Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

JPMorgan Overseas (JMO)

  Print      Mail a friend       Annual reports

Wednesday 29 February, 2012

JPMorgan Overseas

Half Yearly Report

RNS Number : 4141Y
JPMorgan Overseas IT PLC
29 February 2012
 



LONDON STOCK EXCHANGE ANNOUNCEMENT

 

JPMORGAN OVERSEAS INVESTMENT TRUST PLC

 

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS

 

ENDED 31ST DECEMBER 2011

 

Chairman's Statement

Following the Company's strong outperformance in the previous two financial years, global stock markets suffered a tumultuous latter half in 2011 as the eurozone financial crisis reverberated across the world, coupled with a slow-down in economic growth around the world. During the six months reporting period to 31st December 2011, the Company recorded a total return on net assets of -12.6% compared with -8.6% total return of the benchmark, the MSCI All Country World Index (in sterling terms). It is pleasing to note that markets have recovered somewhat in 2012 and the Company's net asset value and share price have increased by 10.8% and 11.8% respectively since the period end.

Although the Company gave back some of the outperformance over the six months reporting period, the long-term performance record against our benchmark at 31st December 2011 remains strong as shown below:

Total Return

3 years

5 years

Net Asset Value

+53.6%

+26.2%

Share Price

+59.3%

+28.0%

Benchmark

+30.0%

+11.7%

The return to shareholders was -15.8% over the reporting period. This lower return reflects the widening of the Company's share price discount to net asset value from 1.5% at 30th June 2011 to 4.7% at 31st December 2011. During the six months, the Company sold 40,000 shares from Treasury at modest premiums to net asset value. In line with the Company's discount management policy, we also repurchased 175,304 shares for holding into Treasury. The Board believes these actions have been successful in reducing the volatility of the share price discount to net asset value.

Reflecting the Investment Manager's increasing concerns, gearing was reduced to zero in mid-July 2011 and our facility has remained undrawn since. The Investment Manager provides a detailed commentary on markets and the portfolio performance in his Report.

In accordance with corporate governance practice, the Board has continued to refresh the Board. I am pleased to welcome Gay Collins who joined the Board on 21st February 2012. Her breadth of knowledge and experience will prove valuable in Board discussion. John Rennocks, who has served on the Board since 2001, intends to retire as a Director immediately after the 2012 Annual General Meeting later this year.

The Board has confidence in the Investment Manager's high conviction approach of identifying companies with strong valuation signals and significant growth potential to deliver superior returns over a longer-term horizon to our shareholders. This strategy relies on JPMAM's highly experienced global research team and the skills of the Investment Manager to select stocks which are well placed to trade through periods of challenging circumstances and to benefit when markets improve. As global central banks continue to provide a measure of support for global growth, the outlook for the second half of the Company's financial year appears encouraging.

for and on behalf of the Board

Simon Davies

Chairman,  29th February 2012

Investment Manager's Report

Market review

During the second half of 2011 global equity markets were dominated by investors' anxiety over a slow-down in economic growth around the world, with a particular focus on the Eurozone. These factors overwhelmed corporate fundamentals and the MSCI All Country World index declined 8.6% in sterling terms with considerable dispersion across regions and sectors. For example, US equities outperformed Continental Europe by around 10 percentage points and financial sectors declined more than broader indices by a similar margin. Towards the end of 2011 investors' fears escalated over a disorderly default in Europe and the potential consequences of deteriorating growth prospects and a collapse of the European banking system.

Portfolio review

We mentioned in our report of September 2011 that such spells of uncertainty are seldom a fruitful environment for our investment process. During such times our portfolios suffer on a relative basis as investors flock to short term safety at the expense of companies with attractive valuations and long-term earnings prospects. This creates significant dislocations in stock valuations across sectors and regions.

It is noteworthy that the small clutch of stocks which performed very well in the portfolio such as Royal Dutch Shell, ACE and Japan Tobacco shared many of the 'safety' attributes while still being reasonably attractively valued with good long‑term earnings potential relative to their peers. This combination of quality and value was becoming increasingly hard to find as 2011 progressed. Our observation is that it seldom pays to change dramatically the nature of a portfolio in an environment such as this. Provided that our original analysis and insight is correct, a contrarian stance is often more rewarding. We continue to invest with a long term view and we believe that there are many positive fundamental factors today that support the case for a disciplined valuation based investment approach.

Portfolio positioning

We have increased our position in a number of stocks where we have high conviction and which have performed poorly over the last six months. Schneider Electric, for example, which is listed in France and is a global leader in electrical components saw its shares hit by concerns over a short-term slow-down in European operations. Schneider's valuation largely ignored the company's strong growth in emerging markets (around 30% of revenues) and its expansion into faster growing businesses such as energy efficiency and services. We have also added to our, perhaps controversial, holding in Citigroup as we believe its exposure to an improving US economy, a very impressive global emerging market operation (around 30% of revenues) and a much improved balance sheet deserves a higher valuation relative to many of its peers.

As above, many of the companies which we have added to in recent months have considerable exposure to emerging markets, which remain an important source of long-term growth potential. While our direct emerging market exposure has inched up through new holdings in companies such as Novatek Microelectronics (Taiwan listed electronic components manufacturer) and Ping An (Chinese listed provider of life insurance), relative valuations still lead us towards those companies with exposure to emerging markets which are listed in developed markets. Bayer, for example, is a European health care company which has made significant investments in China over many decades. Bayer stands poised to benefit from growth in that market as it is far ahead of the local competition as well as having a vastly superior valuation.

Market volatility has presented a number of opportunities to add new names to the portfolio, such as Petrofac, a UK listed company which builds and operates oil and gas plants around the world, as well as APR Energy, listed in the UK but based in Florida, which is well positioned in the high growth market for emergency electrical power across developing economies. We also bought a new position in Henkel, the German company which has grown to become a global leader in industrial adhesives and consumer products.

Valuation concerns still lead the portfolio to be underweight in US equities. An ever decreasing proportion of US stocks appear cheap in a global context according to our valuation framework. Although this stance has damaged our performance in the near-term, now is not the time to change tack.

Investment Outlook

The political challenges of austerity in southern Europe are considerable, but many investors have been hesitant to see that some progress has been made, for example through the proposed structural reforms in Italy. Furthermore, the European Central Bank (ECB) has recently demonstrated through its three year funding of the banking system that it is prepared to take exceptional measures to deal with exceptional circumstances. The outlook for the major European economies is perhaps not as bleak as is often imagined by the more febrile strategists that have recently come to dominate the airwaves.

In addition to the more proactive stance from the ECB, the continuation of the US Federal Reserve's loose monetary policy and a wider global trend towards lower interest rates, economic data has, broadly, come through better than feared. US economic forecasts have risen and surveys suggest that, at this stage, Europe is not collapsing. In China, too, data has been stronger than many expected and fears of a hard landing have faded somewhat. However, it is far too early to claim victory. Fiscal tightening will likely remain a major headwind to growth, both in Europe and, from 2013, the US. While activity may have improved from a cyclical perspective, growth is likely to remain below trend for some time to come. Risks of policy errors are elevated in these situations.

While much still lies in the balance, we are reassured by some visible progress towards containing the fiendishly complex European sovereign debt issues. This creates the possibility that individual companies' fundamentals will become relatively more important again, stocks with attractive valuations will outperform and the environment for active management becomes less hostile. As always, our ability to perform is determined by the quality of our research analysts and the interaction between them and the portfolio management team. Despite recent headwinds we remain committed to delivering strong long-term returns for our investors.

Jeroen Huysinga

Investment Manager,  29th February 2012

 

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; accounting, legal and regulatory; corporate governance and shareholder relations; operational; and financial. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 30th June 2011.

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.

Directors' Responsibilities

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

(i)   the condensed set of financial statements contained within this half year report has been prepared in accordance with the Accounting Standards Board's Statement 'Half-Yearly Financial Reports'; and

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

For and on behalf of the Board

Simon Davies
Chairman,  29th February 2012-

 

Income Statement

for the six months ended 31st December 2011


(Unaudited)

Six months ended

31st December 2011

(Unaudited)

Six months ended

31st December 2010

(Audited)

Year ended

30th June 2011




Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

(Losses)/gains on investments held at fair value through profit or loss

-

(37,887)

(37,887)

-

44,611

44,611

-

45,596

45,596

Net foreign currency gains/(losses)

-

2,661

2,661

-

(1,158)

(1,158)

-

(3,243)

(3,243)

Income from investments

1,623

-

1,623

2,320

-

2,320

5,232

-

5,232

Other interest receivable and similar income

37

-

37

17

-

17

70

-

70

Gross return/(loss)

1,660

(35,226)

(33,566)

2,337

43,453

45,790

5,302

42,353

47,655

Management fee

(204)

(204)

(408)

(215)

(215)

(430)

(455)

(455)

(910)

Performance fee writeback/(charge)

-

1,884

1,884

-

(1,377)

(1,377)

-

(262)

(262)

Other administrative expenses

(210)

-

(210)

(187)

-

(187)

(472)

-

(472)

Net return/(loss) on ordinary activities before finance costs and taxation

1,246

(33,546)

(32,300)

1,935

41,861

43,796

4,375

41,636

46,011

Finance costs

(37)

(37)

(74)

(111)

(111)

(222)

(223)

(223)

(446)

Net return/(loss) on ordinary activities before taxation

1,209

(33,583)

(32,374)

1,824

41,750

43,574

4,152

41,413

45,565

Taxation (note 3)

(118)

-

(118)

(165)

-

(165)

(408)

-

(408)

Net return/(loss) on ordinary activities after taxation

1,091

(33,583)

(32,492)

1,659

41,750

43,409

3,744

41,413

45,157

Return/(loss) per share (note 4)

4.18p

(128.72)p

(124.54)p

6.45p

162.28p

168.73p

14.51p

160.52p

175.03p

 

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

Capital

Revenue


31st December 2011

capital

premium

reserve

reserves

reserve

Total

(Unaudited)

£'000

£'000

£'000

£'000

£'000

£'000

At 30th June 2011

6,544

970

27,401

178,926

17,986

231,827

Repurchase of shares into Treasury

-

-

-

(1,230)

-

(1,230)

Re-issue of shares from Treasury

-

45

-

243

-

288

Net (loss)/return on ordinary activities

-

-

-

(33,583)

1,091

(32,492)

Dividend appropriated in the period

-

-

-

-

(3,526)

(3,526)

At 31st December 2011

6,544

1,015

27,401

144,356

15,551

194,867









Called up


Capital




Six months ended

share

Share

redemption

Capital

Revenue


31st December 2010

capital

premium

reserve

reserves

reserve

Total

(Unaudited)

£'000

£'000

£'000

£'000

£'000

£'000

At 30th June 2010

6,544

-

27,401

135,383

17,585

186,913

Net return on ordinary activities

-

-

-

41,750

1,659

43,409

Dividend appropriated in the period

-

-

-

-

(3,345)

(3,345)

At 31st December 2010

6,544

-

27,401

177,133

15,899

226,977









Called up


Capital




Year ended

share

Share

redemption

Capital

Revenue


30th June 2011

capital

premium

reserve

reserves

reserve

Total

(Audited)

£'000

£'000

£'000

£'000

£'000

£'000

At 30th June 2010

6,544

-

27,401

135,383

17,585

186,913

Re-issue of shares from Treasury

-

970

-

2,130

-

3,100

Net return on ordinary activities

-

-

-

41,413

3,744

45,157

Dividend appropriated in the year

-

-

-

-

(3,343)

(3,343)

At 30th June 2011

6,544

970

27,401

178,926

17,986

231,827

 



Balance Sheet

at 31st December 2011


(Unaudited)

(Unaudited)

(Audited)


31st December 2011

31st December 2010

30th June 2011


£'000

£'000

£'000

Fixed assets




Equity investments held at fair value through profit or loss

189,777

242,410

248,913

Investments in liquidity funds held at fair value through profit or loss

3,250

4,740

3,430

Total investments

193,027

247,150

252,343

Current assets




Financial assets: derivative financial instruments

2,384

3,590

3,027

Debtors

283

397

1,501

Cash and short term deposits

168

74

875


2,835

4,061

5,403

Creditors: amounts falling due within one year

(269)

(19,515)

(21,989)

Financial liabilities: derivative financial instruments

(526)

(1,799)

(1,846)

Net current assets/(liabilities)

2,040

(17,253)

(18,432)

Total assets less current liabilities

195,067

229,897

233,911

Creditors: amounts falling due after more than one year

(200)

(200)

(200)

Provisions for liabilities and charges




Performance fee

-

(2,720)

(1,884)

Net assets

194,867

226,977

231,827

Capital and reserves




Called up share capital

6,544

6,544

6,544

Share premium

1,015

-

970

Capital redemption reserve

27,401

27,401

27,401

Capital reserves

144,356

177,133

178,926

Revenue reserve

15,551

15,899

17,986

Total equity shareholders' funds

194,867

226,977

231,827

Net asset value per share (note 5)

751.2p

882.3p

889.0p

 

 

Company registration number: 24299.

 



Cash Flow Statement

for the six months ended 31st December 2011


(Unaudited)

(Unaudited)

(Audited)


Six months ended

Six months ended

Year ended


31st December 2011

31st December 2010

30th June 2011


£'000

£'000

£'000

Net cash (outflow)/inflow from operating activities (note 6)

(367)

647

2,684

Net cash outflow from returns on investments and servicing of finance

(170)

(136)

(351)

Taxation recovered

24

44

82

Net cash inflow/(outflow) from capital expenditure and financial investment

19,934

(4,180)

(6,864)

Dividend paid

(3,526)

(3,345)

(3,343)

Net cash (outflow)/inflow from financing

(18,587)

7,800

10,900

(Decrease)/increase in cash for the period

(2,692)

830

3,108

Reconciliation of net cash flow to movement in net debt




Net cash movement

(2,692)

830

3,108

Loans repaid/(drawn down) in the period

17,800

(7,800)

(7,800)

Exchange movements

1,985

(1,393)

(2,870)

Movement in net debt in the period

17,093

(8,363)

(7,562)

Net debt at the beginning of the period

(17,125)

(9,563)

(9,563)

Net debt at the end of the period

(32)

(17,926)

(17,125)

Represented by:




Cash and short term deposits

168

74

875

Debt falling due within one year

-

(17,800)

(17,800)

Debt falling due after more than five years

(200)

(200)

(200)

Total

(32)

(17,926)

(17,125)

 



Notes to the Accounts

for the six months ended 31st December 2011

1.   Financial statements

      The information contained within the accounts 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 30th June 2011 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 and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' dated January 2009.

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

      The accounting policies applied to these half year accounts are consistent with those applied in the accounts for the year ended 30th June 2011.

3.   Taxation

      The taxation charge of £118,000 (31st December 2010: £165,000 and 30th June 2011: £408,000) comprises irrecoverable overseas withholding tax.

4.   Return/(loss) per share



(Unaudited)

(Unaudited)

(Audited)



Six months ended

Six months ended

Year ended



31st December 2011

31st December 2010

30th June 2011



£'000

£'000

£'000


Return/(loss) per share is based on the following:





Revenue return

1,091

1,659

3,744


Capital (loss)/return

(33,583)

41,750

41,413


Total (loss)/return

(32,492)

43,409

45,157


Weighted average number of shares in issue

26,089,914

25,726,732

25,799,741


Revenue return per share

4.18p

6.45p

14.51p


Capital (loss)/return per share

(128.72)p

162.28p

160.52p


Total (loss)/return per share

(124.54)p

168.73p

175.03p

 

5.   Net asset value per share

      Net asset value per share is calculated by dividing the funds attributable to ordinary shareholders by the number of ordinary shares in issue at 31st December 2011 of 25,942,428 (31st December 2010: 25,726,732 and 30th June 2011: 26,077,732), excluding shares held in Treasury.

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



(Unaudited)

(Unaudited)

(Audited)



Six months ended

Six months ended

Year ended



31st December 2011

31st December 2010

30th June 2011



£'000

£'000

£'000


Total (loss)/return on ordinary activities before finance costs and taxation

(32,300)

43,796

46,011


Add back capital loss/(return) before finance costs and taxation

33,546

(41,861)

(41,636)


Scrip dividends received as income

(29)

(24)

(24)


Net movement in debtors and accruals

(41)

340

425


Overseas withholding tax

(114)

(229)

(477)


Management fee charged to capital

(204)

(215)

(455)


Performance fee paid

(1,225)

(1,160)

(1,160)


Net cash (outflow)/inflow from operating activities

(367)

647

2,684

 



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 half year report will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do 

 

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


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