Interim Report & Accounts (Unaudited) JPMorgan Fund III ICVC

Transcription

1 Interim Report & Accounts (Unaudited) JPMorgan Fund III ICVC 31 October 2014

2

3 Contents Authorised Corporate Director s (ACD) Report 2-3 Investment Adviser s Report for the six months ending 31 October JPM Fusion Balanced Fund 5-10 JPM Fusion Conservative Fund JPM Fusion Growth Fund JPM Fusion Growth Plus Fund JPM Fusion Income Fund JPM Portfolio Fund Aggregated Company financial statements 40 This material should not be relied on as including sufficient information to support an investment decision. The opinions and views expressed in this document are those held by J.P. Morgan Asset Management as at 9 December 2014, which are subject to change and are not to be taken as or construed as investment advice. For up-to-date performance information please contact J.P. Morgan Asset Management using the numbers shown on the back of this document. You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. The level of tax benefits and liabilities will depend on individual circumstances and may change in the future. The investment objective of a Fund may allow some flexibility in terms of portfolio composition. Funds that invest predominantly in a single market, asset class or sector may be subject to greater volatility than those funds with a more diversified portfolio. The information in this booklet is based on our understanding of law, regulation and HM Revenue & Customs practice as at 9 December

4 Authorised Corporate Director s (ACD) Report We are pleased to present the Interim Report & Accounts for JPMorgan Fund III ICVC for the period ended 31 October Authorised Status JPMorgan Fund III ICVC is an Open-Ended Investment Company ( Company ) with variable capital authorised, under Regulation 12 of the OEIC Regulations, by the Financial Conduct Authority on 16 May The Company was launched as a non-ucits Retail Scheme on 7 September 2002 and acts as an umbrella company comprising of six sub-funds. Its registration number is IC and its registered address is 60 Victoria Embankment, London EC4Y 0JP. Structure & Liabilities The assets of each sub-fund are treated as separate from those of every other subfund and are invested in accordance with the investment objective and investment policies applicable to that sub-fund. Details of the investment objective, the policies for achieving these objectives, the performance record and a review of the investment activities for each of the sub-funds can be found in this report. The ACD report includes for each sub-fund the: Investment objective and policy Risk profile Fund review Fund outlook Portfolio statement Portfolio movements Shareholders are not liable for the debts of the Company. Shareholders are not liable to make any further payment to the Company after the purchase of their shares is paid for. Alternative Investment Fund Managers Directive (AIFMD) The AIFMD, as implemented in the United Kingdom by the Alternative Investment Fund Managers (AIFMs) Regulations 2013, establishes an EU-wide harmonised framework for monitoring and supervising risks posed by AIFMs and the alternative investment funds (AIFs) they manage. The ACD was authorised by the Financial Conduct Authority to act as an AIFM on 9 June The Prospectus was updated to include additional information in accordance with the AIFMD on 9 June Due to the short period from authorisation as an AIFM to the period end the total amount of remuneration paid to employees of JPMorgan Funds Limited will not be materially relevant or provide a proper basis for comparison. As a result the disclosure, which is required by the AIFMD, will occur in the Annual Report & Accounts for the period ending 30 April Fusion Funds Benchmark Changes With effect from 1 October 2014 certain component indices and weightings in each of the composite benchmarks of the following funds were amended. For details of the full composite benchmarks please see the Prospectus. JPM Fusion Balanced Fund MSCI World ex UK (Net) reduced weighting from 35% to 0%. FTSE All Share (Net) increased weighting from 20% to 22%. MSCI Europe ex UK (Net) increased weighting from 0% to 10%. MSCI World ex Europe (Net) increased weighting from 0% to 23%. JPM Fusion Conservative Fund MSCI World ex UK (Net) reduced weighting from 25% to 0%. MSCI Europe ex UK (Net) increased weighting from 0% to 7%. MSCI World ex Europe (Net) increased weighting from 0% to 18%. JPM Fusion Growth Fund MSCI World ex UK (Net) reduced weighting from 50% to 0%. FTSE All Share (Net) increased weighting from 20% to 25%. MSCI Europe ex UK (Net) increased weighting from 0% to 13%. MSCI World ex Europe (Net) increased weighting from 0% to 32%. JPM Fusion Growth Plus Fund MSCI World (Net) reduced weighting from 85% to 0%. FTSE All Share (Net) increased weighting from 0% to 28%. MSCI Europe ex UK (Net) increased weighting from 0% to 18%. MSCI World ex Europe (Net) increased weighting from 0% to 39%. JPM Fusion Income Fund MSCI World ex UK (Net) reduced weighting from 15% to 0%. MSCI Europe ex UK (Net) increased weighting from 0% to 5%. MSCI World ex Europe (Net) increased weighting from 0% to 10%. JPM Institutional Balanced Fund On 16 August 2013 an EGM was held at which shareholders voted in favour of a proposal to merge this Fund with the JPM Balanced Managed Fund, a sub-fund within JPMorgan Fund II ICVC. On 31 August 2013 the merger took place, and shares in the JPM Institutional Balanced Fund were replaced with shares of equal value of the JPM Balanced Managed Fund. A Termination Account as at 30 June 2014 was sent to shareholders on 28 October

5 Authorised Corporate Director s (ACD) Report (continued) Management and Administration Authorised Corporate Director JPMorgan Funds Limited 3 Lochside View, Edinburgh Park, Edinburgh, EH12 9DH (Authorised and regulated by the Financial Conduct Authority) Depositary National Westminster Bank plc 135 Bishopsgate, London, EC2M 3UR (Authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority) Independent Auditors PricewaterhouseCoopers LLP Atria One, 144 Morrison Street, Edinburgh, EH3 8EX Investment Adviser JPMorgan Asset Management (UK) Limited 25 Bank Street, Canary Wharf, London, E14 5JP (Authorised and regulated by the Financial Conduct Authority) Registrar JPMorgan Asset Management Marketing Limited 25 Bank Street, Canary Wharf, London, E14 5JP (Authorised and regulated by the Financial Conduct Authority) By order of the Authorised Corporate Director, Dan Watkins Director JPMorgan Funds Limited 9 December 2014 Tanaquil McDowall Director JPMorgan Funds Limited 9 December

6 Investment Adviser s Report for the six months ending 31 October 2014 Market review In the six-month period ending 31 October 2014, market sentiment was shaped by continued geopolitical uncertainty brought about by the tensions in Ukraine and the Middle East, as well as by the increasingly divergent monetary policies of the major central banks. While rapid improvement in US and UK economic conditions has led to expectations for interest rate increases in both countries next year, continued weakness in the eurozone and Japan has seen the European Central Bank and the Bank of Japan undertake further stimulus measures. In the US, stocks were supported by solid corporate fundamentals and encouraging earnings results, while a sustained improvement in the US labour market and other key economic indicators provided a favourable backdrop for share prices. Bonds were also well supported, as investors remained unfazed by the Federal Reserve s (the Fed s) continued reduction in its asset purchases, by USD 10 billion each month since January The Fed s asset-purchase programme was eventually wound up in October, right at the end of the review period. However, a lack of inflationary pressures suggested interest rates would not start to rise from their current lows until well into The strength in US growth was in contrast to the sluggish activity seen in the eurozone and Japan. A slew of disappointing data dampened the outlook for the eurozone economy, which barely grew over the review period. The falling rate of eurozone consumer price inflation has been among the European Central Bank s (ECB s) chief concerns. Eurozone inflation increased just 0.4% in the year to October, raising concerns that the region may be slipping into deflation a scenario that would exacerbate existing sovereign debt concerns. While the ECB announced a raft of monetary stimulus measures, including lower interest rates, in June, these came to be viewed by markets as insufficient to counter the deflationary pressures and currency strength weighing on the eurozone economy. In light of this, ECB president Mario Draghi unexpectedly announced a further cut to interest rates towards the end of the period, as well as plans to buy debt from European banks through a programme of asset-backed security and covered bond purchases. Draghi had provided limited details about the purchase programme at the end of the period, and the lack of meaningful economic reform in many countries remained a concern, but the measures were broadly welcomed by markets. The Bank of Japan (BoJ) also significantly eased policy in the period to try to boost Japanese economic activity. The Japanese economy slipped back into recession in the third quarter of 2014, mainly as a result of a drop in consumption following the raising of the consumption tax in April. With the BoJ in danger of missing its 2% inflation target, on the last day of October, the central bank said it would boost its government bond buying programme from around JPY 50 trillion a year to JPY 80 trillion. Over the medium term, investors hope that the BoJ s increased monetary support will boost optimism among businesses and consumers about the prospects for the economy and the upward trajectory of inflation. Market outlook Hopes have receded this year of a shared recovery among the developed economies. While the US and UK have registered decent performance, economies in the eurozone and emerging markets, as well as Japan, have been materially weaker, with the picture less promising than at the start of the year. What the US and the UK have had in common is a more domestically-led recovery, with falling unemployment and some signs of real wage growth coming through. In Europe, low inflation and low growth are threatening to reignite regional sovereign debt concerns. While the European Central Bank s (ECB s) efforts are leading to improved lending standards and increased loan demand, which often help provide the foundations for a recovery, the ECB can t succeed on its alone structural reform, and in particular, labour market reform, is needed for the ECB s efforts to make a difference and encourage a vital pickup in business investment. Meanwhile, with the US Federal Reserve (Fed) winding up its quantitative easing programme, many are asking what lies ahead for the beneficiaries of cheap liquidity, such as equities. History shows that developed market equities can cope with higher interest rates, and perform well when rates rise gradually from very low levels. This is because rates tend to rise in parallel with an improving economy and corporate earnings growth. There are exceptions, however, and the current situation is unique we haven t normally had a first rate hike at such a mature stage of the cycle in terms of markets, with US equities trading at such high valuations. JPMorgan Asset Management (UK) Limited November

7 JPM Fusion Balanced Fund Investment objective and policy To provide capital growth by investing primarily in a diversified portfolio of open-ended collective investment schemes. The Fund is a fund of funds which provides a broad exposure to Equity and Equity-Linked Securities, Bonds and other Debt Securities issued globally. The Fund may also have exposure to property, commodities, Emerging Markets, smaller companies, money market instruments, cash and cash equivalents. Typically the Fund s exposure to Equity and Equity-Linked Securities will not exceed 70%. The Fund will invest in collective investment schemes offered by a range of investment managers which may include J.P. Morgan Asset Management and its associates. The Fund may also invest in other Funds of the Company. Collective investment schemes may include Exchange Traded Funds and unregulated collective investment schemes. The Fund may also invest directly in Exchange Traded Commodities, investment trusts, deposits, cash and cash equivalents. The Fund may use Financial Derivative Instruments (derivatives) and forward transactions for Efficient Portfolio Management, including hedging. Subject to at least 60 days notice to Shareholders, the Fund may use derivatives for investment purposes which may change the risk profile of the Fund. Non Sterling assets may be hedged to Sterling at the discretion of the Investment Adviser. Risk profile The Fund will be subject to the risks associated with the underlying funds in which it invests. The value of your investment may fall as well as rise and you may get back less than you originally invested. The value of Equity and Equity-Linked Securities held in the underlying funds may fluctuate in response to the performance of individual companies and general market conditions. The value of Bonds and other Debt Securities held in the underlying funds may change significantly depending on market, economic and interest rate conditions as well as the creditworthiness of the issuer. Issuers of Bonds and other Debt Securities may fail to meet payment obligations (default) or the credit rating of Bonds and other Debt Securities may be downgraded. These risks are typically increased for High Yield Bonds which may also be subject to higher volatility and be more difficult to sell than Investment Grade Bonds. Emerging Markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement practices, poor transparency and greater financial risks. Emerging Market currencies may be subject to volatile price movements. Emerging Market securities may also be subject to higher volatility and be more difficult to sell than non-emerging Market securities. The underlying funds in which the Fund invests may have exposure to commodities which can be very volatile. The value of Exchange Traded Commodities will reflect the price of the underlying commodity or basket of commodities which can be very volatile. Unregulated collective investment schemes are subject to less onerous regulatory supervision than regulated schemes and may be higher risk. To the extent that any underlying assets of the Fund are denominated in a currency other than Sterling and are not hedged back to Sterling, movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that may be used to minimise the effect of currency fluctuations may not always be successful. The underlying funds in which the Fund invests may invest directly in property. Property funds typically have increased liquidity risks as property can be more difficult to buy and sell than other asset classes. In addition, property valuations are typically provided by an independent valuer and are subject to the valuer s opinion and interpretation of prevailing market conditions. If the underlying fund is a forced seller of property then the amount the underlying fund receives for selling an asset may be less than the value assumed in the valuation of that Fund. Please refer to Part 11 of the Prospectus for details of the general risk factors affecting this Fund in addition to the specific risk factors above. Fund review Despite generating a positive return over the six-month period, the Fund underperformed its benchmark. Positive contributions to performance were derived from the portfolio s exposure to the US and Japan, with the latter benefiting from the Bank of Japan s surprise decision to increase monetary stimulus. However, an underweight to core government bonds both in the UK and US materially impacted relative performance as the asset class generated strong gains. This was a key driver of the Fund s underperformance, but with yields so depressed, it is a risk that the portfolios continue to run with. UK equities also struggled over the period, with the FTSE All Share generating a negative return. A slight overweight to the region detracted from relative performance. UK smaller companies continued to suffer from expectations of an upcoming rate hike this acted as a significant headwind to the holding in Aberforth UK Small Companies. Among the non-traditional investments held, Melchior European Absolute Return Fund and JPM Systematic Alpha both outperformed the HFRX Global Hedge Fund Index. The M&G UK Property Fund continues to deliver positive returns and offers diversification to the overall portfolio. Fund outlook Our view of the world remains one of moderate but positive global growth, alongside low inflation. This should prove to be a conducive environment for risk assets and hence we remain overweight equities and credit. However, with low nominal growth rates the global economy becomes prone to external shocks, which are likely to cause the market to question the timing of the next recession. With asset prices having materially appreciated over the past five years, we therefore expect more volatility. While equity markets are likely to move higher, the need to own diversifying assets in one s portfolio becomes more important. 5

8 12 month performance to 31 October JPM Fusion Balanced A-Class Acc 1.0% 3.6% JPM Fusion Balanced B-Class Acc 1.4% 3.9% JPM Fusion Balanced C-Class Acc 1.7% 4.0% Benchmark Index 5.1% 3.0% Six month performance to 31 October 2014 JPM Fusion Balanced A-Class Acc 0.8% JPM Fusion Balanced B-Class Acc 1.2% JPM Fusion Balanced C-Class Acc 1.2% Benchmark Index 3.5% Fund statistics Risk and Reward Profile 5* Fund size 13.4m Benchmark Index 23% MSCI World ex Europe Index (Net)/ 22% FTSE All-Share Index (Net)/ 10% MSCI Europe ex UK Index (Net)/ 5% HFRX Global Hedge Fund GBP Index/ 5% Bloomberg Commodity Index Total Return/ 15% Barclays Global Aggregate ex GBP Index hedged to GBP/ 15% BofA Merrill Lynch Sterling Broad Market Index/ 5% JPMorgan 3 Month Total Return Index Level Sterling Fund charges A-Class Initial 3.00%, Annual 1.50% B-Class Initial Nil, Annual 1.00% C-Class Initial Nil, Annual 0.75% Top ten holdings % JPM US Select Equity Plus C GBP (Distribution)^ 8.9 Polar Capital Japan I JPY (Distribution) 6.2 Vanguard FTSE 100 UCITS ETF GBP (Income) 5.0 Liontrust Macro Equity Income I (Accumulation) 5.0 BlackRock UK Focus FF (Accumulation) 4.7 M&G Property Portfolio I GBP (Accumulation) 4.4 Aberforth UK Smaller Companies (Accumulation) 4.1 JPM Aggregate Bond C GBP Hedged (Distribution)^ 4.1 J O Hambro Capital UK Opportunities A GBP (Accumulation) 4.0 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 4.0 Sector breakdown % Equity funds 61.5 Bond funds 16.1 Alternative funds 8.0 Net other assets 7.1 Real Estate funds 4.4 Commodity funds 2.7 Forward currency contracts 0.2 Liquidity funds 0.0 Highest/lowest share price and distribution record Calendar year Highest share price Lowest share price Distribution per share (net) A-Class Accumulation Shares A p 48.04p 0.00p 2014 B 53.52p 50.12p 0.00p A-Class Income Shares A p 48.03p 0.00p 2014 B 53.51p 50.11p 0.00p B-Class Accumulation Shares A p 96.18p 0.00p 2014 B 107.8p 101.0p 0.00p C-Class Accumulation Shares A p 96.23p 0.00p 2014 B 108.2p 101.4p 0.00p C-Class Income Shares A p 96.24p 0.00p 2014 B 108.2p 101.4p 0.00p A A-Class Accumulation Shares, A-Class Income Shares, B-Class Accumulation Shares, C-Class Accumulation Shares and C-Class Income Shares were launched on 18 March B To 31 October Portfolio turnover rate % % The portfolio turnover rate (PTR) reflects the total of security purchases and sales (excluding Liquidity funds), less the total of share issues and cancellations, expressed as a percentage of the average daily net asset values over the period. ^ Deemed to be investment in related parties of the ACD You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. * For specific risks, including the risk and reward profile, please refer to the Key Investor information Document (KIID) available on the following website All equity indices stated as Net are calculated net of tax as per the standard published approach by the index vendor unless stated otherwise. All performance returns are calculated using the quoted price of the accumulation shares. Performance returns are in Sterling. Source: J.P. Morgan. 6

9 Portfolio transaction costs Broker Commissions Transaction Taxes Total % 0.00% 0.01% % 0.00% 0.01% The percentage figures disclosed above reflect the average broker commissions and transaction taxes suffered since launch divided by the average assets under management over the same period. Net asset values and Ongoing charges Net asset Date value per share class 000 Number of shares Net asset value per share Ongoing charges* A-Class Accumulation Shares ,594, p 2.31% ,836 15,114, p 2.35% ,756 16,743, p 2.32% A-Class Income Shares , p 2.31% , p 2.35% ,102, p 2.32% B-Class Accumulation Shares , p 1.81% , p 1.85% , p 1.82% C-Class Accumulation Shares , p 1.56% ,316 3,173, p 1.60% ,772 3,563, p 1.57% C-Class Income Shares , p 1.56% , p 1.60% , p 1.57% The net asset value and the net asset value per income share are shown ex-dividend. * The Ongoing charges takes into account the ACD fee; the fixed expenses and any other chargeable operating expenses, expressed as a percentage of the average daily net asset values over the period. It also includes a synthetic adjustment of 0.64% ( : 0.67%) for the period in respect of indirect expenses charged within investments in underlying funds. + The Ongoing charges figure has been restated due to an incorrect calculation of the synthetic charge. 7

10 Portfolio statement As at 31 October 2014 Investment Holding Market value 000 Total net assets % Equity funds 61.5% (65.6%) United Kingdom 22.8% (22.5%) Aberforth UK Smaller Companies (Accumulation) 3, BlackRock UK Focus FF (Accumulation) 482, J O Hambro Capital UK Opportunities A GBP (Accumulation) 253, Liontrust Macro Equity Income I (Accumulation) 236, Vanguard FTSE 100 UCITS ETF GBP (Income) 22, United States of America 15.9% (18.8%) JPM US Select Equity Plus C GBP (Distribution)^ 12,964 1, Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 45, Robeco US Large Cap Equities I USD (Accumulation) 3, Japan 10.2% (6.7%) GLG Japan CoreAlpha Professional D (Distribution) 334, Polar Capital Japan I JPY (Distribution) 82, Europe 8.3% (13.7%) DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) 2, JPM Europe Select Equity C GBP (Distribution)^ 5, TT International Europe Ex UK Equity A GBP (Distribution) 18, Emerging Markets 4.3% (3.9%) Delaware Investments Emerging Markets I USD (Accumulation) 56, GAM Star China Equity Institutional GBP (Accumulation) 12, Bond funds 16.1% (16.6%) Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 4, Fidelity Money Builder Y (Gross Accumulation) 31, JPM Aggregate Bond C GBP Hedged (Distribution)^ 8, Neuberger Berman High Yield Bond I GBP (Accumulation) 35, PIMCO UK Corporate Bond Institutional (Accumulation) 12, Alternative funds 8.0% (10.3%) JPM Systematic Alpha C GBP Hedged (Distribution)^ 3, Melchior Selected Trust European Absolute Return Fund (Accumulation) 4, Pioneer Absolute Return Bond I GBP Hedged (Distribution) Real Estate funds 4.4% (4.1%) M&G Property Portfolio I GBP (Accumulation) 50, Commodity funds 2.7% (1.2%) DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 13, ETFS Brent Oil 1 month ETC USD 3, Forward currency contracts 0.2% (0.0%) Euro Sell 172,000 buy 136,302 dated 20/11/14 1 Japanese Yen Sell 163,000,000 buy 946,046 dated 20/11/ US Dollars Sell $172,000 buy 106,365 dated 20/11/14 (1) Liquidity funds 0.0% (0.0%) JPM Sterling Liquidity X (Distribution)^# 1, Investment assets (including investment liabilities) 12, Net other assets Net assets 13, Unless otherwise stated all holdings are shares or units in Collective Investment Schemes permitted under the COLL. The comparative percentage figures in brackets are at 30 April ^ Deemed to be investment in related parties of the ACD # Approved security as defined in the Collective Investment Schemes sourcebook 8

11 Portfolio movements For the six months ending 31 October 2014,000 Total of all purchases for the period 6, Total of all sales for the period 6,104 Major purchases Cost JPM US Select Equity Plus C GBP (Distribution)^ 688 Vanguard FTSE 100 UCITS ETF GBP (Income) 670 J O Hambro Capital UK Opportunities A GBP (Accumulation) 637 JPM US Equity Income C (Accumulation)^ 442 JPM Europe Select Equity C GBP (Distribution)^ 323 Polar Capital Japan I JPY (Distribution) 313 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 288 Investec UK Special Situations I (Accumulation) 279 GLG Japan CoreAlpha Professional D (Distribution) 277 JPM Aggregate Bond C GBP Hedged (Distribution)^ 259 ishares MSCI Europe ex-uk UCITS ETF 252 Liontrust Macro Equity Income I (Accumulation) 199 Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 196 Aberforth UK Smaller Companies (Accumulation) 184 Delaware Investments Emerging Markets I USD (Accumulation) 183 PIMCO Total Return Bond I GBP Hedged (Distribution) 181 Fidelity Money Builder Y (Gross Accumulation) 154 ETFS Brent Oil 1 month ETC USD 135 BlackRock UK Focus FF (Accumulation) 132 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 121 ^ Deemed to be investment in related parties of the ACD Major Sales Proceeds ishares FTSE 100 UCITS ETF GBP (Distribution) 621 Investec UK Special Situations I (Accumulation) 539 JPM US Equity Income C (Accumulation)^ 479 JPM US Strategic Growth C GBP (Distribution)^ 440 BlackRock Continental Europe Flexible GBP (Distribution) 406 PIMCO Total Return Bond I GBP Hedged (Distribution) 402 JPM Europe Select Equity C GBP (Distribution)^ 365 Robeco US Large Cap Equities I USD (Accumulation) 308 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 267 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 265 ishares MSCI Europe ex-uk UCITS ETF 242 Schroder Recovery Z (Accumulation) 235 ishares S&P 500 UCITS ETF USD (Accumulation) 162 DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) 145 BlackRock UK Focus FF (Accumulation) 144 ishares MSCI Emerging Markets UCITS ETF USD (Distribution) 124 Fidelity Money Builder Y (Gross Accumulation) 101 JPM Systematic Alpha C GBP Hedged (Distribution)^ 98 Melchior Selected Trust European Absolute Return Fund (Accumulation) 94 Polar Capital Japan I JPY (Distribution) 87 9

12 Financial statements Statement of total return (Unaudited) For the six months ending 31 October Income Net capital gains Revenue Expenses (96) (39) Net revenue/(expenses) before taxation 27 (18) Taxation Net revenue/(expenses) after taxation 27 (18) Total return before distributions Finance costs: Distributions (2) (9) Change in net assets attributable to shareholders from investment activities Balance sheet (Unaudited) As at 31 October April ASSETS Investment assets 12,494 12,176 Debtors Cash and bank balances Total other assets 1, Total assets 13,509 13,016 LIABILITIES Investment liabilities (1) Creditors (60) (567) Total other liabilities (60) (567) Total liabilities (61) (567) Net assets attributable to shareholders 13,448 12,449 Statement of change in net assets attributable to shareholders (Unaudited) For the six months ending 31 October Opening net assets attributable to shareholders 12,449 2,469 Amounts receivable on issue of shares 3,547 5,904 Amounts payable on cancellation of shares (2,695) (133) 852 5,771 Change in net assets attributable to shareholders from investment activities (see above) Closing net assets attributable to shareholders 13,448 8,534 As the comparatives in the above table are for the previous interim period, the net assets at the end of that period will not agree to the net assets at the start of the current period. 10

13 JPM Fusion Conservative Fund Investment objective and policy To provide capital growth by investing primarily in a diversified portfolio of open-ended collective investment schemes. The Fund is a fund of funds which provides a broad exposure to Equity and Equity-Linked Securities, Bonds and other Debt Securities issued globally. The Fund may also have exposure to property, commodities, Emerging Markets, smaller companies, money market instruments, cash and cash equivalents. Typically the Fund s exposure to Equity and Equity-Linked Securities will not exceed 60%. The Fund will invest in collective investment schemes offered by a range of investment managers which may include J.P. Morgan Asset Management and its associates. The Fund may also invest in other Funds of the Company. Collective investment schemes may include Exchange Traded Funds and unregulated collective investment schemes. The Fund may also invest directly in Exchange Traded Commodities, investment trusts, deposits, cash and cash equivalents. The Fund may use Financial Derivative Instruments (derivatives) and forward transactions for Efficient Portfolio Management, including hedging. Subject to at least 60 days notice to Shareholders, the Fund may use derivatives for investment purposes which may change the risk profile of the Fund. Non Sterling assets may be hedged to Sterling at the discretion of the Investment Adviser. Risk profile The Fund will be subject to the risks associated with the underlying funds in which it invests. The value of your investment may fall as well as rise and you may get back less than you originally invested. The value of Equity and Equity-Linked Securities held in the underlying funds may fluctuate in response to the performance of individual companies and general market conditions. The value of Bonds and other Debt Securities held in the underlying funds may change significantly depending on market, economic and interest rate conditions as well as the creditworthiness of the issuer. Issuers of Bonds and other Debt Securities may fail to meet payment obligations (default) or the credit rating of Bonds and other Debt Securities may be downgraded. These risks are typically increased for High Yield Bonds which may also be subject to higher volatility and be more difficult to sell than Investment Grade Bonds. Emerging Markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement practices, poor transparency and greater financial risks. Emerging Market currencies may be subject to volatile price movements. Emerging Market securities may also be subject to higher volatility and be more difficult to sell than non-emerging Market securities. The underlying funds in which the Fund invests may have exposure to commodities which can be very volatile. The value of Exchange Traded Commodities will reflect the price of the underlying commodity or basket of commodities which can be very volatile. Unregulated collective investment schemes are subject to less onerous regulatory supervision than regulated schemes and may be higher risk. To the extent that any underlying assets of the Fund are denominated in a currency other than Sterling and are not hedged back to Sterling, movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that may be used to minimise the effect of currency fluctuations may not always be successful. The underlying funds in which the Fund invests may invest directly in property. Property funds typically have increased liquidity risks as property can be more difficult to buy and sell than other asset classes. In addition, property valuations are typically provided by an independent valuer and are subject to the valuer s opinion and interpretation of prevailing market conditions. If the underlying fund is a forced seller of property then the amount the underlying fund receives for selling an asset may be less than the value assumed in the valuation of that Fund. Please refer to Part 11 of the Prospectus for details of the general risk factors affecting this Fund in addition to the specific risk factors above. Fund review Despite generating a positive return over the six-month period, the Fund underperformed its benchmark. Positive contributions to performance were derived from the portfolio s exposure to the US and Japan, with the latter benefiting from the Bank of Japan s surprise decision to increase monetary stimulus. However, an underweight to core government bonds both in the UK and US materially impacted relative performance as the asset class generated strong gains. This was a key driver of the Fund s underperformance, but with yields so depressed, it is a risk that the portfolios continue to run with. UK equities also struggled over the period, with the FTSE All Share generating a negative return. A slight overweight to the region detracted from relative performance. UK smaller companies continued to suffer from expectations of an upcoming rate hike this acted as a significant headwind to the holding in Aberforth UK Small Companies. Among the non-traditional investments held, Melchior European Absolute Return Fund and JPM Systematic Alpha both outperformed the HFRX Global Hedge Fund Index. The M&G UK Property Fund continues to deliver positive returns and offers diversification to the overall portfolio. Fund outlook Our view of the world remains one of moderate but positive global growth, alongside low inflation. This should prove to be a conducive environment for risk assets and hence we remain overweight equities and credit. However, with low nominal growth rates the global economy becomes prone to external shocks, which are likely to cause the market to question the timing of the next recession. With asset prices having materially appreciated over the past five years, we therefore expect more volatility. While equity markets are likely to move higher, the need to own diversifying assets in one s portfolio becomes more important. 11

14 12 month performance to 31 October JPM Fusion Conservative A-Class Acc 0.6% 3.3% JPM Fusion Conservative B-Class Acc 1.2% 3.6% JPM Fusion Conservative C-Class Acc 1.3% 3.8% Benchmark Index 4.9% 2.3% Six month performance to 31 October 2014 JPM Fusion Balanced A-Class Acc 0.5% JPM Fusion Balanced B-Class Acc 0.8% JPM Fusion Balanced C-Class Acc 0.9% Benchmark Index 3.2% Fund statistics Risk and Reward Profile 4* Fund size 5.9m Benchmark Index 20% FTSE All-Share Index (Net)/ 18% MSCI World ex Europe Index (Net)/ 7% MSCI Europe ex UK Index (Net)/ 5% HFRX Global Hedge Fund GBP Index/ 5% Bloomberg Commodity Index Total Return/ 20% Barclays Global Aggregate ex GBP Index hedged to GBP/ 20% BofA Merrill Lynch Sterling Broad Market Index/ 5% JPMorgan 3 Month Total Return Index Level Sterling Fund charges A-Class Initial 3.00%, Annual 1.50% B-Class Initial Nil, Annual 1.00% C-Class Initial Nil, Annual 0.75% Top ten holdings % JPM Aggregate Bond C GBP Hedged (Distribution)^ 5.1 Fidelity Money Builder Y (Gross Accumulation) 5.0 Liontrust Macro Equity Income I (Accumulation) 4.8 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 4.6 Robeco US Large Cap Equities I USD (Accumulation) 4.6 Polar Capital Japan I JPY (Distribution) 4.3 Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 4.1 BlackRock UK Focus FF (Accumulation) 4.1 Melchior Selected Trust European Absolute Return Fund (Accumulation) 4.1 JPM US Select Equity Plus C GBP (Distribution)^ 4.0 ^ Deemed to be investment in related parties of the ACD Sector breakdown % Equity funds 50.9 Bond funds 26.3 Alternative funds 10.1 Net other assets 6.6 Real Estate funds 3.3 Commodity funds 2.6 Forward currency contracts 0.2 Liquidity funds 0.0 Highest/lowest share price and distribution record Calendar year Highest share price Lowest share price Distribution per share (net) A-Class Accumulation Shares A p 48.20p 0.00p 2014 B 53.03p 50.24p 0.00p A-Class Income Shares A p 48.20p 0.00p 2014 B 53.00p 50.22p 0.00p B-Class Accumulation Shares A p 96.50p 0.00p 2014 B 106.8p 101.2p 0.07p C-Class Accumulation Shares A p 96.55p 0.01p 2014 B 107.2p 101.6p 0.34p C-Class Income Shares A p 96.53p 0.01p 2014 B 106.9p 101.3p 0.34p A A-Class Accumulation Shares, A-Class Income Shares, B-Class Accumulation Shares, C-Class Accumulation Shares and C-Class Income Shares were launched on 18 March B To 31 October You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. * For specific risks, including the risk and reward profile, please refer to the Key Investor information Document (KIID) available on the following website All equity indices stated as Net are calculated net of tax as per the standard published approach by the index vendor unless stated otherwise. All performance returns are calculated using the quoted price of the accumulation shares. Performance returns are in Sterling. Source: J.P. Morgan. 12

15 Portfolio turnover rate % % The portfolio turnover rate (PTR) reflects the total of security purchases and sales (excluding Liquidity funds), less the total of share issues and cancellations, expressed as a percentage of the average daily net asset values over the period. Portfolio transaction costs Broker Commissions Transaction Taxes Total % 0.00% 0.01% % 0.00% 0.00% The percentage figures disclosed above reflect the average broker commissions and transaction taxes suffered since launch divided by the average assets under management over the same period. Net asset values and Ongoing charges Net asset Date value per share class 000 Number of shares Net asset value per share Ongoing charges* A-Class Accumulation Shares ,163, p 2.28% ,427 4,693, p 2.35% ,839 5,460, p 2.31% A-Class Income Shares , p 2.28% , p 2.35% , p 2.31% B-Class Accumulation Shares , p 1.78% , p 1.85% , p 1.81% C-Class Accumulation Shares , p 1.53% ,102 1,056, p 1.60% ,747 1,662, p 1.56% C-Class Income Shares , p 1.53% , p 1.60% , p 1.56% The net asset value and the net asset value per income share are shown ex-dividend. * The Ongoing charges takes into account the ACD fee; the fixed expenses and any other chargeable operating expenses, expressed as a percentage of the average daily net asset values over the period. It also includes a synthetic adjustment of 0.63% ( : 0.67%) for the period in respect of indirect expenses charged within investments in underlying funds. + The Ongoing charges figure has been restated due to an incorrect calculation of the synthetic charge. 13

16 Portfolio statement As at 31 October 2014 Investment Holding Market value 000 Total net assets % Equity funds 50.9% (53.0%) United Kingdom 19.1% (19.9%) Aberforth UK Smaller Companies (Accumulation) 1, BlackRock UK Focus FF (Accumulation) 184, J O Hambro UK Opportunities A GBP (Accumulation) 95, Liontrust Macro Equity Income I (Accumulation) 101, Vanguard FTSE 100 UCITS ETF GBP (Distribution) 6, United States of America 13.2% (13.2%) JPM US Select Equity Plus C GBP (Distribution)^ 2, Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 23, Robeco US Large Cap Equities I USD (Accumulation) 2, Japan 7.7% (4.8%) GLG Japan CoreAlpha Professional D (Distribution) 126, Polar Capital Japan I JPY (Distribution) 25, Europe 7.1% (12.0%) DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) JPM Europe Select Equity C GBP (Distribution)^ 1, TT International Europe Ex UK Equity A GBP (Distribution) 6, Emerging Markets 3.8% (3.9%) Delaware Investments Emerging Markets I USD (Accumulation) 14, Matthews Asia Dividend I GBP (Distribution) 9, Bond funds 26.3% (26.3%) BlackRock US Dollar High Yield Bond GBP Hedged (Distribution) 10, Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 2, Fidelity Money Builder Y (Gross Accumulation) 23, JPM Aggregate Bond C GBP Hedged (Distribution)^ 4, JPM Global Corporate Bond C GBP Hedged (Distribution)^ 2, Neuberger Berman High Yield Bond I GBP (Accumulation) 14, PIMCO UK Corporate Bond Institutional (Accumulation) 11, Alternative funds 10.1% (12.5%) JPM Systematic Alpha C GBP Hedged (Distribution)^ 2, Melchior Selected Trust European Absolute Return Fund (Accumulation) 2, Pioneer Absolute Return Bond I GBP Hedged (Distribution) Real Estate funds 3.3% (3.6%) M&G Property Portfolio I GBP (Accumulation) 16, Commodity funds 2.6% (1.3%) DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 5, ETFS Brent Oil 1 month ETP USD 1, Forward currency contracts 0.2% (0.0%) Euro Sell 68,000 buy 53,887 dated 20/11/14 Japanese Yen Sell 54,000,000 buy 313,414 dated 20/11/ US Dollars Sell $72,000 buy 44,525 dated 20/11/14 Liquidity funds 0.0% (0.4%) JPM Sterling Liquidity X (Distribution)^# 2,876 3 Investment assets 5, Net other assets Net assets 5, Unless otherwise stated all holdings are shares or units in Collective Investment Schemes permitted under the COLL. The comparative percentage figures in brackets are at 30 April ^ Deemed to be investment in related parties of the ACD # Approved security as defined in the Collective Investment Schemes sourcebook 14

17 Portfolio movements For the six months ending 31 October 2014,000 Total of all purchases for the period 2, Total of all sales for the period 1,743 Major purchases Cost JPM US Select Equity Plus C GBP (Distribution)^ 230 JPM US Equity Income C (Accumulation)^ 229 J O Hambro UK Opportunities A GBP (Accumulation) 214 Vanguard FTSE 100 UCITS ETF GBP (Income) 202 JPM Aggregate Bond C GBP Hedged (Distribution)^ 162 Polar Capital Japan I JPY (Distribution) 118 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 111 PIMCO Total Return Bond I GBP Hedged (Distribution) 104 Investec UK Special Situations I (Accumulation) 96 Fidelity Money Builder Y (Gross Accumulation) 93 GLG Japan CoreAlpha Professional D (Distribution) 79 TT International Europe Ex UK Equity A GBP (Distribution) 73 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 71 Delaware Investments Emerging Markets I USD (Accumulation) 69 JPM Global Corporate Bond C GBP Hedged (Distribution)^ 61 Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 59 ETFS Brent Oil 1 month ETP USD 56 JPM Europe Select Equity C GBP (Distribution)^ 56 Liontrust Macro Equity Income I (Accumulation) 53 ishares FTSE 100 UCITS ETF GBP (Distribution) 52 Sales Proceeds JPM US Equity Income C (Accumulation)^ 245 Investec UK Special Situations I (Accumulation) 235 PIMCO Total Return Bond I GBP Hedged (Distribution) 202 JPM US Strategic Growth C GBP (Distribution)^ 194 Schroder Recovery Z (Accumulation) 153 BlackRock Continental Europe Flexible GBP (Distribution) 120 ishares S&P 500 UCITS ETF USD (Accumulation) 108 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 103 JPM Europe Select Equity C GBP (Distribution)^ 89 DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) 58 ishares FTSE 100 UCITS ETF GBP (Distribution) 52 Pioneer Absolute Return Bond I GBP Hedged (Distribution) 51 ishares MSCI Emerging Markets UCITS ETF USD (Distribution) 48 PIMCO UK Corporate Bond Institutional (Accumulation) 38 JPM Sterling Liquidity X (Distribution)^ 18 JPM Systematic Alpha C GBP Hedged (Distribution)^ 15 BlackRock UK Focus FF (Accumulation) 14 ^ Deemed to be investment in related parties of the ACD 15

18 Financial statements Statement of total return (Unaudited) For the six months ending 31 October Income Net capital gains Revenue Expenses (38) (21) Net revenue before taxation 25 1 Taxation Net revenue after taxation 25 1 Total return before distributions Finance costs: Distributions (2) Change in net assets attributable to shareholders from investment activities Balance sheet (Unaudited) As at 31 October April ASSETS Investment assets 5,515 4,701 Debtors Cash and bank balances Total other assets Total assets 5,919 4,816 LIABILITIES Creditors (11) (6) Bank overdraft (7) Distribution payable on income shares (1) Total liabilities (11) (14) Net assets attributable to shareholders 5,908 4,802 Statement of change in net assets attributable to shareholders (Unaudited) For the six months ending 31 October Opening net assets attributable to shareholders 4,802 2,210 Amounts receivable on issue of shares 1,230 1,556 Amounts payable on cancellation of shares (158) 1,072 1,556 Change in net assets attributable to shareholders from investment activities (see above) Closing net assets attributable to shareholders 5,908 3,880 As the comparatives in the above table are for the previous interim period, the net assets at the end of that period will not agree to the net assets at the start of the current period. 16

19 JPM Fusion Growth Fund Investment objective and policy To provide capital growth by investing primarily in a diversified portfolio of open-ended collective investment schemes. The Fund is a fund of funds which provides a broad exposure to Equity and Equity-Linked Securities, Bonds and other Debt Securities issued globally. The Fund may also have exposure to property, commodities, Emerging Markets, smaller companies, money market instruments, cash and cash equivalents. Typically the Fund s exposure to Equity and Equity-Linked Securities will not exceed 85%. The Fund will invest in collective investment schemes offered by a range of investment managers which may include J.P. Morgan Asset Management and its associates. The Fund may also invest in other Funds of the Company. Collective investment schemes may include Exchange Traded Funds and unregulated collective investment schemes. The Fund may also invest directly in Exchange Traded Commodities, investment trusts, deposits, cash and cash equivalents. The Fund may use Financial Derivative Instruments (derivatives) and forward transactions for Efficient Portfolio Management, including hedging. Subject to at least 60 days notice to Shareholders, the Fund may use derivatives for investment purposes which may change the risk profile of the Fund. Non Sterling assets may be hedged to Sterling at the discretion of the Investment Adviser. Risk profile The Fund will be subject to the risks associated with the underlying funds in which it invests. The value of your investment may fall as well as rise and you may get back less than you originally invested. The value of Equity and Equity-Linked Securities held in the underlying funds may fluctuate in response to the performance of individual companies and general market conditions. The value of Bonds and other Debt Securities held in the underlying funds may change significantly depending on market, economic and interest rate conditions as well as the creditworthiness of the issuer. Issuers of Bonds and other Debt Securities may fail to meet payment obligations (default) or the credit rating of Bonds and other Debt Securities may be downgraded. These risks are typically increased for High Yield Bonds which may also be subject to higher volatility and be more difficult to sell than Investment Grade Bonds. Emerging Markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement practices, poor transparency and greater financial risks. Emerging Market currencies may be subject to volatile price movements. Emerging Market securities may also be subject to higher volatility and be more difficult to sell than non-emerging Market securities. The underlying funds in which the Fund invests may have exposure to commodities which can be very volatile. The value of Exchange Traded Commodities will reflect the price of the underlying commodity or basket of commodities which can be very volatile. Unregulated collective investment schemes are subject to less onerous regulatory supervision than regulated schemes and may be higher risk. To the extent that any underlying assets of the Fund are denominated in a currency other than Sterling and are not hedged back to Sterling, movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that may be used to minimise the effect of currency fluctuations may not always be successful. The underlying funds in which the Fund invests may invest directly in property. Property funds typically have increased liquidity risks as property can be more difficult to buy and sell than other asset classes. In addition, property valuations are typically provided by an independent valuer and are subject to the valuer s opinion and interpretation of prevailing market conditions. If the underlying fund is a forced seller of property then the amount the underlying fund receives for selling an asset may be less than the value assumed in the valuation of that Fund. Please refer to Part 11 of the Prospectus for details of the general risk factors affecting this Fund in addition to the specific risk factors above. Fund review Despite generating a positive return over the six-month period, the Fund underperformed its benchmark. Positive contributions to performance were derived from the portfolio s exposure to the US and Japan, with the latter benefiting from the Bank of Japan s surprise decision to increase monetary stimulus. However, an underweight to core government bonds both in the UK and US impacted relative performance as the asset class generated strong gains. This was a key driver of the Fund s underperformance, but with yields so depressed, it is a risk that the portfolios continue to run with. UK equities also struggled over the period, with the FTSE All Share generating a negative return. A slight overweight to the region detracted from relative performance. UK smaller companies continued to suffer from expectations of an upcoming rate hike this acted as a significant headwind to the holding in Aberforth UK Small Companies. Fund selection in the US also proved a notable drag on performance, in particularly the holding in Neuberger Berman US Multi Cap Opportunities, which lagged the S&P 500 materially over the period. Among the non-traditional investments held, Melchior European Absolute Return Fund and JPM Systematic Alpha both outperformed the HFRX Global Hedge Fund Index. Fund outlook Our view of the world remains one of moderate but positive global growth, alongside low inflation. This should prove to be a conducive environment for risk assets and hence we remain overweight equities and credit. However, with low nominal growth rates the global economy becomes prone to external shocks, which are likely to cause the market to question the timing of the next recession. With asset prices having materially appreciated over the past five years, we therefore expect more volatility. While equity markets are likely to move higher, the need to own diversifying assets in one s portfolio becomes more important. 17

20 12 month performance to 31 October JPM Fusion Growth A-Class Acc 1.6% 4.8% JPM Fusion Growth B-Class Acc 2.0% 5.2% JPM Fusion Growth C-Class Acc 2.4% 5.3% Benchmark Index 5.8% 4.0% Six month performance to 31 October 2014 JPM Fusion Balanced A-Class Acc 1.8% JPM Fusion Growth B-Class Acc 2.0% JPM Fusion Growth C-Class Acc 2.2% Benchmark Index 4.2% Fund statistics Risk and Reward Profile 6* Fund size 5.0m Benchmark Index 32% MSCI World ex Europe Index (Net)/ 25% FTSE All-Share Index (Net)/ 13% MSCI Europe ex UK Index (Net)/ 5% HFRX Global Hedge Fund GBP Index/ 5% Bloomberg Commodity Index Total Return/ 15% Barclays Global Aggregate ex GBP Index hedged to GBP/ 5% BofA Merrill Lynch Sterling Broad Market Index Fund charges A-Class Initial 3.00%, Annual 1.50% B-Class Initial Nil, Annual 1.00% C-Class Initial Nil, Annual 0.75% Top ten holdings % Polar Capital Japan I JPY (Distribution) 8.4 JPM US Select Equity Plus C GBP (Distribution)^ 7.1 GLG Japan CoreAlpha Professional D (Distribution) 6.0 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 5.8 TT International Europe Ex UK Equity A GBP (Distribution) 5.6 Vanguard FTSE 100 UCITS ETF GBP (Income) 5.5 BlackRock UK Focus FF (Accumulation) 5.2 Liontrust Macro Equity Income I (Accumulation) 5.0 Aberforth UK Smaller Companies (Accumulation) 4.8 Robeco US Large Cap Equities I USD (Accumulation) 4.7 Sector breakdown % Equity funds 78.3 Net other assets 7.9 Alternative funds 5.5 Bond funds 5.4 Commodity funds 2.5 Forward currency contracts 0.4 Liquidity funds 0.0 Highest/lowest share price and distribution record Calendar year Highest share price Lowest share price Distribution per share (net) A-Class Accumulation Shares A p 48.08p 0.00p 2014 B 54.78p 50.40p 0.00p A-Class Income Shares A p 48.08p 0.00p 2014 B 54.77p 50.40p 0.00p B-Class Accumulation Shares A p 96.27p 0.00p 2014 B 110.4p 101.6p 0.00p C-Class Accumulation Shares A p 96.32p 0.00p 2014 B 110.8p 102.0p 0.00p C-Class Income Shares A p 96.32p 0.00p 2014 B 110.7p 102.0p 0.00p A A-Class Accumulation Shares, A-Class Income Shares, B-Class Accumulation Shares, C-Class Accumulation Shares and C-Class Income Shares were launched on 18 March B To 31 October Portfolio turnover rate % % The portfolio turnover rate (PTR) reflects the total of security purchases and sales (excluding Liquidity funds), less the total of share issues and cancellations, expressed as a percentage of the average daily net asset values over the period. ^ Deemed to be investment in related parties of the ACD You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. * For specific risks, including the risk and reward profile, please refer to the Key Investor information Document (KIID) available on the following website All equity indices stated as Net are calculated net of tax as per the standard published approach by the index vendor unless stated otherwise. All performance returns are calculated using the quoted price of the accumulation shares. Performance returns are in Sterling. Source: J.P. Morgan. 18

21 Portfolio transaction costs Broker Commissions Transaction Taxes Total % 0.00% 0.01% % 0.00% 0.02% The percentage figures disclosed above reflect the average broker commissions and transaction taxes suffered since launch divided by the average assets under management over the same period. Net asset values and Ongoing charges Net asset Date value per share class 000 Number of shares Net asset value per share Ongoing charges* A-Class Accumulation Shares , p 2.42% ,666 3,184, p 2.42% ,845 3,464, p 2.38% A-Class Income Shares , p 2.42% , p 2.42% , p 2.38% B-Class Accumulation Shares , p 1.92% , p 1.92% , p 1.88% C-Class Accumulation Shares , p 1.67% ,107 1,048, p 1.67% ,831 1,699, p 1.63% C-Class Income Shares , p 1.67% , p 1.67% , p 1.63% The net asset value and the net asset value per income share are shown ex-dividend. * The Ongoing charges takes into account the ACD fee; the fixed expenses and any other chargeable operating expenses, expressed as a percentage of the average daily net asset values over the period. It also includes a synthetic adjustment of 0.70% ( : 0.74%) for the period in respect of indirect expenses charged within investments in underlying funds. + The Ongoing charges figure has been restated due to an incorrect calculation of the synthetic charge. 19

22 Portfolio statement As at 31 October 2014 Investment Holding Market value 000 Total net assets % Equity funds 78.3% (80.5%) United Kingdom 24.6% (20.0%) Aberforth UK Smaller Companies (Accumulation) 1, BlackRock UK Focus FF (Accumulation) 201, J O Hambro UK Opportunities Institutional A GBP (Accumulation) 96, Liontrust Macro Equity Income I (Accumulation) 89, Vanguard FTSE 100 UCITS ETF GBP (Income) 9, United States of America 21.2% (28.3%) Edgewood L Select US Select Growth IZ USD 2, JPM US Select Equity Plus C GBP (Distribution)^ 3, Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 24, Robeco US Large Cap Equities I USD (Accumulation) 1, Japan 14.4% (8.1%) GLG Japan CoreAlpha Professional D (Distribution) 188, Polar Capital Japan I JPY (Distribution) 41, Europe 12.3% (19.2%) DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) JPM Europe Select Equity C GBP (Distribution)^ 1, Montanaro European Smaller Companies GBP (Distribution) 33, TT International Europe Ex UK Equity A GBP (Distribution) 11, Emerging Markets 5.8% (4.9%) Delaware Investments Emerging Markets I USD (Accumulation) 31, GAM Star China Equity Institutional GBP (Accumulation) 4, Alternative funds 5.5% (9.2%) JPM Systematic Alpha C GBP Hedged (Distribution)^ 1, Melchior Selected Trust European Absolute Return Fund (Accumulation) 1, Bond funds 5.4% (6.8%) Bluebay Investment Grade Absolute Return Bond B (Distribution) 1, Bluebay Investment Grade Bond C GBP (Distribution) 1, Commodity funds 2.5% (1.6%) DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 4, ETFS Brent Oil 1 month ETC USD 1, Forward currency contracts 0.4% (0.0%) Euro Sell 65,000 buy 51,509 dated 20/11/14 Japanese Yen Sell 88,000,000 buy 510,749 dated 20/11/ US Dollars Sell $60,000 buy 37,104 dated 20/11/14 Liquidity funds 0.0% (0.0%) JPM Sterling Liquidity X (Distribution)^# 1,517 2 Investment assets 4, Net other assets Net assets 5, Unless otherwise stated all holdings are shares or units in Collective Investment Schemes permitted under the COLL. The comparative percentage figures in brackets are at 30 April ^ Deemed to be investment in related parties of the ACD # Approved security as defined in the Collective Investment Schemes sourcebook 20

23 Portfolio movements For the six months ending 31 October 2014,000 Total of all purchases for the period 2, Total of all sales for the period 2,083 Major purchases Cost Vanguard FTSE 100 UCITS ETF GBP (Income) 274 JPM US Select Equity Plus C GBP (Distribution)^ 254 JPM US Equity Income C (Accumulation)^ 221 J O Hambro Capital UK Opportunities A GBP (Accumulation) 216 Polar Capital Japan I JPY (Distribution) 184 GLG Japan CoreAlpha Professional D (Distribution) 168 Edgewood L Select US Select Growth IZ USD 163 TT International Europe Ex UK Equity A GBP (Distribution) 140 Bluebay Investment Grade Bond C GBP (Distribution) 136 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 117 Delaware Investments Emerging Markets I USD (Accumulation) 116 JPM Europe Select Equity C GBP (Distribution)^ 102 Aberforth UK Smaller Companies (Accumulation) 81 PIMCO Total Return Bond I GBP Hedged (Distribution) 73 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 59 Investec UK Special Situations I (Accumulation) 57 BlackRock UK Focus FF (Accumulation) 55 ETFS Brent Oil 1 month ETC USD 47 Liontrust Macro Equity Income I (Accumulation) 47 Robeco US Large Cap Equities I USD (Accumulation) 38 Sales Proceeds JPM US Equity Income C (Accumulation)^ 238 Edgewood US Select Growth I GBP (Accumulation) 205 ishares S&P 500 UCITS ETF USD (Accumulation) 203 Investec UK Special Situations I (Accumulation) 180 PIMCO Total Return Bond I GBP Hedged (Distribution) 143 JPM US Strategic Growth C GBP (Distribution)^ 130 BlackRock Continental Europe Flexible GBP (Distribution) 129 Pioneer Absolute Return Bond I GBP Hedged (Distribution) 118 JPM Europe Select Equity C GBP (Distribution)^ 111 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 109 JPM US Select Equity Plus C GBP (Distribution)^ 101 Fidelity Money Builder Y (Gross Accumulation) 90 Schroder Recovery Z (Accumulation) 68 DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) 60 TT International Europe Ex UK Equity A GBP (Distribution) 59 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 49 Robeco US Large Cap Equities I USD (Accumulation) 49 ishares MSCI Emerging Markets UCITS ETF USD (Distribution) 41 ^ Deemed to be investment in related parties of the ACD 21

24 Financial statements Statement of total return (Unaudited) For the six months ending 31 October Income Net capital gains Revenue 37 7 Expenses (31) (15) Net revenue/(expenses) before taxation 6 (8) Taxation Net revenue/(expenses) after taxation 6 (8) Total return before distributions Finance costs: Distributions (1) Change in net assets attributable to shareholders from investment activities Balance sheet (Unaudited) As at 31 October April ASSETS Investment assets 4,634 3,983 Debtors Cash and bank balances Total other assets Total assets 5,036 4,147 LIABILITIES Creditors (6) (88) Total liabilities (6) (88) Net assets attributable to shareholders 5,030 4,059 Statement of change in net assets attributable to shareholders (Unaudited) For the six months ending 31 October Opening net assets attributable to shareholders 4,059 2,161 Amounts receivable on issue of shares 1, Amounts payable on cancellation of shares (253) (96) Change in net assets attributable to shareholders from investment activities (see above) Closing net assets attributable to shareholders 5,030 2,756 As the comparatives in the above table are for the previous interim period, the net assets at the end of that period will not agree to the net assets at the start of the current period. 22

25 JPM Fusion Growth Plus Fund Investment objective and policy To provide capital growth by investing primarily in a diversified portfolio of open-ended collective investment schemes. The Fund is a fund of funds which provides a broad exposure to Equity and Equity-Linked Securities issued globally. The Fund may also have exposure to Bonds, other Debt Securities, property, commodities, Emerging Markets, smaller companies, money market instruments, cash and cash equivalents. The Fund s exposure to Equity and Equity-Linked Securities may be up to 100%. The Fund will invest in collective investment schemes offered by a range of investment managers which may include J.P. Morgan Asset Management and its associates. The Fund may also invest in other Funds of the Company. Collective investment schemes may include Exchange Traded Funds and unregulated collective investment schemes. The Fund may also invest directly in Exchange Traded Commodities, investment trusts, deposits, cash and cash equivalents. The Fund may use Financial Derivative Instruments (derivatives) and forward transactions for Efficient Portfolio Management, including hedging. Subject to at least 60 days notice to Shareholders, the Fund may use derivatives for investment purposes which may change the risk profile of the Fund. Non Sterling assets may be hedged to Sterling at the discretion of the Investment Adviser Risk profile The Fund will be subject to the risks associated with the underlying funds in which it invests. The value of your investment may fall as well as rise and you may get back less than you originally invested. The value of Equity and Equity-Linked Securities held in the underlying funds may fluctuate in response to the performance of individual companies and general market conditions. The value of Bonds and other Debt Securities held in the underlying funds may change significantly depending on market, economic and interest rate conditions as well as the creditworthiness of the issuer. Issuers of Bonds and other Debt Securities may fail to meet payment obligations (default) or the credit rating of Bonds and other Debt Securities may be downgraded. These risks are typically increased for High Yield Bonds which may also be subject to higher volatility and be more difficult to sell than Investment Grade Bonds. Emerging Markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement practices, poor transparency and greater financial risks. Emerging Market currencies may be subject to volatile price movements. Emerging Market securities may also be subject to higher volatility and be more difficult to sell than non-emerging Market securities. The underlying funds in which the Fund invests may have exposure to commodities which can be very volatile. The value of Exchange Traded Commodities will reflect the price of the underlying commodity or basket of commodities which can be very volatile. Unregulated collective investment schemes are subject to less onerous regulatory supervision than regulated schemes and may be higher risk. To the extent that any underlying assets of the Fund are denominated in a currency other than Sterling and are not hedged back to Sterling, movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that may be used to minimise the effect of currency fluctuations may not always be successful. The underlying funds in which the Fund invests may invest directly in property. Property funds typically have increased liquidity risks as property can be more difficult to buy and sell than other asset classes. In addition, property valuations are typically provided by an independent valuer and are subject to the valuer s opinion and interpretation of prevailing market conditions. If the underlying fund is a forced seller of property then the amount the underlying fund receives for selling an asset may be less than the value assumed in the valuation of that Fund. Please refer to Part 11 of the Prospectus for details of the general risk factors affecting this Fund in addition to the specific risk factors above. Fund review Despite generating a positive return over the six-month period, the Fund underperformed its benchmark. Positive contributions to performance were derived from the portfolio s exposure to the US and Japan, with the latter benefiting from the Bank of Japan s surprise decision to increase monetary stimulus. UK equities also struggled over the period, with the FTSE All Share generating a negative return. A slight overweight to the region detracted from relative performance. UK smaller companies continued to suffer from expectations of an upcoming rate hike this acted as a significant headwind to the holding in Aberforth UK Small Companies. Fund selection in the US also proved a notable drag on performance, in particularly the holding in Neuberger Berman US Multi Cap Opportunities, which lagged the S&P 500 materially over the period. Fund outlook Our view of the world remains one of moderate but positive global growth, alongside low inflation. This should prove to be a conducive environment for risk assets and hence we remain overweight equities and credit. However, with low nominal growth rates the global economy becomes prone to external shocks, which are likely to cause the market to question the timing of the next recession. With asset prices having materially appreciated over the past five years, we therefore expect more volatility. While equity markets are likely to move higher, the need to own diversifying assets in one s portfolio becomes more important. 23

26 12 month performance to 31 October JPM Fusion Growth Plus A-Class Acc 3.4% 5.2% JPM Fusion Growth Plus B-Class Acc 4.0% 5.5% JPM Fusion Growth Plus C-Class Acc 4.2% 5.7% Benchmark Index 7.5% 4.8% Six month performance to 31 October 2014 JPM Fusion Growth Plus A-Class Acc 4.1% JPM Fusion Growth Plus B-Class Acc 4.4% JPM Fusion Growth Plus C-Class Acc 4.5% Benchmark Index 6.3% Fund statistics Risk and Reward Profile 6* Fund size Benchmark Index 7.4m 39% MSCI World ex Europe Index (Net)/ 28% FTSE All-Share Index (Net)/ 18% MSCI Europe ex UK Index (Net)/ 5% HFRX Global Hedge Fund GBP Index/ 5% Bloomberg Commodity Index Total Return/ 5% Barclays Global Aggregate Index hedged to GBP Fund charges A-Class Initial 3.00%, Annual 1.50% B-Class Initial Nil, Annual 1.00% C-Class Initial Nil, Annual 0.75% Top ten holdings % GLG Japan CoreAlpha Professional D (Distribution) 9.1 Polar Capital Japan I JPY (Distribution) 9.0 JPM US Select Equity Plus C GBP (Distribution)^ 8.5 Liontrust Macro Equity Income I (Accumulation) 6.0 BlackRock UK Focus FF (Accumulation) 5.8 Edgewood L Select IZ USD (Distribution) 5.4 Vanguard FTSE 100 UCITS ETF GBP (Distribution) 5.1 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 5.0 J O Hambro Capital UK Opportunities A GBP (Accumulation) 4.9 Delaware Investments Emerging Markets I USD (Accumulation) 4.3 ^ Deemed to be investment in related parties of the ACD Sector breakdown % Equity funds 91.7 Net other assets 5.3 Commodity funds 2.6 Forward currency contracts 0.4 Liquidity funds 0.0 Highest/lowest share price and distribution record Calendar year Highest share price Lowest share price Distribution per share (net) A-Class Accumulation Shares A p 47.97p 0.00p 2014 B 55.92p 51.09p 0.00p A-Class Income Shares A p 47.97p 0.00p 2014 B 55.92p 51.09p 0.00p B-Class Accumulation Shares A p 96.05p 0.00p 2014 B 112.6p 103.0p 0.00p C-Class Accumulation Shares A p 96.11p 0.00p 2014 B 113.1p 103.4p 0.00p C-Class Income Shares A p 96.11p 0.00p 2014 B 113.1p 103.4p 0.00p A A-Class Accumulation Shares, A-Class Income Shares, B-Class Accumulation Shares, C-Class Accumulation Shares and C-Class Income Shares were launched on 18 March B To 31 October Portfolio turnover rate % % The portfolio turnover rate (PTR) reflects the total of security purchases and sales (excluding Liquidity funds), less the total of share issues and cancellations, expressed as a percentage of the average daily net asset values over the period. Portfolio transaction costs Broker Commissions Transaction Taxes Total % 0.00% 0.03% % 0.00% 0.02% The percentage figures disclosed above reflect the average broker commissions and transaction taxes suffered during the last 3 years divided by the average assets under management over the same period. You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. * For specific risks, including the risk and reward profile, please refer to the Key Investor information Document (KIID) available on the following website All equity indices stated as Net are calculated net of tax as per the standard published approach by the index vendor unless stated otherwise. All performance returns are calculated using the quoted price of the accumulation shares. Performance returns are in Sterling. Source: J.P. Morgan. 24

27 Net asset values and Ongoing charges Date Net asset value per share class 000 Number of shares Net asset value per share Ongoing charges* A-Class Accumulation Shares ,091, p 2.45% ,867 7,400, p 2.43% ,954 7,268, p 2.41% A-Class Income Shares , p 2.45% , p 2.43% , p 2.41% B-Class Accumulation Shares , p 1.95% , p 1.93% , p 1.91% C-Class Accumulation Shares , p 1.70% ,923 1,824, p 1.68% ,299 2,087, p 1.66% C-Class Income Shares , p 1.70% , p 1.68% , p 1.66% The net asset value and the net asset value per income share are shown ex-dividend. * The Ongoing charges takes into account the ACD fee; the fixed expenses and any other chargeable operating expenses, expressed as a percentage of the average daily net asset values over the period. It also includes a synthetic adjustment of 0.73% ( : 0.75%) for the period in respect of indirect expenses charged within investments in underlying funds. + The Ongoing charges figure has been restated due to an incorrect calculation of the synthetic charge. 25

28 Portfolio statement As at 31 October 2014 Investment Holding Market value 000 Total net assets % Equity funds 91.7% (93.4%) United States of America 26.6% (43.4%) Edgewood L Select IZ USD (Distribution) 4, ishares Core S&P 500 UCITS ETF USD (Accumulation) 2, JPM US Select Equity Plus C GBP (Distribution)^ 6, Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 31, Robeco US Large Cap Equities I USD (Accumulation) 2, United Kingdom 25.1% (15.0%) Aberforth UK Smaller Companies (Accumulation) 1, BlackRock UK Focus FF (Accumulation) 326, J O Hambro Capital UK Opportunities A GBP (Accumulation) 170, Liontrust Macro Equity Income I (Accumulation) 155, Vanguard FTSE 100 UCITS ETF GBP (Distribution) 12, Japan 18.1% (10.7%) GLG Japan CoreAlpha Professional D (Distribution) 420, Polar Capital Japan I JPY (Distribution) 65, Europe 11.7% (18.7%) DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) 1, JPM Europe Select Equity C GBP (Distribution)^ 3, Montanaro European Smaller Companies GBP (Distribution) 50, TT International Europe Ex UK Equity A GBP (Distribution) 11, Emerging Markets 10.2% (5.6%) Blackrock Emerging Markets Absolute Return GBP (Distribution) 3, Delaware Investments Emerging Markets I USD (Accumulation) 42, GAM Star China Equity Institutional GBP (Accumulation) 12, Commodity funds 2.6% (2.0%) DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 6, ETFS Brent Oil 1 month USD 1, Forward currency contracts 0.4% (0.0%) Euro Sell 130,000 buy 103,019 dated 20/11/14 1 Japanese Yen Sell 161,000,000 buy 934,438 dated 20/11/ US Dollar Sell $535,000 buy 330,843 dated 20/11/14 (3) (0.1) Liquidity funds 0.0% (0.0%) JPM Sterling Liquidity X (Distribution)^# 1,009 1 Investment assets (including investment liabilities) 6, Net other assets Net assets 7, Unless otherwise stated all holdings are shares or units in Collective Investment Schemes permitted under the COLL. The comparative percentage figures in brackets are at 30 April ^ Deemed to be investment in related parties of the ACD # Approved security as defined in the Collective Investment Schemes sourcebook 26

29 Portfolio movements For the six months ending 31 October 2014,000 Total of all purchases for the period 4, Total of all sales for the period 5,245 Major purchases Cost J O Hambro Capital UK Opportunities A GBP (Accumulation) 624 Liontrust Macro Equity Income I (Accumulation) 456 Vanguard FTSE 100 UCITS ETF GBP (Income) 445 JPM US Equity Income C (Accumulation)^ 397 Edgewood L Select IZ USD (Distribution) 363 GLG Japan CoreAlpha Professional D (Distribution) 340 ishares FTSE 100 UCITS ETF GBP (Distribution) 295 ishares MSCI Europe UCITS ETF (Distribution) 270 Blackrock Emerging Markets Absolute Return GBP (Distribution) 266 BlackRock UK Focus FF (Accumulation) 236 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 224 Polar Capital Japan I JPY (Distribution) 197 JPM US Select Equity Plus C GBP (Distribution)^ 138 ishares Core S&P 500 UCITS ETF USD (Accumulation) 115 JPM Europe Select Equity C GBP (Distribution)^ 104 Delaware Investments Emerging Markets I USD (Accumulation) 77 ETFS Brent Oil 1 month USD 75 Robeco US Large Cap Equities I USD (Accumulation) 72 Aberforth UK Smaller Companies (Accumulation) 70 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 41 ^ Deemed to be investment in related parties of the ACD Major Sales Proceeds Edgewood US Select Growth I GBP (Accumulation) 674 ishares FTSE 100 UCITS ETF GBP (Distribution) 547 ishares Core S&P 500 UCITS ETF USD (Accumulation) 524 JPM US Equity Income C (Accumulation)^ 435 Robeco US Large Cap Equities I USD (Accumulation) 408 BlackRock Continental Europe Flexible GBP (Distribution) 272 Neuberger Berman US Multi Cap Opportunities I GBP (Distribution) 272 ishares MSCI Europe UCITS ETF (Distribution) 262 Melchior Selected Trust European Absolute Return Fund (Accumulation) 258 J O Hambro Capital UK Opportunities A GBP (Accumulation) 247 JPM US Strategic Growth C GBP (Distribution)^ 222 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 206 Schroder Recovery Z (Accumulation) 199 BlackRock UK Focus FF (Accumulation) 151 JPM Europe Select Equity C GBP (Distribution)^ 123 DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) 103 JPM US Select Equity Plus C GBP (Distribution)^ 74 Vanguard FTSE 100 UCITS ETF GBP (Income) 69 Polar Capital Japan I JPY (Distribution) 61 Aberforth UK Smaller Companies (Accumulation) 59 27

30 Financial statements Statement of total return (Unaudited) For the six months ending 31 October Income Net capital gains Revenue Expenses (52) (25) Net expenses before taxation (20) (15) Taxation Net expenses after taxation (20) (15) Total return before distributions Finance costs: Distributions 1 (6) Change in net assets attributable to shareholders from investment activities Balance sheet (Unaudited) As at 31 October April ASSETS Investment assets 6,992 7,031 Debtors Cash and bank balances Total other assets Total assets 7,394 7,304 LIABILITIES Investment liabilities (3) Creditors (8) (199) Total other liabilities (8) (199) Total liabilities (11) (199) Net assets attributable to shareholders 7,383 7,105 Statement of change in net assets attributable to shareholders (Unaudited) For the six months ending 31 October Opening net assets attributable to shareholders 7,105 2,196 Amounts receivable on issue of shares 996 2,811 Amounts payable on cancellation of shares (1,032) (6) (36) 2,805 Change in net assets attributable to shareholders from investment activities (see above) Closing net assets attributable to shareholders 7,383 5,238 As the comparatives in the above table are for the previous interim period, the net assets at the end of that period will not agree to the net assets at the start of the current period. 28

31 JPM Fusion Income Fund Investment objective and policy To provide income with the prospect of capital growth by investing primarily in a diversified portfolio of open-ended collective investment schemes. The Fund is a fund of funds which provides a broad exposure to Bonds, other Debt Securities and Equity and Equity-Linked Securities issued globally. The Fund may also have exposure to property, commodities, Emerging Markets, smaller companies, money market instruments, cash and cash equivalents. Typically the Fund s exposure to Equity and Equity-Linked Securities will not exceed 45%. The Fund will invest in collective investment schemes offered by a range of investment managers which may include J.P. Morgan Asset Management and its associates. The Fund may also invest in other Funds of the Company. Collective investment schemes may include Exchange Traded Funds and unregulated collective investment schemes. The Fund may also invest directly in Exchange Traded Commodities, investment trusts, deposits, cash and cash equivalents. The Fund may use Financial Derivative Instruments (derivatives) and forward transactions for Efficient Portfolio Management, including hedging. Subject to at least 60 days notice to Shareholders, the Fund may use derivatives for investment purposes which may change the risk profile of the Fund. Non Sterling assets may be hedged to Sterling at the discretion of the Investment Adviser. Risk profile The Fund will be subject to the risks associated with the underlying funds in which it invests. The value of your investment may fall as well as rise and you may get back less than you originally invested. The value of Bonds and other Debt Securities held in the underlying funds may change significantly depending on market, economic and interest rate conditions as well as the creditworthiness of the issuer. Issuers of Bonds and other Debt Securities may fail to meet payment obligations (default) or the credit rating of Bonds and other Debt Securities may be downgraded. These risks are typically increased for High Yield Bonds which may also be subject to higher volatility and be more difficult to sell than Investment Grade Bonds. The value of Equity and Equity-Linked Securities held in the underlying funds may fluctuate in response to the performance of individual companies and general market conditions. Emerging Markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement practices, poor transparency and greater financial risks. Emerging Market currencies may be subject to volatile price movements. Emerging Market securities may also be subject to higher volatility and be more difficult to sell than non-emerging Market securities. The underlying funds in which the Fund invests may have exposure to commodities which can be very volatile. The value of Exchange Traded Commodities will reflect the price of the underlying commodity or basket of commodities which can be very volatile. This Fund charges the annual fee of the Authorised Corporate Director (ACD) against capital, which will increase the amount of income available for distribution to Shareholders, but may constrain capital growth. It may also have tax implications for certain investors. Unregulated collective investment schemes are subject to less onerous regulatory supervision than regulated schemes and may be higher risk. To the extent that any underlying assets of the Fund are denominated in a currency other than Sterling and are not hedged back to Sterling, movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that may be used to minimise the effect of currency fluctuations may not always be successful. The underlying funds in which the Fund invests may invest directly in property. Property funds typically have increased liquidity risks as property can be more difficult to buy and sell than other asset classes. In addition, property valuations are typically provided by an independent valuer and are subject to the valuer s opinion and interpretation of prevailing market conditions. If the underlying fund is a forced seller of property then the amount the underlying fund receives for selling an asset may be less than the value assumed in the valuation of that Fund. Please refer to Part 11 of the Prospectus for details of the general risk factors affecting this Fund in addition to the specific risk factors above. Fund review Despite generating a positive return over the six-month period, the Fund underperformed its benchmark. Positive contributions to performance were derived from the portfolio s exposure to the US and Japan, with the latter benefiting from the Bank of Japan s surprise decision to increase monetary stimulus. However, an underweight to core government bonds both in the UK and US materially impacted relative performance as the asset class generated strong gains. This was a key driver of the Fund s underperformance, but with yields so depressed, it is a risk that the portfolios continue to run with. UK equities also struggled over the period, with the FTSE All Share generating a negative return. A slight overweight to the region detracted from relative performance. However, this was somewhat offset by strong fund selection, with both Artemis Income and Fidelity Enhanced Income outperforming. Among the non-traditional investments held, Melchior European Absolute Return Fund and JPM Systematic Alpha both outperformed the HFRX Global Hedge Fund Index. The M&G UK Property Fund continues to deliver positive returns and offers diversification to the overall portfolio. Fund outlook Our view of the world remains one of moderate but positive global growth, alongside low inflation. This should prove to be a conducive environment for risk assets and hence we remain overweight equities and credit. However, with low nominal growth rates the global economy becomes prone to external shocks, which are likely to cause the market to question the timing of the next recession. With asset prices having materially appreciated over the past five years, we therefore expect more volatility. While equity markets are likely to move higher, the need to own diversifying assets in one s portfolio becomes more important. 29

32 12 month performance to 31 October JPM Fusion Income A-Class Acc 2.7% 1.8% JPM Fusion Income B-Class Acc 3.0% 2.1% JPM Fusion Income C-Class Acc 3.3% 2.2% Benchmark Index 5.1% 1.9% Six month performance to 31 October 2014 JPM Fusion Income A-Class Acc 1.5% JPM Fusion Income B-Class Acc 1.6% JPM Fusion Income C-Class Acc 1.8% Benchmark Index 3.8% Fund statistics Risk and Reward Profile 4* Fund size 2.5m Benchmark Index 15% FTSE All-Share Index (Net)/ 10% MSCI World ex Europe Index (Net)/ 5% MSCI Europe ex UK Index (Net)/ 10% HFRX Global Hedge Fund GBP Index/ 30% Barclays Global Aggregate ex GBP Index hedged to GBP/ 25% BofA Merrill Lynch Sterling Broad Market Index/ 5% JPMorgan 3 Month Total Return Index Level Sterling Fund charges A-Class Initial 3.00%, Annual 1.50% B-Class Initial Nil, Annual 1.00% C-Class Initial Nil, Annual 0.75% Top ten holdings % Fidelity Money Builder Y GBP (Gross Distribution) 6.7 Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 5.6 JPM Aggregate Bond C GBP Hedged (Distribution)^ 5.4 Neuberger Berman Investment High Yield Bond I GBP (Distribution) 5.2 Muzinich Short Duration High Yield GBP Hedged (Distribution) 4.9 PIMCO UK Corporate Bond Institutional (Accumulation) 4.8 Liontrust Macro Equity Income I (Distribution) 4.7 Bluebay Investment Grade Bond C GBP (Distribution) 4.7 M&G Property Portfolio I GBP (Distribution) 4.6 Fidelity Enhanced Income W (Distribution) 4.2 Sector breakdown % Bond funds 44.8 Equity funds 33.9 Alternative funds 10.7 Net other assets 5.9 Real Estate funds 4.6 Forward currency contracts 0.1 Liquidity funds 0.0 Highest/lowest share price and distribution record Calendar year Highest share price Lowest share price Distribution per share (net) A-Class Accumulation Shares A p 48.32p 0.38p 2014 B 52.80p 50.49p 1.34p A-Class Income Shares A p 48.26p 0.38p 2014 B 51.76p 50.10p 1.32p B-Class Accumulation Shares A p 96.74p 0.80p 2014 B 106.3p 101.4p 2.67p B-Class Income Shares A p 96.62p 0.79p 2014 B 104.2p 100.6p 2.64p C-Class Accumulation Shares A p 96.80p 0.79p 2014 B 106.6p 101.6p 2.69p C-Class Income Shares A p 96.68p 0.79p 2014 B 104.5p 100.8p 2.64p A A-Class Accumulation Shares, A-Class Income Shares, B-Class Accumulation Shares, C-Class Accumulation Shares and C-Class Income Shares were launched on 18 March B To 31 October Portfolio turnover rate % % The portfolio turnover rate (PTR) reflects the total of security purchases and sales (excluding Liquidity funds), less the total of share issues and cancellations, expressed as a percentage of the average daily net asset values over the period. ^ Deemed to be investment in related parties of the ACD You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. * For specific risks, including the risk and reward profile, please refer to the Key Investor information Document (KIID) available on the following website All equity indices stated as Net are calculated net of tax as per the standard published approach by the index vendor unless stated otherwise. All performance returns are calculated using the quoted price of the accumulation shares. Performance returns are in Sterling. Source: J.P. Morgan. 30

33 Portfolio transaction costs Broker Commissions Transaction Taxes Total % 0.02% 0.03% % 0.01% 0.02% The percentage figures disclosed above reflect the average broker commissions and transaction taxes suffered since launch divided by the average assets under management over the same period. Net asset values and Ongoing charges Net asset Date value per share class 000 Number of shares Net asset value per share Ongoing charges* A-Class Accumulation Shares , p 2.12% ,002, p 2.26% ,183, p 2.27% A-Class Income Shares , p 2.12% , p 2.26% , p 2.27% B-Class Accumulation Shares , p 1.62% , p 1.76% , p 1.77% B-Class Income Shares , p 1.62% , p 1.76% , p 1.77% C-Class Accumulation Shares , p 1.37% , p 1.51% , p 1.52% C-Class Income Shares , p 1.37% , p 1.51% , p 1.52% The net asset value and the net asset value per income share are shown ex-dividend. * The Ongoing charges takes into account the ACD fee; the fixed expenses and any other chargeable operating expenses, expressed as a percentage of the average daily net asset values over the period. It also includes a synthetic adjustment of 0.59% ( : 0.58%) for the period in respect of indirect expenses charged within investments in the underlying funds. + The Ongoing charges figure has been restated due to an incorrect calculation of the synthetic charge. 31

34 Portfolio statement As at 31 October 2014 Investment Holding Market value 000 Total net assets % Equity funds 33.9% (35.6%) United Kingdom 15.6% (17.5%) Aberforth UK Smaller Companies (Distribution) Artemis Income I (Accumulation) 29, Fidelity Enhanced Income W (Distribution) 98, Liontrust Macro Equity Income I (Distribution) 64, United States of America 7.0% (8.3%) ishares S&P 500 UCITS ETF USD (Distribution) 5, JPM US Equity C Income (Distribution)^ 51, Emerging Markets 3.9% (4.0%) Delaware Investments Emerging Markets I USD (Accumulation) 3, Matthews Asia Dividend I GBP (Distribution) 6, Europe 3.8% (3.8%) DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) JPM Europe Strategic Dividend C GBP (Distribution)^ Japan 3.6% (2.0%) GLG Japan CoreAlpha Professional D (Distribution) 21, Polar Capital Japan I JPY (Distribution) 5, Bond funds 44.8% (44.5%) Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 1, Bluebay Investment Grade Bond C GBP (Distribution) 1, Fidelity Money Builder Y GBP (Gross Distribution) 144, JPM Aggregate Bond C GBP Hedged (Distribution)^ 2, JPM Global Corporate Bond C GBP Hedged (Distribution)^ 1, Muzinich Short Duration High Yield GBP Hedged (Distribution) 1, Neuberger Berman Investment High Yield Bond I GBP (Distribution) 11, Nordea European High Yield Bond AI GBP (Distribution) 10, PIMCO UK Corporate Bond Institutional (Accumulation) 7, Alternative funds 10.7% (10.7%) JPM Systematic Alpha C GBP Hedged (Distribution)^ Melchior Selected Trust European Absolute Return Fund (Accumulation) Pioneer Absolute Return Bond I GBP Hedged (Distribution) Real Estate funds 4.6% (3.1%) M&G Property Portfolio I GBP (Distribution) 10, Forward currency contracts 0.1% (0.0%) Euro Sell 16,000 buy 12,679 dated 20/11/14 Japanese Yen Sell 9,500,000 buy 55,138 dated 20/11/ Liquidity funds 0.0% (0.3%) JPM Sterling Liquidity X (Distribution)^# 470 Investment assets 2, Net other assets Net assets 2, Unless otherwise stated all holdings are shares or units in Collective Investment Schemes permitted under the COLL. The comparative percentage figures in brackets are at 30 April ^ Deemed to be investment in related parties of the ACD # Approved security as defined in the Collective Investment Schemes sourcebook 32

35 Portfolio movements For the six months ending 31 October 2014,000 Total of all purchases for the period 1, Total of all sales for the period 1,080 Major purchases Cost Fidelity Money Builder Y (Gross Distribution) 170 Neuberger Berman High Yield Bond I GBP (Distribution) 138 Fidelity Enhanced Income W (Distribution) 134 JPM US Equity Income C (Distribution)^ 130 Liontrust Macro Equity Income I (Distribution) 129 M&G Property Portfolio I GBP (Distribution) 113 Aberforth UK Smaller Companies (Distribution) 76 Bluebay Investment Grade Bond C GBP (Distribution) 68 PIMCO Total Return Bond I GBP Hedged (Distribution) 47 Polar Capital Japan I JPY (Distribution) 40 JPM Europe Strategic Dividend C GBP (Distribution)^ 38 M&G Property Portfolio I GBP Hedged (Accumulation) 37 Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 32 JPM Aggregate Bond C GBP Hedged (Distribution)^ 29 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 24 Delaware Investments Emerging Markets I USD (Accumulation) 24 Melchior Selected Trust European Absolute Return Fund (Accumulation) 22 JPM Global Corporate Bond C GBP Hedged (Distribution)^ 19 Artemis Income I (Accumulation) 13 Sales Proceeds PIMCO Total Return Bond I GBP Hedged (Distribution) 139 Fidelity Money Builder Y (Gross Accumulation) 131 JPM US Equity Income C (Accumulation)^ 130 Neuberger Berman High Yield Bond I GBP (Accumulation) 115 Fidelity Enhanced Income W (Accumulation) 115 Liontrust Macro Equity Income I (Accumulation) 112 M&G Property Portfolio I GBP Hedged (Accumulation) 109 Aberforth UK Smaller Companies (Accumulation) 76 JPM US Equity Income C (Distribution)^ 36 ishares MSCI Emerging Markets UCITS ETF USD (Distribution) 24 DB X-Trackers DAX UCITS ETF 1C EUR (Accumulation) 23 Fidelity Enhanced Income W (Distribution) 22 Artemis Income I (Accumulation) 15 JPM Europe Strategic Dividend C GBP (Distribution)^ 15 DB X-Trackers Stoxx Europe 600 Basic Resources UCITS ETF 1C EUR (Accumulation) 12 JPM Sterling Liquidity X (Distribution)^ 6 ^ Deemed to be investment in related parties of the ACD 33

36 Financial statements Statement of total return (Unaudited) For the six months ending 31 October Income Net capital gains Revenue Expenses (16) (14) Net revenue before taxation 25 4 Taxation (3) Net revenue after taxation 22 4 Total return before distributions Finance costs: Distributions (33) (14) Change in net assets attributable to shareholders from investment activities 7 4 Balance sheet (Unaudited) As at 31 October April ASSETS Investment assets 2,389 2,164 Debtors 3 1 Cash and bank balances Total other assets Total assets 2,562 2,313 LIABILITIES Creditors (7) (3) Distribution payable on income shares (15) (13) Total liabilities (22) (16) Net assets attributable to shareholders 2,540 2,297 Statement of change in net assets attributable to shareholders (Unaudited) For the six months ending 31 October Opening net assets attributable to shareholders 2,297 2,039 Amounts receivable on issue of shares Amounts payable on cancellation of shares (33) (3) Change in net assets attributable to shareholders from investment activities (see above) 7 4 Retained distributions on accumulation shares 20 8 Closing net assets attributable to shareholders 2,540 2,205 As the comparatives in the above table are for the previous interim period, the net assets at the end of that period will not agree to the net assets at the start of the current period. 34

37 JPM Portfolio Fund Investment objective and policy To invest in a portfolio of regulated collective investment schemes operated or managed by JPMorgan. The Fund aims to provide capital growth over the long term. The Fund may have exposure to Emerging Markets and smaller companies. The Fund will not invest in schemes falling within paragraph (e) of section 3.9 (unregulated collective investment schemes) without first giving shareholders at least 60 days notice of the intention to do so. See section 11.7 in the Prospectus for the risks of investing in such schemes. The Fund may invest in forward transactions and Financial Derivative Instruments (derivatives) for hedging purposes and for Efficient Portfolio Management. Shareholders will receive at least 60 days notice of any proposed change of use of derivatives within the Fund and will be informed of the potential impact of the change of use on the risk profile of the Fund. Any increased use of derivatives will lead to a commensurate increase in the risks of trading derivatives shown in section 11.6 of the Prospectus. Risk profile The value of your investment may fall as well as rise and you may get back less than you originally invested. The value of Equity and Equity-Linked Securities held in the underlying funds may fluctuate in response to the performance of individual companies and general market conditions. The Fund is likely to have significant exposure to the UK and may therefore be more volatile than more broadly diversified funds. Movements in currency exchange rates can adversely affect the return of your investment. Please refer to Part 11 of the Prospectus for details of the general risk factors affecting this Fund in addition to the specific risk factors above. Fund review Many equity markets around the world reached fresh highs in the second quarter of 2014, thanks to an improving global economic outlook and the still very accommodative monetary policy leaving investors little reason to shift allocations. This was followed by a period of consolidation for many markets as investors weighed up the increasingly uneven global economic recovery. The Fund underperformed its benchmark in the six-month period. On a regional basis, we maintained a significant overweight to the US, which was beneficial as the region was the best performing in sterling terms. Our underweight to the UK, which we increased towards the end of the period, contributed positively as UK equities underperformed. Our underweights to emerging markets and Asia ex Japan detracted as performance surprised on the upside in sterling terms. We moved to a neutral position in emerging markets around the middle of the review period. Relative performance across underlying strategies was mixed, with the strongest outperformance in our US and European holdings, and underperformance in our UK strategies. In the period we exited JPM US Growth and JPM US Value and allocated to the JPM US Equity All Cap Fund. Fund outlook We expect US economic growth to be above trend in the next 12 months, while growth in Europe and Japan is likely to remain weak. The prospect of higher US rates at the same time as the European Central Bank and Bank of Japan are adding stimulus compounds policy and growth divergence. Quantitative easing has introduced uncertainties, which may eventually constrain potential growth. This fragility is most apparent today in emerging markets, where the unwinding of rapid credit expansion could weigh on emerging market assets in the next 12 months. 12 month performance to 31 October JPM Portfolio Fund A-Class Acc 3.4% 29.0% 6.6% -0.1% 15.0% JPM Portfolio Fund B-Class Acc 3.9% JPM Portfolio Fund C-Class Acc 4.2% Benchmark Index 5.0% 23.9% 9.5% 0.4% 17.4% Six month performance to 31 October 2014 JPM Portfolio Fund A-Class Acc 2.9% JPM Portfolio Fund B-Class Acc 3.2% JPM Portfolio Fund C-Class Acc 3.2% Benchmark Index 3.4% Fund statistics Risk and Reward Profile 6* Fund size Benchmark Index 60.7m 50% FTSE All-Share Index (Net)/ 50% FTSE World ex-uk Index (Net) Fund charges A-Class Initial 3.00%, Annual 1.50% B-Class Initial Nil, Annual 1.00% C-Class Initial Nil, Annual 0.75% You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. * For specific risks, including the risk and reward profile, please refer to the Key Investor information Document (KIID) available on the following website All performance returns are calculated using the quoted price of the accumulation shares. Performance returns are in Sterling. Source: J.P. Morgan. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. 35

38 Top ten holdings % JPM US Equity All Cap A USD (Distribution)^ 19.3 JPM UK Dynamic A (Accumulation)^ 12.4 JPM UK Focus A (Accumulation)^ 11.4 JPM UK Active Index Plus E (Accumulation)^ 10.9 JPM UK Strategic Equity Income A (Accumulation)^ 10.6 JPM US Select Equity A USD (Distribution)^ 9.9 JPM Europe Equity Plus A GBP (Distribution)^ 6.0 JPM Japan Strategic Value A GBP (Distribution)^ 5.0 JPM Europe Strategic Dividend A EUR (Distribution)^ 4.6 JPM Europe Select Equity A EUR (Distribution)^ 3.5 ^ Deemed to be investment in related parties of the ACD Sector breakdown % Equity funds 98.1 Net other assets 1.8 Futures 0.1 Highest/lowest share price and distribution record Calendar year Highest share price Lowest share price Distribution per share (net) A-Class Accumulation Shares p 79.41p 0.00p p 113.8p 0.00p p 115.8p 1.00p p 127.6p 0.59p p 145.9p 2.19p 2014 A 191.2p 172.5p 1.96p B-Class Accumulation Shares B p 142.1p p 145.9p 1.83p 2014 A 191.9p 173.2p 2.56p C-Class Accumulation Shares C p 169.4p 2014 A 192.5p 173.8p 2.67p A To 31 October B B-Class Accumulation Shares were launched on 3 December C C-Class Accumulation Shares were launched on 19 July Portfolio turnover rate % % The portfolio turnover rate (PTR) reflects the total of security purchases and sales (excluding Liquidity funds), less the total of share issues and cancellations, expressed as a percentage of the average daily net asset values over the period. Portfolio transaction costs Broker Commissions Transaction Taxes Total % 0.00% 0.00% % 0.00% 0.00% The percentage figures disclosed above reflect the average broker commissions and transaction taxes suffered during the last 3 years divided by the average assets under management over the same period. Net asset values and Ongoing charges Net asset Date value per share class 000 Number of shares Net asset value per share Ongoing charges* A-Class Accumulation Shares ,777 34,251, p 2.13% D 53,629 32,569, p 1.94% ,486 31,111, p 1.96% ,540 29,729, p 1.97% B-Class Accumulation Shares D 3 2, p 1.44% , p 1.46% , p 1.47% C-Class Accumulation Shares , , p 1.21% ,058 2,685, p 1.22% D With effect from 1 December 2012 the accounting reference date changed from 31 January to 30 April. The net asset value and the net asset value per income share are shown ex-dividend. * The Ongoing charges takes into account the ACD fee; the fixed expenses and any other chargeable operating expenses, expressed as a percentage of the average daily net asset values over the period. It also includes a synthetic adjustment of 0.29% ( : 0.28%) for the period in respect of indirect expenses charged within investments in the underlying Funds. + The Ongoing charges figure has been restated due to an incorrect calculation of the synthetic charge. 36

39 Portfolio statement As at 31 October 2014 Investment Holding Market value 000 Total net assets % Equity funds 98.1% (95.5%) United Kingdom 45.3% (47.3%) JPM UK Active Index Plus E (Accumulation)^ 2,471,632 6, JPM UK Dynamic A (Accumulation)^ 5,287,100 7, JPM UK Focus A (Accumulation)^ 9,793,585 6, JPM UK Strategic Equity Income A (Accumulation)^ 4,465,751 6, United States of America 29.2% (26.9%) JPM US Equity All Cap A USD (Distribution)^ 189,772 11, JPM US Select Equity A USD (Distribution)^ 52,854 5, Europe 14.1% (14.9%) JPM Europe Equity Plus A GBP (Distribution)^ 385,023 3, JPM Europe Select Equity A EUR (Distribution)^ 36,368 2, JPM Europe Strategic Dividend A EUR (Distribution)^ 32,002 2, Japan 5.0% (6.4%) JPM Japan Strategic Value A GBP (Distribution)^ 50,871 3, Emerging Markets 2.3% (0.0%) JPM Emerging Markets Opportunities A GBP (Distribution)^ 22,989 1, Asia 2.2% (1.0%) JPM Asia Pacific Strategy Equity A USD (Distribution)^ 20,271 1, Futures 0.1% ((0.2)%) Euro Stoxx 50 Futures Dec (7) FTSE 100 Index Futures Dec 2014 (65) Hang Seng Index Futures Nov Russell 2000 Mini Futures Dec 2014 (12) (2) S&P 500 E-Mini Futures Dec S&P/TSX 60 IX Futures Dec (97) (0.2) SPI 200 Futures Dec 2014 (8) (32) (0.1) Topix Index Futures Dec Investment assets (including investment liabilities) 59, Net other assets 1, Net assets 60, Unless otherwise stated all holdings are shares or units in Collective Investment Schemes permitted under the COLL. The comparative percentage figures in brackets are at 30 April ^ Deemed to be investment in related parties of the ACD 37

40 Portfolio movements For the six months ending 31 October 2014,000 Total of all purchases for the period 16, Total of all sales for the period 14,644 Purchases Cost JPM US Equity All Cap A USD (Distribution)^ 11,446 JPM Europe Select Equity A EUR (Distribution)^ 2,183 JPM Emerging Markets Opportunities A GBP (Distribution)^ 1,465 JPM UK Strategic Equity Income A (Accumulation)^ 681 JPM Asia Pacific Strategy Equity A USD (Distribution)^ 662 JPM UK Dynamic A (Accumulation)^ 63 JPM US Strategic Growth A USD (Distribution)^ 61 JPM UK Focus A (Accumulation)^ 57 Sales Proceeds JPM US Strategic Growth A USD (Distribution)^ 5,707 JPM US Value A GBP (Distribution)^ 5,702 JPM Europe Strategic Dividend A EUR (Distribution)^ 1,493 JPM Japan Strategic Value A GBP (Distribution)^ 984 JPM Europe Equity Plus A GBP (Distribution)^ 672 JPM Emerging Markets Opportunities A GBP (Distribution)^ 86 ^ Deemed to be investment in related parties of the ACD 38

41 Financial statements Statement of total return (Unaudited) For the six months ending 31 October Income Net capital gains 1,606 5,227 Revenue Expenses (493) (472) Net revenue/(expenses) before taxation 142 (33) Taxation Net revenue/(expenses) after taxation 142 (33) Total return before distributions 1,748 5,194 Finance costs: Distributions 5 Change in net assets attributable to shareholders from investment activities 1,753 5,194 Balance sheet (Unaudited) As at 31 October April ASSETS Investment assets 59,748 56,346 Debtors Cash and bank balances 1,620 2,034 Total other assets 1,762 2,344 Total assets 61,510 58,690 LIABILITIES Investment liabilities (138) (176) Creditors (692) (210) Total other liabilities (692) (210) Total liabilities (830) (386) Net assets attributable to shareholders 60,680 58,304 Statement of change in net assets attributable to shareholders (Unaudited) For the six months ending 31 October Opening net assets attributable to shareholders 58,304 53,632 Amounts receivable on issue of shares 3,768 2,097 Amounts payable on cancellation of shares (3,144) (1,986) Change in net assets attributable to shareholders from investment activities (see above) 1,753 5,194 Stamp duty reserve tax (1) (7) Closing net assets attributable to shareholders 60,680 58,930 As the comparatives in the above table are for the previous interim period, the net assets at the end of that period will not agree to the net assets at the start of the current period. 39

42 Aggregated Company financial statements Aggregated statement of total return (Unaudited) For the six months ending 31 October Income Net capital gains 2,170 6,235 Revenue Expenses (726) (659) Net revenue before taxation Taxation (3) (16) Net revenue after taxation Total return before distributions 2,372 6,354 Finance costs: Distributions (29) (223) Change in net assets attributable to shareholders from investment activities 2,343 6,131 Aggregated balance sheet (Unaudited) As at 31 October April ASSETS Investment assets 91,772 86,401 Debtors Cash and bank balances 3,697 3,173 Total other assets 4,158 3,888 Total assets 95,930 90,289 LIABILITIES Investment liabilities (142) (176) Creditors (784) (1,076) Bank overdraft (7) Distribution payable on income shares (15) (14) Total other liabilities (799) (1,097) Total liabilities (941) (1,273) Aggregated statement of change in net assets attributable to shareholders (Unaudited) For the six months ending 31 October Opening net assets attributable to shareholders 89,016 98,073 Amounts receivable on issue of shares 10,926 13,296 Amounts payable on cancellation of shares (7,315) (36,173) 3,611 (22,877) Change in net assets attributable to shareholders from investment activities (see above) 2,343 6,131 Retained distributions on accumulation shares Stamp duty reserve tax (1) (7) Closing net assets attributable to shareholders 94,989 81,545 As the comparatives in the above table are for the previous interim period, the net assets at the end of that period will not agree to the net assets at the start of the current period. Net assets attributable to shareholders 94,989 89,016 Accounting policies The interim financial statements of each of the sub-funds have been prepared in accordance with the Statement of Recommended Practice (SORP) for Authorised Funds issued by the Investment Management Association in October Under SORP 2010 there is no longer requirement to disclose the Portfolio turnover rate figure, however this figure is still being disclosed to provide shareholders with additional information. Other accounting policies applied are consistent with those of the annual financial statements for the year ending 30 April 2014 and are described in those financial statements. The Aggregated Financial Statements represent the summation of the financial statements for each of the sub-funds. This report has been prepared in accordance with the Financial Conduct Authority s Collective Investment Schemes Sourcebook and was approved by the Authorised Corporate Director on 9 December Dan Watkins Director JPMorgan Funds Limited 9 December 2014 Tanaquil McDowall Director JPMorgan Funds Limited 9 December

43 Printed on Magno Satin which contains material from well-managed forests and controlled sources and is produced at a mill that holds the ISO certificate for environmental management. The pulps used in the manufacture are a combination of ECF and TCF pulps.

44 Who to contact Intermediaries If you are an investor with us please call Lines are open 9.00am to 5.30pm Monday to Friday. Telephone lines are recorded to ensure compliance with our legal and regulatory obligations and internal policies. Issued by JPMorgan Funds Limited which is authorised and regulated by the Financial Conduct Authority. Registered in Scotland No: SC Registered address: 3 Lochside View, Edinburgh Park, Edinburgh EH12 9DH. GB 12/14