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Half Year Report2012JPMorgan Elect plc

Half Year Report & Accounts for the six months ended 29th February 2012

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Features

Contents

About the Company

1 Chairman’s Statement

Managed Growth Share Class

4 Half Year Performance 5 Investment Managers’ Report 8 List of Investments9 Geographical Analysis10 Income Statement 11 Balance Sheet

Managed Income Share Class

12 Half Year Performance 13 Investment Managers’ Report 17 List of Investments19 Sector Analysis20 Income Statement21 Balance Sheet

Managed Cash Share Class

22 Half Year Performance 23 Investment Managers’ Report 24 List of Investments24 Portfolio Analysis25 Income Statement26 Balance Sheet

Accounts

27 Income Statement28 Reconciliation of Movements in

Shareholders’ Funds29 Balance Sheet30 Cash Flow Statement31 Notes to the Accounts

Shareholder Information

34 Interim Management Report35 Capital Structure and Conversion

between Share Classes36 Glossary of Terms and Definitions37 Information about the Company

JPMorgan Elect plc (the ‘Company’) adopted its present structure as a result of thecombination of JPMorgan Fleming Managed Growth plc and JPMorgan FlemingManaged Income plc and the subsequent capital reorganisation. The Company’sname reflects the capital structure and the investment flexibility it offers toshareholders. There are three share classes, each with distinct investmentpolicies, objectives and underlying investment portfolios. Each share class islisted separately and traded on the London Stock Exchange. This capital structuremeans that shareholders may benefit from greater investment flexibility in atax-efficient manner.

Objectives

Managed Growth – Long term capital growth from investing in a range ofinvestment trusts and open-ended funds managed principally by JPMorgan AssetManagement.

Managed Income – Growth of income with potential for long term capital growthby investing in equities, investment trusts and fixed income securities.

Managed Cash – Preservation of capital with a yield based on short term interestrates by investing in a range of liquidity funds and short dated AAA-rated UKgovernment securities/G7 government securities hedged into sterling.

Based on its return characteristics and the costs incurred in transacting in itsshares, an investment in Managed Cash should only be considered by existingholders of Managed Growth and/or Managed Income shares who wish to switchinto Managed Cash on the designated quarterly conversion dates.

Benchmarks

Managed Growth – A composite comprising 50% FTSE All-Share Index and 50%FTSE World Index (ex-UK).

Managed Income – A composite comprising 85% FTSE All-Share Index and 15%Barclays Capital Global Corporate Bond Index (hedged) in sterling terms. Prior to1st March 2009, the benchmark was a composite comprising 85% FTSE 350 HighYield Index and 15% Merrill Lynch 5-10 year Sterling Corporate Bond Index.

Managed Cash – There is no benchmark for this portfolio.

Capital Structure

Managed Growth – At 29th February 2012, the Managed Growth share classcomprised 39,968,841 ordinary shares.

Managed Income – At 29th February 2012, the Managed Income share class comprised50,147,100 ordinary shares.

Managed Cash – At 29th February 2012, the Managed Cash share class comprised14,571,412 ordinary shares.

Conversions

Shareholders in any of the three share classes are able to convert some or all of theirshares into shares of the other classes on a quarterly basis without such conversionbeing treated, under current law, as a disposal for UK capital gains tax purposes.

Management Company

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

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JPMorgan Elect Trust plc. Half Year Report & Accounts 2012 1

I am pleased to report that all three classes have delivered positive returns overthe six months to 29th February 2012. The figures relative to benchmarksshowed Managed Growth shares underperforming and Managed Income in line;Managed Cash continued to register positive performance in very difficultconditions.

The investment managers’ reports which follow give a detailed review of marketand portfolio performance, together with a market outlook for each share class.

Managed Growth

PerformanceOver the six months to 29th February 2012 the Managed Growth portfolio delivereda total return on net assets of 8.7%. This represents a 1.6 percentage pointunderperformance of the composite benchmark (comprised equally of the FTSEAll-Share and FTSE World (ex-UK) indices) which rose 10.3% over the period. Theshare price total return was 8.3%, reflecting a widening of the discount over theperiod. Asset allocation accounted for most of the underperformance, which wasfurther impacted by discount widening of our closed end funds.

DividendsTwo quarterly dividends totalling 3.45p have been declared in respect of the halfyear. A third quarterly dividend will be paid on 22nd June 2012 to shareholders onthe register on 25th May 2012. The amount of the dividend payment will be notifiedto shareholders in May 2012. Due to the frequency and timing of distributions fromthe underlying investments, the quarterly dividends are unlikely to be of equalamounts.

Dividends on the Managed Growth shares are paid quarterly in March, June,September and December each year.

Share CapitalIn the six months to 29th February 2012, 723,859 Managed Growth shares wererepurchased for cancellation. As is the case for all three share classes, these shareswere repurchased at a discount to net asset value, thereby benefiting continuingshareholders. Since the period end, the Company has repurchased a further379,736 shares for cancellation.

Managed Income

PerformanceThe Managed Income portfolio produced a total return on net assets of 9.7% overthe six months to 29th February 2012. This represents a 0.2 percentage pointoutperformance of the composite benchmark (comprised of 85% FTSE All-ShareIndex and 15% Barclays Capital Global Corporate Bond Index (hedged) in sterlingterms) which returned 9.5%. As there was only limited movement in the discount,the share price total return mirrored the return on net assets delivering 9.7%.

Chairman’s Statement

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JPMorgan Elect plc. Half Year Report & Accounts 20122

DividendsTwo quarterly dividends totalling 1.85 pence per share have been declared inrespect of the half year. A third quarterly dividend will be paid on 22nd June 2012to shareholders on the register on 25th May 2012. The amount of the dividendpayment will be notified to shareholders in May 2012. Due to the frequency andtiming of distributions from the underlying investments, the quarterly dividends areunlikely to be of equal amounts.

The Board continues to monitor closely the earnings generated by this portfolio.Current estimates indicate that the portfolio will earn sufficient income to maintainlast year’s dividend of 3.35 pence per share, without the requirement to distributefrom the portfolio’s revenue reserve. It is the intention of the Board to return to apattern of annual increases when market conditions permit.

Dividends on the Managed Income shares are paid quarterly in March, June,September and December each year.

Share CapitalIn the six months to 29th February 2012, a total of 585,029 Managed Incomeshares were repurchased for cancellation. Since the period end, the Company hasrepurchased a further 326,693 shares for cancellation.

Managed Cash

PerformanceThe Managed Cash portfolio produced a total return on net assets of +0.2% overthe six months to 29th February 2012. The total return to shareholders was +0.3%.In accordance with its investment objective to preserve capital and deliver a yieldbased on short term interest rates, the assets of the Managed Cash portfolioremain invested in sterling liquidity funds with a credit rating of AAA (orequivalent).

DividendsInterest rates remain at historically low levels, which means that the Directors haveto balance the frequency of payments against the cost of distribution. Over the lastyear a sufficient reserve has been accumulated to enable the payment of adividend of 0.25 pence per share. Directors expect to be able to distribute a furtherdividend to shareholders for the six months ended 31st August 2012.

Share CapitalIn the six months to 29th February 2012, a total of 51,150 Managed Cash shareswere repurchased for cancellation. Since the period end, the Company hasrepurchased a further 764,386 shares for cancellation.

Conversion Opportunities

Shareholders are reminded that they are able to convert all or part of any class ofholding into any other class at the end of February, May, August and November,each year. The next opportunity to convert is on 31st May 2012. Details of how toconvert can be found on page 35 of this report and on the Company’s website,www.jpmelect.co.uk.

Chairman’s Statement continued

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Communication with shareholders

I always welcome comments from shareholders either in writing or via theCompany’s website. Please address your letters to me at the Company’s registeredoffice, or follow the ‘Ask the Chairman’ link on the Company’s website.

Directors

Nigel Sidebottom, the extremely effective Chairman of the Audit Committee, hasbeen a Director since 1999 and will be retiring from the Board in July this year.He has proved to be a most valuable member of your Board and aknowledgeable committee chairman whose contribution to the Company hasbeen invaluable.

The Board has a detailed plan of succession in place and during the reportingperiod announced the appointment of two new non-executive Directors. AlanHodson (appointed 1st January 2012) was previously Global Head of Equities atUBS Investment Bank and James Robinson (appointed 1st April 2012) was ChiefInvestment Officer, Investment Trusts, and Director of Hedge Funds at HendersonGlobal Investors. Mr Robinson will be assuming the role of Audit CommitteeChairman following Mr Sidebottom’s retirement. A recruitment consultancy wasengaged to assist with these appointments and the Board considered issues suchas diversity and balance of skills in its selection process.

To complete the current succession plan, I will be retiring at the Company’s AnnualGeneral Meeting to be held in December this year and the Board has approved theappointment of Robert Ottley as my successor.

Simon Miller

Chairman 20th April 2012

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+8.3%Return to shareholders1

3.45pDividend4

(2011: 2.80p)

+8.7%Return on net assets2

+10.3%Benchmark return3

Financial Data 29th February 31st August % 2012 2011 change

Shareholders’ funds (£’000) 168,256 159,358 +5.6

Number of shares in issue 39,968,841 40,920,311 –2.3

Net asset value per share 421.0p 389.4p +8.1

Share price 410.0p 382.0p +7.3

Share price discount to net asset value per share 2.6% 1.9%

A glossary of terms and definitions is provided on page 36.

Half Year Performance

Managed Growth Share Class

The above are total returns and include dividends reinvested.

1Source: Morningstar.2Source: J.P. Morgan.3Source: FTSE. The Managed Growth benchmark is a composite comprising 50% FTSE All-Share Index & 50% FTSEWorld Index (ex-UK).4Represents the first and second quarterly dividends. With effect from 1st September 2011, dividends are usuallypaid quarterly in March, June, September and December. Prior to that date, dividends were paid on this shareclass in June and December.

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Katy Thorneycroft

Jonathan Lowe

Investment Managers’ Report

Market Review

The six months to the end of February 2012 was a positive period ultimately forequity markets, although most of the returns came in the first 2 months of 2012.

The beginning of the period saw investors focus on what policy makers would beable to do to solve the Eurozone solvency and liquidity crisis, in particular lookingat the banks and Greece. There was also a divergence between the levels of slowereconomic growth seen in Europe and the relatively resilient numbers from the US,as well as slowing growth in China. These concerns meant that markets werevolatile and range bound as sentiment changed.

The positive news came latterly. The US continued to show signs of a sustainablerecovery, in particular with positive employment numbers, and in Europe theimpact of the Long Term Refinancing Operations has provided a much-neededsupport to the banking system in the short and medium term. Markets respondedfavourably to improved sentiment and easy monetary policy globally with globalequities rising by 8% in the first 2 months of 2012.

The US was the best performing region, both in US dollars (+13%) and in sterling(+16%) as the dollar strengthened. UK equities rose by just over 10% in the period.Sterling investors saw lower, but still positive, returns from Asia and EmergingMarkets (7% and 8% respectively) and also from Japan (+6%) and Europe, (+5%)exacerbated by yen and euro weakness.

Performance

The Managed Growth portfolio delivered a return on net assets of 8.7% over thesix months to the end of February. This was behind the benchmark return of 10.3%.The discount to net asset value on the Managed Growth shares widened slightly,delivering a shareholder return of 8.3%.

Total returns to 29th February 2012

Six One Two Three Five Ten months year years years years years

NAV return (%) 8.7 –0.2 20.6 76.5 13.5 82.9

Benchmark return (%) 10.3 1.0 16.8 72.8 20.8 67.5

FTSE All-Share Index (%) 10.3 1.5 18.8 75.0 14.2 74.1

FTSE World (ex UK) Index (%) 10.3 0.5 14.9 70.6 27.3 61.0

Source: Datastream/J.P. Morgan.

Our regional positioning detracted from returns over the period as we wereoverweight Asia and Emerging Markets. We saw some benefit from our overweightin the US and underweight in Europe. We estimate that asset allocation detractedapproximately 0.95% from the portfolio return relative to the benchmark.

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Fund performances from the JPMorgan range were positive in general, withJPMorgan UK Dynamic, JPMorgan Claverhouse Investment Trust, The MercantileInvestment Trust, JPMorgan US Growth and JPMorgan US Select all outperformingtheir benchmarks. JPMorgan American Investment Trust was slightly behind itsbenchmark return, and JPMorgan Asian Investment Trust was substantially behind.The following third party funds are particularly worth highlighting for havingoutperformed their own benchmarks over the period: BlackRock World MiningInvestment Trust, Biotech Growth Investment Trust and Jupiter EuropeanOpportunities Investment Trust. More disappointing were the performances ofHansa Trust, RCM Technology Investment Trust and Artemis Alpha InvestmentTrust.

Looking at the broad investment trust sector, as represented by the Datastreamuniverse, discounts widened in general over this period. The more liquid trusts inthe FTSE Equity Investment Instruments range on average saw no change over theperiod. We estimate that the impact of widening discounts on the Managed Growthportfolio was approximately 40bps of negative performance. The biggest negativemoves were seen for Artemis Alpha, The Mercantile and Schroder UK Growthinvestment trusts. All these trusts are in the UK Growth sector. On the positive side,BlackRock World Mining, JPMorgan US Smaller Companies and Jupiter EuropeanOpportunities investment trusts all saw substantial tightening of their discounts.

Portfolio Review

At the end of February 2012 the Managed Growth portfolio was invested 54% inJPMorgan managed investment trusts, 23% in JPMorgan managed open-endedfunds and 22% in investment trusts managed by third party managers.

The biggest transactions over the period were as follows. We sold Fidelity SpecialValues in September as we felt that the discount had been trading tighter thanperhaps the net asset value performance deserved. We increased our position inJPMorgan UK Dynamic with the proceeds, which has outperformed its benchmarkand has not suffered any discount volatility as it is an open-ended fund. We addedto JPMorgan US Growth in September and November in order to increase our USexposure. We sold our position in Utilico Investment Trust between November andFebruary, and reduced our exposure to BlackRock World Mining Investment Trustas the NAV rallied and discount tightened in. Finally, we reduced our Europeanexposure by selling small amounts of JPMorgan European Growth, JPMorganEuropean Smaller Companies and Jupiter European Opportunities investmenttrusts.

Outlook

At the end of the Company’s financial year we said that we expected continuedvolatility in financial markets but that catalysts for a more sustained equity marketrally would include a plan to restore financial stability in Europe, positive economicsurprises, signs that corporates were increasing in confidence and using their cashas well as evidence that China was slowing gently. We have seen some evidence ofall of these factors and equity markets have duly rallied. However, as we write now,the MSCI World Index is up 20% from its September lows and we wonder whetherwe are due a pause, or pull-back in the short term.

Investment Managers’ Reportcontinued

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Looking further forward we can still see valuation support for equities despitethe recent re-rating, so assuming that we continue to see a modest GDP growthbackdrop and easy monetary policy we would remain cautiously positive onequities as an asset class for the rest of our financial year, even if we see somereversal in the short term.

Within the investment trust universe, we continue to see income oriented strategiestrading expensively to net asset values as investors look for yield in a lower growthenvironment. While of course we benefit from a number of our investment trustholdings paying an attractive and growing dividend, we have the flexibility in theManaged Growth portfolio to look at some of the cheaper sectors of the market.This means we are continuing to see opportunities to invest at reasonablevaluations. We see some upcoming regulatory changes which may be beneficial tothe investment trust sector, such as increased flexibility in how dividends can bepaid and the much talked about Retail Distribution Review. While the impact of theproposals is not clear yet, we believe that they will be neutral at worst and positiveat best.

Katy ThorneycroftJonathan LoweInvestment Managers 20th April 2012

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Value Company Country Sector £’000 %

JPMorgan UK Dynamic (‘A’ shares)1,2 18,157 10.8JPMorgan Claverhouse 17,319 10.3JPMorgan American 15,708 9.3JPMorgan US Select Equity (‘A’ shares)1,2 10,319 6.1JPMorgan US Growth (‘A’ shares)1,2 10,294 6.1The Mercantile 8,345 5.0JPMorgan Asian3 7,909 4.7JPMorgan Smaller Companies 6,685 4.0JPMorgan Emerging Markets3 6,619 3.9JPMorgan Japanese 6,212 3.7JPMorgan European (Growth shares) 6,097 3.6Hansa Trust (‘A’ non-voting shares) 5,205 3.1BlackRock World Mining 4,263 2.5Finsbury Growth & Income 4,214 2.5Biotech Growth 4,073 2.4JPMorgan European Smaller Companies 3,738 2.2RCM Technology3 3,612 2.2JPMorgan US Smaller Companies 3,359 2.0Impax Environmental Markets 2,398 1.4Edinburgh Worldwide 2,363 1.4JPMorgan Income & Capital (Ordinary shares) 2,307 1.4Jupiter European Opportunities 2,188 1.3Artemis Alpha3 2,144 1.3Schroder UK Growth 2,074 1.2BlackRock Frontier 1,559 0.9JPMorgan Brazil3 1,307 0.8JPMorgan Chinese3 1,271 0.8Ecofin Water & Power Opportunities 1,250 0.8JPMorgan Japan Smaller Companies3 1,242 0.7Edinburgh Dragon 1,240 0.7JPMorgan Indian 1,226 0.7JPMorgan Russian Securities 770 0.5JPMorgan Overseas 528 0.3JPMorgan Income & Growth (Units) 340 0.2JPMorgan Income & Growth (Capital shares) 272 0.2

Total investments 166,607 99.0

Net current assets 1,649 1.0

Total assets less current liabilities 168,256 100.0

1Unlisted investment.2Represents a holding in an Open Ended Investment Company (‘OEIC’) or a Société d’Investissement à Capital Variable (‘SICAV’).3Both ordinary and subscription shares held.

List of Investmentsat 29th February 2012

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Geographical Analysis(on a look through basis)

29th February 2012 31st August 2011 Portfolio Benchmark Portfolio Benchmark %1 % %1 %

UK 40.0 49.6 41.3 50.0

North America 28.6 27.6 27.0 26.9

Emerging Markets and others 8.5 4.6 9.8 5.4

Continental Europe 8.2 9.9 8.8 9.8

Asia (excluding Japan) 9.2 3.9 6.0 3.4

Japan 4.5 4.4 5.2 4.5

Net current assets 1.0 — 1.9 —

Total 100.0 100.0 100.0 100.0

1Based on total assets less current liabilities of £168.3m (2011: £159.4m).

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(Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 29th February 2012 28th February 2011 31st August 2011 Revenue Capital Total Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Gains on investments held at fairvalue through profit or loss — 12,151 12,151 — 30,207 30,207 — 14,297 14,297

Income from investments 1,626 — 1,626 1,429 — 1,429 2,747 — 2,747Other interest receivable and similarincome 5 — 5 4 — 4 10 — 10

Gross return 1,631 12,151 13,782 1,433 30,207 31,640 2,757 14,297 17,054Management fee (42) (125) (167) (57) (172) (229) (110) (329) (439)Other administrative expenses (207) — (207) (211) — (211) (440) — (440)

Net return on ordinary activitiesbefore taxation 1,382 12,026 13,408 1,165 30,035 31,200 2,207 13,968 16,175

Taxation credit 7 — 7 14 — 14 3 — 3

Net return on ordinary activitiesafter taxation 1,389 12,026 13,415 1,179 30,035 31,214 2,210 13,968 16,178

Return per Managed Growth share 3.42p 29.61p 33.03p 2.81p 71.58p 74.39p 5.31p 33.55p 38.86p

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 Managed Growth pool of assets and the ‘Revenue’ and‘Capital’ columns represent supplementary information.

Income Statementfor the six months ended 29th February 2012

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(Unaudited) (Unaudited) (Audited) 29th February 28th February 31st August 2012 2011 2011 £’000 £’000 £’000

Fixed assets Investments held at fair value through profit or loss 166,607 176,225 156,306

Current assets Debtors 512 457 376Cash and short term deposits 1,800 1,862 2,768

2,312 2,319 3,144Creditors: amounts falling due within one year (663) (451) (92)

Net current assets 1,649 1,868 3,052

Total assets less current liabilities 168,256 178,093 159,358

Net assets 168,256 178,093 159,358

Net asset value per Managed Growth share 421.0p 427.9p 389.4p

Balance Sheetat 29th February 2012

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Managed Income Share Class+9.7%Return to shareholders1

1.85pDividend4

(2011: 1.85p)


+9.5%Benchmark return3

Financial Data29th February 31st August %

2012 2011 change


Number of shares in issue 50,147,100 50,446,078 –0.6

Net asset value per share 82.2p 76.9p +6.9

Share price 80.25p 75.0p +7.0




1Source: Morningstar.2Source: J.P. Morgan.3Source: Morningstar/Bloomberg. The Managed Income benchmark is a composite comprising 85% FTSE All-ShareIndex and 15% Barclays Capital Global Corporate Bond Index (hedged) in sterling terms.4Represents two quarterly dividends. Dividends are usually paid quarterly in March, June, September and December.

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John Baker

Sarah Emly


Market Review

Overall, the UK stock market performed well in the six months to 29th February 2012,with the FTSE All-Share returning 10.3%. Share prices were initially volatile asinvestor sentiment was dominated by fears surrounding the European debt crisis.From late December, the UK market experienced a strong rally, reflecting thesignificant progress made in the euro crisis and improving domestic economic data.

Corporate bonds were also hurt initially by fears of sovereign debt contagion,but spreads ended the period tighter as risk appetite improved after Europeanauthorities took significant measures to stem the Eurozone debt crisis and globaleconomic data showed signs of improvement. Against this backdrop, the BarclaysCapital Global Corporate Bond Index returned 4.8% in sterling terms.

An escalation in the European sovereign debt crisis buffeted the UK market in the firsthalf of the period. Initially, markets suffered from concerns that Greece was headedfor a damaging debt default that threatened contagion to other highly indebtedperipheral Eurozone countries. By mid November bond yields in Italy and Spain hadspiked to levels widely believed to be unsustainable and the future of the euro wascalled into question.

At the European Union (EU) summit in December, most members of the 27-nationbloc agreed to increase fiscal coordination and to be more disciplined in their effortsto reduce national debt. Perhaps more importantly, the European Central Bank (ECB)provided a major boost to investor confidence by offering unlimited three-year loansto the region’s banks and loosening collateral eligibility rules. The EUR 1 trillion ECBfunding programme demonstrably eased fears of an imminent collapse either of aEuropean bank or even of the euro itself.

At home, the sovereign debt crisis was compounded by weak economic data.Fourth-quarter GDP growth came in worse than expected, shrinking by 0.2% quarteron quarter (subsequently revised down to –0.3%). This brought GDP growth for 2011to a disappointing 0.9%, compared with 2.1% in 2010.

A contraction in manufacturing activity was the culprit for poor fourth-quarter GDP,with the purchasing managers’ index (‘PMI’) reading below 50 in November andDecember (signalling contraction). Services output, which accounts for some threequarters of UK industrial output, fell in October at its fastest pace since April, addingto investor fears that the debt crisis was tipping the UK back into recession.Meanwhile, the unemployment rate rose to a new 17-year high in November andcontinued to rise through the rest of the review period.

However, economic activity began to pick up in the New Year, with the manufacturingPMI for January moving back above 50 into expansionary territory. The growth trendcontinued through to the end of the review period, with the monthly survey by theConfederation of British Industry revealing a substantial increase in industrial ordersin February. Meanwhile, UK exporters were helped by a weaker pound and an upturnin demand from outside the Eurozone.


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The Bank of England (‘BoE’) left interest rates on hold at record lows throughout thereview period. In September, the BoE announced another round of quantitativeeasing, committing to buy a further £75 billion of Gilts over the following four months.In February, the Bank announced it would make an additional £50 billion of assetpurchases through its quantitative easing programme, reflecting ongoing concernsover the weak pace of the economic recovery.

Performance Review

In the six months to the 29th February 2012 the Managed Income portfolio delivereda return on net assets of +9.7% against the total return of the composite benchmarkof +9.5%. The portfolio has outperformed its benchmark over this period, benefitingfrom further positive stock selection within the UK equity portfolio and also from theasset allocation decision to remain underweight in corporate bonds over this first halfof our financial year.

Total returns to 29th February 2012

Six One Two Three Five Tenmonths year years years years years

NAV return (%) 9.7 5.1 21.8 68.9 –10.1 56.7

Benchmark return (%)1 9.5 2.5 18.1 67.6 12.3 76.2

FTSE All-Share Index (%) 10.3 1.5 18.8 75.0 14.2 74.1

Barclays Capital Global Corporate Bond Index (hedged) (%) 4.8 7.8 14.1 37.4 33.0 88.9

Source: Datastream/J.P. Morgan.1The benchmark is a composite comprising 85% FTSE All-Share Index and 15% Barclays Capital Global CorporateBond Index (hedged) in sterling terms. Prior to 1st March 2009, the benchmark was a composite comprising 85%FTSE 350 High Yield Index and 15% Merrill Lynch 5-10 year Sterling Corporate Bond Index.

The most significant contributor to performance over the six months was ourunderweight position in Tesco, the major food retailer. This traditionally defensivestock had a disappointing trading update in January 2012, and not owning Tescobenefited our portfolio as the share price fell by 17% following management’slowering of future profit guidance. Not owning Unilever, the international food andhousehold product producer, was also a positive contributor over the six months asthis stock delivered lacklustre results. Our overweight positions in Tate & Lyle, BTand Royal Dutch Shell all contributed positively, whilst also having attractive dividendyields. Of our financial stocks, Barclays performed strongly for the portfolio over thehalf year, rising by 43%. By contrast, our holding in Man Group, the hedge fundgroup, was a negative contributor to returns, as it fell by 42%, whilst Ashmore, theemerging market asset manager, also performed disappointingly over the six months.

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Not owning Tullow Oil was a negative contributor to performance as this oilexploration and production company performed strongly, rising 37% in light ofpositive newsflow from its drilling programmes in Africa. Overall the portfolio’sperformance was satisfactory over the first six months of our financial year, withthe fund modestly outperforming the positive market returns.

Portfolio Review

Over the course of the six months we have maintained an overweight positionin equities relative to the portfolio’s composite benchmark. This decision waspredicated on the attractive valuations, the potential for superior income growthfrom equities and continued positive newsflow from the companies that we choseto invest in.

Though the outlook for economic growth deteriorated in the latter half of calendar2011 we continued to be successful in finding companies that were able to deliversolid profitability and experience earnings upgrades. For instance, the world’s largestbanknote printer, De La Rue, saw its earnings upgraded as both sales volumes andmargins came in better than expected. At the same time the valuation was supportiveand the company has a healthy dividend yield of approximately 4.8%. We also boughta position in Berkeley which is a leading residential and commercial propertydevelopment company. This company enjoyed significant earnings upgrades as boththe volume of new houses sold and their average selling price were greater thanexpected. We also added to our position in BP as its operating metrics improved andits new targets could result in dividend growth to shareholders in 2012.

Conversely, we sold some stocks where the scope for earnings downgrades becamemore marked. For instance, we exited a number of the general financial stocks whichno longer looked compelling such as Investec, which had a slight downturn in profitexpectations, Close Brothers and Ashmore. We also sold the chemicals stock, Victrexin late September and trimmed some other cyclical positions in late October, post themarket rally.

We remain invested in the two bond funds, JPMorgan Global Corporate Bond Fundand JPMorgan Global High Yield Bond Fund, as a diversified way of enhancing theincome yield of the overall portfolio. We also continue to hold positions in JPMorganEuropean Investment Trust and JPMorgan Income & Growth Investment Trust.

Market Outlook

It is estimated that UK GDP growth will be in the region of 0.8% in 2012, similar to lastyear and well below the long term average. Indeed the Treasury estimate long-termGDP growth to be around 2.25%, which raises the question of why UK growth is soweak? The primary cause is deleveraging by the public sector. The UK governmentis engaged in a dramatic reduction of its budget deficit, the scale of which exceedsmost other European countries and the UK’s own post war history. The result hasbeen an increase in tax and cuts in public spending, which feeds through into weak

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consumer confidence, low private sector investment and rising unemployment.Compounding the problem is that many other countries, particularly in the Eurozone,are engaged in a similar process, which hurts our exports.

The good news is that the BoE is unlikely to change its key policy interest rate, whichis currently at 0.5%, for the remainder of 2012. Furthermore, the BoE is activelyengaged in helping the banks to strengthen their balance sheets, and so start lendingagain, through measures such as quantitative easing.

Of course, many UK companies have international exposure and are not dependentpurely on domestic UK demand. They can benefit from improvements in the USeconomy and from strong emerging market demand growth. Attractive valuations,particularly dividend yields that easily exceed the ‘risk-free’ yields currently availablefrom UK Gilts, and exposure to global demand growth, should continue to supportsuch companies. The UK stock market’s income attractions are also well protectedby good dividend cover and high levels of cash on company balance sheets.

John BakerSarah EmlyInvestment Managers 20th April 2012


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ValueCompany £’000 %

Royal Dutch Shell 3,043 7.4 JPMorgan Global Corporate Bond (‘A’ Distribution shares)1 2,463 6.0 JPMorgan Income & Growth (Income shares) 1,990 4.8 BP 1,870 4.5 Vodafone 1,838 4.5 HSBC 1,621 3.9 GlaxoSmithKline 1,590 3.9 British American Tobacco 1,588 3.8 Rio Tinto 1,150 2.8 BG 1,074 2.6 JPMorgan Global High Yield Bond (‘A’ Income shares)1 995 2.4 BHP Billiton 984 2.4 AstraZeneca 969 2.3 Xstrata 968 2.3 Barclays 721 1.7 Imperial Tobacco 686 1.7 JPMorgan European (Income shares) 666 1.6 BT 582 1.4 Diageo 559 1.3 Smith (DS) 483 1.2 Prudential 479 1.2 Aviva 468 1.1 Drax 447 1.1 Standard Chartered 447 1.1 Rolls-Royce 405 1.0 John Menzies 401 1.0 Berkeley 377 0.9 Compass 370 0.9 KCOM 367 0.9 Tate & Lyle 365 0.9 Lancashire 363 0.9 Senior 361 0.9 Aberdeen Asset Management 360 0.9 Melrose 359 0.9 Legal & General 357 0.9 Wolseley 356 0.9 GKN 353 0.8 Scottish & Southern Energy 343 0.8 De La Rue 343 0.8 Diploma 341 0.8


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ValueCompany £’000 %

Shire 338 0.8 Centrica 328 0.8 Elementis 326 0.8 Filtrona 326 0.8 Morrison (Wm.) Supermarkets 323 0.8 Informa 322 0.8 Burberry 318 0.8 RPC 317 0.8 British Land 315 0.8 Severn Trent 307 0.8 Resolution 301 0.7 Johnson Matthey 292 0.7 Carillion 289 0.7 Pearson 280 0.7 Restaurant 279 0.7 Provident Financial 253 0.6 Catlin 250 0.6 Weir 247 0.6 Hammerson 243 0.6 Stagecoach 235 0.6 Royal & Sun Alliance Insurance 230 0.6 ARM 230 0.6 Pennon 225 0.5 Interserve 222 0.5 ITV 184 0.4 JPMorgan Income & Growth (Capital shares) 46 0.1


Morrison (Wm.) Supermarkets 360 Call OptionsMarch 20121 0 0.0 Severn Trent 1700 Call Options June 20121 (2) 0.0 Imperial Tobacco 2600 Call Options June 20121 (8) 0.0

Total investments and derivatives 40,518 98.4

Net current assets excluding derivatives 683 1.6

Total assets less current liabilities 41,201 100.0

1Unlisted.

List of Investments continued

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29th February 2012 31st August 2011Portfolio Benchmark Portfolio Benchmark

%1 % %1 %

Financials 15.6 15.0 16.9 15.0

Oil & Gas 14.5 15.5 11.7 14.5

Industrials 10.8 7.2 8.8 6.3

Consumer Goods 10.3 11.3 7.1 10.9

Basic Materials 9.0 10.2 9.3 10.7

Bond Funds 8.4 15.0 8.7 15.0

Health Care 7.0 6.1 6.9 6.6

Telecommunications 6.8 5.1 6.8 5.2

Investment Trusts 6.6 2.6 8.4 2.7

Consumer Services 4.8 7.6 4.4 8.0

Utilities 4.0 3.2 4.6 3.5

Technology 0.6 1.2 0.5 1.6

Net current assets 1.6 — 5.9 —

Total 100.0 100.0 100.0 100.0


Sector Analysis

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(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended29th February 2012 28th February 2011 31st August 2011

Revenue Capital Total Revenue Capital Total Revenue Capital Total£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000


Income from investments 916 — 916 882 — 882 1,817 — 1,817Other interest receivable and similar

income 19 — 19 29 — 29 49 — 49

Gross return 935 2,804 3,739 911 4,640 5,551 1,866 2,226 4,092Management fee (36) (47) (83) (36) (44) (80) (80) (93) (173)Other administrative expenses (49) — (49) (46) — (46) (101) — (101)

Net return on ordinary activitiesbefore taxation 850 2,757 3,607 829 4,596 5,425 1,685 2,133 3,818

Taxation (charge)/credit (18) 14 (4) (43) 34 (9) (51) 44 (7)

Net return on ordinary activitiesafter taxation 832 2,771 3,603 786 4,630 5,416 1,634 2,177 3,811

Return per Managed Income share 1.65p 5.52p 7.17p 1.59p 9.35p 10.94p 3.32p 4.42p 7.74p


The ‘Total’ column of this statement is the profit and loss account of the Managed Income pool of assets and the ‘Revenue’ and‘Capital’ columns represent supplementary information.


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(Unaudited) (Unaudited) (Audited)29th February 28th February 31st August

2012 2011 2011£’000 £’000 £’000


Current assets Debtors 248 290 301Cash and short term deposits 752 194 2,145

1,000 484 2,446Creditors: amounts falling due within one year (317) (202) (160)Financial liability: derivative financial instruments (10) (9) —

Net current assets 673 273 2,286


Net assets 41,201 40,202 38,795

Net asset value per Managed Income share 82.2p 81.7p 76.9p


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Managed Cash Share Class+0.3%Return to shareholders1


0.25pDividend(2011: 0.35p)3

Financial Data29th February 31st August %

2012 2011 change


Number of shares in issue 14,571,412 14,075,774 +3.5

Net asset value per share 101.1p 101.2p –0.1

Share price 100.5p 100.5p 0.0




1Source: Morningstar.2Source: J.P.Morgan.3Represents two quarterly dividends. Dividends (if any) are usually paid quarterly in March, June, September andDecember.

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Review

The net asset value of the Managed Cash portfolio returned 0.2% over the six monthsto 29th February 2012. The total return to shareholders was 0.3%.

The returns for the portfolio remain low as interest rates have stayed on hold,remaining at historically low levels in the UK since March 2009.

We are currently invested in six AAA-rated stable value money market funds,managed by Fidelity, Insight, J.P.Morgan, Deutsche, BlackRock and Scottish Widows.

The weighted average maturity is just under 40 days and as always we are focusedon capital preservation first and foremost.

Outlook

RPI annual inflation stands at 3.7% in February and CPI at 3.4% – down from 3.6% inJanuary. The CPI is now back to levels last seen in November 2010 but continues to benear double the Monetary Policy Committee target.

Recent headlines in the UK, Europe and the US suggest that rate increases are a longway off. If this does indeed occur we would expect that returns from the ManagedCash portfolio will stay low.

Katy ThorneycroftJonathan LoweInvestment Managers 20th April 2012

Katy Thorneycroft

Jonathan Lowe

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Yield ValueCompany %1 Rating2 £’000 %3

Deutsche Global Liquidity Fund 0.86 AAA 2,720 18.4

Insight Sterling Liquidity Fund 0.86 AAA 2,663 18.1

Scottish Widows Investment Partnership Liquidity Fund 0.82 AAA 2,519 17.1

JPMorgan Sterling Liquidity Fund 0.86 AAA 2,431 16.5

BlackRock ICS Institutional Sterling Liquidity Fund 0.74 AAA 2,144 14.6

Fidelity Institutional Sterling Cash Fund 0.77 AAA 1,750 11.9


11 year return to 29th February 2012. Source: IMMFA Money Fund Report, iMoneyNet.2Ratings are given by recognised credit rating agencies.3Based on total assets less current liabilities of £14.7m.


29th February 31st August2012 2011%1 %1

Total investments 96.6 100.1

Net current assets/(liabilities) 3.4 (0.1)

Total 100.0 100.0


Portfolio Analysis

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Losses on investments held at fair value through profit or loss — — — — (1) (1) — (1) (1)

Income from investments 51 — 51 58 — 58 115 — 115

Gross return/(loss) 51 — 51 58 (1) 57 115 (1) 114Other administrative expenses (15) — (15) (16) — (16) (33) — (33)

Net return/(loss) on ordinary activities before taxation 36 — 36 42 (1) 41 82 (1) 81

Taxation (5) — (5) (6) — (6) (5) — (5)

Net return/(loss) on ordinary activities after taxation 31 — 31 36 (1) 35 77 (1) 76

Return per Managed Cash share 0.22p 0.00p 0.22p 0.19p 0.00p 0.19p 0.43p (0.01)p 0.42p


The ‘Total’ column of this statement is the profit and loss account of the Managed Cash pool of assets and the ‘Revenue’ and‘Capital’ columns represent supplementary information.


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(Unaudited) (Unaudited) (Audited)29th February 28th February 31st August

2012 2011 2011£’000 £’000 £’000


Current assets Debtors 8 15 8Cash and short term deposits 504 — 6

512 15 14Creditors: amounts falling due within one year1 (10) (342) (24)

Net current assets/(liabilities) 502 (327) (10)


Net assets 14,729 17,865 14,241

Net asset value per Managed Cash share 101.1p 100.9p 101.2p

1Includes any amounts payable in respect of Managed Cash shares redeemed in the February opportunity.


THE COMPANY

JPMorgan Elect plc. Half Year Report & Accounts 2012 27




Income from investments 2,593 — 2,593 2,369 — 2,369 4,679 — 4,679Other interest receivable and similar

income 24 — 24 33 — 33 59 — 59

Gross return 2,617 14,955 17,572 2,402 34,846 37,248 4,738 16,522 21,260Management fee (78) (172) (250) (93) (216) (309) (190) (422) (612)Other administrative expenses (271) — (271) (273) — (273) (574) — (574)

Net return on ordinary activitiesbefore taxation 2,268 14,783 17,051 2,036 34,630 36,666 3,974 16,100 20,074

Taxation (charge)/credit (16) 14 (2) (35) 34 (1) (53) 44 (9)

Net return on ordinary activitiesafter taxation 2,252 14,797 17,049 2,001 34,664 36,665 3,921 16,144 20,065

Return/(loss) per share (note 4):

Managed Growth 3.42p 29.61p 33.03p 2.81p 71.58p 74.39p 5.31p 33.55p 38.86p

Managed Income 1.65p 5.52p 7.17p 1.59p 9.35p 10.94p 3.32p 4.42p 7.74p

Managed Cash 0.22p 0.00p 0.22p 0.19p 0.00p 0.19p 0.43p (0.01)p 0.42p


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.


THE COMPANY


Called upshare Share Other Capital Revenue

Six months ended capital premium reserve reserves reserve Total29th February 2012 (Unaudited) £’000 £’000 £’000 £’000 £’000 £’000

At 31st August 2011 24 72,785 102,344 35,285 1,956 212,394Shares bought back and cancelled — — (3,399) — — (3,399)Share conversions during the period — 1,023 (1,023) — — —Net return on ordinary activities — — — 14,797 2,252 17,049Dividends appropriated in the period — — — — (1,858) (1,858)

At 29th February 2012 24 73,808 97,922 50,082 2,350 224,186


Six months ended capital premium reserve reserves reserve Total28th February 2011 (Unaudited) £’000 £’000 £’000 £’000 £’000 £’000

At 31st August 2010 24 68,244 117,009 19,141 1,888 206,306Shares bought back and cancelled — — (4,993) — — (4,993)Shares issued — 312 — — — 312Share conversions during the period — 1,717 (1,717) — — —Net return on ordinary activities — — — 34,664 2,001 36,665Dividends appropriated in the period — — — — (2,130) (2,130)

At 28th February 2011 24 70,273 110,299 53,805 1,759 236,160


Year ended capital premium reserve reserves reserve Total31st August 2011 (Audited) £’000 £’000 £’000 £’000 £’000 £’000

At 31st August 2010 24 68,244 117,009 19,141 1,888 206,306Shares bought back and cancelled — — (10,629) — — (10,629)Shares issued — 505 — — — 505Share conversions during the year — 4,036 (4,036) — — —Net return on ordinary activities — — — 16,144 3,921 20,065Dividends appropriated in the year — — — — (3,853) (3,853)

At 31st August 2011 24 72,785 102,344 35,285 1,956 212,394

Reconciliation of Movements inShareholders’ Funds

THE COMPANY


(Unaudited) (Unaudited) (Audited)29th February 2012 28th February 2011 31st August 2011

Growth Income Cash Total Total Total£’000 £’000 £’000 £’000 £’000 £’000

Fixed assets Investments held at fair value

through profit or loss 166,607 40,528 14,227 221,362 234,346 207,066

Current assets Debtors 512 248 8 768 762 685Cash and short term deposits 1,800 752 504 3,056 2,056 4,919

2,312 1,000 512 3,824 2,818 5,604Creditors: amounts falling due

within one year (663) (317) (10) (990) (995) (276)Financial liability: derivative financial

instruments — (10) — (10) (9) —

Net current assets 1,649 673 502 2,824 1,814 5,328

Total assets less current liabilities 168,256 41,201 14,729 224,186 236,160 212,394

Net assets 168,256 41,201 14,729 224,186 236,160 212,394

Capital and reserves Called up share capital 18 4 2 24 24 24Share premium 25,381 31,210 17,217 73,808 70,273 72,785Other reserve 90,241 10,273 (2,592) 97,922 110,299 102,344Capital reserves 50,822 (729) (11) 50,082 53,805 35,285Revenue reserve 1,794 443 113 2,350 1,759 1,956

Total equity shareholders’ funds 168,256 41,201 14,729 224,186 236,160 212,394

29th February 2012 28th February 2011 31st August 2011Net asset Net Net asset Net Net asset Net

value assets value assets value assetsNet asset value per share (note 5) (pence) £’000 (pence) £’000 (pence) £’000

Managed Growth 421.0 168,256 427.9 178,093 389.4 159,358Managed Income 82.2 41,201 81.7 40,202 76.9 38,795Managed Cash 101.1 14,729 100.9 17,865 101.2 14,241

Company registration number: 3845060


THE COMPANY


(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended

29th February 2012 28th February 2011 31st August 2011£’000 £’000 £’000

Net cash inflow from operating activities (note 6) 1,885 1,927 3,299

Taxation paid — — (49)

Net cash inflow from capital expenditure and financial investment 897 4,696 13,931

Dividends paid (1,858) (2,130) (3,853)

Net cash outflow from financing (2,787) (4,466) (10,124)

(Decrease)/increase in cash for the period (1,863) 27 3,204

Reconciliation of net cash flow tomovement in net funds

Net cash movement (1,863) 27 3,204Net funds at the beginning of the period 4,919 1,715 1,715

Net funds at the end of the period 3,056 1,742 4,919

Represented by:Cash and short term deposits 3,056 2,056 4,919Bank overdraft — (314) —

3,056 1,742 4,919

Cash Flow Statementfor the six months ended 29th February 2012

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1. Financial statements

The information contained within the financial statements in this half year report has not been audited or reviewed by theCompany’s auditors.

The figures and financial information for the year ended 31st August 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 (‘UK GAAP’)and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture CapitalTrusts’ issued in January 2009.

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

The accounting policies applied to these interim accounts are consistent with those applied in the accounts for the year ended31st August 2011.

3. Dividends(Unaudited) (Unaudited) (Audited)

Six months ended Six months ended Year ended29th February 2012 28th February 2011 31st August 2011

£’000 £’000 £’000

Dividends paidManaged Growth 4th quarterly dividend of 0.75p (2010: 0.75p) 309 314 314Managed Growth 1st quarterly dividend of 1.35p (2011: 1.80p) 550 754 754Managed Growth 2011 2nd quarterly dividend of 1.00p — — 411Managed Growth 2011 3rd quarterly dividend of 1.45p — — 597Managed Income 4th quarterly dividend of 0.80p (2010: 1.00p) 389 496 495Managed Income 1st quarterly dividend of 1.15p (2011: 1.15p) 577 566 566Managed Income 2011 2nd quarterly dividend of 0.70p — — 346Managed Income 2011 3rd quarterly dividend of 0.70p — — 343Managed Cash 4th quarterly dividend of 0.20p (2010: nil) 33 0 0Managed Cash 1st quarterly dividend of nil (2011: nil) 0 0 0Managed Cash 2011 2nd quarterly dividend of 0.15p — — 27Managed Cash 2011 3rd quarterly dividend of nil — — 0

Total dividends paid in the period 1,858 2,130 3,853

Dividends declaredManaged Growth 2011 4th quarterly dividend of 0.75p — — 309Managed Growth 2nd quarterly dividend of 2.10p (2011: 1.00p) 845 416 —Managed Income 2011 4th quarterly dividend of 0.80p — — 389Managed Income 2nd quarterly dividend of 0.70p (2011: 0.70p) 351 346 —Managed Cash 2011 4th quarterly dividend of 0.20p — — 33Managed Cash 2nd quarterly dividend of 0.25p (2011: 0.15p) 35 27 —

Total dividends declared1 1,231 789 731

1In accordance with the accounting policy of the Company, these dividends will be reflected in the accounts of the following period.

Notes to the Accountsfor the six months ended 29th February 2012

Notes to the Accounts continued

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4. Return/(loss) per share



Managed Growth Return per Managed Growth share is based on the following: Revenue return 1,389 1,179 2,210Capital return 12,026 30,035 13,968

Total return 13,415 31,214 16,178

Weighted average number of shares in issue 40,616,636 41,957,942 41,635,684Revenue return per share 3.42p 2.81p 5.31pCapital return per share 29.61p 71.58p 33.55p

Total return per share 33.03p 74.39p 38.86p



Managed Income Return per Managed Income share is based on the following: Revenue return 832 786 1,634Capital return 2,771 4,630 2,177

Total return 3,603 5,416 3,811

Weighted average number of shares in issue 50,228,545 49,492,373 49,228,434Revenue return per share 1.65p 1.59p 3.32pCapital return per share 5.52p 9.35p 4.42p




Managed Cash Return/(loss) per Managed Cash share is based on the following: Revenue return 31 36 77Capital loss — (1) (1)

Total return 31 35 76

Weighted average number of shares in issue 14,055,661 18,729,153 17,872,598Revenue return per share 0.22p 0.19p 0.43pCapital loss per share 0.00p 0.00p (0.01)p


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5. Net asset value per share

The net asset values per share are calculated as follows:

(Unaudited)29th February 2012

Managed Growth Managed Income Managed Cash

Net assets attributable (£’000) 168,256 41,201 14,729

Ordinary shares in issue 39,968,841 50,147,100 14,571,412

Net asset value per share (pence) 421.0 82.2 101.1

(Unaudited)28th February 2011





(Audited)31st August 2011





6. Reconciliation of total return on ordinary activities before taxation to net cash inflow from operating activities



Net return on ordinary activities before taxation 17,051 36,666 20,074Less capital return before taxation (14,783) (34,630) (16,100)Increase in accrued income (151) (68) (103)Decrease/(increase) in other debtors 60 (25) (65)(Decrease)/increase in accrued expenses (59) 211 (12)Scrip dividends received as income (52) (3) (55)Management fee charged to capital (172) (216) (422)Taxation on unfranked income (9) (8) (18)

Net cash inflow from operating activities 1,885 1,927 3,299

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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 broad categories:investment and strategy; accounting, legal and regulatory;corporate governance and shareholder relations; operational;and financial. Information on each of these areas is given in theBusiness Review within the Annual Report and Accounts forthe year ended 31st August 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.

Going Concern

The Directors believe, having considered the Company’sinvestment objectives, risk management policies, capitalmanagement policies and procedures, nature of the portfolio

and expenditure projections, that the Company has adequateresources, an appropriate financial structure and suitablemanagement arrangements in place to continue in operationalexistence for the foreseeable future. For these reasons, theyconsider there is reasonable evidence to continue to adopt thegoing concern basis in preparing the accounts.

Directors’ Responsibilities

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

(i) the condensed set of financial statements contained withinthe half yearly financial report has been prepared inaccordance with the Accounting Standards Board’sStatement ‘Half-Yearly Financial 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 Miller Chairman 20th April 2012

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JPMorgan Elect plc adopted its present structure as a result ofthe combination of JPMorgan Fleming Managed Growth plcand JPMorgan Fleming Managed Income plc and thesubsequent capital reorganisation. The Company’s namereflects the capital structure and the investment flexibility itoffers to shareholders. There are three share classes, each withdistinct investment policies, objectives and underlyinginvestment portfolios. Each share class is listed separately andtraded on the London Stock Exchange. This capital structuremeans that shareholders may benefit from greater investmentflexibility in a tax-efficient manner.

Capital Structure

• Managed Growth Shares Designed to provide long term capital growth by investing ina range of closed and open-ended funds managed principallyby JPMAM.

• Managed Income Shares Designed to provide a growing income together with thepotential for long term capital growth by investing in equities,investment trusts and fixed income securities.

• Managed Cash Shares Designed to preserve capital with a yield based on shortterm interest rates by investing in a range of liquidity funds,selected for their yield and credit rating, and short datedAAA-rated UK government securities/G7 governmentsecurities hedged into sterling.

Investing in Managed Cash Shares

Based on its return characteristics and the costs incurredin transacting in its shares, an investment in Managed Cashshould only be considered by existing holders of ManagedGrowth and/or Managed Income who wish to switch intoManaged Cash on the designated quarterly conversion dates.Accordingly, Elect Managed Cash shares are not available forpurchase through the J.P. Morgan Investment Account,J.P. Morgan ISA or J.P. Morgan SIPP or on J.P. MorganWealthManager+.

Repurchase of Managed Cash Shares

In order to mitigate the impact of the market spread on theManaged Cash shares it is possible for holders of ManagedCash shares to elect to have all or part of their holding of suchshares repurchased by the Company for cash at a price close tonet asset value on each conversion date (see below).

Conversion Opportunities

Shareholders in any of the three share classes are able toconvert some or all of their shares into shares of the otherclasses on a quarterly basis without such conversion being

treated, under current law, as a disposal for UK capital gains taxpurposes.

The conversion mechanism allows shareholders to alter theirinvestment profile to match their changing investment needsin a tax-efficient manner. Conversion dates arise every threemonths on 28th/29th February, 31st May, 31st August and30th November (if such a date is not a business day, then theconversion date will move to the next business day). TheCompany, or its Manager, will make no administrative chargefor any of the above conversions.

Conversion between the share classes

Those who hold shares through the J.P. Morgan InvestmentAccount, J.P. Morgan ISA or J.P. Morgan SIPP must completeand submit a conversion instruction form which can be foundat www.jpmelect.co.uk. Instructions for CREST holders can alsobe found at this address. Those who hold shares in certificatedform on the main register must complete the conversion noticeprinted on the reverse of their certificate and send it to theCompany’s registrars at the following address:

Equiniti LimitedRepayments TeamCorporate ActionsAspect HouseSpencer RoadLancingWest SussexBN99 6DA

Instructions must be received no earlier than 45 and no laterthan 14 calendar days before the chosen conversion date.

The number of shares that will arise upon conversion will bedetermined on the basis of the relative net asset values of eachshare class, taking into account the costs of the conversionprocess. Conversion will not affect the net asset value per shareof those shares held by any shareholder who does not convert.

With regard to those who hold shares through the J.P. MorganInvestment Account, J.P. Morgan ISA or J.P. Morgan SIPP, theminimum number of shares of any class which may beconverted is 1,000 shares (subject to a minimum value of£500). Conversion of fewer shares may only take place if thenumber to be converted constitutes the shareholder’s entireholding in that class.

Shareholders who hold shares in certificated form on themain register or those who hold their shares in electronic formthrough CREST may convert a minimum of 1,000 shares or,if lower, their entire holding.

More details concerning conversion dates and conversioninstruction forms can be found on the Company’s website:www.jpmelect.co.uk

Capital Structure and Conversionbetween Share Classes

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Return to shareholdersTotal return to the investor, on a mid-market price tomid-market price basis, assuming that all dividendsreceived were reinvested, without transaction costs, intothe shares of the Company at the time the shares werequoted ex-dividend.

Return on net assetsTotal return on net asset value (‘NAV’) per share, on a bidvalue to bid value basis, assuming that all dividends paid outby the Company were reinvested into the shares of theCompany at the NAV per share at the time the shares werequoted ex-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 returnTotal return on the benchmark, on a mid-market value tomid-market value basis, assuming that all dividends receivedwere reinvested, without transaction costs, into the shares ofthe underlying companies at the time the shares were quotedex-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.

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.

Glossary of Terms and Definitions

HistoryThe Company was incorporated on 16th September 1999 and launched asan investment trust on 24th November 1999 with assets of £28million. TheCompany changed its name to JPMorgan Fleming Managed Growth plc on5th December 2002. The Company’s name was changed to JPMorganFleming Elect plc on 14th January 2004 following the capital reorganisationand combination of JPMorgan Fleming Managed Growth plc and JPMorganFleming Managed Income plc. The Company adopted its present name on2nd February 2006.

DirectorsSimon Miller (Chairman)Alan HodsonAngus MacphersonRobert Ottley (Deputy Chairman)James RobinsonNigel Sidebottom (Chairman of the Audit Committee)Roger Yates

Company NumbersCompany registration number: 3845060 London Stock Exchange Sedol numbers: Managed Growth: 0852814, Managed Income: 3408021 Managed Cash: 2408009 ISIN numbers: Managed Growth: GB0008528142Managed Income: GB0034080217Managed Cash: GB0034080092 Bloomberg Codes: Managed Growth: JPE LNManaged Income: JPEI LNManaged Cash: JPEC LN

Market InformationNet asset values per share for each share class are published daily via theLondon Stock Exchange. The Company’s shares are listed on the LondonStock Exchange. The market price is shown daily in the Financial Times,The Times, The Daily Telegraph, The Scotsman, The Independent and onthe JPMorgan internet site at www.jpmelect.co.uk, where the share pricesare updated every fifteen minutes during trading hours.

Websitewww.jpmelect.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 bepurchased and held through the J.P. Morgan Investment Account, J.P. MorganISA and J.P. Morgan SIPP. These products are all available on the onlinewealth manager service, 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 4000

For company secretarial and administrative matters, please contactAlison Vincent.

CustodianJPMorgan Chase Bank, N.A.125 London WallLondon EC2M 5AJ

RegistrarsEquiniti LimitedReference 2018 Aspect House Spencer RoadLancing West Sussex BN99 6DA Telephone number: 0871 384 2319

Calls to this number cost 8p per minute from a BT landline. Other providers’costs may vary. Lines open 8.30 a.m. to 5.30 p.m., Monday to Friday. Theoverseas helpline number is +44 (0)121 415 7047.

Notifications of changes of address and enquiries regarding share certificatesor dividend cheques should be made in writing to the Registrars quotingreference 2018.

Registered shareholders can obtain further details on their holdings on theinternet by visiting www.shareview.co.uk.

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.

Independent AuditorErnst & Young LLP Statutory Auditor1 More London Place London SE1 2AF

BrokersWinterflood SecuritiesThe Atrium Building Cannon Bridge25 Dowgate HillLondon EC4R 2GATelephone 020 7621 0004

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Information about the Company

Financial CalendarFinancial year end 31st AugustFinal results announced NovemberHalf year end 29th FebruaryHalf year results announced AprilInterim Management Statements announced June/DecemberDividends payable (if any) March, June, September and DecemberAnnual General Meeting December

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.jpmelect.co.uk

CLEAN Security Cover - J.P. Morgan€¦ · Two quarterly dividends totalling 1.85 pence per share...

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