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16/05/2014

4:39 PM

JPMorgan Asia Absolute Return Fund Unaudited Semi-Annual Report 31 March 2014

This report does not constitute an offer of any units in the fund forming the subject matter of this document (the "Fund"). Subscriptions are only valid if made on the basis of the current information memorandum (or equivalent), supplemented by the most recent financial report, if available. Notice to U.K. residents: This document is only directed to persons believed by JPMorgan Asset Management (U.K.) Limited to be investment professionals as defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, high net worth companies, unincorporated associations and other persons as defined in Article 49 of that Order and to others to whom it can lawfully be distributed or given, inside the United Kingdom, without approval by an authorised person. Persons who do not have professional experience in matters relating to investments should not rely on it and any other person should not act on such information. This document is issued in the U.K. by JPMorgan Asset Management (U.K.) Limited and has been approved solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 by JPMorgan Asset Management (U.K.) Limited which is authorised and regulated in the U.K. by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London, UK, E14 5JP. Although JPMorgan Asset Management (Europe) S.à r.l., under certain administrative services agreements, provides services to the Fund, the Fund is not subject to the laws of Luxembourg nor is it subject to supervision by any supervisory authority in Luxembourg.

JPMO ORGAN ASIA ABSOLUTE RETURN FUND Contents

Semi--annual report for the pe riod e nded 311 March 2 014 4

Page

Statement of Financial Position

1

Statement of Comprehensive Income

2

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units

3

Statement of Cash Flows

4

Notes to the Financial Statements Investment Portfolio Statement of Movements in Portfolio Holdings

5–9 10 – 12 13

JPMORGAN ASIA ABSOLUTE RETURN FUND

Semi--annual report for the period ended 31 March 2014

Statement of Financial Position As at 31 March 2014 (Unaudited)

Assets Cash at banks Short term deposits Amounts due from brokers Margin deposits Collateral deposits with brokers Derivatives Investments - long positions Dividend and other accounts receivable Total assets

Liabilities Short term bank loans - unsecured Amounts due to brokers Amounts payable on redemption Performance fee payable Derivatives Investments - short positions Other accounts payable Liabilities (excluding net assets attributable to holders of redeemable units)

Net assets attributable to holders of redeemable units [Note 3]

The notes on pages 5 to 9 form part of these financial statements. -1-

31.3.2014 US$

30.9.2013 US$

2,999,523 3,220,977 330,814 2,223,976 3,134,400 401,878 64,051,088 186,290 ņņņņņņņņņņ 76,548,946 ----------

78,962 9,809,211 2,793,028 5,624,491 4,935,100 426,393 72,600,567 97,091 ņņņņņņņņņņ 96,364,843 ----------

1,458,554 1,075,282 13,259 364,654 2,944,119 145,855 ņņņņņņņņņņ 6,001,723 ----------

1,750,113 1,493,510 1,675,834 54,120 1,596,892 4,625,427 174,402 ņņņņņņņņņņ 11,370,298 ----------

70,547,223 őőőőőőőőőő

84,994,545 őőőőőőőőőő

JPMORGAN ASIA ABSOLUTE RETURN FUND

Semi--annual report for the period ended 31 March 2014

Statement of Comprehensive Income For the period ended 31 March 2014 (Unaudited) 1.10.2013 to 31.3.2014 US$ Income Net (losses)/gains on investments and derivatives [Note 4] Dividend income Interest on deposits Securities borrowing fee (net of interest on collateral deposits) Net foreign currency exchange losses Other income

Expenses Management fee Transaction costs Auditor's fee Trustee's fee Performance fee Legal and professional expenses Safe custody and bank charges Printing and publication expenses Registrar's fee Valuation fee Other operating expenses

Net operating (loss)/profit Finance costs Interest paid (Loss)/profit before taxation Taxation

Change in cumulative difference arising from the fair value adjustment of units of the Fund

(Decrease)/increase in net assets attributable to holders of redeemable units and total comprehensive income

The notes on pages 5 to 9 form part of these financial statements. -2-

1.10.2012 to 31.3.2013 US$

(799,092) 210,623 65,257 (2,683) (88,869) 462 ņņņņņņņņņņ (614,302) ----------

2,638,130 236,241 4,717 (6,219) (276,531) ņņņņņņņņņņ 2,596,338 ----------

392,581 207,373 26,378 19,039 13,259 7,730 5,051 4,914 3,436 420 13,131 ņņņņņņņņņņ 693,312 ----------

432,295 433,703 26,725 19,981 1,479 3,279 7,463 2,915 3,098 420 8,358 ņņņņņņņņņņ 939,716 ----------

(1,307,614)

1,656,622

(2,311) ņņņņņņņņņņ (1,309,925)

(4,463) ņņņņņņņņņņ 1,652,159

(30,866) ņņņņņņņņņņ

(39,970) ņņņņņņņņņņ

(1,340,791)

1,612,189

ņņņņņņņņņņ

(380,016) ņņņņņņņņņņ

(1,340,791) őőőőőőőőőő

1,232,173 őőőőőőőőőő

JPMORGAN ASIA ABSOLUTE RETURN FUND

Semi--annual report for the period ended 31 March 2014

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period ended 31 March 2014 (Unaudited)

Net assets attributable to h olders of redeemable units at the beginning of the period

Allotment of redeemable units Redemption of redeemable units Net r edemption

(Decrease)/increase in net assets attributable to holders of redeemable units and total comprehensive income

Net assets attributable to holders of redeemable units at the end of the period

The notes on pages 5 to 9 form part of these financial statements. -3-

1.10.2013 to 31.3.2014 US$

1.10.2012 to 31.3.2013 US$

84,994,545 ----------

87,750,702 ----------

609,548

779,957

(13,716,079) ņņņņņņņņņņ (13,106,531) ----------

(9,993,274) ņņņņņņņņņņ (9,213,317) ----------

71,888,014

78,537,385

(1,340,791) ņņņņņņņņņņ

1,232,173 ņņņņņņņņņņ

70,547,223 őőőőőőőőőő

79,769,558 őőőőőőőőőő

Semi--annual report for the period ended 31 March 2014

JPMORGAN ASIA ABSOLUTE RETURN FUND Statement of Cash Flows For the period ended 31 March 2014 (Unaudited)

1.10.2013 to 31.3.2014 US$ Operating activities Purchase of investments and derivatives Proceeds from disposal of investments and derivatives Decrease in margin deposits Decrease/(increase) in collateral deposits with brokers Dividend received Interest received Securities borrowing fee paid (net of interest on collateral deposits) Registrar's fee paid Trustee's fee paid Tax paid Performance fee paid Transaction costs paid Management fee paid Others Net cash inflow from operating activities

Financing activities Interest paid Receipts on allotment of redeemable units Payments on redemption of redeemable units Net cash outflow from financing activities

Decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period Exchange losses on cash and cash equivalents Cash and cash equivalents at the end of the period

1.10.2012 to 31.3.2013 US$

(45,430,015) 52,722,388 3,400,515 1,800,700 160,086 27,403 (3,307) (6,386) (19,360) (30,866) (54,120) (212,951) (405,415) (89,143) ņņņņņņņņņņņ 11,859,529 -----------

(134,031,044) 142,348,187 239,589 (2,928,100) 156,311 6,805 (7,829) (6,606) (20,114) (39,970) (1,519) (450,147) (437,613) (350,234) ņņņņņņņņņņņ 4,477,716 -----------

(2,350) 609,548 (14,316,631) ņņņņņņņņņņņ (13,709,433) -----------

(4,127) 829,957 (8,812,564) ņņņņņņņņņņņ (7,986,734) -----------

(1,849,904) 8,138,060 (67,656) ņņņņņņņņņņņ 6,220,500 őőőőőőőőőőő

(3,509,018) (233,158) (5,187) ņņņņņņņņņņņ (3,747,363) őőőőőőőőőőő

2,999,523 3,220,977 ņņņņņņņņņņņ 6,220,500 őőőőőőőőőőő

303,323 (4,050,686) ņņņņņņņņņņņ (3,747,363) őőőőőőőőőőő

Analysis of balances of cash and cash equivalents: Cash at banks Short term deposits Short term bank loans - unsecured

The notes on pages 5 to 9 form part of these financial statements. -4-

JPMORGAN ASIA ABSOLUTE RETURN FUND

Semi--annual report for the period ended 31 March 2014

Notes to the Financial Statements 1

The Fund JPMorgan Asia Absolute Return Fund (the "Fund") was established under a Trust Deed dated 6 September 1989, as amended, and is governed by the laws of the Cayman Islands. The Fund is authorized by the Securities and Futures Commission of Hong Kong. The investment objective of the Fund is to provide investors with long-term capital growth in US$ terms through an aggressively managed portfolio of equities, bonds and currencies, and derivatives of any of these. The Manager seeks to achieve this objective by investing primarily in the Asia-Pacific region (including Japan). The Fund may, as considered appropriate by the Manager, hold substantial amounts of its portfolio in cash and cash-based instruments. In order to ensure that the relevant performance fee charged to holders of redeemable units would relate more accurately to any investment gains in which they have participated, all units issued on a particular monthly dealing day have notionally been regarded as a separate unit class from units issued on other dealing days. Accordingly, a number of different unit classes are created within the Fund. A merging of separate unit classes will normally occur where, as at a year-end date, a management performance fee becomes payable by each of such unit classes. For unit classes to be merged, all units from respective unit class will be redeemed and subsequently subscribed into a merged unit class. The total value of any unitholders' units is not affected by the merger. On 2 October 2013, certain unit classes were merged in respect of the financial year ended 30 September 2013. Pursuant to the Trust Deed, with effect from 20 December 2002, all units for any new unit classes are issued at a fixed price of US$10 per unit (the "Subscription Price"). A preliminary charge per unit of up to 5 per cent of Subscription Price on the issue of unit is charged and paid to the Manager. All unitholders' rights with regard to the convening, voting or otherwise acting at any meeting of unitholders are the same.

2

Summary of principal accounting policies (a) Accounting policies of interim financial statements The accounting policies and methods of computation used in the preparation of these unaudited condensed interim financial statements are consistent with those used in the annual financial statements for the year ended 30 September 2013. (b) Investments and derivatives

Classification The Fund classifies its investments and derivatives as financial assets or financial liabilities at fair value through profit or loss. These financial assets or financial liabilities are held-for-trading as they are acquired or incurred principally for the purpose of selling or repurchasing in the near term or short-term profit taking. All derivatives are carried in assets when amounts are receivable by the Fund and in liabilities when amounts are payable by the Fund. The Fund makes short sales in which a borrowed security is sold in anticipation of a decline in the market value of that security, or it may use short sales for various arbitrage transactions. Short sales are classified as financial liabilities at fair value through profit or loss.

Recognition, derecognition and measurement Purchases and sales of investments and derivatives are accounted for on the trade date basis. Investments and derivatives are initially recognized at fair value and are subsequently re-measured at fair value. Realized and unrealized gains and losses on investments and derivatives are recognized in the Statement of Comprehensive Income. Investments and derivatives are derecognized when the rights to receive cash flows from the investments and derivatives have expired or the Fund has transferred substantially all risks and rewards of ownership.

Fair value estimation Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and liabilities traded in active markets are based on last traded prices. Prior to 1 October 2012, investments that are listed or traded on an exchange and investments with prices quoted in over-thecounter markets or by market makers, are fair valued based on quoted "bid" prices on long investments and quoted "ask" prices on investments sold short. The Fund early adopted Hong Kong Financial Reporting Standard 13, "Fair Value Measurement", with effect from 1 October 2012, it changed its fair valuation input to utilize the last traded market price for both financial assets and financial liabilities where the last traded price falls within the bid-ask spread. When trading in the securities of an investee company is suspended, the investment is valued at the Manager's estimate of its fair value. Debt securities are fair valued based on quoted prices inclusive of accrued interest. -5-

JPMORGAN ASIA ABSOLUTE RETURN FUND

Semi--annual report for the period ended 31 March 2014

Investments in collective investment schemes are stated at fair value based on the net asset value per unit of the respective funds as determined by the administrators of the relevant funds or stated at last traded prices if the collective investment schemes are listed or traded on an exchange. Open future and swap contracts are valued at last traded prices for both long and short positions at the valuation date. The differences between the last traded prices and the contract prices are recognized in the Statement of Comprehensive Income. Open option contracts are valued at last traded prices for both long and short positions at the valuation date. The differences between the last traded prices and the premium amounts/contract prices are recognized in the Statement of Comprehensive Income. Forward foreign exchange contracts are valued at the forward rates ruling at the valuation date. The differences between the forward rates and the contract rates are recognized in the Statement of Comprehensive Income. (c) Securities lending and borrowing Securities lenders' agreements are entered into with institutions of appropriate financial standing who engage in such arrangements acceptable to the Trustee and on arm's length commercial terms. Securities lent are included in the investment portfolio of the Fund. Relevant securities lending income entitled by the Fund is accounted for in the Statement of Comprehensive Income. Collateral received for the purpose of securities lent generally consist of non-cash collateral which are off-balance sheet transactions and are therefore not included in the financial statements. The Fund may enter into securities borrowing arrangements for short sale purposes. Short positions represent obligations to deliver securities sold but not yet purchased, and are accounted for as investments and valued at their fair value. Securities borrowed during the period/year are off-balance sheet transactions and are therefore not included in the investment portfolio of the Fund. Collateral placed for the purpose of securities borrowed generally consist of cash collateral and are included in the Statement of Financial Position separately. (d) Foreign currency translation

Functional and presentation currency The Fund has adopted United States dollar as its functional and presentation currency.

Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of assets and liabilities denominated in foreign currencies at period/year end exchange rates are recognized in the Statement of Comprehensive Income. Foreign exchange gains and losses relating to cash and cash equivalents are presented in the Statement of Comprehensive Income within "Net foreign currency exchange gains/losses". Foreign exchange gains and losses relating to the financial assets and liabilities carried at fair value through profit or loss are presented in the Statement of Comprehensive Income within "Net gains/losses on investments and derivatives". (e) Proceeds and payments on allotment and redemption of units The net asset value per unit is computed for each dealing day. The price at which units are allotted or redeemed is calculated by reference to the net asset value per unit as at the close of business on the relevant dealing day in accordance with the provisions of the Fund's Trust Deed dated 6 September 1989, as amended, which may be different from the accounting policies stated in the financial statements. Units of the Fund are redeemable at the option of the holders of redeemable units and are classified as a financial liability in the Statement of Financial Position which represents the net assets attributable to holders of redeemable units (or "net asset value" or "net assets" or "NAV") and is carried at the redemption amount that would be payable at the Statement of Financial Position date if the holders of redeemable units exercised the right to redeem units of the Fund.

-6-

Semi--annual report for the period ended 31 March 2014

JPMORGAN ASIA ABSOLUTE RETURN FUND 3

Number of units in issue and net assets attributable to holders of redeemable units (per unit) 31.3.2014

Number of units in issue:

Net assets attributable to holders of redeemable units

Net assets attributable to holders of redeemable units (per unit)

Number of units in issue:

Net assets attributable to holders of redeemable units

Net assets attributable to holders of redeemable units (per unit)

Class A Units

Class 1010 Units

Class 1104 Units

Class 1305 Units

Class 1308 Units

911,599.165 őőőőőőőőőőő

120,925.705 őőőőőőőőőőő

55,510.483 őőőőőőőőőőő

33,897.625 őőőőőőőőőőő

900,000.000 őőőőőőőőőőő

US$

US$

US$

US$

US$

59,092,368 őőőőőőőőőőő

1,170,613 őőőőőőőőőőő

544,488 őőőőőőőőőőő

330,288 őőőőőőőőőőő

8,808,374 őőőőőőőőőőő

64.82 őőőőőőőőőőő

9.68 őőőőőőőőőőő

9.81 őőőőőőőőőőő

9.74 őőőőőőőőőőő

9.79 őőőőőőőőőőő

Class 1310 Units

Class 1311 Units

Class 1312 Units

Class 1401 Units

5,154.706 őőőőőőőőőőő

18,000.000 őőőőőőőőőőő

15,000.000 őőőőőőőőőőő

22,800.000 őőőőőőőőőőő

US$

US$

US$

US$

50,623 őőőőőőőőőőő

177,333 őőőőőőőőőőő

146,066 őőőőőőőőőőő

227,070 őőőőőőőőőőő

9.82 őőőőőőőőőőő

9.85 őőőőőőőőőőő

9.74 őőőőőőőőőőő

9.96 őőőőőőőőőőő

Class A Units

Class 1009 Units

Class 1010 Units

Class 1011 Units

Class 1012 Units

1,012,545.906 őőőőőőőőőőő

93,005.107 őőőőőőőőőőő

126,063.917 őőőőőőőőőőő

47,327.224 őőőőőőőőőőő

15,000.000 őőőőőőőőőőő

US$

US$

US$

US$

US$

66,868,796 őőőőőőőőőőő

930,640 őőőőőőőőőőő

1,243,275 őőőőőőőőőőő

476,156 őőőőőőőőőőő

150,075 őőőőőőőőőőő

66.04 őőőőőőőőőőő

10.01 őőőőőőőőőőő

9.86 őőőőőőőőőőő

10.06 őőőőőőőőőőő

10.01 őőőőőőőőőőő

30.9.2013

Number of units in issue:

Net assets attributable to holders of redeemable units

Net assets attributable to holders of redeemable units (per unit)

-7-

Semi--annual report for the period ended 31 March 2014

JPMORGAN ASIA ABSOLUTE RETURN FUND

Number of units in issue:

Net assets attributable to holders of redeemable units

Net assets attributable to holders of redeemable units (per unit)

Number of units in issue:

Net assets attributable to holders of redeemable units

Net assets attributable to holders of redeemable units (per unit)

Number of units in issue:

Net assets attributable to holders of redeemable units

Net assets attributable to holders of redeemable units (per unit)

Class 1101 Units

Class 1102 Units

Class 1103 Units

Class 1104 Units

Class 1105 Units

89,009.806 őőőőőőőőőőő

122,083.913 őőőőőőőőőőő

23,766.480 őőőőőőőőőőő

80,386.105 őőőőőőőőőőő

15,000.000 őőőőőőőőőőő

US$

US$

US$

US$

US$

908,350 őőőőőőőőőőő

1,251,817 őőőőőőőőőőő

239,927 őőőőőőőőőőő

803,296 őőőőőőőőőőő

151,071 őőőőőőőőőőő

10.21 őőőőőőőőőőő

10.25 őőőőőőőőőőő

10.10 őőőőőőőőőőő

9.99 őőőőőőőőőőő

10.07 őőőőőőőőőőő

Class 1106 Units

Class 1108 Units

Class 1110 Units

Class 1202 Units

Class 1209 Units

15,891.089 őőőőőőőőőőő

5,053.602 őőőőőőőőőőő

46,062.929 őőőőőőőőőőő

8,729.176 őőőőőőőőőőő

5,000.000 őőőőőőőőőőő

US$

US$

US$

US$

US$

162,484 őőőőőőőőőőő

52,714 őőőőőőőőőőő

505,852 őőőőőőőőőőő

92,382 őőőőőőőőőőő

52,984 őőőőőőőőőőő

10.22 őőőőőőőőőőő

10.43 őőőőőőőőőőő

10.98 őőőőőőőőőőő

10.58 őőőőőőőőőőő

10.60 őőőőőőőőőőő

Class 1210 Units

Class 1211 Units

Class 1302 Units

Class 1304 Units

Class 1305 Units

6,451.030 őőőőőőőőőőő

10,332.166 őőőőőőőőőőő

61,212.500 őőőőőőőőőőő

84,539.750 őőőőőőőőőőő

33,897.625 őőőőőőőőőőő

US$

US$

US$

US$

US$

68,111 őőőőőőőőőőő

107,772 őőőőőőőőőőő

635,228 őőőőőőőőőőő

877,053 őőőőőőőőőőő

336,492 őőőőőőőőőőő

10.56 őőőőőőőőőőő

10.43 őőőőőőőőőőő

10.38 őőőőőőőőőőő

10.37 őőőőőőőőőőő

9.93 őőőőőőőőőőő

-8-

JPMORGAN ASIA ABSOLUTE RETURN FUND

Number of units in issue:

Net assets attributable to holders of redeemable units

Net assets attributable to holders of redeemable units (per unit)

4

Class 1306 Units

Class 1308 Units

10,600.000 őőőőőőőőőőő

900,000.000 őőőőőőőőőőő

US$

US$

106,253 őőőőőőőőőőő

8,973,817 őőőőőőőőőőő

10.02 őőőőőőőőőőő

9.97 őőőőőőőőőőő

Net (losses)/gains on investments and derivatives

Change in unrealized gains/losses in value of investments and derivatives Realized gains on sale of investments and derivatives

5

Semi--annual report for the period ended 31 March 2014

1.10.2013 to 31.3.2014 US$

1.10.2012 to 31.3.2013 US$

(1,244,042) 444,950 ņņņņņņņņņņņņ (799,092) őőőőőőőőőőőő

(786,004) 3,424,134 ņņņņņņņņņņņņ 2,638,130 őőőőőőőőőőőő

Soft commission arrangements The Investment Manager has entered into soft commission arrangements with brokers under which certain goods and services used to support investment decision making are received by the Investment Manager. The Investment Manager does not make direct payment for these services but transacts an agreed amount of business with the brokers on behalf of the Fund. Commission is paid from the Fund on these transactions. The goods and services must be of demonstrable benefit to the Fund and may include research and advisory services; economic and political analysis; portfolio analysis, including valuation and performance measurement; market analysis, data and quotation services, computer hardware and software incidental to the above goods and services; clearing and custodian services and investment-related publications.

6

Distribution No distribution was made during the period (31 March 2013: nil).

-9-

Semi--annual report for the period ended 31 March 2014

JPMORGAN ASIA ABSOLUTE RETURN FUND Investment Portfolio As at 31 March 2014 (Unaudited)

Holding

Fair value US$

% of net assets

2,000,000 2,800,000 200,000 300,000 400,000 386,000 1,500,000 400,000 2,000,000 120,000 5,000

871,465 1,960,024 469,251 777,357 877,653 653,862 694,207 601,260 1,229,849 994,708 497,900

1.2 2.8 0.7 1.1 1.2 0.9 1.0 0.9 1.7 1.4 0.7

Hong Kong (9.5%) BOC Hong Kong (Hldgs) Galaxy Entertainment Group HSBC Hldgs-HK List Jardine Strategic Hldgs (CDP) Lippo Ltd MGM China Hldgs MTR Corp New World Dev Rts (07-14/04/14) New World Development Sands China Wheelock & Co

500,000 50,000 70,231 30,000 500,000 100,000 200,000 200,000 600,000 80,000 100,000

1,424,511 434,766 711,178 1,075,800 310,685 352,582 739,972 41,253 603,322 597,650 390,612

2.0 0.6 1.0 1.5 0.4 0.5 1.1 0.1 0.9 0.8 0.6

India (1.3%) Bharat Heavy Electricals Mahindra & Mahindra Fin Services

150,000 100,000

492,402 421,952

0.7 0.6

Japan (6.2%) Hino Motors Hoya Corp Isuzu Motors JFE Hldgs Kubota Corp Mitsubishi Estate Mitsubishi UFJ Financial Group Mitsui & Co Mitsui Fudosan NGK Spark Plug Nippon Steel & Sumitomo Metal Sekisui House Sumitomo Mitsui Financial Grp Sumitomo Realty & Development Tokio Marine Hldgs

25,000 (50,000) 130,000 30,000 40,000 25,000 200,000 (50,000) 13,000 (30,000) 200,000 40,000 30,000 10,000 10,000

371,656 (1,559,936) 748,556 566,005 530,951 593,776 1,101,131 (708,356) 397,504 (675,827) 547,653 497,548 1,284,362 392,484 300,821

0.5 (2.2) 1.1 0.8 0.7 0.8 1.6 (1.0) 0.6 (1.0) 0.8 0.7 1.8 0.6 0.4

Korea (8.7%) CJ O Shopping Co GS Hldgs Hyundai Heavy Industries Hyundai Motor KB Financial Group POSCO ADR Samsung Electronics Samsung Fire & Marine Insurance

1,000 10,000 2,500 2,000 15,000 10,000 1,500 2,000

342,242 452,816 495,561 471,605 524,919 694,100 1,892,528 449,998

0.5 0.6 0.7 0.7 0.8 1.0 2.7 0.6

Listed/Quoted Investments (86.7%) (I) Equities (41.6%) China (13.6%) Agricultural Bank of China 'H' China Construction Bank 'H' China Oilfield Services 'H' China Overseas Land & Investment China Resources Land China State Construction Intl China Telecom 'H' CNOOC Ltd Ind & Comm Bank of China 'H' Ping An Insurance (Group) 'H' Qihoo 360 Technologies ADR

- 10 -

Semi--annual report for the period ended 31 March 2014

JPMORGAN ASIA ABSOLUTE RETURN FUND Investment Portfolio (Continued) As at 31 March 2014 (Unaudited)

Holding

Fair value US$

% of net assets

Korea (Continued) SK Innovation SK Telecom ADR

3,000 20,000

343,840 451,400

0.5 0.6

Singapore (0.9%) DBS Group Hldgs

50,000

642,917

0.9

Thailand (1.4%) Bangkok Bank (F) PTT Public Co (F)

100,000 50,000

553,329 460,851 ņņņņņņņņņ 29,388,655 ---------

0.8 0.6 ņņņņ 41.6 ----

Cayman Islands (18.6%) Country Garden 11.125% 23/2/18-RegS Country Garden 7.25% 04/04/21-RegS Longfor Prop 6.875% 18/10/19-RegS New World China Land 8.5% 11/04/15 Shimao Property 9.65% 3/08/17-RegS

USD2,000,000 USD2,000,000 USD3,000,000 CNY21,450,000 USD2,000,000

2,199,104 1,947,594 3,097,708 3,745,572 2,157,831

3.1 2.8 4.4 5.3 3.0

China (0.9%) Bank of China 3.3% 04/03/16 (RegS)

CNY4,000,000

646,962

0.9

Hong Kong (13.7%) Cosco Pacific Fin 4.375% 31/01/23 Sino-Ocean Land VRN 10.25%Perp-RegS

USD6,000,000 USD4,000,000

5,291,650 4,348,306

7.5 6.2

Singapore (2.9%) Olam Intl 5.75% 20/09/17

USD2,000,000

2,046,533

2.9

Virgin Islands (8.9%) Fita Intl 7% 10/02/20 Joyous Glory Grp 5.7% 07/03/20 Poly Real Est Fin 4.5% 6/8/18-RegS

USD2,000,000 USD2,000,000 USD2,000,000

2,222,122 2,037,717 1,977,215 ņņņņņņņņņ 31,718,314 ---------

3.2 2.9 2.8 ņņņņ 45.0 ----

(59,941)

(0.1)

(82,332) (52,049) 88,362 (78,984) (33,128) (42,000) (16,220) 313,516 ņņņņņņņņņ 37,224 ---------

(0.1) (0.1) 0.1 (0.1) (0.0) (0.1) (0.0) 0.5 ņņņņ 0.1 ----

(II) Debt Securities (45.0%)

(III) Derivatives (0.1%) Forward foreign exchange contracts (-0.1%) Futures (0.2%) HSCEI (HFE) Fut 04/14 HSI (HFE) Fut 04/14 JGB 10Yr Bond (OSE) Fut 06/14 KOSPI 200 (KFE) Fut 06/14 MSCI Sing Idx (SGX) Fut 04/14 MSCI Taiwan Idx (SGX) Fut 04/14 Share Price Idx 200 (SFE) Fut 06/14 US 10Yr Note (CBT) Fut 06/14

(60) (40) (35) (30) (60) (100) (20) (280)

Total Listed/Quoted Investments

61,144,193

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86.7

Semi--annual report for the period ended 31 March 2014

JPMORGAN ASIA ABSOLUTE RETURN FUND Investment Portfolio (Continued) As at 31 March 2014 (Unaudited)

Fair value US$

% of net assets

2,999,523 3,220,977

4.2 4.6

Other net assets

3,182,530 ņņņņņņņņņ

4.5 ņņņņ

Net assets attributable to holders of redeemable units at 31 March 2014

70,547,223 őőőőőőőőő

100.0 őőőő

Total investments, at cost less proceeds on short positions

63,253,741 őőőőőőőőő

Holding Cash at banks Short term deposits

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JPMORGAN ASIA ABSOLUTE RETURN FUND

Semi--annual report for the period ended 31 March 2014

Statement of Movements in Portfolio Holdings For the period ended 31 March 2014 (Unaudited) % holdings of net assets 31.3.2014

30.9.2013

13.6 9.5 8.7 6.2 1.4 1.3 0.9 -

11.1 8.5 11.4 6.0 2.4 1.2 0.7

18.6 13.7 8.9 2.9 0.9

19.1 11.5 8.1 -

0.2 (0.1) ņņņņ 86.7

(0.9) (0.5) ņņņņ 78.6

Listed/Quoted Investments Equities China Hong Kong Korea Japan Thailand India Singapore Taiwan Debt Securities Cayman Islands Hong Kong Virgin Islands Singapore China Derivatives Futures Forward foreign exchange contracts Total Listed/Quoted Investments Cash at banks

4.2

0.1

Short term deposits

4.6

11.6

-

(2.1)

Other net assets

4.5 ņņņņ

11.8 ņņņņ

Net assets attributable to holders of redeemable units

100.0 őőőő

100.0 őőőő

Short term bank loans - unsecured

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AAR(148x210)C1_4.ai

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16/05/2014

4:39 PM

www.jpmorganam.com.hk