JPMorgan Funds Audited Annual Report - JP Morgan Asset ...

JPMorgan Funds
Notes to the Financial Statements (continued)
As at 30 June 2013
Authorised Fund
Total purchases
and sales
Currency of the
Sub-Fund
Percentage of Fund’s
total transactions* for
the year
Total brokerage
commission paid
Average rate of
commission paid
JPMorgan Funds - Global Focus Fund 79,552,170 EUR 4.63 34,196 0.04
JPMorgan Funds - Global Government Bond Fund 313,203 EUR 0.02 - -
JPMorgan Funds - Global Mining Fund - EUR - - -
JPMorgan Funds - Global Natural Resources Fund 50,611,907 EUR 6.99 56,043 0.11
JPMorgan Funds - Global Real Estate Securities Fund (USD) 8,485,109 USD 3.10 5,057 0.06
JPMorgan Funds - Global Unconstrained Equity Fund 22,471,666 USD 7.72 19,025 0.08
JPMorgan Funds - Greater China Fund 26,476,809 USD 1.40 28,295 0.11
JPMorgan Funds - Hong Kong Fund 9,148,748 USD 3.04 10,608 0.12
JPMorgan Funds - India Fund 26,795,341 USD 5.15 11,567 0.04
JPMorgan Funds - Japan Equity Fund 41,270,651 USD 8.46 20,635 0.05
JPMorgan Funds - Japan Small Cap Fund 3,097,908 USD 4.97 1,549 0.05
JPMorgan Funds - Korea Equity Fund 53,471,731 USD 8.48 42,994 0.08
JPMorgan Funds - Latin America Equity Fund 7,242,152 USD 0.56 7,998 0.11
JPMorgan Funds - Pacific Technology Fund 7,222,504 USD 13.18 6,087 0.08
JPMorgan Funds - Russia Fund 52,432,986 USD 7.90 53,095 0.10
JPMorgan Funds - Singapore Fund 9,743,088 USD 4.20 16,979 0.17
JPMorgan Funds - Taiwan Fund 51,201,225 USD 5.56 17,430 0.03
JPMorgan Funds - US Aggregate Bond Fund 3,499,922 USD 0.31 - -
JPMorgan Funds - US Dynamic fund 40,691,116 USD 16.70 19,066 0.05
JPMorgan Funds - US Growth Fund - USD - - -
JPMorgan Funds - US Small Cap Growth Fund 23,500,471 USD 6.72 18,739 0.08
JPMorgan Funds - US Technology Fund 1,886,938 USD 0.61 90 -
JPMorgan Funds - US Value Fund - USD - - -
* Total transactions is the total value in fund currency of purchases and sales dealt during the year to 30 June 2013
9. Soft Commission Arrangements
The Investment Managers of the Fund may enter into soft commission arrangements with brokers in respect of services used to support investment
decision-making for the benefit of the Fund.
The investment related services received under soft commission arrangements comprise:
- research and advisory services;
- economic and political analysis;
- portfolio analysis, including valuation and performance measurement;
- market analysis;
- data and quotation services;
- computer hardware and software incidental to the above goods and services; and
- investment-related publications.
The Investment Managers do not make direct payments for these services, but transact an agreed amount of business with the brokers on behalf of the Fund
and commission is paid on these transactions.
10. Securities Lending
The SICAV may lend portions of its securities portfolio to third parties for the purpose of generating additional income or for reducing costs or risk, to the
maximum extent allowed by and within the limits set forth in (i) article 11 of the Grand Ducal regulation of 8 February 2008 relating to certain definitions of
the Luxembourg Law, (ii) CSSFCircular 08/356 relating to the rules applicable to Undertakings for Collective Investment when they use certain techniques
and instruments relating to transferable securities and money market instruments and (iii) any other applicable laws, regulations, circulars or CSSF
positions. A significant proportion of the income generated from the securities lending program is credited to participating Sub-Funds, with a portion of the
income being paid to JPMorgan Chase Bank, N.A. for its role as securities lending agent for the Fund. Borrowers of securities lent by participating Sub-Funds
are approved by the Management Company after appropriate assessment of such borrowers’ status and financial standing. During the period from 1 July
2012 to 31 December 2012, 75% of any incremental income earned from securities lending was accrued to the applicable Sub-Fund, with the remaining
income payable to the securities lending agent which arranges the transaction. From 1 January 2013, the proportion increased to 85%; refer to Note 14g. The
income earned from the securities lending program is detailed in the Combined Statement of Operations and Changes in Net Assets.
As at 30 June 2013, the SICAV valuation of securities on loan is USD 509,942,839, as detailed below and received collateral as security with a market value of
USD 534,319,777.
The table below provides the USD valuation of securities on loan at a Sub-Fund level as at 30 June 2013:
Sub-Fund Market Value Cash Collateral
Non Cash
Collateral*
Lending Income
(Gross) Lending Agent Fee
Lending Income
(Net)
JPMorgan Funds - China Fund 94,943,292 30,946,099 71,861,225 268,774 40,316 228,458
JPMorgan Funds - Euroland Equity Fund 14,357,899 12,426,994 2,408,852 321,374 59,137 262,237
JPMorgan Funds - Euroland Select Equity Fund 806,794 - 875,450 100,821 17,840 82,981
JPMorgan Funds - Europe Dynamic Fund 18,346,455 13,572,355 5,452,850 146,260 28,421 117,839
JPMorgan Funds - Europe Dynamic Mega Cap Fund 4,182,766 4,261,477 - 49,808 9,225 40,583
JPMorgan Funds - Europe Equity Fund 12,836,957 4,640,993 8,920,135 404,336 74,178 330,158
JPMorgan Funds - Europe Small Cap Fund 6,750,055 2,300,621 4,846,279 89,340 18,363 70,977
JPMorgan Funds - Europe Technology Fund 19,440,207 16,267,256 3,846,858 99,851 20,672 79,179
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