2015/16At 9th October2015, the Hurdle Rate required to return the current Ordinary share price of87.0pence was1.9%per annum and to return the Final Capital Entitlement of the ZDPshares

JPMorgan Income & Capital Trust plcHalf Year Report & Accounts for the six months ended 31st August 2015

Half Year Report2015/16

Income_Capital HY cover 13/10/2015 16:29 Page 2

Features

Contents

About the Company

1 Half Year Performance2 Chairman’s Statement4 Investment Managers’ Report

Investment Review

7 List of Investments9 Portfolio Analyses

Financial Statements

10 Statement of Comprehensive Income11 Statement of Changes in Equity12 Statement of Financial Position13 Statement of Cash Flows14 Notes to the Financial Statements

Shareholder Information

17 Interim Management Report18 Capital Structure of the Company19 Glossary of Terms and Definitions21 Information about the Company

Objective

To meet the final capital entitlement of the Zero Dividend Preference shareholders andto provide Ordinary shareholders with a regular quarterly income and capital growth.

Policies

- The Company seeks to achieve its objective by investing principally in UK equitiesand investment grade fixed interest securities.

- To invest no more than 15% of gross assets in other UK listed investment companies(including investment trusts).

- To use gearing when appropriate to increase potential returns to shareholders.

Benchmark

A composite benchmark comprising 90% FTSE 350 Index (excluding investmenttrusts) and 10% Barclays Global Aggregate Corporate Bond Index in sterling terms.

Capital Structure

For details of the capital structure of the Company please refer to page 18.

Life of the Company

The Company has a fixed life of ten years, which expires at the end of February 2018.

Management Company and Company Secretary

The Company employs JPMorgan Funds Limited (‘JPMF’ or the ‘Manager’) as itsAlternative Investment Fund Manager and Company Secretary. JPMF delegates themanagement of the Company’s portfolio to JPMorgan Asset Management (UK) Limited(‘JPMAM’).

FCA regulation of ‘non-mainstream pooled investments’

The Company currently conducts its affairs so that the shares issued by JPMorganIncome & Capital Trust plc can be recommended by Independent Financial Advisers toordinary retail investors in accordance with the FCA’s rules in relation to non-mainstreaminvestment products and intends to continue to do so for the foreseeable future.

The shares are excluded from the FCA’s restrictions which apply to non-mainstreaminvestment products because they are shares in an investment trust.

AIC

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

Website

The Company’s website, which can be found at www.jpmincomeandcapital.co.uk,includes useful information on the Company, such as daily prices, factsheets andcurrent and historic half year and annual reports.


JPMorgan Income & Capital Trust plc. Half Year Report & Accounts 2015 1

Half Year PerformanceTotal returns (capital plus income)

–4.3%Shareholders’ fundstotal return1

–6.1%Composite benchmarkreturn4

+4.4%Unit share price totalreturn1,3

+1.1%Zero DividendPreference share pricetotal return1

+0.8%Ordinary share pricetotal return1

–4.4%Unit net asset valuetotal return2,3

+3.3%Zero DividendPreference share netasset value total return2

Financial Summary (Half Year accounts)31st August 28th February %

2015 2015 change

AssetsShareholders’ funds (£’000) 142,078 149,447 –4.9

Zero Dividend Preference sharesNet assets (£’000) 76,068 73,624 +3.3

Net asset value per share 163.2p 158.0p +3.3

Share price 174.0p 172.1p +1.1

Share price premium to net asset value per share 6.6% 8.9%

Ordinary sharesNet assets (£’000) 66,010 75,823 –12.9

Net asset value per share 96.3p 110.6p –12.9

Share price 96.3p 98.8p –2.5

Share price discount to net asset value per share 0.0% (10.7)%

Dividends paid on the Ordinary shares during theperiod amount to 3.40p per share5

Units2

Net asset value per unit 355.8p 379.2p –6.2

Unit price 361.5p 353.0p +2.4

Unit price premium/(discount) to net asset value per share 1.6% (6.9)%

Ongoing charges 1.22% 1.21%

A glossary of terms and definitions is provided on page 19.1Source: Morningstar.2Source: J.P. Morgan.3A Unit comprises two Ordinary shares and one Zero Dividend Preference share.4Source: MSCI – The Company’s benchmark is a composite, comprising 90% FTSE 350 Index (excluding Investment Trusts) and 10% Barclays Global Aggregate Corporate Bond Index,in sterling terms.5Dividends paid comprise the 2015 fourth interim dividend of 1.7p paid on 24th April 2015 and the 2016 first interim dividend of 1.7p paid on 24th July 2015.

–10.1%Ordinary share netasset value total return2

The above are total returns and include dividends reinvested.

Income_Capital_pp01_20 13/10/2015 16:18 Page 1

Introduction and Performance

During the six months ended 31st August 2015, the total return on shareholders fundswas –4.3%, compared with a return of –6.1% recorded by the composite benchmark(comprising 90% FTSE 350 Index and 10% Barclays Global Aggregate CorporateBond Index in sterling terms). The Company remains fully invested in equities and therelative outperformance of the benchmark was attributed mainly to stock selection.

The performance of the UK economy has remained positive throughout the period,with the result of the General Election contributing to market confidence. TheFTSE 100 Index was on an upward trend (underpinned by good news on profits anddividends) until early August. Then, in tandem with stock markets around the worldand reflecting the extent to which many listed UK companies depend upon overseasearnings, it suffered a significant correction. News of the economic downturn in Chinaand concerns that this would negatively impact global economic growth seemed tobe the main cause for this sudden fall. Other concerns included continuinguncertainty surrounding the possible exit of Greece from the Eurozone, worries aboutdeflation in Europe and fears of an increase in interest rates in the United States.

Although weak commodity and energy prices have been positive for the world’sdeveloped economies, the realisation that they result from a fall in economic growthin China and other emerging economies has depressed sentiment. The central banksof the major economies continued to maintain low interest rates and, in Japan andthe Eurozone, to inject liquidity into the financial system. These efforts, combinedwith heavy market intervention by the authorities in China towards the end of theperiod, helped to maintain a generally positive investing environment, albeit raisingconcerns about the sustainability of markets over the long term without substantialgovernment support.

The Investment Managers provide a detailed commentary covering marketdevelopments and your Company’s portfolio in their report.

Share Price Performance

The prices of the Company’s two classes of share and of its units (comprising twoOrdinary shares and one ZDP share) were at a premium/(discount) to net asset valueat 31st August 2015 and at previous period end dates as follows:

31st August 2015 28th February 2015 31st August 2014Share Share Premium/ Share Premium/prices Premium prices (discount) prices (discount)

ZDP 174.0p 6.6% 172.1p 8.9% 167.6p 9.6%Ordinary 96.3p 0% 98.8p (10.7)% 94.5p (11.8)%Units 361.5p 1.6% 379.2p (6.9)% 363.5p (1.0)%

At 9th October 2015, the prices of the Ordinary shares and Units were at discounts of9.8% and 2.7% respectively whilst the ZDP share price was at a premium of 6.0%.

JPMorgan Income & Capital Trust plc. Half Year Report & Accounts 20152

Chairman’s Statement



Income Statement and Dividends

Revenue after tax and before dividends for the period was £4.1 million and therevenue return per Ordinary share was 6.0 pence.

The capital loss per Ordinary share was 16.9 pence, reflecting the impact of the fallin the value in our shareholdings. The total loss per Ordinary share was therefore10.9 pence.

For the six month period, the Board has declared two quarterly interim dividends,each of 1.70 pence per Ordinary Share, payable to Ordinary shareholders and Unitholders on 24th July 2015 and 23rd October 2015. The Board intends, in the absenceof unforeseen circumstance, to maintain the current level of quarterly dividends toOrdinary shareholders and Unit holders for the remainder of the financial yearending 29th February 2016.

The undistributed revenue reserves, after allowing for the payment of the secondinterim dividend, amount to £4.70 million.

Hurdle Rate

The Hurdle Rate measures the amount by which the total assets of the Company haveto grow each year in order to return the current share price to Ordinary shareholderswhen the Company winds up in February 2018. At 31st August 2015, the Hurdle Raterequired to return the Ordinary share price of 96.3 pence was 3.7% per annum andthe Hurdle Rate required to return an Ordinary share price of 100.0 pence was 4.4%per annum. At 31st August 2015, the Hurdle Rate required to return the Final CapitalEntitlement of the ZDP shares of 192.13 pence was (16.9)% per annum.

At 9th October 2015, the Hurdle Rate required to return the current Ordinary shareprice of 87.0 pence was 1.9% per annum and to return the Final Capital Entitlement ofthe ZDP shares of 192.13 pence was (17.7)%.

Outlook

Given the sharp market correction in August (and continuing turbulence in September)combined with increasing concerns about a slowdown in world growth, it is clear thatthe equity bull run witnessed since 2009 is facing some strong headwinds. It isdifficult, however, to reach a definite view given the extent to which central banksappear to be willing to provide support to faltering economies and markets by way oflow interest rates and liquidity injections. Your Board and the Managers will remainvigilant through the current volatility, with the Company’s portfolio being managedwith the objective of meeting the final capital entitlement of Zero Dividend Preferenceshareholders and providing income and capital growth for Ordinary shareholders.

Sir Laurence Magnus BtChairman 13th October 2015



Investment Managers’ Report

Portfolio Review

There has been no change to the asset allocation of the Company during the halfyear. Apart from a small cash holding, the portfolio is fully exposed to equities. TheCompany remains overweight equities relative to its composite benchmark as webelieve that the outlook for equities and dividend growth seems likely to be positive.Additionally, valuations remain supportive with many corporate balance sheets inrude health.

When assessing the investment opportunity provided by stocks we focus on whetherearnings estimates are being revised up, the valuation is attractive and whetherthe balance sheet and forecast cash flows allow for sustainable dividend growth. Assuch, portfolio construction is determined by bottom up stock selection. Looking atportfolio activity in the first half we introduced a holding in Intermediate CapitalGroup which provides mezzanine finance and has a growing asset managementbusiness. The stock has a premium dividend yield and its growing fund managementand associated fee earning capability will improve the earnings quality of the group.We bought a holding in Synthomer, the chemicals group (formerly Yule Catto) whichhas a new management team that is focused on driving higher returns and will returnexcess cash to shareholders if there are insufficient investment opportunities. Wealso bought Costain, a UK focused infrastructure group. The company reportedstrong results and the outlook is strong, not least because of planned increases inroad spending by Highways England. Card Factory was another addition to theportfolio. The company has a network of 750 stores in the UK which sell valuegreetings cards. Strong trading and cash generation means the company is in aposition to increase total payouts via special dividends.

Conversely, we sold our positions in Prudential, Compass Group, Elementis and GKN.The sale of Prudential was predicated on increasing fears of a slowdown in growth inthe company’s Asian operations and regulatory uncertainty in the UK & US. Compasshas been a very long term position for us during which time the stock has performedstrongly thanks to growth in North America and margin expansion. We sold theholding because the upside from current levels looked less compelling. We exited ourposition in chemical group Elementis, as the trading outlook was deteriorating due toslowing growth in China, Brazil and in their oil and gas operations. Our sale of GKNwas due to weak performances in divisions exposed to agricultural machinery andautomotive components.

Performance Review

In the six month period to the 31st August the Company’s return was –4.3% incomparison with the benchmark’s return of –6.1%. Stock selection was the key driverof the relative outperformance as, contrary to our expectation, corporate bondsoutperformed equities. A number of our domestic cyclical stocks outperformed thepositive equity market, particularly after the surprise majority win by the ConservativeParty in the UK general election in early May 2015. Our housebuilding stocks wereparticularly strong, led by Taylor Wimpey and Berkeley Group as well as Galliford Try.Another key contributor to performance was the Company’s long term overweightposition in ITV which delivered robust returns having announced good results, astrong increase in the ordinary dividend and a higher than expected special dividendfor the most recent financial year. Next Plc, performed well for us again as tradingconsistently beats expectations and strong cash generation makes further special

Sarah Emly

John Baker



dividends likely. Some of our favoured financial stocks were also positive contributorsto the outperformance including Jupiter Fund Management and Provident Financial.

The worst performing stocks in the Company were mining and oil companies. Metals’prices were under pressure as demand from China slowed. The headline grabbingcollapse in the oil price over the last 12 months is a boon to consumers but achallenge for companies such as Royal Dutch Shell in which the Company holds aposition. We maintain a position in this company for its dividend yield to whichmanagement reiterated their commitment. Equipment rental company Ashteadperformed poorly in the six month period as fears increased that weak results frompeers heralded a slowdown in the company’s remarkable growth. The company wenton to beat expectations just after year end.

Market review

UK stocks fell over the six months to 31st August 2015, with the FTSE 350 ex ITs Indexdown 6.6%*. Sentiment was particularly weak towards the end of the review periodas a shock currency devaluation in China raised concerns over global growth. Thedomestic UK economy, however, remained relatively strong, although weak inflationdata and global uncertainty meant that expectations for the first UK interest rate risewere pushed back. Sterling corporate bonds fell in the period, with the Barclays GlobalAggregate Corporate UK Index down 1.5%. The market experienced volatility towardsthe end of the six months, as Chinese growth fears were reignited. Otherwise, demandfor yield remained robust given the ongoing low interest rate environment.

Sentiment over much of the period was dominated by uncertainty over the likelytiming and pace of interest rate rises by the Bank of England (BoE). Expectationsfor the first rise in UK base rates since July 2007 were pushed back, with continueddisinflationary pressures reinforcing the view that the central bank would keeprates on hold until 2016. A sharp fall in gas and energy costs, and a drop in foodand clothing prices, helped push the annual change in the consumer price indexdown to –0.1% in the year to April – the lowest level since records began in 1989, andthe first negative reading since at least 1960 according to the Office for NationalStatistics. With inflation well below target through the review period, marketscontinued to expect the BoE to keep rates on hold until 2016, with minutes from theMonetary Policy Committee meetings adding to this sentiment.

Aside from ongoing speculation over the timing of the BoE’s first rise, the benigninterest rate environment was generally supportive for stocks. Low interest rates tendto increase the attractiveness of risk assets, such as UK shares, while low borrowingcosts can boost consumer spending and lower borrowing costs for companies –helping lift future corporate earnings potential.

The UK general election campaign added to market nerves early in the review periodafter polls suggested that both major parties (the Conservatives and Labour) couldstruggle to form a stable government following the vote on 7th May. In the event, asurprise outright majority for the Conservatives prompted a relief rally, particularly insectors that had faced tighter regulation under a Labour-led government, such ashomebuilders, utility companies and property developers. The unexpected victoryalso sparked a sharp rise for sterling on currency markets.

*Source FactSet total return gross in sterling terms.



Investment Managers’ Reportcontinued

The UK economy also showed signs of picking up steam as the review periodprogressed. GDP growth rebounded to 0.7% in the second quarter, up from 0.4%in the first quarter. House prices rose sharply in the wake of the election, whilelabour market conditions continued to improve, with unemployment falling to5.4%, the lowest level since 2008, and wages rising at their fastest pace since2009 in the April to June period.

However, it was overseas concerns that weighed most on UK returns. Worries overGreek debt caused volatility early in the summer as deadlines loomed and Europestruggled to reach a bailout agreement. In August, the People’s Bank of Chinaannounced its move to devalue the renminbi by the most in almost two decades, inorder to implement a more market-driven framework for the currency. The surprisedecision sent shockwaves through global markets in late August, sparking worriesabout the extent of China’s economic weakness and the impact on global growth.Fears over China’s slowdown and subsequent falling demand for raw materials alsocontinued to put pressure on commodity prices, leading to earnings downgrades formajor UK-listed oil producers and mining companies.

UK dividend growth disappointed in the review period, with dividends rising just 1.2%year on year in the second quarter, according to the Capita UK Dividend Monitor – theslowest pace in over three years. Dividend payments have come under pressure fromslow corporate earnings growth, while strength in sterling has reduced dividendsdenominated in foreign currencies, which has been particularly negative for themining and financials sectors. However, with bond yields languishing at lows, theappeal of dividend-paying companies to income investors remained intact.

Market outlook

As we head towards the end of 2015, attention is turning to monetary policy and thetiming of the first UK interest rate rise. Although the consumer price index remains atvery low levels, the UK’s large current account deficit and low productivity growthcould suggest that inflationary tendencies in the economy remain strong. As a result,the recent strength of UK economic data – particularly a pick-up in wage growth anda post-election surge in house prices – reinforces the prospect of eventual interestrate rises.

Rising interest rates would be expected to cause headwinds for domestically focusedcompanies, which have generally outperformed over the last 12 months.Nevertheless, interest rate rises, when they are eventually introduced, are likely to bemodest and gradual, which may ease the pressure on stocks. The UK market alsoremains reasonably attractive from a valuation perspective, trading on a lowerforward price-to-earnings ratio than many other developed markets and offering ahigh dividend yield compared to the low income available from government bonds.Corporate earnings’ expectations have fallen in the last year, so any further reboundin European growth and a stabilisation in commodity prices could lead to upgradesand provide further support to valuations.

John BakerSarah EmlyInvestment Managers 13th October 2015



List of Investmentsat 31st August 2015

Valuation Total assetsCompany Sector £’000 %1

Royal Dutch Shell Oil & Gas 7,766 5.5 HSBC Financials 7,061 5.0 British American Tobacco Consumer Goods 6,277 4.4 BP Oil & Gas 5,355 3.8 Imperial Tobacco Consumer Goods 4,869 3.4 AstraZeneca Health Care 4,641 3.3 Vodafone Telecommunications 4,545 3.2 BT Telecommunications 4,355 3.1 Lloyds Banking Group Financials 3,780 2.7 Barclays Financials 3,705 2.6 Rio Tinto Basic Materials 3,487 2.5 GlaxoSmithKline Health Care 3,341 2.3 ITV Consumer Services 3,292 2.3 Next Consumer Services 3,283 2.3 Berkeley Consumer Goods 3,117 2.2 Provident Financial Financials 3,061 2.2 Aviva Financials 3,050 2.1 National Grid Utilities 2,528 1.8 British Land Financials 2,490 1.7 Beazley Financials 2,424 1.7 Novae Financials 2,339 1.6 WPP Consumer Services 2,263 1.6 Taylor Wimpey Consumer Goods 2,252 1.6 Persimmon Consumer Goods 2,233 1.6 Man Financials 2,228 1.6 Direct Line Insurance Financials 2,138 1.5 Mondi Basic Materials 2,099 1.5 Severn Trent Utilities 2,057 1.4 Phoenix Group Financials 2,023 1.4 Jupiter Fund Management Financials 1,950 1.4 Schroders Financials 1,890 1.3 Galliford Try Consumer Goods 1,845 1.3 BAE Systems Industrials 1,767 1.2 Reed Elsevier Consumer Services 1,679 1.2 Booker Consumer Services 1,584 1.1 WH Smith Consumer Services 1,561 1.1 Kcom Telecommunications 1,553 1.1 Card Factory Consumer Services 1,488 1.0 Legal & General Financials 1,486 1.0 Intermediate Capital Group Financials 1,484 1.0 Wolseley Industrials 1,432 1.0 Go-Ahead Consumer Services 1,421 1.0 Halfords Consumer Services 1,391 1.0



List of Investments continued

Valuation Total assetsCompany Sector £’000 %1

Ashtead Industrials 1,388 1.0 BHP Billiton Basic Materials 1,377 1.0 DCC Industrials 1,312 0.9 Synthomer Basic Materials 1,282 0.9 Informa Consumer Services 1,153 0.8 Moneysupermarket.com Consumer Services 1,072 0.8 Old Mutual Financials 1,021 0.7 Michael Page International Industrials 983 0.7 Bodycote Industrials 794 0.6 Diploma Industrials 760 0.5 Interserve Industrials 626 0.4 Glencore Basic Materials 539 0.4 Costain Industrials 429 0.3 JPMorgan Sterling Liquidity Fund Liquidity Fund 1,960 1.4

Net current assets 2,792 2.0

Total 142,078 100.0

1Based on total assets less current liabilities of £142.1m.



31st August 28th February2015 2015

Class of security %1 %1

Equities 96.6 99.0Liquidity funds 1.4 0.4Net current assets 2.0 0.6

Total 100.0 100.0

1Based on total assets less current liabilities of £142.1m (28th February 2015: £149.4m).

31st August 2015 28th February 2015Portfolio Benchmark Portfolio Benchmark

Sector Analysis %1 % %1 %

Financials 29.5 21.2 28.5 20.2Consumer Goods 14.5 14.3 15.2 14.0Consumer Services 14.2 11.7 10.9 10.8Oil & Gas 9.3 10.4 11.6 11.7Telecommunications 7.4 5.0 7.7 4.6Industrials 6.6 9.3 7.8 9.1Basic Materials 6.3 5.2 7.0 6.8Health Care 5.6 8.1 7.2 8.1Utilities 3.2 3.5 3.1 3.4Technology — 1.3 — 1.3

Total equities 96.6 90.0 99.0 90.0

Fixed interest — 10.0 — 10.0Liquidity funds 1.4 — 0.4 —Net current assets 2.0 — 0.6 —

Total 100.0 100.0 100.0 100.0

1Based on total assets less current liabilities of £142.1m (28th February 2015: £149.4m).

Portfolio Analyses



Statement of Comprehensive Incomefor the six months ended 31st August 2015

(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended31st August 2015 31st August 2014 28th February 2015

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

(Losses)/gains on investments held at fair value through profit or loss — (8,770) (8,770) — (2,607) (2,607) — 3,109 3,109

Net foreign currency (losses)/gains — (1) (1) — 8 8 — (8) (8)Income from investments 4,649 — 4,649 3,834 — 3,834 6,027 — 6,027Other interest receivable and

similar income — — — — — — 8 — 8

Gross return/(loss) 4,649 (8,771) 4,122 3,834 (2,599) 1,235 6,035 3,101 9,136Management fee (254) (380) (634) (241) (362) (603) (483) (725) (1,208)Other administrative expenses (279) — (279) (236) — (236) (504) — (504)

Net return/(loss) on ordinaryactivities before finance costs and taxation 4,116 (9,151) (5,035) 3,357 (2,961) 396 5,048 2,376 7,424

Finance costs – appropriationsfor Zero Dividend Preference shares — (2,444) (2,444) — (2,684) (2,684) — (4,553) (4,553)

Finance costs – other (5) (7) (12) (5) (7) (12) (9) (14) (23)

Net return/(loss) on ordinaryactivities before taxation 4,111 (11,602) (7,491) 3,352 (5,652) (2,300) 5,039 (2,191) 2,848

Taxation (charge)/credit (4) — (4) — — — 6 — 6

Net return/(loss) on ordinaryactivities after taxation 4,107 (11,602) (7,495) 3,352 (5,652) (2,300) 5,045 (2,191) 2,854

Return/(loss) per class of share (note 3)

Ordinary share 6.0p (16.9)p (10.9)p 4.9p (8.3)p (3.4)p 7.4p (3.2)p 4.2p

Zero DividendPreference share — 5.2p 5.2p — 5.8p 5.8p — 9.8p 9.8p

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired ordiscontinued in the period.

The ‘Total’ column of this statement is the Statement of Comprehensive Income of the Company and the ‘Revenue’ and ‘Capital’columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.



Statement of Changes in Equityfor the six months ended 31st August 2015

Called up Capitalshare Share Other redemption Capital Revenue

For the six months ended capital premium reserve reserve reserves reserve1 Total31st August 2015 (unaudited) £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 28th February 2015 685 4,627 60,493 8 5,925 4,085 75,823Amortisation of expenses of the placing

and offer for subscription — — 12 — — — 12Net (loss)/return on ordinary activities — — — — (11,602) 4,107 (7,495)Dividends paid in the period — — — — — (2,330) (2,330)

At 31st August 2015 685 4,627 60,505 8 (5,677) 5,862 66,010


For the six months ended capital premium reserve reserve reserves reserve1 Total31st August 2014 (unaudited) £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 28th February 2014 675 3,640 60,470 8 8,116 3,463 76,372Shares issued – Ordinary 6 538 — — — — 544Shares issued – Zero Dividend Preference — — — — 456 — 456Share issue expenses — (7) — — — — (7)Amortisation of expenses of the placing

and offer for subscription — — 11 — — — 11Net (loss)/return on ordinary activities — — — — (5,652) 3,352 (2,300)Dividends paid in the period — — — — — (2,203) (2,203)

At 31st August 2014 681 4,171 60,481 8 2,920 4,612 72,873


For the year ended capital premium reserve reserve reserves reserve1 Total28th February 2015 (audited) £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 28th February 2014 675 3,640 60,470 8 8,116 3,463 76,372Issue of Ordinary shares 10 987 — — — — 997Amortisation of expenses of the placing and

offer for subscription — — 23 — — — 23Net (loss)/return on ordinary activities — — — — (2,191) 5,045 2,854Dividends paid in the year — — — — — (4,423) (4,423)

At 28th February 2015 685 4,627 60,493 8 5,925 4,085 75,823

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



Statement of Financial Positionat 31st August 2015

(Unaudited) (Unaudited) (Audited)31st August 2015 31st August 2014 28th February 2015

£’000 £’000 £’000

Fixed assetsInvestments held at fair value through profit or loss 137,326 141,571 147,972Cash equivalents at fair value through profit or loss1 1,960 700 550

139,286 142,271 148,522Current assetsDebtors 3,617 1,154 708Cash and short term deposits 251 372 455

3,868 1,526 1,163Creditors: amounts falling due within one year (1,076) (47) (238)

Net current assets 2,792 1,479 925

Total assets less current liabilities 142,078 143,750 149,447Creditors: amounts falling due after more than

one yearCapital entitlement of the Zero Dividend Preference

shareholders (76,068) (70,877) (73,624)

Net assets 66,010 72,873 75,823

Capital and reservesCalled up share capital 685 681 685Share premium 4,627 4,171 4,627Other reserve 60,505 60,481 60,493Capital redemption reserve 8 8 8Capital reserves (5,677) 2,920 5,925Revenue reserve 5,862 4,612 4,085

Equity shareholders’ funds 66,010 72,873 75,823

Net asset values per share (note5)Zero Dividend Preference share 163.2p 152.9p 158.0pOrdinary share 96.3p 107.1p 110.6p

1This line item was shown as ‘Investment in Liquidity fund held at fair value through profit and loss’ in the financial statement for the year ended 28th February 2015.



Statement of Cash Flowsfor the six months ended 31st August 2015


£’000 £’000 £’000

Cash inflow from operations (Note 6) 3,180 2,473 4,292Total tax recovered — — 6

Net cash inflow from operating activities 3,180 2,473 4,298

Purchases of investments (23,713) (20,529) (34,870)Sales of investments 24,072 19,400 33,186Other capital charges – handling fees (2) (2) (2)

Net cash inflow/(outflow) from investing activities 357 (1,131) (1,686)

Dividends paid (2,330) (2,203) (4,423)Proceeds of new Zero Dividend Preference Shares — 456 878Proceeds of new Ordinary shares — 537 997

Net cash outflow from financing activities (2,330) (1,210) (2,548)

Increase in cash and cash equivalents 1,207 132 64

Cash and cash equivalents at the start of the period 1,005 937 937Exchange Movements (1) 3 4Cash and cash equivalents at the end of the period 2,211 1,072 1,005

Increase in cash and cash equivalents 1,207 132 64

Cash and cash equivalents consist of:Cash at bank 251 372 455Investments in liquidity funds 1,960 700 550

2,211 1,072 1,005



Notes to the Financial Statementsfor the six months ended 31st August 2015

1. Financial statements

The information contained within the Financial Statements in this half year report has not been audited or reviewed by theCompany’s auditors.

The figures and financial information for the year ended 28th February 2015 are extracted from the latest published financialstatements of the Company and do not constitute the statutory accounts for that year. Those financial statements have beendelivered to the Registrar of Companies, including the report of the auditors which was unqualified and did not contain astatement under either section 498(2) or 498(3) of the Companies Act 2006.

2. Accounting policies

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 ‘The Financial ReportingStandard applicable in the UK and Republic of Ireland’ of the United Kingdom Generally Accepted Accounting Practice (‘UKGAAP’) and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and VentureCapital Trusts’ (the revised ‘SORP’) issued by the Association of Investment Companies in November 2014.

FRS 104 ‘Interim Financial Reporting’, issued by the Financial Reporting Council (‘FRC’) in March 2015 has been applied inpreparing this condensed set of financial statements for the six months ended 31st August 2015.

As a result of the first time adoption of FRS 102 and the revised SORP, presentational formats of the primary financialstatements have been amended. There were no prior period restatements as a result of these changes.

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

The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financialstatements for the year ended 28th February 2015 with the following exceptions and amendments:

Finance costsFinance costs are accounted for on an accruals basis using the effective interest method and in accordance with the provisionsof FRS 102.

Financial instrumentsCash and cash equivalents may comprise cash (including demand deposits which are readily convertible to a known amountof cash and are subject to an insignificant risk of change in value) as well as cash equivalents.

In accordance with the requirements of the Alternative Investment Fund Managers Directive regulations, investments areregarded as cash equivalents if they are highly liquid investments held in the sub-fund’s base currency that are readilyconvertible to a known amount of cash, are subject to an insignificant risk of change in value and provide a return no greaterthan the rate of a three-month high quality government bond. As a result, the Company’s investment in the JPMorgan SterlingLiquidity Fund is now presented as a cash equivalent.

In accordance with FRS 102, because of the Company’s limited life and the rights and obligations attached to the Zero DividendPreference shares, these shares are classified in the financial statements as liabilities.

Foreign currencyIn accordance with FRS 102 the Company is required to identify its functional currency, being the currency of the primaryeconomic environment in which the Company operates. The Board, having regard to the currency of the Company’s sharecapital and the predominant currency in which its shareholders operate, has determined that sterling is the functionalcurrency. Sterling is also the currency in which the accounts are presented.

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

Capital entitlement of the Zero Dividend Preference shareholdersThe provision for the capital entitlement of the Zero Dividend Preference shares is included as a finance cost in the Statementof Comprehensive Income and is credited to the capital entitlement of the Zero Dividend Preference shareholders. Theprovision is calculated on a cumulative compound basis. The Zero Dividend Preference shares are recognised as liabilities dueto their predetermined life, in accordance with FRS 102.

Only the relevant section of the applicable policies from the last year end accounts which have changed as a result of the application of the 2014AIC SORP and FRS 102 have been reproduced above - all other aspects of those policies remain the same. The impact of the changes issubstantially in relation to presentational, disclosure and non-quantifiable aspects.



3. Return/(loss) per class of shareReturn/(loss) per Ordinary share is based on the following:


£’000 £’000 £’000

Revenue return 4,107 3,352 5,045Capital loss (11,602) (5,652) (2,191)

Total (loss)/return (7,495) (2,300) 2,854

Weighted average number of Ordinary shares in issue 68,556,782 67,893,268 68,085,001Revenue return per share 6.0p 4.9p 7.4pCapital loss per share (16.9)p (8.3)p (3.2)p

Total (loss)/return per share (10.9)p (3.4)p 4.2p

Return per Zero Dividend Preference share is based on the following:

Six months ended Six months ended Year ended31st August 2015 31st August 2014 28th February 2015

£’000 £’000 £’000

Capital return – compound growth entitlement 2,444 2,684 4,553

Weighted average number of Zero Dividend Preference shares in issue 46,612,200 46,280,443 46,376,310

Return per share 5.2p 5.8p 9.8p

4. Dividends on Ordinary shares1


£’000 £’000 £’000

Fourth quarterly dividend of 1.7p (2014: 1.625p) paid in April 1,165 1,097 1,097

First quarterly dividend of 1.7p (2014: 1.625p) paid in July 1,165 1,106 1,106Second quarterly dividend of 1.625p paid in October n/a n/a 1,106Third quarterly dividend of 1.625p paid in January n/a n/a 1,114

Total dividends paid in the period 2,330 2,203 4,423

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

A second quarterly dividend of 1.7p (2014: 1.625p) per Ordinary share amounting to £1,165,000 (2014: £1,106,000) has beendeclared payable in respect of the year ending 29th February 2016.



5. Net asset values per share

Net asset values per share calculated in accordance with the Articles of Association are as follows:

(Unaudited) (Unaudited) (Audited)31st August 2015 31st August 2014 28th February 2015

Zero Dividend Preference sharesNet assets attributable (£’000) 76,068 70,877 73,624Shares in issue at the period end 46,612,200 46,362,200 46,612,200Net asset value per share 163.2p 152.9p 158.0p

Ordinary sharesNet assets attributable (£’000) 66,010 72,873 75,823Shares in issue at the period end 68,556,782 68,056,782 68,556,782Net asset value per share 96.3p 107.1p 110.6p

6. Reconciliation of net (loss)/return on ordinary activities before finance costs and taxation to net cash inflow from operating activities


£’000 £’000 £’000

Net (loss)/return on ordinary activities before finance costsand taxation (5,035) 396 7,424

Capital loss/(return) before finance costs and taxation 9,151 2,961 (2,376)Increase in net debtors and accrued income (526) (495) (17)Overseas withholding tax (30) (27) (14)Management fee charged to capital (380) (362) (725)

Net cash inflow from operating activities 3,180 2,473 4,292

7. Fair valuation of investments

The fair value hierarchy analysis for investments held at fair value at the period end is as follows:


Assets Liabilities Assets Liabilities Assets Liabilities£’000 £’000 £’000 £’000 £’000 £’000

Quoted prices for identical instruments in active markets 137,326 — 141,571 — 147,972 —

Prices of recent transactions for identical instruments1 1,960 — 700 — 550 —

Total value of investments 139,286 — 142,271 — 148,522 —

1Includes JPMorgan Sterling Liquidity Fund.

Notes to the Financial Statementscontinued



Interim Management Report

The Company is required to make the following disclosures inits half year report.

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Companyfall into the following broad categories: investment andstrategy; accounting, legal and regulatory; corporategovernance and shareholder relations; operational; andfinancial. Information on each of these areas is given in theBusiness Review within the Annual Report and Accounts forthe year ended 28th February 2015.

Related Parties’ Transactions

During the first six months of the current financial year,no transactions with related parties have taken place whichhave materially affected the financial position or theperformance of the Company.

Going Concern

The Directors believe, having considered the Company’sinvestment objectives, risk management policies, capitalmanagement policies and procedures, nature of theportfolio and expenditure projections, that the Company hasadequate resources, an appropriate financial structure and

suitable management arrangements in place to continue inoperational existence for the foreseeable future and, morespecifically, that there are no material uncertainties relatingto the Company that would prevent its ability to continue insuch operational existence for at least twelve months fromthe date of the approval of this half yearly financial report.For these reasons, they consider there is reasonableevidence to continue to adopt the going concern basis inpreparing the accounts.

Directors’ Responsibilities

The Board of Directors confirms that, to the best of itsknowledge:

(i) the condensed set of financial statements contained withinthe half year financial report has been prepared inaccordance with FRS 104 ‘Interim Financial Reporting’; and

(ii) the interim management report includes a fair review ofthe information required by DTR 4.2.7R and 4.2.8R of theUK Listing Authority Disclosure and Transparency Rules.

For and on behalf of the BoardSir Laurence Magnus BtChairman 13th October 2015



Capital Structure of the Company

The Company’s capital consists of Ordinary shares of 1p eachand Zero Dividend Preference shares (‘ZDPs’) of 1p each whichare traded on the London Stock Exchange, both separately andin the form of Units (each comprising two Ordinary shares andone ZDP),

Ordinary shares

Investment Characteristics The Ordinary shares are designed to provide a regularquarterly income, together with the potential for capitalgrowth. Ordinary shareholders should note that the Ordinaryshares are considered to carry above-average risk.

Entitlements Ordinary shareholders are entitled to all dividends paid by theCompany and, on a winding-up, to all of the Company’s netsurplus assets (including any growth in their value) after anyindebtedness has been repaid and the prior entitlement of theholders of ZDPs has been met in full.

Voting Rights Ordinary shareholders have the right to vote at generalmeetings and, on a poll, to one vote for each Ordinary shareheld.

Zero Dividend Preference shares

Investment Characteristics The ZDPs are designed to provide a pre-determined, but notguaranteed, capital entitlement ranking in priority to theOrdinary shares. Because of their prior capital entitlementand pre-determined growth, they are considered to carrybelow-average risk.

Entitlements The ZDPs are not entitled to any dividends and are designed toprovide a predetermined Final Capital Entitlement payable on

the ZDP Repayment Date which ranks behind the Company’screditors, but in priority to the Ordinary shares (except for anyrevenue profits). The final Capital Entitlement per ZDP Sharedue on the ZDP Repayment Date equates to an annual returnof 6.75% per annum compound on their issue price of 100p.

Voting Rights Holders of ZDPs will be entitled to attend and vote at allgeneral meetings of the Company and, on a poll, to one votefor each ZDP held. Holders of ZDPs will not, however, beentitled to vote on resolutions relating to the payment ofdividends to Ordinary shareholders out of the revenue profitsof the Company.

Units The Units each consist of two Ordinary shares and one ZDP.

Investment Characteristics The Units are designed to provide a regular quarterly incometogether with the potential for capital growth. The income yieldprovided by the Units is lower than that provided by theOrdinary shares, but the inclusion of the ZDP in each Unitmeans that the capital risk is also lower. Unitholders shouldnote therefore, that the Units are considered to carry less riskthan the Ordinary shares but more risk than the ZDPs.

Entitlements and Voting Rights Unitholders have the same entitlements and voting rights as ifthey held separately the Ordinary shares and ZDPs comprisedin their Units. In addition, they will be entitled in respect of thecomponent shares comprised in their Units to vote at classmeetings of both the Ordinary shareholders and ZDPshareholders convened to consider certain proposals whichwould be likely to affect their position.



Glossary of Terms and Definitions

Shareholders’ funds total return

Change in net assets with net income reinvested, excluding theeffect of share issues and share repurchases.

Composite benchmark return

Total return on the benchmark, on a mid-market value tomid-market value basis, assuming that all dividends quotedex-dividend during the period were reinvested withouttransaction costs into the shares of the underlying companies,at the time the shares were quoted ex-dividend.

The benchmark comprises two recognised indices of stockswhich should not be taken as wholly representative of theCompany’s investment universe. The Company’s investmentstrategy does not follow or ‘track’ these indices and,consequently, there may be some divergence between theCompany’s performance and the benchmark performance.

Ordinary share price total return

Total return to the investor based on the change in the Ordinaryshare mid market price and assuming that all dividends paid outduring the half year were reinvested without transaction costsinto Ordinary shares at the time the shares were quotedex-dividend.

Unit share price total return

Total return to the investor based on the change in the Unit midmarket price and assuming that all dividends paid out inrespect of a Unit during the half year were reinvested withouttransaction costs into Units at the time the Units were quotedex-dividend. Note that a Unit comprises two Ordinary sharesand one Zero Dividend Preference share.

Zero Dividend Preference share price total return

Total return to the investor based on the change in the ZeroDividend Preference share mid market price.

Ordinary share net asset value total return

Return to the investor based on the change in the net assetvalue (‘NAV’) per Ordinary share and assuming all dividendspaid out during the half year were reinvested into Ordinaryshares at the NAV per Ordinary share at the time the shareswere quoted ex-dividend.

Unit net asset value total return

Return to the investor based on the change in the Unit net assetvalue (‘NAV’) and assuming all dividends paid out in respect ofa Unit during the half year were reinvested into Units at theNAV per Unit at the time the Units were quoted ex-dividend.Note that a Unit comprises two Ordinary shares and one ZeroDividend Preference share.

Share price discount/premium to net asset value (‘NAV’)

If the share price of an investment trust is lower than theNAV per share, the shares are said to be trading at a discount.The discount is shown as a percentage of the NAV per share.The opposite of a discount is a premium. It is more common foran investment trust’s shares to trade at a discount than at apremium.

Ongoing Charges

The Ongoing Charges represent the Company’s Managementfee and all other operating expenses, excluding finance costs,expressed as a percentage of the average of the daily net assetsduring the period. The figure as at 31st August 2015 is anestimated annualised figure.



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HistoryThe Company is an investment trust which was launched as the successorvehicle to JPMorgan Income & Capital Investment Trust plc. Dealings inthe securities of the Company began on 3rd March 2008 and theCompany has a fixed life of 10 years. Accordingly, the Company will bewound-up on 28th February 2018 unless, prior to that date, shareholdersand unitholders approve alternative arrangements.

Directors Sir Laurence Magnus Bt (Chairman)Roderick CollinsSian HansenRichard HillsJames West (Chairman of the Audit Committee)

Company Numbers Company registration number: 6453183 London Stock Exchange numbers:

Ordinary shares: B2NBJ06 Units: B2NBJ40 ZDPs: B2NBJ28

ISIN: Ordinary shares: GB00B2NBJ068 Units: GB00B2NBJ407 ZDPs: GB00B2NBJ282

Bloomberg codes: Ordinary shares: JPI LN Units: JPIU LN ZDPs: JPIZ LN

Market Information The Company’s shares are listed on the London Stock Exchange. Themarket price is shown daily in the Financial Times, The Times, theDaily Telegraph, The Scotsman and on the JPMorgan website atwww.jpmincomeandcapital.co.uk, where the share price is updated everyfifteen minutes during trading hours.

Website www.jpmincomeandcapital.co.uk

Share Transactions The Company’s shares may be dealt in directly through a stockbroker,intermediary or professional adviser acting on an investor’s behalf. Theymay also be purchased and held through the J.P. Morgan InvestmentAccount and J.P. Morgan ISA. These products are all available on theonline wealth manager service, J.P. Morgan WealthManager+ available atwww.jpmorganwealthmanagerplus.co.uk

Manager and Company Secretary JPMorgan Funds Limited

Company’s Registered Office 60 Victoria EmbankmentLondon EC4Y 0JPTelephone number: 020 7742 4000

For company secretarial and administrative matters please contactPaul Winship.

DepositaryBNY Mellon Trust and Depositary UK LtdBNY Mellon Centre160 Queen Victoria StreetLondon EC4V 4LA

The Depositary has appointed JPMorgan Chase Bank, N.A. as theCompany’s custodian.

Registrars Equiniti LimitedReference 2422Aspect HouseSpencer RoadLancingWest Sussex BN99 6DATelephone number: 0871 384 2633

Calls to this number cost 10p per minute plus your phone company’saccess charge. Lines open 8.30 a.m. to 5.30 p.m. Monday to Friday).Overseas helpline +44 121 415 0225.

From 22nd October 2015, calls can be made to 0371 384 2633, whichcosts no more than a national rate call to a 01 or 02 number.

Notifications of changes of address and enquiries regarding sharecertificates or dividend cheques should be made in writing to theRegistrar quoting reference 3300.

Registered shareholders can obtain further details on holdings on theinternet by visiting www.shareview.co.uk.

Independent Auditors PricewaterhouseCoopers LLPChartered Accountants and Statutory Auditors7 More London RiversideLondon SE1 2RT

Brokers Winterflood Securities LimitedThe Atrium BuildingCannon Bridge25 Dowgate HillLondon EC4R 2GA

Savings Product Administrators For queries on the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan SIPP, see contact details on the back cover of this report.

Information about the Company

Financial CalendarFinancial year end 28th FebruaryFinal results announced April/MayHalf year end 31st AugustHalf year results announced OctoberDividend on Ordinary shares January, April, July and OctoberAnnual General Meeting July

A member of the AIC



JPMorgan HelplineFreephone 0800 20 40 20 or +44 (0)20 7742 9995

Your telephone call may be recorded for your security

www.jpmincomeandcapital.co.uk


Documents

2015/16At 9th October2015, the Hurdle Rate required to return the current Ordinary share price of87.0pence was1.9%per annum and to return the Final Capital Entitlement of the ZDPshares