Half Year Report JPMorgan Overseas Investment Trust plc · global stock markets suffered a tumultuous latter half in 2011 as the eurozone ... (Chinese listed provider oflife insurance),

Half Year Report2011JPMorgan Overseas Investment Trust plc

Half Year Report & Accounts for the six months ended 31st December 2011

Features

Contents

About the Company

1 Half Year Performance2 Chairman’s Statement3 Investment Manager’s Report

Investment Review

5 List of Investments7 Portfolio Analyses

Accounts

8 Income Statement9 Reconciliation of Movements in

Shareholders’ Funds10 Balance Sheet11 Cash Flow Statement12 Notes to the Accounts14 Interim Management Report

Shareholder Information

15 Glossary of Terms and Definitions17 Information about the Company

Objective

Capital growth from world stockmarkets.

Investment Policies

– To provide a diversified portfolio of approximately 70-90 stocks in which theinvestment manager has a high degree of conviction.

A significant, global commitment to proprietary research is essential in generatinginvestment ideas. A strong partnership between the investment manager andanalysts is key to understanding valuations and developing conviction.

Investment Strategy

To provide superior long-term capital growth by investing in a high convictionportfolio of companies with strong valuation signals, significant profit growthpotential and an identifiable catalyst to unlock that potential, regardless of industry,region or size.

Gearing

A flexible, low cost £20 million borrowing facility is in place and available for theinvestment manager to utilise at times of low absolute valuation or for short termborrowing to avoid contingent investment decisions.

Benchmark

The Company’s benchmark is the MSCI All Countries World Index in sterling terms(total return with net dividends reinvested).

Capital Structure

At 31st December 2011, the Company’s issued share capital comprised 26,174,698ordinary shares of 25p each, including 232,270 shares held in Treasury.

Share Repurchase Policy

In order for the Company’s shares to trade at a relatively narrow discount, theCompany will repurchase its shares with the aim of maintaining an average discountof around 5% calculated with debt at par value. Any shares repurchased under thispolicy may be held in Treasury or cancelled. Shares held in Treasury will only bereissued at a premium to net asset value per share.

Management Company

The Company employs JPMorgan Asset Management (UK) Limited (‘JPMAM’ or‘the Manager’) to manage its assets.

JPMorgan Overseas Investment Trust plc. Half Year Report & Accounts 2011 1

Half Year PerformanceTotal returns (includes dividends reinvested)

–15.8%Return to shareholders1

–12.6%Return on net assets2

Financial Data31st December 30th June %

2011 2011 change

Shareholders’ funds (£’000) 194,867 231,827 –15.9

Number of shares in issue4 25,942,428 26,077,732 –0.5

Net asset value per share with debt at par value 751.2p 889.0p –15.5

Net asset value per share with debt at fair value5 751.2p 889.2p –15.5

Share price 712.3p 862.0p –17.4

Actual gearing factor6 97.4% 107.4%

Share price discount to net asset value per share7 (4.7)% (1.5)%

A glossary of terms and definitions is provided on page 15.

1Source: Morningstar.2Source: J.P. Morgan.3Source: MSCI. The Company’s benchmark is the MSCI All Countries World Index in sterling terms (total return with netdividends reinvested).4Excludes shares held in Treasury.5The fair value of the £200,000 debenture issued by the Company has been calculated using discounted cash flowtechniques using the yield on a long dated gilt plus a margin based on the 5 year average for the AA Barclays CorporateBond.6Actual gearing represents investments excluding holdings in liquidity funds, expressed as a percentage of net assets.7Ex-income. Source: Bloomberg.

–8.6%Benchmark return3

JPMorgan Overseas Investment Trust plc. Half Year Report & Accounts 20112

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 eurozonefinancial crisis reverberated across the world, coupled with a slow-down in economicgrowth around the world. During the six months reporting period to31st December 2011, the Company recorded a total return on net assetsof –12.6% compared with –8.6% total return of the benchmark, the MSCI All CountryWorld Index (in sterling terms). It is pleasing to note that markets have recoveredsomewhat in 2012 and the Company’s net asset value and share price have increasedby 10.8% and 11.8% respectively since the period end.

Although the Company gave back some of the outperformance over the six monthsreporting period, the long-term performance record against our benchmark at31st 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 returnreflects the widening of the Company’s share price discount to net asset value from1.5% at 30th June 2011 to 4.7% at 31st December 2011. During the six months, theCompany sold 40,000 shares from Treasury at modest premiums to net asset value.In line with the Company’s discount management policy, we also repurchased175,304 shares for holding into Treasury. The Board believes these actions have beensuccessful in reducing the volatility of the share price discount to net asset value.

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

In accordance with corporate governance practice, the Board has continued torefresh the Board. I am pleased to welcome Gay Collins who joined the Board on21st February 2012. Her breadth of knowledge and experience will prove valuable inBoard discussion. John Rennocks, who has served on the Board since 2001, intends toretire 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 ofidentifying companies with strong valuation signals and significant growth potentialto deliver superior returns over a longer-term horizon to our shareholders. Thisstrategy relies on JPMAM’s highly experienced global research team and the skills ofthe Investment Manager to select stocks which are well placed to trade throughperiods of challenging circumstances and to benefit when markets improve. As globalcentral banks continue to provide a measure of support for global growth, theoutlook for the second half of the Company’s financial year appears encouraging.

for and on behalf of the BoardSimon DaviesChairman 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 particularfocus on the Eurozone. These factors overwhelmed corporate fundamentals andthe MSCI All Country World index declined 8.6% in sterling terms with considerabledispersion across regions and sectors. For example, US equities outperformedContinental Europe by around 10 percentage points and financial sectors declinedmore than broader indices by a similar margin. Towards the end of 2011 investors’fears escalated over a disorderly default in Europe and the potential consequencesof 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 areseldom a fruitful environment for our investment process. During such times ourportfolios suffer on a relative basis as investors flock to short term safety at theexpense 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 theportfolio such as Royal Dutch Shell, ACE and Japan Tobacco shared many of the‘safety’ attributes while still being reasonably attractively valued with goodlong-term earnings potential relative to their peers. This combination of quality andvalue was becoming increasingly hard to find as 2011 progressed. Our observationis that it seldom pays to change dramatically the nature of a portfolio in anenvironment 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 termview and we believe that there are many positive fundamental factors today thatsupport the case for a disciplined valuation based investment approach.

Portfolio positioning

We have increased our position in a number of stocks where we have highconviction and which have performed poorly over the last six months. SchneiderElectric, for example, which is listed in France and is a global leader in electricalcomponents saw its shares hit by concerns over a short-term slow-down inEuropean operations. Schneider’s valuation largely ignored the company’s stronggrowth in emerging markets (around 30% of revenues) and its expansion into fastergrowing businesses such as energy efficiency and services. We have also added toour, perhaps controversial, holding in Citigroup as we believe its exposure to animproving US economy, a very impressive global emerging market operation(around 30% of revenues) and a much improved balance sheet deserves a highervaluation relative to many of its peers.

As above, many of the companies which we have added to in recent months haveconsiderable exposure to emerging markets, which remain an important source oflong-term growth potential. While our direct emerging market exposure has inchedup through new holdings in companies such as Novatek Microelectronics (Taiwanlisted electronic components manufacturer) and Ping An (Chinese listed providerof life insurance), relative valuations still lead us towards those companies with


exposure to emerging markets which are listed in developed markets. Bayer, forexample, is a European health care company which has made significantinvestments in China over many decades. Bayer stands poised to benefit fromgrowth in that market as it is far ahead of the local competition as well as havinga vastly superior valuation.

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

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

Investment Outlook

The political challenges of austerity in southern Europe are considerable, but manyinvestors have been hesitant to see that some progress has been made, for examplethrough the proposed structural reforms in Italy. Furthermore, the European CentralBank (ECB) has recently demonstrated through its three year funding of the bankingsystem that it is prepared to take exceptional measures to deal with exceptionalcircumstances. The outlook for the major European economies is perhaps not asbleak as is often imagined by the more febrile strategists that have recently cometo dominate the airwaves.

In addition to the more proactive stance from the ECB, the continuation of theUS Federal Reserve’s loose monetary policy and a wider global trend towards lowerinterest rates, economic data has, broadly, come through better than feared.US economic forecasts have risen and surveys suggest that, at this stage, Europe isnot collapsing. In China, too, data has been stronger than many expected and fearsof 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 errorsare elevated in these situations.

While much still lies in the balance, we are reassured by some visible progresstowards containing the fiendishly complex European sovereign debt issues.This creates the possibility that individual companies’ fundamentals will becomerelatively more important again, stocks with attractive valuations will outperformand the environment for active management becomes less hostile. As always, ourability to perform is determined by the quality of our research analysts and theinteraction between them and the portfolio management team. Despite recentheadwinds we remain committed to delivering strong long-term returns for ourinvestors.

Jeroen HuysingaInvestment Manager 29th February 2012

Investment Manager’s ReportcontinuedPerformance attribution for the sixmonths ended 31st December 2011

% %

Contributions to total returns

Benchmark return –8.6

Asset allocation –0.7Stock selection –3.8Gearing/cash effect –0.3Currency 0.2

Investment managercontribution –4.6

Portfolio total return –13.2

Management fee/other expenses –0.3Performance fee 0.9

Other effects 0.6

Return on net assets –12.6

Effect of increase in discount –3.2

Return to shareholders –15.8

Source: Xamin/JPMAM and Morningstar.

All figures are on a total return basis.

Performance attribution analyses howthe Company achieved its recordedperformance relative to its benchmarkindex.

A glossary of terms and definitions isprovided on page 15.


ValuationCompany Sector £’000 %1

Japan Tobacco Japan 5,258 2.7InterOil North America 5,221 2.7Associated British Foods United Kingdom 4,980 2.6Sodexo (France) Continental Europe 4,310 2.2ACE North America 4,158 2.1Royal Dutch Shell (Netherlands) Continental Europe 4,099 2.1United Health North America 3,982 2.0Union Pacific North America 3,942 2.0Citigroup North America 3,938 2.0InterContinental Hotels United Kingdom 3,907 2.0JPMorgan Emerging Markets Investment Trust Emerging Markets 3,808 2.0Bayer (Germany) Continental Europe 3,641 1.9Wells Fargo North America 3,604 1.9Teva Pharmaceutical Industries Continental Europe 3,461 1.8Shire United Kingdom 3,456 1.8BG United Kingdom 3,301 1.7Biogen Idec North America 3,115 1.6UPM-Kymmene (Finland) Continental Europe 3,089 1.6Carnival North America 3,088 1.6Covidien North America 3,057 1.6Occidental Petroleum North America 3,029 1.6Schoeller-Bleckmann Oilfield Services (Austria) Continental Europe 2,958 1.5Experian United Kingdom 2,943 1.5Carlsberg (Denmark) Continental Europe 2,866 1.5ABB (Switzerland) Continental Europe 2,838 1.4Resolution United Kingdom 2,799 1.4JX Holdings Japan 2,754 1.4Orix Japan 2,730 1.4American Express North America 2,730 1.4Telenor (Norway) Continental Europe 2,689 1.4Hon Hai Precision Industry (Taiwan) Developed Asia 2,648 1.4First Quantum Minerals North America 2,597 1.3Anheuser-Busch (Belgium) Continental Europe 2,574 1.3CBS North America 2,525 1.3Snam Rete Gas (Italy) Continental Europe 2,520 1.3KDDI Japan 2,494 1.3Nokian Renkaat (Finland) Continental Europe 2,482 1.3Cosan (Brazil) Emerging Markets 2,419 1.2Amazon North America 2,416 1.2Centrica United Kingdom 2,416 1.2

List of Investmentsat 31st December 2011


ValuationCompany Sector £’000 %1

Ericsson (Sweden) Continental Europe 2,335 1.2Fluor North America 2,318 1.2Paccar North America 2,294 1.2Tyco International (Switzerland) Continental Europe 2,291 1.2Nippon Sheet Glass Japan 2,252 1.2Petrofac United Kingdom 2,199 1.1Lowes North America 2,178 1.1Taylor Wimpey United Kingdom 2,146 1.1Petropavlosk United Kingdom 2,121 1.1Solvay (Belgium) Continental Europe 2,074 1.1Humana North America 2,042 1.0Ping An Insurance Developed Asia 2,007 1.0Mitsubishi Electric Japan 1,982 1.0Capital One Financial North America 1,967 1.0Kansas City Southern North America 1,965 1.0Continental (Germany) Continental Europe 1,837 0.9Henkel (Germany) Continental Europe 1,806 0.9Kuhne & Nagel (Switzerland) Continental Europe 1,793 0.9Schneider Electric (France) Continental Europe 1,742 0.9VF North America 1,729 0.9APR Energy United Kingdom 1,678 0.9Tullow Oil United Kingdom 1,630 0.8Cairn Energy United Kingdom 1,629 0.8Lamprell United Kingdom 1,606 0.8JPMorgan Indian Investment Trust Emerging Markets 1,485 0.7Bouygues (France) Continental Europe 1,362 0.7African Bank Investments Emerging Markets 1,108 0.6Stora Enso (Finland) Continental Europe 1,053 0.5Lanxess (Germany) Continental Europe 1,042 0.5JPMorgan Japan Smaller Companies Trust Japan 972 0.5Carefusion North America 959 0.5AerCap (Netherlands) Continental Europe 906 0.5Lloyds Banking United Kingdom 731 0.4Kinross Gold North America 600 0.3Hamburger Hafen und Logistik (Germany) Continental Europe 415 0.2Homeserve United Kingdom 348 0.2Erste Group Bank (Austria) Continental Europe 333 0.2JPM Sterling Liquidity Fund Liquidity Fund 3,250 1.7Net current assets 2,040 1.0

Total 195,067 100.0

1Based on total assets less current liabilities of £195.1m.

List of Investments continued


Portfolio Analyses

31st December 2011 30th June 2011Active Active

Portfolio Benchmark Position Portfolio Benchmark PositionGeographical Analysis % % % % % %

North America 32.5 50.3 (17.8) 28.1 47.3 (19.2)Continental Europe 29.0 15.7 13.3 35.5 17.9 17.6 United Kingdom 19.4 8.6 10.8 21.6 8.3 13.3 Japan 9.5 7.9 1.6 11.7 7.8 3.9 Emerging Markets 4.5 12.3 (7.8) 4.5 13.4 (8.9)Developed Asia 2.4 5.2 (2.8) 5.0 5.3 (0.3)

Total equities 97.3 100.0 — 106.4 100.0 —

Liquidity Fund 1.7 — 1.7 1.5 — 1.5Net current assets/(liabilities) 1.0 — 1.0 (7.9) — (7.9)

Total 100.0 100.0 100.0 100.0

Based on total assets less current liabilities of £195.1m (30th June 2011: £233.9m).

31st December 2011 30th June 2011Active Active

Portfolio Benchmark Position Portfolio Benchmark PositionSector Analysis % % % % % %

Financials 14.7 18.5 (3.8) 19.4 20.2 (0.8)Industrials 14.6 10.5 4.1 16.6 11.0 5.6 Energy 14.6 12.1 2.5 11.4 11.8 (0.4)Consumer Discretionary 13.6 10.0 3.6 16.4 10.1 6.3 Health Care 12.2 9.3 2.9 7.0 8.6 (1.6)Consumer Staples 10.2 10.7 (0.5) 8.8 9.5 (0.7)Materials 6.4 8.0 (1.6) 12.5 9.1 3.4 Investment Companies 3.2 — 3.2 3.2 — 3.2 Telecommunication Services 2.7 4.8 (2.1) 3.0 4.6 (1.6)Information Technology 2.6 12.2 (9.6) 5.5 11.3 (5.8)Utilities 2.5 3.9 (1.4) 2.6 3.8 (1.2)Liquidity Fund 1.7 — 1.7 1.5 — 1.5 Net current assets/(liabilities) 1.0 — 1.0 (7.9) — (7.9)

Total 100.0 100.0 100.0 100.0

Based on total assets less current liabilities of £195.1m (30th June 2011: £233.9m).


Income Statementfor the six months ended 31st December 2011

(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended31st December 2011 31st December 2010 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 — 5,232Other 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 47,655Management 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 ordiscontinued in the period.

The ‘Total’ column of this statement is the profit and loss account of the Company and the ‘Revenue’ and ‘Capital’ columnsrepresent supplementary information prepared under guidance issued by The Association of Investment Companies. The Totalcolumn 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 inShareholders’ Funds

Called up CapitalSix months ended share Share redemption Capital Revenue31st 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 17,986 231,827Repurchase of shares into Treasury — — — (1,230) — (1,230)Re-issue of shares from Treasury — 45 — 243 — 288Net (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 CapitalSix months ended share Share redemption Capital Revenue31st 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 17,585 186,913Net return on ordinary activities — — — 41,750 1,659 43,409Dividend appropriated in the period — — — — (3,345) (3,345)

At 31st December 2010 6,544 — 27,401 177,133 15,899 226,977

Called up CapitalYear ended share Share redemption Capital Revenue30th 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 17,585 186,913Re-issue of shares from Treasury — 970 — 2,130 — 3,100Net return on ordinary activities — — — 41,413 3,744 45,157Dividend appropriated in the year — — — — (3,343) (3,343)

At 30th June 2011 6,544 970 27,401 178,926 17,986 231,827


Balance Sheetat 31st December 2011

(Unaudited) (Unaudited) (Audited)31st December 2011 31st December 2010 30th June 2011

£’000 £’000 £’000

Fixed assetsEquity investments held at fair value through

profit or loss 189,777 242,410 248,913Investments 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 assetsFinancial assets: derivative financial instruments 2,384 3,590 3,027Debtors 283 397 1,501Cash and short term deposits 168 74 875

2,835 4,061 5,403Creditors: 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 chargesPerformance fee — (2,720) (1,884)

Net assets 194,867 226,977 231,827

Capital and reservesCalled up share capital 6,544 6,544 6,544Share premium 1,015 — 970Capital redemption reserve 27,401 27,401 27,401Capital reserves 144,356 177,133 178,926Revenue reserve 15,551 15,899 17,986

Total equity shareholders’ funds 194,867 226,977 231,827

Net assetvalue per share (note5) 751.2p 882.3p 889.0p

Company registration number: 24299.


Cash Flow Statementfor 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 82Net 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 3,108Loans 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 875Debt 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 Accountsfor 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’sauditors.

The figures and financial information for the year ended 30th June 2011 are extracted from the latest published accounts ofthe Company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar ofCompanies and included the report of the auditors which was unqualified and did not contain a statement under eithersection 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 theStatement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ datedJanuary 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 yearended 30th June 2011.

3. Taxation

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

4. Return/(loss) per share



Return/(loss) per share is based on the following:Revenue return 1,091 1,659 3,744Capital (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 25,799,741Revenue return per share 4.18p 6.45p 14.51pCapital (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 ordinaryshares 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



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 425Overseas 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


Interim Management Report

The Company is required to make the following disclosures inits half year report.

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Companyhave not changed and fall into the following broadcategories: investment and strategy; market; accounting,legal and regulatory; corporate governance and shareholderrelations; operational; and financial. Information on each ofthese areas is given in the Business Review within the AnnualReport and Accounts for the year ended 30th June 2011.

Related Parties Transactions

During the first six months of the current financial year, notransactions with related parties have taken place which havematerially affected the financial position or the performance ofthe Company during the period.

Directors’ Responsibilities

The Board of Directors confirms that, to the best of itsknowledge:

(i) the condensed set of financial statements contained withinthis half year report has been prepared in accordance withthe Accounting Standards Board’s Statement ‘Half-YearlyFinancial Reports’; and

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

For and on behalf of the Board

Simon DaviesChairman 29th February 2012


Glossary of Terms and Definitions

Return to shareholders Total return to the investor, on a mid-market price tomid-market price basis, assuming that all dividends receivedwere reinvested, without transaction costs, into the shares ofthe Company at the time the shares were quoted ex-dividend.

Return on net assets Total return on net asset value (‘NAV’) per share, on a bid valueto bid value basis, assuming that all dividends paid out by theCompany were reinvested into the shares of the Companyat the NAV per share at the time the shares were quotedex-dividend.

In accordance with industry practice, dividends payable whichhave been declared but which are unpaid at the balance sheetdate are deducted from the NAV per share when calculatingthe total return on net assets.

Benchmark return Total return on the benchmark, on a mid-market value tomid-market value basis, assuming that all dividends receivedwere reinvested into the shares of the underlying companiesat the time the shares were quoted ex-dividend.

The benchmark is a recognised index of stocks which shouldnot be taken as wholly representative of the Company’sinvestment universe. The Company’s investment strategy doesnot ‘track’ this index and consequently, there may be somedivergence between the Company’s performance and that ofthe benchmark.

Actual gearing factor Investments, excluding holdings in liquidity funds, expressed asa percentage of shareholders’ funds. This shows the effect ofgearing on the net asset value per share if the market value ofthe portfolio were to increase by 100%.

Share price discount/premium to net asset value (‘NAV’) per shareIf the share price of an investment trust is lower than the NAVper share, the shares are said to be trading at a discount. Thediscount is shown as a percentage of the NAV per share. Theopposite of a discount is a premium. It is more common for aninvestment trust’s shares to trade at a discount than at apremium.

Active position The active position shows the difference between theCompany’s holding of an individual stock or sector comparedwith the stock or sector’s weighting in the Company’sbenchmark. A positive number indicates an active decision bythe Manager to own more of (i.e. be overweight) a particularstock or sector versus the benchmark and a negative numberindicates a decision to hold less of (i.e. be underweight) aparticular stock or sector versus the benchmark.

Performance attribution definitions:

Asset allocation Measures the impact of allocating assets differently from thosein the benchmark, via the portfolio’s weighting in differentcountries, sectors or asset types.

Stock selection Measures the effect of investing in securities to a greater orlesser extent than their weighting in the benchmark, or ofinvesting in securities which are not included in thebenchmark.

Gearing/cash effect Measures the impact on returns of borrowings or cashbalances on the Company’s relative performance.

Currency Measures the impact of investing in different currencies on theperformance which is measured in sterling terms.

Management fee/other expenses The payment of fees and expenses reduces the level of totalassets, and therefore has a negative effect on relativeperformance.

Performance feeMeasures the effect of a performance fee charge or writeback.

HistoryThe Company was formed in 1887. The Company was a general investment trustuntil 1982, when it adopted its current objective. The current name was adopted in2006.

The Company is managed by JPMorgan Asset Management (UK) Limited, and thepresent named investment manager, Jeroen Huysinga, is responsible for theportfolio.

DirectorsSimon Davies (Chairman)John RennocksJonathan CareyGay CollinsNigel Wightman

Company NumbersCompany registration number: 24299Stock Exchange SEDOL Number: 0914327Bloomberg Code: JMO LNReuters Code: JMO.L

Market InformationThe Company’s net asset value (‘NAV’) per share is published daily, via the LondonStock Exchange. The Company’s shares are listed on the London Stock Exchangeand the New Zealand Stock Exchange.

The Company’s shares may be dealt in directly through a stockbroker orprofessional adviser acting on an investor’s behalf. They may also be purchasedand held through the J.P. Morgan Investment Account, J.P. Morgan ISA and J.P.Morgan SIPP. These products are all available on the online wealth managerservice, J.P. Morgan WealthManager+ available atwww.jpmorganwealthmanagerplus.co.uk

Websitewww.jpmoverseas.co.uk

Share TransactionsThe Company’s shares may be dealt in directly through a stockbroker orprofessional adviser acting on an investor’s behalf. They may also be purchasedand held through the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan SIPP. These products are all available on the online wealth managerservice, J.P. Morgan WealthManager+ available atwww.jpmorganwealthmanagerplus.co.uk

Manager and Company SecretaryJPMorgan Asset Management (UK) Limited

Company’s Registered OfficeFinsbury Dials20 Finsbury StreetLondon EC2Y 9AQTelephone number: 020 7742 6000

For company secretarial and administrative matters, please contact Divya Amin.

CustodianJPMorgan Chase Bank N.A.125 London WallLondon EC2Y 5AJ

UK RegistrarsEquiniti LimitedReference 1103, Aspect House Spencer Road Lancing West Sussex BN99 6DA Telephone: 0871 384 2330 Overseas helpline: +44 121 415 7047

Notifications of changes of address and enquiries regarding share certificates ordividend cheques should be made in writing to the Registrar quoting reference1103. Registered shareholders can obtain further details on individual holdings onthe internet by visiting www.shareview.co.uk.

New Zealand Registrars Computershare Investor Services Limited Private Bag 92119 Auckland 1020 Level 2 159 Hurstmere Road Takapuna North Shore City New Zealand. Telephone: 09 522 0022

Notifications of changes of address and enquiries regarding certificates ordividend cheques should be made in writing to the Registrars.

Independent AuditorsPricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors7 More London RiversideLondon SE1 2RT

UK Brokers Winterflood Securities LimitedThe Atrium Building Cannon Bridge 25 Dowgate Hill London EC4R 2GA Telephone: 020 3100 0000

New Zealand Brokers First NZ Capital Securities P.O. Box 396 Wellington New Zealand Telephone: 0800 800 968 (NZ Toll Free) Please contact Peter Irwin

Savings Product AdministratorsFor queries on the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan SIPP, see contact details on the back cover of this report.

Information about the Company

Financial CalendarFinancial year end 30th JuneHalf year results announced FebruaryFinal results announced SeptemberFinal dividend on shares NovemberInterest payment on 4.5% perpetual debenture stock 1st January, 1st JulyAnnual General Meeting OctoberInterim Management Statements May and November

A member of the AIC


J.P. Morgan HelplineFreephone 0800 20 40 20 or +44 (0)20 7742 9995

Your telephone call may be recorded for your security

www.jpmoverseas.co.uk

Documents

Half Year Report JPMorgan Overseas Investment Trust plc · global stock markets suffered a tumultuous latter half in 2011 as the eurozone ... (Chinese listed provider oflife insurance),