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JPMorgan Flem Jap IT (JFJ)

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Wednesday 15 November, 2006

JPMorgan Flem Jap IT

Final Results

JPMorgan Fleming Japanese IT PLC
15 November 2006



                                 FINAL RESULTS

Investment Performance

The strong performance of the Japanese economy over the latter months of 2005
and the early part of 2006 continued into the second half of the Company's
financial year. However, rather disappointingly, this strength was not reflected
in either the performance of the main Japanese markets, or the returns generated
for shareholders. Over the year to 30th September 2006 the Company produced a
total return on net assets of 2.0%, underperforming the total return of its
benchmark, the TOPIX Index, of 4.8%. The return to shareholders was a negative
3.2% as the discount on the shares widened from 3.1% to 7.7% at the end of the
financial year.

Revenue and Dividends

Net revenue after taxation for the year was £6,692,000 (2005: £5,112,000) and
earnings per share were 3.60p (2005: 2.75p). The change in accounting policy
made in 2003 regarding the allocation of the Company's expenses, together with
the strong growth in investment income witnessed in recent years, has meant that
the revenue reserve deficit that the Company had built up over the course of its
existence has been substantially reduced. In the absence of any unforeseen
circumstances, and as long as normal market conditions prevail, it appears
likely that the Company will be in a position to pay a dividend in respect of
the current financial year to September 2007.

Accounting Standards

Following the introduction of new financial reporting standards in 2005 there
have been a number of amendments this year to the accounting policies of the
Company.  The main difference to prior years is the valuation of investments at
'fair value', which in this case means bid price instead of last trade price.
The move from bid price to mid price has necessitated the adjustment of the
Company's return on net assets. This is in line with investment trust practice.

Board of Directors

During the year, the Board carried out an evaluation of the Directors, the
Chairman, the Board's operations and its Committees. Three Directors are seeking
election or re-election at this year's Annual General Meeting. In accordance
with the Company's Articles of Association, Alan Barber, who was appointed to
the Board on 9th February 2006, retires and seeks election. The Director
retiring by rotation is David Pearson, who being eligible, offers himself for
re-election. In addition, I, having served as a Director for in excess of nine
years, therefore also retire and will seek re-election. The Board does not
believe that length of service in itself should disqualify a Director from
seeking re-election and, in proposing my re-election, it has taken into account
the ongoing requirements of the Combined Code, including the need to refresh the
Board and its Committees. Both Alan and David have proved invaluable in the
Board's deliberations and I have no hesitation in recommending their election
and re election respectively.

Investment Manager

The Company's objective is to provide shareholders with capital growth from a
portfolio of investments in Japanese companies. Your Board has reviewed the
capabilities of the Investment Manager in order to assess whether JPMorgan Asset
Management (UK) Limited remains the most appropriate manager of the Company's

Authority to Repurchase the Company's Shares

At last year's AGM, shareholders granted the Directors authority to repurchase
up to 14.99% of the company's shares for cancellation. Whilst the Company only
repurchased 0.15% of the Company's issued share capital (280,000 shares) for
cancellation during the year, the Directors believe that the power to buyback
shares is of benefit to shareholders. It is therefore proposed that the
authority be renewed for a further period.

Change of Company Name

In the light of the change of the 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 that there are advantages to changing the Company's
name to JPMorgan Japanese Investment Trust plc. The Board will therefore propose
a resolution to change the Company's name at the forthcoming Annual General
Meeting. None of the costs relating to this change will fall on shareholders.

Annual General Meeting

This year's Annual General Meeting will be held at The Library, JPMorgan's
offices, 6o Victoria Embankment, London EC4Y 0JP on Tuesday 19th December 2oo6
at 2.00 p.m.


Japan benefited from three years of strong stock market gains from 2003 to 2005,
but in 2006 its performance has been much weaker. This has now left the stock
market looking more reasonably valued again - trading on broadly comparable
valuations to the United States equity market and by historical comparison a
more modest premium to European markets - despite a much lower cost of capital
for companies in Japan. The listed corporate sector from which the manager has
to choose investments is delivering a higher return-on-equity for shareholders
than at any time in the post-war period, and the companies are also implementing
both higher dividend pay-outs and share buy-backs to enhance shareholder
returns. Overall, this gives a relatively benign background in which to invest
in Japanese equities, particularly if earnings growth can be maintained. There
will though be challenges over the next year coming from a variety of sources:
the global economy which is adjusting to a slower path of growth than in the
last three years, consumption in Japan which has yet to respond to tighter
labour markets as companies hold down wages and from the demographic changes now
affecting the Japanese population. In 2006 geo-political problems in the middle
east and elsewhere have been much more frequent and it seems this trend may
continue for the foreseeable future. However, the Board remains confident that
out of the significant - and growing - universe of listed Japanese companies,
there are many that are creating shareholder value which can be included in a
portfolio dedicated to investing in Japan, thus hopefully providing most
satisfactory returns to shareholders for the future.

Jeremy Paulson-Ellis

15th November 2006

For further information, please contact:
Andrew Norman
For and on behalf of
JPMorgan Asset Management (UK) Limited - Secretary
020 7742 6000

JPMorgan Fleming Japanese Investment Trust plc
Unaudited figures for the year ended 30th September 2006

Income Statement
for the year ended 30th September 2006

                                                           2006                               2005
                                               Revenue     Capital       Total    Revenue     Capital       Total  
                                                return      return      return     return      return      return
                                                 £'000       £'000       £'000      £'000       £'000       £'000
Gains from investments held at fair value
              through profit or loss                 -       5,897       5,897          -     108,645     108,645
Income from investments                          7,245           -       7,245      4,983           -       4,983
Other interest receivable and similar            1,205           -       1,205      1,554           -       1,554
income                                         _______    ________     _______    _______    ________     _______

Gross revenue and capital gains                  8,450       5,897      14,347      6,537     108,645     115,182

Management fee                                   (702)     (2,808)     (3,510)      (571)     (2,285)     (2,856)

Other administrative expenses                    (460)           -       (460)      (439)           -       (439)
                                               _______    ________     _______    _______    ________     _______

Net return on ordinary activities before
finance costs and taxation                       7,288       3,089      10,377      5,527     106,360     111,887
Finance costs                                     (89)       (358)       (447)       (66)       (265)       (331)
                                               _______     _______     _______    _______     _______     _______

Net return on ordinary activities before
  taxation                                       7,199       2,731       9,930      5,461     106,095     111,556
Taxation                                         (507)           -       (507)      (349)           -       (349)
                                               _______     _______     _______    _______     _______     _______

Net return on ordinary activities after
taxation                                         6,692       2,731       9,423      5,112     106,095     111,207
                                               _______     _______     _______    _______     _______     _______

Return per share (basic and diluted)             3.60p       1.47p       5.07p      2.75p      57.10p      59.85p

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

JPMorgan Fleming Japanese Investment Trust plc
Unaudited figures for the year ended 30th September 2006

Reconciliation of Movements in Shareholders' Funds
for the year ended 30th September 2006

                                       Called up                   Capital
                                           share        Other   redemption   
                                         capital      reserve      reserve    Capital      Revenue   
                                                                     £'000     reserve     reserve       Total
                                           £'000        £'000                    £'000       £'000       £,000

 At 30th September 2004                   46,450      166,791        2,512     189,204    (11,875)     393,082
Total return on ordinary activities            -            -            -     106,095       5,112     111,207

At 30th September 2005                    46,450      166,791        2,512     295,299     (6,763)     504,289
Adjustment to opening shareholders'
funds at 1st October 2005 to reflect
the adoption of bid prices                     -            -            -     (1,209)           -     (1,209)
Shares bought back and cancelled            (70)            -           70       (762)           -       (762)
Total return from ordinary                     -            -            -       2,731       6,692       9,423
Unclaimed dividends returned in the
year                                           -            -            -           -           7           7
At 30th September 2006                    46,380      166,791        2,582     296,059        (64)     511,748

JPMorgan Fleming Japanese Investment Trust plc
Unaudited figures for the year ended 30th September 2006

Balance Sheet
as at 30th September 2006

                                                                                     2006             2005
                                                                                    £'000            £'000
Fixed Assets
Investments at fair value                                                         575,721          574,903

Current assets
Debtors                                                                             2,224           13,658

Cash at bank and in hand                                                              879              889

                                                                                    3,103           14,547

Amounts falling due within one year                                              (67,076)         (84,282)

Derivative financial instruments                                                        -            (879)

Net current liabilities                                                          (63,973)         (70,614)

Total assets less current liabilities                                             511,748          504,289

Total net assets                                                                  511,748          504,289

Capital and reserves
Called up share capital                                                            46,380           46,450
Other reserves                                                                    166,791          166,791
Capital redemption reserve                                                          2,582            2,512
Capital reserve                                                                   296,059          295,299
Revenue reserve                                                                      (64)          (6,763)
Equity shareholders' funds                                                        511,748          504,289

Net asset value per share                                                          275.8p           271.4p

JPMorgan Fleming Japanese Investment Trust plc
Unaudited figures for the year ended 30th September 2006

Cash Flow Statement
for the year ended 30th September 2006                                               2006             2005
                                                                                    £'000            £'000

Net cash inflow from operating activities                                           3,660            2,763

Returns on investments and servicing of finance
Interest paid                                                                       (478)            (284)

Capital expenditure and financial investment
Purchases of investments                                                        (893,498)        (590,308)
Sales of investments                                                              898,078          569,379
Other capital charges                                                                 (7)             (10)

Net cash inflow / (outflow) from capital expenditure and financial
investment                                                                          4,573         (20,939)

Unclaimed dividends returned                                                            7                -

Net cash inflow / (outflow) before financing                                        7,762         (18,460)

Repurchase of ordinary shares                                                       (762)                -
Net (repayment)/draw down on loans                                                (5,941)           17,929

Net cash (outflow) / inflow from financing                                        (6,703)           17,929

Increase / (decrease) in cash for the year                                          1,059            (531)


1. Accounting policies

The Company has adopted certain new accounting policies following the issue of
new financial reporting standards (FRSs) and the Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies' as issued by the
AIC in December 2005. The only material change to the accounts is
as follows:

Investments are designated as held at fair value through profit or loss in
accordance with FRS 26: 'Financial Instruments: Measurement'. Listed investments
are valued at bid market prices. This represents a change in accounting policy,
however in accordance with the exemption conferred by paragraph 108D of FRS26,
comparatives have not been restated. In prior years, listed investments were
valued using last trade prices. The adoption of bid prices on 1st October 2005
decreased the value of investments by £1,209,000.

2. Comparative figures

The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The comparative financial
information is an extract from the statutory accounts for the year ended 30th
September 2005. Those accounts, upon which the auditors issued an unqualified
opinion, have been delivered to the Registrar of Companies.


                      This information is provided by RNS
            The company news service from the London Stock Exchange