JPMorgan Brazil Investment Trust plc · JPMorgan Brazil Investment Trust plc Annual Report & Accounts for the year ended 30th April 2016 Brazil AR 4pp cover 19/07/2016 15:17 Page

JPMorgan Brazil Investment Trust plcAnnual Report & Accounts for the year ended 30th April 2016

Brazil AR 4pp cover 19/07/2016 15:17 Page FC1

ObjectiveTo provide shareholders with long term total returns,predominantly comprising capital growth but with the potentialfor income, by investing primarily in Brazilian focusedcompanies.

Investment Policy• To invest primarily in Brazilian companies and thoseincorporated or listed outside Brazil whose Brazilianoperations constitute a material part of their business. Up to10% of assets may be invested in companies focused on otherLatin American countries.

• There will be no limit placed on the market capitalisation orsector of any investee companies. However, the Company mayreduce its equity holdings to a minimum of 60% of its grossassets if it is considered to be beneficial to performance.

• The Company may invest in listed or unlisted securities orequity-linked securities, in addition to fixed income bonds.Unlisted securities will not exceed 10% of gross assets at thetime of investment.

BenchmarkThe Company’s benchmark is the MSCI Brazil 10/40 Index (insterling terms), with net dividends reinvested. This index limitsthe maximum weight of an individual stock constituent to 10%and limits the sum of the weights of all stocks representingmore than 5% individually to 40%.

Capital StructureAt 30th April 2016, the Company’s share capital comprised61,728,898 ordinary shares of 1p each including 15,954,044shares held in Treasury.

Continuation VoteIn accordance with the Company’s Articles of Association, theDirectors are required to propose a resolution that theCompany continue as an investment trust at the Annual GeneralMeeting in 2016 and every third year thereafter.

Management Company and Company SecretaryPrior to 1st July 2014, the Company employed JPMorgan AssetManagement (UK) Limited (‘JPMAM’ or the ‘Manager’) tomanage its assets. With effect from 1st July 2014, JPMorganFunds Limited (‘JPMF’) or the ‘Manager’), an affiliate of JPMAM,was appointed as the Company’s Alternative Investment FundManager (‘AIFM’) and the Company Secretary.

FCA Regulation of ‘Non-Mainstream PooledInvestments’The Company currently conducts its affairs so that the sharesissued by JPMorgan Brazil Investment Trust plc can berecommended by Independent Financial Advisers to ordinaryretail investors in accordance with the FCA’s rules in relation tonon-mainstream investment products and intends to continueto do so for the foreseeable future.

The shares are excluded from the FCA’s restrictions which applyto non-mainstream investment products because they areshares in an investment trust.

Association of Investment Companies The Company is a member of the Association of InvestmentCompanies.

WebsiteThe Company’s website, which can be found atwww.jpmbrazil.co.uk, includes useful information on theCompany, such as daily prices, factsheets and current andhistoric half year and annual reports.

Features

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Contents

2 FINANCIAL RESULTS

STRATEGIC REPORT

3 Chairman’s Statement

6 Investment Managers’ Report

9 Summary of Results

10 Ten Largest Equity Investments

10 Sector Analysis

11 List of Investments

12 Business Review

GOVERNANCE

16 Board of Directors

17 Directors’ Report

19 Corporate Governance Statement

24 Directors’ Remuneration Report

26 Statement of Directors’ Responsibilities

27 INDEPENDENT AUDITOR’S REPORT

FINANCIAL STATEMENTS

33 Statement of Comprehensive Income

34 Statement of Changes in Equity

35 Statement of Financial Position

36 Statement of Cash Flows

37 Notes to the Financial Statements

REGULATORY DISCLOSURES

53 Alternative Investment Fund Managers DirectiveDisclosures

SHAREHOLDER INFORMATION

54 Notice of Annual General Meeting

57 Glossary of Terms and Definitions

58 Where to buy J.P. Morgan Investment Trusts

59 Information about the Company

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2 JPMORGAN BRAZIL INVESTMENT TRUST PLC. ANNUAL REPORT & ACCOUNTS 2016

Financial Results

TOTAL RETURNS (INCLUDES DIVIDENDS REINVESTED) TO 30TH APRIL 2016

–10.9%Benchmark3

(2015: –9.5%)

1 Source: Morningstar.2 Source: J.P. Morgan.3 Source: Datastream. The Company’s benchmark is the MSCI Brazil 10/40 Index, with net dividends reinvested in sterling terms.

A glossary of terms and definitions is provided on page 57.

0.50pDividend

(2015: 0.40p)

–18.2%Return to shareholders1

(2015: –11.9%)

–14.4%Return on net assets2

(2015: –14.6%)

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Strategic Report

CHAIRMAN’S STATEMENT

PerformanceThe Brazilian equity market continued to perform poorly during the financial year to30th April 2016. A high level of political uncertainty and ongoing corruption revelationsduring the year undermined consumer and business confidence, leading to a continuedcontraction in domestic demand. Against this background, the Company recorded a totalreturn on net assets for the year of minus 14.4%, underperforming the benchmark, the MSCIBrazil 10/40 Index which returned minus 10.9% for the same period. Over the year theCompany’s share price discount widened from 6.4% to 10.6%, so that the share price returnwas minus 18.2%.

Despite these disappointing returns for the Company’s financial year, there was someencouragement in the period from a low point of 21st January, when the Brazilian marketrose 65% in sterling terms, assisted by a rise in the value of the Brazilian Real whichaccounted for some 23.6 percentage points of this recovery. This improvement followed themoves towards commencement of impeachment proceedings against President DilmaRousseff and the subsequent appointment of Michel Temer as interim president and somehopes that his ministry may make progress towards the reforms that are required to facilitateeconomic recovery. During this period the Company’s NAV per share rose by 44.9%.

The underperformance of our portfolio against the market arose mainly because thestrategy agreed by the Board with the managers is to avoid the largest companies which arevolatile and unduly subject to political influence, and to focus on well managed companieswith sound fundamentals. The rally in the final quarter was led by larger, politically exposedcompanies which we believe to be of low quality, and was given further impetus by theclosing of short positions held in such companies by local investors.

In the period from the end of the financial year to 6th July, the last practicable date prior tothe printing of this report, the NAV per share has risen by 16.7% and the discount hasnarrowed to 3.4% resulting in a rise in the share price of 24.5% to 57.75p compared to46.38p at the year end.

Revenue and DividendsGross revenue for the year amounted to £683,000 (2015: £952,000) and net total revenueafter administrative expenses and taxation amounted to £212,000 (2015: £203,000).

The Company’s dividend policy has been to distribute all, or substantially all, of the availableincome each year. The Board recommends an increased dividend of 0.5p per Ordinary share.Subject to shareholders’ approval at the forthcoming AGM on 7th September 2016, thedividend will be payable on 16th September 2016 to shareholders on the register at19th August 2016.

Asset AllocationIn accordance with the Company’s investment policy, the investment managers havecontinued to be substantially invested in equities. As at 30th April 2016, net cashrepresented 2.9% of the Company’s assets.

Fees and expensesLast year JPMorgan agreed to reduce its management fee to the extent necessary to ensurethat the Company’s ongoing charges ratio did not exceed 2%. The Manager has agreed toextend this concession until the continuation vote to be held in 2019. In addition, it has been

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Strategic Report continued

CHAIRMAN’S STATEMENT CONTINUED

agreed that the investment management agreement will be amended to remove theperformance fee.

Share RepurchasesAt last year’s Annual General Meeting (‘AGM’), shareholders granted Directors authority torepurchase the Company’s shares. During the financial year, the Company repurchased atotal of 2,017,508 Ordinary shares into Treasury at a discount, thereby marginally enhancingNAV per share. The Board’s objective remains to use the share repurchase authority tomanage imbalances between the supply of and demand for the Company’s shares, therebyreducing the volatility of the discount. The Board believes this mechanism has been helpfuland therefore proposes and recommends that powers to repurchase up to 14.99% of theCompany’s issued share capital be renewed for a further period.

Annual General MeetingThe Company’s fifth AGM will be held on 7th September 2016 at 2.00 p.m. at 60 VictoriaEmbankment, London EC4Y 0JP. The meeting will include a presentation from theinvestment managers on investment policy and performance. There will also be anopportunity for shareholders to meet the Board and representatives of JPMorgan after themeeting.

If you wish to raise any detailed or technical questions at the Meeting, it would be helpful ifyou could mention them in advance by writing to the Company Secretary. Shareholders whoare unable to attend the Meeting in person are encouraged to use their proxy votes.

Outlook and Continuation VoteThe Company’s Articles of Association require that shareholders vote on the continuation ofthe Company at every third Annual General Meeting (‘AGM’). The second of these votes fallsthis year. The Board has considered the performance and progress of the Company not onlyover the last year as described above, but over the period since flotation in April 2010.

The Board recognises the substantial loss of value that shareholders have suffered in recentyears. The graph below, which covers the period from the date of listing to 30th April 2016,illustrates the reasons for this disappointing performance:

1. The left hand column shows the NAV per share at the commencement of trading in2010.

2. The next column represents the movement in the Company’s benchmark index overthe period in local currency terms, which delivered a total return of 12.9p.

3. The third column shows the movement in NAV per share, over and above movementsin the index and the currency, which is attributable to the Manager’s investmentdecisions – a positive total return of 6.6p.

4. The fourth column shows the combined effect on shareholder return of fees,dividends paid and other movements in NAV over the period, including the effects ofshare buy-backs, issuance and subscription shares – a reduction of 11.5p from netasset value.

5. The penultimate column shows the effect on the NAV per share of currencymovements; the decline in the value of the Brazilian Real reduced total returns by53.5%.

6. The final column, the sum of the previous components, shows the closing NAV pershare as at 30th April 2016.

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It is apparent that by far the greatest contributor to the decline in the Company’s sterlingNAV over the period is the fall in the Brazilian currency, despite the recent recovery.

The Board has considered carefully whether to recommend continuation. We have noted thewelcome rise in the share price and NAV since the end of the financial year, although werecognise that Brazil is still facing recession and deep political problems. At the same time,the long-term case for investing in Brazil remains valid. The Brazilian market contains manywell-run companies, which we expect to perform strongly as the country emerges fromrecession. In addition, the currency is now much closer to fair value than at the time thefund was launched.

We believe that with some stabilisation of the economic and political background, theCompany’s investment management team will be able to take advantage of the trend thathas continued towards a growing middle class and rising consumer expenditure – the trendthat our investment policy was established to exploit.

The Board therefore believes that at this stage, despite the loss of value that shareholdershave suffered, it is in the best interest of shareholders generally to vote in favour ofcontinuation, and we therefore recommend that they do so.

Since the year end the UK voted to leave the European Union in a referendum held on23rd June. Since the result sterling has weakened materially against other currencies. Thishas had the effect of increasing the Company’s net asset value per share that was alreadyoutperforming the benchmark in local currency terms. At the same time discounts acrossthe investment trust sector have experienced significantly increased volatility as investmenttrust share price movements lag rapidly moving net asset values. It is too early to say ifthese short-term trends will persist.

Howard MylesChairman 19th July 2016

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INVESTMENT MANAGERS’ REPORT

Market reviewThe year to 30th April 2016 was a volatile period for Brazilian equities, with sentimentdriven by concerns over the persistent recessionary environment and ongoing politicalturbulence. Weak commodity prices and worries over deteriorating demand from China alsoweighed on the stock market. Against this backdrop, the MSCI Brazil 10/40 Net Index insterling fell by 10.9%

Politics was the dominant theme. President Dilma Rousseff began the period withplummeting approval ratings amid mounting worries over economic mismanagement.Rousseff had briefly soothed market concerns with her appointment of Joaquim Levy asfinance minister at the beginning of 2015. However, by the start of the review period,investors were losing faith in Levy’s ability to restore balance to Brazil’s struggling publicfinances as Congress blocked efforts to reduce government expenditure and increaserevenue.

Levy’s failure to put Brazil on a path to recovery was confirmed by a deterioration ineconomic data. By August 2015, Brazil had experienced continued downgrades from ratingagencies, and eventually lost its investment grade status in September 2015. Meanwhile, theBrazilian real depreciated considerably against the US dollar, reaching its weakest point inSeptember 2015. The Brazilian economy registered four consecutive quarters of negativegrowth in the review period, marking the longest recession since the 1930s. Inflationarypressures also increased, with inflation peaking at over 10% at the beginning of 2016, well inexcess of the central bank’s 2.5%-6.5% target band. This forced the central bank to raiseinterest rates two times over the review period, taking them to 14.25%, despite theextremely weak economic backdrop. The rising cost of debt added to pressure on companyearnings, which were also hit by uncertainty over tax policy.

At the same time, a corruption scandal at state-owned oil producer Petrobras has cast ashadow over Brazilian business and politics. In a two-year investigation known as OperationCarwash, prosecutors uncovered a bribery scheme at the oil giant. The investigationrevealed that senior figures at Petrobras had conspired with construction companies toinflate the value of contracts, with the extra revenue being funnelled into political parties.

By December 2015, the president of Brazil’s lower house proposed impeachment, citingallegations that Rousseff manipulated the federal budget to disguise a growing deficit. Thevote on impeachment on 17th April 2016 was overwhelmingly backed by the lower house.The Brazilian market rallied in the first four months of 2016 following the prospect ofimpeachment proceedings, helped by the Brazilian real appreciating against the US dollar.Investors also welcomed the appointment of Michel Temer as interim president, with hisleadership widely expected to be more market friendly.

Portfolio reviewAgainst this challenging backdrop, the trust’s net asset value and share price underperformedthe benchmark. Stock selection contributed to and asset allocation detracted from relativeperformance.

An overweight position in the industrials sector detracted from performance. Individualstock selection in this sector also detracted from value, with one of the largest detractorsbeing an overweight position in Valid. The company, which manufactures chips used inmobile phones and credit cards, had been at the forefront of the creation of chips used incredit cards in the US, where it benefited from the weakening real during 2015. However, itcame under pressure as sales proved weaker than expected. Following a strong third

Luis Carrillo

Sophie Bosch De Hood

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quarter, Valid announced weaker-than-expected results for the fourth quarter of 2015. Wecontinue to like the stock and are confident in its long-term outlook.

Stock selection in materials was detrimental, where an overweight position in Suzanodetracted from returns, while not holding Fibria added value. Both pulp and papercompanies fell behind the rally in the Brazilian market so far this year, due to weakness inpulp pricing in China and Europe. Results of both exporters were also negatively impactedby the appreciation in the Brazilian real this year. Stock selection and an underweight inutilities also detracted, where not holding steel company CSN detracted from relativeperformance. The stock – which we do not hold due to concerns around its high levels ofleverage – benefited from short covering during the market’s rally this year.

Positive contributions came from both our sector allocation to consumer staples andindividual stock selection within this sector. An overweight position in drugstore chain RaiaDrogasil was the biggest contributor at the stock level. Drugstores continued to reportpositive same-store sales, beating inflation, in the period. Raia Drogasil also benefited fromstrong execution by management, resulting in an increase in margins, an expansion in floor

PERFORMANCE ATTRIBUTION

Year to Year to30th April 30th April2016 2015

Contributions to total return % % % %

Benchmark return –10.9 –9.5

Asset allocation –3.3 +0.2

Stock selection +1.6 –4.0

Gearing/cash +0.0 +0.1

Investment Manager’s contribution –1.7 –3.7

Portfolio return –12.6 –13.2

Management fee/other expenses –2.0 –1.9

Share buybacks +0.2 +0.5

Other effects –1.8 –1.4

Return on net assets –14.4 –14.6

Impact of change in discount –3.8 +2.7

Return to shareholders –18.2 –11.9

Source: FactSet, JPMAM and Morningstar. All figures are on a total return basis.

Performance attribution analyses how the Company achieved its recorded performancerelative to its benchmark.


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INVESTMENT MANAGERS’ REPORT CONTINUED

space and double-digit earnings growth. We maintain our position in the stock, as we believethis trend is likely to continue. Elsewhere in the consumer staples sector, not holding JBS,one of the largest meat producers globally, was also among the biggest stock-levelcontributors whilst an underweight position in food company BRF, also in the consumerstaples sector, contributed positively, as the stock suffered from weakness in the domesticmarket.

Overall, the trust performed relatively well until the beginning of 2016, when the Brazilianstock market rallied sharply. This was due to the fact that in February 2016, we held asignificant percentage – close to 9% – of the trust outside of Brazil, which affectedperformance as it meant we were unable to participate fully in the rally. Some of thesepositions contributed positively, such as Credicorp and Falabella, while names such as Copadetracted. We added to Brazilian holdings that met our quality profile and that we expectedto participate fully in a market rally, particularly to banks, notably Banco Bradesco, whilestaying away from names such as Petrobras, steel names and Vale, which don’t meet ourquality standards.

OutlookThe rally in Brazilian equities that we’ve seen so far this year continues, with sentimentbuoyed by prospects of the impeachment of President Rousseff. In the short term, weremain cautious given the recent strength in the market. We believe that the next fewmonths will be crucial to understanding how much interim president Temer can achieve, andwhether he is capable of obtaining congressional approval for the reforms that Brazil needs.If inflation begins to come down, as we expect, rates will then come down, and this willprovide a positive environment for many companies. We believe that much of the recessionof the past two years is down to confidence, and that if we see Temer taking the right action,we could see confidence returning to the economy.

In the long term, we believe that Brazil is past the worst of the recession, and we expectearnings to gradually recover from their very depressed levels. We believe Brazil’s economicpath is likely to be a difficult one, even under the most optimistic scenario, and we thereforecontinue to prefer quality and domestically-oriented stocks with good long-term growthprospects irrespective of the impact of short-term economic conditions.

Luis CarrilloSophie Bosch De HoodInvestment Manager 19th July 2016

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SUMMARY OF RESULTS

2016 2015

Total returns for the year ended 30th April

Return to shareholders1 –18.2% –11.9%Return on net assets2 –14.4% –14.6%Benchmark3 –10.9% –9.5%

Net asset value, share price and discount % change

Net assets (£’000) 23,780 29,267 –18.7Shares in issue (excluding shares held in Treasury) 45,774,854 47,792,362 –4.2Net asset value per share 51.9p 61.2p –15.2Share price 46.4p 57.3p –19.0Share price discount to net asset value per share 10.6% 6.4%

Revenue for the year ended 30th April

Gross revenue attributable to shareholders (£’000) 683 952 –28.3Net revenue return attributable to shareholders (£’000) 212 203 +4.4Revenue return per share 0.46p 0.40p +15.0Dividend per share 0.50p 0.40p +25.0

Gearing/(net cash) at 30th April4 (2.9)% (2.2)%

Ongoing charges5 1.96% 1.90%

1 Source: Morningstar.2 Source: J.P. Morgan.3 Source: Datastream. The Company’s benchmark is the MSCI Brazil 10/40 Index, with net dividends reinvested, in sterling terms.4 Gearing represents the excess amount above shareholders’ funds of total assets expressed as a percentage of the shareholders’ funds. Total assets include total investments and

net current assets/liabilities less cash/cash equivalents. If the amount calculated is negative, this is shown as a ‘net cash’ position. 5 Ongoing charges represent the management fee and all other operating expenses excluding any performance fee payable, expressed as a percentage of the average daily net

assets during the year and are calculated in accordance with guidance issued by the AIC in May 2012.


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TEN LARGEST EQUITY INVESTMENTS AT 30TH APRIL 2016

2016 2015 Valuation ValuationCompany Sector £’000 %1 £’000 %1

Itaú Unibanco ADR Financials 2,068 9.0 2,569 9.0Banco Bradesco ADR Financials 1,978 8.6 2,594 9.1Ambev ADR Consumer Staples 1,893 8.2 2,039 7.1BM&F Bovespa Sa Bolsa de Valores Financials 1,371 6.0 1,083 3.8Drogasil2 Consumer Staples 1,045 4.6 890 3.1Valid Industrials 971 4.2 1,218 4.3Lojas Renner Consumer Discretionary 955 4.2 1,060 3.7Ultrapar Participações Energy 923 4.0 964 3.4Kroton Educacional2 Consumer Discretionary 855 3.7 686 2.4BB Seguridade Participações Financials 835 3.6 1,063 3.7

Total3 12,894 56.11 Based on total investments of £23.0m (2015: £28.6m). 2 Not within the ten largest equity investments at 30th April 2015.3 At 30th April 2015, the value of the ten largest equity investments amounted to £14.4m representing 50.5% of total investments.

SECTOR ANALYSIS

30th April 2016 30th April 2015 Portfolio Benchmark Portfolio Benchmark %1 % %1 %

Financials 34.4 29.6 34.6 29.1Industrials 18.2 6.0 20.3 5.9Consumer Staples 12.7 19.5 16.1 20.2Consumer Discretionary 12.2 6.3 11.7 6.8Information Technology 6.9 4.9 3.5 5.1Utilities 4.9 6.0 4.0 5.8Materials 4.3 10.2 4.5 10.5Energy 4.0 13.7 3.4 12.6Health Care 2.4 0.7 1.9 0.9Telecommunication Services — 3.1 — 3.1

Total 100.0 100.0 100.0 100.01 Based on total investments of £23.0m (2015: £28.6m).


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LIST OF INVESTMENTS AT 30TH APRIL 2016

ValuationCompany £’000

FinancialsItaú Unibanco ADR 2,068Banco Bradesco ADR 1,978BM&F Bovespa Sa Bolsa de Valores 1,371BB Seguridade Participações 835Itaúsa Investimentos Itaú1 730Credicorp2 (Peru) 576Corporación Inmobiliaria Vesta2 (Mexico) 224Qualitas Controladora SAB De CV2 (Mexico) 113Total Financials 7,895

IndustrialsValid 971WEG 761CCR 689Embraer ADR 424Localiza Rent a Car 412Copa Holdings2 (Panama) 290Wilson Sons 271Iochpe-Maxion 202Marcopolo1 171Total Industrials 4,191

Consumer StaplesAmbev ADR 1,893Drogasil 1,045Total Consumer Staples 2,938

Consumer DiscretionaryLojas Renner 955Kroton Educacional 855S.A.C.I. Falabella2 (Chile) 384EZ Tec Empreendimentos 241Fras-Le 234Arezzo Indústria E Comércio 122Total Consumer Discretionary 2,791

Information TechnologyCielo 715Linx 543Globant2 (Luxembourg) 321Total Information Technology 1,579

ValuationCompany £’000

UtilitiesTractebel Energia 563CPFL Energia 297Transmissora Aliança de Energia Elétrica 282Total Utilities 1,142

MaterialsSuzano Papel e Celulose1 503Eternit 252Fibria Celulose 235Total Materials 990

EnergyUltrapar Participações 923Total Energy 923

Health CareOdontoprev 416Ouro Fino Saude Animal Participações 139Total Health Care 555

Total Investment Portfolio 23,0041 Preference shares.2 Non-Brazilian holdings.

The portfolio comprises investments in equity shares and ADRs

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The aim of the Strategic Report is to provide shareholders with theability to assess how the Directors have performed their duty topromote the success of the Company during the year under review.To assist shareholders with this assessment, the Strategic Reportsets out the structure and objective of the Company, its investmentpolicies and risk management, performance and key performanceindicators, share capital, principal risks and how the Company seeksto manage those risks, the Company’s environmental, social andethical policy and its long term viability.

Structure and Objective of the CompanyJPMorgan Brazil Investment Trust plc is an investment trustcompany that has a premium listing on the London Stock Exchange.Its objective is to provide shareholders with long term total returns,predominantly comprising capital growth but with the potential forincome, by investing primarily in Brazilian focused companies. Inseeking to achieve this objective, JPMorgan Funds Limited (‘JPMF’ orthe ‘Manager’), an affiliate of JPMAM, has been appointed as theCompany’s Alternative Investment Fund Manager (‘AIFM’) to manageits assets and also to act as the Company Secretary. The Board hasdetermined an investment policy and related guidelines and limitsas described below.

The Company is subject to UK and European legislation andregulations including UK company law, Financial ReportingStandards, the UK Listing, Prospectus, Disclosure and TransparencyRules, taxation law and the Company’s own Articles of Association.

The Company is an investment company within the meaning ofSection 833 of the Companies Act 2006 and has been approved byHM Revenue & Customs as an investment trust (for the purposes ofSections 1158 and 1159 of the Corporation Tax Act 2010). As a result,the Company is not liable for taxation arising on capital gains. TheCompany is not a close company for taxation purposes.

Investment Policies and Risk ManagementIn order to achieve the Company’s investment objective and to seekto manage risk, the Board imposes various investment limits andrestrictions.

• The Company invests primarily in Brazilian companies and thoseincorporated or listed outside Brazil whose Brazilian operationsconstitute a material part of their business. Up to 10% of assetsmay be invested in companies focused on other Latin Americancountries.

• There is no limit placed on the market capitalisation or sector ofany investee companies.

• The Company may reduce its equity holdings to a minimum of60% of its gross assets if it is considered to be beneficial toperformance.

• The Company may invest in listed or unlisted securities orequity-linked securities, in addition to fixed income bonds.Unlisted securities will not exceed 10% of gross assets at the timeof investment.

• The Company may invest no more than 15% of gross assets in anyone company or group at the time of investment.

• The Company may invest no more than 10% of gross assets inother UK listed investment companies (including investmenttrusts) at the time of investment.

• The Company may use gearing when appropriate to increasepotential returns to shareholders.

Compliance with the Board’s investment restrictions and guidelinesis monitored continuously by the Manager and is reported to theBoard on a monthly basis.

PerformanceIn the year to 30th April 2016, the Company produced a portfolioreturn of –12.6% pre-expenses and share buy backs, compared withthe return on the Company’s benchmark index of –10.9%. The returnon net assets was –14.4%. At 30th April 2016, the value of theCompany’s investment portfolio was £23.0 million (2015:£28.6 million). The Investment Managers’ Report on pages 6 to 8includes a review of developments during the period as well asinformation on investment activity within the Company’s portfolio.

Total Return, Revenue and Dividends Gross total loss amounted to £4.0 million (2015: £4.5 million) and nettotal loss after deducting administrative expenses and taxation,amounted to £4.4 million (2015: £5.3 million). Distributable incomefor the year amounted to £0.2 million (2015: £0.2 million).

The Directors recommend a final dividend of 0.50p (2015: 0.40p) perOrdinary share payable on 16th September 2016 to holders on theregister at the close of business on 19th August 2016. This dividendwill cost £229,000 (2015: £191,000) and the revenue reserve afterallowing for the dividend will amount to £517,000 (2015: £530,000).

Key Performance Indicators (‘KPIs’) The Board uses a number of financial KPIs to monitor and assessthe performance of the Company. The principal KPIs are:

BUSINESS REVIEW

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• Performance against the benchmark indexThis is the most important KPI by which performance is judgedand it is discussed in the Investment Managers’ report in moredetail on pages 6 to 8.

Performance Relative to Benchmark IndexFIGURES HAVE BEEN REBASED TO 100 AT 25TH APRIL 2010

Source: Morningstar.

JPMorgan Brazil – share price.

JPMorgan Brazil – net asset value per share.

The Company’s benchmark (represented by the grey dotted line) is the MSCIBrazil 10/40 Index, with net dividends reinvested, in sterling terms.

Performance since InceptionFIGURES HAVE BEEN REBASED TO 100 AT 25TH APRIL 2010

Source: Morningstar/MSCI.

JPMorgan Brazil – share price.

JPMorgan Brazil – net asset value per share.

Benchmark

• Performance against the Company’s peers The principal objective is to achieve capital growth. The Boardalso monitors performance compared with a broad range ofcompetitor funds, however, there is a limited degree ofcomparability with the Company’s unique investment objectiveand policies. Performance is discussed in the Chairman’sStatement in detail on pages 3 to 5.

• Share price premium/(discount) to net asset value (‘NAV’)per shareThe Board has adopted a share repurchase policy that seeks toaddress imbalances in supply of and demand for the Company’sshares in the market and thereby seeks to manage the volatilityand absolute level of the premium or discount to NAV per shareat which the Company’s shares trade. The Board’s intention is touse its share repurchase and issuance powers with the aim ofestablishing a reasonably stable long term level of premium ordiscount. In the year to 30th April 2016, the shares traded at adiscount varying between 0.9% and 14.7% (on a month endbasis).

In addition, a tender offer may be triggered if the shares havetraded on average at a discount of more than 5% to the Net AssetValue per share in the 30 calendar days ending on 31st July and31st January in each year. If such a discount arises in anycalculation period, the Board, subject to its overriding discretionnot to proceed with a tender offer at any time and to thesatisfaction of any relevant conditions, will seek to procure thatthere will be a tender offer for 15% of the then outstandingissued ordinary share capital on each such occasion. The price atwhich the shares will be acquired will be determined by the Boardat the time but it is currently intended to reflect the costs ofrealising the Company’s investments in order to generate cashproceeds for exiting investors less an additional exit charge of 2%of this price. No tender offer was triggered during the financialyear.

Premium (+)/Discount (–)

Source: Datastream.

JPMorgan Brazil – share price premium/(discount) to net asset value per share.

• Ongoing chargesThe Ongoing Charges represents the Company’s management feeand all other operating expenses excluding performance fee,expressed as a percentage of the average daily net assets duringthe year. The Ongoing Charges for the year were 1.96% (2015:1.90%). The Board pays close attention to the level of expenses.

75

80

85

90

95

100

105

110

115

30/04/1630/04/1530/04/1430/04/1330/04/1230/04/1125/04/10

20

40

60

80

100

120

30/04/1630/04/1530/04/1430/04/1330/04/1230/04/1125/04/10

–15

–12

–9

–6

–3

0

3

6

9

12

30/04/1630/04/1530/04/1430/04/1330/04/1230/04/1125/04/10

Brazil_pp01_15 18/07/2016 15:57 Page 13



BUSINESS REVIEW CONTINUED

The charges for the year under review were consideredreasonable, particularly given the smaller size of the Company.In light of the reduced size of the Company, it was agreed that themanagement fee would be reduced to the extent necessary toensure that the Company’s Ongoing Charges ratio do not exceed2% with effect from 1st May 2015. The management fee chargedwas £123,000 after being reduced by £94,000 for the year ended30th April 2016.

Share CapitalThe Company has authority to issue new shares, to repurchaseshares into Treasury and to repurchase shares for cancellation.

During the year, the Company repurchased a total of 2,017,508(2015: 5,328,957) ordinary shares into Treasury, this represented3.2% (2015: 8.6%) of the issued share capital. As at 30th April 2016,15,954,044 (2015: 13,936,536) shares were held in Treasury. TheCompany will reissue shares held in Treasury only at a premium toNAV. There were no shares repurchased for cancellation nor anyshares issued.

Resolutions to renew the authority to repurchase shares and issuenew shares will be put to shareholders at the forthcoming AnnualGeneral Meeting. More details are given on pages 18 and 19 and thefull text of the resolutions is set out in the Notice of Meeting onpages 54 and 55.

Board DiversityThe Board has no current intention of making any changes to theBoard composition. When recruiting a new Director in future, theBoard’s policy is to introduce diversity subject to identifyingcandidates with optimum skill, knowledge and experience relevantto the Company’s requirements. At 30th April 2016, there werethree male Directors and no female Directors on the Board.

Employees, Social, Community and Human RightsIssuesThe Company has a management contract with the Manager. It has noemployees and all of its Directors are non-executive. The day to dayactivities are carried out by third parties. There are therefore nodisclosures to be made in respect of employees. The Board notes theManager’s policy statements in respect of Social, Community andEnvironmental and Human Rights issues, as highlighted in italics:

Social, Community, Environmental and Human Rights

The Manager believes that companies should act in a sociallyresponsible manner. Although our priority at all times is the besteconomic interests of our clients, we recognise that, increasingly,non-financial issues such as social and environmental factors havethe potential to impact the share price, as well as the reputation of

companies. Specialists within the Manager’s environmental, socialand governance (‘ESG’) team are tasked with assessing howcompanies deal with and report on social and environmental risks andissues specific to their industry.

The Manager is also a signatory to the United Nations Principles ofResponsible Investment, which commits participants to six principles,with the aim of incorporating ESG criteria into their processes whenmaking stock selection decisions and promoting ESG disclosure. Ourdetailed approach to how we implement the principles is available onrequest.

Greenhouse Gas EmissionsThe Company is managed by the Manager. It has no employees andall of its Directors are non-executive, the day to day activities beingcarried out by third parties. There are therefore no disclosures to bemade in respect of employees. The Company itself has no premises,consumes no electricity, gas or diesel fuel and consequently doesnot have a measurable carbon footprint. The Company’s manager isa signatory to the Carbon Disclosure Project and JPMorgan Chase isa signatory to the Equator Principles on managing social andenvironmental risk in project finance.

The Modern Slavery Act 2015 (the ‘MSA’)The MSA requires companies to prepare a slavery and humantrafficking statement for each financial year of the organisation.As the Company has no employees and does not supply goodsand services, the MSA does not apply directly to it. The MSArequirements more appropriately relate to JPMF and JPMAM.JPMorgan’s statement on Human Rights can be found on thefollowing website: www.jpmorganchase.com/corporate/About-JPMC/ab-human-rights.htm

Principal RisksWith the assistance of the Manager, the Board has drawn up a riskmatrix, which identifies the key risks to the Company. The Directorshave carried out a robust assessment of the principal risks facingthe Company. These key risks fall broadly into the followingcategories:

• Investment and Strategy: An inappropriate investment strategy,for example asset allocation or the level of gearing, may lead tounderperformance against the Company’s benchmark index andpeer companies, resulting in the Company’s shares trading on awider discount. The Board manages these risks by diversificationof investments through its investment restrictions and guidelines,which are monitored and reported on. The Manager provides theDirectors with timely and accurate management information,including performance data and attribution analysis, revenueestimates, liquidity reports and shareholder analyses. The Boardmonitors the implementation and results of the investment

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15

process with the investment managers who attend all Boardmeetings, and reviews data which show statistical measures ofthe Company’s risk profile. The investment managers would befree to employ the Company’s gearing tactically, within a strategicrange set by the Board. The Board holds a separate meetingdevoted to strategy each year. In addition to the regular Boardmeetings, the Board visits Brazil from time to time to discussstrategy and consider all relevant aspects of investment in Brazil.

• Financial: The financial risks faced by the Company includeforeign currency risk, interest rate risk, other price risk, liquidityrisk and credit risk. Further details are disclosed in note 21 onpages 47 to 51.

• Accounting, Legal and Regulatory: In order to qualify as aninvestment trust, the Company must comply with Section 1158.Details of the Company’s approval are given under ‘Business ofthe Company’ above. Were the Company to breach Section 1158, itmight lose investment trust status and, as a consequence, gainswithin the Company’s portfolio could be subject to Capital GainsTax. The Section 1158 qualification criteria are continuallymonitored by the Manager and the results reviewed by the Boardeach month. The Company must also comply with the provisionsof the Companies Act 2006 and, since its shares are listed on theLondon Stock Exchange, the UKLA Listing Rules, Disclosure andTransparency Rules (‘DTRs’) and, as an investment trust, theAlternative Investment Fund Managers Directive (‘AIFMD’).A breach of the Companies Act could result in the Companyand/or the Directors being fined or the subject of criminalproceedings. Breach of the UKLA Listing Rules or DTRs couldresult in the Company’s shares being suspended from listingwhich in turn would breach Section 1158. The Board relies on theservices of its Company Secretary, the Manager and itsprofessional advisers to ensure compliance with the CompaniesAct 2006 and the UKLA Listing Rules, DTRs and AIFMD.

• Corporate Governance and Shareholder Relations: Details of theCompany’s compliance with Corporate Governance best practice,including information on relations with shareholders, are set outon pages 19 to 23.

• Operational: Disruption to, or failure of the Manager’s accounting,dealing or payments systems or the depositary’s or the custodian’srecords may prevent accurate reporting and monitoring of theCompany’s financial position. On 1st July 2014, the Companyappointed BNY Mellon & Depositary (UK) Limited to act as itsdepositary, responsible for overseeing the operation of thecustodian, JPMorgan Chase Bank, N.A., and the Company’s cashflow. Details of how the Board monitors the services provided bythe Manager and its associates and the key elements designed toprovide effective internal control are included within the RiskManagement and Internal Control section of the CorporateGovernance report on pages 22 and 23.

• Political and Economic: Changes in financial or tax legislation,including in Brazil, may adversely affect the Company. TheManager makes recommendations to the Board on accounting,dividend and tax policies and the Board seeks external advicewhere appropriate. In addition, the Company is subject toadministrative risks, such as the imposition of restrictions on thefree movement of capital. The Board monitors the impact of anychanges in such restrictions on the Company.

Long Term ViabilityTaking account of the Company’s current position, the principal risksthat it faces and their potential impact on its future developmentand prospects, the Directors have assessed the prospects of theCompany, to the extent that they are able to do so, over the nextthree years. They have made that assessment by considering thoseprincipal risks, the Company’s investment objective and strategy,the investment capabilities of the Manager and the current outlookfor the Brazil economy and equity markets. In the light of thereduced size of the Company, JPMorgan has agreed to reduce themanagement fee to the extent necessary to ensure that theCompany’s ongoing charges ratio does not exceed 2%. Furthermore,JPMorgan has agreed to terminate the performance fee with effectfrom 1st May 2016. The Manager continues to remain supportive ofthe Company.

In determining the appropriate period of assessment the Directorshad regard to their view that, given the Company’s objective ofachieving long term capital growth, shareholders should considerthe Company as a long term investment proposition. This is alsocoterminous with the following continuation vote in three yearstime in 2019. Thus the Directors consider three years to be anappropriate time horizon to assess the Company’s viability.

The Directors confirm that they have a reasonable expectation thatthe Company will be able to continue in operation and meet itsliabilities as they fall due over the three year period of assessment.

Future DevelopmentsClearly, the future development of the Company is much dependentupon the success of the Company’s investment strategy in the lightof economic and equity market developments and the continuedsupport of its shareholders. The Investment Managers discuss theoutlook in their report on page 8.

For and on behalf of the Board Howard Myles, Chairman

19th July 2016

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BOARD OF DIRECTORS

Howard MylesChairman since 24th February 2010.

Remuneration: £30,000.

Qualifications for Board Membership: He was a partner in Ernst & Young from 2001 until June2007 and was responsible for the investment funds corporate advisory team. He was previouslywith UBS Warburg from 1987 to 2001. Mr. Myles began his career in stockbroking in 1971 as anequity salesman and joined Touche Ross in 1975 where he qualified as a chartered accountant.In 1978 he joined W. Greenwell & Co. in the corporate broking team and in 1987 moved to SGWarburg Securities where he was involved in a wide range of commercial and industrialtransactions in addition to leading Warburg’s corporate finance function for investment funds.He is a fellow of the Institute of Chartered Accountants in England and Wales and of TheChartered Securities Institute. He is currently a non-executive director of Aberdeen PrivateEquity Fund Limited, Baker Steel Resources Trust Limited, Lazard World Trust Fund SICAF, SmallCompanies Dividend Trust PLC and BBGI SICAV S.A.

Connections with Manager: None.

Shared directorships with other Directors: None.

Shareholding in Company: Nil.

Victor Bulmer-ThomasA Director since 24th February 2010.


Qualifications for Board Membership: He is currently a non executive director of New IndiaInvestment Trust PLC. From 2001 to 2006 he was the Director of Chatham House. From 1992 to1998 he was the Director of the Institute of Latin American studies at the University of London.He was made a Commander of the Order of the Southern Cross by the Brazilian government in1998.



Shareholding in Company: 179,350 Ordinary Shares.

Mark Bridgeman Chairman of the Audit Committee.

A Director since 24th February 2010.


Qualifications for Board Membership: He was Global Head of Research at Schroders PLC untillate 2008, when he left to manage his own family farming business. Over the course of 19 yearsspent at Schroders he worked both as an investment analyst and fund manager in the UK andaround the world, where his roles included being an Emerging Markets fund manager and Headof Emerging Markets research. Since leaving Schroders he has taken on a number of non-executive and advisory roles within the investment trust, private equity, land management andcharity sectors. He is currently a non-executive director of Blackrock Emerging Europe plc andThe Law Debenture Trust Corporation plc.



Shareholding in Company: 21,007 Ordinary Shares.

Governance

All Directors are members of the Audit Committee and are considered independent of the Manager.

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17

DIRECTORS’ REPORT

The Directors present their report and audited financial statementsfor the year ended 30th April 2016.

Management of the CompanyThe Manager and Company Secretary is JPMorgan Funds Limited(‘JPMF’), a company authorised and regulated by the FCA. JPMF, anaffiliate of JPMAM is employed under a contract which is subject tosix months’ notice of termination. If the Company wishes toterminate the contract on less than six months’ notice, the balanceof the six months’ remuneration is payable by way of compensation.

JPMF is a wholly-owned subsidiary of JPMorgan Chase Bank which,through other subsidiaries, also provides marketing, banking,dealing and custodian services to the Company.

The Board conducts a formal evaluation of the Manager on anannual basis. The evaluation includes consideration of theinvestment strategy and process of the Manager, performanceagainst the benchmark over the long term and the support that theCompany receives from the Manager. As a result of the evaluationprocess, the Board is of the opinion that the continuingappointment of the Manager is in the interests of the shareholders.

The Alternative Investment Fund Managers Directive(‘AIFMD’)JPMF is the Company’s alternative investment fund manager(‘AIFM’). It is approved as an AIFM by the FCA. For the purposes ofthe AIFMD the Company is an alternative investment fund (‘AIF’).

JPMF has delegated responsibility for the day to day managementof the Company’s portfolio to JPMAM. The Company has appointedBNY Mellon Trust and Depositary (UK) Limited (‘BNY’) as itsdepositary. BNY has appointed JPMorgan Chase Bank, N.A. as theCompany’s custodian. BNY is responsible for the oversight of thecustody of the Company’s assets and for monitoring its cash flows.

The AIFMD requires certain information to be made available toinvestors in AIFs before they invest and requires that materialchanges to this information be disclosed in the annual report ofeach AIF. An Investor Disclosure Document, which sets outinformation on the Company’s investment strategy and policies,leverage, risk, liquidity, administration, management, fees, conflictsof interest and other shareholder information is available on theCompany’s website at www.jpmbrazil.co.uk There have been nomaterial changes (other than those reflected in these financialstatements) to this information requiring disclosure.

Any information requiring immediate disclosure pursuant to theAIFMD will be disclosed to the London Stock Exchange through aprimary information provider.

The Company’s leverage and JPMF’s remuneration disclosures areset out on page 53.

Management FeeUnder the terms of the Management Agreement, the managementfee is charged at the rate of 1.0% per annum of the Company’s totalassets less current liabilities. The fee is calculated and paid monthlyin arrears. Investments made by the Company in investment fundson which the Manager or a member of its group earns a fee areexcluded from the calculation and therefore attract no managementfee.

Up to 30th April 2016, the Manager was also entitled to receive aperformance fee equivalent to 10% of any outperformance of theCompany’s Net Asset Value per Ordinary share (on a total returnbasis) over the Company’s benchmark index, over a performancefee measurement period. During the year ended 30th April 2016,the Company produced a negative net asset value total return pershare, and underperformed its benchmark index. As a result oftermination of performance fees with effect from 1st May 2016,no performance fee will be carried forward to future years.

The Manager has agreed to reduce management fees to cap theCompany’s Ongoing Charges ratio to 2% per annum for a furtherthree years up to the 2019 Continuation Vote. Further details aregiven under Ongoing Charges on pages 13 and 14.

Directors All Directors served throughout the year and their details areincluded on page 16. Details of their beneficial shareholdings maybe found in the Directors’ Remuneration Report on page 25.

Mark Bridgeman will stand for reappointment at the forthcomingAnnual General Meeting.

Director Indemnification and InsuranceAs permitted by the Company’s Articles of Association, the Directorshave the benefit of an indemnity which is a qualifying third partyindemnity, as defined by Section 234 of the Companies Act 2006.The indemnities were in place during the period and as at the dateof this report.

An insurance policy is maintained by the Company whichindemnifies the Directors of the Company against potentialliabilities arising in the conduct of their duties. There is no coveragainst fraudulent or dishonest actions.

Disclosure of information to the Auditor In the case of each of the persons who are Directors of theCompany at the time when this report was approved:

(a) so far as each of the Directors is aware, there is no relevantaudit information (as defined in the Companies Act 2006) ofwhich the Company’s auditor is unaware, and

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Governance continued

DIRECTORS’ REPORT CONTINUED

(b) each of the Directors has taken all the steps that he ought tohave taken as a Director in order to make himself aware ofany relevant audit information (as defined) and to establishthat the Company’s auditor is aware of that information.

The above confirmation is given and should be interpreted inaccordance with the provision of Section 418 of the Companies Act2006.

Independent AuditorErnst & Young LLP have expressed their willingness to continue inoffice as auditor to the Company and a resolution proposing theirreappointment and to authorise the Directors to agree theirremuneration for the ensuing year will be put to shareholders at theforthcoming Annual General Meeting. The Audit Committee hasconsidered the possibility of tendering the role of auditor and willreview the timing of a tender in accordance with the permitted timelimits.

Section 992 Companies Act 2006The following disclosures are made in accordance with Section 992of the Companies Act 2006.

Capital StructureThe Company’s capital structure is summarised on the ‘Features’page.

Voting Rights in the Company’s sharesDetails of the voting rights in the Company’s shares as at the date ofthis report are given in note 16 to the Notice of Meeting on page 56.

Notifiable Interests in the Company’s Voting RightsAt the financial year end the following had declared a notifiableinterest in the Company’s voting rights:

Ordinary shares Number ofShareholders shares held %

JPMorgan Chase & Co. 5,067,702 11.74Rathbone Investment Management Ltd 3,534,190 6.09Brewin Dolphin 2,628,523 4.95

Since the year end no further notifiable interests have beendeclared and no changes to the above holdings had been notified asat the date of this report.

The Company is also aware that approximately 19% of theCompany’s total voting rights are held by individuals throughsavings products managed by the Manager and registered in thename of Chase Nominees Limited. If those voting rights are notexercised by the beneficial holders, in accordance with the termsand conditions of the savings products, under most circumstancesthe Manager has the right to exercise those voting rights. That right

is subject to certain limits and restrictions and falls away at theconclusion of the relevant general meeting.

The rules concerning the appointment and replacement ofDirectors, amendment of the Articles of Association and powers toissue or buy back the Company’s shares are contained in theArticles of Association of the Company and the Companies Act2006.

There are no restrictions concerning the transfer of securities in theCompany; no special rights with regard to control attached tosecurities; no agreements known to the Company between holdersof securities regarding their transfer; no agreements which theCompany is party to that affect its control following a takeover bid;and no agreements between the Company and its directorsconcerning compensation for loss of office.

Listing Rule 9.8.4RListing Rule 9.8.4R requires the Company to include certaininformation in a single identifiable section of the Annual Report ora cross reference table indicating where the information is set out.The Directors confirm that there are no disclosures to be made inthis regard.

Annual General MeetingNOTE: THIS SECTION IS IMPORTANT AND REQUIRES YOURIMMEDIATE ATTENTION. If you are in any doubt as to theaction you should take, you should seek your own personalfinancial advice from your stockbroker, bank manager,solicitor or other financial adviser authorised under theFinancial Services and Markets Act 2000.

Resolutions relating to the following items of special business willbe proposed at the forthcoming Annual General Meeting:

(i) Authority to allot relevant Securities (resolution 7) The Directors will seek authority at the Annual General Meeting toissue new shares equivalent to 10% of the present issued sharecapital. This authority will remain in effect until the conclusion ofthe Annual General Meeting in 2017 unless renewed at an earliergeneral meeting. The full text of the resolution is set out in theNotice of Meeting on page 54.

The Directors intend to use this authority when they consider that itis in the best interests of shareholders to do so and to satisfycontinuing demand for the Company’s Ordinary shares. It is alsoadvantageous for the Company to be able to issue new shares (or tosell Treasury shares) to participants purchasing shares through theJPMorgan savings products. As such issues are only made at pricesgreater than the NAV, they are not dilutive. They increase the assetsunderlying each share and spread the Company’s administrativeexpenses, other than the management fee which is charged on thevalue of the Company’s assets, over a greater number of shares.

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(ii) Disapplication of pre-emption rights (resolution 8) Resolution 8 seeks authority to disapply statutory pre-emptionrights on any issues of new shares (subject to the passing ofresolution 7). This avoids the legal requirement to offer them prorata to all shareholders. The full text of the resolution is set out inthe Notice of Meeting on page 54.

(iii) Authority to repurchase the Company’s shares (resolution 9) A resolution will be proposed at the Annual General Meeting thatthe Company be authorised to purchase in the market up to 14.99%of the Company’s issued share capital as at the date of the passingof this resolution using its distributable reserves.

The decision as to whether the Company repurchases any shareswill be at the discretion of the Board and purchases will be made inthe market and at prices below the prevailing net asset value pershare. Under the rules of the London Stock Exchange, the maximumprice that may be paid on a purchase by a company of its sharesunder a general authority is 105% of the average of the middlemarket quotations of the shares for the five business daysimmediately before the day on which the purchase is made. Theminimum price that the Company will pay for a share will be onepence (the nominal value of each share). The Company will utilisethe authority to purchase shares on an ad hoc basis by either asingle purchase or a series of purchases as and when marketconditions are appropriate.

The authority to purchase shares will expire on 6th March 2017unless renewed at the forthcoming Annual General Meeting or untilthe whole of the 14.99% has been acquired, whichever is the earlier.The authority may be renewed by shareholders at any time at ageneral meeting.

(iv) Continuation Vote (resolution 10)The Directors recommend that the Company continues in existenceas an investment trust for a further three year period.

Recommendation The Board considers that resolutions 7 to 10 are likely to promotethe success of the Company and are in the best interests of theCompany and its shareholders as a whole. The Directorsunanimously recommended that you vote in favour of the resolutionsas they intend to do in respect of their own beneficial holdings.

Corporate Governance StatementCompliance The Company is committed to high standards of corporategovernance. This statement, together with the Statement ofDirectors’ Responsibilities on page 26, indicates how the Companyhas applied the principles of good governance of the FinancialReporting Council’s UK Corporate Governance Code (the ‘UK

Corporate Governance’) and the AIC’s Code of CorporateGovernance (the ‘AIC Code’), which complements the UK CorporateGovernance Code and provides a framework of best practice forinvestment trusts.

Copies of the UK Corporate Governance Code and the AIC Code maybe found on the respective organisations’ websites at www.frc.org.ukand www.theaic.co.uk.

The Board is responsible for corporate governance and considersthat the Company has complied with the best practice provisions ofthe UK Corporate Governance Code, insofar as they are relevant tothe Company’s business, and the AIC Code throughout the periodunder review and up to the date of approval of the annual reportand accounts.

Role of the Board A management agreement between the Company and the Managersets out the matters which have been delegated to the Manager.This includes management of the Company’s assets and theprovision of accounting, company secretarial, administration, andsome marketing services. All other matters are reserved for theapproval of the Board. A formal schedule of matters reserved to theBoard for decision has been approved. This includes determinationand monitoring of the Company’s investment objectives and policyand its future strategic direction, gearing policy, management of thecapital structure, appointment and removal of third party serviceproviders, review of key investment and financial data and theCompany’s corporate governance and risk control arrangements.

The Board has procedures in place to deal with potential conflicts ofinterest and, in accordance with the requirements of the Bribery Act2010, has adopted appropriate procedures designed to preventbribery. It confirms that the procedures have operated effectivelyduring the period under review.

The Board meets on at least four occasions during the year andadditional meetings are arranged as necessary. Full and timelyinformation is provided by the Manager to the Board to enable itto function effectively and to allow Directors to discharge theirresponsibilities.

There is an agreed procedure for Directors to take independentprofessional advice if necessary and at the Company’s expense. Thisis in addition to the access that every Director has to the advice andservices of the Company Secretary, which is responsible to theBoard for ensuring that Board procedures are followed and forcompliance with applicable rules and regulations.

Board Composition The Board consists of three non-executive Directors, all of whomare regarded by the Board as independent of the Company’s

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Manager and Secretary. The Directors have a breadth of investment,business and financial skills and experience relevant to theCompany’s business. Brief biographical details of each Director areset out on page 16.

A review of Board composition and balance is included as part ofthe annual performance evaluation of the Board, details of whichmay be found below. The Board has considered whether a seniorindependent director should be appointed and has concluded that,as the Board is composed entirely of non-executive directors, this isunnecessary at present. However, the Chairman of the AuditCommittee leads the evaluation of the performance of the Chairmanand is available to shareholders if they have concerns that cannotbe resolved through discussion with the Chairman.

Tenure Directors are initially appointed until the following Annual GeneralMeeting when, under the Company’s Articles of Association, it isrequired that they be reappointed by shareholders. Thereafter, aDirector’s appointment runs for a term of three years. In the light ofthe performance evaluation carried out each year, the Board willdecide whether it is appropriate for the Director to seek anadditional term. A Director’s continuing appointment is subject tore-election by shareholders on retirement by rotation in accordancewith the Company’s Articles of Association. The Company’s Articlesof Association require that Directors stand for re-election at leastevery three years.

The Board recommends the reappointment of Mark Bridgemanfollowing a performance review conducted by the Audit Committeewhich concluded that he continues to add value to the Board.

The Board does not believe that length of service in itselfnecessarily disqualifies a Director from seeking reappointment but,when making a recommendation, the Board will take into accountthe ongoing requirements of the UK Corporate Governance Code,including the need to refresh the Board and its Committees.

The terms and conditions of Directors’ appointments are set out informal letters of appointment, copies of which are available forinspection on request at the Company’s registered office and at theAnnual General Meeting.

Meetings and Committees The Board delegates certain responsibilities and functions to theAudit Committee. Details of membership of the Audit Committee areshown with the Directors’ profiles on page 16.

The table below details the number of Board and Audit Committeemeetings attended by each Director. During the period under reviewthere were four Board meetings, as well as a private meeting of theDirectors to evaluate the Manager and three Audit Committeemeetings.

The table below details the number of Board and Committeemeetings attended by each Director. During the year there werefour Board meetings, including a separate meeting devoted tostrategy, two private meetings of the Directors, one of which was toevaluate the Manager, three Audit Committee meetings, one toconsider nomination matters.

Audit CommitteeBoard Meetings Meetings

Director Held(Attended) Held(Attended)

Mark Bridgeman 4(4) 3(3)Victor Bulmer-Thomas 4(4) 3(3)Howard Myles 4(4) 3(3)

In addition, there were a number of other ad hoc meetings foradministrative purposes.

Training and Appraisal On appointment, the Manager and Company Secretary provide allDirectors with induction training. Thereafter regular briefings areprovided on changes in regulatory requirements that affect theCompany and Directors. Directors are encouraged to attendindustry and other seminars covering issues and developmentsrelevant to investment trusts.

The Board has agreed procedures for the formal evaluation of theManager, its own performance and that of the Audit Committee andindividual Directors. Questionnaires, drawn up by the Board, arecompleted by each Director. The responses are collated and thendiscussed at a private meeting of the Audit Committee. Theevaluation of individual Directors is led by the Chairman, on thebasis of the questionnaires, and the Audit Committee Chairmanleads the evaluation of the Chairman’s performance.

Board CommitteeAudit Committee The Audit Committee, chaired by Mark Bridgeman, and comprisingall the independent Directors, meets at least twice each year toconsider audit matters. The members of the Audit Committeeconsider that they have the requisite skills and experience to fulfilthe responsibilities of the Committee.

The Committee reviews the actions and judgements of the Managerin relation to the half year and annual accounts and the Company’scompliance with the UK Corporate Governance Code.

During its review of the Company’s financial statements for the yearended 30th April 2016, the Audit Committee considered thefollowing significant issues, including those communicated by theAuditors during their reporting:

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Significant issue How the issue was addressed

The valuation of investments is undertaken inaccordance with the accounting policies, disclosedin note 1 to the accounts on page 37. Controls are inplace to ensure valuations are appropriate andexistence is verified through custodianreconciliations. The Board monitors significantmovements in the underlying portfolio.

The recognition of investment income is undertakenin accordance with accounting policy note 1(e) to theaccounts on page 38. The Board reviews subjectiveelements of income such as special dividends andagrees their treatment is relevant.

Approval for the Company as an investment trustunder Sections 1158 and 1159 has been obtained andongoing compliance with the eligibility criteria ismonitored by the Board on a regular basis.

Board has negotiated a cap on the Company’sOngoing Charges ratio to 2% by reducing themanagement fees with the Manager and thetermination of performance fees going forward. TheBoard has reviewed the Company’s revenue forecastfor the next 12 months and is comfortable with thegoing concern assessment.

The Board was made fully aware of any significant financialreporting issues and judgements made in connection with thepreparation of the financial statements.

As a result of the work performed above, the Committee hasconcluded that the Annual Report for the year ended 30th April2016, taken as a whole, is fair, balanced and understandable andprovides the information necessary for shareholders to assess theCompany’s performance, business model and strategy, and hasreported on these findings to the Board. The Board’s conclusions inthis respect are set out in the Statement of Directors’Responsibilities on page 26.

The Committee reviews the terms of the management agreementand examines the effectiveness of the Company’s risk managementand internal control systems, receives information from theManager’s Compliance department and reviews the scope andresults of the external audit, its effectiveness and cost effectiveness,the balance of audit and non-audit services, and the independenceand objectivity of the external Auditor. In the Directors’ opinion theAuditors are independent. The Committee also has a primaryresponsibility for making recommendations to the Board on thereappointment and removal of external Auditors. Representatives ofthe Company’s Auditor attends the Committee meeting at which thedraft annual report and accounts are considered.

Having reviewed the performance of the external Auditors,including assessing the quality of work, timing of communications

and work with the Manager, the Committee considered itappropriate to recommend their reappointment. The Boardsupported this recommendation which will be put to shareholdersat the forthcoming Annual General Meeting. The current audit firmhas audited the company’s financial statements since its launch in2010. The Company’s year ended 30th April 2016 is the currentAudit Partner’s fourth of a five year maximum term. Theperformance of the Auditors will continue to be reviewed annuallyby the Committee, taking into account all relevant guidance andbest practice.

The Directors’ statement on the Company’s system of riskmanagement and internal control is set out on pages 22 and 23.

The Committee fulfils the role of a Nomination Committee and meetsat least once a year to ensure that the Board has an appropriatebalance of skills to carry out its fiduciary duties and to select andpropose suitable candidates when necessary for appointment. Avariety of sources, including external search consultants, may beused to ensure that a wide range of candidates is considered. TheBoard’s policy on diversity, including gender, is to take account of thebenefits of these during the appointment process. However, theBoard remains committed to appointing the most appropriatecandidate, regardless of gender or other forms of diversity.Therefore, no targets have been set against which to report.

The Committee undertakes an annual performance evaluation toensure that all its members have devoted sufficient time andcontributed adequately to the work of the Board. In the light ofthese evaluations, the Committee makes recommendations to theBoard concerning the reappointment by shareholders of anyDirector under the ‘retirement by rotation’ provisions in theCompany’s Articles of Association. The Committee also reviewsDirectors’ fees and makes recommendations to the Board as andwhen required in relation to remuneration policy.

On an annual basis each Director submits a list of potential conflictsof interest for approval. These are considered carefully, taking intoaccount the circumstances surrounding them and, if consideredappropriate, are approved for a period of one year.

Terms of ReferenceThe Audit Committee has written terms of reference which defineclearly its responsibilities. Copies are available for inspection onrequest at the Company’s registered office and at the AnnualGeneral Meeting.

Going Concern The Directors believe that, having considered the Company’sinvestment objective (see page 12), risk management policies (seepages 47 to 51), capital management policies and procedures (seepage 52), the nature of the portfolio and expenditure projections,that the Company has adequate resources, an appropriate financialstructure and suitable management arrangements in place to

Compliance withSections 1158 and1159

Recognition ofinvestment income

Going Concernassessment

Valuation, existenceand ownership ofinvestments

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continue in operational existence for at least 12 months fromapproving this report. For these reasons, the Directors considerit appropriate to adopt the going concern basis of accounting inpreparing the accounts. A continuation vote was passed by theCompany’s shareholders in 2013. This will be put to shareholdersagain at the 2016 AGM.

Relations with Shareholders The Board regularly monitors the shareholder profile of theCompany. It aims to provide shareholders with a full understandingof the Company’s activities and performance and reports formally toshareholders twice a year by way of the Annual Report andAccounts and the Half Year Report. This is supplemented by dailypublication, through the London Stock Exchange, of the net assetvalue of the Company’s shares. Shareholders may also visit theCompany’s website at www.jpmbrazil.co.uk, where the share price isupdated every 15 minutes during trading hours.

All shareholders have the opportunity, and are encouraged, toattend the Company’s Annual General Meeting, at which theDirectors and representatives of the Manager are available inperson to meet shareholders and answer their questions, and apresentation is given by the investment managers, who review theCompany’s performance. During the year the Company’s brokers,the investment managers, and the Manager hold regulardiscussions with larger shareholders and make the Board fullyaware of their views. The Chairman and Directors make themselvesavailable as and when required to support these meetings and toaddress shareholder queries. The Directors may be contactedthrough the Company Secretary whose details are shown onpage 59 or via the ‘Ask a Question’ link on the Company’s website.

The Company’s Annual Report and Accounts is published in time togive shareholders at least 21 days’ notice of the Annual GeneralMeeting. Shareholders who cannot attend the meeting but wish toraise questions in advance of the meeting are encouraged to writeto the Company Secretary at the address shown on page 59 or viathe ‘Ask a Question’ link on the Company’s website.

Details of the proxy voting position on each resolution will bepublished on the Company’s website shortly after the AnnualGeneral Meeting.

Risk Management and Internal Control The UK Corporate Governance Code requires the Directors, at leastannually, to review the effectiveness of the Company’s system ofrisk management and internal control and to report to shareholdersthat they have done so. This encompasses a review of all controls,which the Board has identified as including business, financial,operational, compliance and risk management controls.

The Directors are responsible for the Company’s system of riskmanagement and internal control, which is designed to safeguard the

Company’s assets, maintain proper accounting records and ensurethat financial information used within the business, or published, isreliable. However, such a system can only be designed to managerather than eliminate the risk of failure to achieve business objectivesand therefore can only provide reasonable, but not absolute,assurance against fraud, material mis-statement or loss.

Since investment management, custody of assets and alladministrative services are provided to the Company by theManager and its associates, the Company’s system of riskmanagement and internal control mainly comprises monitoring theservices provided by the Manager and its associates, including theoperating controls established by them, to ensure they meet theCompany’s business objectives. There is an ongoing process foridentifying, evaluating and managing the significant risks faced bythe Company (see Principal Risks on pages 14 and 15). This processhas been in place for the year under review and up to the date ofthe approval of the annual report and accounts, and it accords withthe Turnbull guidance. Whilst the Company does not have aninternal audit function of its own, the Board considers that it issufficient to rely on the internal audit department of the Manager.This arrangement is kept under review.

The key elements designed to provide effective risk managementand internal control are as follows:

Financial Reporting – Regular and comprehensive review by theBoard of key investment and financial data, including managementaccounts, revenue projections, analysis of transactions andperformance comparisons.

Management and Depositary Agreements – Appointment of amanager and depositary regulated by the Financial ConductAuthority (FCA), whose responsibilities are clearly defined in awritten agreement.

Management Systems – The Manager’s system of risk managementand internal control includes organisational agreements whichclearly define the lines of responsibility, delegated authority, controlprocedures and systems. These are monitored by the Manager’sCompliance Department which regularly monitors compliance withFCA rules.

Investment Strategy – Authorisation and monitoring of theCompany’s investment strategy and exposure limits by the Board.

The Board, either directly or through the Audit Committee, keepsunder review the effectiveness of the Company’s system of riskmanagement and internal control by monitoring the operation ofthe key operating controls of the Manager and its associates asfollows:

• the Board, through the Audit Committee, reviews the terms of themanagement agreement and regular reports from the Manager’sCompliance department;

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23

• the Board reviews the report on the risk management andinternal controls and operations of its custodian, JPMorgan ChaseBank, which is itself independently reviewed; and

• the Directors review every six months an independent report onthe risk management and internal controls and the operations ofthe Manager.

By means of the procedures set out above, the Board confirms thatit has reviewed the effectiveness of the Company’s system of riskmanagement and internal control for the year ended 30th April2016, and that the systems have been in place during the yearunder review and up to the date of approval of this Annual Reportand Accounts. Moreover, the controls accord with the FinancialReporting Council, Guidance on Risk Management, internal controland related Financial and Business Reporting, September 2014.

The Board confirms that any failings or weaknesses identifiedduring the course of its review of the system of risk managementand internal control were not significant and did not impact theCompany.

Corporate Governance and Voting Policy The Company delegates responsibility for voting to the Manager.The following is a summary of the Manager’s policy statements oncorporate governance, voting policy and social and environmentalissues, which has been reviewed and noted by the Board. Details onsocial and environmental issues are included in the Strategic Reporton page 14.

Corporate Governance The Manager believes that corporate governance is integral to ourinvestment process. As part of our commitment to delivering superiorinvestment performance to our clients, we expect and encourage thecompanies in which we invest to demonstrate the highest standards ofcorporate governance and best business practice. We examine theshare structure and voting structure of the companies in which weinvest, as well as the board balance, oversight functions andremuneration policy. These analyses then form the basis of our proxyvoting and engagement activity.

Proxy Voting The Manager manages the voting rights of the shares entrusted to itas it would manage any other asset. It is the policy of the Manager tovote in a prudent and diligent manner, based exclusively on ourreasonable judgement of what will best serve the financial interests ofour clients. So far as is practicable, we will vote at all of the meetingscalled by companies in which we are invested.

Stewardship/EngagementThe Manager recognises its wider stewardship responsibilities to itsclients as a major asset owner. To this end, we support theintroduction of the FRC Stewardship Code, which sets out theresponsibilities of institutional shareholders in respect of investeecompanies. Under the Code, managers should:

– publicly disclose their policy on how they will discharge theirstewardship responsibilities to their clients;

– disclose their policy on managing conflicts of interest;

– monitor their investee companies;

– establish clear guidelines on how they escalate engagement;

– be willing to act collectively with other investors where appropriate;

– have a clear policy on proxy voting and disclose their voting record;and

– report to clients.

The Manager endorses the Stewardship Code for its UK investmentsand supports the principles as best practice elsewhere. We believethat regular contact with the companies in which we invest is centralto our investment process and we also recognise the importance ofbeing an ‘active’ owner on behalf of our clients.

Social & EnvironmentalThe Manager believes that companies should act in a sociallyresponsible manner. Although our priority at all times is the besteconomic interests of our clients, we recognise that, increasingly, non-financial issues such as social and environmental factors have thepotential to impact the share price, as well as the reputation ofcompanies. Specialists within the Manager’s environmental, socialand governance (‘ESG’) team are tasked with assessing howcompanies deal with and report on social and environmental risks andissues specific to their industry.

The Manager is also a signatory to the United Nations Principles ofResponsible Investment, which commits participants to six principles,with the aim of incorporating ESG criteria into their processes whenmaking stock selection decisions and promoting ESG disclosure. Ourdetailed approach to how we implement the principles is available onrequest. The Manager is also a signatory to Carbon Disclosure Project.JPMorgan Chase is a signatory to the Equator Principles on managingsocial and environmental risk in project finance.

The Manager’s Voting Policy and Corporate Governance Guidelinesare available on request from the Company Secretary or can bedownloaded from the Manager’s website:http://www.jpmorganinvestmenttrusts.co.uk/governance, which alsosets out its approach to the seven principles of the FRC StewardshipCode, its policy relating to conflicts of interest and its detailedvoting record.

By order of the Board Divya Amin, for and on behalf of JPMorgan Funds Limited, Secretary

19th July 2016

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DIRECTORS’ REMUNERATION REPORT

The Board presents the Directors’ Remuneration Report for the yearended 30th April 2016, which has been prepared in accordance withthe requirements of Section 421 of the Companies Act 2006.

The law requires the Company’s auditor to audit certain of thedisclosures provided in this report. Where disclosures have beenaudited they are indicated as such. The auditor’s opinion is includedin their report on page 27.

As all of the Directors are non-executive, the Board has notestablished a Remuneration Committee. Instead, the AuditCommittee reviews Directors’ fees on a regular basis and makesrecommendations to the Board as and when appropriate.

Directors’ Remuneration PolicyThe Directors’ Remuneration Policy is subject to a triennial bindingvote, however, a decision has been taken to seek approval annuallyand therefore an ordinary resolution to approve this policy will beput to shareholders at the forthcoming Annual General Meeting.The policy subject to the vote is set out in full below and is currentlyin force.

At the AGM on 11th September 2015 98.84% votes cast were infavour of (or granted discretion to the Chairman who voted infavour of) the Remuneration Policy and 1.16% voted against.Abstentions were received from less 1.17% of votes cast.

The Board’s policy for this and subsequent years is that Directors’fees should properly reflect the time spent by the Directors on theCompany’s business and should be at a level to ensure thatcandidates of a high calibre are recruited to the Board and retained.The Chairman of the Board and the Chairman of the AuditCommittee are paid higher fees than the other Director, reflectingthe greater time commitment involved in fulfilling those roles.

Reviews are based on information provided by the Manager, andindustry research carried out by third parties on the level of fees paidto the directors of the Company’s peers and within the investmenttrust industry generally. The involvement of remuneration consultantshas not been deemed necessary as part of this review. The Companyhas no Chief Executive Officer and no employees and therefore noconsultation of employees is required and there is no employeecomparative data to provide, in relation to the setting of theremuneration policy for Directors.

All of the Directors are non-executive. There are no performance-related elements to their fees and the Company does not operateany type of incentive, share scheme, award or pension scheme andtherefore no Directors receive bonus payments or pensioncontributions from the Company or hold options to acquire sharesin the Company. Directors are not granted exit payments and are

not provided with compensation for loss of office. No otherpayments are made to Directors, other than the reimbursement ofreasonable out-of-pocket expenses incurred in attending theCompany’s business.

Directors’ fees were last increased with effect from 1st May 2014.In the year under review, Directors’ fees were paid at the followingannual rates: Chairman £30,000; Chairman of the Audit Committee£27,000; and other Director £24,000.

The fees for the Chairman and all other Directors will remain thesame for the year ending 30th April 2017.

The Company’s Articles of Association provide that any increase inthe maximum aggregate annual limit on Directors’ fees, currently£175,000, requires both Board and shareholder approval.

The Company has not sought shareholder views on its remunerationpolicy. The Audit Committee in its role of considering remunerationmatters, considers any comments received from shareholders onremuneration policy on an ongoing basis and takes account of thoseviews.

The terms and conditions of Directors’ appointments are set out informal letters of appointment which are available for review at theCompany’s Annual General Meeting and the Company’s registeredoffice. Details of the Board’s policy on tenure are set out onpage 20.

Directors’ Remuneration Policy ImplementationThe Directors’ Remuneration Report, which includes details of theDirectors’ remuneration policy and its implementation, is subject toan annual advisory vote and therefore an ordinary resolution toapprove this report will be put to shareholders at the forthcomingAnnual General Meeting. There have been no changes to the policycompared with the year ended 30th April 2015 and no changes areproposed for the year ending 30th April 2017.

At the Annual General Meeting held on 11th September 2015, ofvotes cast, 99% of votes cast were in favour of (or granted discretionto the Chairman who voted in favour of) the remuneration policy andremuneration report and 1% voted against. Abstentions werereceived from less than 1.5% of the votes cast.

Details of voting on both the Remuneration Policy and the Directors’Remuneration Report from the 2016 Annual General Meeting will begiven in the annual report for the year ending 30th April 2017.

Details of the implementation of the Company’s remuneration policyare given below. No advice from remuneration consultants wasreceived during the year under review.

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Single total figure of remunerationThe single total figure of remuneration for each Director is detailedbelow together with the prior year comparative.

Single total figure table1

Total fees2016 2015

£ £

Howard Myles 30,000 30,000Mark Bridgeman 27,000 27,000Victor Bulmer-Thomas 24,000 24,000

Total 81,000 81,000

1 Audited information. Other subject headings for the single figure table as prescribedby regulation are not included because there is nothing to disclose in relationthereto.

A table showing the total remuneration for the Chairman sincelaunch to 30th April 2016 is below:

Remuneration for the Chairman over the periodfrom the date of appointment on 24th February2010 to 30th April 2016 Year ended30th April Fees

2016 £30,0002015 £30,0002014 £30,0002013 £25,0002012 £25,00020111 £29,455

1 The Company’s first remuneration reporting period was from the date ofappointment on 24th February 2010 to 30th April 2011.

Directors’ Shareholdings1

There are no requirements pursuant to the Company’s Articles ofAssociation for the Directors to own shares in the Company. TheDirectors’ shareholdings are detailed below. All shares are heldbeneficially.

30th April 30th AprilDirectors’ Name 2016 2015

Howard Myles — —Mark Bridgeman 21,007 21,007Victor Bulmer-Thomas 179,350 159,850

Total 200,357 180,857

1 Audited information.

As at the latest practicable date before the publication of thisdocument, there have been no changes to the Directors’shareholdings.

The Directors have no other share interests or share options in theCompany and no share schemes are available.

A graph showing the Company’s share price return compared withits benchmark index since the date the Company began investing isshown below.

Share price and benchmark performance for the periodfrom launch on 26th April 2010 to 30th April 2016

Source: Morningstar/MSCI.

Share price total return.

Benchmark total return.

A table showing actual expenditure by the Company on remunerationand distributions to shareholders for the year and the prior year isbelow:

Expenditure by the Company on remuneration anddistributions to shareholders

Year ended 30th April2016 2015

£ £

Remuneration paid to all Directors 81,000 81,000Distribution to shareholders– by way of dividend 229,000 191,000– by way of share repurchase 873,000 3,521,000

For and on behalf of the Board Howard MylesChairman

19th July 2016

40

60

80

100

120

2016201520142013201220112010

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STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report andAccounts in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statementsfor each financial year. Under that law the Directors have elected toprepare the financial statements in accordance with UnitedKingdom Generally Accepted Accounting Practice (United KingdomAccounting Standards) including FRS 102 ‘The Financial ReportingStandard applicable in the UK and Republic of Ireland’ andapplicable law). Under company law the Directors must not approvethe financial statements unless they are satisfied that, taken as awhole, the annual report and accounts are fair balanced andunderstandable, provide the information necessary, forshareholders to assess the Company’s performance, business modeland strategy, and that they give a true and fair view of the state ofaffairs of the Company and of the total return or loss of theCompany for that period. In preparing these financial statements,the Directors are required to:

• select suitable accounting policies and then apply themconsistently;

• make judgments and accounting estimates that are reasonableand prudent;

• state whether applicable UK Accounting Standards have beenfollowed, subject to any material departures disclosed andexplained in the financial statements; and

• prepare the financial statements on a going concern basis unlessit is inappropriate to presume that the Company will continue inbusiness.

and the Directors confirm that they have done so.

The Directors are responsible for keeping adequate accountingrecords that are sufficient to show and explain the Company’stransactions and disclose with reasonable accuracy at any time thefinancial position of the Company and enable them to ensure thatthe financial statements comply with the Companies Act 2006. Theyare also responsible for safeguarding the assets of the Company

and hence for taking reasonable steps for the prevention anddetection of fraud and other irregularities.

The accounts are published on the www.jpmbrazil.co.uk website,which is maintained by the Company’s Manager. The maintenanceand integrity of the website maintained by the Manager is, so far asit relates to the Company, the responsibility of the Manager. Thework carried out by the auditor does not involve consideration ofthe maintenance and integrity of this website and, accordingly, theauditor accepts no responsibility for any changes that haveoccurred to the accounts since they were initially presented on thewebsite. The accounts are prepared in accordance with UKlegislation, which may differ from legislation in other jurisdictions.

Under applicable law and regulations the Directors are alsoresponsible for preparing a Strategic Report, a Directors’ Reportand a Directors’ Remuneration Report that comply with that law.The Strategic Report and the Directors’ report include a fairreview of the development and performance of the business andthe position of the issuer, together with a description of theprincipal risks and uncertainties that they face.

Each of the Directors, whose names and functions are listed onpage 16 confirms that, to the best of their knowledge the financialstatements, which have been prepared in accordance with UnitedKingdom Generally Accepted Accounting Practice (United KingdomAccounting Standards and applicable law), give a true and fair viewof the assets, liabilities, financial position and return or loss of theCompany. The Board confirms that it is satisfied that the annualreport and accounts taken as a whole are fair, balanced andunderstandable and provide the information necessary forshareholders to assess the strategy and business model of theCompany.

For and on behalf of the Board Howard MylesChairman

19th July 2016


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Our opinion on the financial statementsIn our opinion:

• the financial statements give a true and fair view of the state of the Company’s affairs as at 30th April 2016 and of the Company’s net lossfor the year then ended;

• the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

What we have auditedJPMorgan Brazil Investment Trust plc’s financial statements comprise:

Statement of Comprehensive Income for the year ended 30th April 2016.

Statement of Changes in Equity for the year ended 30th April 2016.

Statement of Financial Position as at 30th April 2016.

Statement of Cash Flows for the year ended 30th April 2016.

Related notes 1 to 23 to the financial statements.

The financial reporting framework that has been applied in the preparation of the Company financial statements is applicable law andUnited Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ‘The Financial ReportingStandard applicable in the UK and Republic of Ireland’.

Overview of our audit approach

• Incomplete or inaccurate income recognition through failure to recognise proper income entitlements or applyappropriate accounting treatment.

• Going concern assessment.

• Management and performance fees are not calculated correctly.

• Incorrect valuation and existence of the investment portfolio.

Audit scope • We performed an audit of JPMorgan Brazil Investment Trust plc.

Materiality • Materiality of £238,000 which represents 1% of equity shareholder’s funds (2015: £293,000)

Our assessment of risk of material misstatement We identified the risks of material misstatement described below as those with the greatest effect on our overall audit strategy, theallocation of resources in the audit and the direction of the efforts of the audit team. In addressing these risks, we have performed theprocedures below which were designed in the context of the financial statements as a whole and, consequently, we do not express anyopinion on these individual areas.

Risk : Incomplete or inaccurate income recognition through failure to recognise proper income entitlements or applyappropriate accounting treatment (as described on page 21 in the Report of the Audit Committee).

The investment income receivable by the Company during the period directly drives the Company’s ability to make adividend payment to shareholders. The investment income receivable for the year to 30th April 2016 was £683,000(2015: £952,000) as disclosed in note 4 to the financial statements.

If the Company is not entitled to receive the dividend income recognised in the financial statements or the incomerecognised does not relate to the current financial year, this will impact the extent of the profits available to funddividend distributions to shareholders.

The accounting treatment adopted has a direct impact on the profits available for distribution to shareholders of theCompany by way of dividends.

Risks of materialmisstatement

TO THE MEMBERS OF JPMORGAN BRAZIL INVESTMENT TRUST PLC

Independent Auditor’s Report

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Independent Auditor’s Report continued

Given the judgmental aspect of allocating special dividends between revenue and capital and the risk ofmanagement override from processing of topside journals, we consider this an area warranting specific audit focus.

From our review, the Company received four special dividends during the year, amounting to £47,000, of which threewere treated as revenue (£18,000) and one as capital (£29,000).

We have performed the following procedures:

We agreed a sample of dividends to the corresponding announcement made by the investee company and agreedcash received to bank statements.

We agreed, for a sample of investee companies, the dividend declarations made by the investee company from anexternal third party source to the income entitlements recorded by the Company.

We agreed all accrued dividends to a third party source and to post year end bank statements to assess therecoverability of these amounts.

We independently reviewed the recognition criteria applied to the special dividends received during the year andassessed the appropriateness of the conclusion on the relevant treatment as documented by the administrator andapproved by the board.

The results of our procedures are:

We noted no issues in agreeing the sample of dividend receipts to and from an independent source and to the bankstatements.

We noted no issues in agreeing the sample of dividend declarations to the income entitlements recorded by theCompany.

We noted no issues in agreeing the sample of accrued dividend receipts to an independent source and to the bankstatements.

We ensured that the accounting treatment adopted for the special dividends was consistent with the evidenceprovided and our understanding of the underlying circumstances giving rise to the related dividends.

Risk: Going concern assessment

The Directors are required to include a going concern statement in their annual financial report, together with thesupporting assumptions, that have been considered in arriving at these conclusions.

As the Company is subject to a Continuation Vote every three years, this going concern assessment extends to aresponsibility for considering factors that may influence the result of the Continuation Vote. The next continuationvote is due to take place at the 2016 AGM.

Due to the Company’s low net asset value, which has been decreasing significantly over the past three years(2016: £23.8 million; 2015: £29.3 million; 2014: £38.5 million) and the expense cap of 2%, the assessment alsoextends to considering the future viability of the Company.

We performed the following procedures:

We have obtained and reviewed the revenue estimates and cash flow projections for the Company that are producedby the Manager on behalf of the Board.

We have discussed the ability of the Company to continue as a going concern with the Directors given the significantdecrease in net asset value.

We have considered the impact of any changes to the strategy of the Company on our proposed audit approach.

In respect of the Continuation vote, we have reviewed any correspondence between the Directors and keyshareholders or brokers in order to identify any matters that may influence the results of the Continuation Vote.

Our responseto the risk:

What we concluded to the AuditCommittee:


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We have made enquiries of the Directors and the Manager and reviewed relevant documentation to understand theextent to which the Company’s shareholder profile or other factors may influence the results of the Continuation Vote.

We have reviewed the financial statements to ensure that appropriate disclosures have been made.


We noted no issues from our review of the revenue estimates and cash flow projections of the Company.

We noted no issues from our discussions in the Company’s ability to continue as a going concern.

We noted no issues from our review of correspondence with key shareholders in respect of the Continuation Vote.

We noted no issues from our review of the financial statements.

Risk: The management and performance fees payable by the Company for investment management services are notcalculated in accordance with the methodology prescribed in the investment management agreement (asdescribed on page 21 in the Report in the Audit Committee).

The fees payable by the Company for investment management services are a significant component of theCompany’s cost base and, therefore, impact the Company’s total return. For the year to 30th April 2016, themanagement fee was £123,000 (2015: £350,000) and there was no performance fee (2015: £nil) as disclosed innote 5 to the financial statements.

We note that the Company applies an ongoing charges cap of 2% of the average net asset value of the Company.The cap was reached in December 2015 and therefore, management fees were not paid for the period January toApril 2016. Due to the cap being reached, a management fee debtor of £29,000 is recognised on the balance sheet.

As described on page 17 the calculation methodology for both the management and the performance fee isrelatively complex with a number of inputs required from both external sources and the Company’s own financialrecords.

If the management or performance fee is not calculated in accordance with the methodology described in theinvestment management agreement this could have a significant impact on both costs and overall performance.


We used the terms contained in the investment management agreement to perform a recalculation of themanagement and performance fee.

We agreed the inputs used in the calculation of the management and performance fee to source data.

In respect of the management fee, we agreed the monthly cash payments made to Company bank statements.

We recalculated the ongoing charges cap.


We are satisfied that the terms of the investment management agreement have been materially applied within themanagement and performance fee calculations.

For all inputs and payments, we noted no issues in agreeing the amounts to source data.

We noted no issues agreeing the management fee payments to Company bank statements.

We noted no issues in the recalculation of the ongoing charges cap.




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Risk: Incorrect valuation and existence of the investment portfolio (as described on page 21 in the Report of the AuditCommittee).

The valuation of the assets held in the investment portfolio is the key driver of the Company’s investment return. Thevalue of the Company’s investment portfolio at 30th April 2016 was £23.0 million (£28.6 million) and consists entirelyof listed equities (movements in the investment portfolio are shown in note 11 to the financial statements).

Incorrect asset pricing or a failure to maintain proper legal title of the assets held by the Company could have asignificant impact on portfolio valuation and, therefore, the return generated for shareholders.


We have used our bespoke asset pricing tool to value 100% of the investment portfolio.

We agreed the number of shares held in each security to a confirmation of legal title received from both theCompany’s custodian and depositary as at 30th April 2016.


For all investments, we noted no material differences in market value between the prices used by management andthe prices independently obtained by our asset pricing tool.

We have not identified any differences between the custodian and depositary confirmations and the Company’sunderlying financial records.

The scope of our audit Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for theCompany. This enables us to form an opinion on the financial statements. We take into account size, risk profile, the organisation of theCompany and effectiveness of controls and changes in the business environment when assessing the level of work to be performed. TheCompany is a single component and we perform a full audit on this Company.

Our application of materiality We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the auditand in forming our audit opinion.

MaterialityThe magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economicdecisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures.

We determined planning materiality for the Company to be £238,000 (2015: £293,000), which is 1% of equity shareholders’ funds. Wederived our materiality calculation from a proportion of total equity as we consider that to be the most important financial metric on whichshareholders judge the performance of the Company.

Performance materialityThe application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level theprobability that the aggregate of uncorrected and undetected misstatements exceeds materiality.

On the basis of our risk assessments, together with our assessment of the Company’s overall control environment, our judgment was thatoverall performance materiality (i.e. our tolerance for misstatement in an individual account or balance) for the Company should be 75% ofplanning materiality, being £178,000 (2015: £220,000). We have set performance materiality at this percentage due to our past experienceof the audit that indicates a lower risk of misstatements, both corrected and uncorrected.

Given the importance of the distinction between revenue and capital for the Company we also applied a separate testing threshold of£13,000 (2015: £15,000) for the revenue column of the Income Statement, being 5% of the revenue return on ordinary activities beforetaxation.



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Reporting thresholdAn amount below which identified misstatements are considered to be clearly trivial.

We agreed with the audit committee that we would report all audit differences in excess of £12,000 (2015: £15,000) as well as differencesbelow that threshold that, in our view, warranted reporting on qualitative grounds.

We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in the light of otherrelevant qualitative considerations.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurancethat the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:whether the accounting policies are appropriate to the Company’s circumstances and have been consistently applied and adequatelydisclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financialstatements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies withthe audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistentwith, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements orinconsistencies we consider the implications for our report.

Respective responsibilities of Directors and auditorAs explained more fully in the Statement of Directors’ Responsibilities set out on page 26 the Directors are responsible for the preparationof the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinionon the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standardsrequire us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Ouraudit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in anauditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone otherthan the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Opinion on other matters prescribed by the Companies Act 2006In our opinion:

• the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006; and

• the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements areprepared is consistent with the financial statements.

Matters on which we are required to report by exception ISAs (UK and Ireland) reportingWe are required to report to you if, in our opinion, financial and non-financial information in the annual report is:

• materially inconsistent with the information in the audited financial statements; or

• apparently materially incorrect based on, or materially inconsistent with, our knowledge of the Company acquired in the course ofperforming our audit; or

• otherwise misleading.

In particular, we are required to report whether we have identified any inconsistencies between our knowledge acquired in the course ofperforming the audit and the Directors’ statement that they consider the annual report and accounts taken as a whole is fair, balanced andunderstandable and provides the information necessary for shareholders to assess the entity’s performance, business model and strategy;and whether the annual report appropriately addresses those matters that we communicated to the audit committee that we considershould have been disclosed.

We have no exceptions to report.

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Companies Act 2006 reportingWe are required to report to you if, in our opinion:

• adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received frombranches not visited by us; or

• the Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with theaccounting records and returns; or

• certain disclosures of Directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.


Listing Rules review requirementsWe are required to review:

• the Directors’ statement in relation to going concern set out on pages 21 and 22, and longer-term viability, set out on page 15; and

• the part of the Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK CorporateGovernance Code specified for our review.


Statement on the Directors’ Assessment of the Principal Risks that Would Threaten the Solvency or Liquidityof the Entity

ISAs (UK and Ireland) reporting

We are required to give a statement as to whether we have anything material to add or to draw attention to in relation to:

• the Directors’ confirmation in the annual report that they have carried out a robust assessment of the principal risks facing the entity,including those that would threaten its business model, future performance, solvency or liquidity;

• the disclosures in the annual report that describe those risks and explain how they are being managed or mitigated;

• the Directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis ofaccounting in preparing them, and their identification of any material uncertainties to the entity’s ability to continue to do so over aperiod of at least twelve months from the date of approval of the financial statements; and

• the Directors’ explanation in the annual report as to how they have assessed the prospects of the entity, over what period they have doneso and why they consider that period to be appropriate, and their statement as to whether they have a reasonable expectation that theentity will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment, including anyrelated disclosures drawing attention to any necessary qualifications or assumptions.

We have nothing material to add or to draw attention to.

Michael-John Albert (Senior Statutory Auditor)for and on behalf of Ernst & Young LLPStatutory Auditor London

19th July 2016


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33

Financial Statements

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30TH APRIL 2016

2016 2015Revenue Capital Total Revenue Capital Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Losses on investments held at fair value through profit or loss 3 — (4,628) (4,628) — (5,437) (5,437)

Net foreign currency losses — (11) (11) — (26) (26)Income from investments 4 683 — 683 952 — 952

Gross return/(loss) 683 (4,639) (3,956) 952 (5,463) (4,511)Management fee 5 (123) — (123) (350) — (350)Other administrative expenses 6 (300) — (300) (310) — (310)

Net return/(loss) on ordinary activities before finance costs and taxation 260 (4,639) (4,379) 292 (5,463) (5,171)

Finance costs 7 (1) — (1) — — —

Net return/(loss) on ordinary activities before taxation 259 (4,639) (4,380) 292 (5,463) (5,171)

Taxation 8 (47) — (47) (89) — (89)

Net return/(loss) on ordinary activities after taxation 212 (4,639) (4,427) 203 (5,463) (5,260)

Return/(loss) per share 10 0.46p (9.94)p (9.48)p 0.40p (10.86)p (10.46)p

All revenue and capital items in the above statement derive from continuing operations.

The ‘Total’ column of this statement is the profit and loss account of the Company and the ‘Revenue’ and ‘Capital’ columns representsupplementary information prepared under guidance issued by the Association of Investment Companies. Net return/(loss) on ordinaryactivities after taxation represents the profit/(loss) for the year and also Total Comprehensive Income.

The notes on pages 37 to 52 form an integral part of these financial statements.

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Financial Statements continued

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH APRIL 2016

Called up Capital share redemption Share Other Capital Revenue capital reserve premium reserve reserves reserve1 Total £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 30th April 2014 617 13 16,149 38,491 (17,740) 948 38,478 Repurchase of shares into Treasury — — — (3,521) — — (3,521)Net (loss)/return from ordinary activities — — — — (5,463) 203 (5,260)Dividend paid in the year — — — — — (430) (430)

At 30th April 2015 617 13 16,149 34,970 (23,203) 721 29,267Repurchase of shares into Treasury — — — (873) — — (873)Net (loss)/return from ordinary activities — — — — (4,639) 212 (4,427)Dividend paid in the year — — — — — (187) (187)

At 30th April 2016 617 13 16,149 34,097 (27,842) 746 23,780

1 This reserve forms the distributable reserve of the Company and may be used to fund distributions of profits to investors via dividend payments.


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35

STATEMENT OF FINANCIAL POSITION AT 30TH APRIL 2016

2016 2015 Notes £’000 £’000

Fixed assets Investments held at fair value through profit or loss 11 23,004 28,592

Current assets 12Debtors 169 124Cash and cash equivalents 697 652

866 776

Creditors: amounts falling due within one yearCreditors 13 (90) (101)

Net current assets 776 675

Total assets less current liabilities 23,780 29,267

Net assets 23,780 29,267

Capital and reserves Called up share capital 14 617 617Capital redemption reserve 15 13 13Share premium 15 16,149 16,149Other reserve 15 34,097 34,970Capital reserves 15 (27,842) (23,203)Revenue reserve 15 746 721

Shareholders’ funds 23,780 29,267

Net asset value per share 16 51.9p 61.2p

The financial statements on pages 33 to 52 were approved by the Directors and authorised for issue on 19th July 2016 and are signed ontheir behalf by:

Victor Bulmer-ThomasDirector


Company registration number: 7141630.

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH APRIL 2016

2016 2015 Notes £’000 £’000

Net cash outflow from operations before dividends and interest 17 (471) (686)

Dividends received 662 937Interest paid (1) —

Net cash inflow from operating activities 190 251

Purchases of investments (6,269) (17,190)Sales of investments 7,195 21,329Settlement of foreign currency contracts (2) 31

Net cash inflow from investing activities 924 4,170

Dividend paid (187) (430)Repurchase of shares into Treasury (873) (3,521)

Net cash outflow from financing activities (1,060) (3,951)

Increase in cash and cash equivalents 54 470

Cash and cash equivalents at start of year 652 194Exchange movements (9) (12)Cash and cash equivalents at end of year 697 652

Increase in cash and cash equivalents 54 470

Cash and cash equivalents consist of:Cash and short term deposits 697 652

Total 697 652


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37

1. Accounting policies(a) Basis of accounting

The financial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted AccountingPractice (‘UK GAAP’), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and with theStatement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ (the ‘SORP’)issued by the Association of Investment Companies in November 2014.

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

The financial statements have been prepared on a going concern basis. The disclosures on going concern on pages 21 and 22 of theDirectors’ Report form part of these financial statements.

(b) Transition to FRS 102

This set of financial statements, in accordance with the SORP includes changes arising from the adoption of FRS 102 which theCompany is required to comply with for the first time for the year ended 30th April 2016.

Aside from presentational aspects relating to the Statement of Cash Flows, no significant changes have arisen from the adoption ofthe new standards. Where changes have arisen, they are substantially in relation to presentation and disclosure – there has been noimpact to financial position or financial performance and no comparative figures require restating.

Early adoption

In March 2016, the FRC published amendments to FRS 102 concerning the fair value hierarchy disclosures. These amendments areeffective for accounting periods beginning on or after 1st January 2017. The Company has elected to early adopt these amendments inthis set of financial statements. Full disclosure is given in note 20 on page 46.

(c) Valuation of investments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

The Company’s business is investing in financial assets with a view to profiting from their total return in the form of income andcapital growth. The portfolio of financial assets is managed and its performance evaluated on a fair value basis, in accordance witha documented investment strategy and information is provided internally on that basis to the Company’s Board of Directors.Accordingly, upon initial recognition the investments are designated by the Company as ‘held at fair value through profit or loss’.They are included initially at fair value which is taken to be their cost, excluding expenses incidental to purchase which are writtenoff to capital at the time of acquisition. Subsequently the investments are valued at fair value, which are quoted bid prices forinvestments traded in active markets. For investments which are not traded in active markets, unlisted and restricted investments,the Board takes into account the latest traded prices, other observable market data and asset values based on the latest managementaccounts.

All purchases and sales are accounted for on a trade date basis.

(d) Accounting for reserves

Gains and losses on sales of investments including the related foreign exchange gains and losses, realised gains and losses on foreigncurrency cash balances and loans, realised gains and losses on foreign currency contracts, and any other capital charges, are includedin the Statement of Comprehensive Income and dealt with in capital reserves within ‘Gains and losses on sales of investments’.

Increases and decreases in the valuation of investments held at the year end including the related foreign exchange gains and losses,plus unrealised gains and losses on foreign currency contracts or foreign currency loans are included in the Statement ofComprehensive Income and dealt with in capital reserves within ‘Investment holding gains and losses’.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH APRIL 2016

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NOTES TO THE FINANCIAL STATEMENTS CONTINUED


1. Accounting policies continued

(e) Income

Dividends receivable are included in revenue on an ex-dividend basis except where, in the opinion of the Board, the dividend is capitalin nature, in which case it is included in capital.

Overseas dividends are included gross of any withholding tax.

Special dividends are looked at individually to ascertain the reason behind the payment. This will determine whether they are treatedas income or capital.

Where the Company has elected to receive scrip dividends in the form of additional shares rather than in cash, the amount of the cashdividend foregone is recognised in revenue. Any excess in the value of the shares received over the amount of the cash dividend isrecognised in capital.

Deposit interest receivable is taken to revenue on an accruals basis.

(f) Expenses

All expenses are accounted for on an accruals basis. Expenses are allocated wholly to the revenue with the following exceptions:

– Performance fees are allocated 100% to capital. The maximum performance fee that can be paid to the Manager in any one yearis capped at 1.0% of the Company’s average monthly total assets less current liabilities, and in a year when the Company producesa negative net asset value total return per share, the performance fee will be accrued but not paid. Any amount earned in excessof this cap will be carried forward and will be offset against any underperformance in future years.

– Expenses incidental to the purchase of an investment are charged to capital and those incidental to the sale are deducted from thesale proceeds and then recognised in capital alongside the realised gain or loss on the investment. These expenses are commonlyreferred to as transaction costs and comprise brokerage commission and stamp duty. Details of transaction costs are given innote 11 on page 43.

Finance costs are accounted for on an accruals basis using the effective interest rate method.

(g) Financial instruments

Cash and cash equivalents may comprise cash including demand deposits which are readily convertible to a known amount of cashand are subject to an insignificant risk of change in value.

Other debtors and creditors do not carry any interest, are short term in nature and are accordingly stated at nominal value, withdebtors reduced by appropriate allowances for estimated irrecoverable amounts.

(h) Taxation

Current tax is provided at the amounts expected to be paid or received.

Deferred tax is provided on all timing differences that have originated but not reversed by the balance sheet date. Deferred taxliabilities are recognised for all taxable timing differences but deferred tax assets are only recognised to the extent that it is morelikely than not that taxable profits will be available against which those timing differences can be utilised.

Tax relief is allocated to expenses charged to capital on the ‘marginal basis’. On this basis, if taxable income is capable of beingentirely offset by revenue expenses, then no tax relief is transferred to the capital column.

Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing differences are expected toreverse, based on tax rates that have been enacted or substantively enacted at the balance sheet date and is measured on anundiscounted basis.

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39

(i) Value Added Tax (‘VAT’)

Irrecoverable VAT is included in the expense on which it has been suffered. Recoverable VAT is calculated using the partial exemptionmethod based on the proportion of zero rated supplies to total supplies.

(j) Foreign currency

The Company is required to identify its functional currency, being the currency of the primary economic environment in which theCompany operates.

The Board, having regard to the currency of the Company’s share capital and the predominant currency in which its shareholdersoperate, has determined that sterling is the functional currency. Sterling is also the currency in which the financial statements arepresented.

Transactions denominated in foreign currencies are converted at actual exchange rates at the date of the transaction. Monetaryassets, liabilities and equity investments held at fair value, denominated in foreign currencies at the year end are translated at therates of exchange prevailing at the year end.

Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included in the Statement ofComprehensive Income as an exchange gain or loss in revenue or capital, depending on whether the gain or loss is of a revenue orcapital nature.

(k) Dividends payable

Dividends are included in the financial statements in the year in which they are approved by shareholders.

(l) Share issue costs

The costs of issuing shares are charged against any premium received on those shares.

(m) Repurchase of shares to hold in Treasury

The cost of repurchasing shares into Treasury, including the related stamp duty and transaction costs, is charged to the ‘Otherreserve’ and dealt with in the Statement of Changes in Equity. Share repurchase transactions are accounted for on a trade date basis.Where shares held in Treasury are subsequently cancelled, the nominal value of those shares is transferred out of called up sharecapital and into the capital redemption reserve.

Should shares held in Treasury be reissued, the sales proceeds will be recognised in capital reserves up to the amount of thepurchase price of those shares and will be transferred to capital reserves. The excess of the sales proceeds over the purchase pricewill be transferred to share premium.

2. Significant accounting judgements, estimates and assumptionsThe preparation of the Company’s financial statements on occasion requires management to make judgements, estimates andassumptions that affect the reported amounts in the primary financial statements and the accompanying disclosures. Theseassumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilitiesaffected in the current and future periods, depending on circumstance.

Management do not believe that any significant accounting judgements or estimates have been applied to this set of financialstatements, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within thenext financial year.

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3. Losses on investments held at fair value through profit or loss 2016 2015£’000 £’000

Losses on sales of investments held at fair value through profit or loss based on historical cost (4,819) (5,047)Amounts recognised in investment holding gains and losses in the previous year in respect of

investments sold during the year 1,742 2,413

Realised losses on sales of investment based on carrying value at the previous balance sheet date (3,077) (2,634)Net movement in investment holding losses (1,539) (2,786)Other capital charges (12) (17)

Total capital losses on investments held at fair value through profit or loss (4,628) (5,437)

4. Income 2016 2015£’000 £’000

Income from investmentsOverseas dividends 683 952

Total income 683 952

5. Management fee2016 2015

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

Management fee 123 — 123 350 — 350

Details of the management fee are given in the Directors’ Report on page 17. There were no performance fees paid during the year(2015: nil).

As discussed in the Business review on page 14, the management fee charged has been reduced to the extent necessary to ensure theCompany’s Ongoing Charges ratio does not exceed 2% with effect from 1st May 2015. The management fee was reduced by £94,000for the year ended 30th April 2016.

6. Other administrative expenses2016 2015£’000 £’000

Administration expenses 147 149Directors’ fees1 81 81Depositary fees 10 8Savings scheme costs2 31 42Auditors’ remuneration for audit services3 31 30

300 310

1 Full disclosure is given in the Directors’ Remuneration Report on pages 24 and 25.2 These amounts were payable to the Manager for the marketing of savings scheme products, includes £5,000 (2015: £7,000) irrecoverable VAT. 3 Fees payable to the Company’s auditor for the audit of the Company’s annual accounts. Includes £5,000 (2015: £5,000) irrecoverable VAT. No non-audit services were provided during

the year (2015: nil).

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41

7. Finance Costs2016 2015

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

Interest payable on overdrafts 1 — 1 — — —

8. Taxation (a) Analysis of tax charge in the year

2016 2015Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000

Overseas withholding tax 47 — 47 89 — 89

Current tax charge for the year 47 — 47 89 — 89

Certain components of dividend distributions paid by Brazilian companies are subject to withholding tax.

(b) Factors affecting total tax charge for the year

The tax charge for the year is higher (2015: higher) than the Company’s applicable rate of corporation tax of 20.00% (2015: 20.92%).The factors affecting the total tax charge for the year are as follows:

2016 2015Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000

Net return/(loss) on ordinary activities before taxation 259 (4,639) (4,380) 292 (5,463) (5,171)

Net return/(loss) on ordinary activities before taxation multiplied by the applicable rate of corporation tax of 20.00% (2015: 20.92%) 52 (928) (876) 61 (1,143) (1,082)

Effects of:Non taxable capital gains — 928 928 — 1,143 1,143 Non taxable overseas dividends (53) — (53) (134) — (134)Unutilised expenses carried forward to future

periods 1 — 1 73 — 73 Overseas withholding tax 47 — 47 89 — 89

Total tax charge for the year 47 — 47 89 — 89

(c) Deferred taxation

The Company has an unrecognised deferred tax asset of £441,000 (2015: £466,000) which comprises unutilised expenses of£2,451,000 (2015: £2,329,000) based on a prospective corporation tax rate of 18% (2015: 20%). The UK Government announced inJuly 2015 that the corporation tax rate is set to be cut to 19% in 2017 and 18% in 2020. These reductions in the standard rate ofcorporation tax were substantively enacted on 26th October 2015 and became effective from 18th November 2015. The deferred taxasset has arisen due to the cumulative excess of deductible expenses over taxable income. Given the composition of the Company’sportfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been recognised in thefinancial statements.

Given the Company’s status as an investment trust company and the intention to continue meeting the conditions required to obtainapproval, the Company has not provided for deferred tax on any capital gains or losses arising on the revaluation or disposal ofinvestments.

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9. Dividends1

(a) Dividends paid and proposed

2016 2015£’000 £’000

2015 Final dividend of 0.40p (2014: 0.85p) 187 430

Total dividend paid in the year 187 430

Final dividend proposed of 0.50p (2015: 0.40p) 229 191

1 All dividends paid and proposed in the period have been funded from the Revenue Reserve.

The final dividend proposed in respect of the year ended 30th April 2015 amounted to £191,000. However, the actual paymentamounted to £187,000 due to shares repurchased and held in Treasury between the date at which financial statements were issuedand the date on which the dividend was paid.

The final dividend proposed in respect of the year ended 30th April 2016 is subject to shareholder approval at the forthcoming AnnualGeneral Meeting. This dividend will be reflected in the financial statements for the year ending 30th April 2017.

(b) Dividend for the purposes of Section 1158 of the Income and Corporation Tax Act 2010 (‘Section 1158’)

The requirement of Section 1158 of the Income and Corporation Tax Act 2010 are considered on the basis of dividends proposed inrespect of the financial year, as follows:

2016 2015£’000 £’000

Final dividend of 0.50p (2015: 0.40p) 229 191

Total dividend for s1158 purposes 229 191

The revenue available for distribution by way of dividend for the year is £212,000 (2015: £203,000).

10. Return/(loss) per share2016 2015£’000 £’000

Revenue return 212 203Capital loss (4,639) (5,463)

Total loss (4,427) (5,260)

Weighted average number of shares in issue during the period 46,660,058 50,296,818

Revenue return per share 0.46p 0.40pCapital loss per share (9.94)p (10.86)p

Total loss per share (9.48)p (10.46)p

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43

11. Investments held at fair value through profit or loss2016 2015£’000 £’000

Investments held at fair value through profit or lossInvestments listed on a recognised stock exchange 23,004 28,592

Opening book cost 32,020 41,206Opening investment holding losses (3,428) (3,055)

Opening valuation 28,592 38,151

Movements in the year:Purchases at cost 6,269 17,190Sales – proceeds (7,241) (21,320)Realised losses on sales of investments based on the carrying value at the previous balance

sheet date (3,077) (2,643)Net movement in investment holding losses (1,539) (2,786)

Closing valuation 23,004 28,592

Closing book cost 26,229 32,020Closing investment holding losses (3,225) (3,428)

Total investments held at fair value 23,004 28,592

During the year, prior year investment holding losses amounting to £1,742,000 have been transferred to gains/(losses) on sales ofinvestments as disclosed in notes 3 and 15.

Transaction costs on purchases during the year amounted to £24,000 (2015: £49,000) and on sales during the year amounted to£14,000 (2015: £37,000). These costs comprise mainly brokerage commission.

12. Current assets2016 2015£’000 £’000

DebtorsSecurities sold awaiting settlement 33 —Dividends and interest receivable 72 98Taxation recoverable 18 —Other debtors 46 26

169 124

The Directors consider that the carrying amount of debtors approximates to their fair value. No balances are considered to be pastdue or impaired as at 30th April 2016 (2015: none).

Cash and cash equivalents

Cash and cash equivalents comprise bank balances and short term deposits.

The carrying amount of these represents their fair value. Cash balances in excess of a predetermined amount are placed on shortterm deposit at market rates of interest.

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13. Creditors: amounts falling due within one year2016 2015£’000 £’000

Other creditors 90 101

The Directors consider that the carrying amount of creditors falling due within one year approximates to their fair value.

14. Called up share capital 2016 2015£’000 £’000

Ordinary shares – allotted and fully paidOpening balance of 47,792,362 (2015: 53,121,319) shares excluding shares held in Treasury 478 531Repurchase of 2,017,508 (2015: 5,328,957) shares into Treasury (20) (53)

Subtotal of 45,774,854 (2015: 47,792,362) shares of 1p each excluding shares held in Treasury 458 478

15,954,044 (2015: 13,936,536) shares held in Treasury 159 139

Closing balance of 61,728,898 (2015: 61,728,898) shares of 1p each including shares held in Treasury 617 617

Further details of transactions in the Company’s shares are given in the Business Review on page 14.

Share capital transactions

During the year, the Company repurchased 2,017,508 (2015: 5,328,957) shares into Treasury for a total consideration of £873,000(2015: £3,521,000). The reason for the purchases was to seek to manage the volatility and absolute level of the share price discountto net asset value per share.

15. Capital and reserves Capital reserves

Capital Gains/(losses) InvestmentCalled up redemption Share Other on sales of holding Revenue

share capital reserve premium reserve1 investments gains/(losses) reserve2 Total£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Opening balance 617 13 16,149 34,970 (19,775) (3,428) 721 29,267Net foreign currency losses — — — — (11) — — (11)Realised losses on sales of investments

based on the carrying value at the previous balance sheet date — — — — (3,077) — — (3,077)

Net movement in investment holding losses — — — — — (1,539) — (1,539)

Transfer on disposal of investments — — — — (1,742) 1,742 — —Repurchase of shares into Treasury — — — (873) — — — (873)Other capital charges — — — — (12) — — (12)Revenue return for the year — — — — — — 212 212Dividend paid in the year — — — — — — (187) (187)

Closing balance 617 13 16,149 34,097 (24,617) (3,225) 746 23,780

1 The share premium account was cancelled in July 2010 and the ‘Other reserve’ created for the purposes of financing share buybacks.2 This reserve forms the distributable reserve of the Company and may be used to fund distribution of profits to investors via dividend payments.

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16. Net asset value per share 2016 2015

Shareholders funds (£’000) 23,780 29,267Number of shares in issue 45,774,854 47,792,362Net asset value per share 51.9p 61.2p

17. Reconciliation of total return on ordinary activities before finance costs and taxation to net cashoutflow from operations before dividends and interest

2016 2015£’000 £’000

Net loss on ordinary activities before taxation (4,379) (5,171)Add: capital loss on ordinary activities before taxation 4,639 5,463(Increase)/decrease in accrued income and other debtors (11) 67(Decrease)/increase in accrued expenses (11) 18Overseas withholding tax (47) (89)Dividends received (662) (937)Realised loss on foreign currency transactions — (46)Realised gains on time deposits — 9

Net cash outflow from operations before dividends and interest (471) (686)

18. Contingent liabilities and capital commitmentsAt the balance sheet date there were no contingent liabilities or capital commitments (2015: nil).

19. Related party transactionsDetails of the management contract are set out in the Directors’ Report on page 17. The management fee payable to the Manager forthe year was £123,000 (2015: £350,000) of which £nil (2015: £nil) was outstanding at the year end.

Based on the negative performance of the Company over the year and termination of performance fees with effect from 1st May 2016,no performance fee will be carried forward to future years.

During the year £31,000 (2015: £42,000) was payable to the Manager for the marketing and administration of savings schemeproducts, of which £nil (2015: £nil) was outstanding at the year end.

Included in administration expenses in note 6 on page 40 are safe custody fees amounting to £12,000 (2015: £21,000) payable toJPMorgan Chase of which £2,000 (2015: £5,000) was outstanding at the year end.

Handling charges on dealing transactions amounting to £12,000 (2015: £17,000) were payable to JPMorgan Chase during the year ofwhich £4,000 (2015: £5,000) was outstanding at the year end.

At the year end, total bank balance of £697,000 (2015: £652,000) was held with JPMorgan Chase. A net amount of interest of £nil (2015:£nil) was receivable by the Company during the year from JPMorgan Chase of which £nil (2015: £nil) was outstanding at the year end.

Full details of Directors’ remuneration and shareholdings can be found on pages 24 and 25 and in note 6 on page 40.

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20. Disclosures regarding financial instruments measured at fair valueThe fair value hierarchy disclosures required by FRS 102 are given below.

The Company’s financial instruments within the scope of FRS 102 that are held at fair value comprise its investment portfolio andderivative financial instruments.

The investments are categorised into a hierarchy consisting of the following three levels:

(1) The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at themeasurement date

The best evidence of fair value is a quoted price for an identical asset in an active market. Quoted in an active market in thiscontext means quoted prices are readily and regularly available and those prices represent actual and regularly occurringmarket transactions on an arm’s length basis. The quoted price is usually the current bid price.

(2) Inputs other than quoted prices included within Level 1 that are observable (ie: developed using market data) for theasset or liability, either directly or indirectly

When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value aslong as there has not been a significant change in economic circumstances or a significant lapse of time since the transactiontook place. If the entity can demonstrate that the last transaction price is not a good estimate of fair value (e.g. because itreflects the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distress sale), thatprice is adjusted.

(3) Inputs are unobservable (ie: for which market data is unavailable) for the asset or liability

If the market for the asset is not active and recent transactions of an identical asset on their own are not a good estimate offair value, an entity estimates the fair value by using a valuation technique. The objective of using a valuation technique is toestimate what the transaction price would have been on the measurement date in an arm’s length exchange motivated bynormal business considerations.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fairvalue measurement of the relevant asset.

Details of the valuation techniques used by the Company are given in note 1(c) on page 37.

The following table sets out the fair value measurements using the FRS 102 hierarchy at 30th April.

2016 2015Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000

Level 1 23,004 — 28,592 —

Total 23,004 — 28,592 —

There were no transfers between Levels 1, 2 or 3 during the year (2015: nil).

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21. Financial instruments’ exposure to risk and risk management policiesAs an investment trust, the Company invests in equities for the long term so as to secure its investment objective stated on the‘Features’ page. In pursuing this objective, the Company is exposed to a variety of financial risks that could result in a reduction in theCompany’s net assets or a reduction in the profits available for dividends.

These financial risks include market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk.The Directors’ policy for managing these risks is set out below. The Company Secretary, in close cooperation with the Board and theManager, coordinates the Company’s risk management policy.

The objectives, policies and processes for managing the risks and the methods used to measure the risks that are set out below, havenot changed from those applying in the comparative year.

The Company’s classes of financial instruments are as follows:

– investments in equity shares and ADRs or AD's of Brazilian focused companies which are held in accordance with the Company’sinvestment objective; and

– short term debtors, creditors and cash arising directly from its operations;

(a) Market risk

The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices.This market risk comprises three elements – currency risk, interest rate risk and other price risk. Information to enable an evaluationof the nature and extent of these three elements of market risk is given in parts (i) to (iii) of this note, together with sensitivityanalyses where appropriate. The Board reviews and agrees policies for managing these risks and these policies have remainedunchanged from those applying in the comparative year. The Manager assesses the exposure to market risk when making eachinvestment decision and monitors the overall level of market risk on the whole of the investment portfolio on an ongoing basis.

(i) Currency risk

Most of the Company’s assets, liabilities and income are denominated in currencies other than sterling which is the Company’sfunctional currency and the currency in which it reports. As a result, movements in exchange rates may affect the sterling valueof those items.

Management of Currency risk

The Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board, which meets onat least four occasions each year. The Manager measures the risk to the Company of the foreign currency exposure byconsidering the effect on the Company’s net asset value and income of a movement in the rates of exchange to which theCompany’s assets, liabilities, income and expenses are exposed. Foreign currency borrowing may be used to limit theCompany’s exposure to anticipated changes in exchange rates which might otherwise adversely affect the sterling value of theportfolio of investments. This borrowing is limited to currencies and amounts commensurate with the asset exposure to thosecurrencies. Income denominated in foreign currencies is converted to sterling on receipt. The Company may use short termforward currency contracts to manage working capital requirements. It is currently not the Company's policy to hedge againstforeign currency risk.

Foreign currency exposure

The fair value of the Company’s monetary items that have foreign currency exposure at 30th April 2016 are shown below.Where the Company’s equity investments (which are not monetary items) are priced in a foreign currency, they have beenincluded separately in the analysis so as to show the overall level of exposure.

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21. Financial instruments’ exposure to risk and risk management policies continued(a) Market risk continued

(i) Currency risk continued

Foreign currency exposure continued

2016US Brazilian Mexican Chilean

Dollar Real Peso Peso Total £’000 £’000 £’000 £’000 £’000

Current assets 617 45 — — 662

Foreign currency exposure on net monetary items 617 45 — — 662Investments held at fair value through profit or loss 7,439 14,844 337 384 23,004

Total net foreign currency exposure 8,056 14,889 337 384 23,666

2015US Brazilian Mexican Chilean

Dollar Real Peso Peso Total £’000 £’000 £’000 £’000 £’000

Current assets 575 94 6 — 675

Foreign currency exposure on net monetary items 575 94 6 — 675Investments held at fair value through profit or loss 9,195 18,325 698 374 28,592

Total net foreign currency exposure 9,770 18,419 704 374 29,267

In the opinion of the Directors, the above year end amounts are broadly representative of the exposure to foreign currency riskduring the current and prior year.

Foreign currency sensitivity

The following table illustrates the sensitivity of return after taxation for the year and net assets with regard to the Company’smonetary financial assets and financial liabilities and exchange rates. The sensitivity analysis is based on the Company’smonetary currency financial instruments held at each balance sheet date and the income receivable in foreign currency andassumes a 10% (2015: 10%) appreciation or depreciation in sterling against the US dollar, Brazilian Real, Mexican Peso andChilean Peso to which the Company is exposed, which is considered to be a reasonable illustration based on the volatility ofexchange rates during the year.

2016 2015If sterling If sterling If sterling If sterling

strengthens weakens strengthens weakensby 10% by 10% by 10% by 10%£’000 £’000 £’000 £’000

Statement of Comprehensive Income – return after taxationRevenue return (68) 68 (95) 95Capital return (66) 66 (68) 68

Total return after taxation for the year (134) 134 (163) 163

Net assets (134) 134 (163) 163

In the opinion of the Directors, the above sensitivity analysis is broadly representative of the whole year.

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(ii) Interest rate risk

Interest rate movements may affect the level of income receivable on cash deposits, the interest payable on variable rate cashborrowings and the fair value of fixed interest rate financial instruments during the year and at year end.

Management of interest rate risk

The Company aims to be fully invested in normal market conditions, so exposure to interest rate risk will be limited. Short termborrowings may be used if required.

Interest rate exposure

The Company had no exposure to fixed interest rate financial instruments at the year end (2015: none).

The exposure of financial assets and liabilities to floating interest rates using the year end figures, giving cash flow interest raterisk when rates are reset, is shown below.

2016 2015£’000 £’000

Exposed to floating interest rates:Cash and short term deposits 697 652

Total exposure 697 652

Interest receivable on cash balances is at a margin below LIBOR respectively (2015: same).

Interest rate sensitivity

The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 1% (2015: 1%) increase ordecrease in interest rates with regard to the Company’s monetary financial assets and financial liabilities. This level of change isconsidered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based onthe Company’s monetary financial instruments held at the balance sheet date, with all other variables held constant.

2016 20151% increase 1% decrease 1% increase 1% decrease

in rate in rate in rate in rate £’000 £’000 £’000 £’000

Statement of Comprehensive Income – return after taxationRevenue return 7 (7) 7 (7)

Total return after taxation for the year 7 (7) 7 (7)

Net assets 7 (7) 7 (7)

In the opinion of the Directors, this sensitivity analysis may not be representative of the Company’s future exposure to interestrate changes due to fluctuations in the level of cash balances.

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21. Financial instruments’ exposure to risk and risk management policies continued(a) Market risk continued

(iii) Other price risk

Other price risk includes changes in market prices, other than those arising from interest rate risk or currency risk, which mayaffect the value of equity investments or related securities.

Management of other price risk

The Board meets on at least four occasions each year to consider the asset allocation of the portfolio and the risk associatedwith particular industry sectors. The investment management team has responsibility for monitoring the portfolio, which isselected in accordance with the Company’s investment objectives and seeks to ensure that individual stocks meet an acceptablerisk/reward profile.

Other price risk exposure

The Company’s total exposure to changes in market prices at 30th April comprises its holdings in equity investments as follows:

2016 2015£’000 £’000

Equity investments held at fair value through profit or loss 23,004 28,592

In the opinion of the Directors, the above data is broadly representative of the exposure to other price risk during the currentand comparative year.

Concentration of exposure to other price risk

An analysis of the Company’s investments is given on page 11. This shows that substantially all of the investments’ value is inBrazil. Accordingly there is a concentration of exposure to that country. However, it should be noted that an investment maynot be entirely exposed to the economic conditions in its country of domicile or of listing.

Other price risk sensitivity

The following table illustrates the sensitivity of the return after taxation for the year and net assets to an increase or decreaseof 10% (2015: 10%) in the market value of equity investments. This level of change is considered to be a reasonable illustrationbased on observation of current market conditions. The sensitivity analysis is based on the Company’s equities, adjusting forchanges in the management fee but with all other variables held constant.

2016 201510% increase 10% decrease 10% increase 10% decreasein fair value in fair value in fair value in fair value

£’000 £’000 £’000 £’000

Statement of Comprehensive Income – return after taxationRevenue return (23) 23 (29) 29Capital return 2,300 (2,300) 2,859 (2,859)

Total return after taxation for the year 2,277 (2,277) 2,830 (2,830)

Net assets 2,277 (2,277) 2,830 (2,830)

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(b) Liquidity risk

This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled bydelivering cash or another financial asset during the year and at the year end.

Management of the risk

Liquidity risk is not significant as the Company’s assets comprise mainly readily realisable securities, the liquidity of which in normalmarkets is frequently tested by the investment managers and which can be sold to meet funding requirements if necessary. Shortterm flexibility is achieved through the use of overdraft facilities.

Liquidity risk exposure

All financial liabilities stated in note 13 are repayable on demand to the value they are stated.

(c) Credit risk

Credit risk is the risk that the counterparty to a transaction fails to discharge its obligations under that transaction which could resultin loss to the Company.

Management of credit risk

Portfolio dealing

The Company invests in markets that operate DVP (Delivery Versus Payment) settlement. The process of DVP mitigates the risk oflosing the principal of a trade during the settlement process. The Manager continuously monitors dealing activity to ensure bestexecution, a process that involves measuring various indicators including the quality of trade settlement and incidence of failedtrades. Counterparty lists are maintained and adjusted accordingly.

Cash and cash equivalents

Counterparties are subject to regular credit analysis by the Manager and deposits can only be placed with counterparties that havebeen approved by JPMAM’s Counterparty Risk Group and the Board. The Board regularly reviews the counterparties used by theManager.

Exposure to JPMorgan Chase

JPMorgan Chase Bank, N.A. is the custodian of the Company’s assets. The Company’s assets are segregated from JPMorgan Chase’sown trading assets. Therefore these assets are designed to be protected from creditors in the event that JPMorgan Chase were tocease trading. The Depositary, BNY Mellon Trust and Depositary (UK) Limited, is responsible for the safekeeping of all custodial assetsof the Company and for verifying and maintaining a record of all other assets of the Company. However, no absolute guarantee canbe given on the protection of all the assets of the Company.

Credit risk exposure

The amounts shown in the Statement of Financial Position under debtors and cash and cash equivalents represent the maximumexposure to credit risk at the current and comparative year ends.

(d) Fair values of financial assets and financial liabilities

All financial assets and liabilities are either included in the Statement of Financial Position at fair value or the carrying amount is areasonable approximation of fair value.

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22. Capital management policies and proceduresThe Company’s capital comprises the following:

2016 2015£’000 £’000

EquityCalled up share capital 617 617Reserves 23,163 28,650

Total capital 23,780 29,267

The Company’s capital management objectives are to ensure that it will continue as a going concern and to maximise total return toshareholders.

The Board’s policy is to utilise gearing when the Manager believes it appropriate to do so, up to a maximum of 20% geared at thetime of drawdown.

2016 2015£’000 £’000

Investments held at fair value through profit or loss 23,004 28,592Current assets excluding cash and cash equivalents 169 124Current liabilities (90) (101)

Total assets 23,083 28,615

Net assets 23,780 29,267

Gearing/(net cash) (2.9)% (2.2)%

The Board, with the assistance of the Manager, monitors and reviews the broad structure of the Company’s capital on an ongoingbasis. This review includes:

– the planned level of gearing, which takes into account the Manager’s views on the market;

– the need to buy back equity shares, either for cancellation or to hold in Treasury, which takes into account the share price discountor premium;

– the opportunity for issues of new shares, including issues from Treasury; and

– the level of dividend distributions in excess of that which is required to be distributed.

23. Subsequent EventsSince the year end the UK voted to leave the European Union in a referendum held on 23rd June. Since the result sterling hasweakened materially against other currencies. This has had the effect of increasing the Company’s net asset value per share. At thesame time discounts across the investment trust sector widened as investment trust share prices failed to keep up with rising NAVs intrusts with significant exposure to non-sterling assets. It is too early to say if these trends will continue over the longer term.

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Regulatory Disclosures

Leverage

For the purposes of the Alternative Investment Fund Managers Directive (the ‘AIFMD’), leverage is any method which increases the Company’sexposure, including the borrowing of cash and the use of derivatives. It is expressed as a ratio between the Company’s exposure and its netasset value and is calculated on a gross and a commitment method, in accordance with the AIFMD. Under the gross method, exposurerepresents the sum of the Company’s positions without taking into account any hedging and netting arrangements. Under the commitmentmethod, exposure is calculated after certain hedging and netting positions are offset against each other.

The Company is required to state its maximum and actual leverage levels, calculated as prescribed by the AIFMD, as at 30th April 2016,which gives the following figures:

Gross CommitmentMethod Method

Leverage ExposureMaximum limit 200% 200%Actual 100% 100%

JPMF Remuneration

JPMF is the authorised manager of the Company and is part of the J.P. Morgan Chase & Co. group of companies. In this disclosure, the terms‘J.P. Morgan’ or ‘Firm’ refer to that group, and each of the entities in that group globally, unless otherwise specified.

This disclosure has been prepared in accordance with the AIFMD, the European Commission Delegated Regulation supplementing theAIFMD, the ‘Guidelines on Sound Remuneration Policies’ under the AIFMD issued by the European Securities and Markets Authority and theFinancial Conduct Authority Handbook (SYSC 19B: The AIFM Remuneration Code and FUND 3.3).

JPMF Remuneration Policy

The current remuneration policy for the EMEA Global Investment business of J.P. Morgan can be found at https://am.jpmorgan.com/gb/en/asset-management/gim/adv/emea-remuneration-policy. This policy includes details of the alignment with risk management, thefinancial and non-financial criteria used to evaluate performance and the measures adopted to avoid or manage conflicts of interest.

JPMF Quantitative Disclosures

Disclosures in accordance with FUND 3.3.5, Article 22(2)e and 22(2)f of the AIFMD and Article 107 of the Delegated Regulation are disclosedon the Company’s website at www.jpmbrazil.co.uk.

ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE (‘AIFMD’) DISCLOSURES(UNAUDITED)

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NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the fifth Annual General Meeting ofJPMorgan Brazil Investment Trust plc will be held at 60 VictoriaEmbankment, London EC4Y 0JP on Wednesday, 7th September 2016at 2.00 p.m. for the following purposes:

1. To receive the Directors’ Report & Accounts and the Auditor’sReport for the year ended 30th April 2016.

2. To approve the Directors’ Remuneration Policy.

3. To approve the Directors’ Remuneration Report for the yearended 30th April 2016.

4. To approve a final dividend of 0.50p per Ordinary share.

5. To reappoint Mark Bridgeman as a Director of the Company.

6. To reappoint Ernst & Young LLP as auditor of the Companyand to authorise the Directors to determine theirremuneration.

Special Business To consider the following resolutions:

Authority to allot new shares – Ordinary Resolution7. THAT the Directors of the Company be and they are hereby

generally and unconditionally authorised, (in substitution ofany authorities previously granted to the Directors), pursuantto and in accordance with Section 551 of the Companies Act2006 (the ‘Act’) to exercise all the powers for the Company toallot relevant securities (in the Company and to grant rightsto subscribe for, or to convert any security into shares in theCompany (‘Rights’)) up to an aggregate nominal amount of£42,335, representing approximately 10% of the Company’sissued Ordinary share capital (excluding treasury shares) atthe date of the passing of this resolution provided, that thisauthority shall expire at the conclusion of the Annual GeneralMeeting of the Company to be held in 2017, save that theCompany may before such expiry make offers, agreements orarrangements which would or might require relevantsecurities to be allotted after such expiry and so that theDirectors of the Company may allot relevant securities inpursuance of such offers, agreements or arrangements as ifthe authority conferred hereby had not expired.

Authority to disapply pre-emption rights on allotment ofshares – Special Resolution 8. THAT subject to the passing of Resolution 7 set out above, the

Directors of the Company be and they are hereby empoweredpursuant to Section 570 and 573 of the Act to allot equitysecurities (within the meaning of Section 560 of the Act) for

cash pursuant to the authority conferred by Resolution 7 orby way of sale of Treasury shares as if Section 561(1) of theAct did not apply to any such allotment, provided that thispower shall be limited to the allotment of equity securities forcash up to an aggregate nominal amount of £42,335,representing approximately 10% of the Ordinary issued sharecapital (excluding treasury shares) as at the date of thepassing of this resolution at a price of not less than the NetAsset Value per share and shall expire at the Company’sAnnual General Meeting in 2017, save that the Company maybefore such expiry make offers, agreements or arrangementswhich would or might require equity securities in pursuanceof such offers, agreements or arrangements as if the powerconferred hereby had not expired.

Authority to repurchase the Company’s shares – SpecialResolution 9. THAT the Company be generally and subject as hereinafter

appears unconditionally authorised in accordance withSection 701 of the Companies Act 2006 (the ‘Act’) to makemarket purchases (within the meaning of Section 693 of theAct) of its issued Ordinary shares, on such terms and in suchmanner as the Directors may from time to time determine.

PROVIDED ALWAYS THAT

(i) the maximum number of Ordinary shares herebyauthorised to be purchased shall be 6,346,144, or ifless, that number of Ordinary shares which is equal to14.99% of the issued share capital as at the date of thepassing of this Resolution or such number as is equalto 14.99% of the issued Ordinary shares as at the dateof the passing of its Resolution;

(ii) the minimum price which may be paid for any Ordinaryshare shall be 1p;

(iii) the maximum price which may be paid for a share shallbe an amount equal to the highest of: (a) 105% of theaverage of the middle market quotations for a anOrdinary share, taken from and calculated by referenceto the London Stock Exchange Daily Official List forthe five business days immediately preceding the dayon which the share is contracted to be purchased; or(b) the price of the last independent trade; or (c) thehighest current independent bid;

(iv) any purchase of shares will be made in the market forcash at prices below the prevailing net asset value pershare (as determined by the Directors);

Shareholder Information

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(v) the authority hereby conferred shall expire on6th March 2017 unless the authority is renewed atany other general meeting prior to such time; and

(vi) the Company may make a contract to purchaseOrdinary shares under the authority and may make apurchase of ordinary shares pursuant to any suchcontract notwithstanding such expiry.

Continuation Vote – Ordinary Resolution10. THAT the Company continues in existence as an investment

trust for a further three year period.

By order of the BoardDivya Amin, for and on behalf of JPMorgan Funds Limited, Secretary

19th July 2016

Notes These notes should be read in conjunction with the notes on the reverse ofthe proxy form.

1. A member entitled to attend and vote at the Meeting may appointanother person(s) (who need not be a member of the Company) toexercise all or any of his rights to attend, speak and vote at theMeeting. A member can appoint more than one proxy in relation to theMeeting, provided that each proxy is appointed to exercise the rightsattaching to different shares held by him.

2. A proxy does not need to be a member of the Company but mustattend the Meeting to represent you. Your proxy could be theChairman, another Director of the Company or another person who hasagreed to attend to represent you. Details of how to appoint theChairman or another person(s) as your proxy or proxies using theproxy form are set out in the notes to the proxy form. If a voting box onthe proxy form is left blank, the proxy or proxies will exercise his/theirdiscretion both as to how to vote and whether he/they abstain(s) fromvoting. Your proxy must attend the Meeting for your vote to count.Appointing a proxy or proxies does not preclude you from attendingthe Meeting and voting in person.

3. Any instrument appointing a proxy, to be valid, must be lodged inaccordance with the instructions given on the proxy form.

4. You may change your proxy instructions by returning a new proxyappointment. The deadline for receipt of proxy appointments alsoapplies in relation to amended instructions. Any attempt to terminateor amend a proxy appointment received after the relevant deadline willbe disregarded. Where two or more valid separate appointments ofproxy are received in respect of the same share in respect of the sameMeeting, the one which is last received (regardless of its date or thedate of its signature) shall be treated as replacing and revoking theother or others as regards that share; if the Company is unable todetermine which was last received, none of them shall be treated asvalid in respect of that share.

5. To be entitled to attend and vote at the Meeting (and for the purpose ofthe determination by the Company of the number of votes they maycast), members must be entered on the Company’s register ofmembers as at 6.30 p.m. two business days prior to the Meeting (the‘specified time’). If the Meeting is adjourned to a time not more than48 hours after the specified time applicable to the original Meeting,that time will also apply for the purpose of determining the entitlementof members to attend and vote (and for the purpose of determining thenumber of votes they may cast) at the adjourned Meeting. If, however,the Meeting is adjourned for a longer period then, to be so entitled,members must be entered on the Company’s register of members as at6.30 p.m. two business days prior to the adjourned Meeting or, if theCompany gives notice of the adjourned Meeting, at the time specifiedin that notice. Changes to entries on the register after this time shall bedisregarded in determining the rights of persons to attend or vote atthe Meeting or adjourned Meeting.

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Shareholder Information continued


6. Entry to the Meeting will be restricted to shareholders and their proxyor proxies, with guests admitted only by prior arrangement.

7. A corporation, which is a shareholder, may appoint an individual(s) toact as its representative(s) and to vote in person at the Meeting (seeinstructions given on the proxy form). In accordance with theprovisions of the Companies Act 2006, each such representative mayexercise (on behalf of the corporation) the same powers as thecorporation could exercise if it were an individual member of theCompany, provided that they do not do so in relation to the sameshares. It is therefore no longer necessary to nominate a designatedcorporate representative. Representatives should bring to the Meetingevidence of their appointment, including any authority under which it issigned.

8. Members that satisfy the thresholds in Section 527 of the CompaniesAct 2006 can require the Company to publish a statement on itswebsite setting out any matter relating to: (a) the audit of theCompany’s accounts (including the Auditors’ report and the conduct ofthe audit) that are to be laid before the AGM; or (b) any circumstancesconnected with Auditors of the Company ceasing to hold office sincethe previous AGM, which the members propose to raise at the Meeting.The Company cannot require the members requesting the publicationto pay its expenses. Any statement placed on the website must also besent to the Company’s Auditors no later than the time it makes itsstatement available on the website. The business which may be dealtwith at the AGM includes any statement that the Company has beenrequired to publish on its website pursuant to this right.

9. Pursuant to Section 319A of the Companies Act 2006, the Companymust cause to be answered at the AGM any question relating to thebusiness being dealt with at the AGM which is put by a memberattending the Meeting except in certain circumstances, including if it isundesirable in the interests of the Company or the good order of theMeeting or if it would involve the disclosure of confidential information.

10. Under Sections 338 and 338A of the 2006 Act, members meeting thethreshold requirements in those sections have the right to require theCompany: (i) to give, to members of the Company entitled to receivenotice of the Meeting, notice of a resolution which those membersintend to move (and which may properly be moved) at the Meeting;and/or (ii) to include in the business to be dealt with at the Meeting anymatter (other than a proposed resolution) which may properly beincluded in the business at the Meeting. A resolution may properly bemoved, or a matter properly included in the business unless: (a) (in thecase of a resolution only) it would, if passed, be ineffective (whether byreason of any inconsistency with any enactment or the Company’sconstitution or otherwise); (b) it is defamatory of any person; or (c) it isfrivolous or vexatious. A request made pursuant to this right may be inhard copy or electronic form, must identify the resolution of whichnotice is to be given or the matter to be included in the business mustbe accompanied by a statement setting out the grounds for therequest, must be authenticated by the person(s) making it and must bereceived by the Company not later than the date that is six clear weeksbefore the Meeting, and (in the case of a matter to be included in thebusiness only) must be accompanied by a statement setting out thegrounds for the request.

11. A copy of this notice has been sent for information only to persons whohave been nominated by a member to enjoy information rights underSection 146 of the Companies Act 2006 (a ‘Nominated Person’). Therights to appoint a proxy can not be exercised by a Nominated Person:they can only be exercised by the member. However, a NominatedPerson may have a right under an agreement between him and themember by whom he was nominated to be appointed as a proxy for theMeeting or to have someone else so appointed. If a Nominated Persondoes not have such a right or does not wish to exercise it, he may havea right under such an agreement to give instructions to the member asto the exercise of voting rights.

12. In accordance with Section 311A of the Companies Act 2006, thecontents of this notice of meeting, details of the total number of sharesin respect of which members are entitled to exercise voting rights atthe AGM, the total voting rights members are entitled to exercise at theAGM and, if applicable, any members’ statements, members’resolutions or members’ matters of business received by the Companyafter the date of this notice will be available on the Company’s websitewww.jpmbrazil.co.uk.

13. The register of interests of the Directors and connected persons in theshare capital of the Company and the Directors’ letters of appointmentare available for inspection at the Company’s registered office duringusual business hours on any weekday (Saturdays, Sundays and publicholidays excepted). it will also be available for inspection at the AnnualGeneral Meeting. No Director has any contract of service with theCompany.

14. You may not use any electronic address provided in this Notice ofMeeting to communicate with the Company for any purposes otherthan those expressly stated.

15. As an alternative to completing a hard copy Form of Proxy/VotingInstruction Form, you can appoint a proxy or proxies electronically byvisiting www.sharevote.co.uk. You will need your Voting ID, Task ID andShareholder Reference Number (this is the series of numbers printedunder your name on the Form of Proxy/Voting Instruction Form).Alternatively, if you have already registered with Equiniti Limited’sonline portfolio service, Shareview, you can submit your Form of Proxyat www.shareview.co.uk. Full instructions are given on both websites.

16. As at 18th July 2016 (being the latest business day prior to thepublication of this Notice), the Company’s issued share capital consistsof 42,335,854 Ordinary shares (excluding treasury shares) carrying onevote each. Therefore the total voting rights in the Company are42,335,854.

Electronic appointment – CREST membersCREST members who wish to appoint a proxy or proxies by utilising theCREST electronic proxy appointment service may do so for the Meeting andany adjournment(s) thereof by using the procedures described in the CRESTManual. See further instructions on the proxy form.

NOTICE OF ANNUAL GENERAL MEETING CONTINUED

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GLOSSARY OF TERMS AND DEFINITIONS

Return to shareholdersTotal return to the investor, on a mid-market price to mid marketprice basis, assuming that all dividends received were reinvested,without transaction costs, into the shares of the Company at thetime the shares were quoted ex-dividend.

Return on net assetsTotal return on net asset value (‘NAV’) per share, on a bid valueto bid value basis, assuming that all dividends paid out by theCompany were reinvested into the shares of the Company at theNAV per share at the time the shares were quoted ex dividend.

In accordance with industry practice, dividends payable which havebeen declared but which are unpaid at the balance sheet date arededucted from the NAV per share when calculating the return onnet assets.

Benchmark total returnTotal return on the benchmark, on a mid market value to midmarket value basis, assuming that all dividends received werereinvested, without transaction costs, in the shares of theunderlying companies at the time the share were quoted exdividend.

The benchmark is a recognised index of stocks which should not betaken as wholly representative of the Company’s investmentuniverse. The Company’s investment strategy does not follow or‘track’ this index and consequently, there will be some divergencebetween the Company’s performance and that of the benchmark.

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

Gearing/(net cash) Gearing represents the excess amount above shareholders’ funds oftotal assets expressed as a percentage of the shareholders’ funds.

Total assets include total investments and net currentassets/liabilities less cash/cash equivalents. If the amountcalculated is negative, this is shown as a ‘net cash’ position.

Ongoing Charges Management fees and all other operating expenses excludingperformance fee, expressed as a percentage of the average dailynet assets during the year.

Performance AttributionAnalysis of how the Company achieved its recorded performancerelative to its benchmark.

Performance Attribution Definitions:– Asset Allocation

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

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

– Gearing/CashGearing represents the excess amount above shareholders’ fundsof total assets (including net current assets/liabilities) lesscash/cash equivalents, expressed as a percentage of theshareholders’ funds. If the amount so calculated is negative, thisis shown as a ‘net cash’ position.

– Management Fees/Other ExpensesThe payment of fees and expenses reduces the level of totalassets, and therefore has a negative effect on relativeperformance.¬

– Share RepurchasesMeasures the positive effect on relative performance ofrepurchasing the Company’s shares for cancellation, orrepurchases into Treasury, at a discount to their net asset value(‘NAV’) per share.

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Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that turn out to beworthless or non-existent, or to buy shares at an inflated price in return for an upfront payment. While high profits are promised, ifyou buy or sell shares in this way you will probably lose your money.

Keep in mind that firms authorised by the FCAare unlikely to contact you out of the blue withan offer to buy or sell shares.

Do not get into a conversation, note the nameof the person and firm contacting you and thenend the call.

Check the Financial Services Register fromwww.fca.org.uk to see if the person and firmcontacting you is authorised by the FCA.

Beware of fraudsters claiming to be from anauthorised firm, copying its website or givingyou false contact details.

Use the firm’s contact details listed on theRegister if you want to call it back.

Call the FCA on 0800 111 6768 if the firm doesnot have contact details on the Register or youare told they are out of date.

Search the list of unauthorised firms to avoid atwww.fca.org.uk/scams.

Consider that if you buy or sell shares from anunauthorised firm you will not have access to theFinancial Ombudsman Service or FinancialServices Compensation Scheme.

Think about getting independent financial andprofessional advice before you hand over anymoney.

Remember: if it sounds too good to be true, itprobably is!

If you are approached by fraudsters please tell theFCA using the share fraud reporting form atwww.fca.org.uk/scams, where you can find outmore about investment scams.

You can also call the FCA Consumer Helpline on0800 111 6768.

If you have already paid money to share fraudstersyou should contact Action Fraud on 0300 123 2040.

5,000 people contact the Financial ConductAuthority about share fraud each year,with victims losing an average of £20,000

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Beware of share fraud

How to avoid share fraud

Report a scam

In association with:

Financial Conduct Authority

WHERE TO BUY J.P. MORGAN INVESTMENT TRUSTS

Savings PlanThe Company participates in the J.P. Morgan Investment TrustsSavings Plan, which facilitates both regular monthly investments andoccasional lump sum investments in the Company’s ordinary shares.Shareholders who would like information on the Savings Plan shouldcall J.P. Morgan Asset Management free on 0800 20 40 20 or visitits website at am.jpmorgan.co.uk

Stocks & Shares Individual Savings Accounts (ISA)The Company’s shares are eligible investments within J.P. Morgan’sStocks & Shares ISA. For the 2016/17 tax year, from 6th April 2016and ending 5th April 2017, the total ISA allowance is £15,240.Details are available from J.P. Morgan Asset Management free on0800 20 40 20 or via its website at am.jpmorgan.co.uk

There are a number of ways that you can buy shares in investmenttrust companies; you can invest through J.P. Morgan Online or onthe following:

Fund supermarkets:

Alternatively you can invest through an Investment Professional(e.g. a Financial Adviser) on the following 3rd party platforms:

Ascentric Nucleus Avalon Praemium Axa Elevate TransactNovia

Please note that these websites are third party websites andJ.P. Morgan Asset Management does not endorse or recommendany of them. This list is not exhaustive and is subject to change.Please observe each site’s privacy and cookie policies as well astheir platform charges structure.

You can also buy investment trusts through stockbrokers, wealthmanagers and banks.

To familiarise yourself with the Financial Conduct Authority (‘FCA’)adviser charging and commission rules, visit www.fca.org.uk.

AJ BellAlliance Trust SavingsBarclays StockbrokersCharles Stanley DirectHalifax Share Dealing ServiceHargreaves Lansdown Interactive Investor

James Brearley James HayStocktradeTD DirectThe Share Centre Tilney BestinvestTransact

Shareholder Information continued

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Information about the Company

HistoryJPMorgan Brazil Investment Trust plc is an investment trust whichwas launched in April 2010 to provide investors with exposure toBrazilian invested equities through a closed-ended structure.

Company NumbersCompany registration number: 7141630

Ordinary SharesLondon Stock Exchange ISIN code: GB00B602HS43 Bloomberg code: JPBSEDOL B602HS4

Market InformationThe Company’s unaudited net asset value (‘NAV’) is publisheddaily, via the London Stock Exchange.

The Company’s shares are listed on the London Stock Exchange.The market price is shown daily in the Financial Times, TheTimes, The Daily Telegraph, The Scotsman and on the JPMorganwebsite at www.jpmbrazil.co.uk, where the share price isupdated every fifteen minutes during trading hours.

Websitewww.jpmbrazil.co.uk

Share TransactionsThe Company’s shares may be dealt in directly through astockbroker or professional adviser acting on an investor’sbehalf. They may also be purchased and held through the J.P.Morgan Investment Account and J.P. Morgan ISA. Theseproducts are all available on the online service, atwww.jpmorgan.co.uk/online

Manager and Company SecretaryJPMorgan Funds Limited

Company’s Registered Office60 Victoria EmbankmentLondon EC4Y 0JPTelephone: 020 7742 4000

For company secretarial and administrative matters, pleasecontact Jonathan Latter at the above address.

DepositaryBNY Mellon Trust & Depositary (UK) LimitedBNY Mellon Centre160 Queen Victoria StreetLondon EC4V 4LA

The Depositary has appointed JPMorgan Chase Bank, N.A. asthe Company’s custodian.

RegistrarsEquiniti LimitedReference 3533Aspect HouseSpencer RoadLancingWest Sussex BN99 6DATelephone number: 0371 384 2814

Lines open 8.30 a.m. to 5.30 p.m. Monday to Friday. Calls to thehelpline will cost no more than a national rate call to a 01 or 02number. Callers from overseas should dial +44 121 415 0225

Notifications of changes of address and enquiries regardingshare certificates or dividend cheques should be made inwriting to the Registrar quoting reference 1090. Registeredshareholders can obtain further details on their holdings onthe internet by visiting www.shareview.co.uk.

Independent AuditorErnst & Young LLPStatutory Auditor25 Churchill PlaceCanary WharfLondon E14 5EY

BrokersNumis Securities LimitedThe London Stock Exchange Building10 Paternoster SquareLondon EC4M 7LT

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

FINANCIAL CALENDAR

Financial year end 30th April

Final results announced July

Half year end 31st October

Half year results announced December

Annual General Meeting September

A member of the AIC

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Telephone calls may be recorded and monitored for security and training purposes.

J.P. Morgan Helpline

Freephone 0800 20 40 20 or +44 (0) 1268 444470.Telephone lines are open Monday to Friday, 9am to 5.30pm.

www.jpmbrazil.co.uk

GB A103 07/16

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Documents

JPMorgan Brazil Investment Trust plc · JPMorgan Brazil Investment Trust plc Annual Report & Accounts for the year ended 30th April 2016 Brazil AR 4pp cover 19/07/2016 15:17 Page