JPMorgan Russian Securities plc

July 2014

Overall Morningstar RatingTM (as at 31/07/14)

Morningstar CategoryTM Russia Equity
Investment objective

Benchmark

To provide capital growth from investment in

Russian securities.

MSCI Russian 10/40 Equity Indices Index (()

Performance D

Company facts
Portfolio manager(s)

Oleg Biryulyov
Lysander Tennant,
George Nianias,
Alexander Easton,
Robert Jeens,
Gill Nott
31 October
2002
LSE

Cenkos Securities

Board of director(s)

Financial year end date

Company launch date
Listing
Dividends paid
Company Broker(s)

Total assets
(as at 31/07/14)
Share price
Net asset value A
Discount(
Discount()/Premium
Current
12 month high
12 month low
12 month average
Total dividend for last
financial year
Dividend yield
Actual gearing (as at
B
31/07/14)
Potential gearing range

(as at 31/07/14)

Net asset value

Benchmark

% based to 100

GBP 258.7m
423.0p
477.7p
11.5%
2.5%
14.4%
10.6%
15.3p
3.7%
9.7%
10% to 15%

Company fees & expenses

1.20% on Total net assets
1.51%
No

Company codes
ISIN
Sedol
Bloomberg
Reuters

Share Price

(as at 31/08/14)

Company statistics

Annual mgt. fee

Ongoing charges C
Performance fee

GB0032164732
3216473
JRS LN
JRS.L

Cumulative performance D
%
Share Price
Benchmark
Net asset value

1 M
12.0
5.9
8.0

3 M
6.9
10.0
10.4

1 Y
16.3
14.9
16.8

3 Y
33.0
34.2
31.1

5 Y
33.0
27.8
38.6

10 Y
185.1
231.6
192.6

Quarterly Rolling 12M ending June 2014 D

%
Share Price
Benchmark
Net asset value

2013/14
1.6
6.5
6.2

2012/13
3.7
3.2
7.1

2011/12
28.4
27.2
27.2

Holding
Lukoil ADR
Magnit
Sberbank of Russia (Including ADR)
JSC MMC Norilsk Nickel ADR
Megafon GDR
Mobile Telesystems (Including ADR)
Dixy ADR
Moscow Exchange Micex
MicexRTS (Including ADR)
Sistema GDR
Gazprom ADR

Correlation
Annualised volatility
Tracking error
Information ratio

2009/10
71.2
53.8
75.4
(as at 31/07/14)

Top 10 Holdings

Statistical analysis review

2010/11
29.5
36.0
28.6

(as at 31/07/14)
3 years 5 years
0.98
0.97
28.62% 26.69%
6.32%
6.92%
0.28
0.28

Sector
Energy
Consumer Staples
Financials
Materials
Telecommunication Services
Telecommunication Services
Consumer Staples
Financials
Telecommunication Services
Energy

Market capitalisation
> 100 bn
10 bn <> 100 bn
1 bn <> 10 bn
< 1 bn

Please read the Explanatory Notes, Risks and Important Information at the end of this document.

For further information, please contact:

UKbased Investor Services Team 0800 731 111 (or +44 20 7742 9995 if calling from outside the UK)
Agent Services Line 0800 727 770
Our lines are open Monday to Friday, 9.00am to 5.30pm
www.jpmorgan.co.uk/investmenttrusts

Weight
10.7%
10.0%
7.8%
6.7%
5.0%
4.4%
4.0%
3.7%
3.3%
3.2%

(as at 31/07/14)
% of portfolio
0.00%
67.20%
14.40%
18.40%

JPMorgan Russian Securities plc

Sector breakdown E

Oleg Biryulyov, managing director, is a regional

portfolio manager and the head of the Emerging
Europe, Middle East and Africa Group, with a
specialisation in Russia and Eastern Europe, within
the Emerging Markets Equity Team based in
London. An employee since 1994, Oleg was
previously a portfolio manager for Flemings Urals
Regional Venture Fund. Prior to this, he was an
investment analyst. Oleg obtained a degree in
economics from Moscow State University,
Lomonosov. He is a holder of the CFA designation.

Sector
Energy
Consumer Staples
Materials
Financials
Telecommunication Services
Consumer Discretionary
Information Technology
Industrials
Health Care
Utilities
Cash
Total

(as at 31/07/14)
Company
21.4%
14.4%
13.4%
12.7%
12.7%
9.0%
3.5%
2.5%
0.7%
0.0%
9.7%
100.0%

Benchmark
39.6%
8.9%
18.0%
16.2%
13.1%
0.0%
0.0%
0.0%
0.0%
4.2%
0.0%
100.0%

Deviation
18.2%
5.5%
4.6%
3.5%
0.4%
9.0%
3.5%
2.5%
0.7%
4.2%
9.7%
0.0%

(as at 31/07/14)
Most emerging market equities retained their positive momentum in July, ending the month in positive
territory. However, Russian equities fell significantly as further sanctions were imposed on the country, some
of which were targeted at the country's largest companies. In a surprise move, the central bank raised its key
interest rate by 50bps to 8% on concerns about inflation and the effect of geopolitical tensions on the
rouble.

Manager
Managers commentary

The trust
trusts net asset value and share price underperformed the benchmark in July. Our stock selection in
financials and telecoms detracted. An overweight in consumer staples contributed the most to relative
returns. An underweight in financials also added to the performance, as did our long
longstanding underweight
in energy. The market has bounced from the bottom, and Russian equities look attractive in relative and
absolute terms. As such, we believe that this is a good entry point to for those investing for the long term in
Russia.

Market Outlook
The recent developments in the Russia
RussiaUkraine conflict have confirmed our view that this area will remain a
source of volatility for some time. Our approach to this market has been to focus on our highest
highestconviction
stocks, without making a major call on the market itself. As the list of companies covered by sanctions
continues to grow, we are reviewing our current exposure closely and weighing the risks to the investment
case for each stock against the opportunity that current valuations present.

Please read the Explanatory Notes, Risks and Important Information at the end of this document.

JPMorgan Russian Securities plc

Investment trust history and investment policies

The Company was launched in December 2002 by a placing and offer for subscription. It is the successor company to The Fleming Russia Securities Fund Limited,
which was a closed
closedended investment company incorporated in Jersey and listed on the Irish Stock Exchange. The Company adopted its present name on 1st March
2006.
In order to achieve the investment objective and manage risk, the Company invests in a diversified portfolio of investments in quoted Russian securities and Russian
pre
preIPO stocks or other companies which derive the majority of their revenue or gains from operating in Russia. The number of investments in the portfolio will
normally range between 30 and 60. The investment portfolio is managed by two Russian fund managers, , both of whom are fully supported by a global emerging
markets team, including sector specialists. The investment managers employ the Company
Companys gearing tactically, within a strategic range set by the Board. However,
currently the Company has no loan facility in place

Explanatory Notes, Risks and Important Information

Notes

See Glossary of terms for explanations.

Important Information

Cum Income only NAV with debt at par, diluted for

treasury and/or subscription shares if applicable
B
Actual gearing: Represents the excess amount
above shareholders' funds of total assets less
cash/cash equivalents, expressed as a percentage
of shareholders funds. If the amount calculated is
negative, this represents a net cash position.
C
Ongoing charges exclude the effect of
management fees charged by the underlying
funds.
D
Prior to 01/11/06 benchmark was CSFB ROS Index.
E
Non
NonBenchmark are classified in the appropriate
sector/region. Cash is net current assets and
holdings used as cash substitutes if applicable.
Benchmark Source: MSCI. Neither MSCI nor any
other party involved in or related to compiling,
computing or creating the MSCI data makes any
express of implied warranties or representations
with respect to such data (or the results to be
obtained by the use thereof), and all such parties
hereby expressly disclaim all warranties of
originality,
accuracy,
completeness,
merchantability or fitness for a particular purpose
with respect to any of such data. Without limiting
any of the foregoing, in no event shall MSCI, any
of its affiliates or any third party involved in or
related to compiling computing or creating the
data have any liability for any direct, indirect,
special, punitive, consequential or any other
damages (including lost profits) even if notified of
the possibility of such damages. No further
distribution or dissemination of the MSCI data is
permitted without MSCI
MSCIs express written consent.

This material should not be relied on as including sufficient information to support an investment decision.
This is a promotional document and as such the views contained herein are not to be taken as an advice or
recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material
is at the sole discretion of the reader. Any research in this document has been obtained and may have been
acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being
made available as additional information and do not necessarily reflect the views of J.P.Morgan Asset
Management.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase &
Co and its affiliates worldwide. You should note that if you contact J.P. Morgan Asset Management by
telephone those lines may be recorded and monitored for legal, security and training purposes. You should
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through the following website http://www.jpmorgan.com/pages/privacy.
Investment is subject to documentation which is comprised of the Prospectus, Investment Trust Profiles, Key
Investor Information Document (KIID) and either the Supplementary Information Document (SID) or Key
Features and Terms and Conditions, copies of which can be obtained free of charge from J.P. Morgan Asset
Management Marketing Limited. Issued by J.P. Morgan Asset Management Marketing Limited which is
authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No. 288553.
Registered address: 25 Bank St, Canary Wharf, London E14 5JP.
Non
Nonmainstream pooled Investment products Information (or status)
Shares and debentures (if any) in an Investment Trust are not subject to Financial Conduct Authority
Authoritys (FCA)
restrictions for marketing Nonmainstream Pooled Investment products, therefore Investment Trust products
can be marketed to retail investors directly or via Independent Financial Advisers.
2014 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to
Morningstar (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use
of this information. Past performance is no guarantee of future results.

JPMorgan Russian Securities plc

Glossary
A n n u a l v o l a t i l i t y : Volatility is one measure used to assess the risk of a portfolio as it helps to describe the likely range of returns achieved by the fund. In
statistical terms it is the standard deviation of the return distribution. Greater volatility of monthly Net Asset Value returns means that there is a wider range of likely
returns in the future, or greater uncertainty regarding the fund return. Most investors would equate this greater uncertainty with greater risk. Gearing will have an
impact on the volatility of an investment trust.
B e n c h m a r k c o m p a r i s o n : Comparison of the Company's performance is made with the benchmark. The benchmark is a recognised index of stocks which
should not be taken as wholly representative of the Company's investment universe. The Company's investment strategy does not follow or track this index and
therefore there may be a degree of divergence between its performance and that of the Company.
C a s h : Net current assets and includes investment in liquidity funds & treasury stocks (if held) and drawn revolving credit facilities (if any) with an original
maturity of less than 1 year.
C o r r e l a t i o n : Correlation describes the way in which Net Asset Value has moved relative to the benchmark. Correlation coefficients range between +1.0 for
assets which consistently move in the same direction, and 1.0 for assets which consistently move in the opposite direction. Assets with a correlation of zero are
unrelated. Portfolios combining assets with low correlations provide diversification or risk reduction benefits, potentially without decreasing total portfolio return.
A c t u a l g e a r i n g : Total portfolio less liquidity stocks, divided by net assets plus income cash and any effects of performance fees and revenue reserve accruals
where applicable.
G e a r i n g r a n g e : Indication of the maximum and minimum percentage by which the Company may be geared.
I n f o r m a t i o n r a t i o : This is the difference between the annualised average fund return and the annualised average benchmark return (calculated
geometrically) divided by the annualised tracking error. The higher the ratio, the better, as it shows that the risk taken by the fund manager relative to the
benchmark has been rewarded. Gearing will have an impact on the information ratio.
S e c t o r / G e o g r a p h i c a l b r e a k d o w n s : These are expressed as a percentage of total portfolio and cash. Investments in liquidity funds will be shown as cash.
T o p 1 0 h o l d i n g s : These are expressed as a percentage of total portfolio and cash. Investments in liquidity funds / treasury stocks will not be shown in the top
10 holdings.
O n g o i n g c h a r g e s : Management fees and all other operating expenses, excluding interest payments and commissions which are treated as a separate
capital item, expressed as a percentage of the average of the opening and closing net assets. This calculation is based on the financial year end data and will be
updated annually.
T r a c k i n g e r r o r : Tracking error measures the standard deviation of relative returns, i.e. the Net Asset Value return less the benchmark return. Tracking error is
often used as a measure of risk taken against the fund's benchmark with a larger tracking error indicating that greater risks were taken relative to the benchmark
in achieving the return of the fund. Gearing will increase a tracking error.

Please read the Explanatory Notes, Risks and Important Information at the end of this document.