Interim Report & Accounts (Unaudited) JPMorgan Fund III ICVC

Transcription

1 Interim Report & Accounts JPMorgan Fund III ICVC 31 October 2013

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3 Contents Authorised Corporate Director s (ACD) Report 2 Investment Adviser s Report for the six months ending 31 October Find out how the markets have performed over the six months ending 31 October 2013 JPM Fusion Balanced Fund 4-9 JPM Fusion Conservative Fund JPM Fusion Growth Fund JPM Fusion Growth Plus Fund JPM Fusion Income Fund JPM Institutional Balanced Fund JPM Portfolio Fund Aggregated Company financial statements 41 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 2013, 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 six months ending 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 Services 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 seven sub-funds. Its registration number is IC and its registered address is Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ. Structure & Liabilities The assets of each sub-fund are treated as separate from those of every other sub-fund 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. Each sub-fund has a specific portfolio of securities to which its assets and liabilities are attributable. So far as shareholders are concerned each sub-fund is managed as a separate entity. However, if the assets of any sub-fund were insufficient to meet the liabilities attributable to it, the shortfall may have to be met out of the assets attributable to the other sub-funds in the Company. In the event of this happening, the ACD would advise shareholders as soon as possible. Each sub-fund has different classes of shares which are applicable to different types of investors. 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. Changes to the Prospectus The prospectus has been amended in order to comply with regulations introducing a protected cell regime. This wording states that the assets of the sub-funds belong exclusively to that subfund and are not available to discharge the liabilities of any other sub-fund or any claim against the Company. JPM Fusion Balanced Fund, JPM Fusion Conservative Fund, JPM Fusion Growth Fund and JPM Fusion Growth Plus Fund On 9 December 2013 the Board approved a change to a component index that makes up part of the composite benchmark of the above funds. The HFRX Global Hedge Index will change to the HFRX Global Hedge Fund GBP Index with effect from 1 January 2014 this index will continue to make up 5% of the composite benchmark. JPM Fusion Income Fund On 9 December 2013 the Board approved a change to a component index that makes up part of the composite benchmark of this fund. The HFRX Global Hedge Index will change to the HFRX Global Hedge Fund GBP Index with effect from 1 January 2014 this index will continue to make up 10% of the composite benchmark. 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. 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 by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority) Independent Auditors PricewaterhouseCoopers LLP Erskine House, Queen Street, Edinburgh, EH2 4NH 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, Mr Peter Schwicht Director JPMorgan Funds Limited 9 December 2013 Mr Dan Watkins Director JPMorgan Funds Limited 9 December

5 Investment Adviser s Report for the six months ending 31 October 2013 Market review Global equities outperformed fixed income in the six-month period to the end of October, with the MSCI World Index up 5.2%, compared to the JP Morgan GBI Global Index s 2.4% decline, both in sterling terms (source: Factset, as at 31 October 2013). Investor sentiment in the six-month period to the end of October was shaped primarily by growing speculation that the US Federal Reserve ( Fed ) would begin tapering its asset purchases. Uncertainty about the potential timing of the withdrawal of monetary stimulus was sparked by Fed chairman Ben Bernanke s comments in May that bond buying could be scaled back in the next few meetings of the Federal Open Market Committee. As improving economic indicators particularly the falling US unemployment rate pointed to a more entrenched US recovery, the vast majority of market participants became convinced that the Fed would taper in September. As a result, Bernanke s decision in September to leave unchanged the Fed s asset purchase programme took markets by surprise. The speculation about the scaling back of the Fed s monetary support that provided the market backdrop for the period had negative effect on the fixed income markets. Faced with the prospect of the Fed reducing its bond purchases, which would drive down bond prices, investors rushed to sell their bond holdings. Yields on US, UK and German government bonds rose significantly, while emerging market debt investors suffered sizeable losses. The sell-off in emerging market debt continued for most of the period. While corporate bonds were also adversely affected, losses were less severe. US, European and Japanese equity markets, on the other hand, made strong gains in the six months to the end of October. Although unemployment remained at a record high in the eurozone, investor sentiment on the region became more positive, particularly as purchasing managers indices reflected expanding manufacturing activity. In the second quarter, the eurozone economy finally emerged from recession after 18 months of contraction, while data towards the end of the period suggested the UK was recovering at a faster than expected rate. US equities were the top performers as the US economy continued to lead the developed world recovery. Although congressional wrangling over the raising of the debt ceiling led to a government shutdown that brought with it increased uncertainty, the effect on equities was muted. Japanese equities were boosted by the positive effects of prime minister Shinzo Abe s reform programme aimed at raising the rate of consumer price inflation to 2% in 2 years. Emerging market equities, and companies with earnings linked to commodity prices in particular, suffered significant losses. The gold price, which has been a significant beneficiary of the ultra loose monetary policy of developed world central banks, fell sharply in June as speculation about potential Fed tapering grew. Market outlook Investors are looking ahead with a mixture of excitement and trepidation. There is excitement because of the better economic growth in the US and in Europe, as well as the improving outlook for corporate earnings growth that should support developed equity markets. However, there is trepidation due to concerns over how bond markets will react once the Fed begins to wind down its quantitative easing program. Themes that are likely to continue from 2013 include a gradual increase in long-term government bond yields, positive US equity market performance, accelerating eurozone economic growth and the case for investing in emerging market economies, underpinned by a long-term structural growth story. Investors are expected to keep a close eye on developments in US-Iran relations, as well as the progress made by Chinese authorities in implementing the reform programme that they have set out. While the planned reforms can be regarded as a good first step towards achieving economic stability, the failure to implement them could have negative effects on both the Chinese and the global economy. JPMorgan Asset Management (UK) Limited December

6 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. 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 The Fund generated a positive return over the six-month period. Returns were driven by strong equity markets and good fund selection. Fund selection in UK equity was particularly strong, with holdings such as Aberforth UK Small Companies and Schroder UK Recovery significantly outperforming the FTSE All-Share. Despite some broader emerging markets performing poorly, funds such as Delaware Investments Emerging Markets and GAM Star China Equity Institutional proved resilient and notably outperformed the MSCI Emerging Markets over the period. High yield bonds performed well, outperforming government bonds in the risk-on environment in the third quarter. The introduction of the RWC Convertible Bond Fund also proved a timely purchase as it has generated strong returns since purchase. Fund selection in fixed income was positive, with Neuberger Berman High Yield Bond enjoying a strong period. Fund outlook Although risk assets performed strongly over the period, we still believe there is scope for further gains into 2014 but with increased volatility. As such, we have allowed cash levels to build up moderately. Equity markets valuations have re-rated upwards towards long-term averages. Gains from here are likely to be driven predominately by earnings growth as opposed to a further re-rating. The Federal Reserve s decision not to scale back its monthly bond purchases has given some respite to the relentless rise in government bond yields since late May. We believe tapering is now largely priced in and that government bonds will begin to trade more on the economic fundamentals. A low growth and low inflationary world remains an ideal environment for credit. Credit spreads have the ability to narrow from the current levels, although we expect the coupon to account for the majority of the return. Challenges remain ahead, not least another round of US debt ceiling debates. Therefore, we continue to add to positions in liquid alternatives, as these non-correlated strategies provide much welcome diversification. 4

7 Performance as at 31 October 2013 Since launch 18 March 2013 JPM Fusion Balanced A-Class Acc 3.6% JPM Fusion Balanced B-Class Acc 3.9% JPM Fusion Balanced C-Class Acc 4.0% Benchmark Index 3.0% Six month performance to 31 October 2013 JPM Fusion Balanced A-Class Acc 3.4% JPM Fusion Balanced B-Class Acc 3.7% JPM Fusion Balanced C-Class Acc 3.8% Benchmark Index 2.6% Fund statistics Risk and Reward Profile 5* Fund size 8.5m Benchmark Index 35% MSCI World ex UK Index (Net)/ 20% FTSE All-Share Index (Net)/ 5% Dow Jones-UBS Commodity Index Total Return/ 15% BofA Merrill Lynch Sterling Broad Market Index/ 5% JPMorgan 3 Month Total Return Index Level Sterling/ 5% HFRX Global Hedge Fund Index/ 15% Barclays Global Aggregate ex GBP 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 % Neuberger High Yield Bond I GBP (Accumulation) 5.3 Robeco US Large Cap Equities I USD (Accumulation) 5.2 JPM Europe Select Equity C GBP (Distribution)^ 4.8 JPM US Strategic Growth C GBP (Distribution)^ 4.6 BlackRock UK Focus FF (Accumulation) 4.4 JPM US Select Equity Plus C GBP (Distribution)^ 4.3 Fidelity Money Builder Y (Gross Accumulation) 3.9 ishares FTSE 100 UCITS ETF GBP (Distribution) 3.9 Liontrust Macro Equity Income I (Accumulation) 3.7 PIMCO Total Return Bond I GBP Hedged (Distribution) 3.5 Geographical breakdown % Fixed Interest 25.7 United Kingdom 20.8 United States of America 19.7 Europe 11.8 Global 7.8 Asia 3.7 Japan 2.7 Liquidity funds 0.0 Net other assets 7.8 Highest/lowest share price and distribution record Distribution Highest Lowest per share Calendar year share price share price (net) A-Class Accumulation Shares A 2013 B 51.78p 48.04p 0.00p A-Class Income Shares A 2013 B 51.77p 48.03p 0.00p B-Class Accumulation Shares A 2013 B 103.9p 96.18p 0.00p C-Class Accumulation Shares A 2013 B 104.0p 96.23p 0.00p C-Class Income Shares A 2013 B 104.0p 96.24p 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, 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. 5

8 Net asset values and Ongoing charges Net asset value per Net asset share class Number value per Ongoing Date 000 of shares share charges A-Class Accumulation Shares ,594, p 2.31% ,300 10,203, p 2.50% A-Class Income Shares C , p 2.31% , p 2.50% B-Class Accumulation Shares , p 1.81% , p 2.00% C-Class Accumulation Shares , p 1.56% ,968 1,886, p 1.75% C-Class Income Shares C , p 1.56% , p 1.75% C The net asset value and the net asset value per income share are shown ex-dividend at the financial year end. 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 0.82% (30 April 2013: 0.63%) for the period in respect of indirect expenses charged within investments in underlying funds. 6

9 Portfolio statement As at 31 October 2013 Market value Total net Investment Holding 000 assets % Equities 66.5% (64.5%) United Kingdom 20.8% (21.1%) Aberforth UK Smaller Companies (Accumulation) 1, BlackRock UK Focus FF (Accumulation) 276, Investec UK Special Situations I (Accumulation) 164, ishares FTSE 100 UCITS ETF GBP (Distribution) 49, Liontrust Macro Equity Income I (Accumulation) 111, Schroder Recovery Z (Accumulation) 236, United States of America 19.7% (17.5%) ishares S&P 500 UCITS ETF USD (Accumulation) 9, JPM US Strategic Growth C GBP (Distribution)^ 4, JPM US Select Equity Plus C GBP (Distribution)^ 4, Robeco US Large Cap Equities I USD (Accumulation) 4, T.Rowe Price US Smaller Companies Equity Q GBP (Accumulation) 16, Europe 11.8% (9.9%) BlackRock Continental Europe Flexible GBP (Distribution) 17, DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 7, JPM Europe Select Equity C GBP (Distribution)^ 4, Melchior Selected Trust European D GBP (Accumulation) 1, Global 7.8% (8.0%) Delaware Investments Emerging Markets I USD (Accumulation) 16, JPM Systematic Alpha C GBP Hedged (Distribution)^ 3, RWC Global Convertibles Institutional B GBP (Accumulation) Asia 3.7% (5.1%) Aberdeen Asia Pacific I (Accumulation) 50, GAM Star China Equity Institutional GBP (Accumulation) 4, T.Rowe Asian Ex-Japan Equity Q USD (Accumulation) 26, Japan 2.7% (2.9%) Polar Capital Japan I JPY (Distribution) 21, Fixed Interest 25.7% (31.9%) Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 1, Fidelity Money Builder Y (Gross Accumulation) 28, ishares UK Gilts UCITS ETF GBP (Distribution) 19, JPM Aggregate Bond C GBP Hedged (Distribution)^ 2, Neuberger High Yield Bond I GBP (Accumulation) 33, PIMCO Total Return Bond I GBP Hedged (Distribution) 30, PIMCO UK Corporate Bond Institutional (Accumulation) 17, Pioneer Absolute Return Bond I GBP Hedged (Distribution) Forward currency contracts 0.0% (0.1%) Japanese Yen Sell 37,000,000 buy 232,384 dated 12/12/13 (3) Liquidity funds 0.0% (0.0%) JPM Sterling Liquidity X (Distribution)^$ 1,031 1 Investment assets (including investment liabilities) 7, Net other assets Net assets 8, Unless otherwise stated the above securities are admitted to official stock exchange listings or trade on a regulated market. 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 7

10 Portfolio movements For the six months ending 31 October Total of all purchases for the period 6, Total of all sales for the period 1,569 Major Purchases Cost ishares FTSE 100 UCITS ETF GBP (Distribution) 438 Neuberger High Yield Bond I GBP (Accumulation) 340 Robeco US Large Cap Equities I USD (Accumulation) 340 ishares S&P 500 UCITS ETF USD (Distribution) 305 JPM Europe Select Equity C GBP (Distribution)^ 301 Liontrust Macro Equity Income I (Accumulation) 296 JPM US Strategic Growth C GBP (Distribution)^ 277 PIMCO Total Return Bond I GBP Hedged (Distribution) 260 ishares S&P 500 UCITS ETF USD (Accumulation) 257 JPM US Select Equity Plus C GBP (Distribution)^ 247 RWC Global Convertibles Institutional B GBP (Accumulation) 242 BlackRock UK Focus FF (Accumulation) 237 Pioneer Absolute Return Bond I GBP Hedged (Distribution) 236 Polar Capital Japan I JPY (Distribution) 233 Fidelity Money Builder Y (Gross Accumulation) 230 Aberforth UK Smaller Companies (Accumulation) 205 Melchior Selected Trust European D GBP (Accumulation) 205 JPM Systematic Alpha C GBP Hedged (Distribution)^ 189 PIMCO UK Corporate Bond Institutional (Accumulation) 183 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 169 Sales Proceeds ishares S&P 500 UCITS ETF USD (Distribution) 412 ishares FTSE 100 UCITS ETF GBP (Distribution) 279 ishares MSCI Japan UCITS ETF JPY (Distribution) 136 Pimco Emerging Markets Institutional Sterling Hedge (Income) 126 Artemis UK Smaller Companies I (Accumulation) 124 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 107 Eaton Vance International Global Macro Equity I2 GBP (Accumulation) 104 ishares MSCI Emerging Markets UCITS ETF USD (Distribution) 103 Pictet Emerging Local Currency Debt Retail Fund P GBP (Distribution) 96 PIMCO Total Return Bond I GBP Hedged (Distribution) 82 ^ Deemed to be investment in related parties of the ACD 8

11 Financial statements Statement of total return For the six months ending 31 October Income Net capital gains 321 Revenue 21 Expenses (39) Net expenses before taxation (18) Taxation Net expenses after taxation (18) Total return before distributions 303 Finance costs: Distributions (9) Change in net assets attributable to shareholders from investment activities 294 Balance sheet As at 31 October April ASSETS Investment assets 7,874 2,383 Debtors Cash and bank balances Total other assets Total assets 8,699 2,482 LIABILITIES Investment liabilities (3) Creditors (162) (13) Total other liabilities (162) (13) Total liabilities (165) (13) Statement of change in net assets attributable to shareholders For the six months ending 31 October Opening net assets attributable to shareholders 2,469 Amounts receivable on issue of shares 5,904 Amounts payable on cancellation of shares (133) 5,771 Change in net assets attributable to shareholders from investment activities (see above) 294 Closing net assets attributable to shareholders 8,534 Net assets attributable to shareholders 8,534 2,469 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. 9

12 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. 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 The Fund generated a positive return over the six-month period. Returns were driven by strong equity markets and good fund selection. Fund selection in UK equity was particularly strong, with holdings such as Aberforth UK Small Companies and Schroder UK Recovery significantly outperforming the FTSE All-Share. High yield bonds performed well, notably outperforming government bonds in the risk-on environment in the third quarter. The introduction of the RWC Convertible Bond Fund also proved a timely purchase as it has generated strong returns since purchase. This was financed by fully redeeming our emerging market debt holdings at the start of the summer. Fund selection in fixed income was positive, with Neuberger Berman High Yield Bond enjoying a strong period. Fund outlook Although risk assets performed strongly over the period, we still believe there is scope for further gains into 2014 but with increased volatility. As such, we have allowed cash levels to build up moderately. Equity markets valuations have re-rated upwards towards long-term averages. Gains from here are likely to be driven predominately by earnings growth as opposed to a further rerating. The Federal Reserve s decision not to scale back its monthly bond purchases has given some respite to the relentless rise in government bond yields since late May. We believe tapering is now largely priced in and that government bonds will begin to trade more on the economic fundamentals. A low growth and low inflationary world remains an ideal environment for credit. Credit spreads have the ability to narrow from the current levels, although we expect the coupon to account for the majority of the return. Challenges remain ahead, not least another round of US debt ceiling debates. Therefore, we continue to add to positions in liquid alternatives, as these noncorrelated strategies provide much welcome diversification. 10

13 Performance as at 31 October 2013 Since launch 18 March 2013 JPM Fusion Conservative A-Class Acc 3.3% JPM Fusion Conservative B-Class Acc 3.6% JPM Fusion Conservative C-Class Acc 3.8% Benchmark Index 2.3% Six month performance to 31 October 2013 JPM Fusion Conservative A-Class Acc 2.7% JPM Fusion Conservative B-Class Acc 2.9% JPM Fusion Conservative C-Class Acc 3.1% Benchmark Index 1.8% Fund statistics Risk and Reward Profile 4* Fund size 3.9m Benchmark Index 25% MSCI World ex UK Index (Net)/ 20% FTSE All-Share Index (Net)/ 5% Dow Jones-UBS Commodity Index Total Return/ 20% BofA Merrill Lynch Sterling Broad Market Index/ 5% JPMorgan 3 Month Total Return Index Level Sterling/ 5% HFRX Global Hedge Fund Index/ 20% Barclays Global Aggregate ex GBP 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 % BlackRock UK Focus FF (Accumulation) 5.6 JPM US Strategic Growth C GBP (Distribution)^ 5.2 Fidelity Money Builder Y (Gross Accumulation) 5.0 Robeco US Large Cap Equities I USD (Accumulation) 4.9 ishares UK Gilts UCITS ETF (Distribution) 4.7 Neuberger High Yield Bond I GBP (Accumulation) 4.5 PIMCO UK Corporate Bond Institutional (Accumulation) 3.9 Pioneer Absolute Return Bond I GBP Hedged (Distribution) 3.9 Aberforth UK Smaller Companies (Accumulation) 3.8 Investec UK Special Situations I (Accumulation) 3.6 Geographical breakdown % Fixed Interest 36.9 United Kingdom 19.1 United States of America 14.5 Europe 10.6 Global 7.4 Asia 3.1 Japan 1.9 Liquidity funds 0.5 Forward currency contracts 0.0 Net other assets 6.0 Highest/lowest share price and distribution record Distribution Highest Lowest per share Calendar year share price share price (net) A-Class Accumulation Shares A 2013 B 51.67p 48.20p 0.00p A-Class Income Shares A 2013 B 51.65p 48.20p 0.00p B-Class Accumulation Shares A 2013 B 103.6p 96.50p 0.00p C-Class Accumulation Shares A 2013 B 103.8p 96.55p 0.01p C-Class Income Shares A 2013 B 103.7p 96.53p 0.01p 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. 11

14 Net asset values and Ongoing charges Net asset value per Net asset share class Number value per Ongoing Date 000 of shares share charges A-Class Accumulation Shares ,163, p 2.28% ,785 3,455, p 2.44% A-Class Income Shares C , p 2.28% , p 2.44% B-Class Accumulation Shares , p 1.78% , p 1.94% C-Class Accumulation Shares , p 1.53% , p 1.69% C-Class Income Shares C , p 1.53% , p 1.69% C The net asset value and the net asset value per income share are shown ex-dividend at the financial year end. 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 0.76% (30 April 2013: 0.60%) for the period in respect of indirect expenses charged within investments in underlying funds. 12

15 Portfolio statement As at 31 October 2013 Market value Total net Investment Holding 000 assets % Equities 56.6% (55.8%) United Kingdom 19.1% (21.7%) Aberforth UK Smaller Companies (Accumulation) BlackRock UK Focus FF (Accumulation) 160, Investec UK Special Situations I (Accumulation) 88, Liontrust Macro Equity Income I (Accumulation) 49, Schroder Recovery Z (Accumulation) 114, United States of America 14.5% (11.3%) ishares S&P 500 UCITS ETF USD (Accumulation) 3, JPM US Strategic Growth C GBP (Distribution)^ 2, Robeco US Large Cap Equities I USD (Accumulation) 1, T.Rowe Price US Smaller Companies Equity Q GBP (Accumulation) 6, Europe 10.6% (8.0%) BlackRock Continental Europe Flexible GBP (Distribution) 7, DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 3, JPM Europe Select Equity C GBP (Distribution)^ 1, Melchior Selected Trust European D GBP Hedged (Accumulation) 1, Global 7.4% (8.8%) Delaware Investments Emerging Markets I USD (Accumulation) 5, JPM Systematic Alpha C GBP Hedged (Distribution)^ 1, RWC Global Convertibles Institutional B GBP (Accumulation) Asia 3.1% (4.1%) Aberdeen Asia Pacific I (Accumulation) 57, Japan 1.9% (1.9%) Polar Capital Japan I JPY (Distribution) 6, Fixed Interest 36.9% (40.4%) BlackRock US Dollar High Yield Bond GBP Hedged (Distribution) 10, Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) 1, Fidelity Money Builder Y (Gross Accumulation) 16, ishares UK Gilts UCITS ETF GBP (Distribution) 15, JPM Aggregate Bond C GBP Hedged (Distribution)^ 1, JPM Global Corporate Bond C GBP Hedged (Distribution)^ 1, Neuberger High Yield Bond I GBP (Accumulation) 12, PIMCO Total Return Bond I GBP Hedged (Distribution) 13, PIMCO UK Corporate Bond Institutional (Accumulation) 9, Pioneer Absolute Return Bond I GBP Hedged (Distribution) Forward currency contracts 0.0% (0.0%) Japanese Yen Sell 11,600,000 buy 72,855 dated 12/12/13 72,855 (1) Liquidity funds 0.5% (1.0%) JPM Sterling Liquidity X (Distribution)^$ 21, Investment assets (including investment liabilities) 3, Net other assets Net assets 3, Unless otherwise stated the above securities are admitted to official stock exchange listings or trade on a regulated market. 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 13

16 Portfolio movements For the six months ending 31 October Total of all purchases for the period 2, Total of all sales for the period 866 Major Purchases Cost Pioneer Absolute Return Bond I (Distribution) 151 Liontrust Macro Equity Income I (Accumulation) 131 RWC Global Convertibles Institutional B GBP (Accumulation) 113 Melchior Selected Trust European D GBP Hedged (Distribution) 113 JPM US Growth C GBP (Distribution)^ 109 Robeco US Large Cap Equities I USD (Accumulation) 107 Neuberger High Yield Bond I GBP (Accumulation) 106 ishares S&P 500 UCITS ETF USD (Distribution) 105 BlackRock UK Focus FF (Accumulation) 102 Fidelity Money Builder Y (Gross Accumulation) 87 ishares S&P 500 UCITS ETF USD (Accumulation) 82 ishares UK Gilts UCITS ETF GBP (Distribution) 77 Polar Capital Japan I JPY (Distribution) 74 JPM Systematic Alpha C GBP Hedged (Distribution)^ 74 Aberforth UK Smaller Companies (Accumulation) 72 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 71 PIMCO Total Return Bond I GBP Hedged (Distribution) 62 Eaton Vance International Global Macro Equity I2 GBP (Accumulation) 62 BlackRock US Dollar High Yield Bond GBP Hedged (Distribution) 52 ishares FTSE 100 UCITS ETF GBP (Distribution) 51 Sales Proceeds ishares S&P 500 UCITS ETF USD (Distribution) 169 ishares FTSE 100 UCITS ETF GBP (Distribution) 146 Eaton Vance International Global Macro Equity I2 GBP (Accumulation) 92 J O Hambro UK Opportunities Institutional A GBP (Accumulation) 91 PIMCO Emerging Markets I GBP Hedged (Distribution) 83 Pictet Emerging Local Currency Debt P GBP Hedged (Distribution) 75 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 65 ishares MSCI Japan UCITS ETF JPY (Distribution) 52 PIMCO Total Return Bond I GBP Hedged (Distribution) 38 ishares MSCI Emerging Markets UCITS ETF USD (Distribution) 30 Neuberger High Yield Bond I GBP (Accumulation) 25 ^ Deemed to be investment in related parties of the ACD 14

17 Financial statements Statement of total return For the six months ending 31 October Income Net capital gains 115 Revenue 22 Expenses (21) Net revenue before taxation 1 Taxation Net revenue after taxation 1 Total return before distributions 116 Finance costs: Distributions (2) Change in net assets attributable to shareholders from investment activities 114 Balance sheet As at 31 October April ASSETS Investment assets 3,648 2,148 Debtors 38 1 Cash and bank balances Total other assets Total assets 3,885 2,212 LIABILITIES Investment liabilities (1) Creditors (4) (2) Total other liabilities (4) (2) Total liabilities (5) (2) Statement of change in net assets attributable to shareholders For the six months ending 31 October Opening net assets attributable to shareholders 2,210 Amounts receivable on issue of shares 1,556 1,556 Change in net assets attributable to shareholders from investment activities (see above) 114 Closing net assets attributable to shareholders 3,880 Net assets attributable to shareholders 3,880 2,210 15

18 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. 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 The Fund generated a positive return over the six-month period. Returns were driven by strong equity markets and good fund selection. A significant position in US equities yielded positive returns, in particular the Neuberger Berman US Multi Capital Opportunity. UK equities were also a driver of performance, with holdings such as Aberforth UK Small Companies and Schroder Recovery significantly outperforming the FTSE All-Share. Despite some broader emerging markets performing poorly, funds such as Delaware Investments Emerging Markets and GAM Star China Equity Institutional proved resilient and notably outperformed the MSCI Emerging Markets over the period. High yield bonds performed well, outperforming government bonds in the risk-on environment in the third quarter. The introduction of the RWC Convertible Institutional Fund also proved a timely purchase as it has generated strong returns since purchase. Fund outlook Although risk assets performed strongly over the period, we still believe there is scope for further gains into 2014 but with increased volatility. As such, we have allowed cash levels to build up moderately. Equity markets valuations have re-rated upwards towards long-term averages. Gains from here are likely to be driven predominately by earnings growth as opposed to a further re-rating. The Federal Reserve s decision not to scale back its monthly bond purchases has given some respite to the relentless rise in government bond yields since late May. We believe tapering is now largely priced in and that government bonds will begin to trade more on the economic fundamentals. A low growth and low inflationary world remains an ideal environment for credit. Credit spreads have the ability to narrow from the current levels, although we expect the coupon to account for the majority of the return. Challenges remain ahead, not least another round of US debt ceiling debates. Therefore, we continue to add to positions in liquid alternatives, as these non-correlated strategies provide much welcome diversification. 16

19 Performance as at 31 October 2013 Since launch 18 March 2013 JPM Fusion Growth Fund A-Class Acc 4.8% JPM Fusion Growth Fund B-Class Acc 5.2% JPM Fusion Growth Fund C-Class Acc 5.3% Benchmark Index 4.0% Six month performance to 31 October 2013 JPM Fusion Growth A-Class Acc 5.1% JPM Fusion Growth B-Class Acc 5.4% JPM Fusion Growth C-Class Acc 5.5% Benchmark Index 3.8% Fund statistics Risk and Reward Profile 6* Fund size 2.8m Benchmark Index 50% MSCI World ex UK Index (Net)/ 20% FTSE All-Share Index (Net)/ 5% Dow Jones-UBS Commodity Index Total Return/ 5% BofA Merrill Lynch Sterling Broad Market Index/ 5% HFRX Global Hedge Fund Index/ 15% Barclays Global Aggregate ex GBP 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 % Robeco US Large Cap Equities I USD (Accumulation) 6.4 JPM US Select Equity Plus C GBP (Distribution)^ 5.9 BlackRock UK Focus FF (Accumulation) 5.0 Aberforth UK Smaller Companies (Accumulation) 4.8 Investec UK Special Situations I (Accumulation) 4.6 JPM US Strategic Growth C GBP (Distribution)^ 4.4 Neuberger US Multi Capital Opportunity Fund I GBP (Distribution) 4.3 JPM Europe Select Equity C GBP (Distribution)^ 4.1 BlackRock Continental Europe Flexible GBP (Distribution) 3.8 ishares S&P 500 UCITS ETF USD (Accumulation) 3.8 Geographical breakdown % United States of America 27.9 United Kingdom 19.8 Fixed Interest 16.8 Europe 12.8 Global 7.9 Asia 5.9 Japan 3.8 Liquidity funds 0.1 Forward currency contracts 0.0 Net other assets 5.0 Highest/lowest share price and distribution record Distribution Highest Lowest per share Calendar year share price share price (net) A-Class Accumulation Shares A 2013 B 52.42p 48.08p 0.00p A-Class Income Shares A 2013 B 52.42p 48.08p 0.00p B-Class Accumulation Shares A 2013 B 105.2p 96.27p 0.00p C-Class Accumulation Shares A 2013 B 105.3p 96.32p 0.00p C-Class Income Shares A 2013 B 105.3p 96.32p 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. 17

20 Net asset values and Ongoing charges Net asset value per Net asset share class Number value per Ongoing Date 000 of shares share charges A-Class Accumulation Shares , p 2.42% ,514, p 2.60% A-Class Income Shares C , p 2.42% , p 2.60% B-Class Accumulation Shares , p 1.92% , p 2.10% C-Class Accumulation Shares , p 1.67% , p 1.85% C-Class Income Shares C , p 1.67% , p 1.85% C The net asset value and the net asset value per income share are shown ex-dividend at the financial year end. 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 0.92% (30 April 2013: 0.74%) for the period in respect of indirect expenses charged within investments in underlying funds. 18

21 Portfolio statement As at 31 October 2013 Market value Total net Investment Holding 000 assets % Equities 78.1% (83.1%) United States of America 27.9% (26.1%) ishares S&P 500 UCITS ETF USD (Accumulation) 3, JPM US Strategic Growth C GBP (Distribution)^ 1, JPM US Select Equity Plus C GBP (Distribution)^ 2, Neuberger US Multi Capital Opportunity Fund I GBP (Distribution) 10, Robeco US Large Cap Equities I USD (Accumulation) 1, T.Rowe Price US Smaller Companies Equity Q GBP (Accumulation) 6, United Kingdom 19.8% (24.1%) Aberforth UK Smaller Companies (Accumulation) BlackRock UK Focus FF (Accumulation) 101, Investec UK Special Situations I (Accumulation) 78, ishares FTSE 100 UCITS ETF GBP (Distriibution) 12, Schroder Recovery Z (Accumulation) 75, Europe 12.8% (14.9%) BlackRock Continental Europe Flexible GBP (Distribution) 7, DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 3, JPM Europe Select Equity C GBP (Distribution)^ 1, Montanaro European Smaller Companies GBP (Distribution) 19, Global 7.9% (6.1%) Delaware Investments Emerging Markets I USD (Accumulation) 10, JPM Systematic Alpha C GBP Hedged (Distribution)^ RWC Global Convertibles Institutional B GBP (Accumulation) Asia 5.9% (7.9%) Aberdeen Asia Pacific I (Accumulation) 18, GAM Star China Equity Institutional GBP (Accumulation) 2, T.Rowe Asian Ex-Japan Equity Q USD (Accumulation) 14, Japan 3.8% (4.0%) Polar Capital Japan I JPY (Distribution) 9, Fixed Interest 16.8% (13.5%) Bluebay Investment Grade Absolute Return Bond B (Distribution) Fidelity Money Builder Fund Y (Gross Accumulation) 7, JPM Aggregate Bond C GBP Hedged (Distribution)^ Neuberger High Yield Bond I GBP (Accumulation) 5, PIMCO Total Return Bond I GBP Hedged (Distribution) 7, Pioneer Absolute Return Bond I GBP Hedged (Distribution) Forward currency contracts 0.0% (0.0%) Sell 16,500,000 buy 103,631 dated 12/12/13 (1) Liquidity funds 0.1% (0.2%) JPM Sterling Liquidity X (Distribution)^$ 4, Investment assets (including investment liabilities) 2, Net other assets Net assets 2, Unless otherwise stated the above securities are admitted to official stock exchange listings or trade on a regulated market. 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 19

22 Portfolio movements For the six months ending 31 October Total of all purchases for the period 1, Total of all sales for the period 654 Major Purchases Cost Neuberger US Multi Capital Opportunity Fund I GBP (Distribution) 115 Polar Capital Japan I JPY (Distribution) 106 ishares S&P 500 UCITS ETF USD (Accumulation) 101 Pioneer Absolute Return Bond I GBP Hedged (Distribution) 80 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 72 Robeco US Large Cap Equities I USD (Accumulation) 68 Aberforth UK Smaller Companies (Accumulation) 59 RWC Global Convertibles Institutional B GBP (Accumulation) 54 BlackRock UK Focus FF (Accumulation) 53 Bluebay Investment Grade Absolute Return Bond B (Distribution) 45 Investec UK Special Situations I (Accumulation) 43 JPM US Select Equity Plus C GBP (Distribution)^ 39 ishares FTSE 100 UCITS ETF GBP (Distribution) 29 JPM US Strategic Growth C GBP (Distribution)^ 27 JPM Europe Select Equity C GBP (Distribution)^ 25 MacQuarie Collective Emerging Markets I USD (Accumulation) 22 T.Rowe Asian Ex-Japan Equity Q USD (Accumulation) 21 DB X-Trackers MSCI USA Index UCITS ETF (Accumulation) 21 Neuberger High Yield Bond I GBP (Accumulation) 16 PIMCO Total Return Bond I GBP Hedged (Distribution) 15 Sales Proceeds ishares S&P 500 UCITS ETF USD (Accumulation) 129 ishares MSCI Japan UCITS ETF JPY (Distribution) 96 DB X-Trackers MSCI USA Index UCITS ETF (Accumulation) 91 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 83 Artemis UK Smaller Companies Fund I (Accumulation) 54 Eaton Vance International Global Macro Equity I2 GBP (Accumulation) 42 Pictet Emerging Local Currency Debt Fund P GBP (Distribution) 31 PIMCO Total Return Bond I GBP Hedged (Distribution) 27 ishares MSCI Emerging Markets UCITS ETF USD (Distribution) 27 T.Rowe Asian Ex-Japan Equity Q USD (Accumulation) 17 JPM US Strategic Growth C GBP (Distribution)^ 16 Aberdeen Asia Pacific I (Accumulation) 13 Neuberger High Yield Bond I GBP (Accumulation) 10 MacQuarie Collective Emerging Markets I USD (Accumulation) 4 BlackRock Continental Europe Flexible GBP (Distribution) 4 T.Rowe Price US Smaller Companies Equity Q GBP (Accumulation) 3 Investec UK Special Situations I (Accumulation) 3 Montanaro European Smaller Companies GBP (Distribution) 2 Schroder Recovery Z (Accumulation) 2 ^ Deemed to be investment in related parties of the ACD 20

23 Financial statements Statement of total return For the six months ending 31 October Income Net capital gains 138 Revenue 7 Expenses (15) Net expenses before taxation (8) Taxation Net expenses after taxation (8) Total return before distributions 130 Finance costs: Distributions (1) Change in net assets attributable to shareholders from investment activities 129 Balance sheet As at 31 October April ASSETS Investment assets 2,619 2,092 Cash and bank balances Total other assets Total assets 2,799 2,163 LIABILITIES Investment liabilities (1) Creditors (42) (2) Total other liabilities (42) (2) Total liabilities (43) (2) Net assets attributable to shareholders 2,756 2,161 Statement of change in net assets attributable to shareholders For the six months ending 31 October Opening net assets attributable to shareholders 2,161 Amounts receivable on issue of shares 562 Amounts payable on cancellation of shares (96) 466 Change in net assets attributable to shareholders from investment activities (see above) 129 Closing net assets attributable to shareholders 2,756 21

24 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. 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 The Fund generated a positive return over the six-month period. Returns were driven by strong equity markets and good fund selection. A significant position in US equities yielded positive returns, in particular the Edgewood US Select Growth and Neuberger US Multi capital Opportunity Funds. UK equities were also a driver of performance, with holdings such as Aberforth UK Small Companies and Schroder Recovery significantly outperforming the FTSE All-Share. Despite some broader emerging markets performing poorly, funds such as Delaware Investments Emerging Markets and GAM Star China Equity Institutional proved resilient and notably outperformed the MSCI Emerging Markets over the period. Fund outlook Although risk assets performed strongly over the period, we still believe there is scope for further gains into 2014 but with increased volatility. As such, we have allowed cash levels to build up moderately. Equity markets valuations have re-rated upwards towards long-term averages. Gains from here are likely to be driven predominately by earnings growth as opposed to a further re-rating. The Federal Reserve s decision not to scale back its monthly bond purchases has given some respite to the relentless rise in government bond yields since late May. We believe tapering is now largely priced in and that government bonds will begin to trade more on the economic fundamentals. A low growth and low inflationary world remains an ideal environment for credit. Credit spreads have the ability to narrow from the current levels, although we expect the coupon to account for the majority of the return. Challenges remain ahead, not least another round of US debt ceiling debates. Therefore, we continue to add to positions in liquid alternatives, as these non-correlated strategies provide much welcome diversification. 22

25 Performance as at 31 October 2013 Since launch 18 March 2013 JPM Fusion Growth Plus A-Class Acc 5.2% JPM Fusion Growth Plus B-Class Acc 5.5% JPM Fusion Growth Plus C-Class Acc 5.7% Benchmark Index 4.8% Six month performance to 31 October 2013 JPM Fusion Growth Plus A-Class Acc 5.9% JPM Fusion Growth Plus B-Class Acc 6.2% JPM Fusion Growth Plus C-Class Acc 6.3% Benchmark Index 4.7% Fund statistics Risk and Reward Profile 6* Fund size 5.2m Benchmark Index 85% MSCI World ex UK Index (Net)/ 5% Dow Jones-UBS Commodity Index Total Return/ 5% HFRX Global Hedge Fund Index/ 5% Barclays Global Aggregate ex GBP 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 % ishares S&P 500 UCITS USD (Accumulation) 9.2 Edgewood US Select Growth I GBP (Accumulation) 7.3 Robeco US Large Cap Equities I USD (Accumulation) 7.2 Polar Capital Japan I JPY (Distribution) 6.8 Neuberger US Multi Capital Opportunity Fund I GBP (Distribution) 6.0 JPM Highbridge US Steep C (Distribution)^ 5.5 JPM Europe Select Equity C GBP (Distribution)^ 5.3 JPM US Select Equity Plus C GBP (Distribution)^ 4.5 BlackRock UK Focus FF (Accumulation) 4.5 Aberforth UK Smaller Companies (Accumulation) 4.4 Geographical breakdown % United States of America 43.5 Europe 15.3 United Kingdom 11.0 Asia 8.1 Global 7.8 Japan 6.8 Fixed Interest 2.8 Forward currency contracts (0.1) Liquidity funds 0.0 Net other assets 4.8 Highest/lowest share price and distribution record Distribution Highest Lowest per share Calendar year share price share price (net) A-Class Accumulation Shares A 2013 B 52.61p 47.97p 0.00p A-Class Income Shares A 2013 B 52.60p 47.97p 0.00p B-Class Accumulation Shares A 2013 B 105.5p 96.05p 0.00p C-Class Accumulation Shares A 2013 B 105.7p 96.11p 0.00p C-Class Income Shares A 2013 B 105.7p 96.11p 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. 23

26 Net asset values and Ongoing charges Net asset value per Net asset share class Number value per Ongoing Date 000 of shares share charges A-Class Accumulation Shares ,091, p 2.45% ,583 4,911, p 2.69% A-Class Income Shares C , p 2.45% , p 2.69% B-Class Accumulation Shares , p 1.95% , p 2.19% C-Class Accumulation Shares , p 1.70% ,350 1,277, p 1.94% C-Class Income Shares C , p 1.70% , p 1.94% C The net asset value and the net asset value per income share are shown ex-dividend at the financial year end. 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 1.01% (30 April 2013: 0.77%) for the period in respect of indirect expenses charged within investments in underlying funds. 24

27 Portfolio statement As at 31 October 2013 Market value Total net Investment Holding 000 assets % Equities 92.5% (94.0%) United States of America 43.5% (37.5%) Edgewood US Select Growth I GBP (Accumulation) 2, ishares S&P 500 UCITS USD (Accumulation) 17, JPM Highbridge US Steep C (Distribution)^ 3, JPM US Select Equity Plus C GBP (Distribution)^ 2, Neuberger US Multi Capital Opportunity Fund I GBP (Distribution) 28, Robeco US Large Cap Equities I USD (Accumulation) 3, T.Rowe Price US Smaller Companies Equity Q GBP (Accumulation) 15, Europe 15.3% (20.9%) BlackRock Continental Europe Flexible GBP (Distribution) 16, DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 6, JPM Europe Select Equity C GBP (Distribution)^ 2, Montanaro European Smaller Companies GBP (Distribution) 43, United Kingdom 11.0% (4.0%) Aberforth UK Smaller Companies (Accumulation) 1, BlackRock UK Focus FF (Accumulation) 173, Schroder Recovery Z (Accumulation) 132, Asia 8.1% (12.1%) Aberdeen Asia Pacific I (Accumulation) 46, GAM Star China Equity Institutional GBP (Accumulation) 10, T.Rowe Asian Ex-Japan Equity Q USD (Accumulation) 31, Global 7.8% (13.4%) Delaware Investments Emerging Markets I USD (Accumulation) 27, JPM Systematic Alpha C GBP Hedged (Distribution)^ 2, Japan 6.8% (6.1%) Polar Capital Japan I JPY (Distribution) 32, Fixed Interest 2.8% (3.0%) Neuberger High Yield Bond I GBP (Accumulation) 10, Forward currency contracts (0.1)% (0.0%) Sell 56,500,000 buy 355,006 dated 12/12/13 (4) (0.1) Liquidity funds 0.0% (0.0%) JPM Sterling Liquidity X (Distribution)^$ 1,009 1 Investment assets (including investment liabilities) 4, Net other assets Net assets 5, Unless otherwise stated the above securities are admitted to official stock exchange listings or trade on a regulated market. 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 25

28 Portfolio movements For the six months ending 31 October Total of all purchases for the period 4, Total of all sales for the period 1,440 Major Purchases Cost ishares S&P 500 UCITS ETF USD (Accumulation) 458 Polar Capital Japan I JPY (Distribution) 361 Neuberger US Multi Capital Opportunity Fund I GBP (Distribution) 305 ishares S&P 500 UCITS ETF USD (Distribution) 290 Robeco US Large Cap Equities I USD (Accumulation) 253 Edgewood US Select Growth I GBP (Accumulation) 250 Aberforth UK Smaller Companies (Accumulation) 218 JPM Highbridge US Steep C (Distribution)^ 169 BlackRock UK Focus FF (Accumulation) 168 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 159 JPM Europe Select Equity C GBP (Distribution)^ 138 MacQuarie Collective Emerging Markets I USD (Accumulation) 120 Neuberger High Yield Bond I GBP (Accumulation) 117 JPM US Select Equity Plus C GBP (Distribution)^ 111 JPM Systematic Alpha C GBP Hedged (Distribution)^ 108 ishares MSCI Japan UCITS ETF JPY (Distribution) 97 BlackRock Continental Europe Flexible GBP (Distribution) 93 T.Rowe Price US Smaller Companies Equity Q GBP (Accumulation) 91 T.Rowe Asian Ex-Japan Equity Q USD (Accumulation) 88 DB X-Trackers MSCI USA Index UCITS ETF 1C (Accumulation) 76 Sales Proceeds ishares S&P 500 UCITS ETF USD (Distribution) 445 ishares MSCI Japan UCITS ETF JPY (Distribution) 242 DB X-Trackers MSCI USA Index UCITS ETF 1C (Accumulation) 231 ishares MSCI World UCITS ETF USD (Distribution) 142 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 116 DB X-Trackers MSCI Europe TRN Index UCITS ETF 1C (Accumulation) 112 ishares MSCI Emerging Markets UCITS ETF USD (Distribution) 77 PIMCO Total Return Bond I GBP Hedged (Distribution) 57 Aberdeen Asia Pacific I (Accumulation) 18 ^ Deemed to be investment in related parties of the ACD 26

29 Financial statements Statement of total return For the six months ending 31 October Income Net capital gains 258 Revenue 10 Expenses (25) Net expenses before taxation (15) Taxation Net expenses after taxation (15) Total return before distributions 243 Finance costs: Distributions (6) Change in net assets attributable to shareholders from investment activities 237 Balance sheet As at 31 October April ASSETS Investment assets 4,988 2,131 Debtors 1 23 Cash and bank balances Total other assets Total assets 5,399 2,222 LIABILITIES Investment liabilities (4) Creditors (157) (26) Total other liabilities (157) (26) Total liabilities (161) (26) Statement of change in net assets attributable to shareholders For the six months ending 31 October Opening net assets attributable to shareholders 2,196 Amounts receivable on issue of shares 2,811 Amounts payable on cancellation of shares (6) 2,805 Change in net assets attributable to shareholders from investment activities (see above) 237 Closing net assets attributable to shareholders 5,238 Net assets attributable to shareholders 5,238 2,196 27

30 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. 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 The Fund generated a positive return over the six-month period. Returns were driven by strong equity markets and good fund selection. Fund selection in UK equity was particularly strong, with holdings such as Aberforth UK Small Companies significantly outperforming the FTSE All-Share. High yield bonds performed well, notably outperforming government bonds in the riskon environment in the third quarter. The introduction of the RWC Convertible Bond Fund also proved a timely purchase as it has generated strong returns since purchase. This was financed by fully redeeming the emerging market debt holdings at the start of the summer. Fund selection in fixed income was positive, with Neuberger Berman High Yield Bond enjoying a strong period. Fund outlook Although risk assets performed strongly over the period, we still believe there is scope for further gains into 2014 but with increased volatility. As such, we have allowed cash levels to build up moderately. Equity markets valuations have re-rated upwards towards long-term averages. Gains from here are likely to be driven predominately by earnings growth as opposed to a further rerating. The Federal Reserve s decision not to scale back its monthly bond purchases has given some respite to the relentless rise in government bond yields since late May. We believe tapering is now largely priced in and that government bonds will begin to trade more on the economic fundamentals. A low growth and low inflationary world remains an ideal environment for credit. Credit spreads have the ability to narrow from the current levels, although we expect the coupon to account for the majority of the return. Challenges remain ahead, not least another round of US debt ceiling debates. Therefore, we continue to add to positions in liquid alternatives, as these noncorrelated strategies provide much welcome diversification. 28

31 Performance as at 31 October 2013 Since launch 18 March 2013 JPM Fusion Income A-Class Acc 1.8% JPM Fusion Income B-Class Acc 2.1% JPM Fusion Income C-Class Acc 2.2% Benchmark Index 1.9% Six month performance to 31 October 2013 JPM Fusion Income A-Class Acc 0.6% JPM Fusion Income B-Class Acc 0.8% JPM Fusion Income C-Class Acc 0.9% Benchmark Index 0.9% Fund statistics Risk and Reward Profile 4* Fund size 2.2m Benchmark Index 15% MSCI World ex UK Index (Net)/ 15% FTSE All-Share Index (Net)/ 25% BofA Merrill Lynch Sterling Broad Market Index/ 5% JPMorgan 3 Month Total Return Index Level Sterling/ 10% HFRX Global Hedge Fund Index/ 30% Barclays Global Aggregate ex GBP 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% Geographical breakdown % Fixed Interest 54.7 United Kingdom 15.1 United States of America 9.5 Global 6.5 Europe 6.4 Asia 2.9 Liquidity funds 0.3 Forward currency contracts 0.0 Net other assets 4.6 Highest/lowest share price and distribution record Distribution Highest Lowest per share Calendar year share price share price (net) A-Class Accumulation Shares A 2013 B 51.27p 48.32p 0.32p A-Class Income Shares A 2013 B 51.21p 48.26p 0.32p B-Class Accumulation Shares A 2013 B 102.6p 96.74p 0.68p B-Class Income Shares A 2013 B 102.5p 96.62p 0.67p C-Class Accumulation Shares A 2013 B 102.7p 96.80p 0.67p C-Class Income Shares A 2013 B 102.5p 96.68p 0.67p A A-Class Accumulation Shares, A-Class Income Shares, B-Class Accumulation Shares, B-Class Income Shares, C-Class Accumulation Shares and C-Class Income Shares were launched on 18 March B To 31 October Top ten holdings % ishares UK Gilts UCITS ETF GBP (Distribution) 6.0 Muzinich Short Duration High Yield GBP Hedged (Distribution) 5.8 Fidelity Money Builder Fund Y (Gross Accumulation) 5.8 JPM Aggregate Bond C GBP Hedged (Distribution)^ 5.8 JPM US Equity Income C (Accumulation)^ 5.6 PIMCO UK Corporate Bond Institutional (Accumulation) 5.2 Neuberger High Yield Bond I GBP (Accumulation) 5.0 PIMCO Total Return Bond I GBP Hedged (Distribution) 4.7 Nordea European High Yield Bond AI GBP (Distribution) 4.5 Liontrust Macro Equity Income I (Accumulation) 4.1 Portfolio turnover rate % % The portfolio turnover rate (PTR) reflects the total of security purchases and sales, 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. 29

32 Net asset values and Ongoing charges Net asset value per Net asset share class Number value per Ongoing Date 000 of shares share charges A-Class Accumulation Shares , p 2.12% , p 2.08% A-Class Income Shares , p 2.12% , p 2.08% B-Class Accumulation Shares , p 1.62% , p 1.58% B-Class Income Shares , p 1.62% , p 1.58% C-Class Accumulation Shares , p 1.37% , p 1.33% C-Class Income Shares , p 1.37% , p 1.33% 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 0.40% (30 April 2013: 0.44%) for the period in respect of indirect expenses charged within investments in underlying funds. 30

33 Portfolio statement As at 31 October 2013 Market value Total net Investment Holding 000 assets % Equities 40.4% (43.0%) United Kingdom 15.1% (17.1%) Aberforth UK Smaller Companies (Accumulation) Artemis Income I (Accumulation) 26, Fidelity Enhanced Income W (Accumulation) 72, Liontrust Macro Equity Income I (Accumulation) 32, United States of America 9.5% (6.1%) ishares S&P 500 UCITS ETF USD (Distribution) 7, JPM US Equity Income C (Accumulation)^ 89, Global 6.5% (11.0%) JPM Systematic Alpha C GBP Hedged (Distribution)^ RWC Global Convertibles Institutional B GBP (Accumulation) Europe 6.4% (4.8%) DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 1, JPM Europe Strategic Dividend C GBP (Distribution)^ Melchior Selected Trust European D GBP Hedged (Accumulation) Asia 2.9% (4.0%) Aberdeen Asia Pacific Fund I (Accumulation) 10, Matthews Asia Dividend I (Distribution) 3, Fixed Interest 54.7% (52.3%) Bluebay Investment Grade Absolute Return Bond D GBP (Distribution) Bluebay Investment Grade Bond C GBP (Distribution) Fidelity Money Builder Fund Y (Gross Accumulation) 10, ishares UK Gilts UCITS ETF GBP (Distribution) 11, JPM Aggregate Bond C GBP Hedged (Distribution)^ 1, Muzinich Short Duration High Yield GBP Hedged (Distribution) 1, Neuberger High Yield Bond I GBP (Accumulation) 8, Nordea European High Yield Bond AI GBP (Distribution) 10, PIMCO Global Investment Grade Credit GBP Hedged (Distribution) 4, PIMCO Total Return Bond I GBP Hedged (Distribution) 10, PIMCO UK Corporate Bond Institutional (Accumulation) 7, Pioneer Absolute Return Bond I GBP Hedged (Distribution) Forward currency contracts 0.0% (0.1%) Liquidity funds 0.3% (4.6%) JPM Sterling Liquidity X (Distribution)^$ 6, Investment assets 2, Net other assets Net assets 2, Unless otherwise stated the above securities are admitted to official stock exchange listings or trade on a regulated market. 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 31

34 Portfolio movements For the six months ending 31 October Total of all purchases for the period Total of all sales for the period 836 Major Purchases Cost Liontrust Macro Equity Income I (Accumulation) 85 Muzinich Short Duration High Yield GBP Hedged (Distribution) 78 Pioneer Absolute Return Bond I GBP Hedged (Distribution) 65 RWC Global Convertibles Institutional B GBP (Accumulation) 64 Neuberger High Yield Bond I GBP (Accumulation) 64 Nordea European High Yield Bond AI GBP (Distribution) 63 ishares S&P 500 UCITS ETF USD (Distribution) 57 Aberdeen Asia Pacific Fund I (Accumulation) 45 ishares UK Gilts UCITS ETF GBP (Distribution) 42 Melchior Selected Trust European D GBP Hedged (Accumulation) 42 JPM US Equity Income C (Accumulation)^ 38 Fidelity Enhanced Income W (Accumulation) 34 Nordea European High Yield Bond AI GBP (Distribution) 33 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 32 Matthews Asia Dividend I (Distribution) 25 Polar Japan Fund I (Income) 20 Aberforth UK Smaller Companies (Accumulation) 19 JPM Systematic Alpha C GBP Hedged (Distribution)^ 15 CF Troy Asset Management Trojan Income O (Income) 12 Pictet Emerging Local Currency Debt Fund P GBP (Distribution) 10 Sales Proceeds JPM Sterling Liquidity X (Distribution)^$ 88 Pictet Emerging Local Currency Debt Fund P GBP (Distribution) 84 CF Troy Asset Management Trojan Income O (Income) 84 Nordea European High Yield Bond AI GBP (Distribution) 62 Aberdeen Asia Pacific Fund I (Accumulation) 61 PIMCO Emerging Markets Corporate Bond GBP Hedged (Distribution) 60 HSBC Global Emerging Markets Bond Fund I USD (Income) 59 Artemis Income I (Accumulation) 58 ishares FTSE 100 UCITS ETF GBP (Distribution) 46 Eaton Vance International Global Macro Equity I2 GBP (Accumulation) 41 DB X-Trackers DBLCI OY Balanced UCITS ETF USD (Accumulation) 37 ishares UK Gilts UCITS ETF GBP (Distribution) 26 Matthews Asia Dividend I (Distribution) 23 PIMCO UK Corporate Bond Institutional (Accumulation) 22 Neuberger High Yield Bond I GBP (Accumulation) 21 Polar Japan Fund I (Income) 20 ishares S&P 500 UCITS ETF USD (Distribution) 17 Fidelity Enhanced Income W (Accumulation) 12 PIMCO Total Return Bond I GBP Hedged (Distribution) 11 JPM Europe Strategic Dividend C GBP (Distribution)^ 4 ^ Deemed to be investment in related parties of the ACD $ Approved security as defined in the Collective Investment Schemes sourcebook 32

35 Financial statements Statement of total return For the six months ending 31 October Income Net capital gains 14 Revenue 18 Expenses (14) Net revenue before taxation 4 Taxation Net revenue after taxation 4 Total return before distributions 18 Finance costs: Distributions (14) Change in net assets attributable to shareholders from investment activities 4 Balance sheet As at 31 October April ASSETS Investment assets 2,103 2,038 Debtors 29 1 Cash and bank balances Total other assets Total assets 2,249 2,044 LIABILITIES Creditors (37) (4) Distribution payable on income shares (7) (1) Total liabilities (44) (5) Net assets attributable to shareholders 2,205 2,039 Statement of change in net assets attributable to shareholders For the six months ending 31 October Opening net assets attributable to shareholders 2,039 Amounts receivable on issue of shares 157 Amounts payable on cancellation of shares (3) 154 Change in net assets attributable to shareholders from investment activities (see above) 4 Retained distributions on accumulation shares 8 Closing net assets attributable to shareholders 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. 33

36 JPM Institutional Balanced Fund This Fund is in the process of termination. On 16 August 2013 an EGM was held at which shareholders voted in favour of a proposal to merge this Fund with the JPMorgan Balanced Managed Fund, a sub-fund within the JPMorgan Fund II ICVC. On 31 August 2013 the merger took place, and shareholders in the JPM Institutional Balanced Fund received shares of an equivalent value in the JPM Balanced Managed Fund. Highest/lowest share price and distribution record Distribution Highest Lowest per share Calendar year share price share price (net) I-Class Accumulation Shares A p 324.9p 3.28p p 316.2p 3.48p p 429.7p 1.87p p 436.3p 10.44p p 473.6p 8.48p 2013 B 626.6p 540.8p 14.97p A With effect from 1 December 2012 the C-Class Accumulation share class was renamed I-Class Accumulation. B To 31 August Net asset values and Ongoing charges Net asset value per Net asset share class Number value per Ongoing Date 000 of shares share charges I-Class Accumulation Shares C ,151 7,080, p 0.56% ,473 6,412, p 0.93% D 33,366 5,606, p 0.96% C With effect from 1 December 2012 the C-Class Accumulation share class was renamed I-Class Accumulation. D With effect from 1 December 2012 the accounting reference date changed from 31 January to 30 April. Following the adoption of the requirements of UCITS IV in June 2012, Ongoing charges has replaced the Total Expense Ratio ( TER ). The Ongoing charges takes into account the ACD fee, the fixed expenses and any expenses paid to an affiliate in respect of stocklending activities, expressed as a percentage of the average daily net asset values over the period. The main difference between the two calculations is the inclusion of the custodian handling charges and stocklending fees, and the exclusion of performance fees in the Ongoing charges figure. The comparative figures have not been restated, and the historic TER is disclosed. It also includes a synthetic adjustment of nil (30 April 2013: 0.31%) for the period in respect of indierct expenses charged within investments in underlying funds. * 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. 34

37 Financial statements Statement of total return For the six months ending 31 October Six months from 1 February to 31 July Income Net capital gains Revenue Expenses (73) (107) Net revenue before taxation Taxation (16) (14) Net revenue after taxation Total return before distributions Finance costs: Distributions (191) (6) Change in net assets attributable to shareholders from investment activities Balance sheet As at 31 October April ASSETS Investment assets 32,797 Debtors Cash and bank balances (25) 764 Total other assets Total assets 20 33,581 LIABILITIES Investment liabilities (80) Creditors (18) (135) Total other liabilities (18) (135) Total liabilities (18) (215) Net assets attributable to shareholders 2 33,366 Statement of change in net assets attributable to shareholders For the six months ending 31 October Six months from 1 February to 31 July Opening net assets attributable to shareholders 33,366 31,473 Amounts receivable on issue of shares Amounts payable on cancellation of shares (33,949) (2,496) (33,740) (2,349) Change in net assets attributable to shareholders from investment activities (see above) Retained distributions on accumulation shares 217 Closing net assets attributable to shareholders 2 29,736 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. 35

38 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 Following a volatile period for global markets from April to June, investor appetite returned over the summer for risk assets, which were supported by a shift in the global economy towards recovery. The Fund outperformed its benchmark in the six-month period. By region, our overweights to the US and Europe ex-uk contributed positively, as these were the top performing equity markets. We were underweight the UK at the beginning of the period, which detracted as the UK performed strongly. We reduced our underweight to the UK in the second half of the period. We maintained our overweight to the US, and trimmed our positions in Japan and Europe ex-uk but remained overweight. There was strong relative performance from the JPM UK Focus Fund and JPM Strategic Equity Income Fund, with both outperforming their benchmarks. There were no changes at the underlying fund level. Fund outlook Monetary policy remains at a crossroads, with US tapering delayed but due to start soon. However, global policy should remain supportive for risk assets. The weight of fiscal austerity on growth is diminishing, with economic activity picking up in developed economies. Worries continue about the health of emerging economies. Equities remain well supported in valuation terms relative to bonds. 12 month performance to 31 October JPM Portfolio A-Class Acc 29.0% 6.6% -0.1% 15.0% 26.1% JPM Portfolio B-Class Acc A JPM Portfolio C-Class Acc A Benchmark Index 23.9% 9.5% 0.4% 17.4% 21.7% Six month performance to 31 October 2013 JPM Portfolio A-Class Acc 9.6% JPM Portfolio B-Class Acc 9.9% JPM Portfolio C-Class Acc B Benchmark Index 6.6% Fund statistics Risk and Reward Profile 6* Fund size 58.9m Benchmark Index 50% FTSE All-Share Index (Net)/ 50% FTSE World ex-uk Index (Net) Fund charges Initial 3.00%, Annual up to 1.50% Top ten holdings % JPM UK Dynamic A (Accumulation)^ 12.8 JPM UK Focus A (Accumulation)^ 12.3 JPM UK Active Index Plus E Net (Accumulation)^ 11.0 JPM UK Strategic Equity Income A (Accumulation)^ 9.8 JPM US Select Equity A USD (Distribution)^ 9.0 JPM US Growth A USD (Distribution)^ 8.8 JPM US Value A GBP (Distribution)^ 8.3 JPM Europe Strategic Dividend A EUR (Distribution)^ 7.3 JPM Europe Equity Plus A GBP (Distribution)^ 7.1 JPM Japan Strategic Value A GBP (Distribution)^ 4.5 ^ 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 performance returns are calculated using the quoted price of the accumulation shares. Performance returns are in Sterling. Source: J.P. Morgan. A B-Class Accumulation Shares were launched during December 2012, C-Class Accumulation Shares were launched during July 2013, therefore 12 month performance to 31 October is not available. B C-Class Accumulation Shares were launched during July 2013, therefore six month performance to 31 October is not available. 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. 36

39 Geographical breakdown % United Kingdom 45.9 United States of America 26.1 Europe 14.4 Japan 4.5 Asia 4.3 Futures 0.3 Net other assets 4.5 Highest/lowest share price and distribution record Distribution Highest Lowest per share Calendar year share price share price (net) A-Class Accumulation Shares p 83.82p 0.00p p 79.41p 0.00p p 113.8p 0.00p p 115.8p 1.00p p 127.6p 0.59p 2013 C 180.9p 145.9p 2.19p B-Class Accumulation Shares D p 142.1p 2013 C 180.8p 145.9p 1.83p C-Class Accumulation Shares E 2013 C 181.1p 169.4p C To 31 October D B-Class Accumulation Shares were launched on 3 December E C-Class Accumulation Shares were launched on 19 July Portfolio turnover rate F 33.6% % F With effect from 1 December 2012 the accounting reference date changed from 31 January to 30 April. The portfolio turnover rate (PTR) reflects the total of security purchases and sales, less the total of share issues and cancellations, expressed as a percentage of the average daily net asset values over the period. Net asset values and Ongoing charges Net asset Net asset value Number value per Ongoing Date 000 of shares share charges A-Class Accumulation Shares ,361 36,625, p 1.61% ,777 34,251, p 2.13% F 53,629 32,569, p 1.94% ,879 32,605, p 2.21% B-Class Accumulation Shares F 3 2, p 1.44% , p 1.71% C-Class Accumulation Shares , p 1.46% F With effect from 1 December 2012 the accounting reference date changed from 31 January to 30 April. Following the adoption of the requirements of UCITS IV in June 2012, Ongoing charges has replaced the Total Expense Ratio ( TER ). 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. The main difference between the two calculations is the inclusion of the custodian handling charges and stocklending fees, and the exclusion of performance fees in the Ongoing charges figure. The comparative figures have not been restated, and the historic TER is disclosed. It also includes a synthetic adjustment of 0.53% (2013: 0.26%) for the period in respect of indirect expenses charged within investments in the underlying funds. 37

40 Portfolio statement As at 31 October 2013 Market value Total net Investment Holding 000 assets % Equities 95.2% United Kingdom 45.9% (50.9%) JPM UK Active Index Plus E Net (Accumulation)^ 2,471,632 6, JPM UK Dynamic A (Accumulation)^ 5,287,100 7, JPM UK Focus A (Accumulation)^ 9,793,585 7, JPM UK Strategic Equity Income A (Accumulation)^ 4,070,007 5, United States of America 26.1% (27.3%) JPM US Growth A USD (Distribution)^ 959,980 5, JPM US Select Equity A USD (Distribution)^ 52,854 5, JPM US Value A GBP (Distribution)^ 268,678 4, Europe 14.4% (10.8%) JPM Europe Equity Plus A GBP (Distribution)^ 456,101 4, JPM Europe Strategic Dividend A EUR (Distribution)^ 48,722 4, Japan 4.5% (4.1%) JPM Japan Strategic Value A GBP (Distribution)^ 43,197 2, Asia 4.3% (5.4%) JPM Asia Pacific Strategy Equity A USD (Distribution)^ 39,039 2, Futures 0.3% (0.3%) DAX Index Futures Dec 2013 (3) (30) (0.1) Euro Stoxx 50 Futures Dec FTSE 100 Index Futures Dec 2013 (9) (23) FTSE/MIB Index Futures Dec Hang Seng Index Futures Nov 2013 (9) (17) Russell 2000 Mini Futures Dec S&P 500 E-Mini Futures Dec S&P/TSX 60 IX Futures Dec Topix Index Futures Dec Investment assets (including investment liabilities) 56, Net other assets 2, Net assets 58, Unless otherwise stated the above securities are admitted to official stock exchange listings or trade on a regulated market. The comparative percentage figures in brackets are at 30 April ^ Deemed to be investment in related parties of the ACD 38

41 Portfolio movements For the six months ending 31 October Total of all purchases for the period 9, Total of all sales for the period 10,551 Purchases Cost JPM Euro Equity Fund A (Distribution)^ 3,932 JPM Europe Strategic Dividend A EUR (Distribution)^ 1,677 JPM Sterling Liquidity X (Distribution)^ 1,200 JPM US Select Equity A USD (Distribution)^ 595 JPM Japan Strategic Value A GBP (Distribution)^ 555 JPM US Strategic Growth A USD (Distribution)^ 492 JPM US Value A GBP (Distribution)^ 404 JPM UK Strategic Equity Income A (Accumulation)^ 231 ^ Deemed to be investment in related parties of the ACD Sales Proceeds JPM Europe I (Accumulation)^ 3,650 JPM Highbridge US Steep A GBP (Income)^ 1,757 JPM UK Active Index Plus E Net (Accumulation)^ 1,695 JPM UK Strategic Equity Income A (Accumulation)^ 1,424 JPM Sterling Liquidity X (Distribution)^ 1,200 JPM Asia Pacific Strategy Equity A USD (Distribution)^ 285 JPM US Value A GBP (Distribution)^ 159 JPM US Select Equity A USD (Distribution)^ 158 JPM UK Dynamic A (Accumulation)^ 142 JPM Japan Strategic Value A GBP (Distribution)^ 81 39

42 Financial statements Statement of total return For the six months ending 31 October Six months from 1 February to 31 July Income Net capital gains 5, Revenue Expenses (472) (376) Net (expenses)/revenue before taxation (33) 286 Taxation Net (expenses)/revenue after taxation (33) 286 Total return before distributions 5, Finance costs: Distributions Change in net assets attributable to shareholders from investment activities 5, Balance sheet As at 31 October April ASSETS Investment assets 56,349 53,058 Debtors Cash and bank balances 2, Total other assets 2, Total assets 59,086 53,862 LIABILITIES Investment liabilities (70) (93) Creditors (86) (137) Total other liabilities (86) (137) Total liabilities (156) (230) Net assets attributable to shareholders 58,930 53,632 Statement of change in net assets attributable to shareholders For the six months ending 31 October Six months from 1 February to 31 July Opening net assets attributable to shareholders 53,632 45,777 Amounts receivable on issue of shares 2, Amounts payable on cancellation of shares (1,986) (1,543) 111 (879) Change in net assets attributable to shareholders from investment activities (see above) 5, Stamp duty reserve tax (7) (2) Closing net assets attributable to shareholders 58,930 45,488 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. 40

43 Aggregated Company financial statements Aggregated statement of total return For the six months ending 31 October 1 February to 31 July Income Net capital gains 6, Revenue 794 1,117 Expenses (659) (483) Net revenue before taxation Taxation (16) (14) Net revenue after taxation Total return before distributions 6,354 1,210 Finance costs: Distributions (223) (6) Change in net assets attributable to shareholders from investment activities 6,131 1,204 Aggregated balance sheet As at 31 October April ASSETS Investment assets 77,581 96,647 Debtors Cash and bank balances 4,167 1,799 Total other assets 4,556 1,919 Total assets 82,137 98,566 LIABILITIES Investment liabilities (79) (173) Creditors (506) (319) Distribution payable on income shares (7) (1) Total other liabilities (513) (320) Total liabilities (592) (493) Net assets attributable to shareholders 81,545 98,073 Aggregated statement of change in net assets attributable to shareholders For the six months ending 31 October 1 February to 31 July Opening net assets attributable to shareholders 98,073 77,250 Amounts receivable on issue of shares 13, Amounts payable on cancellation of shares (36,173) (4,039) (22,877) (3,228) Change in net assets attributable to shareholders from investment activities (see above) 6,131 1,204 Retained distributions on accumulation shares 225 Stamp duty reserve tax (7) (2) Closing net assets attributable to shareholders 81,545 75,224 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 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 2013 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 Mr Peter Schwicht Director For and on behalf of JPMorgan Funds Limited 9 December 2013 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. Mr Dan Watkins Director For and on behalf of JPMorgan Funds Limited 9 December

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45 Printed on Hello Matt 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 pulp is bleached using a combination of Elemental Chlorine Free (ECF) and Totally Chlorine Free (TCF) methods.

46 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 12/13