2006, the relevant hurdle rates were 5.6%
and 1.0% respectively.


Revenue and Dividends

Revenue for the year, after taxation, was £5,793,000 and earnings per ordinary
share were 7.86p.

A fourth interim dividend of 2.00p per ordinary share was paid on 3rd April 2006
to ordinary shareholders and unitholders on the register at the close of
business on 3rd March 2006. That dividend, together with the three interim
dividends previously paid, each of 1.75p per ordinary share, brings the total
payment for the year to 7.25p per ordinary share.


Accounting Standards

Following the introduction of new financial reporting standards in 2005, there
have been a number of significant amendments this year to the accounting
policies of the Company. One of the main effects of the new standards is to
exclude the amount of the proposed fourth interim dividend from the accounts of
the Company as this item is no longer viewed as a liability. The year-end net
asset value per ordinary share is therefore 2.00p per share higher than would
otherwise be the case. Comparative numbers for 2005 have been restated.


Corporate Governance

The Board believe that the Company operates in full accordance with best
practice in corporate governance and has put in place procedures to ensure that
the Company complies with the Combined Code and the AITC Code on Corporate
Governance.

In January this year, the Nomination Committee of the Board met and carried out
an evaluation of the Directors, the Chairman, the Board itself and its
committees, the results of which were satisfactory. The Board also carried out a
thorough review of the services provided by the Manager. Following this review,
the Board has concluded that the continued appointment of the Manager is in the
interests of shareholders.


Share Repurchase Facility

At last year's Annual General Meeting, shareholders granted the Directors
authority to repurchase the Company's shares for cancellation, such authority to
expire at the earlier of 25th January 2007 or the conclusion of the Annual
General Meeting of the Company in 2006. During the year the Company repurchased
a total of 1,455,000 ordinary shares for cancellation at a weighted average
discount to net asset value (with debt valued at par) of 15.4%. This has added
approximately 0.30p per ordinary share to the net asset value for continuing
shareholders. No zero dividend preference shares were repurchased during the
year. The Board recommend that the repurchase authority be kept in place to be
used as and when appropriate in the interests of shareholders, and is seeking
approval from shareholders to renew the authority at the forthcoming Annual
General Meeting.


Board of Directors

On 14th December 2005, Richard Hills and James West were appointed Directors of
the Company. Both have had successful careers in the field of investment
management. Most recently, Richard Hills was the founder and managing director
of Argyll Investment Management Limited, and James West has worked as a
professional independent director of public and private companies, with a strong
bias towards investment trusts. They bring a wealth of experience to the Board
and, having been appointed during the year, they will stand for election at the
forthcoming Annual General Meeting.

In accordance with the Company's Articles of Association, Roderick Collins and
James Roe are required to retire from the Board by rotation at this year's
Annual General Meeting. Roderick Collins will be seeking re-election and, in
view of the important contribution which he makes to our deliberations, the
Board recommend that shareholders vote in favour of his re-election. James Roe
will be retiring at the end of the Annual General Meeting and will therefore not
be seeking re-election. He has played a central role in the life of the Company,
and I would like to thank him warmly for his wise counsel during the years that
he has served on the Board.


Directors' Fees

As explained in the Directors' Remuneration Report in the Annual Report and
Accounts, Directors' fees were increased from 1st January 2006. During the
process leading to the appointment of the Company's two new Directors, it became
apparent that the then current fees were below market levels, which have risen
steadily as the responsibilities of directors generally have become more
onerous. That in turn has made it necessary to seek the approval of shareholders
to an increase in the permitted aggregate level of fees from £100,000 to
£125,000 and a resolution to that effect will be put to the Annual General
Meeting.


Change of Company Name

To reflect the change of the Company's Manager's name from J.P. Morgan Fleming
Asset Management (UK) Limited to JPMorgan Asset Management (UK) Limited on 3rd
May 2005, the Board considers it appropriate that the Company's name be changed
to JPMorgan Income & Capital Investment Trust plc. The Board will therefore
propose a resolution to that effect at the Annual General Meeting.


Annual General Meeting

The Annual General Meeting will be held at The Armourers' Hall, 81 Coleman
Street, London EC2R 5BJ at 3.00 p.m. on Tuesday 25th July 2006. The format of
the meeting will be similar to that of last year, and will include a
presentation from the Investment Manager on investment policy and performance.
There will also be the usual opportunity for shareholders to meet the Board and
representatives of JPMorgan after the meeting.

If you wish to raise any detailed or technical questions at the Meeting, it
would be helpful if you could mention them in advance to the Company Secretary
at Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ. Shareholders who are
unable to attend the Meeting in person are encouraged to use their proxy votes.


Sir Charles Nunneley
Chairman, 24th May 2006


For further information please contact:

Lucy Sullivan
JPMorgan Asset Management (UK) Limited
Telephone 0207 742 6000



JPMorgan Fleming Income & Capital Investment Trust plc
Unaudited figures for the year ended 28 February 2006

Income Statement (Unaudited)


                                            Year ended 28 February 2006           Year ended 28 February 2005
                                                                                          (restated)
                                               Revenue     Capital       Total    Revenue    Capital       Total
                                                return      return      return     return     return      return
                                                 £'000       £'000       £'000      £'000      £'000       £'000

Realised gains/(losses) on investments               -       4,862       4,862          -      (701)       (701)
Unrealised gains on investments                      -      27,485      27,485          -     13,947      13,947
Net (losses)/gains on foreign currency cash
& short-term deposits held during the year           -       (132)       (132)          -         92          92
Unrealised gain on currency hedge                    -           -           -          -         56          56
Other capital charges                                -         (4)         (4)          -        (1)         (1)
Income from investments                          6,026           -       6,026      7,107          -       7,107
Other income                                       976           -         976        654          -         654
                                               _______    ________     _______    _______    _______     _______

Gross revenue and capital returns                7,002      32,211      39,213      7,761     13,393      21,154

Management fee payable                           (604)       (906)     (1,510)      (550)      (825)     (1,375)

Other administrative expenses                    (405)           -       (405)      (310)          -       (310)
                                               _______     _______     _______    _______    _______     _______

Net return before finance costs and
taxation                                         5,993      31,305      37,298      6,901     12,568      19,469
Interest payable                                   (1)         (2)         (3)      (151)      (352)       (503)
Breakage costs on repayment of loan                  -           -           -          -      (120)       (120)
Dividends on ordinary shares                   (5,366)           -     (5,366)    (5,414)          -     (5,414)
                                               _______     _______     _______    _______    _______     _______

Net return before taxation                         626      31,303      31,929      1,336     12,096      13,432
Taxation                                         (199)         199           -      (619)        411       (208)
                                               _______     _______     _______    _______    _______     _______

Transfer to reserves                               427      31,502      31,929        717     12,507      13,224

Return per ordinary share                        7.86p      33.90p      41.76p      8.21p      8.70p      16.91p



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. The capital 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.



JPMorgan Fleming Income & Capital Investment Trust plc
Unaudited figures for the year ended 28 February  2006


BALANCE SHEET                                                                 28 February      28 February
                                                                                     2006             2005
                                                                                    £'000            £'000

Investments at fair value through profit or loss                                  171,953          150,214

Net current assets                                                                 12,042            3,423

Total net assets                                                                  183,995          153,637
                                                                                    =====            =====
Net asset value per share
Ordinary shares                                                                    134.3p            99.7p
Zero dividend preference shares                                                    131.6p           121.6p


CASH FLOW STATEMENT
                                                                                     2005             2004
                                                                                    £'000            £'000

Net cash inflow from operating activities                                           6,152            6,205

Net cash outflow from returns on investments and servicing of
finance                                                                           (5,369)          (6,401)

Net cash (outflow)/inflow from taxation                                             (139)              155

Net cash inflow from financial investment                                           6,089           29,493

Net cash outflow from financing                                                   (1,234)         (26,400)
                                                                                  _______          _______
Increase in cash for the year                                                       5,499            3,052
                                                                                    =====            =====



The results for the year ended 28 February 2005 have been restated in accordance
with Financial Reporting Standard 21.

The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The comparative financial
information is extracted from the statutory accounts for the year ended 28th
February 2005 and restated for changes in accounting policy. Those accounts,
upon which the auditors issued an unqualified opinion, have been delivered to
the Registrar of Companies. The auditors have reported under Section 235 on the
accounts for 28 February 2005.



JPMORGAN ASSET MANAGEMENT (UK) LIMITED
24th May 2006




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