Unaudited 6-Month Results
JP Morgan Fleming Asian Inv Tst PLC
9 May 2002
JPMorgan Fleming Asian Investment Trust Plc.
Stock Exchange Announcement
Unaudited Results for the six month period to 31st March 2002
Chairman's Statement*
Performance
For the six months to the 31st March 2002, the total return on the Company's
diluted net assets rose by42.7% versus a rise in the benchmark index, the Morgan
Stanley Composit Free Asia Index ex Japan in sterling terms, of 49.3%. The
underperformance came mainly in the fourth quarter of 2001 as the Company
restructured its portfolio from a defensive to a more aggressive stance. A cash
holding of about 10% helped to diminish the impact of the market's immediate
reaction to the September terrorist attacks. However, it also meant that the
portfolio was not well placed when the market turned on 21st September and
rebounded strongly in October to December 2001. The Company continues to
outperform its benchmark over the longer term.
Market Review
In the fourth quarter of 2001 the aggressive easing of interest rates by Central
banks greatly benefited Asian markets as they were perceived to be most likely
to benefit from world growth. Valuations, which fell as a result of the Asian
crisis, were further lowered by the September terrorist attacks in the US,
making the fundamental investment case more persuasive. This attracted
investors into the market, resulting in the benchmark index bouncing 30.3%.
However, the only markets to outperform the benchmark in this quarter were Korea
and Taiwan, gaining 57.6% and 54.6% respectively. These technology heavy
markets rose on the back of strong US consumption, combined with certain new
technology offerings such as the X-Box and Game Cube. Despite question marks
over the sustainability of strong global demand, confidence was restored in
Taiwan's outsourcing model and its ability to gain market share in a price
competitive world. Korea's advance was more broadly based on the back of
stronger domestic consumption and rising corporate profitability.
Elsewhere, China's accession to the WTO in November led to a modest rise in its
B-share market for foreign investors, although regulatory concerns led to a
market drop in A-shares. Stronger home sales in Hong Kong and an important
export outlook for Singapore led to gains in excess of 20%.
The first quarter of 2002 was a different picture, however. The smaller markets
which had underperfomed in the previous quarter, produced stellar performances.
Indonesia, Thailand and the Philippines recording gains of 41.7%, 30.4% and
23.2% respectively. In Indonesia, the successful sale of Bank Central Asia to
Farallon was seen as a milestone for IBRA's asset sale programme. The Paris
Club negotiations, involving a rescheduling of Indonesia's sovereign debts,
helped to ease shorter term constraints. Thailand continued to see strong
retail interest as domestic investors shifted out of low yielding deposits into
equities. Foreign investors were also encouraged by the reversal of capital
flows and strengthening domestic consumption. Even the Philippines rebounded as
its sovereign risk rating improved. Of the larger markets, Korea continued to
surge ahead on the back of gathering momentum in its domestic economy. Hong
Kong, China Taiwan and India were relative underperformers. Overall the
benchmark index gained 13.7% over the first quarter of 2002.
Outlook
The outlook for Asia is positive both on a relative and absolute basis.
Compared to valuations in the United States, Asian markets are trading at about
half the valuations in Price Earnings Ratio and Price to Book Ratio, but
generating similar levels of returns on equity. Some asset allocation switch
towards Asia is thus likely. Global liquidity remains ample, and growth
prospects have improved from six months ago. Although the US Federal Reserve is
likely to raise interest rates in the second half of this calendar year, we
believe that earnings growth will still support higher equity markets in Asia.
Growth in Asia is not entirely dependant on Global demand, but on a broader
based resumption in domestic demand and inter-regional trade. It is not
unusual for markets to take a breather after such impressive gains, especially
as the usually quieter summer months approach. The investment manager has,
however, indicated that this would be viewed as a buying opportunity.
*All figures given in the statement are in sterling terms.
JPMorgan Fleming Asian Investment Trust plc
Unaudited figures for the six months ended 31 March 2002
Statement of Total Return (Unaudited)
Six months to 31 March 2002 Six months to 31 March 2001 Year to 30 September 2001
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Realised gains/(losses) - 12,722 12,722 - (7,478) (7,478) - (27,494) (27,494)
on investments
Net change in - 43,926 43,926 - (21,026) (21,026) - (34,420) (34,420)
unrealised appreciation
Net losses on currency
transactions - (121) (121) - (221) (221) - (942) (942)
Other capital items - (25) (25) - 36 36 - - -
Unrealised gain on
currency hedge - - - - - - - 127 127
Franked investment - - - 41 - 41 41 - 41
income
Overseas dividends 1,239 - 1,239 1,110 - 1,110 2,620 - 2,620
Scrip dividends - - - - - - 164 - 164
Deposit interest 95 - 95 553 - 553 880 - 880
Stock lending 1 - 1 1 - 1 - - -
_______ ________ _______ ______ _______ _______ _______ _______ _______
Gross return 1,335 56,502 57,837 1,705 (28,689) (26,984) 3,705 (62,729) (59,024)
Management fee (517) - (517) (663) - (663) (1,212) - (1,212)
Other administrative
expenses (163) - (163) (157) - (157) (361) - (361)
Interest payable (300) - (300) (1,013) - (1,013) (1,558) - (1,558)
_______ _______ _______ _______ _______ _______ _______ _______ _______
Return before taxation 355 56,502 56,857 (128) (28,689) (28,817) 574 (62,729) (62,155)
Taxation (61) - (61) (43) - (43) (218) - (218)
______ _______ _______ ______ _______ _______ _______ _______ _______
Return attributable to
ordinary shareholders 294 56,502 56,796 (171) (28,689) (28,860) 356 (62,729) (62,373)
===== ===== ===== ===== ===== ===== ===== ===== =====
Return per ordinary 0.18p 34.66p 34.84p (0.10)p (17.53)p (17.63)p 0.22p (38.34)p (38.12)p
share
Dividend per ordinary Nil Nil Nil
share
JPMorgan Fleming Asian Investment Trust plc
Unaudited figures for the six months ended 31st March 2002
Balance Sheet 31 March 31 March 30 September
2002 2001 2001
£'000 £'000 £'000
Investments at valuation 182,158 148,611 110,451
Net current (liabilities)/assets (5,782) 35,762 10,375
Fixed loan - (30,000) -
______ _______ _______
Total net assets 176,376 154,373 120,826
===== ===== =====
Diluted Net asset value per ordinary share 108.8p 94.3p 73.9p
Cash Flow Statement
Six months to Six months to Year to
31 March 31 March 30 September
2002 2001 2001
£'000 £'000 £'000
Net cash inflow from operating activities 545 651 1,842
Net cash outflow from returns on investments and servicing (270) (1,286) (2,075)
of finance
Total tax recovered/(paid) 180 - (12)
Net cash (outflow)/inflow from capital expenditure and
financial investment (18,358) 14,986 23,259
Net cash (outflow)/inflow from financing (26,639) 3 (30,031)
_______ ______ ______
(Decrease) / Increase in cash for the period (44,542) 14,354 (7,017)
===== ==== ====
The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. Statutory accounts for the
year ended 30 September 2001 have been delivered to the Registrar of Companies.
J.P. MORGAN FLEMING ASSET MANAGEMENT (UK) LIMITED
9 May 2002
This information is provided by RNS
The company news service from the London Stock Exchange
IR DKLFBLEBBBBZ
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund