JPMorgan European Investment Trust plc · 2017. 7. 20. · 2 JPMORGAN EUROPEAN INVESTMENT TRUST PLC. ANNUAL REPORT & ACCOUNTS 2017 G R O W T H S H A R E S Financial Results TOTAL

JPMorgan European Investment Trust plcAnnual Report & Accounts for the year ended 31st March 2017

The Company has two share classes Growth and Income, eachwith distinct investment policies, objectives and underlyingasset pools. Shareholders in either of the Company’s two shareclasses are able to convert some or all of their shares intoshares of the other class without such conversion being treated,under current law, as a disposal for UK capital gains taxpurposes. See page 85 for further details of the Company’scapital structure and conversion between share classes.

Objectives Growth PortfolioThe investment objective of the Growth portfolio is to providecapital growth and a rising share price over the longer termfrom Continental European investments by taking carefullycontrolled risks through an investment method that is clearlycommunicated to shareholders.

Income PortfolioThe investment objective of the Income portfolio is to providea growing income together with the potential for long termcapital growth by investing in a portfolio of investments thatis diversified amongst countries, sectors and marketcapitalisations within the universe of Continental Europeancompanies.

Investment Policies – To invest in a diversified portfolio of investments in thestockmarkets of Continental Europe.

– To manage liquidity and borrowings to increase returns toshareholders.

Growth Portfolio– To emphasise capital growth rather than income, with thelikely result that the level of dividends will fluctuate.

Income Portfolio– To provide a growing income together with the potential forlong-term capital growth.

See page 31 for details of the Company’s InvestmentRestrictions and Guidelines

Benchmarks Growth and IncomeThe MSCI Europe ex UK Index (total return) in sterling terms.

Capital Structure At 31st March 2017, the Company’s share capital comprised77,220,608 Growth shares and 93,769,494 Income shares.

A share voting number is attributed to each of the Growth andIncome shares so that the votes available to each of the twoclasses of shares equates to the proportion of the net assetvalue of the Company that the Growth and Income poolsrepresent. See page 39 for details of the share voting number.

In addition to the votes available as referred to above, theGrowth and Income shares also have rights in respect ofdividends and return of assets as detailed in the Company’sArticles of Association.

Management CompanyThe Company employs JPMorgan Funds Limited (‘JPMF’) as itsAlternative Investment Fund Manager. JPMF delegates themanagement of the Company’s portfolio to JPMorgan AssetManagement (UK) Limited (‘JPMAM’).

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

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

AICThe Company is a member of the Association of InvestmentCompanies.

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

Features

1

Contents

FINANCIAL RESULTS

2 Total Returns (includes Dividends Reinvested)

STRATEGIC REPORT

4 Chairman’s Statement

7 Investment Managers’ Report

GROWTH SHARES

10 Summary of Results

11 Ten Year Financial Record

12 Ten Largest Equity Investments

13 Portfolio Analysis

15 List of Investments

18 Statement of Comprehensive Income

19 Statement of Financial Position

INCOME SHARES

20 Summary of Results

21 Ten Financial Record

22 Ten Largest Equity Investments

23 Portfolio Analyses

25 List of Investments



31 Business Review

GOVERNANCE

36 Board of Directors

38 Directors’ Report

40 Corporate Governance

44 Audit Committee Report

45 Directors’ Remuneration Report

48 Statement of Directors’ Responsibilities

49 INDEPENDENT AUDITOR’S REPORT

FINANCIAL STATEMENTS


56 Statement of Changes in Equity


58 Statement of Cash Flows

59 Notes to the Financial Statements

REGULATORY DISCLOSURES

81 Securities Financing Transactions (unaudited)

84 Alternative Investment Fund Managers Directive Disclosures

SHAREHOLDER INFORMATION

85 Capital Structure and Conversion between Share Classes

86 Notice of Annual General Meeting

89 Notice of Separate Class Meeting of Growth Shareholders

91 Notice of Separate Class Meeting of Income Shareholders

93 Appendix

95 Glossary of Terms and Definitions

96 Alternative Performance Measures

97 Where to buy J.P. Morgan Investment Trusts

99 Information about the Company

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European AR pp01-09 13/06/2017 15:27 Page 1

2 JPMORGAN EUROPEAN INVESTMENT TRUST PLC. ANNUAL REPORT & ACCOUNTS 2017

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Financial Results

TOTAL RETURNS (INCLUDES DIVIDENDS REINVESTED)

GROWTH SHARE CLASS

+27.2%Benchmark return3

(2016: –5.3%)

+27.1%Return to shareholders1

(2016: –8.8%)

6.85pOrdinary Dividend(2016: 5.85p)

+26.6%Return on net assets2,4

(2016: –1.6%)

Long Term Performance (total returns)FOR PERIODS ENDED 31ST MARCH 2017

1 Source: Morningstar.2 Source: Morningstar/J.P. Morgan, using net asset value per share, cum income, with debt at par value. 10 year performance is based on capital only NAVs, due to a lack of historiccum income NAVs.

3 Source: MSCI. The Growth portfolio’s benchmark is the MSCI Europe ex UK Index (total return) in sterling terms. Prior to 26th March 2013 the Growth portfolio’s benchmark wasthe FTSE All World Developed Europe (ex UK) Index in sterling terms. The benchmark index returns quoted above for periods of greater than three year are a composite of the twoindices, designed to provide an appropriate comparator to the return on net assets.

4 The net asset value above is calculated on the basis that the Company’s private placement debt is valued at par. The net assets value identified in the Company’s monthly factsheet is calculated on the basis that the Company’s private placement debt is valued at fair value.

A glossary of terms and definitions is provided on page 95.

JPMorgan European Growth – return to shareholders1

JPMorgan European Growth – return on net assets2

Benchmark total return3

27.1 26.6 27.2

73.4 72.0

102.3 98.6

75.9

32.9 34.529.0

0

20

40

60

80

100

120

10 Year 5 Year 3 Year 1 Year

79.3


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TOTAL RETURNS (INCLUDES DIVIDENDS REINVESTED)

INCOME SHARE CLASS

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+27.2%Benchmark return3

(2016: –5.3%)

+23.2%Return to shareholders1

(2016: –3.5%)

5.00pOrdinary Dividend(2016: 4.75p)

+28.2%Return on net assets2,4

(2016: –1.1%)

Long Term Performance (total returns)FOR PERIODS ENDED 31ST MARCH 2017

1 Source: Morningstar.2 Source: Morningstar/J.P. Morgan, using net asset value per share, cum income, with debt at par value. 10 year performance is based on capital only NAVs, due to the lack ofhistoric cum income NAVs.

3 Source: MSCI. The Income portfolio’s benchmark is the MSCI Europe ex UK Index (total return) in sterling terms. Prior to 26th March 2013 the Income portfolio’s benchmark wasthe MSCI Europe Index (total return) in sterling terms. The benchmark index returns quoted above for periods of greater than three year are a composite of the two indices,designed to provide an appropriate comparator to the return on net assets.

4 The net asset value above is calculated on the basis that the Company’s private placement debt is valued at par. The net assets value identified in the Company’s monthly factsheet is calculated on the basis that the Company’s private placement debt is valued at fair value.


JPMorgan European Income – return to shareholders1

JPMorgan European Income – return on net assets2

Benchmark total return3

23.228.2 27.2

112.4117.1

75.3

114.1 112.1

75.1

37.2 40.4

29.0

%

0

20

40

60

80

100

120

10 Year5 Year3 Year1 Year



Strategic Report

CHAIRMAN’S STATEMENT

PerformanceThe improvement in European markets and corporate earnings growth was reflected in theCompany’s positive performance for the year to 31st March 2017. The Company experiencedincreases in its Growth and Income share prices of 23.6% and 18.5% respectively (seepages 10 and 20). With net dividends re-invested, the total returns to the Company’s Growthand Income shareholders were 27.1% and 23.2% respectively (see pages 2 and 3).

The return to shareholders on the Company’s Growth shares of 27.1% was 0.5% more thanthe return on net assets of 26.6%, reflecting a slight narrowing of the discount on theGrowth shares. In contrast, the difference between the return to shareholders of 23.2%and return on net assets of 28.2% on the Income shares was –5.0%, reflecting a wideningdiscount on the Income shares. This can be explained largely by the general trend ofincreasing discounts in the investment trust sector and investors’ issues over the politicaluncertainty in Europe. Although, in recent months the political concerns in Europe havesubsided to some degree following the victory of Emmanuel Macron in the Frenchpresidential election and the positive regional state elections for Chancellor Merkel inGermany.

In their report on pages 7 and 9, the Investment Managers comment on some of the factorsunderlying the performance of the two portfolios including performance against thebenchmark (the MSCI Europe ex UK Index in sterling) over the Company’s financial year, aswell as commenting on the economic and market background.

Revenue and DividendsOn the Growth shares the Board’s aim is that annual dividend payments continue to bebroadly in line with revenues received on the underlying portfolio.

Revenue per share on the Growth portfolio for the year to 31st March 2017 (calculated byreference to the average number of shares in issue over the period) amounted to 6.75 penceper share (2016: 5.37 pence per share). On the year-end share price of 285.0p (2016:230.5p), this represents a yield of 2.4% (2016: 2.5%).

As regards the Income shares, the Board’s aim is to provide a regular stream of dividendincome on a quarterly basis, subject to the availability of distributable reserves.

Revenue per share on the Income portfolio for the year (again, calculated by reference tothe average number of shares in issue over the period) amounted to 5.94 pence per share(2016: 4.67 pence per share). On the year-end share price of 150.5p (2016: 127.0p) thisrepresents an increased dividend yield of 3.9% (2016: 3.7%).

The timing of the dividend payments for both share classes are expected to be maintainedwith Growth shares dividends paid bi-annually in April and October and Income shares paidquarterly in April, July, October and January.

GearingThere has been no change in the Investment Manager’s permitted gearing range, aspreviously set by the Board, of 10% net cash to 20% geared. At 31st March 2017 the Growthportfolio was 5.9% geared and the Income portfolio was 8.2% geared.

ConversionsThe Company’s annual share conversion on the 15th March 2017 resulted in a very small netdecrease in the Growth share issued share capital of 39,106 shares and a small increase inthe Income share issued share capital of 70,451 shares.

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Share Repurchase At the forthcoming Annual General Meeting on the 17th July 2017 as referred to below, theCompany will seek to renew its permission to allot new equity in order to manage the balancebetween the supply and demand for its shares, subject to the requirements and conditions asdetailed in the Notice to the Annual General Meeting on page 86. Such allotments benefit allshareholders not least by increasing the liquidity of the Company’s shares.

The Board has a proactive approach to the use of its share repurchase powers. It remains ofthe view that it is important to seek to address imbalances in the supply of and demand forthe Company’s shares and to minimise thereby the volatility and absolute level of thediscount to net asset value at which the Company’s shares trade. The Board do not wish tosee the discounts widen beyond 10% on an ongoing basis. The precise level and timing ofrepurchases pursuant to this policy depend upon prevailing market conditions. Over theyear under review the discount levels have averaged 10.7% for the Growth shares and 10.7%for Income Shares (at fair value). During the year, the Board was active in implementing itsbuyback policy and purchased a total of 574,212 Growth shares and 185,748 Income shares.Since the year end 30,116 Growth shares have been repurchased. On the 9th June 2017 thediscount on the Growth and Income Shares was 11.0% and 7.3% respectively (at fair value).

Board of DirectorsThroughout the period the Board consisted of five Directors with currently no plans tochange the composition of the Board.

During the year, the Board carried out its customary evaluation of the Directors, theChairman, the Committees and the working of the Board as a whole. It was concluded thatall aspects of the Board and its procedures were operating effectively.

In accordance with corporate governance best practice, all of the Directors retire by rotationat this year’s AGM and will offer themselves for re-election.

There has been no increase in the Directors remuneration since the increase effective on1st April 2016. Detail of this increase was included in my Chairman’s Statement for theCompany’s Annual Report and Accounts to 31st March 2016.

Investment Managers As referred to in my Chairman’s Statement for the Company’s Half year Report and Accountsto 30th September 2016, Thomas Buckingham, a Portfolio Manager in the J.P. Morgan AssetManagement European Equity Team, is now identified as an Investment Manager in theCompany’s Report and Accounts. This is in order to reflect the importance of the role thatThomas undertakes and illustrate the depth of support provided to the Company by theManager.

Adoption of New Articles of AssociationThe Company proposes to adopt new articles of association (the ‘New Articles’). The principalchanges proposed to be introduced in the New Articles and their effects are set out below.

Your Board is recommending an amendment to the Company’s current Articles ofAssociation (the ‘Existing Articles’) in order to give the Board the power to transfer revenuereserves from the Growth pool (JETG) to the Income pool (JETI) in exchange for anequivalent amount of capital reserves transferring from JETI to JETG (the Proposals).

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Strategic Report continued

The brought forward revenue reserve that accrues in JETG’s balance sheet is not required inorder to maintain JETG’s dividend since JETG’s investment objective is to provide capitalappreciation and the level of dividend in any year simply reflects the net income earned inthat year. This results in fluctuating levels of dividend pay-outs to shareholders, which iswhat investors expect. Therefore, the revenue reserve in JETG does little to add value toshareholders of JETG since it is never distributed. Conversely, JETI’s approach is to pay-outa constant, ideally growing, dividend. Thus, revenue reserves are significantly more useful toJETI as they can be drawn from in order to maintain dividend levels in years when dividendreceipts fall. If shareholders approve the special resolutions required to give effect to theProposals, as set out below, it would be the Board’s intention to transfer retained revenuereserves of £2.925 million (at 31st March 2017 see page 57) standing to the account of JETG(which have been accumulated over preceding years) to JETI and to make a correspondingtransfer of capital reserves standing to the account of JETI to JETG. Further, it is the Board’sintention on an ongoing basis to effect similar transfers between JETI and JETG for thereasons set out above

The Proposals require approval by the Company’s shareholders by way of a specialresolution in a general meeting of the Company, which will be subject to the passing ofspecial resolutions at separate class meetings of both the JETG and JETI shareholders. Thespecial resolution required to be passed in a general meeting of the Company will be put toshareholders at the Company’s forthcoming Annual General Meeting (AGM) (see below fordetails of the venue, date and time of the AGM). The separate class meetings of the JETG andJETI shareholders to approve their respective special resolutions will be at the same venueand date as the AGM and follow immediately after the conclusion of the AGM. Notices of theAGM and the separate class meetings are included in this Annual Report and Accounts.

It is proposed that whilst undertaking the above exercise, the opportunity be taken to amendthe Existing Articles with some updates as detailed on page 40 and in the Appendix on page 93.

Annual General MeetingThe Company’s eighty eighth AGM will take place at J.P. Morgan’s offices at 60 VictoriaEmbankment, London EC4Y 0JP on Monday, 17th July 2017 at 2.30 p.m. In addition to theformal proceedings there will, as usual, be a presentation by the Investment Managers,followed by tea when shareholders, who are always most welcome, can meet the Directorsand the Investment Managers for more informal discussions.

It would be helpful if shareholders seeking answers to detailed questions put them in writingbeforehand, addressed to the Company Secretary at 60 Victoria Embankment, LondonEC4Y 0JP. Alternatively, questions may be submitted via the Company’s website(www.jpmeuropean.co.uk).

OutlookOur Investment Managers will continue to pursue their current strategy and use their stockselection skills and management of gearing to best manage the portfolio. While remainingaware of the ever-present uncertainties, your Board is confident that the portfolio is wellpositioned to negotiate the current variable market conditions.

For and on behalf of the BoardAndrew AdcockChairman 12th June 2017

CHAIRMAN’S STATEMENT CONTINUED


7

INVESTMENT MANAGERS’ REPORT

Stephen Macklow-Smith

Alexander Fitzalan Howard

Michael Barakos

Thomas Buckingham

The year under review was dominated by political events, which rather overshadowed thesteady underlying improvement in the European economy as it continues its recovery fromthe 2008 Financial Crisis and its aftermath. The most important political event from theperspective of the fund was the UK’s decision to vote in a referendum to leave the EuropeanUnion. In the short term this was the catalyst for a dramatic fall in the value of Sterlingagainst the Euro and other European currencies, which meant that the return forshareholders in the fund was boosted by just under 10%. In the medium term it will meana recasting of the UK’s trade relationship with the EU, the details of which will have to bethrashed out over negotiations which will start after the forthcoming general election. Ourbase expectation is that an agreement will be arrived at for goods, but not for services. Wealso expect that, as is normally the case with EU negotiations, the path to an agreement willbe volatile, with plenty of flashpoints along the way. Nonetheless we also expect that theimpact on European financial markets and on the Euro will be less than on UK financialmarkets and on Sterling, not least because UK exports to the EU account for around 14%of UK GDP, whereas EU exports to the UK account for around 4% of EU GDP.

At an underlying economic level the year in review was an encouraging one for Europe. Thecompletion of the banking union in 2014 was the catalyst for a recovery in credit, which isa good indicator of underlying health in the economy. Real GDP growth is recovering,although the rate of growth is pedestrian. Scares about deflation became particularly acutewhen a fall in the oil price in early 2016 took headline inflation into negative territory, anda large proportion of European government bonds saw yields fall into negative territory,propelled there both by fears of deflation and also by large-scale bond buying by theEuropean Central Bank1. The bounce in the oil price in the second and third quarter dispelledmany of those fears, and we saw a fairly dramatic change in the behaviour of bond marketsin the second half of calendar 2016 as yield curves steepened on both sides of the Atlantic.We pay a lot of attention to yield curves as an indicator of economic health, because theyhave a good track record in signalling turning points. The theory is that lenders shouldexpect to pay an increasing term premium as they lend for longer periods, given theuncertainty about future prospects. If this term premium is negative (in other words if theyield curve inverts), it is often a sign that lenders see trouble ahead. Steepening yield curvesare therefore a sign that investors are gaining confidence about the future, and in the yearunder review this sparked a reflation trade, in which investors started to move back towardsthe more cyclically-sensitive areas of the market, and to move away from interest-ratesensitive sectors.

This meant a dramatic difference in sector performance, with Materials, for instance, whichhad been under huge pressure when commodities prices were falling in 2015, transformedto become the highest-performing sector in Europe, whereas Real Estate, which hadprospered in the era of falling or very low interest rates, lagged the market and saw pricesbarely change over the year. This theme of rotation was very consistent across sectors, withthe other four under-performing areas also being interest-rate sensitives – Telecoms,Healthcare, Consumer Staples, and Utilities. Out-performing sectors apart from Materialswere Energy, Consumer Discretionary (including Autos), Financials, Industrials, andInformation Technology.

To our mind the logic behind this recovery in confidence was the inverse of what we hadseen in previous years. European corporate earnings have been under huge pressure since

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1 In brief, the dynamics of supply and demand in European bond markets are an important determinant of price:in countries such as Germany, which run a balanced budget over the cycle, the supply of bonds is necessarilyconstrained, and yet there is steady demand from pension funds, insurance and life assurance companies, andfrom banks holding their Tier 1 capital in safe instruments. Regulatory pressure on pension funds and insurancecompanies has, if anything, increased this appetite.



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INVESTMENT MANAGERS’ REPORT CONTINUED

the crisis – indeed 2017 is forecast to be the first year to see a significant rise in earningssince 2010. This serial disappointment, though, was not as much to do with domesticEuropean issues as it was to do with more global problems. Initially, bank earnings hadcome under huge pressure as banks attempted to clean up their loan books ahead ofbanking union. In 2015 and 2016, though, downward pressure on earnings had come fromMaterials and Energy, and there was a further negative impact that accrued from these pricefalls on the economies of emerging markets, many of which are commodity-intensive.Pressure on emerging market currencies reduced purchasing power, and in sectors asdiverse as Luxury Goods and Food & Beverages we saw consequent pressure on margins. Inthe second half of 2016 a lot of these factors went into reverse, and this has led to a lot ofoptimism about 2017 and 2018 earnings – optimism which we would fully endorse.

Conversations with companies indicated that there was sound fundamental backing for thisincreased confidence in the strength of the cycle, with dramatic increases in earningsexpected in the Materials and Energy sectors. We are also seeing the magic of operatingleverage working to the benefit of European companies: after years of fighting to containcosts and defend margins we are seeing an increase in revenues flow through to muchbetter profits.

At the tail end of 2016 there was a great deal of nervousness among global investors aboutthe significant elections in Europe in 2017: the Netherlands, France, and Germany were alldue to have elections in the year, and populist parties were making a good showing in

GROWTH PERFORMANCE ATTRIBUTION FOR THE YEAR ENDED 31ST MARCH 2017

% %

Contributions to total returns

Benchmark total return 27.2

Asset allocation –0.5

Stock selection 1.5

Gearing/cash –0.5

Currency –0.2

Investment manager contribution 0.3

Portfolio total return 27.5

Management fee/other expenses –1.0

Share buyback 0.1

Other effects –0.9

Net asset value total return 26.6

Share price total return 27.1

Source: B-One/JPMAM/AIC/Morningstar.

All figures are on a total return basis. Performance attribution analyses how theGrowth portfolio achieved its recorded performance relative to its benchmark.



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opinion polls. We always thought, however, that it would be a very tall order for populistparties to break through, and so far in France and the Netherlands our confidence hasproven well-founded. We also see the election in Germany as returning a market-friendlyoutcome in November, and we believe that this reassessment of political risk will reassureforeign investors who have either shunned Europe in recent years or actively removedinvestments.

Valuations do not look like a significant obstacle: earnings multiples look in line with longrun averages, with the following wind of rising earnings. Dividend yield looks fairly attractivein outright terms, but compared to bonds or cash appears very tempting, and as withearnings we are expecting growth in dividends both this year and next.

INCOME PERFORMANCE ATTRIBUTION FOR THE YEAR ENDED 31ST MARCH 2017

% %

Contributions to total returns

Benchmark total return 27.2

Asset allocation 0.9

Stock selection 0.5

Gearing/cash 0.8

Currency –0.1

Investment manager contribution 2.1

Portfolio total return 29.3

Management fee/other expenses –1.1

Other effects –1.1

Net asset value total return 28.2

Share price total return 23.2

Source: B-One/JPMAM/AIC/Morningstar.

All figures are on a total return basis. Performance attribution analyses how theIncome portfolio achieved its recorded performance relative to its benchmark.


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All in all the picture looks fairly compelling in our view, and we expect that our disciplinedapproach to investing in both the Growth and the Income share classes will repay investors.

Stephen Macklow-SmithAlexander Fitzalan HowardMichael BarakosThomas BuckinghamInvestment Managers 12th June 2017



GROWTH SHARES


SUMMARY OF RESULTS

2017 2016

Total returns for the year ended 31st March

Return to shareholders1 +27.1% –8.8%Return on net assets2 +26.6% –1.6%Benchmark return3 +27.2% –5.3%

Net asset value, share price and discount at 31st March % change

Total net assets (£’000) 248,601 202,165 +23.0Net asset value per share with debt at par value4 321.9p 259.7p +24.0Net asset value per share with debt at fair value4 315.4p 253.3pShare price 285.0p 230.5p +23.6Share price discount to net asset value per share with debt at par value4,5 11.5% 11.2%Share price discount to net asset value per share with debt at fair value4 9.6% 9.0%Shares in issue 77,220,608 77,833,926

Revenue for the year ended 31st March

Gross revenue (£’000) 7,640 6,476 +18.0Net revenue attributable to shareholders (£’000) 5,242 4,561 +14.9Return per share4 6.75p 5.37p +25.7Dividend per Growth share:Ordinary dividends 6.85p 5.85p +17.1

Gearing at 31st March4 5.9% 11.0%

Ongoing Charges4 1.02% 1.06%1 Source: Morningstar.2 Source: J.P. Morgan, using net asset value per share, cum income, with debt at par value.3 Source: MSCI. The Growth portfolio’s benchmark is the MSCI Europe ex UK Index (total return) in sterling terms.4 See Alternative Performance Measures on page 96 for further details.5 The share price discount on capital-only net asset value was 11.0% (2016: 11.1%). Source: Bloomberg.



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GROWTH SHARES

TEN YEAR FINANCIAL RECORD

At 31st March 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total assets less current liabilities (£m) 454.1 420.0 272.3 315.7 249.9 187.7 206.3 241.2 230.3 228.5 274.6

Net asset value per share (p)1 248.8 238.8 142.1 207.2 222.9 186.3 215.3 257.3 270.2 259.7 321.9

Share price (p) 233.8 219.0 116.5 183.8 193.0 164.0 194.0 233.0 259.0 230.5 285.0

Discount (%) 6.0 8.3 18.0 11.3 13.4 12.0 9.9 9.4 4.1 11.2 11.5

Gearing (%) 5.1 17.0 5.7 3.6 8.1 3.1 5.4 8.1 7.7 11.0 5.9

Year ended 31st March

Gross revenue (£’000) 15,111 13,799 17,858 9,146 8,083 9,634 7,452 8,018 8,597 6,476 7,640

Revenue per share (p) 5.71 5.07 9.54 4.79 4.93 7.28 6.00 6.64 7.90 5.37 6.75

Dividend per share (p) 5.80 6.33 9.502 4.85 4.90 6.75 5.95 6.70 6.70 5.85 6.85

Ongoing Charges (%)3 0.69 1.05 0.81 1.05 0.98 0.74 0.87 0.86 1.04 1.06 1.02

Ongoing Charges (%)4 1.24 1.05 0.81 1.05 1.38 0.75 1.54 1.95 N/A N/A N/A

Rebased to 100 at 31st March 2007

Return to shareholders5 100.0 96.4 54.9 89.2 96.4 85.7 105.2 130.5 149.5 136.4 173.4

Return on net assets5 100.0 98.6 60.2 92.5 102.1 88.2 105.8 130.2 140.5 134.9 170.8

Benchmark6 100.0 102.5 70.6 104.0 111.2 97.8 114.0 133.4 142.7 135.2 172.0

1 Source: J.P. Morgan, using net asset value per share, cum income, with debt at par value.2 Includes a special dividend of 2.5p.3 Management fee and all other operating expenses, excluding finance costs and any performance fee payable (performance fee terminated with effect from 1st April 2014),

expressed as a percentage of the average of the daily net assets during the year (2010 to 2012: Total Expense Ratio (‘TER’): the average of the month end net assets; 2009 andprior years: the average of the opening and closing net assets).

4 Ongoing charges including performance fee element. The above figures include management fee, any performance fee payable and all other operating expenses, excludingfinance costs, expressed as a percentage of the average of the daily net assets during the year (2010 to 2012: Total Expense Ratio (‘TER’): the average of the month end net assets;2009 and prior years: the average of the opening and closing net assets).

5 Source: Morningstar.6 Source: MSCI. The Growth portfolio’s benchmark is the MSCI Europe ex UK Index (total return) in sterling terms. Prior to 26th March 2013 the Growth portfolio’s benchmark was

the FTSE All World Developed Europe (ex UK) Index in sterling terms.




GROWTH SHARES

TEN LARGEST EQUITY INVESTMENTS AT 31ST MARCH

2017 2016 Valuation ValuationCompany Country Sector £’000 %1 £’000 %1

Nestle Switzerland Consumer Staples 12,114 4.6 7,633 3.4 JPMorgan European Smaller

Companies Trust European Funds Financials 9,217 3.5 7,664 3.4 Siemens2 Germany Industrials 8,235 3.1 379 0.2 Sanofi France Health Care 7,573 2.9 5,879 2.6 Roche Switzerland Health Care 6,558 2.5 7,202 3.2 BNP Paribas France Financials 6,555 2.5 4,352 1.9 ING Netherlands Financials 5,952 2.3 4,383 2.0 UBS3 Switzerland Financials 5,774 2.2 — —ABB2 Switzerland Industrials 5,604 2.1 832 0.4 BASF2 Germany Materials 5,040 1.9 331 0.1

Total4 72,622 27.6

1 Based on total investments of £263.3m (2016: £224.4m).2 Not included in ten largest equity investments at 31st March 2016.3 Not held in the portfolio at 31st March 2016.4 At 31st March 2017, cash and cash equivalents amount to £18.8m (2016: £11.0m). At 31st March 2016, the value of the ten largest equity investments amounted to £60.2m,

representing 26.8% of total investments of £224.4m.



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GROWTH SHARES

PORTFOLIO ANALYSES

Geographical 31st March 2017 31st March 2016 Portfolio Benchmark Portfolio Benchmark %1 % %1 %

France 22.7 22.4 20.6 21.9 Germany 21.6 20.9 18.1 20.1 Switzerland 19.1 19.2 14.5 20.0 Netherlands2 6.4 7.3 9.8 6.8 Spain 6.3 7.4 5.1 6.9 Sweden 6.1 6.3 8.8 6.5 Denmark 5.8 3.6 5.5 4.4 Italy 2.7 4.8 6.5 4.8 Finland 2.4 2.1 3.0 2.2 Norway 2.1 1.4 1.1 1.3 Belgium 1.9 2.5 3.9 3.2 United Kingdom2 1.0 0.3 0.7 —Ireland 0.8 1.0 1.3 1.1 Austria 0.5 0.4 — 0.4 Russia 0.3 — 0.3 —Portugal 0.1 0.3 0.6 0.4 Poland 0.1 — 0.1 —Turkey 0.1 — 0.1 —Luxembourg — 0.1 — —

Total Portfolio3 100.0 100.0 100.0 100.0

1 Based on total investments of £263.3m (2016: £224.4m) - See page 57.2 RELX was reclassified from Netherlands in the prior period to United Kingdom in the current period.3 Includes investments in European funds which are reclassified in accordance with the domicile of the underlying asset in the fund.



GROWTH SHARES


PORTFOLIO ANALYSES CONTINUED

Sector

31st March 2017 31st March 2016 Portfolio Benchmark Portfolio Benchmark %1 % %1 %

Financials 21.2 20.1 21.8 20.2 Industrials2,3 19.7 15.1 19.3 14.0 Consumer Discretionary3 12.3 11.6 13.8 12.4 Health Care 10.4 13.7 12.9 14.9 Materials2 9.4 8.3 4.5 7.4 Information Technology 8.6 5.9 4.3 5.4 Consumer Staples 8.5 12.6 11.4 13.6 Energy 4.7 4.2 2.8 3.8 Utilities 2.9 3.3 5.4 3.7 Telecommunications Services 2.3 3.9 3.8 4.6 Real Estate — 1.3 — —

Total Portfolio4 100.0 100.0 100.0 100.0

1 Based on total investments of £263.3m (2016: £224.4m) — See page 57.2 Covestro was reclassified from Industrials in the prior period to Materials in the current period.3 RELX and Wolters Kluwer were reclassified from Consumer Discretionary in the prior period to Industrials in the current period.4 Includes investments in European funds which are reclassified in accordance with the industry of the underlying asset in the fund.


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GROWTH SHARES

LIST OF INVESTMENTS AT 31ST MARCH 2017

FranceSanofi 7,573BNP Paribas 6,555Total 4,084Societe Generale 3,853Cie Generale des Etablissements Michelin 3,849Capgemini 3,749Vinci 3,364AXA 3,163Peugeot 2,447APERAM 2,344LVMH Moet Hennessy Louis Vuitton 2,130Renault 2,062Credit Agricole 1,671Orange 1,453ArcelorMittal 1,300Valeo 1,257IPSOS 992Sodexo 978STMicroelectronics 971Natixis 826Chargeurs 694CNP Assurances 434Trigano 425Kaufman & Broad 383MGI Coutier 325Devoteam 231Eutelsat Communications 169Groupe Crit 128Total France 57,410

GermanySiemens 8,235BASF 5,040SAP 4,711Bayer 3,063Covestro 2,932Henkel 2,858Muenchener Rueckversicherungs-Gesellschaft 2,778Uniper 2,497Deutsche Telekom 2,388Allianz 2,313Continental 2,221Infineon Technologies 1,740

Dialog Semiconductor 1,546Schaeffler 1,497Jenoptik 1,462STADA Arzneimittel 1,400Linde 1,304Merck 1,284Hannover Rueck 1,038E.ON 874Software 863Volkswagen 709Freenet 542VERBIO Vereinigte BioEnergie 491Suedzucker 390Deutsche Beteiligungs 362Siltronic 336Hochtief 276Deutsche Lufthansa 202CropEnergies 168Deutsche Bank 31Total Germany 55,551

SwitzerlandNestle 12,114Roche 6,558UBS 5,774ABB 5,604Adecco 4,018Novartis 3,485Actelion 2,882Forbo 2,023Syngenta 1,745Julius Baer 1,342Swiss Re 898Bobst 702Zurich Insurance 554Logitech International 335Metall Zug 326GAM 305Credit Suisse 178Coltene 126Total Switzerland 48,969

ValuationCompany £’000




GROWTH SHARES

SpainEndesa 4,115Repsol 3,339Aena 3,233Banco Santander 1,522Cia de Distribucion Integral Logista 1,240ACS Actividades de Construccion y Servicios 949Mediaset Espana Comunicacion 650Abertis Infraestructuras 587Mapfre 376Telefonica 364eDreams ODIGEO 246Azkoyen 75Total Spain 16,696

NetherlandsING 5,952BE Semiconductor Industries 3,366ASR Nederland 2,180Unilever, CVA 1,692Philips Lighting 1,136NN 620Wolters Kluwer 504NXP Semiconductors 401Delta Lloyd 74Total Netherlands 15,925

SwedenSwedbank 2,521Electrolux 2,409Sandvik 2,298Alfa Laval 2,243Atlas Copco 1,248Nordea Bank 1,097Boliden 1,092JM 587SKF 407Oriflame 327New Wave 277KNOW IT 168KappAhl 107Nobina 72Total Sweden 14,853

DenmarkDanske Bank 4,428Vestas Wind Systems 4,122Dfds 2,802Scandinavian Tobacco 950TDC 826Novo Nordisk 592Schouw 551Total Denmark 14,271

European FundsJPMorgan European Smaller Companies Trust 9,217JPMorgan Europe Dynamic Small Cap Fund 3,769JPMorgan Emerging Europe Equity Fund 1,193Total European Funds 14,179

FinlandUPM-Kymmene 3,696Outokumpu 903Stora Enso 740DNA 544CapMan 168Total Finland 6,051

BelgiumKBC 1,747Bekaert 1,531D’ieteren 701Econocom 683EVS Broadcast Equipment 288Total Belgium 4,950

NorwaySubsea 7 1,861Marine Harvest 1,198Norway Royal Salmon 434Salmar 376Grieg Seafood 362Kvaerner 181Olav Thon Eiendomsselskap 94Total Norway 4,506


LIST OF INVESTMENTS CONTINUED




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GROWTH SHARES

ItalyPrysmian 1,893Technogym 975Azimut 808Fiat Chrysler Automobiles 569Unipol Gruppo Finanziario 144Ascopiave 101Total Italy 4,490

IrelandCRH 1,051Ryanair 702C&C 196Total Produce 130Total Ireland 2,079

United KingdomRELX 1,643Total United Kingdom 1,643

AustriaOMV 1,186Lenzing 227Total Austria 1,413

PortugalAltri 335Total Portugal 335Total Investments 263,3211

1 See page 57.




GROWTH SHARES

STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)FOR THE YEAR ENDED 31ST MARCH 2017

2017 2016Revenue Capital Total Revenue Capital Total£’000 £’000 £’000 £’000 £’000 £’000

Gains/(losses) on investments and derivatives held at fair value through profit or loss — 49,029 49,029 — (5,728) (5,728)

Net foreign currency gains/(losses) — 224 224 — (1,810) (1,810)Income from investments 7,626 — 7,626 6,407 — 6,407Interest receivable and similar income 52 — 52 77 — 77

Gross return/(loss) 7,678 49,253 56,931 6,484 (7,538) (1,054)Management fee (538) (1,255) (1,793) (530) (1,237) (1,767)Other administrative expenses (506) — (506) (547) — (547)

Net return/(loss) on ordinary activities before finance costs and taxation 6,634 47,998 54,632 5,407 (8,775) (3,368)

Finance costs (255) (595) (850) (157) (366) (523)

Net return/(loss) on ordinary activities before taxation 6,379 47,403 53,782 5,250 (9,141) (3,891)

Taxation (1,137) — (1,137) (689) — (689)

Net return/(loss) on ordinary activities after taxation 5,242 47,403 52,645 4,561 (9,141) (4,580)

Return/(loss) per Growth share 6.75p 61.08p 67.83p 5.37p (10.77)p (5.40)p

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



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GROWTH SHARES

STATEMENT OF FINANCIAL POSITION (UNAUDITED) AT 31ST MARCH 2017

2017 2016 £’000 £’000

Fixed assets Investments held at fair value through profit or loss 263,321 224,449 Current assets Derivative financial assets 56 487Debtors 764 863Cash and cash equivalents 18,765 11,038

19,585 12,388Current liabilitiesCreditors: amounts falling due within one year (8,279) (8,082)Derivative financial liabilities (12) (298)

Net current assets 11,294 4,008

Total assets less current liabilities 274,615 228,457

Creditors: amounts falling due after more than one year (26,014) (26,292)

Net assets 248,601 202,165

Net asset value per Growth share 321.9p 259.7p



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SUMMARY OF RESULTS

2017 2016

Total returns for the year ended 31st March

Return to shareholders1 +23.2% –3.5%Return on net assets2 +28.2% –1.1%Benchmark return3 +27.2% –5.3%

Net asset value, share price and discount at 31st March % change

Total net assets (£’000) 159,354 128,702 +23.8Net asset value per share with debt at par value4 169.9p 137.1p +23.9Net asset value per share with debt at fair value4 166.5p 134.4pShare price 150.5p 127.0p +18.5Share price discount to net asset value per share with debt at par value4,5 11.4% 7.4%Share price discount to net asset value per share with debt at fair value4 9.6% 5.5%Shares in issue 93,769,494 93,884,791

Revenue for the year ended 31st March

Gross revenue (£’000) 7,230 4,877 +48.2Net revenue attributable to shareholders (£’000) 5,572 3,757 +48.3Return per share 5.94p 4.67p +27.2Dividend per Income share:Ordinary dividends 5.00p 4.75p +5.3

Gearing at 31st March4 8.2% 8.1%

Ongoing Charges4 1.05% 1.08%

1 Source: Morningstar.2 Source: J.P. Morgan, using net asset value per share, cum income, with debt at par value.3 Source: MSCI. The Income portfolio’s benchmark is the MSCI Europe ex UK Index (total return) in sterling terms.4 See Alternative Performance Measures on page 96 for further details.5 The share price discount on capital-only net asset value was 10.0% (2016: 6.5%). Source: Bloomberg.



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TEN YEAR FINANCIAL RECORD

At 31st March 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total assets less current liabilities (£m) 90.8 87.3 41.0 76.9 63.5 61.9 68.3 86.3 114.7 141.8 175.9

Net asset value per share (p)1 120.4 108.4 70.2 106.3 109.6 96.9 110.4 134.6 143.6 137.1 169.9

Share price (p) 112.5 98.0 60.3 94.5 97.3 86.5 99.8 123.0 136.5 127.0 150.5

Discount (%) 6.6 9.6 14.1 8.8 11.3 10.7 9.6 8.6 4.9 7.4 11.4

Gearing (%) 2.7 6.1 4.3 5.3 10.0 7.1 14.4 5.4 7.5 8.1 8.2

Year ended 31st March

Gross revenue (£’000) 1,447 3,552 4,382 2,986 2,827 3,375 3,255 3,818 4,127 4,877 7,230

Revenue per share (p) 1.32 3.67 5.48 3.92 3.87 4.56 4.29 4.82 4.60 4.67 5.94

Dividend per share (p) 2.90 3.90 5.152 4.00 4.00 4.20 4.25 4.75 4.75 4.75 5.00

Ongoing Charges (%)3 0.79 1.23 1.19 1.21 1.18 1.12 1.06 1.06 1.08 1.08 1.05

Ongoing Charges (%)4 0.81 1.23 1.19 1.48 1.59 1.18 1.26 1.93 N/A N/A N/A

Rebased to 100 at 31st March 2007

Return to shareholders5 100.0 90.6 59.9 98.3 105.9 99.2 120.3 154.9 178.7 172.4 212.4

Return on net assets5 100.0 92.7 62.7 100.4 108.0 100.0 119.1 151.1 167.2 162.1 207.8

Benchmark6 100.0 98.9 68.7 101.3 108.0 100.1 116.2 135.9 145.4 137.8 175.3

1 Source: J.P. Morgan, using net asset value per share, cum income, with debt at par value.2 Includes a special dividend of 1.15p.3 Management fee and all other operating expenses, excluding finance costs and any performance fee payable (performance fee terminated with effect from 1st April 2014),

expressed as a percentage of the average of the daily net assets during the year (2010 to 2012: Total Expense Ratio (‘TER’): the average of the month end net assets; 2009 andprior years: the average of the opening and closing net assets).

4 Ongoing charges including performance fee element. The above figures include management fee, performance fee payable, and all other operating expenses, excluding financecosts, expressed as a percentage of the average of the daily net assets during the year (2010 to 2012: Total Expense Ratio (‘TER’): the average of the month end net assets; 2009and prior years: the average of the opening and closing net assets).

5 Source: Morningstar.6 Source: MSCI. The Income portfolio’s benchmark is the MSCI Europe ex UK Index (total return) in sterling terms. Prior to 26th March 2013 the Income portfolio’s benchmark was

the MSCI Europe Index (total return) in sterling terms.




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TEN LARGEST EQUITY INVESTMENTS AT 31ST MARCH

2017 2016 Valuation ValuationCompany Country Sector £’000 %1 £’000 %1

Roche Switzerland Health Care 5,286 3.1 2,667 1.9 Total2 France Energy 3,784 2.2 — —Sanofi France Health Care 3,574 2.1 2,734 2.0 Siemens Germany Industrials 3,296 1.9 2,484 1.8 Banco Santander2 Spain Financials 3,109 1.8 — —Allianz Germany Financials 3,021 1.8 2,477 1.8 BASF2 Germany Materials 2,942 1.7 — —Daimler Germany Consumer Discretionary 2,494 1.4 2,492 1.8 BNP Paribas France Financials 2,469 1.4 1,741 1.2 ING Netherlands Financials 2,113 1.2 1,645 1.2

Total3 32,088 18.6

1 Based on total investments of £172.5m (2016: £139.2m) - See page 57.2 Not held in the portfolio at 31st March 2016.3 At 31st March 2017, cash and cash equivalents amounts to £7.2m (2016: £5.5m). At 31st March 2016, the value of the ten largest equity investments amounted to £21.9m,

representing 15.7% of total investments of £139.2m.



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PORTFOLIO ANALYSIS

Geographical 31st March 2017 31st March 2016 Portfolio Benchmark Portfolio Benchmark %1 % %1 %

France 15.9 22.4 15.6 21.9 Germany 15.2 20.9 15.1 20.1 Switzerland 11.6 19.2 9.8 20.0 Spain 11.5 7.4 7.0 6.9 Sweden 10.0 6.3 7.6 6.5 Italy 8.8 4.8 9.2 4.8 Finland 7.2 2.1 8.9 2.2 Netherlands 6.6 7.3 8.8 6.8 Norway 6.5 1.4 9.7 1.3 Belgium 2.1 2.5 4.1 3.2 Portugal 1.9 0.3 1.5 0.4 Denmark 1.6 3.6 1.6 4.4 Austria 0.6 0.4 0.7 0.4 Ireland 0.5 1.0 0.4 1.1 United Kingdom — 0.3 — —Luxembourg — 0.1 — —

Total Portfolio 100.0 100.0 100.0 100.0

1 Based on total investments of £172.5m (2016: £139.2m) - See page 57.



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PORTFOLIO ANALYSIS CONTINUED

Sector

31st March 2017 31st March 2016 Portfolio Benchmark Portfolio Benchmark %1 % %1 %

Financials 34.5 20.1 33.8 20.2 Industrials 17.6 15.1 16.5 14.0 Consumer Discretionary 8.8 11.6 11.4 12.4 Energy 6.7 4.2 3.1 3.8 Utilities 6.5 3.3 9.8 3.7 Health Care 5.5 13.7 4.2 14.9 Materials 5.2 8.3 2.8 7.4 Consumer Staples 4.7 12.6 8.0 13.6 Real Estate 4.2 1.3 — —Telecommunications 4.2 3.9 7.0 4.6 Information Technology 2.1 5.9 3.4 5.4

Total Portfolio 100.0 100.0 100.0 100.0

1 Based on total investments of £172.5m (2016: £139.2m) – See page 57.


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LIST OF INVESTMENTS AT 31ST MARCH 2017

FranceTotal 3,784Sanofi 3,574BNP Paribas 2,469AXA 1,903Societe Generale 1,621Vinci 1,468Cie de Saint-Gobain 1,124Cie Generale des Etablissements Michelin 1,013Renault 848CNP Assurances 838Credit Agricole 838Bouygues 675Natixis 660Rubis 600SCOR 600Eutelsat Communications 562Edenred 530Fonciere Des Regions 452Amundi 431Metropole Television 429Neopost 428Casino Guichard Perrachon 397Gaztransport Et Technigaz 396Albioma 387Sword 354Altarea 351Assystem 302Societe Fonciere Lyonnaise 241GL Events 111Seche Environnement 77Amundi 20Total France 27,483

GermanySiemens 3,296Allianz 3,021BASF 2,942Daimler 2,494Deutsche Telekom 1,938BMW 1,396Muenchener Rueckversicherungs-Gesellschaft 1,317Deutsche Post 1,312Hannover Rueck 867E.ON 839Talanx 697Hugo Boss 523Deutsche Lufthansa 511Evonik Industries 475TLG Immobilien 453Deutsche Beteiligungs 422Deutsche Pfandbriefbank 416Leifheit 413Aareal Bank 411Freenet 407TAG Immobilien 391Amadeus Fire 375Capital Stage 363WashTec 356Steinhoff International 349Uniper 150Telefonica Deutschland 58Total Germany 26,192





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SwitzerlandRoche 5,286UBS 2,111ABB 1,699Zurich Insurance 1,550Swiss Re 1,440Credit Suisse 1,235Swiss Life 770Cembra Money Bank 734Adecco 699Baloise 582Inficon 424Valora 406Forbo 405Banque Cantonale Vaudoise 383Burkhalter 378Helvetia 373Mobilezone 367Intershop 365Schweiter Technologies 362Mobimo 361Total Switzerland 19,930

SpainBanco Santander 3,109Banco Bilbao Vizcaya Argentaria 1,964Telefonica 1,842Iberdrola 1,605CaixaBank 1,040Repsol 1,010Banco de Sabadell 770Abertis Infraestructuras 741Aena 729Cia de Distribucion Integral Logista 684ACS Actividades de Construccion y Servicios 661Endesa 616Mapfre 612Bankia 565Distribuidora Internacional de Alimentacion 563Enagas 534

International Consolidated Airlines 513Ence Energia y Celulosa 435Acciona 427Atresmedia Corp de Medios de Comunicacion 417Mediaset Espana Comunicacion 414Tecnicas Reunidas 378Papeles y Cartones de Europa 256Total Spain 19,885

SwedenNordea Bank 1,418Swedbank 980Svenska Handelsbanken 971Skandinaviska Enskilda Banken 889Coor Service Management 678Nobina 611Skanska 561SKF 551Acando 542HIQ International 509ICA Gruppen 501Peab 456Inwido 429Com Hem 421Nobia 419Modern Times 413JM 392Nolato 384Bonava 383NCC 383NP3 Fastigheter 381Oriflame 375Bufab 374Dios Fastigheter 374Dustin 366Castellum 364Kindred Group SDR 361Nordic Waterproofing 360Betsson 359Nordax 351






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Resurs 351Hemfosa Fastigheter 336Catella 234Wihlborgs Fastigheter 222Duni 211Beijer Alma 157Bulten 112Klovern 53Total Sweden 17,232

ItalyEni 1,571Intesa Sanpaolo 1,501Enel 1,453Assicurazioni Generali 1,111Iren 692Mediobanca 652Ascopiave 645Terna Rete Elettrica Nazionale 625ASTM 574Astaldi 564Unipol Gruppo Finanziario 563FinecoBank Banca Fineco 518Hera 517Societa Cattolica di Assicurazioni 453Societa Iniziative Autostradali e Servizi 429ERG 416Azimut 412A2A 411Banca Mediolanum 409EI Towers 399Enav 396Banca Generali 386Saras 382Italgas 140Total Italy 15,219

FinlandUPM-Kymmene 1,039Sampo 1,004Stora Enso 793Nokian Renkaat 736Kesko 668Asiakastieto 641Orion 598Elisa 556Metso 540Neste 479Ramirent 442Tikkurila 407Citycon 383Technopolis 366Cargotec 365Kemira 356DNA 353Lassila & Tikanoja 351Tokmanni 347Sponda 342Cramo 338Uponor 328Aspo 319Atria 307CapMan 251Fiskars 167Total Finland 12,476






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NetherlandsING 2,113Koninklijke Ahold Delhaize 1,088Unilever 976NN 678Koninklijke KPN 666BE Semiconductor Industries 650Aegon 633ABN AMRO 593Randstad 514Accell Group 501ASR Nederland 439ForFarmers 426Royal Dutch Shell 412Philips Lighting 411Van Lanschot 392PostNL 386Flow Traders 283Delta Lloyd 273Total Netherlands 11,434

NorwayStatoil 886DNB 808SpareBank 1 Nord Norge 683Yara International 590Norway Royal Salmon 501AF Gruppen 500SpareBank 1 485Marine Harvest 478Stolt-Nielsen 465SpareBank 1 SR-Bank 465Wilh Wilhelmsen 443Atea 437Veidekke 398Ekornes 356Storebrand 355Entra 350Selvaag Bolig 331Sparebanken More 331Aker BP 330Grieg Seafood 300Bakkafrost 293

Ocean Yield 286Leroy Seafood 282Austevoll Seafood 280Sparebanken Vest 258Salmar 244Total Norway 11,135

BelgiumKBC 1,093Solvay 648Ageas 597Proximus 532Atenor 394EVS Broadcast Equipment 371Total Belgium 3,635

PortugalEDP – Energias de Portugal 750Galp Energia 600Corticeira Amorim 513REN – Redes Energeticas Nacionais 511Navigator 474Altri 444Total Portugal 3,292

DenmarkDanske Bank 1,113Alm Brand 496Sydbank 417Spar Nord Bank 381Scandinavian Tobacco 373Total Denmark 2,780

AustriaOMV 545UNIQA Insurance 470Total Austria 1,015

IrelandIrish Residential Properties 396Green 389Total Ireland 785Total Investments 172,4931




1 See page 57.


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STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)FOR THE YEAR ENDED 31ST MARCH 2017

2017 2016Revenue Capital Total Revenue Capital Total£’000 £’000 £’000 £’000 £’000 £’000

Gains/(losses) on investments and derivatives held at fair value through profit or loss — 30,765 30,765 — (3,049) (3,049)

Net foreign currency losses — (275) (275) — (609) (609)Income from investments 7,207 — 7,207 4,812 — 4,812Interest receivable and similar income 51 — 51 70 — 70

Gross return/(loss) 7,258 30,490 37,748 4,882 (3,658) 1,224Management fee (480) (721) (1,201) (367) (550) (917)Other administrative expenses (308) — (308) (261) — (261)

Net return/(loss) on ordinary activities before finance costs and taxation 6,470 29,769 36,239 4,254 (4,208) 46

Finance costs (201) (301) (502) (102) (153) (255)

Net return/(loss) on ordinary activities before taxation 6,269 29,468 35,737 4,152 (4,361) (209)

Taxation (696) — (696) (395) — (395)

Net return/(loss) on ordinary activities after taxation 5,573 29,468 35,041 3,757 (4,361) (604)

Return/(loss) per Income share 5.94p 31.40p 37.34p 4.67p (5.42)p (0.75)p

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


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JPMORGAN EUROPEAN INVESTMENT TRUST PLC. ANNUAL REPORT & ACCOUNTS 2017

STATEMENT OF FINANCIAL POSITION (UNAUDITED) AT 31ST MARCH 2017

2017 2016 £’000 £’000

Fixed assets Investments held at fair value through profit or loss 172,493 139,182Current assets Derivative financial assets 338 256Debtors 1,046 1,223Cash and cash equivalents 7,155 5,545

8,539 7,024Current liabilitiesCreditors: amounts falling due within one year (5,142) (4,101)Derivative financial liabilities (6) (271)

Net current assets 3,391 2,652

Total assets less current liabilities 175,884 141,834

Creditors: amounts falling due after more than one year (16,530) (13,132)

Net assets 159,354 128,702

Net asset value per Income share 169.9p 137.1p



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The aim of the Strategic Report is to provide shareholders with theability to assess how the Directors have performed their duty topromote the success of the Company during the year under review.The following Business Review aims to assist shareholders with thisassessment.

Structure and Objective of the CompanyJPMorgan European Investment Trust plc is an investment trustcompany that has a premium listing on the London Stock Exchange.It has two share classes whose objectives are set out below. Inseeking to achieve those objectives the Company employs JPMorganFunds Limited (‘JPMF’ or the ‘Manager’) which in turn delegatesportfolio management to JPMorgan Asset Management (UK) Limited(‘JPMAM’) to actively manage the Company’s assets. The Board hasdetermined investment policies and related guidelines and limits, asdescribed below.

The Company is subject to UK and European legislation andregulations including UK company law, UK Financial ReportingStandards, the UKLA Listing, Prospectus, Disclosure andTransparency Rules, Market Abuse Regulations, taxation law andthe Company’s own Articles of Association. The Company is aninvestment company within the meaning of Section 833 of theCompanies Act 2006 and has been approved by HM Revenue &Customs as an investment trust (for the purposes of Sections 1158and 1159 of the Corporation Tax Act 2010). The Directors have noreason to believe that approval will not continue to be retained.The Company is not a close company for taxation purposes.

Investment ObjectiveGrowth PortfolioThe investment objective of the Growth portfolio is to providecapital growth and a rising share price over the longer term fromContinental European investments by consistent out-performance ofthe benchmark and taking carefully controlled risks through aninvestment method that is clearly communicated to shareholders.

Income PortfolioThe investment objective of the Income portfolio is to provide agrowing income together with the potential for long term capitalgrowth by investing in a portfolio of investments that is diversifiedamongst countries, sectors and market capitalisations within theuniverse of Continental European companies.

Investment Policies- To invest in a diversified portfolio of investments in thestockmarkets of Continental Europe.

- To manage liquidity and borrowings to increase returns toshareholders.

Growth- To emphasise capital growth rather than income, with the likelyresult that the level of dividends will fluctuate.

Income- To provide a growing income together with the potential for long-term capital growth.

Investment Restrictions and Guidelines - The portfolio will not invest more than 15% (Growth) 6% (income)of the assets in any one individual stock at the time of acquisition.

- The portfolio will be no more than 20% geared in normal marketconditions.

- The portfolio does not normally invest in unquoted investmentsand to do so requires prior Board approval.

- Except for the transactions referred to in the following paragraph,the portfolio does not normally enter into derivative transactions,and to do so requires prior Board approval. However, theInvestment Manager has authority to carry out currency hedgingtransactions in order to mitigate currency risk relative to thebenchmark index.

- Index Futures to ensure market exposure is maintained wherethere are significant cash in/out flows and Covered Call Optionsare permitted, subject to restrictions included in the Company’sInvestment Restrictions and Guidelines. All other derivativetransactions are subject to approval by the Board.

- In accordance with the Listing Rules of the UK Listing Authority,the portfolio will not invest more than 15% of its gross assets inother UK listed closed-ended investment funds and will not investmore than 10% of its gross assets in companies that themselvesmay invest more than 15% of gross assets in UK listed closed-ended investment funds.

The Board has set no minimum or maximum limits on the numberof investments in the Company’s portfolios. To gain the appropriateexposure, the Investment Managers are permitted to invest inpooled funds.

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

BUSINESS REVIEW


THE COM

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Performance Growth: In the year to 31st March 2017, the Growth portfolio produceda return to shareholders of +27.1% and a return on net assets of+26.6%. This compares with the return on the benchmark index of+27.2%. As at 31st March 2017, the value of the Company’s Growthportfolio was £263.3 million.

Income:In the year to 31st March 2017, the Income portfolio produceda return to shareholders of +23.2% and a return on net assets of+28.2%. This compares with the return on the benchmark index of+27.2%. As at 31st March 2017, the value of the Company’s Incomeportfolio was £172.5 million.

The Investment Managers’ Report on pages 7 to 9 includes a reviewof developments during the year as well as information oninvestment activity within the Company’s portfolios, together withan explanation of the performance relative to the benchmark.

Total Return, Revenue and Dividends Company:Gross total return for the year amounted to £94.6 million (2016:£0.2 million) and net total return after deducting finance costs,management expenses, other administrative expenses and taxationamounted to £87.7 million (2016: £5.2 million loss). Distributableincome for the year amounted to £10.8 million (2016: £8.3 million).

Growth: Gross total return for the year amounted to £56.9 million (2016:£1.1 million loss) and net total return, after deducting finance costs,management expenses, other administrative expenses and taxation,amounted to £52.6 million (2016: £4.6 million loss). Distributableincome for the year totalled £5.2 million (2016: £4.6 million).Dividends totalling 6.85 pence (2016: 5.85 pence) per Growth sharewere declared in respect of the year under review. Thosedistributions cost £5.3 million (2016: £5.0 million) and the revenuereserve after allowing for those dividends amounts to £1.4 million(2016: £1.4 million).

Income: Gross total return for the year amounted to £37.7 million (2016:£1.2 million) and net total return, after deducting finance costs,management expenses, other administrative expenses and taxation,amounted to £35.0 million (2016: £0.6 million loss). Distributableincome for the year totalled £5.6 million (2016: £3.8 million).Dividends totalling 5.00 pence (2016: 4.75 pence) per Income sharewere paid in respect of the year under review. Those distributionscost £4.7 million (2016: £3.8 million) and the revenue reserve afterallowing for those dividends amounts to £1.4 million (2016:£0.5 million.

Key Performance Indicators (‘KPIs’) The Board uses a number of financial KPIs to monitor and assessthe performance of the Company. The Board is provided withperformance indicators monthly and in addition, during quarterlyBoard Meetings, more detailed reviews are undertaken. Theprincipal KPIs are:

• Performance against the benchmark index: This is the most important KPI by which performance is judged.The following graphs illustrate performance against benchmarkindicators and these are further discussed in the Chairman’sStatement on page 4 and can be read together with the financialrecords for 10 years on pages 11 and 21.

Growth:Performance Relative to Benchmark IndexFIGURES HAVE BEEN REBASED TO 100 AT 31ST MARCH 2007

Source: Morningstar.

JPMorgan European Growth – share price total return.

JPMorgan European Growth – net asset value per share total return (based oncum income NAV; prior to 30th June 2008 Capital only NAV).

The benchmark is represented by the grey horizontal line (see page 2 note 3).

Ten Year PerformanceFIGURES HAVE BEEN REBASED TO 100 AT 31ST MARCH 2007

Source: Morningstar/MSCI.



Benchmark, (see page 2 note 3).

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Income:Performance Relative to Benchmark IndexFIGURES HAVE BEEN REBASED TO 100 AT 31 MARCH 2007

Source: Morningstar.



The benchmark is represented by the grey horizontal line (see page 3 note 3).

Ten Year PerformanceFIGURES HAVE BEEN REBASED TO 100 AT 31 MARCH 2007

Source: Morningstar/MSCI.



Benchmark, (see page 3 note 3).

• Performance against the Company’s peersThe principal objective of the Growth portfolio is to achievecapital growth by consistent outperformance of the benchmark.The principal objective of the Income portfolio is to providea growing income together with the potential for long-termcapital growth. However, the Board also monitors theperformance of both portfolios relative to a broad range ofcompetitor funds. The Company’s performance for the currentperiod is comparative with its peers.

• Performance attributionThe purpose of performance attribution analysis is to assess howeach portfolio achieved its performance relative to its benchmarkindex, i.e. to understand the impact on each portfolio’s relativeperformance of the various components such as asset allocation

and stock selection. Details of the attribution analyses for theyear ended 31st March 2017 are given in the InvestmentManagers’ Report on pages 7 to 9.

• Discount to net asset value (‘NAV’)The Board has for several years operated a share repurchaseprogramme that seeks to address imbalances in supply anddemand for the Company’s shares within the market andthereby seek to manage the volatility and absolute level of thediscount to NAV at which the Company’s shares trade. In theyear to 31st March 2017, the discount on the Growth shares(using cum-income month end data, with debt valued at fairvalue) ranged between 5.8% and 16.7% and the discount on theIncome shares (using cum-income month end data, with debtvalued at fair value) ranged between 6.5% and 17.6%.

Growth: (Discount)/Premium on Capital-Only NAV to Fair Value

Source: Datastream.

JPMorgan European Growth – share price discount on Capital-only net assetvalue with debt at fair value.

Income: (Discount)/Premium on Capital-Only NAV to Fair Value

Source: Datastream.

JPMorgan European Growth – share price discount on Capital-only net assetvalue with debt at fair value.

• Ongoing ChargesThe Ongoing charges represent the Company’s management feeand all other operating expenses, excluding finance costs andperformance fee payable, expressed as a percentage of theaverage of the daily net assets during the year. The Growth

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portfolio’s Ongoing charges for the year ended 31st March 2017were 1.02% (2016: 1.06%). The Income portfolio’s Ongoing chargesfor the year ended 31st March 2017 were 1.05% (2016: 1.08%).

Share CapitalThe Company has authority both to repurchase shares in the market(for cancellation or to be held in Treasury) and to issue new sharesfor cash at a premium to net asset value.

During the year 574,212 Growth shares and 185,748 Income shareswere repurchased for cancellation or into Treasury (2016: Growth nil,Income nil).

Since the year end, the Board implemented its buyback policy andpurchased a total of 30,116 Growth shares. No Income shares werebought back.

No new shares of either share class were issued during the year, orsince the year end (2016: nil).

Resolutions to renew the authorities to allot new shares and torepurchase shares for cancellation will be put to shareholders at theforthcoming AGM. The full text of the resolutions is set out in theNotice of Meeting on pages 86 and 87.

Conversions During the year, the Company’s annual share conversions took placeon 15th March 2017. The net result of those conversions was adecrease in the Growth issued share capital of 39,106 shares, andan increase in the Income issued share capital of 70,451 shares.

BorrowingThe Company has issued a €50 million Private Placement Notewith MetLife repayable on 26th August 2035 with a fixed couponrate of 2.69%. The Company also has a €15 million 364 daycommitted revolving credit facility with Scotia bank which expireson 24th August 2017.

Board DiversityWhen recruiting a new Director, the Board’s policy is to appointindividuals on merit. Diversity is important in bringing anappropriate range of skills and experience to the Board. As regardsthe gender diversity of the Board as at 31st March 2017, there werethree male Directors and two female Directors on the Board.

Employees, Social, Community, Environmental,Human Rights Issues and Greenhouse Gas EmissionsThe Company has a management contract with JPMF. It has noemployees and all of its Directors are non-executive. The day to day

activities are carried out by third parties. There are therefore nodisclosures to be made in respect of employees. The Company itselfhas no premises, consumes no electricity, gas or diesel fuel andconsequently does not have a measurable carbon footprint. The Boardnotes the JPMAM policy statements in respect of Social, Communityand Environmental and Human Rights issues and Greenhouse GasEmissions and that JPMAM, is a signatory to the Carbon DisclosureProject and JPMorgan Chase is a signatory to the Equator Principles onmanaging social and environmental risk in project finance. Seewww.jpmorganinvestmenttrusts.co.uk/governance for further details.

The Modern Slavery Act 2015 (the ‘MSA’)The MSA requires companies to prepare a slavery and humantrafficking statement for each financial year of the organisation.As the Company has no employees and does not supply goodsand services, the MSA does not apply directly to it. As JPMF andJPMAM are the principal supplier of services to the Company it maybe helpful to note that JPMorgan’s statement on Human Rights canbe found on the following website:www.jpmorganchase.com/corporate/ About-JPMC/ab-human-rights.htm

Principal RisksThe Directors have carried out a robust assessment of the principalrisks facing the Company. With the assistance of the Manager, theBoard has drawn up a risk matrix, which identifies the key risks tothe Company These key risks fall broadly under the followingcategories:

InvestmentThe Board recognises that performance of the trust’s investmentportfolio is fundamental to the success of the Company. In order toachieve the objectives given the risks inherent in investment such asmarket, gearing, currency and interest rates, investment guidelines,policies and processes are in place which aim to mitigate theserisks. They are designed to ensure that the portfolios are managedin a way which is aimed at identifying the best stocks anddiversifying risk. Regular reports are received by the Board fromthe Manager on stock selection, asset allocation, gearing, hedgingand costs of running the Company and these are reviewed at eachBoard meeting in detail. Compliance with investment guidelines andpolicies are reviewed by the manager and the Board. And discussedat each board meeting in detail together with an analysis of marketparameters effecting the business. Further details are disclosed innote 22 on pages 74 to 79.

Investment includes market risk and this arises from uncertaintyabout the future prices of the Company’s investments. It representsthe potential loss the Company might suffer through holding


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investments in the face of negative market movements. The Boardconsiders asset allocation, stock selection and levels of gearing ona regular basis and has set investment restrictions and guidelineswhich are monitored and reported on by JPMF. The Board monitorsthe implementation and results of the investment process with theManager.

Operational In common with most investment trusts the Board delegates theoperation of the business to third parties, the principal delegatebeing the Manager JPFM. Disruption to, failure of, or Fraud inJPMF’s accounting, dealing or payments systems or the Depositaryor Custodian’s records could prevent timely implementation ofinvestment decisions, and potentially shortfalls in the accuracy ofreporting and monitoring of the Company’s financial position andloss. Details of how the Board monitors the services provided byJPMF and its associates and the Depositary and Custodian and thekey elements designed to provide effective internal control areincluded within the Internal Control section of the CorporateGovernance report on page 40.

RegulatoryThe Company operates in an environment with significantregulation including UKLA Listing Rules, The UK Companies Act,the Corporation Taxes Act, Market Abuse Regulation, Disclosureand Transparency Regulations and the Alternative InvestmentFund Managers Directive (AIFMD).

There has been no significant change to this risk during the yearthough the environment as a whole is considered to be one ofincreasing costs for compliance.

Discount premium to NAVShare price discount or premium to net asset value per share couldlead to high levels of uncertainty and reduced shareholderconfidence. For further details of the Company’s action inaddressing this risk and its buyback activity and discount, pleasesee the Share Repurchase section of the Chairman’s Statement onpage 4.

Strategy The Board reviews the overall strategy and structure of thecompany in comparison to performance against benchmark, peer

group and share activity. The Board holds a separate meetingdevoted to strategy each year and include consideration of whetherthe Company’s objectives and structures are appropriate for thelong term interests of shareholders. Please see the Outlook sectionof the Chairman’s Statement on page 4 for further details.

Long Term ViabilityThe Company was established in 1929 and has now been inexistence for 88 years. This year it will be hosting its 88th AGM.

The Company is an investment trust and has the objective ofachieving long term capital growth and income investing incontinental European equities. The Company has been investingover many economic cycles and some difficult market conditions.

Although past performance and a long historic track record is noguide to the future, the Directors believe that the Company has anattractive future for investors as a long term investmentproposition. Unfortunately, it is impossible to predict too far into thefuture, so the Directors have adopted a somewhat shorter timehorizon to assess the Company’s viability, which is five years.

Five years is considered to be a suitable time horizon as it isregarded by many as a reasonable time for investing in equities.The Directors have considered the Company’s prospects over thenext five years, its principal risks and the outlook for the Europeaneconomy, its equity market and the market for investment trusts.Moreover, the existence of a 20 year private placement illustratesthe confidence that the Directors have placed in the long termviability of the Company.

The Directors confirm that they have a reasonable expectation thatthe Company will be able to continue in operation and meet itsliabilities as they fall due over the next five years until 31st March2022.

By order of the Board Paul Winship, for and on behalf of JPMorgan Funds Limited, Company Secretary

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Josephine Dixon

A Director since 1st October 2013.

Last reappointed to the Board: 2016.

Remuneration: £30,000.

Chartered accountant and a non-executive director of Standard Life Equity Income Trust plc,BB Healthcare Trust plc, Strategic Capital Trust plc, F&C Global Smaller Companies plc andVentus VCT plc. Previously held a number of senior positions within the Nat West Group and wasFinance Director of Newcastle United plc. She was Commercial Director, UK, Europe and theMiddle East at Serco Group and sat on various advisory boards in the education and charitysector. Her qualifications for Board membership are as a qualified accountant and her previousboard experience.

Connections with Manager: None.

Shared directorships with other Directors: F&C Global Smaller Companies plc.

Shareholding in Company: 7,000 Growth Shares.

Andrew Adcock (Chairman of the Board and Nomination Committee)

A Director since 1st October 2013.



Chairman of Majedie Investments Plc, VPC Speciality Lending Investment Plc and PanmureGordon & Co. plc and a non executive director of the F&C Global Smaller Companies plc, andFoxton’s plc. Also a director of the Courtauld Institute of Art and chairman of the SamuelCourtauld Trust. Previous roles include non-executive director of Kleinwort Benson GroupLimited, until July 2011, managing partner of Brompton Asset Management and vice chairmanof Citigroup Corporate Finance. He was previously a partner at Lazard LLC. His qualification forBoard membership is more than 30 years experience in the City of London.


Shared directorships with other Directors: F&C Global Smaller Companies plc.


Stephen Goldman

A Director since September 2008.



Other directorships: Has a wide experience of investing in European equities, having spent 12 yearsat NM Rothschild Asset Management, where he led the UK Equity Research team. Formerly Headof the UK Portfolio Management and the European Client Portfolio Management teams atJPMorgan and Head of Equities for the European Region at Credit Suisse Asset Management. He isa director of Cavendish Asset Management Limited.


Shared directorships with other Directors: None.


Governance

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Jutta af Rosenborg

A Director since 2015.



Jutta is currently a Non-Executive Director of Aberdeen Asset Management plc and a Director ofDet Danske Klasselotteri A/S and NKT Holdings A/S. She has held a number of senior auditingand consulting roles with firms including Deloitte in addition to directorships of listed DanishCompanies. She is a qualified Accountant with a Masters in Business from the CopenhagenBusiness School and has considerable business experience gained as a financial director ofseveral large industrial enterprises and their subsidiaries operating in Continental Europe.



Shareholding in Company: nil.

Stephen Russell A Director since 2005.



Other directorships: Spent eleven years at SLC Asset Management (now CSAM), most notably asFund Manager of £5 billion of equities, before joining HSBC Investment Bank as Head of Europe& UK Equity Strategy. He is currently Investment Director at Ruffer LLP. His qualifications forBoard membership are practical experience of investment in Europe and knowledge of both theinstitutional and private client markets.




All Directors are members of the Audit and Nomination Committees and are consideredindependent of the Manager.


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The Directors present their report and the audited financialstatements for the year ended 31st March 2017.

Management of the CompanyThe Manager and Secretary is JPMorgan Funds Limited (JPMF).Portfolio management is delegated to JPMorgan Asset Management(UK) Limited (JPMAM). JPMF is employed under a contractterminable on one year’s notice, without penalty. If the Companywishes to terminate the contract on shorter notice, the balance ofremuneration is payable by way of compensation.

JPMF and JPMAM are wholly owned subsidiaries of JPMorgan ChaseBank which, through other subsidiaries, also provides banking,dealing, marketing and custodian services to the Company.

The Board conducts a formal evaluation of the performance of, andcontractual relationship with, the Manager on an annual basis. Partof this evaluation includes a consideration of the management feesand whether the service received is value for money forshareholders. No separate management engagement committeehas been established because all Directors are considered to beindependent of the Manager and, given the nature of the Company’sbusiness, it is felt that all Directors should take part in the reviewprocess.

The Board has thoroughly reviewed the performance of theManager in the course of the year. The review covered theperformance of the Manager, its management processes,investment style, resources and risk controls and the quality ofsupport that the Company receives from the Manager including themarketing support provided. The Board is of the opinion that thecontinuing appointment of the Manager is in the best interests ofshareholders as a whole. Such a review is carried out on an annualbasis.

Management FeeGrowth Share Class The annual management fee is charged at 0.75% per annum ontotal assets less current liabilities and is calculated and paidmonthly in arrears. If the Company invests in funds managed oradvised by JPMAM or any of its associated companies, thoseinvestments are excluded from the calculation and therefore attractno fee.

Income Share Class The annual management fee is charged at 0.75% per annum ontotal assets less current liabilities and is calculated and paidmonthly in arrears. If the Company invests in funds managed oradvised by JPMAM or any of its associated companies, thoseinvestments are excluded from the calculation and therefore attractno fee.

Going Concern The Directors believe that, having considered the Company’sinvestment objectives (see page 31), future cash flow projections,risk management policies (see page 42), liquidity risk (see note22(b) on page 77), capital management policies and procedures(see page 80), nature of the portfolios and expenditure projections,the Company has adequate resources, an appropriate financialstructure and suitable management arrangements in place tocontinue in operational existence for the foreseeable future, whichis at least 12 months from approving this annual report andaccounts. For these reasons, they consider that there is reasonableevidence to continue to adopt the going concern basis in preparingthe accounts.

Directors In accordance with corporate governance best practice, all Directorswill retire by rotation at the forthcoming Annual General Meetingand, being eligible, all will offer themselves for reappointment. TheNomination Committee, having considered their qualifications,performance and contribution to the Board and its committees,confirms that each Director continues to be effective anddemonstrates commitment to the role and the Board recommendsto shareholders that they be reappointed.

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

An insurance policy is maintained by the Company whichindemnifies the Directors of the Company against certain liabilitiesarising in the conduct of their duties. There is no cover againstfraudulent or dishonest actions.

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

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

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

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

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

Capital StructureThe Company’s capital structure is summarised on page 85 of thisreport.

Voting Rights in the Company’s sharesThe percentage of total voting rights is calculated by reference tothe share voting numbers which as at 31st March 2017 were asfollows:

Growth shares: 3.219Income shares: 1.699

Details of the voting rights in the Company’s shares as at the date ofthis report are given in note 16 to the Notice of AGM on page 88.

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

% of TotalShareholders Voting Rights

1607 Capital Partners LLC 10.5Wells Capital Management 5.0

The Company is also aware that approximately 12.2% of theCompany’s total voting rights are held by individuals throughsavings products managed by JPMAM and registered in the name ofChase Nominees Limited. If those voting rights are not exercised bythe beneficial holders, in accordance with the terms and conditionsof the savings products, under certain circumstances JPMAM hasthe right to exercise those voting rights. That right is subject tocertain limits and restrictions and falls away at the conclusion of therelevant general meeting.

There were no changes after the year end to report.

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

There are no restrictions concerning the transfer of securities in theCompany; no special rights with regard to control attached to

securities; no agreements between holders of securities regardingtheir transfer known to the Company; no agreements which theCompany is party to that affects its control following a takeover bid;and no agreements between the Company and its Directorsconcerning compensation for loss of office.

Independent AuditorErnst & Young LLP have expressed their willingness to continue inoffice as auditor and a resolution to reappoint them and authorisethe Directors to determine their remuneration for the ensuing yearwill be put to shareholders at the AGM.

Annual General MeetingNOTE: THESE SECTIONS (Annual General Meeting andSeparate Class Meeting of JETG shareholders and JETIshareholders) ARE IMPORTANT AND REQUIRE YOURIMMEDIATE ATTENTION. If you are in any doubt as to theaction you should take, you should seek your own personalfinancial advice from your stockbroker, bank manager,solicitor or other financial adviser authorised under theFinancial Services and Markets Act 2000.

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

(i) Authority to allot new shares and to disapply statutorypre-emption rights (resolutions 10 and 11)

The Directors will seek renewal of the authority at the AGM to issueup to 7,719,049 new Growth shares and 9,376,949 new Incomeshares for cash up to an aggregate nominal amount of £385,952 and£234,424 respectively such amount being equivalent to 10% of thepresent issued share capital of each share class as at the lastpracticable date before the publication of this document. The fulltext of the resolutions is set out in the Notice of Meeting onpage 86. This authority will expire at the conclusion of the AGM ofthe Company in 2018 unless renewed at a prior general meeting.

It is advantageous for the Company to be able to issue new sharesto participants purchasing shares through the JPMorgan savingsproducts and also to other investors when the Directors considerthat it is in the best interests of shareholders to do so. As suchissues are only made at prices greater than the net asset value (the‘NAV’), they increase the NAV per share and spread the Company’sadministrative expenses, other than the management fee, over agreater number of shares. The issue proceeds are available forinvestment in line with the Company’s investment policies.

(ii) Authority to repurchase the Company’s Shares (resolution 12) The authority to repurchase up to 14.99% of the Company’s issuedshare capital, granted by shareholders at the 2016 AGM, will expireon 18th January 2018 unless renewed at the forthcoming AGM. The


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Directors consider that the renewal of the authority is in theinterests of shareholders as a whole as the repurchase of shares ata discount to NAV enhances the NAV of the remaining shares. TheBoard will therefore seek shareholder approval at the AGM to renewthis authority, which will last until 16th January 2019 or until thewhole of the 14.99% has been acquired, whichever is the earlier.The full text of the resolution is set out in the Notice of Meeting onpages 86 and 87. Repurchases will be made at the discretion of theBoard, and will only be made in the market at prices below theprevailing NAV per share, thereby enhancing the NAV of theremaining shares, as and when market conditions are appropriate.

(iv) Authority to make off-market purchases (resolution 13) This resolution gives the Company authority to buy its deferredshares arising on conversion of any of the Growth or Income sharesinto the other class of shares. This resolution follows therequirements of Section 694 of the Companies Act 2006. TheDeferred shares are repurchased for nominal consideration (asthey have no economic value) in order to keep the balance sheetmanageable. By law the Company can only purchase these sharesoff-market if such purchase is pursuant to a contract in the formapproved at a general meeting of the Company.

(v) Authority to change the Company’s Articles (resolution 14)Subject to the passing of special resolutions in separate classmeetings of the Company’s shareholders in the Growth Shares andIncome Shares, the Board seeks authority to adopt amendedArticles of Association, which will give the Board the power totransfer, at any time and at its sole discretion, revenue reservesfrom JETG to JETI in exchange for an equivalent amount of capitalreserves transferring from JETI to JETG.

The respective net asset value of both JETG and JETI would beunaffected by this proposed amendment and the Board’s use ofsuch power, further details of which are set out in the Chairman’sStatement on page 5.

It is proposed that the Articles of Association will also be amended:(i) to reflect the AIFMD and all applicable rules and regulationsimplementing that Directive; (ii) to include provisions to provide theCompany with the ability to require shareholders to co-operate inrespect of the exchange of information to comply with theCompany’s international tax reporting obligations; and (iii) inresponse to developments in mental health legislation and to reflectthe position in the model articles for public companies as set out inthe Companies (Model Articles) Regulations 2008/3229, to updatethe provisions relating to termination of a director’s appointment onmental health grounds. A full summary of the proposedamendments to the Existing Articles is set out in the Appendix onpage 93.

Separate Class Meetings of JETG shareholders andJETI shareholdersIn order for resolution 14 to be proposed at the AGM to becomeeffective, special resolutions approving the passing of resolution 14will require to be passed by JETG and JETI shareholders at separateclass meetings. If each of these special resolutions (along withresolution 14 to be proposed at the AGM) is passed, the Board willhave the power, as explained in further detail above and in theChairman’s Letter, to transfer, at any time and at its sole discretion,revenue reserves from JETG to JETI in exchange for an equivalentamount of capital reserves transferring from JETI to JETG.

RecommendationThe Board considers that resolutions 10 to 14 to be proposed atthe forthcoming AGM, and each of the special resolutions to beproposed at the separate class meetings of JETG and JETIshareholders, are in the best interests of shareholders as a whole.The Directors unanimously recommend that you vote in favour ofthe resolutions as they intend to do in respect of their ownbeneficial holdings which amount in aggregate to approximately0.4% of the voting rights of the Company.

Corporate Governance

Compliance The Company is committed to high standards of corporategovernance. This statement, together with the Statement ofDirectors’ Responsibilities on page 48, indicates how the Companyhas applied the principles of good governance of the FinancialReporting Council UK Corporate Governance Code (the ‘UKCorporate Governance Code’) and the AIC’s Code of CorporateGovernance, (the ‘AIC Code’), which complements the UK CorporateGovernance Code and provides a framework of best practice forinvestment trusts1.

The Board is responsible for ensuring the appropriate level ofcorporate governance and considers that the Company hascomplied with the best practice provisions of the UK CorporateGovernance Code, other than in respect of the provision relating tothe appointment of a senior independent director, and, insofar asthey are relevant to the Company’s business, and the AIC Codethroughout the year under review.

Role of the Board A management agreement between the Company and JPMF sets outthe matters over which the Manager has authority. This includesmanagement of the Company’s assets and the provision of

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1 Copies of the UK Corporate Code and the AIC Code may be found on the respective organisations’ websites: www.frc.org.uk and www.theaic.co.uk


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accounting, company secretarial, administrative, and somemarketing services. All other matters are reserved for the approvalof the Board. A formal schedule of matters reserved to the Boardfor decision has been approved. This includes determination andmonitoring of the Company’s investment objectives and policy andits future strategic direction, gearing policy, management of thecapital structure, appointment and removal of third party serviceproviders, review of key investment and financial data and theCompany’s corporate governance and risk control arrangements.

At each Board meeting, Directors’ interests are considered. Theseare reviewed carefully, taking into account the circumstancessurrounding them, and, if considered appropriate, are approved.It was resolved that there were no actual or indirect interests ofa Director which conflicted with the interests of the Company, whicharose during the year.

Following the introduction of the Bribery Act 2010 the Board hasadopted appropriate procedures designed to prevent bribery. Itconfirms that the procedures have operated effectively during theyear under review.

The Board meets on at least five occasions during the year andadditional meetings are arranged as necessary. Full and timelyinformation is provided in Board Papers and correspondence to theBoard by JPMF to enable it to function effectively and to allowDirectors to discharge their responsibilities.

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

Board Composition The Board, chaired by Andrew Adcock, consists of fivenon-executive Directors, all of whom are regarded by the Board asindependent of the Company’s Manager, including the Chairman.The Directors have a breadth of investment knowledge, businessand financial skills and experience relevant to the Company’sbusiness. Brief biographical details of each Director are set out onpages 36 and 37.

A review of Board composition and balance is included as part ofthe annual performance evaluation of the Board, details of whichmay be found below. The Board has considered whether a seniorindependent director should be appointed and has concluded that,as the Board comprises entirely of non-executive directors, this isunnecessary at present. However, the Chairman of the AuditCommittee leads the evaluation of the performance of the Chairman

and is available to shareholders if they have concerns that cannotbe resolved through discussion with the Chairman.

Tenure Directors are initially appointed until the following Annual GeneralMeeting when, under the Company’s Articles of Association, it isrequired that they be reappointed by shareholders. Thereafter,Directors are subject to annual reappointment by shareholders, inline with corporate governance best practice. The Board does notbelieve that length of service in itself necessarily disqualifiesa Director from seeking reappointment but, when makinga recommendation, the Board will take into account the ongoingrequirements of the UK Corporate Governance Code, including theneed to refresh the Board and its Committees. Not withstanding thatStephen Russell will have served as a director for over nine yearsand Stephen Goldman for nine years at the date of the 2017 AGM,the Nomination Committee agree that they continue to remainindependent in character and judgement. Accordingly, due to theirsignificantly positive contribution to the Company and knowledge ofthe industry, the Nomination Committee agreed that it would be inthe best interest of the Company that their appointment continue.

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

Induction and TrainingOn appointment, the Manager and Company Secretary provide allDirectors with induction training. Thereafter, regular briefings areprovided on changes in law and regulatory requirements that affectthe Company and the Directors. Directors are encouraged to attendindustry and other seminars covering issues and developmentsrelevant to investment trust companies. Regular reviews of theDirectors’ training needs are carried out by the Chairman by meansof the evaluation process described below.

Meetings and Committees The Board delegates certain responsibilities and functions tocommittees. Details of membership of committees are shown withthe Directors’ profiles on pages 36 and 37.

The table below details the number of Board and Committeemeetings attended by each Director. During the year there were fivefull Board meetings, including a private meeting of the Directors toevaluate the Manager and a separate meeting devoted to strategy.There were also two Audit Committee meetings and one meeting ofthe Nomination Committee during the year.


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Audit NominationBoard Committee Committee

Meetings Meetings MeetingsDirector Attended Attended Attended

Andrew Adcock 5 2 1Josephine Dixon 5 2 1Stephen Goldman 5 2 1Jutta af Rosenborg 5 2 1Stephen Russell 5 2 1

Board Committees Nomination Committee The Nomination Committee, chaired by Andrew Adcock, consists ofall of the Directors and meets at least annually to ensure that theBoard has an appropriate balance of skills and experience to carryout its fiduciary duties and to select and propose suitablecandidates for appointment when necessary. The appointmentprocess takes account of the benefits of diversity, including gender.A variety of sources, including the use of external searchconsultants, may be used to ensure that a wide range of candidatesis considered.

The Committee conducts an annual performance evaluation of theBoard, its committees and individual Directors to ensure that allDirectors have devoted sufficient time and contributed adequatelyto the work of the Board and its Committees. The evaluation of theBoard considers the balance of experience, skills, independence,corporate knowledge, its diversity, including gender, and how itworks together. Questionnaires, drawn up by the Board, with theassistance of JPMF, are completed by each Director. The responsesare collated and then discussed by the Committee. The evaluation ofindividual Directors is led by the Chairman. The Audit CommitteeChairman leads the evaluation of the Chairman’s performance.

The Committee also reviews Directors’ fees and makesrecommendations to the Board as and when required.

Audit Committee The Audit Committee Report is set out on page 44.

Both the Nomination Committee and the Audit Committee havewritten terms of reference which define clearly their respectiveresponsibilities, copies of which are available for inspection at theCompany’s website, on request at the Company’s registered officeand at the Company’s Annual General Meeting.

Relations with Shareholders The Board regularly monitors the shareholder profile of theCompany. It aims to provide shareholders with a full understandingof the Company’s activities and performance and reports formally toshareholders each year by way of the annual report and accounts,and half year financial report. This is supplemented by the dailypublication, through the London Stock Exchange, of the net assetvalue of the Company’s shares.

All shareholders are encouraged to attend the Company’s AnnualGeneral Meeting at which the Directors and representatives of theManagers are available in person to meet with shareholders andanswer their questions. In addition, a presentation is given by theInvestment Managers who review the Company’s performance.During the year the Company’s brokers, the Investment Managersand JPMF hold regular discussions with larger shareholders. TheDirectors are made fully aware of their views. The Chairman andDirectors make themselves available as and when required toaddress shareholder queries. The Directors may be contactedthrough the Company Secretary whose details are shown onpage 99. Questions can also be raised through the link on theCompany’s website www.jpmeuropean.co.uk.

The Company’s Annual Report and Accounts is published in time togive shareholders at least 20 working days’ notice of the AnnualGeneral Meeting. Shareholders wishing to raise questions inadvance of the meeting are encouraged to submit questions viathe Company’s website or write to the Company Secretary at theaddress shown on page 99. Details of the proxy voting position oneach resolution will be published on the Company’s website shortlyafter the Annual General Meeting.

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

The Directors are responsible for the Company’s system of riskmanagement and internal control which is designed to safeguardthe Company’s assets, maintain proper accounting records andensure that financial information used within the business, orpublished, is reliable. However, such a system can only be designedto manage rather than eliminate the risk of failure to achievebusiness objectives and therefore can only provide reasonable, butnot absolute, assurance against fraud, material mis-statement or loss.

Since investment management, custody of assets and alladministrative services are provided to the Company by JPMF andits associates, the Company’s system of risk management andinternal control mainly comprises monitoring the servicesprovided by JPMF and its associates, including the operatingcontrols established by them, to ensure they meet the Company’sbusiness objectives. The Company does not have an internal auditfunction of its own, but relies on the internal audit department ofthe Manager. The key elements designed to provide effective riskmanagement and internal control are as follows:

Financial Reporting – Regular and comprehensive review by theBoard of key investment and financial data, including financialstatements, management accounts, revenue projections, analysisof transactions and performance comparisons.

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Management Agreement – Appointment of a manager anddepositary regulated by the Financial Conduct Authority (‘FCA’),whose responsibilities are clearly defined in a written agreement.

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

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

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

• the Board, through the Audit Committee, reviews the terms of themanagement agreement and receives regular reports fromJPMF’s Compliance department;

• the Board reviews reports on the risk management and internalcontrols and the operations of its Depositary, BNY Mellon Trust &Depositary UK Limited and Custodian, JPMorgan Chase Bank,which are themselves independently reviewed; and

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

By the means of the procedures set out above, the Board confirmsthat it has reviewed the effectiveness of the Company’s system ofrisk management and internal control for the year ended 31st March2017 and that systems have been in place during the year underreview and up to the date of approval of this Annual Report andAccounts. Moreover, the controls accord with the FinancialReporting Council, Guidance on Risk Management, internal controland related Financial and Business Reporting, September 2014.

Corporate Governance and Voting Policy The Company delegates responsibility for voting to the Manager.The following is a summary of JPMAM’s policy statements oncorporate governance, voting policy and social and environmentalissues, which has been reviewed and noted by the Board.

Corporate Governance JPMAM believes that corporate governance is integral to ourinvestment process. As part of our commitment to delivering superiorinvestment performance to our clients, we expect and encourage thecompanies in which we invest to demonstrate the highest standards ofcorporate governance and best business practice. We examine the

share structure and voting structure of the companies in which weinvest, as well as the board balance, oversight functions andremuneration policy. These analyses then form the basis of our proxyvoting and engagement activity.

Proxy VotingJPMAM manages the voting rights of the shares entrusted to it as itwould manage any other asset. It is the policy of JPMAM to vote ina prudent and diligent manner, based exclusively on our reasonablejudgement of what will best serve the financial interests of our clients.So far as is practicable, we will vote at all of the meetings called bycompanies in which we are invested.

Stewardship/EngagementJPMAM recognises its wider stewardship responsibilities to its clientsas a major asset owner. To this end, we support the introduction of theFRC Stewardship Code, which sets out the responsibilities ofinstitutional shareholders in respect of investee companies. Under theCode, managers should:

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

– disclose their policy on managing conflicts of interest;

– monitor their investee companies;

– establish clear guidelines on how they escalate engagement;

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

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

– report to clients.

JPMAM endorses the Stewardship Code for its UK investments andsupports the principles as best practice elsewhere. We believe thatregular contact with the companies in which we invest is central to ourinvestment process and we also recognise the importance of being an‘active’ owner on behalf of our clients.

JPMAM’s Voting Policy and Corporate Governance Guidelines areavailable on request from the Company Secretary or can bedownloaded from JPMAM’s website:http://www.jpmorganassetmanagement.co.uk/Institutional/CommentaryAndAnalysis/CorporateGovernance, which also sets out itsapproach to the seven principles of the FRC Stewardship Code, itspolicy relating to conflicts of interest and its detailed voting record.

By order of the Board Paul Winship, for and on behalf of JPMorgan Funds Limited, Company Secretary

12th June 2017


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The Audit Committee presents its report for the year ended31st March 2017.

The Audit Committee, chaired by Josephine Dixon, meets at leasttwice each year. The members of the Audit Committee consider thatthey have the requisite skills and experience to fulfil theresponsibilities of the Committee.

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

During its review of the Company’s financial statements for the yearended 31st March 2017, the Audit Committee considered thefollowing significant issues, in particular those communicated bythe Auditors during their reporting:

Significant issue How the issue was addressed

The valuation of investments is undertaken inaccordance with the accounting policies, disclosedin note 1(b) to the accounts on page 59. 100% of theportfolio can be verified against daily publishedprices. Controls are in place to ensure valuations areappropriate and existence is verified throughcustodian reconciliations. The Board monitorscontrols and significant movements in theunderlying portfolio by reviewing reports regularlyin Board Meetings.

The recognition of investment income is undertakenin accordance with accounting policy note 1(d) to theaccounts on page 59. The Board regularly reviewssubjective elements of income and agrees theiraccounting treatment.

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

The Board was made fully aware of any significant financial reportingissues and judgements made in connection with the preparation ofthe financial statements. This financial year the Company’s Reportand Accounts have been prepared under FRS 102.

Having discussed the content of the annual report and accountswith the Alternative Investment Fund Manager (JPMF), InvestmentManagers, Company Secretary and other third party serviceproviders, the Audit Committee has concluded that the Annual

Report for the year ended 31st March 2017, taken as a whole, is fair,balanced and understandable and provides the information bothpositive and negative necessary for shareholders to assess theCompany’s performance, business model and strategy, and hasreported on these findings to the Board. The Board’s conclusions inthis respect are set out in the Statement of Directors’Responsibilities on page 48.

The Audit Committee also examines the effectiveness of theCompany’s internal control systems, receives information from theManager’s Compliance department, see page 42 Risk Managementand Internal Controls, and also reviews the scope and results of theexternal audit, its cost effectiveness and the independence andobjectivity of the external auditors. In the Directors’ opinion theAuditors are independent. The Company also engages the Auditorsto undertake a review of the annual share conversion that itprocesses for a total fee of £3,750 per annum (2016: £3,750). TheBoard do not consider that the fee for this non-audit serviceundermines the auditor’s independence as it is regarded as animmaterial sum.

The Audit Committee also has a primary responsibility for makingrecommendations to the Board on the reappointment and removalof external Auditors. Representatives of the Company’s Auditorsattended the Audit Committee meeting at which the draft AnnualReport & Accounts including the Auditor’s Audit Planning Reportwere considered and also engage with Directors as and whenrequired. Having reviewed the performance of the externalAuditors, including assessing the quality of work, timing ofcommunications and work with JPMF, the Committee considered itappropriate to recommend their reappointment. The Boardsupported this recommendation which will be put to shareholdersat the forthcoming Annual General Meeting. The current audit firmhas audited the company’s financial statements for more than20 years. The Company’s year ended 31st March 2017 is the currentAudit Partner’s first year of a five year maximum term. TheCommittee has considered the possibility of tendering for the role ofauditor and in the forthcoming year will review the timing of atender in accordance with the permitted time limits.

By order of the Board Josephine DixonChairman of the Audit Committee

12th June 2017

Valuation, existenceand ownership ofinvestments

Recognition ofinvestment income

Compliance withSections 1158 and1159

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The Board presents the Directors’ Remuneration Report for the yearended 31st March 2017, which has been prepared in accordancewith the requirements of Section 421 of the Companies Act 2006.

The law requires the Company’s Auditor to audit certain of thedisclosures provided. Where disclosures have been audited, they areindicated as such. The Auditor’s opinion is included in their reporton pages 49 to 54.

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

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

At the AGM on 19th July 2016 99.4% votes cast were in favour of(or granted discretion to the Chairman who voted in favour of) theRemuneration Policy and 0.6% voted against. Abstentions werereceived from less 0.5% of votes cast.

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

Reviews are based on information provided by the Manager, JPMF,and industry research carried out by third parties on the level offees paid to the directors of the Company’s peers and within theinvestment trust industry generally. The involvement ofremuneration consultants has not been deemed necessary as partof this review. The Company has no Chief Executive Officer and noemployees and therefore no consultation of employees is requiredand there is no employee comparative data to provide, in relationto the setting of the remuneration policy for Directors.

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

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

In the year under review, Directors’ fees were paid at the followingrates: Chairman £38,000; Chairman of the Audit Committee£30,000; and other Directors £26,000.

The last increase to Directors’ fees was made on 1st April 2016.The maximum aggregate Directors’ fees payable are £225,000 perannum, as specified in the Company’s Articles of Association. Anyincrease in the maximum aggregate annual limit on Directors’ fees,requires both Board and shareholder approval.

The Company’s Articles of Association provide for additionalremuneration to be paid to the Company’s Directors for duties orservices performed outside their ordinary duties, not limited by themaximum aggregate, refered to above.

The Company has not sought shareholder views on its remunerationpolicy. The Nomination Committee considers any commentsreceived from shareholders on remuneration policy on an ongoingbasis and takes account of those views.

The terms and conditions of Directors’ appointments are set out informal letters of appointment which are available for review at theCompany’s Annual General Meeting and the Company’s registeredoffice. Details of the Board’s policy on tenure are set out on page 41.

Directors’ Remuneration Policy ImplementationThe Directors’ Remuneration Report, which includes details of theDirectors’ remuneration policy and its implementation, is subject toan annual advisory vote and therefore an ordinary resolution toapprove this report will be put to shareholders at the forthcomingAnnual General Meeting. There have been no changes to the policycompared with the year ended 31st March 2016.

At the Annual General Meeting held on 19th July 2017, of votes cast,99.4% of votes cast were in favour of (or granted discretion to theChairman who voted in favour of) the remuneration report and0.6% voted against. Abstentions were received from less than 0.4%of the votes cast.

Details of voting on both the Remuneration Policy and the Directors’Remuneration Report from the 2017 Annual General Meeting will begiven in the annual report for the year ending 31st March 2018.

Details of the implementation of the Company’s remuneration policyare given below.

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

Single total figure table1

2017 2016Taxable Taxable

Fees expenses2 Total Fees expenses2 Total£ £ £ £ £ £

Andrew Adcock3 38,000 — 38,000 30,714 — 30,714 Josephine Dixon 30,000 1,124 31,124 27,000 — 27,000 Stephen Goldman 26,000 — 26,000 23,000 — 23,000 Andrew Murison4 — — — 10,462 — 10,462 Jutta Af Rosenborg 26,000 — 26,000 23,000 — 23,000 Stephen Russell 26,000 — 26,000 23,000 — 23,000 Ferdinand Verdonck4 — — — 7,069 — 7,069

Total 146,000 1,124 147,124 144,245 — 144,245

1 Audited information.2 Taxable travel and subsistence expenses incurred in attending Board and Committeemeetings.

3 Became Chairman on 21st July 2015.4 Retired 21st July 2015.

Effective from 1st April 2017:

2018£

Andrew Adcock 38,000Josephine Dixon 30,000Stephen Goldman 26,000Jutta Af Rosenborg 26,000Stephen Russell 26,000

Total 146,000

A table showing the total remuneration for the role of Chairmanover the five years ended 31st March 2017 is below:

Remuneration for the role of Chairman over thesix years ended 31st March 2017Year ended31st March Fees

2017 £38,0002016 £34,0002015 £34,0002014 £30,0002013 £30,0002012 £30,000

Directors’ ShareholdingsThere are no requirements pursuant to the Company’s Articles ofAssociation for the Directors to own shares in the Company. TheDirectors beneficial shareholdings in the Company’s Growth shares,are detailed below:

1st April2016

31st March or date ofDirectors 2017 appointment

Andrew Adcock 25,000 25,000Josephine Dixon 7,000 7,000Stephen Goldman 10,000 10,000Jutta af Rosenborg — —Stephen Russell 2,710 2,642

There have been no changes to the above details since the year endand the date of signing these report and accounts.

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Graphs showing each portfolio’s share price total return comparedwith the relevant benchmark are shown below.

Growth: Eight Year Share Price and Benchmark Total Return to31st March 2017

Source: Morningstar/FTSE.

Share price total return.

Benchmark total return.

Income: Eight Year Share Price and Benchmark Total Return to31st March 2017

Source: Morningstar/FTSE.

Share price total return.

Benchmark total return.

Year ended31st March

2017 2016£ £

Remuneration paid to all Directors 147,124 144,245

Distribution to shareholders— by way of dividend 10,008,000 8,778,000— by way of share repurchases 1,724,000 nil

By order of the Board Paul Winship, for and on behalf of JPMorgan Funds Limited, Secretary

12th June 2017

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The Directors are responsible for preparing the annual report andaccounts in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statementsfor each financial year. Under that law, the Directors have elected toprepare the financial statements in accordance with UnitedKingdom Generally Accepted Accounting Practice (United KingdomAccounting Standards) including FRS 102 ‘The Financial ReportingStandard applicable in the UK and Republic of Ireland’ andapplicable law. Under Company law the Directors must not approvethe financial statements unless they are satisfied that they give atrue and fair view of the state of affairs of the Company and of theprofit or loss of the Company for that period. In preparing thesefinancial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable andprudent;

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

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

and the Directors confirm that they have done so.

The Directors are responsible for keeping proper accountingrecords that are sufficient to show and explain the Company’stransactions and disclose with reasonable accuracy at any time thefinancial position of the Company and to enable them to ensure thatthe financial statements comply with the Companies Act 2006. Theyare also responsible for safeguarding the assets of the Companyand hence for taking reasonable steps for the prevention anddetection of fraud and other irregularities.

The accounts are published on the www.jpmeuropean.co.uk website,which is maintained by the Company’s Manager, JPMorgan Funds

Limited. The maintenance and integrity of the website maintainedby the Manager is, so far as it relates to the Company, theresponsibility of the Manager. The work carried out by the auditorsdoes not involve consideration of the maintenance and integrity ofthis website and, accordingly, the auditors accept no responsibilityfor any changes that have occurred to the accounts since they wereinitially presented on the website. The accounts are prepared inaccordance with UK legislation, which may differ from legislation inother jurisdictions.

Under applicable law and regulations the Directors are alsoresponsible for preparing a Strategic Report, a Directors’ Reportand a Directors’ Remuneration Report that comply with that law.The Strategic Report and the Directors’ report include a fair reviewof the development and performance of the business and theposition of the issuer, together with a description of the principalrisks and uncertainties that they face.

Each of the Directors, whose names and functions are listed onpages 36 and 37 confirm that, to the best of their knowledge thefinancial statements, which have been prepared in accordance withUnited Kingdom Generally Accepted Accounting Practice (UnitedKingdom Accounting Standards and applicable law), give a true andfair view of the assets, liabilities, financial position and return orloss of the Company.

The Board confirms that it is satisfied that the annual report andaccounts taken as a whole are fair, balanced and understandableand provide the information necessary for shareholders to assessthe strategy and business model of the Company.

For and on behalf of the BoardAndrew AdcockChairman

12th June 2017

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TO THE MEMBERS OF JPMORGAN EUROPEAN INVESTMENT TRUST PLC

Our opinion on the financial statementsIn our opinion the financial statements:

• give a true and fair view of the state of the Company’s affairs as at 31 March 2017 and its profit for the year then ended;

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

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

What we have auditedThe Company’s financial statements comprise:

Statement of Comprehensive Income for the year ended 31 March 2017

Statement of Changes in Equity for the year ended 31 March 2017

Statement of Financial Position as at 31 March 2017

Statement of Cash Flows for the year ended 31 March 2017

Related notes 1 to 24 to the financial statements

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice), including FRS 102 ‘The Financial Reporting Standard applicable in the UK andRepublic of Ireland’.

Overview of our audit approach

Risks of material • Incomplete or inaccurate income recognition through failure to recognise proper income entitlements or misstatement apply appropriate accounting treatment.

• Incorrect valuation and ownership of the investment portfolio.

Materiality • Materiality of £4.08 million which represents 1% of equity shareholder’s funds (2016: £3.30 million)

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

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Key observations communicated to the Risk Our response to the risk Audit Committee

Incomplete or inaccurate revenuerecognition though failure torecognise proper income entitlementsor apply appropriate accountingtreatment (as described on page 44 in theReport of the Audit Committee).

The investment income receivable by theCompany during the period directly drivesthe Company’s ability to make a dividendpayment to shareholders. The investmentincome receivable for the year to31st March 2017 was £14.83 million fromdividends (2016: £11.22 million) (asdisclosed in note 4 to the financialstatements).

Special dividends by their nature requirethe exercise of judgement as to whetherthe income receivable should be classifiedas ‘revenue’ or ‘capital’.

During the year, the Company received21 special dividends (2016; 68), with anaggregate value of £453,000 (2016:£897,000). All special dividends weretreated as revenue.

There is also a risk that inappropriatejournal entries applied to the incomeaccount could result in a misstatement ofincome.

We have performed the followingprocedures:

We agreed a sample of dividend receipts tothe corresponding announcement made bythe investee company and agreed cashreceived to bank statements.

We agreed, on a sample basis, investeecompany dividend announcements from anindependent source to the income recordedby the Company.

For all dividends accrued at year end, werecalculated and reviewed the investeecompany announcements to assesswhether the dividend obligation arose priorto 31st March 2017.

We reviewed the process in place at boththe Manager and Administrator to identifyand account for special dividends.

We reviewed the income report for allmaterial dividends and checked theseagainst an independent source todetermine if any were special. We alsoreviewed the acquisitions and disposalsreport for any potential special dividendstreated as capital to assess if any should betreated as revenue. None of the specialdividends received during the year werematerial to our audit however we reviewedthe treatment on a sample basis.

We agreed, on a sample basis, incomejournal entries for the year back to theincome report and the details from theincome report to the correspondingannouncement made by the investeecompany and coupon details from anindependent source.

We reviewed the Company’s accountingpolicies with respect to revenue recognitionincluding special dividends to ensure thatthese have been applied as statedthroughout the year and are in line withFRS 102 and the AIC SORP.

The results of our procedures are:

We noted no issues in agreeing the sampleof dividend receipts to the correspondingannouncement made by the investeecompany and agreeing cash received tobank statements.

We noted no issues in agreeing the sampleof investee company dividendannouncements from an independentsource to the income recorded by theCompany.

We noted no issues in recalculating theaccrued dividends, agreeing a sample tosubsequent bank statements, andconfirming the income obligation aroseprior to 31st March 2017.

We noted no issues in the process in placeat both the Manager and Administrator toidentify and account for special dividends.

We noted no issues in agreeing, on samplebasis, special dividends identified to anindependent source and we agreed with theallocation of the special dividends torevenue.

We noted no issues in agreeing the sampleof income journal entries back to theincome report and details to anindependent source.

We noted no issues with the application ofthe Company’s accounting policies withrespect to revenue recognition includingspecial dividends, or in compliance withFRS 102 and the AIC SORP.

Independent Auditors’ Report continued

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Key observations communicated to the Risk Our response to the risk Audit Committee

In the prior year, our auditor’s report included a risk of material misstatement in relation to management fees payable by the Company forinvestment management services not being calculated in accordance with the methodology prescribed in the investment managementagreement. In the current year, however, we have reassessed this risk and have not identified it as risk of material misstatement in the tableabove because the calculation of management fees is considered to be of a straightforward nature

The scope of our auditOur assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for eachentity within the Company. This enables us to form an opinion on the financial statements. We take into account size, risk profile, theorganisation and effectiveness of controls, changes in the business environment when assessing the level of work to be performed. All auditwork was performed directly by the audit engagement team.

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

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

We determined materiality for the Company to be £4.08 million (2016: £3.30 million), which is 1% (2016: 1%) of equity shareholders’ funds.We derived our materiality calculation from a proportion of total equity as we consider that to be the most important financial metric onwhich shareholders judge the performance of the Company.

The incorrect valuation andownership of the investment portfolio(as described on page 44 of the Report ofthe Audit Committee).

The valuation of the assets held in theinvestment portfolio is the key driver of theCompany’s net asset value and total return.Incorrect asset pricing or a failure tomaintain proper legal title of the assetsheld by the Company could have asignificant impact on the portfolio valuationand, therefore, the return generated forshareholders.

The valuation of the portfolio at 31st March2017 was £435.8 million (2016:£363.6 million), consisting entirely of listedequities (movements in the investmentportfolio are shown in Note 11 to thefinancial statements).

We performed the following procedures:

For all investments in the portfolio, weagreed the valuations and exchange ratesused to an independent source.

We reviewed price exception and stalepricing reports.

We obtained confirmation from theCustodian and Depositary of all securitiesheld at the year end and agreed allsecurities held from the Company’s recordsto those of the Custodian and theDepositary.

The results of our procedures are:

For all investments, we noted no materialdifferences in market value or exchangerates when compared to an independentsource.

We noted no issues in pricing exception andstale pricing reports.

We noted no differences between theCustodian and the Depositary confirmationand the Company’s underlying financialrecords.



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

On the basis of our risk assessments, together with our assessment of the Company’s overall control environment, our judgment was thatoverall performance materiality was 75% of materiality, being £3.06 million (2016: £2.50 million).

Given the importance of the distinction between revenue and capital for the Company we also applied a separate testing threshold of£0.63 million (2016: £0.47 million) for the revenue column of the Statement of Comprehensive Income, being 5% of the revenue return onordinary activities before taxation.

Reporting thresholdAn amount below which identified misstatements are considered as being clearly trivial.

We agreed with the audit committee that we would report all audit differences in excess of £0.20m (2016: £0.17m) as well as differencesbelow that threshold that, in our view, warranted reporting on qualitative grounds.

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

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

Respective responsibilities of directors and auditorAs explained more fully in the Statement of Directors’ Responsibilities set out on page 50, the Directors are responsible for the preparationof the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion onthe financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standardsrequire us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

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

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

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

• based on the work undertaken in the course of the audit:

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

— the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements;



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Matters on which we are required to report by exception

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

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

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

• otherwise misleading.

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

Companies Act 2006 reportingIn light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have identified no material misstatements in the Strategic Report and Directors’ Report on pages 4 and 40 of the annualreport.

We are required to report to you if, in our opinion:

• adequate accounting records have not been kept or returns adequate for our audit have not been received from branchesnot visited by us; or

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

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

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

Listing Rules review requirementsWe are required to review:

• the directors’ statement in relation to going concern set out on page 40, and longer-term viability, set out on page 37; and

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

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

ISAs (UK and Ireland) reportingWe are required to give a statement as to whether we have anything material to add or to draw attention to in relation to:

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

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

• the directors’ statement in the financial statements about whether they considered it appropriate to adopt thegoing concern basis of accounting in preparing them, and their identification of any material uncertainties to

We have noexceptions toreport.



We havenothingmaterial toadd or todrawattention to.



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the entity’s ability to continue to do so over a period of at least twelve months from the date of approval ofthe financial statements; and

• the directors’ explanation in the annual report as to how they have assessed the prospects of the entity, overwhat period they have done so and why they consider that period to be appropriate, and their statement as towhether they have a reasonable expectation that the entity will be able to continue in operation and meet itsliabilities as they fall due over the period of their assessment, including any related disclosures drawingattention to any necessary qualifications or assumptions.

Caroline Mercer (Senior statutory auditor)for and on behalf of Ernst & Young LLP, Statutory AuditorEdinburgh

12th June 2017

Notes:

1. The maintenance and integrity of the JPMorgan European Investment Trust plc web site is the responsibility of the directors; the work carried out by the auditors does notinvolve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they wereinitially presented on the web site.

2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.



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Financial Statements

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST MARCH 2017

2017 2016Revenue Capital Total Revenue Capital Total

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

Gains/(losses) on investments and derivatives held at fair value through profit or loss 3 — 79,794 79,794 — (8,777) (8,777)

Net foreign currency losses — (51) (51) — (2,419) (2,419)Income from investments 4 14,833 — 14,833 11,219 — 11,219 Interest receivable and similar income 4 103 — 103 147 — 147

Gross return/(loss) 14,936 79,743 94,679 11,366 (11,196) 170Management fee 5 (1,018) (1,976) (2,994) (897) (1,787) (2,684)Other administrative expenses 6 (814) — (814) (808) — (808)

Net return/(loss) on ordinary activitiesbefore finance costs and taxation 13,104 77,767 90,871 9,661 (12,983) (3,322)

Finance costs 7 (456) (896) (1,352) (259) (519) (778)

Net return/(loss) on ordinary activitiesbefore taxation 12,648 76,871 89,519 9,402 (13,502) (4,100)

Taxation 8 (1,833) — (1,833) (1,084) — (1,084)

Net return/(loss) on ordinary activitiesafter taxation 10,815 76,871 87,686 8,318 (13,502) (5,184)

Return/(loss) per share:Growth share 10 6.75p 61.08p 67.83p 5.37p (10.77)p (5.40)pIncome share 10 5.94p 31.40p 37.34p 4.67p (5.42)p (0.75)p

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in theyear.

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

The notes on pages 60 to 80 form an integral part of these financial statements.



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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH 2017

Called up Capital share Share redemption Capital Revenue capital premium reserve reserves1 reserve1 Total £’000 £’000 £’000 £’000 £’000 £’000

At 31st March 2015 6,280 63,686 13,279 257,206 4,555 345,006Share conversions during the year (1) 19,087 312 (19,398) — —Expense in relation to new shares — (12) — — — (12)Net (loss)/return on ordinary activities — — — (13,502) 8,318 (5,184)Dividends paid in the year — — — — (8,943) (8,943)

At 31st March 2016 6,279 82,761 13,591 224,306 3,930 330,867Repurchase and cancellation of the Company’sown shares (34) — 34 (1,724) — (1,724)

Share conversions during the year — 1,353 18 (1,371) — —Adjustment on repurchase of deferred sharesissued arising from share conversion (1,221) — 1,221 — — —

Net return on ordinary activities — — — 76,871 10,815 87,686 Dividends paid in the year — — — — (8,874) (8,874)

At 31st March 2017 5,024 84,114 14,864 298,082 5,871 407,955

1 These reserves form the distributable reserve of the Company and may be used to fund distribution of profits to investors via dividend payments.


Financial Statements continued


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STATEMENT OF FINANCIAL POSITION AT 31ST MARCH 2017

2017 Growth Income 2016 (unaudited) (unaudited) Total Total Notes £’000 £’000 £’000 £’000

Fixed assets Investments held at fair value through profit or loss 11 263,321 172,493 435,814 363,631

Current assets 12Derivative financial assets 56 338 394 743 Debtors 764 1,046 1,810 2,086 Cash and cash equivalents 18,765 7,155 25,920 16,583

19,585 8,539 28,124 19,412

Current liabilitiesCreditors: amounts falling due within one year 13a (8,279) (5,142) (13,421) (12,183)Derivative financial liabilities 13b (12) (6) (18) (569)

Net current assets 11,294 3,391 14,685 6,660

Total assets less current liabilities 274,615 175,884 450,499 370,291 Creditors: amounts falling due after more than one year 14 (26,014) (16,530) (42,544) (39,424)

Net assets 248,601 159,354 407,955 330,867

Capital and reserves Called up share capital 15 3,066 1,958 5,024 6,279 Share premium 16 11,448 72,666 84,114 82,761 Capital redemption reserve 16 13,499 1,365 14,864 13,591 Capital reserves 16 217,663 80,419 298,082 224,306Revenue reserve 16 2,925 2,946 5,871 3,930

Total equity shareholders’ funds 248,601 159,354 407,955 330,867

Net asset valuesNet asset value per Growth share 17 321.9p 259.7pNet asset value per Income share 17 169.9p 137.1p

The financial statements on pages 55 to 58 were approved and authorised for issue by the Directors on 12th June 2017 and were signed ontheir behalf by:

Director


JPMorgan European Investment Trust plcCompany registration number: 237958



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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST MARCH 2017

2017 2016 Notes £’000 £’000

Net cash inflow/(outflow) from operations before dividends and interest 18 222 (1,608)Dividends received 11,612 9,827Interest (paid)/received on cash and cash equivalents 2 104Overseas tax recovered 524 818

Net cash inflow from operating activities 12,360 9,141

Purchases of investments (289,356) (212,728)Sales of investments 297,400 209,341Settlement of futures contracts 1,014 (822)Settlement of foreign currency contracts (384) 645

Net cash inflow/(outflow) from investing activities 8,674 (3,564)

Dividends paid (8,874) (8,943)Repayment of bank loans — (22,145)Drawdown of bank loans — 36,505Interest paid (1,327) (681)Expenses in relation to new shares — (12)Repurchase and cancellation of the Company’s own shares (1,461) —

Net cash (outflow)/inflow from financing activities (11,662) 4,724

Increase in cash and cash equivalents 9,372 10,301

Cash and cash equivalents at the start of the year 16,583 6,265Exchange movements (35) 17 Cash and cash equivalents at the end of the year 25,920 16,583

Increase in cash and cash equivalents 9,372 10,301

Cash and cash equivalents consist of:Cash and short term deposits 5,953 4,247JPMorgan Euro Liquidity Fund 19,967 12,336

Total 25,920 16,583




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1. Accounting policies(a) Basis of accounting

The financial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted AccountingPractice (‘UK GAAP’), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and with theStatement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ (the ‘SORP’)issued by the Association of Investment Companies in November 2014 and updated in January 2017.

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

The financial statements have been prepared on a going concern basis. The disclosures on going concern on page 38 of the Directors’Report form part of these financial statements.

(b) Valuation of investments

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

The Company’s business is investing in financial assets with a view to profiting from their total return in the form of income andcapital growth. The portfolio of financial assets is managed and its performance evaluated on a fair value basis, in accordance witha documented investment strategy and information is provided internally on that basis to the Company’s Board of Directors.

Accordingly, upon initial recognition the investments are designated by the Company as ‘held at fair value through profit or loss’.They are included initially at fair value which is taken to be their cost, excluding expenses incidental to purchase which are written offto capital at the time of acquisition. Subsequently the investments are valued at fair value, which are quoted bid prices forinvestments traded in active markets. For investments which are not traded in active markets, unlisted and restricted investments,the Board takes into account the latest traded prices, other observable market data and asset values based on the latest managementaccounts.

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

(c) Accounting for reserves

Gains and losses on sales of investments including the related foreign exchange gains and losses, realised gains and losses on foreigncurrency contracts, management fee and finance costs allocated to capital and any other capital charges, are included in theStatement of Comprehensive Income and dealt with in capital reserves within ‘Gains and losses on sales of investments’.

Increases and decreases in the valuation of investments held at the year end including the related foreign exchange gains and losses,are included in the Statement of Comprehensive Income and dealt with in capital reserves within ‘Investment holding gains andlosses’. Unrealised gains and losses on foreign currency contracts (including futures and forwards) or foreign currency loans andprivate placements are included in the Statement of Comprehensive Income and dealt with in capital reserves within ‘Unrealisedreserve’.

(d) Income

Dividends receivable from equity shares are included in revenue on an ex-dividend basis except where, in the opinion of the Board,the dividend is capital in nature, in which case it is included in capital. UK dividends are included net of tax credits. Overseas dividendsare included gross of any withholding tax.

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

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

Stock lending income and deposit interest receivable is taken to revenue on an accruals basis.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2017



NOTES TO THE FINANCIAL STATEMENTS CONTINUED


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1. Accounting policies continued

(e) Expenses

All expenses are accounted for on an accruals basis.

Expenses charged to the Company that are common to both share classes are allocated between those classes in the same proportionas the net assets of each share class on a half yearly basis.

Expenses charged to the Company in relation to a specific share class are charged directly to that share class, with the other shareclass incurring no charge. Losses of one share class are not borne by the other.

Shareholders converting some or all of their shares into shares of the other class will bear the costs of the conversion up to amaximum of 2% of the value of the shares being converted. Any costs in excess of this cap will be borne by all the shareholders of theCompany and will be accounted for under capital reserves.

Expenses are allocated wholly to revenue with the following exceptions:

– the management fee of the Growth pool of assets is allocated 30% to revenue and 70% to capital in line with the Board’s expectedsplit of revenue and capital return from the Growth investment portfolio.

– the management fee of the Income pool of assets is allocated 40% to revenue and 60% to capital in line with the Board’sexpected split of revenue and capital return from the Income investment portfolio.

– expenses incidental to the purchase of an investment are charged to capital. These expenses are commonly referred to astransaction costs and comprise mainly brokerage commission.

(f) Finance costs

Finance costs, including any premium payable on settlement or redemption and direct issue costs, are accounted for on an accrualsbasis using the effective interest rate method.

– Finance costs on the Growth pool of assets are allocated 30% to revenue and 70% to capital in line with the Board’s expected splitof revenue and capital return from the Growth investment portfolio.

– Finance costs on the Income pool of assets are allocated 40% to revenue and 60% to capital in line with the Board’s expected splitof revenue and capital return from the Income investment portfolio.

(g) Financial instruments

Financial instruments are recognised only when the Company becomes a party to the contractual provisions of the instrument.Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire or are settled.Financial liabilities are derecognised when the obligation specified in the contract is discharged, is cancelled or expires.

Cash and cash equivalents may comprise cash including demand deposits which are readily convertible to a known amount of cashand are subject to an insignificant risk of change in value. Liquidity funds are considered cash equivalents as they are held for cashmanagement purposes as an alternative to cash. For the purpose of the Statement of Cash Flows, cash and cash equivalents consistof cash and cash equivalents as defined above, net of outstanding bank overdrafts.

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

Bank loans are classified as financial liabilities measured at amortised cost. They are initially measured as proceeds and subsequentlymeasured at amortised cost. Interest payable on the bank loan is accounted for on an accruals basis in the Statement ofComprehensive Income.

The private placement in issue is classified as financial liabilities at amortised cost. It was initially measured at the proceeds net ofdirect issue costs and subsequently measured at amortised cost. The amortisation of direct issue costs are accounted for on anaccruals basis in the Statement of Comprehensive Income using the effective interest rate method.


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Derivative financial instruments, including short term forward currency contracts are classified as ‘held for trading’ and are valuedat fair value, which is the net unrealised gain or loss, and are included in current assets or current liabilities in the Statement ofFinancial Position. Changes in the fair value of derivative financial instruments are recognised in the Statement of ComprehensiveIncome as capital.

(h) Taxation

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

Tax is computed for each pool separately. A pool which generates taxable revenues in excess of tax deductible expenses may benefitfrom the excess of tax deductible expenses in the other pool. In this instance compensation amounting to half the tax savings in thetaxable pool will be transferred to the non taxable pool.

Deferred tax is provided on all timing differences that have originated but not reversed by the balance sheet date. Deferred taxliabilities are recognised for all taxable timing differences but deferred tax assets are only recognised to the extent that it is morelikely than not that taxable profits will be available against which those timing differences can be utilised. Tax relief is allocated toexpenses charged to capital on the ‘marginal basis’. On this basis, if taxable income is capable of being entirely offset by revenueexpenses, then no tax relief is transferred to the capital column. Deferred tax is measured at the tax rate which is expected to applyin the periods in which the timing differences are expected to reverse, based on tax rates that have been enacted or substantivelyenacted at the balance sheet date and is measured on an undiscounted basis.

(i) Value Added Tax (‘VAT’)

Expenses are disclosed inclusive of the related irrecoverable VAT. Recoverable VAT is calculated using the partial exemption methodbased on the proportion of zero rated supplies to total supplies.

(j) Foreign currency

The Company is required to identify its functional currency, being the currency of the primary economic environment in which theCompany operates. The Board, having regard to the currency of the Company’s share capital and the predominant currency in whichits shareholders operate, has determined that sterling is the functional currency. Sterling is also the currency in which the financialstatements are presented. Transactions denominated in foreign currencies are converted at actual exchange rates at the date of thetransaction. Monetary assets, liabilities and equity investments held at fair value, denominated in foreign currencies at the year endare translated at the rates of exchange prevailing at the year end.

(k) Dividends payable

Dividends are included in the financial statements in the year in which they are paid.

(l) Share capital transactions

The cost of repurchasing Growth and Income shares for cancellation, including the related stamp duty and transaction costs, ischarged to capital reserves and dealt with in the Statement of Changes in Equity. Share transactions are accounted for on a tradedate basis. The nominal value of share capital repurchased and cancelled is transferred out of ‘Called up share capital’ and into‘Capital redemption reserve’. Share conversions are accounted for on the conversion date. The conversion value of the convertedshares is transferred out of ‘Capital reserves’ with the nominal value into ‘Capital redemption reserve’ and any share premium intothe ‘Share premium’.

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

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





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3. Gains/(losses) on investments held at fair value through profit or loss2017 2016£’000 £’000

Gains on sales of investments held at fair value through profit or loss based onhistorical cost 44,468 4,513

Amounts recognised in investment holding gains and losses in the previous year inrespect of investments sold during the year (36,492) (25,510)

Gains/(losses) on sales of investments based on the carrying value at the previous balance sheet date 7,976 (20,997)Net movement in investment holding gains and losses 71,174 12,797Realised gains/(losses) on close out of futures contracts 1,014 (822)Unrealised (losses)/gains on futures contracts (297) 297Other capital charges (73) (52)

Total capital gains/(losses) on investments and derivatives held at fair value through profit or loss 79,794 (8,777)

4. Income 2017 2016£’000 £’000

Income from investmentsOverseas dividends 14,306 11,050UK dividends 89 89Scrip dividends 438 80

14,833 11,219

Other interest receivable and similar incomeStock lending fees 101 146Deposit interest 2 1

103 147

Total income 14,936 11,366

5. Management fee2017 2016

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

Management fee 1,018 1,976 2,994 897 1,787 2,684

Details of the management fee are given in the Directors’ Report on page 38.


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6. Other administrative expenses2017 2016£’000 £’000

Administration expenses 382 365Savings scheme costs1 156 174Directors’ fees2 146 144Depositary fee3 82 73Auditors’ remuneration for audit services4 32 34Auditors’ remuneration for all other services5 5 5Overseas board trip expenses 11 13

814 808

1 Paid to the Manager for marketing and administration of saving scheme products. Includes £22,000 (2016: £25,000) irrecoverable VAT.2 Full disclosure is given in the Directors’ Remuneration Report on pages 45 and 48.3 Includes £11,000 (2016: £10,000) irrecoverable VAT.4 Includes £5,000 (2016: £5,000) irrecoverable VAT.5 Review of half yearly conversion calculations, includes £2,000 (2016: £2,000) irrecoverable VAT.

7. Finance Costs2017 2016

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

Interest on bank loans and overdrafts 59 119 178 50 102 152Interest on private placement 397 777 1,174 209 417 626

456 896 1,352 259 519 778





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

2017 2016Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000

Overseas withholding tax 1,833 — 1,833 1,084 — 1,084

Total tax charge for the year 1,833 — 1,833 1,084 — 1,084

(b) Factors affecting total tax charge for the year

The tax charge for the year is lower (2016: higher) than the Company’s applicable rate of corporation tax for the year of 20%(2016: 20%). The factors affecting the total tax charge for the year are as follows:

2017 2016Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000

Net return/(loss) on ordinary activities before taxation 12,648 76,871 89,519 9,402 (13,502) (4,100)

Net return/(loss) on ordinary activities before taxation multiplied by the Company’s applicable rate of corporation tax of 20% (2016: 20%) 2,530 15,375 17,905 1,881 (2,701) (820)

Effects of:Non taxable capital (gains)/losses — (15,949) (15,949) — 2,239 2,239Non taxable scrip dividends (87) — (87) (16) — (16)Non taxable UK dividend income (18) — (18) (18) — (18)Non taxable overseas dividends (2,823) — (2,823) (2,176) — (2,176)Excess expenses over taxable income 972 — 972 791 — 791Overseas withholding tax 1,833 — 1,833 1,084 — 1,084Tax attributable to expenses and finance costs

charged to capital (574) 574 — (462) 462 —

Total tax charge for the year 1,833 — 1,833 1,084 — 1,084

(c) Deferred taxation

The Company has an unrecognised deferred tax asset of £6,574,000 (2016: £6,085,000) based on a prospective corporation tax rateof 17% (2016: 18%). The UK Government announced in July 2015 that the corporation tax rate is set to be cut to 19% in 2017 and 18%in 2020. In March 2016 a further cut to 17% in 2020 was announced. These reductions in the standard rate of corporation tax weresubstantively enacted on 15th September 2016 and became effective from 1st January 2017. The deferred tax asset has arisen due tothe cumulative excess of deductible expenses over taxable income. Given the composition of the Company’s portfolio, it is not likelythat this asset will be utilised in the foreseeable future and therefore no asset has been recognised in the financial statements.

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


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9. Dividends(a) Dividend paid and declared

2017 2016£’000 £’000

Dividends paidUnclaimed Growth dividends refunded to the Company (2) (1)Growth 2016 second interim dividend of 1.00p (2015: 1.25p) per share 852 1,108Growth first interim dividend of 4.85p (2016: 4.85p) per share 3,767 4,134Income 2016 fourth quarterly dividend of 1.45p (2015: 1.45p) per share 1,158 1,068Income first quarterly dividend of 1.10p (2016: 1.10p) per share 1,033 878Income second quarterly dividend of 1.10p (2016: 1.10p) per share 1,033 878Income third quarterly dividend of 1.10p (2016: 1.10p) per share 1,033 878

Total dividends paid in the year 8,874 8,943

Dividends declaredGrowth second interim dividend of 2.00p (2016: 1.00p) per share 1,549 852Income fourth quarterly dividend of 1.70p (2016: 1.45p) per share 1,593 1,158

Total dividends payable1 3,142 2,010

All dividends paid and declared in the period have been funded from the Revenue Reserve.1 In accordance with the accounting policy of the Company, these dividends will be reflected in the financial statements of the following year.

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

The requirements of Section 1158 are considered on the basis of dividends declared in respect of the financial year, as follows:

The revenue available for distribution by way of dividend for the year is £10,814,000 (2016: £8,318,000).

2017 2016£’000 £’000

Growth first interim dividend of 4.85p (2016: 4.85p) per share 3,767 4,134Growth second interim dividend of 2.00p (2016: 1.00p) per share 1,549 852Income first quarterly dividend of 1.10p (2016: 1.10p) per share 1,033 878Income second quarterly dividend of 1.10p (2016: 1.10p) per share 1,033 878Income third quarterly dividend of 1.10p (2016: 1.10p) per share 1,033 878Income fourth quarterly dividend of 1.70p (2016: 1.45p) per share 1,593 1,158

Total 10,008 8,778





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10. Return/(loss) per share2017 2016£’000 £’000

Growth shareReturn per share is based on the following:Revenue 5,242 4,561Capital return/(loss) 47,403 (9,141)

Total return/(loss) 52,645 (4,580)

Weighted average number of shares in issue 77,612,534 84,900,623

Revenue per share 6.75p 5.37pCapital return/(loss) per share 61.08p (10.77)p

Total return/(loss) per share 67.83p (5.40)p

Income shareReturn per share is based on the following:Revenue 5,573 3,757Capital return/(loss) 29,468 (4,361)

Total return/(loss) 35,041 (604)

Weighted average number of shares in issue 93,837,413 80,505,803

Revenue per share 5.94p 4.67pCapital return/(loss) per share 31.40p (5.42)p

Total return/(loss) per share 37.34p (0.75)p


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11. Investments 2017 2016£’000 £’000

Investments listed on a recognised stock exchange 435,814 363,631

Listed Listedin UK overseas Total£’000 £’000 £’000

Opening book cost 556 299,130 299,686Opening investment holding gains 7,108 56,837 63,945

Opening valuation 7,664 355,967 363,631

Movements in the year:Purchases at cost — 289,796 289,796Sales – proceeds — (296,763) (296,763)Gains on sales of investments based on the carrying value at the previous balance

sheet date — 7,976 7,976Net movement in investment holding gains and losses 1,552 69,622 71,174

Closing valuation 9,216 426,598 435,814

Closing book cost 555 336,634 337,189Closing investment holding gains 8,661 89,964 98,625

Total investments held at fair value through profit or loss 9,216 426,598 435,814

Transaction costs on purchases during the year amounted to £635,000 (2016: £536,000) and on sales during the year amounted to£421,000 (2016: £354,000). These costs comprise mainly brokerage commission.

During the year, prior year investment holding gains amounting to £36,492,000 were transferred to ‘Gains and losses on sales ofinvestments’, as disclosed in note 16.





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12. Current assets2017 2016£’000 £’000

Derivative financial assetsFutures contracts1 — 297Forward foreign currency contracts2 394 446

394 743

1 At the Company’s prior year end the Company held a short position of Euro Stoxx Index Futures at a contract cost of £18,518,000 and a market value of £18,221,000 giving anunrealised asset of £297,000.

2 There are 10 forward currency contracts in a net asset position at 31st March 2017 with a settlement date of 10th or 12th April 2017.

2017 2016£’000 £’000

Debtors Securities sold awaiting settlement 36 741Dividends and interest receivable 1,127 220Overseas tax recoverable 609 1,089Other debtors 38 36

1,810 2,086

The Directors consider that the carrying amount of debtors approximates to their fair value. No debtors are past due or impaired.

Cash and cash equivalents

Cash and cash equivalents comprise bank balances, short term deposits and liquidity funds. The carrying amount of these representstheir fair value.

13a. Creditors: amounts falling due within one year2017 2016£’000 £’000

Creditors: amounts falling due within one yearSecurities purchased awaiting settlement 57 55Repurchases of the Company’s own shares awaiting settlement 263 —Bank loan 12,830 11,892Loan interest payable 121 110Other creditors and accruals 150 126

13,421 12,183

The Company has a Euro 15 million 364 day committed revolving credit facility with Scotiabank, which expires on 24th August 2017(prior year the Company had a Euro 15 million 364 day committed revolving credit facility with Scotiabank, which expired 25th August2016).

As is typical across the industry with such loans, the Company is required to comply with certain restrictions required by the lenderregarding the amount of debt as a ratio of net assets and minimum requirements regarding the net asset value of the Company. TheCompany comfortably complies with all these requirements.


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13b. Derivative financial liabilities2017 2016£’000 £’000

Derivative financial liabilitiesForward foreign currency contracts1 18 569

1 There are 10 forward currency contracts in a net liability position at 31st March 2017 with a settlement date of 10th or 12th April 2017.

14. Creditors: amounts falling due after more than one year2017 2016£’000 £’000

Metlife Private Placement 42,544 39,424

On the 26th August 2015 the Company has issued a Euro 50 million Private Placement Note with Metlife which has a capitalrepayment date of 26th August 2035, and an annualised fixed coupon rate of 2.69%. As is typical across the industry with such loans,the Company is required to comply with certain restrictions required by the lender regarding the amount of debt as a ratio of netassets and minimum requirements regarding the net asset value of the Company. The Company comfortably complies with all theserequirements.

15. Called up share capital Issued and fully paid share capital: 2017 2016

Shares Sharesin issue £’000 in issue £’000

Growth sharesOpening balance of shares 77,833,926 4,089 85,244,846 4,383Adjustment on repurchase of deferred shares issued

arising from share conversions — (992) — —Repurchase of shares for cancellation (574,212) (29) — —Net conversion decrease of shares (39,106) (2) (7,410,920) (294)

Closing balance 77,220,608 3,066 77,833,926 4,089

Income sharesOpening balance of shares 93,884,791 2,190 79,854,104 1,897Adjustment on repurchase of deferred shares issued

arising from share conversions — (229) — —Repurchase of shares for cancellation (185,748) (5) — —Net conversion increase of shares 70,451 2 14,030,687 293

Closing balance 93,769,494 1,958 93,884,791 2,190

Further details of transactions in the Company’s shares are given on page 61.





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15. Called up share capital continued

Deferred Shares

The Company’s Articles allow for Deferred shares to be allotted as part of the share conversion to ensure that the conversion does notresult in a reduction of the aggregate par value of the Company’s issued share capital (in contravention of the Companies Act). TheDeferred shares do not confer any rights to the shareholder to receive capital or dividends and will be repurchased by the Companyfrom time to time for a nominal sum. The issue and repurchase of these Deferred shares has no effect on the net asset valueattributable to the holders of Growth or Income shares. The shares have no voting rights and no rights on a winding up of theCompany or entitlement to dividends.

2017 2016£’000 £’000

Deferred Growth shares2016 Opening balance of 413,787 shares of 0.034842p each(2015: 318,263 shares of 0.007711p) — —2016 Repurchase of 413,787 shares of 0.034842p each for cancellation — —(2015: Repurchase of 318,263 shares of 0.007711p each for cancellation)2017 Issue of 379,801 shares of 0.009226p each — —(2016: Issue of 413,787 shares of 0.034842p each)

2017 Closing balance of 379,801 shares of 0.009226p each — —

Deferred Income shares2016 Opening balance of 7,625,126 shares of 0.010859p each(2015: 3,532,228 shares of 0.065180p) 1 12016 Repurchase of 7,625,126 shares of 0.010859p each for cancellation (1) (2)(2015: Repurchase of 3,532,228 shares of 0.065180p each for cancellation)2017 Issue of 238,169 shares of 0.018911p each — —(2016: Issue of 7,625,126 shares of 0.010859p each) — —

2017 Closing balance of 238,169 shares of 0.018911p each — 1


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16. Capital and reserves Capital reserves1

Gains and HoldingCalled up Capital losses on gains and

share Share redemption sales of losses on Unrealised Revenuecapital premium reserve investments investments reserve reserve1 Total£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Opening balance 6,279 82,761 13,591 162,721 63,943 (2,358) 3,930 330,867 Net foreign currency gains on other balances — — — 3,619 — — — 3,619Unrealised foreign currency losses on loan and

private placement — — — — — (4,046) — (4,046)Gains on sales of investments based on the

carrying value at the previous balance sheetdate — — — 7,976 — — — 7,976

Net movement in investment holding gainsand losses — — — — 71,174 — — 71,174

Unrealised gains on foreign currency contracts — — — — — 376 — 376Transfer on disposal of investments — — — 36,492 (36,492) — — —Realised losses on foreign currency contracts — — — (123) — 123 — —Realised gains on close out of futures contracts — — — 717 — — — 717Unrealised gains on futures from prior period

now realised — — — 297 — (297) — —Repurchase and cancellation of the Company’s

own shares (34) — 34 (1,724) — — — (1,724)Share conversions during the year — 1,353 18 (1,371) — — — —Adjustment on repurchase of deferred shares issued

arising from share conversions (1,221) — 1,221 — — — — —Management fee and finance costs

charged to capital — — — (2,872) — — — (2,872)Other capital charges — — — (73) — — — (73)Dividends paid in the year — — — — — — (8,874) (8,874)Retained revenue for the year — — — — — — 10,815 10,815

Closing balance 5,024 84,114 14,864 205,659 98,625 (6,202) 5,871 407,955

1 These reserves form the distributable reserve of the Company and may be used to fund distribution of profits to investors via dividend payments.

17. Net asset value per share

2017 2016

Growth shareOrdinary shareholders’ funds (£’000) 248,601 202,165Number of shares in issue 77,220,608 77,833,926 Net asset value per share 321.9p 259.7p

Income shareOrdinary shareholders’ funds (£’000) 159,354 128,702Number of shares in issue 93,769,494 93,884,791Net asset value per share 169.9p 137.1p





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18. Reconciliation of net return/(loss) on ordinary activities before finance costs and taxation to net cashinflow/(outflow) from operations before dividends and interest

2017 2016£’000 £’000

Net return/(loss) on ordinary activities before finance costs and taxation 90,871 (3,322)(Less capital return)/add capital loss before finance costs and taxation (77,767) 12,983 Scrip dividends included in income (438) (80)(Increase)/decrease in accrued income and other debtors (909) 445 Increase in accrued expenses 16 1 Management fee charged to capital (1,976) (1,787)Overseas withholding tax (1,877) (1,646)Dividends received (11,612) (9,827)Interest received on cash and cash equivalents (2) (104)Realised gain on foreign currency transactions 2,609 225 Realised gain on liquidity fund 1,307 1,504

Net cash inflow/(outflow) from operations before dividends and interest 222 (1,608)

19. Contingent liabilities and capital commitmentsAt the balance sheet date there were no contingent liabilities or capital commitments (2016: none).

20. Related party transactionsDetails of the management contract are set out in the Directors’ Report on page 40. The management fee payable to the Managerfor the year was £2,994,000 (2016: £2,684,000), of which £nil (2016: £nil) was outstanding at the year end.

During the year £156,000 (2016: £174,000) was payable to the Manager for the marketing and administration of savings schemeproducts, of which £16,000 (2016: £nil) was outstanding at the year end.

Included in administration expenses in note 6 on page 63 are safe custody fees amounting to £47,000 (2016: £46,000) payable toJPMorgan Chase of which £9,000 (2016: £8,000) was outstanding at the year end.

The Manager may carry out some of its dealing transactions through group subsidiaries. These transactions are carried out at arm’slength. Commission amounting to £35,000 (2016: £62,000) was payable to JPMorgan Securities Limited for the year of which £nil(2016: £nil) was outstanding at the year end.

The Company holds investments in funds managed by JPMAM. At 31st March 2017 these were valued at £14.2 million (2016:£15.0 million) and represented 3.3% (2016: 4.1%) of the Company’s investment portfolio. During the year the Company made £nilpurchases of such investments (2016: £nil) and sales with a total value of £3.3 million (2016: £nil). Income amounting to £168,000(2016: £178,000) was receivable from these investments during the year of which £nil (2016: £nil) was outstanding at the year end.

The Company also holds cash in the JPMorgan Euro Liquidity Fund, managed by JPMAM. At the year end this was valued at£20.0 million (2016: £12.3 million). Interest amounting to £66,000 (2016: £13,000) was payable during the year of which £nil (2016:£nil) was outstanding at the year end.

Stock lending income amounting to £101,000 (2016: £146,000) was receivable by the Company during the year. JPMAM commissionsin respect of such transactions amounted to £18,000 (2016: £26,000).

Handling charges on dealing transactions amounting to £73,000 (2016: £52,000) were payable to JPMorgan Chase during the year ofwhich £12,000 (2016: £6,000) was outstanding at the year end.

At the year end, total cash of £6.0 million (2016: £4.2 million) was held with JPMorgan Chase. A net amount of interest of £2,000(2016: £1,000) was receivable by the Company during the year from JPMorgan Chase of which £nil (2016: £nil) was outstanding at theyear end.

Full details of Directors’ remuneration and shareholdings can be found on page 46 and in note 6 on page 63.


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

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

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

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

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

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

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

Details of the valuation techniques used by the Company are given in note 1(b) on page 59.

The following table sets out the fair value measurements using the FRS 102 hierarchy at 31st March.

2017 2016Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000

Level 11 435,814 — 363,928 —Level 22 394 (18) 446 (569)

Total 436,208 (18) 364,374 (569)

1 Includes future currency contracts as at 31st March 2016.2 Forward foreign currency contracts.

There were no transfers between Level 1, 2 or 3 during the year (2016: nil).

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

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

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

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

– investments in Continental European equity shares, collective investment funds and fixed interest securities which are held inaccordance with the Company’s investment objective;

– cash held within a liquidity fund;

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

– futures contracts, the purpose of which is to effect changes in the level of the Company’s gearing;

– short term forward currency contracts for the purpose of settling short term liabilities; and

– a Euro denominated bank loan and private placement, the purpose of which are to finance the Company’s operations.





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22. Financial instruments’ exposure to risk and risk management policies continued

(a) Market risk

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

(i) Currency risk

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

Management of currency risk

The Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board, which meetson at least four occasions each year. The Manager measures the risk to the Company of the foreign currency exposure byconsidering the effect on the Company’s net asset value and income of a movement in the rates of exchange to which theCompany’s assets, liabilities, income and expenses are exposed. Foreign currency borrowing may be used to limit theCompany’s exposure to anticipated changes in exchange rates which might otherwise adversely affect the sterling value of theportfolio of investments. This borrowing is limited to currencies and amounts commensurate with the asset exposure to thosecurrencies. Income denominated in foreign currencies is converted to sterling on receipt. The Company may use short termforward currency contracts to manage working capital requirements.

Foreign currency exposure

The fair value of the Company’s monetary items that have foreign currency exposure at 31st March are shown below. Where theCompany’s equity investments (which are not monetary items) are priced in a foreign currency, they have been includedseparately in the analysis so as to show the overall level of exposure.

2017EUR CHF SEK DKK NOK Other TOTAL£’m £’m £’m £’m £’m £’m £’m

Current assets less current liabilities excluding the foreign currency bank loan and private placement 38.5 7.9 (6.5) (2.6) (11.3) — 26.0

Foreign currency bank loan and private placement (55.4) — — — — — (55.4)

Foreign currency exposure on net monetary items (16.9) 7.9 (6.5) (2.6) (11.3) — (29.4)

Investments held at fair value through profit or loss 292.5 68.9 32.1 17.1 15.6 0.4 426.6

Total net foreign currency exposure 275.6 76.8 25.6 14.5 4.3 0.4 397.2


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2016EUR CHF SEK DKK NOK Other TOTAL£’m £’m £’m £’m £’m £’m £’m

Current assets less current liabilities excluding the foreign currency bank loan and private placement 16.5 20.6 (8.5) 0.7 (11.6) — 17.7

Foreign currency bank loan and private placement (51.3) — — — — — (51.3)

Foreign currency exposure on net monetary items (34.8) 20.6 (8.5) 0.7 (11.6) — (33.6)

Investments held at fair value through profit or loss 252.9 45.2 28.1 14.1 15.3 0.4 356.0

Total net foreign currency exposure 218.1 65.8 19.6 14.8 3.7 0.4 322.4

In the opinion of the Directors, the above year end amounts are broadly representative of the exposure to foreign currency riskduring the year. This analysis is presented on an un-hedged basis.

Foreign currency sensitivity

The following table illustrate the sensitivity of return after taxation for the year and net assets with regard to the Company’smonetary financial assets and financial liabilities and exchange rates. The sensitivity analysis is based on the Company’smonetary currency financial instruments held at each balance sheet date and the income receivable in foreign currency andassumes a 10% (2016: 10%) appreciation or depreciation in sterling against the Euro, and the other currencies to which theCompany is exposed, which is considered to be a reasonable illustration based on the volatility of exchange rates during the year.

2017 2016If sterling If sterling If sterling If sterling

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

Statement of Comprehensive Income – return after taxationRevenue return (1,468) 1,468 (1,113) 1,113Capital return 2,939 (2,939) 3,359 (3,359)

Total return after taxation for the year 1,471 (1,471) 2,246 (2,246)

Net assets 1,471 (1,471) 2,246 (2,246)

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

(ii) Interest rate risk

Interest rate movements may affect the level of income receivable on cash deposits, the liquidity fund and the interest payableon variable rate borrowings when interest rates are reset.

Management of interest rate risk

Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The Company’s gearing policy is tooperate within a range of 10% net cash to 20% geared in normal market conditions.

Interest rate exposure

The Company has a private placement carrying a fixed rate of interest. The exposure of financial assets and liabilities to floatinginterest rates using the year end figures, giving cash flow interest rate risk when rates are reset, is shown below.





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

(ii) Interest rate risk continued

Interest rate exposure continued

2017 2016£’000 £’000

Exposure to floating interest rates:Cash and short term deposits 5,953 4,247JPMorgan Euro Liquidity Fund 19,967 12,336Bank loan (12,830) (11,892)

Total exposure 13,090 4,691

Interest receivable on cash balances, or paid on overdrafts, is at a margin below or above LIBOR respectively (2016: same).

The target interest earned/(paid) on the JPMorgan Euro Liquidity Fund is the 7 day Euro London Interbank Bid Rate.

Details of the bank loan and private placement are given in note 13 and 14 on pages 68 and 69.

Interest rate sensitivity

The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 1% (2016: 1%) increaseor decrease in interest rates in regards to the Company’s monetary financial assets and financial liabilities. This level of changeis considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is basedon the Company’s monetary financial instruments held at the balance sheet date with all other variables held constant.

2017 20161% increase 1% decrease 1% increase 1% decrease

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

Statement of Comprehensive Income – return after taxationRevenue return 216 (216) 127 (127)Capital return (85) 85 (80) 80

Total return after taxation for the year 131 (131) 47 (47)

Net assets 131 (131) 47 (47)

In the opinion of the Directors, this sensitivity analysis may not be representative of the Company’s future exposure to interestrate changes due to fluctuations in the level of cash balances, cash held in the liquidity fund and amounts drawn down on theCompany’s loan facility.

(iii) Other price risk

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

Management of other price risk

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


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Other price risk exposure

The Company’s total exposure to changes in market prices at 31st March comprises its holdings in equity investments asfollows:

2017 2016£’000 £’000

Investments held at fair value through profit or loss 435,814 363,631

The above data is broadly representative of the exposure to other price risk during the current and comparative year.

Concentration of exposure to market price risk

An analysis of the Company’s investments is given on pages 13 and 23. This shows that the majority of the investmentportfolio’s value is in European equities but there is no concentration of exposure to any one European country. It should alsobe noted that an investment may not be entirely exposed to the economic conditions in its country of domicile or of listing.

Other price risk sensitivity The following table illustrates the sensitivity of the return after taxation for the year and net assets to an increase or decreaseof 10% (2016: 10%) in the market value of equity investments. This level of change is considered to be a reasonable illustrationbased on observation of current market conditions. The sensitivity analysis is based on the Company’s equities, adjusting forchanges in the management fee but with all other variables held constant.

2017 201610% increase 10% decrease 10% increase 10% decreasein fair value in fair value in fair value in fair value

£’000 £’000 £’000 £’000

Statement of Comprehensive Income – return after taxationRevenue return (111) 111 (92) 92Capital return 43,366 (43,366) 36,182 (36,182)

Total return after taxation 43,255 (43,255) 36,090 (36,090)

Net assets 43,255 (43,255) 36,090 (36,090)

(b) Liquidity risk

This is the risk that the Company will encounter difficulty in meeting its obligations associated with financial liabilities that are settledby delivering cash or another financial asset.

Management of the risk Liquidity risk is not significant as the Company’s assets comprise mainly readily realisable securities, which can be sold to meetfunding requirements if necessary. Short term flexibility is achieved through the use of overdraft facilities.

The Board’s policy is for the Company to remain fully invested in normal market conditions and that short term borrowings be used tomanage short term liabilities and working capital requirements and to gear the Company as appropriate.





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22. Financial instruments’ exposure to risk and risk management policies continued(b) Liquidity risk

Liquidity risk exposureContractual maturities of the financial liabilities, based on the earliest date on which payment can be required are as follows:

2017More than

Three three monthsmonths but not more More thanor less than one year one year Total£’000 £’000 £’000 £’000

Creditors: amounts falling due within one yearSecurities purchased awaiting settlement 57 — — 57 Repurchase of the Company’s own shares awaiting settlement 263 — — 263 Bank loan, including interest 28 12,842 — 12,870 Other creditors and accruals 150 — — 150Derivative financial instruments 18 — — 18

Creditors: amounts falling due after more than one yearMetlife Private Placement, including interest 396 867 62,803 64,066

912 13,709 62,803 77,424

2016More than

Three three monthsmonths but not more More thanor less than one year one year Total£’000 £’000 £’000 £’000

Creditors: amounts falling due within one yearSecurities purchased awaiting settlement 55 — — 55Bank loan, including interest 128 11,903 — 12,031Other creditors and accruals 126 — — 126Derivative financial instruments 569 — — 569

Creditors: amounts falling due after more than one yearMetlife Private Placement, including interest 263 815 59,488 60,566

1,141 12,718 59,488 73,347

The liabilities shown above represent future contractual payments and therefore may differ from the amounts shown in theStatement of Financial Position.

(c) Credit risk

Credit risk is the risk that the failure of the counterparty to a transaction to discharge its obligations under that transaction couldresult in loss to the Company.

Management of credit risk

Portfolio dealing

The Company invests in markets that operate DVP (Delivery Versus Payment) settlement. The process of DVP mitigates the risk oflosing the principal of a trade during the settlement process. The Manager continuously monitors dealing activity to ensure best


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execution, a process that involves measuring various indicators including the quality of trade settlement and incidence of failedtrades. Counterparty lists are maintained and adjusted accordingly.

Cash and cash equivalents

Counterparties are subject to regular credit analysis by the Manager and deposits can only be placed with counterparties that havebeen approved by JPMAM’s Counterparty Risk Group. The Board regularly reviews the counterparties used by the Manager. At theyear end the cash balance of £6.0 million (2016: £4.2 million) was placed across a range of suitably approved counterparties in linewith the Board’s concentration guidelines. The JPMorgan Euro Liquidity Fund has a AAA rating.

Exposure to JPMorgan Chase

JPMorgan Chase Bank, N.A. is the custodian of the Company’s assets. The Company’s assets are segregated from JPMorgan Chase’sown trading assets. Therefore these assets are designed to be protected from creditors in the event that JPMorgan Chase were tocease trading.

The Depositary, BNY Mellon Trust and Depositary (UK) Limited, is responsible for the safekeeping of all custodial assets of theCompany and for verifying and maintaining a record of all other assets of the Company. However, no absolute guarantee can be givenon the protection of all the assets of the Company.

Credit risk exposure

The amounts shown in the Statement of Financial Position under current assets represent the maximum exposure to credit risk at thecurrent and comparative year ends.

The aggregate value of securities on loan at 31st March 2017 amounted to £5.1 million (2016: £12.8 million) and the maximum value ofstock on loan during the year amounted to £33.0 million (2016: £20.1 million). Collateral is obtained by JPMorgan Asset Managementand is called in on a daily basis to a value of 102% (2016: same) of the value of the securities on loan if that collateral is denominatedin the same currency as the securities on loan and 105% (2016: same) if it is denominated in a different currency.

(d) Fair values of financial assets and financial liabilities

All financial assets and liabilities are either included in the Statement of Financial Position at fair value or the carrying amount is areasonable approximation of fair value except for the Metlife Private Placement which the Company has in issue. The fair value of thePrivate Placement has been calculated using discounted cash flow techniques, using the yield from a similarly dated Germangovernment bond plus a margin based on the five year average for the AA Barclays Euro Corporate Bond spread.

Carrying value Fair value

2017 2016 2017 2016£’m £’m £’m £’m

Euro 50 million 2.69% Metlife Private Placement 25th August 2035 42.5 39.4 51.1 47.0





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23. Capital management policies and proceduresThe Company’s debt and capital structure comprises the following:

2017 2016£’000 £’000

DebtBank loan 12,830 11,892Private Placement 42,544 39,424

Total debt 55,374 51,316

EquityCalled up share capital 6,245 6,279Reserves 401,710 324,588

Total equity 407,955 330,867

Total debt and equity 463,329 382,183

The Company’s capital management objectives are to ensure that it will continue as a going concern and to maximise the income andcapital return to its Income and Growth shareholders through an appropriate level of gearing.

The Board’s policy is to limit gearing within the range of 10% net cash to 20% geared.

2017 2016£’000 £’000

Investments held at fair value through profit or loss 435,814 363,631

Net assets 407,955 330,867

Gearing 6.8% 9.9%

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

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

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

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

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

24. Subsequent eventsThe Directors have evaluated the period since the year end and have not rated any subsequent events.


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Regulatory Disclosures

The Fund engages in Securities Financing Transactions (as defined in Article 3 of Regulation (EU) 2015/2365, securities financingtransactions include repurchase transactions, securities or commodities lending and securities or commodities borrowing, buy-sell backtransactions or sell-buy back transactions and margin lending transactions). In accordance with Article 13 of the Regulation, the Company’sinvolvement in and exposures related to SFTR for the accounting period ended 31st March 2017 are detailed below.

Global Data

Amount of securities on loan

The total value of securities on loan as a proportion of the Company’s total lendable assets, as at the balance sheet date, is 1.17%. Totallendable assets represents the aggregate value of assets types forming part of the Company’s securities lending programme.

Amount of assets engaged in securities lending

The following table represents the total value of assets engaged in securities lending:

Value£’000 % of AUM

Securities lending 5,083 1.25%

Concentration Data

Collateral issuers

The following table lists the issuers by value of non-cash collateral received by the Company by way of title transfer collateral arrangementacross securities lending transactions, as at the balance sheet date:

Collateral ValueIssuer £’000

United Kingdom Treasury 2,398 French Republic Government 1,310 Republic of Austria Government 425 United States of America Treasury 398 Federal Republic of Germany 349 Kingdom of Belgium Government 213 Kingdom of Netherlands Government 76 Republic of Finland Government 69

5,238

Non-cash collateral received by way of title transfer collateral arrangement in relation to securities lending transactions cannot be sold,re-invested or pledged.

SECURITIES FINANCING TRANSACTIONS REGULATION (‘SFTR’) DISCLOSURES (UNAUDITED)


Regulatory Disclosures continued

SECURITIES FINANCING TRANSACTIONS REGULATION (‘SFTR’) DISCLOSURES (UNAUDITED)CONTINUED


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Counterparties

The following table provides details of the counterparties (based on gross volume of outstanding transactions with exposure on a grossabsolute basis) in respect of securities lending as at the balance sheet date:

ValueCounterparty £’000

Morgan Stanley 2,290 UBS 1,112 Goldman Sachs 694 Merrill Lynch International 689 Credit Suisse 298

Total 5,083

Aggregate transaction data

Type, quality and currency of collateral

The following table provides an analysis of the type, quality and currency of collateral received by the Company in respect of securitieslending transactions as at the balance sheet date.

ValueType Quality Currency £’000

Bonds Investment Grade GBP 2,398 Bonds Investment Grade EUR 2,442 Bonds Investment Grade USD 398 Cash n/a USD 174

Total 5,412

Maturity tenor of collateral

The following table provides an analysis of the maturity tenor of collateral received in relation to securities lending transactions as at thebalance sheet date.

ValueMaturity £’000

less than one day 174 1 to 4 weeks 133 1 to 3 months 184 3 to 6 months 197 3 to 12 months 66 more than 1 year 4,658

Total 5,412

Maturity tenor of Security lending transactions

The Company’s securities lending transactions have open maturity.


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Country in which counterparties are established

Counterparty Country of incorporation

Morgan Stanley United KingdomUBS United KingdomGoldman Sachs United KingdomMerrill Lynch International United KingdomCredit Suisse United Kingdom

Settlement and clearing

The Company’s securities lending transactions including related collaterals are settled and cleared either bi-laterally, tri-party or througha central counterparty.

Re-use of collateral

Share of collateral received that is reused and reinvestment return

Non-cash collateral received by way of title transfer collateral arrangement in relation to securities lending transactions cannot be sold,re-invested or pledged.

Cash collateral received in the context of securities lending transactions may be reused in accordance with the provisions contained withinthe Prospectus, however the Company does not currently reinvest cash collateral received in respect of securities lending transactions.

Safekeeping of collateralAll collateral received (£’000: 2,239) by the Company in respect of securities lending transactions as at the balance sheet date is held by theDepositary.

Return and cost JPMorgan Chase Bank, N.A (JPMCB), the lending agent, receives a fee of 15% of the gross revenue for its services related to the StockLending Transactions. The remainder of the revenue, 85%, is received by the Company i.e. for the benefit of shareholders.



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

The Company’s maximum and actual leverage (see Glossary of Terms and Definitions on page 95) levels at 31st March 2017 are shownbelow:

Gross CommitmentMethod Method

GrowthMaximum limit 350% 350%Actual 122% 122%

IncomeMaximum limit 350% 350%Actual 164% 148%

JPMorgan Funds Limited (‘JPMF’) Remuneration JPMF is the authorised manager of the Company and is part of the J.P. Morgan Chase & Co. group of companies. In this disclosure, the terms‘J.P. Morgan’ or ‘Firm’ refer to that group, and each of the entities in that group globally, unless otherwise specified. This disclosure hasbeen prepared in accordance with the AIFMD, the European Commission Delegated Regulation supplementing the AIFMD, the ‘Guidelines onSound Remuneration Policies’ under the AIFMD issued by the European Securities and Markets Authority and the Financial ConductAuthority Handbook (SYSC 19B: The AIFM Remuneration Code and FUND 3.3).

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

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

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

Regulatory Disclosures continued


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Capital Structure The Company has two share classes, each with distinct investmentpolicies, objectives and underlying asset pools. Each share class islisted separately and traded on the London Stock Exchange. Thiscapital structure means that shareholders may benefit from greaterinvestment flexibility in a tax-efficient manner.

• Growth Shares Capital growth from Continental European investments, byconsistent out-performance of the benchmark and a rising shareprice over the longer term by taking carefully controlled risksthrough an investment method that is clearly communicated toshareholders.

• Income Shares To provide a growing income together with the potential forlong-term capital growth by investing in a portfolio ofinvestments that is diversified amongst countries, sectors andmarket capitalisations within the universe of ContinentalEuropean companies.

Conversion Opportunities Shareholders in either of the two share classes are able to convertsome or all of their shares into shares of the other class without

such conversion being treated, under current law, as a disposal forUK capital gains tax purposes. The conversion is annual taking placeon the 15th March.

The Company, or its Manager, makes no administrative charge forany of the above conversions.

Conversion between the share classes Those who hold shares through the JPM Investment Trust SavingsPlans must submit a conversion instruction form which can befound at www.jpmeuropean.co.uk Instructions for CREST holderscan also be found at this address. Those who hold shares incertificated form on the main register must complete theconversion notice printed on the reverse of their certificate.

Instructions must be received in the month of February for theMarch conversion.

The number of shares that will arise upon conversion will bedetermined on the basis of the relative net asset values of eachshare class.

More details concerning conversion instruction forms can be foundon the Company’s web site: www.jpmeuropean.co.uk

CAPITAL STRUCTURE AND CONVERSION BETWEEN SHARE CLASSES

Shareholder Information


Shareholder Information continued


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NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the eighty eighth Annual GeneralMeeting of JPMorgan European Investment Trust plc will be held at60 Victoria Embankment, London EC4Y 0JP on Monday, 17th July2017 at 2.30 p.m. for the following purposes:

1. To receive the Directors’ Report, the Annual Accounts and theAuditors’ Report for the year ended 31st March 2017.

2. To approve the Directors’ Remuneration Policy.

3. To approve the Directors’ Remuneration Report for the yearended 31st March 2017.

4. To reappoint Andrew Adcock a Director of the Company.

5. To reappoint Josephine Dixon a Director of the Company.

6. To reappoint Stephen Goldman a Director of the Company.

7. To reappoint Stephen Russell a Director of the Company.

8. To reappoint Jutta af Rosenborg a Director of the Company.

9. To reappoint Ernst & Young LLP as auditor to the Companyand to authorise the Directors to determine theirremuneration for the ensuing year.

Special Business To consider the following resolutions:

Authority to allot new shares – Ordinary Resolution10. THAT the Directors of the Company be and they are hereby

generally and unconditionally authorised, in substitution ofany authorities previously granted to the Directors, pursuantto and in accordance with Section 551 of the Companies Act2006 (the ‘Act’) to exercise all the powers of the Company toallot shares in the Company and to grant rights to subscribefor, or to convert any security into, shares in the Company(‘Rights’) up to an aggregate nominal amount of £620,376,(being approximately 10% of the issued share capital of theGrowth and Income share classes of the Company as at9th June 2017), provided that this authority shall expire at theconclusion of the Annual General Meeting of the Company tobe held in 2018 unless renewed at a general meeting prior tosuch time, save that the Company may before such expirymake offers or agreements which would or might requireshares to be allotted or Rights to be granted after such expiryand so that the Directors of the Company may allot sharesand grant Rights in pursuance of such offers or agreementsas if the authority conferred hereby had not expired.

Authority to disapply pre-emption rights on allotment ofrelevant securities – Special Resolution11. THAT, subject to the passing of Resolution 10 set out above,

the Directors of the Company be and they are herebyempowered pursuant to Sections 570 and 573 of the Act toallot equity securities (within the meaning of Section 560 ofthe Act) for cash pursuant to the authority conferred by

Resolution 10 as if Section 561(1) of the Act did not apply toany such allotment, provided that this power shall be limitedto:

(a) the allotment of equity securities in the Company byway of rights issue, open offer or otherwise to holdersof Growth shares and Income shares where the equitysecurities respectively attributable to the interests ofall Growth shares and Income shares are proportionateto the respective numbers of Growth shares andIncome shares held by them subject to such exclusionsor other arrangements as the Board may deemnecessary or expedient in relation to fractionalentitlements or local or practical problems under thelaws of, or the requirements of, any regulatory body orany stock exchange or any territory or otherwisehowsoever; and/or

(b) the allotment (otherwise than pursuant to subparagraph (a) above) of equity securities up to anaggregate nominal value of approximately £620,376(being approximately 10% of the total issued sharecapital of the Growth and Income share classes of theCompany as at 9th June 2017) at a price not less thanthe net asset value per share; and shall expire upon theexpiry of the general authority conferred by Resolution10 above, save that the Company may before suchexpiry make offers or agreements which would ormight require equity securities to be allotted after suchexpiry and the Board may allot equity securities inpursuance of such offers or agreements as if the powerconferred hereby had not expired.

Authority to Repurchase the Company’s shares – SpecialResolution 12. THAT the Company be generally and, subject as hereinafter

appears, unconditionally authorised in accordance withSection 701 of the Act to make market purchases (within themeaning of Section 693 of the Act) of its issued Growthshares and Income shares (both being classes of ordinaryshares in the capital of the Company)

PROVIDED ALWAYS THAT

(i) the maximum number of Growth and Income shareshereby authorised to be purchased shall be 11,570,855or 14,056,047 respectively, or, if different, that numberof Growth and Income shares which is equal to 14.99%of the issued share capital of the relevant share classas at the date of the passing of this Resolution;

(ii) the minimum price which may be paid for any Growthor Income share shall be 5p or 2.5p respectively;

(iii) the maximum price which may be paid for any ordinaryshare shall be an amount equal to: (a) 105% of the


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average of the middle market quotations for a Growthor Income share taken from and calculated byreference to the London Stock Exchange Daily OfficialList for the five business days immediately precedingthe day on which the share is purchased; or (b) theprice of the last independent trade; or (c) the highestcurrent independent bid;

(iv) any purchase of Growth or Income shares will be madein the market for cash at prices below the prevailingnet asset value per Growth or Income share (asdetermined by the Directors) at the date following notmore than seven days before the date of purchase;

(v) the authority hereby conferred shall expire on16th January 2019 unless the authority is renewed atthe Company’s Annual General Meeting in 2018 or atany other general meeting prior to such time; and

(vi) the Company may make a contract to purchase Growthor Income shares under the authority hereby conferredprior to the expiry of such authority and may makea purchase of shares pursuant to any such contractnotwithstanding such expiry.

Authority to make off-market purchases – Special Resolution 13. THAT the proposed Contingent Purchase contract between

Winterflood Securities Limited and JPMorgan EuropeanInvestment Trust plc to enable the Company to make off-market purchases of its own securities pursuant toSection 694 of the Act in the form produced at the meetingand initialled by the Chairman, be and is hereby approvedand the Company be and is hereby authorised to enter intoand perform such contract, but so that the approval andauthority conferred by this resolution shall expire on the dayimmediately preceding the date which is 18 months after thepassing of this resolution or, if earlier, the next AnnualGeneral Meeting of the Company.

Adoption of New Articles of Association – Special Resolution 14. THAT the Articles of Association produced to the meeting and

initialled by the Chairman of the meeting for the purpose ofidentification be adopted as the new Articles of Association ofthe Company in the substitution for, and to the exclusion of,the existing Articles of Association with effect from theconclusion of the 2017 Annual General Meeting.

By order of the BoardPaul Winship, for and on behalf of JPMorgan Funds Limited, Secretary

12th June 2017

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

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

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

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

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

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

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



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

Representatives should bring to the Meeting evidence of theirappointment, including any authority under which it is signed.

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

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

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

11. A copy of this notice has been sent for information only to persons whohave been nominated by a member to enjoy information rights underSection 146 of the Companies Act 2006 (a ‘Nominated Person’). Therights to appoint a proxy can not be exercised by a Nominated Person:

they can only be exercised by the member. However, a NominatedPerson may have a right under an agreement between him and themember by whom he was nominated to be appointed as a proxy for theMeeting or to have someone else so appointed. If a Nominated Persondoes not have such a right or does not wish to exercise it, he may havea right under such an agreement to give instructions to the member asto the exercise of voting rights.

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

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

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

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

16. As at 9th June 2017 (being the latest business day prior to thepublication of this Notice), the Company’s issued share capital consistsof 77,190,492 Growth shares and 93,769,494 Income shares. Votingrights are calculated by reference to the share voting numbers which,as at 31st March 2017, were 3.219 (Growth) and 1.699 (Income).Therefore the total voting rights in the Company are 407,944,945.

17. A copy of the current articles of association of the Company and theproposed new articles of association of the Company will be availablefor inspection during normal business hours (Saturdays, Sundays andpublic holidays excepted) at the offices of JPMorgan Asset Management(UK) Limited, 60 Victoria Embankment, London EC4Y 0JP, from thedate of the Annual Report in which this notice is included up until theclose of the AGM. Copies will also be available at 60 VictoriaEmbankment, London EC4Y 0JP, being the place of the Annual GeneralMeeting, for 15 minutes prior to, and during, the meeting.

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

NOTICE OF ANNUAL GENERAL MEETING CONTINUED

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NOTICE OF SEPARATE CLASS MEETING OF GROWTHSHAREHOLDERS

JPMorgan European Investment Trust plc(Incorporated and registered in England and Wales with registered number 237958)

NOTICE IS HEREBY GIVEN that a separate class meeting of holdersof Growth Shares in JPMorgan European Investment Trust plc (the‘Company’) will be held at 60 Victoria Embankment, LondonEC4Y 0JP at 3.15 p.m. on Monday, 17th July 2017 (or as soonthereafter as the Annual General Meeting of the Company shallhave concluded or adjourned) for the purpose of considering and, ifthought fit, passing the following resolution as a special resolution,namely:

Special resolutionTHAT the holders of Growth Shares in the Company hereby sanctionand consent pursuant to Article 16 of the Company's Articles ofAssociation to any variation, modification or abrogation of therights and privileges attached to the Growth Shares to be effectedby the passing of the Special Resolution (Resolution 14) set out inthe Notice of Annual General Meeting of the Company dated12th June 2017.

By order of the BoardPaul Winship, for and on behalf ofJPMorgan Funds Limited,Secretary

Registered office:60 Victoria EmbankmentLondon EC4Y 0JP

12th June 2017


1. Only Growth Shareholders are entitled to attend and vote at theGrowth Class Meeting. A Growth Shareholder may appoint anotherperson(s) (who need not be a member of JPMorgan EuropeanInvestment Trust plc) to exercise all or any of his rights to attend, speakand vote at the Growth Class Meeting. A Growth Shareholder canappoint more than one proxy in relation to the Growth Share ClassMeeting, provided that each proxy is appointed to exercise the rightsattaching to different shares held by him. If a Growth Shareholderwishes to appoint more than one proxy and so requires additionalproxy forms, the Growth Shareholder should contact JPMorganEuropean Investment Trust plc’s Registrars Equiniti Limited,Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA.

2. A proxy does not need to be a Growth Shareholder but must attend theGrowth Class Meeting to represent you. Your proxy could be theChairman, another Director of JPMorgan European Investment Trust plcor another person who has agreed to attend to represent you. Detailsof how to appoint the Chairman or another person(s) as your proxy orproxies using the proxy form are set out in the notes to the proxy form.If a voting box on the proxy form is left blank, the proxy or proxies willexercise his/their discretion both as to how to vote and whetherhe/they abstain(s) from voting. Your proxy must attend the GrowthShare Class Meeting for your vote to count. Appointing a proxy orproxies does not preclude you from attending the Growth ClassMeeting and voting in person.

3. Any instrument appointing a proxy, to be valid, must be lodged inaccordance with the instructions given on the proxy form no later than48 hours prior to the Growth Class Meeting (i.e. excluding weekendsand bank holidays).

4. You may change your proxy instructions by returning a new proxyappointment. The deadline for receipt of proxy appointments alsoapplies in relation to amended instructions. Any attempt to terminateor amend a proxy appointment received after the relevant deadline willbe disregarded. Where two or more valid separate appointments ofproxy are received in respect of the same Growth Share in respect ofthe same Growth Class Meeting, the one which is last received(regardless of its date or the date of its signature) shall be treated asreplacing and revoking the other or others as regards that GrowthShare; if JPMorgan European Investment Trust plc is unable todetermine which was last received, none of them shall be treated asvalid in respect of that Growth Share.

5. The quorum for the Growth Class Meeting shall be two persons entitledto vote and holding or representing by proxy not less than one-third innominal value of the issued Growth Shares. In the event that a quorumof Growth Shareholders is not present in person or by proxy within fiveminutes of the start time of the Growth Class Meeting, the Chairmanshall adjourn the Growth Class Meeting for a further period of fiveminutes. The Growth Class Meeting will then be re-convened, subject toa quorum of one person holding Growth Shares being present inperson or by proxy.


6. To be entitled to attend and vote at the Growth Class Meeting (and forthe purpose of the determination by JPMorgan European InvestmentTrust plc of the number of votes they may cast), Growth Shareholdersmust be entered as such on JPMorgan European Investment Trust plc’sregister of members as at 6.30 p.m. two business days prior to theGrowth Class Meeting (the ‘specified time’). If the Growth Class Meetingis adjourned to a time not more than 48 hours after the specified timeapplicable to the original Growth Share Class Meeting, that time willalso apply for the purpose of determining the entitlement of GrowthShareholders to attend and vote (and for the purpose of determiningthe number of votes they may cast) at the adjourned Growth ClassMeeting. If, however, the Growth Class Meeting is adjourned for alonger period then, to be so entitled, Growth Shareholders must beentered as such on JPMorgan European Investment Trust plc’s registerof members as at 6.30 p.m. two business days prior to the adjournedGrowth Class Meeting or, if JPMorgan European Investment Trust plcgives notice of the adjourned Growth Class Meeting, at the timespecified in that notice. Changes to entries on the register after thistime shall be disregarded in determining the rights of persons toattend or vote at the Growth Class Meeting or adjourned Growth ClassMeeting. Entry to the Growth Class Meeting will be restricted to GrowthShareholders and their proxy or proxies, with guests admitted only byprior arrangement.

7. A corporation, which is a Growth Shareholder, may appoint anindividual(s) to act as its representative(s) and to vote in person at theGrowth Class Meeting (see instructions given on the proxy form). Inaccordance with the provisions of the Companies Act 2006, each suchrepresentative may exercise (on behalf of the corporation) the samepowers as the corporation could exercise if it were an individualmember of JPMorgan European Investment Trust plc, provided thatthey do not do so in relation to the same Growth Shares. It is thereforeno longer necessary to nominate a designated corporaterepresentative. Representatives should bring to the Growth ClassMeeting evidence of their appointment, including any authority underwhich it is signed.

8. A copy of this Notice of Separate Class Meeting of Growth Shareholdershas been sent for information only to persons who have beennominated by a member to enjoy information rights under Section 146of the Companies Act 2006 (a ‘Nominated Person’). The rights toappoint a proxy cannot be exercised by a Nominated Person: they canonly be exercised by the member. However, a Nominated Person mayhave a right under an agreement between him and the member bywhom he was nominated to be appointed as a proxy for the GrowthClass Meeting or to have someone else so appointed. If a NominatedPerson does not have such a right or does not wish to exercise it, hemay have a right under such an agreement to give instructions to themember as to the exercise of voting rights.

9. You may not use any electronic address provided in this Notice ofSeparate Class Meeting of Growth Shareholders to communicate withJPMorgan European Investment Trust plc for any purposes other thanthose expressly stated.

10. As an alternative to completing a hard copy Form of Proxy, you canappoint a proxy or proxies electronically by visitingwww.sharevote.co.uk. You will need your Voting ID, Task ID andShareholder Reference Number (this is the series of numbers printedunder your name on the Form of Proxy). Alternatively, if you havealready registered with Equiniti Limited’s online portfolio service,Shareview, you can submit your Form of Proxy at www.shareview.co.uk.Full instructions are given on both websites.

11. As at 9th June 2017 (being the latest business day prior to thepublication of this Notice of Separate Class Meeting of GrowthShareholders), 77,190,492 Growth Shares were in issue. Voting rightsare calculated by reference to the share voting number which, as at31st March 2017, was 3.219. Therefore the total voting rights for theGrowth Share Class which may be cast at the Growth Class Meeting asat 12th June 2017 are 248,630,574.

12. CREST members who wish to appoint a proxy or proxies by utilising theCREST electronic proxy appointment service may do so for the GrowthClass Meeting and any adjournment(s) thereof by using the proceduresdescribed in the CREST Manual. See further instructions on the proxyform.

13. A copy of the current articles of association of the Company and theproposed new articles of association of the Company will be availablefor inspection during normal business hours (Saturdays, Sundays andpublic holidays excepted) at the offices of JPMorgan Asset Management(UK) Limited, 60 Victoria Embankment, London EC4Y 0JP, from thedate of the Annual Report in which this notice is included up until theclose of the Growth Class Meeting. Copies will also be available at thesame address, being the place of the Growth Class Meeting, for15 minutes prior to, and during, the meeting.


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NOTICE OF SEPARATE CLASS MEETING OF HOLDERS OF GROWTH SHARES

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NOTICE OF SEPARATE CLASS MEETING OF INCOMESHAREHOLDERS

JPMorgan European Investment Trust plc(Incorporated and registered in England and Wales with registered number 237958)

NOTICE IS HEREBY GIVEN that a separate class meeting of holdersof Income Shares in JPMorgan European Investment Trust plc (the‘Company’) will be held at 60 Victoria Embankment, LondonEC4Y 0JP at 3.25 p.m. on Monday, 17th July 2017 (or as soonthereafter as the class meeting of the holders of Growth Shares inthe Company shall have concluded or adjourned), for the purpose ofconsidering and, if thought fit, passing the following resolution asa special resolution, namely:

Special resolutionTHAT the holders of Income Shares in the Company hereby sanctionand consent pursuant to Article 16 of the Company’s Articles ofAssociation to any variation, modification or abrogation of therights and privileges attached to the Income Shares to be effectedby the passing of the Special Resolution (Resolution 14) set out inthe Notice of Annual General Meeting of the Company dated12th June 2017.

By order of the BoardPaul Winship, for and on behalf ofJPMorgan Funds Limited,Secretary

Registered office:60 Victoria EmbankmentLondon EC4Y 0JP

12th June 2017


1. Only Income Shareholders are entitled to attend and vote at theIncome Class Meeting. A Income Shareholder may appoint anotherperson(s) (who need not be a member of JPMorgan EuropeanInvestment Trust plc) to exercise all or any of his rights to attend, speakand vote at the Income Class Meeting. A Income Shareholder canappoint more than one proxy in relation to the Income Share ClassMeeting, provided that each proxy is appointed to exercise the rightsattaching to different shares held by him. If a Income Shareholderwishes to appoint more than one proxy and so requires additionalproxy forms, the Income Shareholder should contact JPMorganEuropean Investment Trust plc’s Registrars Equiniti Limited,Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA.

2. A proxy does not need to be a Income Shareholder but must attend theIncome Class Meeting to represent you. Your proxy could be theChairman, another Director of JPMorgan European Investment Trust plcor another person who has agreed to attend to represent you. Detailsof how to appoint the Chairman or another person(s) as your proxy orproxies using the proxy form are set out in the notes to the proxy form.If a voting box on the proxy form is left blank, the proxy or proxies willexercise his/their discretion both as to how to vote and whetherhe/they abstain(s) from voting. Your proxy must attend the IncomeShare Class Meeting for your vote to count. Appointing a proxy orproxies does not preclude you from attending the Income ClassMeeting and voting in person.

3. Any instrument appointing a proxy, to be valid, must be lodged inaccordance with the instructions given on the proxy form no later than48 hours prior to the Income Class Meeting (i.e. excluding weekendsand bank holidays).

4. You may change your proxy instructions by returning a new proxyappointment. The deadline for receipt of proxy appointments alsoapplies in relation to amended instructions. Any attempt to terminateor amend a proxy appointment received after the relevant deadline willbe disregarded. Where two or more valid separate appointments ofproxy are received in respect of the same Income Share in respect ofthe same Income Class Meeting, the one which is last received(regardless of its date or the date of its signature) shall be treated asreplacing and revoking the other or others as regards that IncomeShare; if JPMorgan European Investment Trust plc is unable todetermine which was last received, none of them shall be treated asvalid in respect of that Income Share.

5. The quorum for the Income Class Meeting shall be two persons entitledto vote and holding or representing by proxy not less than one-third innominal value of the issued Income Shares. In the event that a quorumof Income Shareholders is not present in person or by proxy within fiveminutes of the start time of the Income Class Meeting, the Chairmanshall adjourn the Income Class Meeting for a further period of fiveminutes. The Income Class Meeting will then be re-convened, subject toa quorum of one person holding Income Shares being present inperson or by proxy.


6. To be entitled to attend and vote at the Income Class Meeting (and forthe purpose of the determination by JPMorgan European InvestmentTrust plc of the number of votes they may cast), Income Shareholdersmust be entered as such on JPMorgan European Investment Trust plc’sregister of members as at 6.30 p.m. two business days prior to theIncome Class Meeting (the ‘specified time’). If the Income Class Meetingis adjourned to a time not more than 48 hours after the specified timeapplicable to the original Income Share Class Meeting, that time willalso apply for the purpose of determining the entitlement of IncomeShareholders to attend and vote (and for the purpose of determiningthe number of votes they may cast) at the adjourned Income ClassMeeting. If, however, the Income Class Meeting is adjourned for alonger period then, to be so entitled, Income Shareholders must beentered as such on JPMorgan European Investment Trust plc’s registerof members as at 6.30 p.m. two business days prior to the adjournedIncome Class Meeting or, if JPMorgan European Investment Trust plcgives notice of the adjourned Income Class Meeting, at the timespecified in that notice. Changes to entries on the register after thistime shall be disregarded in determining the rights of persons toattend or vote at the Income Class Meeting or adjourned Income ClassMeeting. Entry to the Income Class Meeting will be restricted to IncomeShareholders and their proxy or proxies, with guests admitted only byprior arrangement.

7. A corporation, which is a Income Shareholder, may appoint anindividual(s) to act as its representative(s) and to vote in person at theIncome Class Meeting (see instructions given on the proxy form). Inaccordance with the provisions of the Companies Act 2006, each suchrepresentative may exercise (on behalf of the corporation) the samepowers as the corporation could exercise if it were an individualmember of JPMorgan European Investment Trust plc, provided thatthey do not do so in relation to the same Income Shares. It is thereforeno longer necessary to nominate a designated corporaterepresentative. Representatives should bring to the Income ClassMeeting evidence of their appointment, including any authority underwhich it is signed.

8. A copy of this Notice of Separate Class Meeting of Income Shareholdershas been sent for information only to persons who have beennominated by a member to enjoy information rights under Section 146of the Companies Act 2006 (a ‘Nominated Person’). The rights toappoint a proxy cannot be exercised by a Nominated Person: they canonly be exercised by the member. However, a Nominated Person mayhave a right under an agreement between him and the member bywhom he was nominated to be appointed as a proxy for the IncomeClass Meeting or to have someone else so appointed. If a NominatedPerson does not have such a right or does not wish to exercise it, hemay have a right under such an agreement to give instructions to themember as to the exercise of voting rights.

9. You may not use any electronic address provided in this Notice ofSeparate Class Meeting of Income Shareholders to communicate withJPMorgan European Investment Trust plc for any purposes other thanthose expressly stated.

10. As an alternative to completing a hard copy Form of Proxy, you canappoint a proxy or proxies electronically by visitingwww.sharevote.co.uk. You will need your Voting ID, Task ID andShareholder Reference Number (this is the series of numbers printedunder your name on the Form of Proxy). Alternatively, if you havealready registered with Equiniti Limited’s online portfolio service,Shareview, you can submit your Form of Proxy at www.shareview.co.uk.Full instructions are given on both websites.

11. As at 9th June 2017 (being the latest business day prior to thepublication of this Notice of Separate Class Meeting ofIncomeShareholders), 93,769,494 Income Shares were in issue. Votingrights are calculated by reference to the share voting number which, asat 31st March 2017, was 1.699. Therefore the total voting rights for theIncome Share Class which may be cast at the Income Class Meeting asat 12th June 2017 are 159,314,370.

12. CREST members who wish to appoint a proxy or proxies by utilising theCREST electronic proxy appointment service may do so for the IncomeClass Meeting and any adjournment(s) thereof by using the proceduresdescribed in the CREST Manual. See further instructions on the proxyform.

13. A copy of the current articles of association of the Company and theproposed new articles of association of the Company will be availablefor inspection during normal business hours (Saturdays, Sundays andpublic holidays excepted) at the offices of JPMorgan Asset Management(UK) Limited, 60 Victoria Embankment, London EC4Y 0JP, from thedate of the Annual Report in which this notice is included up until theclose of the Income Class Meeting. Copies will also be available at thesame address, being the place of the Income Class Meeting, for15 minutes prior to, and during, the meeting.


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NOTICE OF SEPARATE CLASS MEETING OF HOLDERS OF INCOME SHARES


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APPENDIX

The Company proposes to adopt new articles of association (the‘New Articles’). The principal changes proposed to be introduced inthe New Articles and their effects are set out below.

1. Transfer of RevenueThe Board is recommending an amendment to the Company’scurrent Articles of Association (the ‘Existing Articles’) in order togive the Board the power to transfer revenue reserves from theGrowth pool (JETG) to the Income pool (JETI) in exchange for anequivalent amount of capital reserves transferring from JETI to JETG(the Proposals). The brought forward revenue reserve that accruesin JETG’s balance sheet is not required in order to maintain JETG’sdividend since JETG’s investment objective is to provide capitalappreciation and the level of dividend in any year simply reflectsthe net income earned in that year. This results in fluctuating levelsof dividend pay-outs to shareholders, which is what investorsexpect. Therefore, the revenue reserve in JETG does little to addvalue to shareholders of JETG since it is never distributed.Conversely, JETI’s approach is to pay-out a constant, ideallygrowing, dividend. Thus, revenue reserves are significantly moreuseful to JETI as they can be drawn from in order to maintaindividend levels in years when dividend receipts fall. If shareholdersapprove the special resolutions required to give effect to theProposals, it would be the Board’s intention to transfer retainedrevenue reserves of £2.925 million (at 31st March 2017) standing tothe account of JETG (which have been accumulated over precedingyears) to JETI and to make a corresponding transfer of capitalreserves standing to the account of JETI to JETG. Further, it is theBoard’s intention on an ongoing basis to effect similar transfersbetween JETI and JETG for the reasons set out above.

2. The Alternative Investment Fund ManagersDirective (2011/61/EU) (‘AIFMD’) and theAlternative Investment Fund ManagersRegulations 2013 (SI 2013/1773) (the ‘AIFMRegulations’)

The Board is proposing to make amendments to the ExistingArticles in response to the AIFMD and all applicable rules andregulations implementing that Directive. The proposed newprovisions are as follows:

2.1 The Existing Articles will be amended to provide that the netasset value per share of the Company shall be calculated atleast annually and be disclosed to shareholders from time totime in such manner as may be determined by the Board. Theamendment will have no bearing on current practice andsimply articulates the minimum requirements of the AIFMRegulations.

2.2 The AIFM Regulations require that prior to any new orexisting investor making an investment in the Companycertain prescribed information is to be made available tothem. Therefore, the New Articles will include language withthe effect that such information shall be made available toprospective and existing shareholders in such manner as maybe determined by the Board from time to time (including, incertain cases, on the Company’s website or by electronicnotice).

2.3 The valuation of the Company’s assets will be performed inaccordance with prevailing accounting standards, in line withguidance from the Financial Conduct Authority. This reflectsbest practice and has no bearing on current practice andsimply articulates the minimum requirements of the AIFMRegulations.

2.4 The Existing Articles will be amended to provide that theCompany’s annual report and accounts may be preparedeither in accordance with generally acceptable accountingprinciples of the United Kingdom or such other internationalaccounting standards as may be permitted under the law ofEngland and Wales. The amendment will have no bearing oncurrent practice and simply articulates the minimumrequirements of the AIFM Regulations.

3. International tax regimes requiring theexchange of information

The Board is proposing to include provisions in the New Articles toprovide the Company with the ability to require shareholders toco-operate in respect of the exchange of information to comply withthe Company’s international tax reporting obligations.

The Hiring Incentives to Restore Employment Act 2010 of the UnitedStates of America commonly known as the Foreign Account TaxCompliance Act and all associated regulations and official guidance(‘FATCA’) imposes a system of information reporting on certainentities including foreign financial institutions such as the Companyfollowing the enactment of the UK International Tax Compliance(United States of America) Regulations 2013 on 1st September 2013.These regulations have now been replaced by the International TaxCompliance Regulations 2015 (the ‘Regulations’).

The Existing Articles will be amended to provide the Company withthe ability to require shareholders to co-operate with it in ensuringthat the Company is able to comply with its obligations under theRegulations in order to avoid being deemed to be a‘Nonparticipating Financial Institution’ for the purposes of FATCAand consequently having to pay withholding tax to the US InternalRevenue Service. The Existing Articles will also be amended to



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ensure that the Company will not be liable for any monies thatbecome subject to a deduction or withholding relating to FATCA, assuch liability would be to the detriment of shareholders as a whole.

The Regulations also include the automatic exchange of informationregimes being brought in by the new tax regulation under the OECD(Organisation for Economic Co-operation and Development)Common Reporting Standard for Automatic Exchange of FinancialAccount Information (the Common Reporting Standard) which willrequire investment trust companies to provide personal informationto HMRC on certain investors who purchase shares in investmenttrusts. As a result, the Company will have to provide informationannually to the local tax authority on the tax residency of a numberof non-UK based certified Shareholders and corporate entities.

Therefore, the Existing Articles will also be amended in order toprovide the Company with the ability to require shareholders toco-operate in respect of these broader obligations including itsobligations under the OECD and FATCA.

4. Termination of a director’s appointmentFinally, the Board is proposing to amend the provision in theExisting Articles that provides for automatic termination of aperson’s appointment as a director in circumstances where, byreason of that person’s mental health, a court makes an orderwhich wholly or partly prevents that person from personallyexercising any powers or rights which that person would otherwisehave. This is in response to developments in mental healthlegislation and reflects the position in the model articles for publiccompanies as set out in the Companies (Model Articles) Regulations2008/3229.

APPENDIX CONTINUED


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GLOSSARY OF TERMS AND DEFINITIONS

Return to ShareholdersTotal return to the investor, on a last traded price to last tradedprice basis, assuming that all dividends received were reinvested,without transaction costs, into the shares of the Company at thetime the shares were quoted ex-dividend.

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

Benchmark ReturnTotal return on the benchmark, on a closing-market value to closing-market value basis, assuming that all dividends receivedwere reinvested, without transaction costs, into the shares of theunderlying companies at the time the shares were quoted ex-dividend.

The benchmark is a recognised index of stocks which should notbe taken as wholly representative of the Company’s investmentuniverse. The Company’s investment strategy does not ‘track’ thisindex and consequently, there may be some divergence betweenthe Company’s performance and that of the benchmark.

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

Performance Attribution Definitions:Asset Allocation Measures the impact of allocating assets differently to those inthe benchmark, via the portfolio’s weighting in differentcountries, sectors or asset types.

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

Gearing/Cash Measures the impact on returns of borrowings or cash balanceson the Company’s relative performance.

CurrencyMeasures the effect of currency exposure differences betweenthe Company’s portfolio and its benchmark.

Management Fee/Other ExpensesThe payment of management fees and other expenses reducesthe level of total assets, and therefore has a negative effect onrelative performance.



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ALTERNATIVE PERFORMANCE MEASURES

Gearing/Net CashGearing represents the excess amount above shareholders’ funds oftotal investments, expressed as a percentage of the shareholders’funds (see page 19 for the Growth pool, page 30 for the Incomepool and note 23 on page 80 for the Company). Previously gearingrepresented the excess amount above shareholders’ funds of totalassets expressed as a percentage of shareholders’ funds. Totalassets include total investments and net current assets/liabilitiesless cash/cash equivalents and excluding bank loans of less thanone year. If the amount calculated is negative, this is shown asa ‘net cash’ position.

Share Price Discount/Premium to Net Asset ValueIf the share price of an investment trust is lower than the NAV pershare, the Company’s shares are said to be trading at a discount.The discount is shown as a percentage of the NAV per share (seepage 10 for the Growth pool and page 20 for the Income pool). Theopposite of a discount is a premium. It is more common for aninvestment trust’s shares to trade at a discount than at a premium.The Board do not wish to see the discounts widen beyond 10% onan ongoing basis (see Share Repurchase section of the Chairman’sStatement on page 5).

Net Asset Value (NAV) with Debt at Fair ValueThe Company’s debt (private placement) is valued in the Statementof Financial Position (on page 57) at amortised cost, which ismaterially equivalent to the repayment value of the debt on theassumption that it is held to maturity. This is often referred to as“Debt at Par Value”. The current replacement or market value of thedebt, which assumes it is repaid and renegotiated under currentmarket conditions, is often referred to as the “Debt at Fair Value”.This fair value is explained in note 22(d) (on page 79) on theaccounts. The difference between fair and par values of the debt issubtracted from the NAV to derive the NAV with debt at fair value.The fair value of the Euro 50.0m Private Placement issued by theCompany has been calculated using discounted cash flowtechniques, using the yield from similar dated German governmentbond plus a margin based on the five year average for theAA Barclays Euro Corporate Bond spread. As at 31st March 2017,€30.6m of the €50.0m was allocated to the Growth pool with theremaining €19.4m allocated to the Income pool. The NAV with debtat fair value at 31st March 2017 was £243,516,000 (315.4p per share)for the Growth share and £156,148,000 (166.5p per share) for theIncome share.

Ongoing ChargesThe ongoing charges represent the Company’s management fee andall other operating expenses, excluding finance costs, expressed asa percentage of the average of the daily net assets during the year.

Return per Share — Growth and Income PoolsReturn per share is calculated using the net return on ordinaryactivities after finance costs and taxation divided by the weightedaverage number of shares in issue for the financial year (see note10 on page 66). The Company’s return per share (page 55) is thesum of the return per share of the Growth pool (page 18) and thereturn per share of the Income pool (page 29). The Company’s grossreturn is split between the Growth and Income pool in accordancewith the returns of the investments held in each pool. Expensescharged to the Company that are common to both share classes areallocated between those classes in the same proportion as the netassets of each share class on a half yearly basis. Expenses chargedto the Company in relation to a specific share class are chargeddirectly to that share class, with the other share class incurring nocharge. Losses of one share class are not borne by the other.


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WHERE TO BUY J.P. MORGAN INVESTMENT TRUSTS

You can invest in a J.P. Morgan investment trust through the following;

1. Directly from J.P. MorganInvestment AccountThe Company’s shares are available in the J.P. Morgan InvestmentAccount, which facilitates both regular monthly investments andoccasional lump sum investments in the Company’s ordinary shares.Shareholders who would like information on the Investment Accountshould call J.P. Morgan Asset Management free on 0800 20 40 20 orvisit its website at am.jpmorgan.co.uk/investor

Stocks & Shares Individual Savings Accounts (ISA)The Company’s shares are eligible investments within a J.P. MorganISA. For the 2017/18 tax year, from 6th April 2017 and ending 5th April2018, the total ISA allowance is £20,000. The shares are also availablein a J.P. Morgan Junior ISA. Details are available from J.P. Morgan AssetManagement free on 0800 20 40 20 or via its website atam.jpmorgan.co.uk/investor

2. Via a third party provider Third party providers include;

Please note this list is not exhaustive and the availability of individualtrusts may vary depending on the provider. These websites are thirdparty sites and J.P. Morgan Asset Management does not endorse orrecommend any. Please observe each site’s privacy and cookie policiesas well as their platform charges structure.

3. Through a professional adviserProfessional advisers are usually able to access the products of all thecompanies in the market and can help you find an investment thatsuits your individual circumstances. An adviser will let you know thefee for their service before you go ahead. You can find an adviser atunbiased.co.uk

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

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

AJ BellAlliance Trust SavingsBarclays StockbrokersBestinvestCharles Stanley DirectFundsNetworkHargreaves Lansdown

Interactive InvestorJames BrearleyJames HaySelftradeTD DirectThe Share Centre



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Avoid investment fraud1 Reject cold calls

If you’ve received unsolicited contact about an investment opportunity, chances are it’s a high risk investment or a scam. You should treat the call with extreme caution. The safest thing to do is to hang up.

2 Check the FCA Warning List The FCA Warning List is a list of �rms and individuals we know are operating without our authorisation.

3 Get impartial advice Think about getting impartial �nancial advice before you hand over any money. Seek advice from someone unconnected to the �rm that has approached you.

Report a ScamIf you suspect that you have been approached by fraudsters please tell the FCA using the reporting form at www.fca.org.uk/consumers/report-scam-unauthorised-�rm. You can also call the FCA Consumer Helpline on 0800 111 6768

If you have lost money to investment fraud, you should report it to Action Fraud on 0300 123 2040 or online at www.actionfraud.police.uk

Find out more at www.fca.org.uk/scamsmart

Investment scams are designed to look like genuine investmentsSpot the warning signs

Have you been:

• contacted out of the blue• promised tempting returns

and told the investment is safe• called repeatedly, or• told the offer is only available

for a limited time?

If so, you might have been contacted by fraudsters. Remember: if it sounds too

good to be true, it probably is!

Be ScamSmart


HistoryJPMorgan European Investment Trust plc was formed in 1929 as TheLondon and Holyrood Trust Limited and was a general investment trustuntil 1982 when the name was changed to The Fleming UniversalInvestment Trust. Under this name the portfolio became moreinternationally invested until November 1988, when the Board decidedto concentrate on Continental European investments. In 1992shareholders approved a formal adoption of this specialisation. TheCompany adopted its current structure and name in August 2006.

Company NumbersCompany registration number: 237958

London Stock Exchange Sedol numbers: Growth: B18JK16 Income: B17XWW4

ISIN numbers: Growth: GB00B18JK166 Income: GB00B17XWW44

Bloomberg Codes: Growth: JETG LN Income: JETI LN

Market InformationThe Company’s net asset value is published daily, via The London StockExchange. The Company’s shares are listed on the London StockExchange. The market prices are shown daily in the Financial Times,The Times, the Daily Telegraph, The Scotsman and on the Companywebsite at www.jpmeuropean.co.uk, where the share prices areupdated every fifteen minutes during trading hours.

Websitewww.jpmeuropean.co.uk

Share TransactionsThe Company’s shares may be dealt in directly through a stockbroker orprofessional adviser acting on an investor’s behalf. They may also bepurchased and held through the J.P. Morgan Investment Account,J.P. Morgan ISA and J.P. Morgan Junior ISA. These products are allavailable on the online service at jpmorgan.co.uk/online

Manager and Company SecretaryJPMorgan Funds Limited

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

Please contact Paul Winship for company secretarial and administrativematters.

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

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

RegistrarsEquiniti LimitedReference 1080Aspect HouseSpencer RoadLancingWest Sussex BN99 6DATelephone number: 0371 384 2319

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

Notifications of changes of address and enquiries regarding sharecertificates or dividend cheques should be made in writing to theRegistrar quoting reference 1080. Registered shareholders can obtainfurther details on their holdings on the internet by visitingwww.shareview.co.uk.

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

Independent AuditorErnst & Young LLP Chartered Accountants and Statutory Auditor1 More London Place London SE1 2AF

BrokersWinterflood Securities LimitedThe Atrium Building Cannon Bridge25 Dowgate HillLondon EC4R 2GATelephone 020 7621 0004

Information about the Company

FINANCIAL CALENDAR

Financial year end 31st March

Final results announced June

Half year end September

Half year results announced November

Dividends payable – Growth April and October

Dividends payable – Income April, July, October and January

Annual General Meeting July

A member of the AIC

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www.jpmeuropean.co.uk

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

J.P. Morgan Helpline

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

GB A110 06/17 GB A111 06/17

Documents

JPMorgan European Investment Trust plc · 2017. 7. 20. · 2 JPMORGAN EUROPEAN INVESTMENT TRUST PLC. ANNUAL REPORT & ACCOUNTS 2017 G R O W T H S H A R E S Financial Results TOTAL