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JF FundsAudited Annual Reports30 September 2010

These reports do not constitute an offer of units in any funds forming the subject matter of this document. Subscriptions are only valid if made on the basis of the current explanatory memoranda (or equivalent), supplemented by the most recent financial reports.

Approved for issue in the UK to Professional Investors only by JPMorgan Asset Management Marketing Limited, Registered in England No. 288553, Registered Office 125 London Wall, London EC2Y 5AJ, which is authorised and regulated by the Financial Services Authority. JPMorgan Asset Management Marketing Limited also provides information on JF Funds. UK Investors should note that these products are unregulated collective investment schemes within the meaning of the UK Financial Services and Markets Act 2000. The normal protections provided by the UK regulatory system do not apply and compensation under the Financial Services Compensation Scheme is not available. There is no right to cancel an agreement to purchase units in the funds under the Rules of the Financial Services Authority.

Although JPMorgan Asset Management (Europe) S. r.l., under certain administrative services agreements, provides services to the funds covered in this document, the funds are not subject to the laws of Luxembourg nor are they subject to supervision by any supervisory authority in Luxembourg.

CONTENTS Page

Asia Pacific Regional Equity Funds

JF ASEAN Fund .............................................................................................................................................................................. 1JF Asia Domestic Opportunities Fund .......................................................................................................................................... 17JF Asia New Frontiers Fund .......................................................................................................................................................... 33JF Asia Property Fund ................................................................................................................................................................... 49JF AsiaOne Fund ............................................................................................................................................................................ 65JF Eastern Fund ............................................................................................................................................................................. 81JF Eastern Smaller Companies Fund ............................................................................................................................................ 97JF Five Elements Fund .................................................................................................................................................................. 115JF Pacific Securities Fund.............................................................................................................................................................. 132JF Pacific Smaller Companies Fund .............................................................................................................................................. 151JF Pacific Technology Fund ........................................................................................................................................................... 170

Asia Pacific Single Country Equity Funds

JF Australia Fund ........................................................................................................................................................................... 186JF China New Generation Fund .................................................................................................................................................... 202JF China Pioneer A-Share Fund ................................................................................................................................................... 221JF India Fund ................................................................................................................................................................................. 240JF India Smaller Companies Fund ................................................................................................................................................ 257JF Indonesia Fund ........................................................................................................................................................................ 274JF Korea Fund ................................................................................................................................................................................ 290JF Malaysia Fund ........................................................................................................................................................................... 309JF Philippine Fund ......................................................................................................................................................................... 325JF Thailand Fund ........................................................................................................................................................................... 341JF Vietnam Opportunities Fund ................................................................................................................................................... 357

Japan Equity Funds

JF Japan (Yen) Fund....................................................................................................................................................................... 374JF Japan OTC Fund ......................................................................................................................................................................... 390JF Japan Smaller Company (Yen) Fund ........................................................................................................................................ 407JF Japan Technology Fund ............................................................................................................................................................ 423

Global Equity Funds

JPM Evergreen Fund ...................................................................................................................................................................... 439JPM Global Property Income Fund ............................................................................................................................................... 454

Bond and Currency Funds

JF Asian Total Return Bond Fund ................................................................................................................................................. 473JF Money Fund - HK$ .................................................................................................................................................................... 495JPM Global Bond and Currency Fund ........................................................................................................................................... 510

Ultra Series

JF Ultra Japan Fund ...................................................................................................................................................................... 532JF Ultra Korea Fund ....................................................................................................................................................................... 550JPM Ultra Global Emerging Markets Fund .................................................................................................................................. 569

JF ASEAN FUNDJF ASEAN FUNDJF ASEAN FUNDJF ASEAN FUND Annual report for theAnnual report for theAnnual report for theAnnual report for the

year ended 30 September 2010year ended 30 September 2010year ended 30 September 2010year ended 30 September 2010

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Investment PortfolioInvestment PortfolioInvestment PortfolioInvestment Portfolio As at 30 September 2010As at 30 September 2010As at 30 September 2010As at 30 September 2010 (Unaudited)(Unaudited)(Unaudited)(Unaudited)

HoldingHoldingHoldingHolding

FairFairFairFair valuevaluevaluevalue

US$US$US$US$

% of% of% of% of netnetnetnet

assetsassetsassetsassets Listed/Quoted InvestmentsListed/Quoted InvestmentsListed/Quoted InvestmentsListed/Quoted Investments (94.0%) EquitiesEquitiesEquitiesEquities (94.0%) IndonesiaIndonesiaIndonesiaIndonesia (17.0%) Aneka Tambang 40,000,000 10,532,213 0.5 Astra Intl 7,720,000 49,044,704 2.3 Bank Danamon Indonesia 33,900,000 22,030,251 1.0 Bank Mandiri 43,000,000 33,243,696 1.6 Bank Rakyat Indonesia 10,500,000 11,647,058 0.5 Bumi Resources 41,000,000 9,647,058 0.5 Gudang Garam 8,219,500 47,521,141 2.2 Indika Energy 45,891,500 16,968,285 0.8 Indo Tambangraya Megah 10,105,000 47,043,444 2.2 Indofood CBP Sukses Makmur (Reg S) 13,406,000 8,103,683 0.4 Perusahaan Gas Negara 67,330,500 28,855,928 1.4 Tambang Batubara Bukit Asam 3,900,000 8,499,159 0.4 Telekomunikasi Indonesia 'B' 27,000,000 27,831,932 1.3 United Tractors 17,600,000 39,932,772 1.9 MalaysiaMalaysiaMalaysiaMalaysia (16.8%) CIMB Group Hldgs 15,860,000 41,974,798 2.0 Gamuda Bhd (CDS) 18,300,000 22,882,410 1.1 Genting Bhd (CDS) 6,600,000 21,123,421 1.0 Genting Malaysia (CDS) 12,000,000 13,177,843 0.6 IJM Corp (CDS) 15,300,000 25,524,781 1.2 IOI Corp (CDS) 13,888,400 24,609,507 1.2 Kuala Lumpur Kepong (CDS) 3,900,000 21,350,826 1.0 Lafarge Malayan Cement (CDS) 8,417,800 21,514,882 1.0 Malayan Banking (CDS) 10,300,400 29,329,613 1.4 Malaysian Resources Corp (CDS) 10,000,000 6,802,721 0.3 MISC Bhd 1,441,200 4,080,365 0.2 MMC Corp (CDS) 9,467,600 9,170,108 0.4 Parkson Hldgs (CDS) 7,120,984 13,263,900 0.6 Public Bank (L) (CDS) 7,561,800 30,717,516 1.5 Tenaga Nasional (CDS) 18,095,300 51,700,857 2.5 UEM Land Hldgs 23,572,800 17,639,510 0.8 PhilippinesPhilippinesPhilippinesPhilippines (1.0%) Intl Container Terminal

Services 17,000,000 14,720,292 0.7 Megaworld Corp 140,000,000 7,082,147 0.3 SingaporeSingaporeSingaporeSingapore (38.8%) Cache Logistics 32,538,000 24,118,714 1.1 CapitaLand Ltd 15,620,000 48,094,424 2.3 CapitaMall Trust 9,850,000 16,100,277 0.8 CapitaMalls Asia 6,200,000 10,181,321 0.5 Cosco Corp (Singapore) 6,200,000 8,343,027 0.4 DBS Group Hldgs (CDP) 9,105,430 97,467,940 4.6 Ezra Hldgs 12,000,000 15,691,641 0.7 Ezra Hldgs Rts (22-30/09/10) 2,400,000 957,920 0.0 Fibrechem Technologies 27,671,000 0 0.0 Fraser & Neave (CDP) 4,300,000 21,183,715 1.0 Genting Singapore 28,325,000 40,053,598 1.9 Golden Agri-Resources 13,500,000 5,798,837 0.3 Guocoland Ltd (CDP) 6,000,000 10,719,580 0.5

(Continued)



US$US$US$US$


assetsassetsassetsassets Hotel Properties 5,200,000 10,911,164 0.5 Indofood Agri Resources 6,600,000 11,339,948 0.5 Keppel Corp (CDP) 4,855,000 33,145,475 1.6 Keppel Land 4,894,658 15,070,791 0.7 Midas Hldgs (SG Listing) 2,960,000 2,227,848 0.1 Neptune Orient Lines (CDP) 34,481,000 51,904,345 2.5 Noble Group (CDP) 26,400,090 37,733,051 1.8 Oversea-Chinese Bkg (CDP) 9,900,823 66,615,185 3.1 Singapore Airlines (CDP) 5,935,000 73,637,587 3.5 Singapore Exchange 6,000,000 41,099,327 1.9 Singapore Telecom (CDP) 17,900,000 42,730,832 2.0 Straits Asia Resources 12,100,000 20,145,969 1.0 Tiger Airways Hldgs 6,677,000 10,253,955 0.5 United Overseas Bank (CDP) 4,770,878 66,448,082 3.1 Wilmar Intl 6,965,000 31,823,963 1.5 Yangzijiang Shipbuilding Hldgs 6,300,000 8,381,800 0.4 ThailandThailandThailandThailand (20.4%) Amata Corp (F) 25,700,000 13,633,278 0.6 Banpu Public Co (F) 1,293,000 30,588,929 1.4 Charoen Pokphand Foods (F) 25,315,500 20,852,965 1.0 Kasikornbank Public Co NVDR 5,445,000 20,900,906 1.0 Krung Thai Bank (F) 78,600,000 43,767,381 2.1 PTT Aromatics & Refining (F) 28,300,000 25,642,504 1.2 PTT Chemical (F) 3,910,000 17,392,092 0.8 PTT Exploration & Production (F) 2,105,000 10,646,376 0.5 PTT Exploration & Production NVDR 2,165,000 10,949,835 0.5 PTT Public Co (F) 4,725,000 46,082,372 2.2 Siam Cement NVDR 5,760,000 63,198,682 3.0 Siam Commercial Bank (F) 6,600,000 22,398,682 1.1 Somboon Advance

Technology (F) 10,938,900 8,217,691 0.4 Sri Trang Agro-Industry (F) 15,127,600 10,766,266 0.5 Thai Airways Intl (F) 26,729,184 36,548,967 1.7 Thai Oil (F) 22,264,600 38,513,723 1.8 Tipco Asphalt (F) 4,361,151 9,735,354 0.5 Tipco Asphalt NVDR 956,849 2,135,964 0.1 Total Listed/Quoted InvestmentsTotal Listed/Quoted InvestmentsTotal Listed/Quoted InvestmentsTotal Listed/Quoted Investments 1,991,719,104 94.0 Other net assetsOther net assetsOther net assetsOther net assets 127,116,599 6.0 Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders of of of of

redeemable unitsredeemable unitsredeemable unitsredeemable units at 30 September 2010at 30 September 2010at 30 September 2010at 30 September 2010 2,118,835,703 100.0 Total investments, at costTotal investments, at costTotal investments, at costTotal investments, at cost 1,536,730,482



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Statement of Movements in Portfolio HoldingsStatement of Movements in Portfolio HoldingsStatement of Movements in Portfolio HoldingsStatement of Movements in Portfolio Holdings For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010 (Unaudited)(Unaudited)(Unaudited)(Unaudited) % holdings% holdings% holdings% holdings

of net assetsof net assetsof net assetsof net assets 2010201020102010 2009200920092009 Listed/Quoted InvestmentsListed/Quoted InvestmentsListed/Quoted InvestmentsListed/Quoted Investments EquitiesEquitiesEquitiesEquities Singapore 38.8 47.2 Thailand 20.4 16.7 Indonesia 17.0 13.8 Malaysia 16.8 11.8 Philippines 1.0 0.8 Total Listed/Quoted InvestmentsTotal Listed/Quoted InvestmentsTotal Listed/Quoted InvestmentsTotal Listed/Quoted Investments 94.0 90.3 Other net assetsOther net assetsOther net assetsOther net assets 6.0 9.7 Net assets attributableNet assets attributableNet assets attributableNet assets attributable to holders of to holders of to holders of to holders of

redeemable units at 30 Septemberredeemable units at 30 Septemberredeemable units at 30 Septemberredeemable units at 30 September 100.0 100.0



The notes on pages 5 to 14 form part of these financial statements.

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Statement of Financial PositionStatement of Financial PositionStatement of Financial PositionStatement of Financial Position As at 30 September 2010As at 30 September 2010As at 30 September 2010As at 30 September 2010 As at 30 SeptemberAs at 30 SeptemberAs at 30 SeptemberAs at 30 September As at 1 OctoberAs at 1 OctoberAs at 1 OctoberAs at 1 October 2010201020102010 2009200920092009 2008200820082008 (Restated)(Restated)(Restated)(Restated) (Restated)(Restated)(Restated)(Restated) US$US$US$US$ US$US$US$US$ US$US$US$US$ AssetsAssetsAssetsAssets Cash at banks 15,673,226 149,121,298 117,270,177 Short term deposits 18,500,000 - - Amounts due from

brokers 80,488,390 14,244,381 10,652,451 Amounts receivable

on allotment 47,724,171 14,502,917 8,339,544 Margin deposits - - 1,568,374 Investments [Note

4(I)(a)] 1,991,719,104 1,602,521,369 1,427,916,189 Dividend and other

accounts receivable 11,377,918 6,802,577 8,286,754

Total assetsTotal assetsTotal assetsTotal assets 2,165,482,809 1,787,192,542 1,574,033,489 ------------------ ------------------ ------------------ LiabilitiesLiabilitiesLiabilitiesLiabilities Amounts due to

brokers 18,998,638 3,008,959 5,598,753 Amounts payable on

redemption 24,702,303 6,387,600 12,446,194 Distribution payable [Note 10] - - 12,067,472 Derivatives [Note 4(I)(a)] - - 169,546 Other accounts

payable 2,946,165 2,431,535 2,615,978 Total liabilitiesTotal liabilitiesTotal liabilitiesTotal liabilities 46,647,106 11,828,094 32,897,943 ------------------ ----------------- ----------------- Net assets Net assets Net assets Net assets

attributable to attributable to attributable to attributable to holders of holders of holders of holders of redeemable units redeemable units redeemable units redeemable units [Note 3] 2,118,835,703 1,775,364,448 1,541,135,546

EquityEquityEquityEquity 2,118,835,703 1,775,364,448 1,541,135,546 Approved by the Trustee and the Manager on 11 January 2011 Signed By: Bank of East Asia (Trustees) Limited, Trustee

JPMorgan Funds (Asia) Limited, Manager

Statement of Comprehensive IncomeStatement of Comprehensive IncomeStatement of Comprehensive IncomeStatement of Comprehensive Income For the year ended 3For the year ended 3For the year ended 3For the year ended 30 September 20100 September 20100 September 20100 September 2010 2010201020102010 2009200920092009 US$US$US$US$ US$US$US$US$ IncomeIncomeIncomeIncome Net gains on investments and

derivatives [Note 5] 579,596,315 220,111,498 Dividend income 50,398,987 43,083,718 Net foreign currency exchange

gains/(losses) 384,952 (4,844,214) Interest on deposits 60,949 210,038 Other income 16,920 691,001 630,458,123 259,252,041 ------------------ ------------------ ExpensesExpensesExpensesExpenses Management fee [Note 7(e)] 28,181,496 18,155,908 Transaction costs 9,721,081 7,881,802 Registrar's fee [Note 7(h)] 654,007 688,920 Safe custody and bank charges 538,856 411,898 Trustee's fee [Note 8] 338,178 217,871 Printing and publication expenses 74,829 30,478 Auditor's fee 40,200 38,350 Legal and professional expenses 8,652 3,285 Other operating expenses 6,046 69,218 39,563,345 27,497,730 ------------------ ------------------ Net operating profitNet operating profitNet operating profitNet operating profit 590,894,778 231,754,311 Finance costsFinance costsFinance costsFinance costs Interest paid - (66) Profit before taxationProfit before taxationProfit before taxationProfit before taxation 590,894,778 231,754,245 Taxation [Note 6] (3,903,331) (3,080,531) Increase in net assets Increase in net assets Increase in net assets Increase in net assets

attributable to holders of attributable to holders of attributable to holders of attributable to holders of redeemable units and total redeemable units and total redeemable units and total redeemable units and total comprehensive incomecomprehensive incomecomprehensive incomecomprehensive income 586,991,447 228,673,714




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Statement of Changes in Net Assets Attributable to Holders Statement of Changes in Net Assets Attributable to Holders Statement of Changes in Net Assets Attributable to Holders Statement of Changes in Net Assets Attributable to Holders of Redeemable of Redeemable of Redeemable of Redeemable UnitsUnitsUnitsUnits For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010 2010201020102010 2009200920092009 US$US$US$US$ US$US$US$US$ Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders

of redeemable units at the of redeemable units at the of redeemable units at the of redeemable units at the beginning of the yearbeginning of the yearbeginning of the yearbeginning of the year 1,775,364,448 1,541,135,546

------------------- ------------------- Allotment of redeemable units

[Note 3] 909,092,832 455,332,650 Redemption of redeemable units

[Note 3] (1,152,613,024) (449,777,462) Net (redemption)/allotmentNet (redemption)/allotmentNet (redemption)/allotmentNet (redemption)/allotment (243,520,192) 5,555,188 ------------------ ------------------ 1,531,844,256 1,546,690,734 Increase in net assets Increase in net assets Increase in net assets Increase in net assets


Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders

of redeemable units at the end of redeemable units at the end of redeemable units at the end of redeemable units at the end of the yearof the yearof the yearof the year 2,118,835,703 1,775,364,448

Statement of Cash FlowsStatement of Cash FlowsStatement of Cash FlowsStatement of Cash Flows For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010 2010201020102010 2009200920092009 US$US$US$US$ UUUUS$S$S$S$ Operating activitiesOperating activitiesOperating activitiesOperating activities Purchase of investments and

derivatives (1,911,357,346) (1,678,405,420) Proceeds from disposal of

investments and derivatives 2,050,813,780 1,719,857,928 Dividend received 46,276,157 42,248,070 Interest received 60,887 223,011 Decrease in margin deposits - 1,568,374 Trustee's fee paid (333,269) (220,136) Registrar's fee paid (634,871) (730,188) Tax paid (3,903,331) (3,080,531) Transaction costs paid (9,481,596) (7,860,872) Management fee paid (27,772,435) (18,344,603) Others (660,199) (4,630,406) Net cash inflow from operating Net cash inflow from operating Net cash inflow from operating Net cash inflow from operating

activitiesactivitiesactivitiesactivities 143,007,777 50,625,227 ------------------ ------------------ Financing activitiesFinancing activitiesFinancing activitiesFinancing activities Interest paid - (66) Receipts on allotment of

redeemable units 875,871,578 449,169,277 Payments on redemption of

redeemable units (1,134,298,321) (455,836,056) Distribution paid - (12,067,472) Net cash outflow from Net cash outflow from Net cash outflow from Net cash outflow from

financing activitiesfinancing activitiesfinancing activitiesfinancing activities (258,426,743) (18,734,317) ------------------ ------------------ (Decrease)/increase in cash (Decrease)/increase in cash (Decrease)/increase in cash (Decrease)/increase in cash

and cash equivalentsand cash equivalentsand cash equivalentsand cash equivalents (115,418,966) 31,890,910 Cash and cash equivalents at the

beginning of the year 149,121,298 117,270,177 Exchange gains/(losses) on cash

and cash equivalents 470,894 (39,789) Cash and cash equivalents at Cash and cash equivalents at Cash and cash equivalents at Cash and cash equivalents at

the end of the yearthe end of the yearthe end of the yearthe end of the year 34,173,226 149,121,298 Analysis of balances of cash and cash equivalents:Analysis of balances of cash and cash equivalents:Analysis of balances of cash and cash equivalents:Analysis of balances of cash and cash equivalents: Cash at banks 15,673,226 149,121,298 Short term deposits 18,500,000 - 34,173,226 149,121,298



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Notes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial Statements

1111 The FundThe FundThe FundThe Fund

JF ASEAN Fund (the "Fund") was established under a Trust Deed dated 7 July 1983, as amended, and is governed by the laws of Hong Kong. The Fund is authorized by the Securities and Futures Commission of Hong Kong ("SFC").

The investment objective of the Fund is to enable investors to participate in a managed portfolio consisting primarily of securities with significant assets in, or significant earnings derived from one or more of the countries comprising the Association of South East Asian Nations.

All unitholders' rights with regard to the convening, voting or otherwise acting at any meeting of unitholders are the same. Refer to Note 3.

2222 Summary of principal accounting pSummary of principal accounting pSummary of principal accounting pSummary of principal accounting policiesoliciesoliciesolicies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a)(a)(a)(a) Basis of preparation of financial stateBasis of preparation of financial stateBasis of preparation of financial stateBasis of preparation of financial statementsmentsmentsments

The financial statements of the Fund have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRS"). The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative financial instruments) held at fair value through profit or loss.

The preparation of financial statements in conformity with HKFRS requires the use of certain critical accounting estimates. It also requires the Manager and the Trustee (the "Management") to exercise their judgment in the process of applying the Fund's accounting policies.

Amendments to standards effective from 1 January 2009 and applied from 1 October 2009

Hong Kong Accounting Standard (HKAS) 1 (Revised), "Presentation of Financial Statements". The revised standard prohibits the presentation of items of income and expenses (that is, "non-owner changes in equity") in the statement of changes in equity, requiring "non-owner changes in equity" to be presented separately from owner changes in equity. All non-owner changes in equity are required to be shown in a performance statement, but entities can choose whether to present one performance statement (the Statement of Comprehensive Income) or two statements (the Income Statement and Statement of Comprehensive Income). The Fund has applied HKAS 1 (Revised) from 1 October 2009, and has elected to present solely a Statement of Comprehensive Income. The adoption of this revised standard has not resulted in a significant change to the presentation of the Fund's performance statement, as the Fund has no elements of other comprehensive income.

HKAS 39 (Amendment), "Financial Instruments: Recognition and Measurement". The definition of financial asset or financial liability at fair value through profit or loss as it relates to items that are held for trading was amended. This clarifies that a financial asset or liability that is part of a portfolio of financial instruments managed together with evidence of an actual recent pattern of short-term profit-taking is included in such a portfolio on initial recognition. Adoption does not have a significant impact on the Fund's financial statements.

HKFRS 7 (Amendment), "Financial Instruments: Disclosures". The amendment requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy. The adoption of the amendment results in additional disclosures but does not have an impact on the Fund's financial position or performance.

HKAS 32 (Amendment), "Financial Instruments: Presentation", and HKAS 1 (Amendment), "Presentation of Financial Instruments - Puttable Financial Instruments and Obligations Arising on Liquidation" (effective from 1 January 2009) (the "amendment"). Previously the Fund had classified its net assets attributable to holders of redeemable units ("puttable financial instruments") as liabilities in accordance with HKAS 32, "Financial instruments: Presentation". However, the amendment requires puttable financial instruments that meet the definition of a financial liability to be classified as equity where certain strict criteria are met. Those criteria include: the puttable instruments must entitle the holder to a pro-rata share of net assets; the puttable instruments must be the most subordinated class and that class's features must be identical; there must be no contractual obligations to deliver cash or another financial asset other than the obligation on the issuer to repurchase; and the total expected cash flows from the puttable instrument over its life must be based substantially on the profit or loss of the issuer. Where entities restate or reclassify comparative information, they are required to present a restated Statement of Financial Position as at the beginning of the comparative period, in addition to the current requirement to present Statement of Financial Position at the end of the current period and comparative period.

The amendment has been applied retrospectively. As a result of the adoption of the amendment, the Fund's net assets attributable to holders of redeemable units was reclassified from financial liability to equity. As a result, the Fund's equity as at 30 September 2009 and 1 October 2008 were increased by US$1,775,364,448 and US$1,541,135,546 respectively while the financial liabilities as at 30 September 2009 and 1 October 2008 were decreased by US$1,775,364,448 and US$1,541,135,546 respectively.



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(b)(b)(b)(b) Investments and derivatives Investments and derivatives Investments and derivatives 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

Investments that are listed or traded on an exchange and investments with prices quoted in over-the-counter markets or by market makers, are fair valued based on quoted "bid" prices on long investments and quoted "ask" prices on investments sold short. 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.

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 "bid" prices if the collective investment schemes are listed or traded on an exchange.

Open futures and swap contracts are valued at "bid" prices for long positions and "ask" prices for short positions at the valuation date. The differences between the bid/ask prices and the contract prices are recognized in the Statement of Comprehensive Income.

Open options contracts are valued at "bid" prices for long positions and "ask" prices for short positions at the valuation date. The differences between the bid/ask 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)(c)(c)(c) Securities borrowing Securities borrowing Securities borrowing Securities borrowing

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 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)(d)(d)(d) Offsetting financial instrumentsOffsetting financial instrumentsOffsetting financial instrumentsOffsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

(e)(e)(e)(e) Income and expenseIncome and expenseIncome and expenseIncome and expense

Dividend income is recognized on the ex-dividend date with the corresponding foreign withholding tax recorded as an expense and is accounted for in the Statement of Comprehensive Income.

Interest income on investments is accounted for as part of net gains/losses on investments and derivatives in the Statement of Comprehensive Income.



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Interest income on cash at banks and short term deposits is accounted for in the Statement of Comprehensive Income on an effective interest basis.

Expenses are accounted for in the Statement of Comprehensive Income on an accrual basis.

(f)(f)(f)(f) Foreign currency translationForeign currency translationForeign currency translationForeign 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 year end exchange rates are recognized in the Statement of Comprehensive Income within "Net foreign currency exchange gains/losses".

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".

(g)(g)(g)(g) Cash and cash equivalentsCash and cash equivalentsCash and cash equivalentsCash and cash equivalents

For the purpose of the Statement of Cash Flows, cash and cash equivalents comprise cash at banks and bank deposits with maturity of three months or less from the date of placing the deposits, net of certain short term bank loans which the Fund usually undertakes as overnight bank borrowings.

(h)(h)(h)(h) Margin deposits Margin deposits Margin deposits Margin deposits

Margin deposits with brokers for trading of futures and swap contracts are stated at amortized cost using the effective interest method.

(i)(i)(i)(i) Amounts due from/to brokers Amounts due from/to brokers Amounts due from/to brokers Amounts due from/to brokers

Amounts due from/to brokers represent receivables for investments and derivatives sold and payables for investments and derivatives purchased that have been contracted for but not yet settled by the end of the year.

(j)(j)(j)(j) Proceeds and payments on allotment and redemption of unitsProceeds and payments on allotment and redemption of unitsProceeds and payments on allotment and redemption of unitsProceeds 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 7 July 1983, as amended, which may be different from the accounting policies stated in the financial statements.



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3333 Number of units in issue and net assets attributable to holders of redeemable units (per unit)Number of units in issue and net assets attributable to holders of redeemable units (per unit)Number of units in issue and net assets attributable to holders of redeemable units (per unit)Number of units in issue and net assets attributable to holders of redeemable units (per unit)

Number of units in issue

2010 2009 Units Units Number of units in issue: At the beginning of the year 25,325,327.327 25,649,994.214 Total allotments 11,341,031.505 8,705,101.263Total redemptions (14,337,294.179) (9,029,768.150) At the end of the year 22,329,064.653 25,325,327.327 US$ US$ Net assets attributable to holders of redeemable units 2,118,835,703 1,775,364,448 Net assets attributable to holders of redeemable units (per unit) 94.89 70.10

As at 30 September 2010, the Fund had US$2,118,835,703 (2009: US$1,775,364,448) of puttable financial instruments, represented by the net assets attributable to the holders of redeemable units (or "net asset value", "net assets" or "NAV"), classified as equity.

The Fund's policies for managing its obligations for the holders of redeemable units of the Fund are included in Note 4(II) capital risk management.

Units of the Fund are redeemable at the option of the holders of redeemable units. Based on historical levels of activity, the Fund on average has outflows relating to the redemption of units of US$4,723,824 on each dealing day.

4444 Financial risk managementFinancial risk managementFinancial risk managementFinancial risk management

(I)(I)(I)(I) Financial risk factorsFinancial risk factorsFinancial risk factorsFinancial risk factors

The Fund's activities expose it to a variety of financial risks: market risk (including market price risk, interest rate risk and currency risk), credit risk and liquidity risk.

(a)(a)(a)(a) Market riskMarket riskMarket riskMarket risk

(i)(i)(i)(i) Market price risk Market price risk Market price risk Market price risk

The Fund's investments and derivatives are subject to the market price risk inherent in all investments and derivatives i.e. the value of holdings may fall as well as rise. The Fund's market risk is managed through (i) deliberate stocks selection, and (ii) diversification of the investment portfolio in accordance with specific investment restrictions and guidelines.

The Investment Manager monitors the Fund's market price sensitivity primarily through the Beta of the Fund on a regular basis. Beta measures the statistical relationship between the return of the Fund and the relevant benchmark index chosen by the Investment Manager.



- 9 -

As at 30 September, the fair value of investments and derivatives and its estimated market sensitivity were as follows:

2010 2009

Listed/Quoted Investments

Fair value of investments

US$

% of net

assets

Fair value of investments

US$

% of net

assets Assets Equities - Singapore 822,180,316 38.8 837,677,592 47.2 - Thailand 431,971,967 20.4 297,054,695 16.7 - Indonesia 360,901,324 17.0 244,334,828 13.8 - Malaysia 354,863,058 16.8 209,498,999 11.8 - Others 21,802,439 1.0 13,955,255 0.8 Total Listed/Quoted Investments 1,991,719,104 94.0 1,602,521,369 90.3

Net asset value

US$

Relevantbenchmark index

for the Fund(Note*)

Beta(Note**)

% of reasonablepossible change of

the relevantbenchmark index

(Note***)

Estimatedimpact on net

asset value(Note****)

US$

As at 30 September 2010 2,118,835,703MSCI South East

Asia Net 1.17 +19.5 483,412,366

As at 30 September 2009 1,775,364,448MSCI South East

Asia Net 1.19 +20.8 439,438,208

If the relevant benchmark index return was to move in the opposite direction, this would result in an opposite movement in the net asset value of the Fund by the same amount.

Note:

* Relevant benchmark index for the Fund represents the relevant market index used by the Investment Manager in monitoring the market price risk of the Fund.

** Beta measures the statistical relationship between the return of the Fund and the respective benchmark index over the maximum of past 36 months, or the number of months since portfolio inception. For funds launched within a period of less than 12 months, weekly returns of the Fund are used for calculating the Beta.

*** % of reasonable possible change is based on the actual historical change in the benchmark index return in the past three months and does not include remote or "worst case" scenarios or "stress tests" nor represent the Investment Manager's forecast of the Fund's future returns.

**** Estimated impact on net asset value of the Fund is calculated by applying the relevant Beta against the net asset value of the Fund multiplied by the % of reasonable possible change of the relevant benchmark index, assuming that all other variables are held constant.

(ii)(ii)(ii)(ii) Interest rate risk Interest rate risk Interest rate risk Interest rate risk

Interest rate risk is the risk that the value of a financial instrument or future cash flow will fluctuate due to changes in market interest rates.



- 10 -

The table below summarizes the Fund's financial assets and liabilities as at 30 September which expose it to the risk associated with the effects of fluctuations in the prevailing levels of market interest rates, categorized by remaining maturity dates.

2010

Less than 1 month 2009

Less than 1 month US$ US$ Cash at banks 15,673,226 149,121,298 Short term deposits 18,500,000 - Total interest sensitivity gap 34,173,226 149,121,298

Any cash and cash equivalents are placed/borrowed at short term market interest rates and the Investment Manager considers that the Fund is not subject to significant amount of risk due to the stable and low fluctuation in the prevailing levels of market interest rates.

(iii)(iii)(iii)(iii) Currency risk Currency risk Currency risk Currency risk

The Fund holds assets and liabilities denominated in a number of currencies. HKFRS 7 considers the foreign exchange exposure relating to non-monetary assets and liabilities to be a component of market price risk not currency risk. The Investment Manager monitors the exposure on all foreign currency denominated assets and liabilities as part of overall market exposures.

The table below summarizes the Fund's exposure to currency risk as at 30 September together with the percentage of reasonable possible change in foreign currencies and the estimated impact on net asset value.

Net currency exposures (Note*) US$

equivalent

% ofreasonable

possiblechange

against US$(Note**)

Estimated impact on net asset

value US$

2010 Hong Kong Dollar 13,494 +0.3 40 Indonesian Rupiah 363,969,640 +1.6 5,823,514 Malaysian Ringgit 371,654,018 +4.9 18,211,047 Philippine Peso 21,802,439 +5.6 1,220,937 Singapore Dollar 837,973,967 +6.1 51,116,412 Thai Baht 437,128,878 +6.7 29,287,635 2,032,542,436 105,659,585 2009 Hong Kong Dollar 3,007 -0.0 (0) Indonesian Rupiah 254,463,233 +5.6 14,249,941 Malaysian Ringgit 211,913,504 +1.6 3,390,616 Philippine Peso 13,955,255 +1.6 223,284 Singapore Dollar 839,426,269 +2.7 22,664,509 Thai Baht 297,054,695 +2.0 5,941,094 1,616,815,963 46,469,444

If the foreign currency fluctuations were to move in the opposite direction, this would result in an opposite movement in the net asset value of the Fund by the same amount, assuming that all other variables are held constant.

Note:

* Net currency exposures on assets and liabilities include both monetary and non-monetary assets and liabilities.

** % of reasonable possible change is based on the actual historical change in the respective currencies against the functional currency of the Fund in the past three months and does not include remote or "worst case" scenarios or "stress tests" nor represent the Investment Manager's forecast of the Fund's future returns.



- 11 -

(b)(b)(b)(b) Credit riskCredit riskCredit riskCredit risk

Credit risk is the risk that a counterparty will not be able to pay amounts in full when due.

As at 30 September, the Fund's maximum exposure to credit risk before any credit enhancements was as follows:

2010 2009 US$ US$ Cash at banks 15,673,226 149,121,298 Short term deposits 18,500,000 - Amounts due from brokers 80,488,390 14,244,381 Amounts receivable on allotment 47,724,171 14,502,917 Dividend and other accounts receivable 11,377,918 6,802,577 173,763,705 184,671,173

All transactions in listed investments are settled on a delivery versus payment basis using approved brokers. The risk of default is considered minimal, as delivery of investments sold is only made when the Fund's custodian bank has received payment. For a purchase, payment is made once the investments have been received by the Fund's custodian bank. The trade will fail if either party fails to meet the obligation.

The table below summarizes the credit rating of the financial assets placed with banks as at 30 September.

2010 2009 Exposure to

Counterparties Exposure to

counterparties US$ US$ Bank balances S&P(AA)/Moody's(Aa)/FITCH(AA) - 149,118,291 S&P(A)/Moody's(Aa)/FITCH(AA) 34,159,732 - S&P(A)/Moody's(A)/FITCH(A) 13,494 3,007

(c)(c)(c)(c) Liquidity riskLiquidity riskLiquidity riskLiquidity risk

The Fund is exposed to daily redemption of units, the majority of its assets in investments are traded in an active market which can be readily disposed of. The Manager may also limit the total number of units redeemed for the Fund on any dealing day to 10% or more of the units in issue on any dealing day.

The Fund has the ability to enter into borrowing arrangements subject to the investment restrictions and guidelines.

The table below summarizes the Fund's financial liabilities into relevant maturity groupings based on the remaining period as at 30 September to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows.

2010 2009 Less than 1 month Less than 1 month US$ US$ Amounts due to brokers 18,998,638 3,008,959 Amounts payable on redemption 24,702,303 6,387,600 Other accounts payable 2,946,165 2,431,535 Total financial liabilities 46,647,106 11,828,094

The Investment Manager manages the Fund's liquidity risk by investing predominantly in investments that the Investment Manager expects to be able to liquidate within 1 month to meet the total financial liabilities and making short term bank borrowing.



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(II)(II)(II)(II) Capital risk managementCapital risk managementCapital risk managementCapital risk management

The capital of the Fund is represented by the net assets attributable to holders of redeemable units which is subject to subscriptions and redemptions of redeemable units. The Fund's objective for capital management is to provide returns and long-term capital growth for unitholders.

In order to maintain the capital structure, the Management perform the following:

Monitor subscriptions and redemptions activities relative to the liquid assets.

To protect the interest of unitholders and in exceptional circumstances, the Manager may also limit the total number of units redeemed for the Fund on any dealing day to 10% or more of the units in issue on any dealing day.

Monitor fund investment guidelines and restrictions, in accordance with the constitutional documents, to maintain sufficient liquidity through diversification.

(III)(III)(III)(III) Fair value estimationFair value estimationFair value estimationFair value estimation

As at 30 September 2010 and 2009, the Management consider that the carrying values of assets and liabilities were reasonable approximations of their fair value.

The Fund adopted the amendment to HKFRS 7 with effect from 1 October 2009. This requires the Fund to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).

Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).

Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The table below summarizes the Fund's investments and derivatives within the fair value hierarchy measured at fair value as at 30 September 2010:

Listed/Quoted Investments Level 1

US$ Level 2

US$ Level 3

US$ Total US$

Assets Equities 1,991,719,104 - - 1,991,719,104 Total financial assets at fair value through profit and loss 1,991,719,104 - - 1,991,719,104

5555 Net gains on investments aNet gains on investments aNet gains on investments aNet gains on investments and derivatives nd derivatives nd derivatives nd derivatives

2010 2009 US$ US$ Change in unrealized gains/losses in value of investments and derivatives 195,522,063 783,840,642 Realized gains/(losses) on sale of investments and derivatives 384,074,252 (563,729,144) 579,596,315 220,111,498

6666 TaxationTaxationTaxationTaxation

No provision for Hong Kong profits tax has been made as the Fund was authorized as a collective investment scheme under Section 104 of the Securities and Futures Ordinance and is therefore exempt from profits tax under Section 26A(1A) of the Inland Revenue Ordinance.

Overseas withholding tax was charged on certain dividend income received during the year.



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7777 Transactions with the Trustee and its affiliates and the Manager and its Connected Persons Transactions with the Trustee and its affiliates and the Manager and its Connected Persons Transactions with the Trustee and its affiliates and the Manager and its Connected Persons Transactions with the Trustee and its affiliates and the Manager and its Connected Persons

The following is a summary of transactions entered into during the year between the Fund and the Trustee and its affiliates and the Manager and its Connected Persons. Connected Persons of the Manager are those as defined in the Code on Unit Trusts and Mutual Funds established by the SFC. All such transactions were entered into in the ordinary course of business and were on normal commercial terms.

(a) Investment transactions with Connected Persons of the Manager are set out below:

Name of company

Aggregate value of

purchases and sales of investments

US$

Commission paid US$

% of theFund's totalcommission

paid in theyear

Averagecommission

rate%

2010 J.P. Morgan Securities (Asia Pacific) Limited 547,602,345 1,101,225 13.59 0.20J.P. Morgan Securities Asia Private Limited 36,085,801 - - - 2009 J.P. Morgan Securities (Asia Pacific) Limited 583,714,356 1,123,769 17.83 0.19J.P. Morgan Securities Limited 83,992,031* 11,003 0.17 0.01

* This amount represents futures transactions.

(b) Balances with the Manager and its Connected Persons as at year end:

2010 2009 US$ US$ Bank deposits 34,159,732 149,118,291 Amounts receivable 62 4,957,745 Amounts payable (4,962,578) (2,367,780)

(c) The Fund may utilize the brokerage, custodian, agency and banking services of the Trustee and its affiliates and the Manager and its Connected Persons.

(d) For the year ended 30 September 2010, the income accruing to the Manager relating to allotments and redemptions in the Fund, net of commission paid to agents, amounted to US$5,786,950 (2009: US$2,296,759 ).

(e) Management fee of 1.5% per annum of the net asset value of the Fund is paid to JPMorgan Funds (Asia) Limited. Management fee is accrued on each dealing day and is payable monthly in arrears.

(f) The Fund allows the Manager and its Connected Persons to subscribe for, and redeem, units of the Fund. All such transactions are entered into in the ordinary course of business and are on normal commercial terms.

(g) Refer to Note 8 for fee paid to the Trustee.

(h) JPMorgan Funds (Asia) Limited, the registrar agent and Manager, receives a registrar's fee which varies depending on the number of unitholders in the Fund and the number of transactions which occur. The range agreed with the Trustee is between 0.015% and 0.5% per annum of the Fund's net asset value. The registrar's fee is payable quarterly in arrears.

8888 Trustee's fee Trustee's fee Trustee's fee Trustee's fee

Trustee's fee of 0.018% per annum of the net asset value of the Fund is paid to the Trustee. Trustee's fee is accrued on each dealing day and is payable monthly in arrears.



- 14 -

9999 Soft commission arrangementsSoft commission arrangementsSoft commission arrangementsSoft 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.

10101010 Distribution Distribution Distribution Distribution

No distribution was made during the year (2009: nil).


year ended 30 Septembeyear ended 30 Septembeyear ended 30 Septembeyear ended 30 September 2010r 2010r 2010r 2010

- 15 -

InInInIndependent Auditor's Report dependent Auditor's Report dependent Auditor's Report dependent Auditor's Report

To the Unitholders of JF ASEAN Fund (the "Fund")

Report on the financial statementsReport on the financial statementsReport on the financial statementsReport on the financial statements

We have audited the financial statements of the Fund set out on pages 3 to 14, which comprise the Statement of Financial Position as at 30 September 2010, and the Statement of Comprehensive Income, Statement of Changes in Net Assets Attributable to Holders of Redeemable Units and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Management's responsibility for the financial statementsManagement's responsibility for the financial statementsManagement's responsibility for the financial statementsManagement's responsibility for the financial statements

The Trustee and the Manager (the "Management") of the Fund are responsible for the preparation and the true and fair presentation of these financial statements in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and are responsible for ensuring that the financial statements have been properly prepared in accordance with the relevant disclosure provisions of the Trust Deed dated 7 July 1983, as amended (the "Trust Deed") and the relevant financial statements disclosure provisions specified in Appendix E of the Code on Unit Trusts and Mutual Funds established by the Securities and Futures Commission of Hong Kong (the "SFC Code"). This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and the true and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's responsibilityAuditor's responsibilityAuditor's responsibilityAuditor's responsibility

Our responsibility is to express an opinion on these financial statements based on our audit and to report our opinion solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Fund's preparation and true and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionOpinionOpinionOpinion

In our opinion, the financial statements give a true and fair view of the financial position of the Fund as at 30 September 2010, and of its financial performance and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards.

Report on other legal and regulatory disclosure Report on other legal and regulatory disclosure Report on other legal and regulatory disclosure Report on other legal and regulatory disclosure requirementsrequirementsrequirementsrequirements

We report that the financial statements have been properly prepared in accordance with the relevant disclosure provisions of the Trust Deed and the relevant financial statements disclosure provisions specified in the SFC Code.

PricewaterhouseCoopers Hong Kong,

11 January 2011

Statement of Responsibilities of the Manager and the Statement of Responsibilities of the Manager and the Statement of Responsibilities of the Manager and the Statement of Responsibilities of the Manager and the TrusteeTrusteeTrusteeTrustee Manager's responsibilitiesManager's responsibilitiesManager's responsibilitiesManager's responsibilities

The Manager of the Fund is required by the Code on Unit Trusts and Mutual Funds established by the Securities and Futures Commission of Hong Kong and the Trust Deed to prepare financial statements for each annual accounting period which give a true and fair view of the financial position of the Fund at the end of that period and of the transactions for the period then ended. In preparing these financial statements the Manager is required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are prudent and reasonable; and

prepare the financial statements on the basis that the Fund will continue in operation unless it is inappropriate to presume this.

The Manager is also required to manage the Fund in accordance with the Trust Deed and take reasonable steps for the prevention and detection of fraud and other irregularities.

Trustee's responsibilitiesTrustee's responsibilitiesTrustee's responsibilitiesTrustee's responsibilities

The Trustee of the Fund is required to:

ensure that the Fund is managed by the Manager in accordance with the Trust Deed and that the investment and borrowing powers are complied with;

satisfy itself that sufficient accounting and other records have been maintained;

safeguard the property of the Fund and rights attaching thereto; and

report to the unitholders for each annual accounting period on the conduct of the Manager in the management of the Fund.


year ended 30 Septembeyear ended 30 Septembeyear ended 30 Septembeyear ended 30 September 2010r 2010r 2010r 2010

- 16 -

Report of the Trustee to the UnitholdersReport of the Trustee to the UnitholdersReport of the Trustee to the UnitholdersReport of the Trustee to the Unitholders

We hereby confirm that, in our opinion, the Manager of the Fund has, in all material respects, managed the Fund in accordance with the provisions of the Trust Deed dated 7 July 1983, as amended, for the year ended 30 September 2010.

Bank of East Asia (Trustees) Limited, Trustee

11 January 2011

Performance Record Performance Record Performance Record Performance Record ---- Unaudited Unaudited Unaudited Unaudited

Net Asset Values Net Asset Values Net Asset Values Net Asset Values

At financial period ended

Net asset value of the Fund

US$

Net asset value per unit

US$

30/9/10 2,118,835,703 94.89

30/9/09 1,775,364,448 70.10

30/9/08 1,541,135,546 60.08

Highest Offer/Lowest Bid Prices Highest Offer/Lowest Bid Prices Highest Offer/Lowest Bid Prices Highest Offer/Lowest Bid Prices

Financial period ended Highest offer Lowest bid US$ US$ 30/9/10 99.64 68.44 30/9/09 74.04 34.21 30/9/08 113.59 58.57 30/9/07 103.29 56.80 30/9/06 63.39 39.40 30/9/05 45.42 34.20 30/9/04 40.42 28.89 30/9/03 31.17 18.78 30/9/02 27.06 16.68 30/9/01 25.00 16.57

Management and AdministrationManagement and AdministrationManagement and AdministrationManagement and Administration Manager and Service ProviManager and Service ProviManager and Service ProviManager and Service Providerderderder Directors of the ManagerDirectors of the ManagerDirectors of the ManagerDirectors of the Manager JPMorgan Funds (Asia) Limited as at 11 January 2011 21/F, Chater House Ann Kui Ching Kao 8 Connaught Road Central Edwin Tsun Kay Chan Hong Kong Elsie Pui Shan Leung Ken Wai Ming Tam Investment ManagerInvestment ManagerInvestment ManagerInvestment Manager Leo Ka Kui Cheung JF Asset Management Limited Lily Suet Lai Lau 21/F, Chater House Marco Ka Nam Tang 8 Connaught Road Central Terry San Kong Pan Hong Kong TrusteeTrusteeTrusteeTrustee SubSubSubSub----ManagerManagerManagerManager Bank of East Asia (Trustees) Limited JPMorgan Asset Management 32/F, BEA Tower (Singapore) Limited Millennium City 5 168 Robinson Road 418 Kwun Tong Road 17/F, Capital Tower Kwun Tong, Kowloon Singapore 068912 Hong Kong Registrar Registrar Registrar Registrar East Asia International

Trustees Limited East Asia Chambers P.O. Box 901 Road Town, Toronto British Virgin Islands AuditorAuditorAuditorAuditor PricewaterhouseCoopers Certified Public Accountants 22/F, Prince's Building Central Hong Kong

Distributor StatusDistributor StatusDistributor StatusDistributor Status The Fund has been certified by the Board of Inland Revenue in the UK as a distributing fund in respect of the period from 1 January 1984 to 30 September 2009. The principal effect of this certification is that for unitholders resident or ordinarily resident in the UK for taxation purposes any gains accruing on the sale, redemption or other disposal of units during the period will be taxed in the UK as a capital gain and not as income. This treatment will continue under the new UK reporting fund regime. The Fund is transparent for UK income tax purposes and UK investors are subject to UK capital gains tax on disposal of their units. UK investors are subject to tax on their share of income of the Fund on an arising basis. Information has been provided to UK investors of the amount of their share of the underlying income, expenses and overseas tax suffered.

JF ASIA DOMESTIC OPPORTUNITIES FUNDJF ASIA DOMESTIC OPPORTUNITIES FUNDJF ASIA DOMESTIC OPPORTUNITIES FUNDJF ASIA DOMESTIC OPPORTUNITIES FUND Annual report for theAnnual report for theAnnual report for theAnnual report for the


- 17 -

Investment PortfolioInvestment PortfolioInvestment PortfolioInvestment Portfolio As at 30 September 2010As at 30 September 2010As at 30 September 2010As at 30 September 2010 (Unaudited)(Unaudited)(Unaudited)(Unaudited)



US$US$US$US$


assetsassetsassetsassets Listed/Quoted InvestmentsListed/Quoted InvestmentsListed/Quoted InvestmentsListed/Quoted Investments (101.8%) EquitiesEquitiesEquitiesEquities (101.8%) ChinaChinaChinaChina (40.6%) Agricultural Bank of China 'H' 31,232,000 16,172,795 2.1 Anta Sports Products 7,348,000 16,904,792 2.2 BBMG Corp 'H' 8,759,000 12,275,598 1.6 Beijing Jingkelong Co 'H' 3,326,000 4,057,247 0.5 China Merchants Bank 'H' 3,580,500 9,224,289 1.2 China Merchants Property

Development 'B' 1,244,888 2,387,724 0.3 China National Bldg

Material 'H' 5,226,000 12,144,095 1.6 China Resources Gas Group 3,818,000 5,606,606 0.7 China Resources Power Hldgs 4,346,000 9,315,416 1.2 China Shineway

Pharmaceutical 2,727,000 9,466,798 1.2 China Taiping Insurance Hldgs 2,527,200 8,463,932 1.1 China Vanke 'B' 13,543,574 17,114,394 2.2 China Yurun Food Group 4,315,000 15,924,458 2.1 Dongfang Electric 'H' 1,251,000 5,849,559 0.8 Glorious Property Hldgs 5,317,677 1,520,667 0.2 Guangzhou Automobile

Group 'H' 2,406,000 4,115,787 0.5 Hidili Industry Intl

Development 14,802,000 14,528,962 1.9 Intime Department

Store (Group) 8,743,000 11,937,835 1.5 Intl Mining Machinery 2,017,000 1,888,859 0.3 Li Ning Co 3,308,500 10,036,477 1.3 Lianhua Supermarket Hldgs 'H' 2,320,000 9,368,817 1.2 Maoye Intl Hldgs 21,955,000 10,237,673 1.3 Microport Scientific 5,902,000 6,576,193 0.9 Parkson Retail Group 6,340,000 11,008,759 1.4 Ping An Insurance (Group) 'H' 2,297,500 23,439,045 3.0 Poly Hong Kong Investment 13,022,000 13,922,429 1.8 Sany Heavy Equipment Intl 6,957,000 12,277,270 1.6 Tencent Hldgs 705,000 15,392,815 2.0 Tingyi (Cayman Islands) Hldgs 3,710,000 10,107,494 1.3 Zijin Mining Group 'H' 14,728,000 12,521,228 1.6 Hong KongHong KongHong KongHong Kong (6.8%) Cheung Kong (Hldgs) 615,000 9,308,339 1.2 Hang Lung Properties 2,229,000 10,824,570 1.4 Kerry Properties 1,762,000 9,566,712 1.2 Sands China 6,320,800 11,349,953 1.5 Wharf (Hldgs) 1,859,000 11,925,263 1.5 IndiaIndiaIndiaIndia (19.0%) Ambuja Cements (DEMAT) 3,000,000 9,350,172 1.2 Bharat Heavy Electricals

(DEMAT) 100,000 5,515,745 0.7 Exide Industries (DEMAT) 4,833,229 17,602,268 2.3 Housing Development

Finance (DEMAT) 1,250,000 20,287,638 2.6 Infrastructure Development

Finance 4,000,000 18,048,292 2.3 JSW Steel 330,000 9,792,778 1.3

(Continued)



US$US$US$US$


assetsassetsassetsassets Larsen & Toubro (DEMAT) 300,000 13,698,120 1.8 Maruti Suzuki India (DEMAT) 600,000 19,876,472 2.6 Mundra Port & Special

Economic Zone 5,500,000 20,489,596 2.6 Tata Motors (DEMAT) 500,000 12,174,252 1.6 IndonesiaIndonesiaIndonesiaIndonesia (5.5%) Astra Intl 1,500,000 9,529,411 1.2 Indofood CBP Sukses

Makmur (Reg S) 3,254,500 1,967,286 0.3 Kalbe Farma 45,000,000 12,731,092 1.6 United Tractors 8,000,000 18,151,260 2.4 KoreaKoreaKoreaKorea (12.7%) Amorepacific Corp 15,000 15,036,176 1.9 Daewoo Shipbuilding &

Marine Engine 390,000 9,286,121 1.2 Hanmi Hldgs 22,500 795,220 0.1 Hanmi Pharm 36,753 3,690,610 0.5 KB Financial Group 300,000 12,878,755 1.7 Korea Kumho Petrochemical 45,501 2,889,079 0.4 KT & G 150,000 8,932,252 1.2 Lock & Lock 466,620 15,611,974 2.0 Lotte Shopping 30,000 12,431,484 1.6 MegaStudy Co 5,302 783,501 0.1 Samsung Engineering 117,248 15,578,226 2.0 SingaporeSingaporeSingaporeSingapore (8.2%) Fraser & Neave (CDP) 2,500,000 12,316,114 1.6 Genting Hong Kong

(SG Listing) 13,058,000 5,549,650 0.7 GMG Global 80,000,000 15,205,079 2.0 Guocoland Ltd (CDP) 6,626,000 11,837,990 1.5 Midas Hldgs (SG Listing) 8,017,000 6,034,006 0.8 Otto Marine 32,500,000 8,771,430 1.1 Yanlord Land Group 3,000,000 3,968,525 0.5 TaiwanTaiwanTaiwanTaiwan (5.9%) Cathay Financial Hldg 3,764,250 5,747,314 0.7 Fubon Financial Hldg 9,105,134 11,191,433 1.5 Huaku Development 4,050,606 11,176,232 1.4 President Chain Store 2,299,000 9,860,794 1.3 Taishin Financial Hldgs 17,590,142 7,882,528 1.0 ThailandThailandThailandThailand (3.1%) Siam Cement NVDR 1,446,600 15,872,086 2.0 Thai Airways Intl NVDR 3,160,100 4,321,059 0.6 Ticon Industrial Connection

NVDR 8,000,000 3,822,076 0.5 Total Listed/Quoted InvestmentsTotal Listed/Quoted InvestmentsTotal Listed/Quoted InvestmentsTotal Listed/Quoted Investments 787,446,946 101.8



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Investment PortfolioInvestment PortfolioInvestment PortfolioInvestment Portfolio (Continued) As at 30 September 2010As at 30 September 2010As at 30 September 2010As at 30 September 2010 (Unaudited)(Unaudited)(Unaudited)(Unaudited)



US$US$US$US$


assetsassetsassetsassets Other net liabilitiesOther net liabilitiesOther net liabilitiesOther net liabilities (13,885,782) (1.8) Net assets attributable to holders of Net assets attributable to holders of Net assets attributable to holders of Net assets attributable to holders of

redeemable units at 30 September 2010redeemable units at 30 September 2010redeemable units at 30 September 2010redeemable units at 30 September 2010 773,561,164 100.0 Total investments, at costTotal investments, at costTotal investments, at costTotal investments, at cost 629,762,812

Statement of Movements in Portfolio HoldingStatement of Movements in Portfolio HoldingStatement of Movements in Portfolio HoldingStatement of Movements in Portfolio Holdingssss For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010 (Unaudited)(Unaudited)(Unaudited)(Unaudited) % holdings% holdings% holdings% holdings

of net assetsof net assetsof net assetsof net assets 2010201020102010 2009200920092009 Listed/Quoted InvestmentsListed/Quoted InvestmentsListed/Quoted InvestmentsListed/Quoted Investments EquitiesEquitiesEquitiesEquities China 40.6 37.1 India 19.0 12.6 Korea 12.7 12.1 Singapore 8.2 5.3 Hong Kong 6.8 9.2 Taiwan 5.9 11.5 Indonesia 5.5 5.0 Thailand 3.1 3.0 Collective Investment SchemesCollective Investment SchemesCollective Investment SchemesCollective Investment Schemes China - 1.2 Total Listed/Quoted InvestmentsTotal Listed/Quoted InvestmentsTotal Listed/Quoted InvestmentsTotal Listed/Quoted Investments 101.8 97.0 Other net (liabilities)/assetsOther net (liabilities)/assetsOther net (liabilities)/assetsOther net (liabilities)/assets (1.8) 3.0 Net assets attributable to holders of Net assets attributable to holders of Net assets attributable to holders of Net assets attributable to holders of

redeemable units at 30 Septemberredeemable units at 30 Septemberredeemable units at 30 Septemberredeemable units at 30 September 100.0 100.0




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Statement of FinStatement of FinStatement of FinStatement of Financial Positionancial Positionancial Positionancial Position As at 30 September 2010As at 30 September 2010As at 30 September 2010As at 30 September 2010 As at 30 SeptemberAs at 30 SeptemberAs at 30 SeptemberAs at 30 September As at 1 OctoberAs at 1 OctoberAs at 1 OctoberAs at 1 October 2010201020102010 2009200920092009 2008200820082008 (Restated)(Restated)(Restated)(Restated) (Restated)(Restated)(Restated)(Restated) US$US$US$US$ US$US$US$US$ US$US$US$US$ AssetsAssetsAssetsAssets Cash at banks 363,897 28,066,402 23,062,708 Short term deposits - - 67,000,000 Amounts due from

brokers 18,139,124 - - Amounts receivable

on allotment 3,503,812 968,143 165,948 Investments [Note

4(I)(a)] 787,446,946 721,995,683 556,668,744 Dividend and other

accounts receivable 2,341,844 2,331,235 18,522,934

Total assetsTotal assetsTotal assetsTotal assets 811,795,623 753,361,463 665,420,334 ------------------- ------------------- ------------------- LiabilitiesLiabilitiesLiabilitiesLiabilities Short term bank

loans - unsecured [Note 7(h)] 5,300,000 - -

Amounts due to brokers 25,111,340 2,936,536 -

Amounts payable on redemption 4,187,883 837,936 2,641,382

Performance fee payable [Note 7(f)] - - 2,006,594

Other accounts payable 3,635,236 5,227,608 1,140,591

Total liabilitiesTotal liabilitiesTotal liabilitiesTotal liabilities 38,234,459 9,002,080 5,788,567 ------------------- ------------------- ------------------- Net assets Net assets Net assets Net assets

attributable to attributable to attributable to attributable to holders of holders of holders of holders of redeemable units redeemable units redeemable units redeemable units [Note 3] 773,561,164 744,359,383 659,631,767

EquityEquityEquityEquity 773,561,164 744,359,383 659,631,767 Approved by the Trustee and the Manager on 11 January 2011 Signed By: HSBC Institutional Trust Services (Asia) Limited, Trustee JPMorgan Funds (Asia) Limited, Manager

Statement of Comprehensive IncomeStatement of Comprehensive IncomeStatement of Comprehensive IncomeStatement of Comprehensive Income ForForForFor the year ended 30 September 2010the year ended 30 September 2010the year ended 30 September 2010the year ended 30 September 2010 2010201020102010 2009200920092009 US$US$US$US$ US$US$US$US$ IncomeIncomeIncomeIncome Net gains on investments and

derivatives [Note 5] 144,656,821 157,695,381 Dividend income 10,515,654 13,085,374 Interest on deposits 1,696 124,766 Net foreign currency exchange

losses (671,838) (2,141,501) Other income 1,485 206 154,503,818 168,764,226 ------------------- ------------------- ExpensesExpensesExpensesExpenses Management fee [Note 7(e)] 10,892,052 8,541,942 Transaction costs 5,474,141 3,566,635 Safe custody and bank charges 280,740 195,839 Trustee's fee [Note 8] 270,841 223,839 Registrar's fee [Note 7(j)] 253,455 254,927 Printing and publication expenses 40,659 24,190 Legal and professional expenses 30,753 354 Auditor's fee 24,600 23,550 Valuation fee [Note 7(e)] 17,360 17,360 Other operating expenses 37,099 95,712 17,321,700 12,944,348 ------------------- ------------------- Net operating profitNet operating profitNet operating profitNet operating profit 137,182,118 155,819,878 Finance costsFinance costsFinance costsFinance costs Interest paid (14,105) (6,406) Profit before taxationProfit before taxationProfit before taxationProfit before taxation 137,168,013 155,813,472 Taxation [Note 6] (146,331) (6,100,715) Increase in net assets Increase in net assets Increase in net assets Increase in net assets





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Statement of Changes in Net AsStatement of Changes in Net AsStatement of Changes in Net AsStatement of Changes in Net Assets Attributable to Holders sets Attributable to Holders sets Attributable to Holders sets Attributable to Holders of Redeemable Unitsof Redeemable Unitsof Redeemable Unitsof Redeemable Units For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010 2010201020102010 2009200920092009 US$US$US$US$ US$US$US$US$ Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders

of redeemable units at the of redeemable units at the of redeemable units at the of redeemable units at the beginning of the yearbeginning of the yearbeginning of the yearbeginning of the year 744,359,383 659,631,767

-------------------- -------------------- Allotment of redeemable units

[Note 3] 54,692,689 47,338,612 Redemption of redeemable units

[Note 3] (162,512,590) (112,323,753) Net redemptionNet redemptionNet redemptionNet redemption (107,819,901) (64,985,141) -------------------- -------------------- 636,539,482 594,646,626 Increase in net assets Increase in net assets Increase in net assets Increase in net assets


Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders Net assets attributable to holders

of redeemable units at the end of redeemable units at the end of redeemable units at the end of redeemable units at the end of the yearof the yearof the yearof the year 773,561,164 744,359,383

Statement of Cash FlowsStatement of Cash FlowsStatement of Cash FlowsStatement of Cash Flows For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010For the year ended 30 September 2010 2010201020102010 2009200920092009 US$US$US$US$ US$US$US$US$ Operating activitiesOperating activitiesOperating activitiesOperating activities Purchase of investments and

derivatives (870,186,096) (689,921,688) Proceeds from disposal of

investments and derivatives 952,911,292 700,666,432 Dividend received 10,905,105 13,816,768 Interest received 1,696 131,466 Performance fee paid - (2,006,594) Registrar's fee paid (254,009) (270,332) Trustee's fee paid (270,540) (225,057) Tax paid (1,763,663) (1,948,668) Transaction costs paid (5,357,439) (3,550,920) Management fee paid (10,877,012) (8,588,328) Others (1,092,944) (2,511,707) Net cash inflow from operating Net cash inflow from operating Net cash inflow from operating Net cash inflow from operating

activitiesactivitiesactivitiesactivities 74,016,390 5,591,372 ------------------- ------------------- Financing activitiesFinancing activitiesFinancing activitiesFinancing activities Interest paid (13,983) (6,406) Receipts on allotment of

redeemable units 52,157,020 46,536,417 Payments on redemption of

redeemable units (159,162,643) (114,127,199) Net cash outflow from Net cash outflow from Net cash outflow from Net cash outflow from

financing activitiesfinancing activitiesfinancing activitiesfinancing activities (107,019,606) (67,597,188) ------------------- ------------------- Decrease in cash and cash Decrease in cash and cash Decrease in cash and cash Decrease in cash and cash

equequequequivalentsivalentsivalentsivalents (33,003,216) (62,005,816) Cash and cash equivalents at the

beginning of the year 28,066,402 90,062,708 Exchange gains on cash and cash

equivalents 711 9,510 Cash and cash equivalents at Cash and cash equivalents at Cash and cash equivalents at Cash and cash equivalents at

the end of the yearthe end of the yearthe end of the yearthe end of the year (4,936,103) 28,066,402 Analysis of balances of cash and cash equivalents:Analysis of balances of cash and cash equivalents:Analysis of balances of cash and cash equivalents:Analysis of balances of cash and cash equivalents: Cash at banks 363,897 28,066,402 Short term bank loans -

unsecured (5,300,000) - (4,936,103) 28,066,402

JF ASIA DOMESTIC OPPORTUNITIES FUNDJF ASIA DOMESTIC OPPORTUNITIES FUND

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