JPMorgan European Investment Trust plc€¦ · 30th September 31st March 31st March Dividend 2017 2017 2016 Per Growth share 4.85p6 6.85p 5.85p 1 Source: Morningstar. 2 Source: J.P

JPMorgan European Investment Trust plcHalf Year Report & Financial Statements for the six months ended 30th September 2017

The Company has two share classes, each with distinctinvestment policies, objectives and underlying asset pools.Shareholders in either of the Company’s two share classes areable to convert some or all of their shares into shares of theother class without such conversion being treated, undercurrent law, as a disposal for UK capital gains tax purposes. Seepage 29 for further details of the Company’s capital structureand annual conversion on 15th March 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 consistentout-performance of the benchmark and 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.

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

Capital Structure At 30th September 2017, the Company’s share capitalcomprised 77,190,492 Growth shares and 93,769,494 Incomeshares.

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.

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

HALF YEAR PERFORMANCE

2 Total Returns – Growth Portfolio

3 Total Returns – Income Portfolio

ABOUT THE COMPANY

4 Chairman’s Statement

6 Investment Managers’ Report

GROWTH PORTFOLIO

7 List of Investments

10 Portfolio Analyses

11 Statement of Comprehensive Income

12 Statement of Financial Position

INCOME PORTFOLIO

13 List of Investments

17 Portfolio Analyses



FINANCIAL STATEMENTS


21 Statement of Changes in Equity


23 Statement of Cash Flows

24 Notes to the Financial Statements

28 INTERIM MANAGEMENT REPORT

SHAREHOLDER INFORMATION

29 Capital Structure and Conversion between Share Classes

30 Glossary of Terms and Alternative Performance Measures

32 Where to buy J.P. Morgan Investment Trusts

33 Information about the Company

THE COM

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2 JPMORGAN EUROPEAN INVESTMENT TRUST PLC HALF YEAR REPORT & FINANCIAL STATEMENTS 2017

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Half Year Performance

TOTAL RETURNS (INCLUDES DIVIDENDS REINVESTED)

GROWTH PORTFOLIO

+8.0%Benchmark return4

Long Term Performance1,2,4

FOR PERIOD ENDED 30TH SEPTEMBER 2017

Return to Return on Benchmarkshareholders net assets return

1 Year Performance 26.8% 23.9% 21.4%3 Year Performance 51.7% 52.9% 43.4%5 Year Performance 115.1% 116.9% 93.6%

The above returns have been calculated on the assumption that any dividends received during the period have been immediately reinvestedon the ex-dividend date. Further details are given in the glossary of terms and alternative performance measures on page 30.

Financial Data30th September 31st March %

2017 2017 change

Total net assets (£’000) 272,527 248,601 +9.6Net asset value per share with debt at par value (p) 353.1 321.9 +9.7Net asset value per share with debt at fair value (p)5 346.7 315.4 +9.9Share price (p) 305.9 285.0 +7.3Share price discount to net asset value per share with debt at par value (%)3 13.4 11.5 Share price discount to net asset value per share with debt at fair value (%)5 11.8 9.6 Number of shares in issue 77,190,492 77,220,608Ongoing charges (%) 0.96 1.02Gearing (%) 9.4 5.9

Six months to Year to Year to30th September 31st March 31st March

Dividend 2017 2017 2016

Per Growth share 4.85p6 6.85p 5.85p

1 Source: Morningstar.2 Source: J.P. Morgan, using net asset value per share, cum income, with debt at par value. Please refer to the Glossary of Terms and Alternative Performance Measures on page 30

for the calculation of return on net assets.3 The net asset value above is calculated on the basis that the Company’s Private Placement debt is valued at par. The net asset value identified in the Company’s monthly fact sheet

is calculated on the basis that the Company’s Private Placement debt is valued at fair value.4 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. The benchmark index returns quoted above for periods of greater than one year are a composite of the twoindices, designed to provide an appropriate comparator to the return on net assets.

5 The fair value of the Company’s private placement has been calculated using discounted cash flow techniques, using the yield from a similarly dated German government bondplus a margin based on the five year average for the AA Barclays Euro corporate bond spread.

6 Declared.

A glossary of terms and alternative performance measures is provided on page 30.

+9.0%Return to shareholders1

+10.4%Return on net assets2, 3

3

TOTAL RETURNS (INCLUDES DIVIDENDS REINVESTED)

INCOME PORTFOLIO

+8.0%Benchmark return4

Long Term Performance1,2,4

FOR PERIOD ENDED 30TH SEPTEMBER 2017

Return to Return on Benchmarkshareholders net assets return

1 Year Performance 35.4% 24.6% 21.4%3 Year Performance 56.6% 54.1% 43.4%5 Year Performance 133.6% 126.9% 90.1%

The above returns have been calculated on the assumption that any dividends received during the period have been immediately reinvestedon the ex-dividend date. Further details are given in the glossary of terms and alternative performance measures on page 30.

Financial Data30th September 31st March %

2017 2017 change

Total net assets (£’000) 171,874 159,354 +7.9Net asset value per share with debt at par value (p) 183.3 169.9 +7.9Net asset value per share with debt at fair value (p)5 180.0 166.5 +8.1Share price (p) 166.3 150.5 +10.5Share price discount to net asset value per share with debt at par value (%)3 9.3 11.4 Share price discount to net asset value per share with debt at fair value (%)5 7.6 9.6 Number of shares in issue 93,769,494 93,769,494 Ongoing charges (%) 1.01 1.05Gearing (%) 7.7 8.2

Six months to Year to Year to30th September 31st March 31st March

Dividend 2017 2017 2016

Per Income share 2.20p6 5.00p 4.75p

1 Source: Morningstar.2 Source: J.P. Morgan, using net asset value per share, cum income, with debt at par value. Please refer to the Glossary of Terms and Alternative Performance Measures on page 30

for the calculation of return on net assets.3 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 fact

sheet is calculated on the basis that the Company’s Private Placement debt is valued at fair value.4 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. The benchmark index returns quoted above for periods of greater than one year are a composite of the two indices,designed to provide an appropriate comparator to the return on net assets.

5 The fair value of the Company’s private placement has been calculated using discounted cash flow techniques, using the yield from a similarly dated German government bondplus a margin based on the five year average for the AA Barclays Euro corporate bond spread.

6 Declared.

A glossary of terms and alternative performance measures is provided on page 30.

+11.9%Return to shareholders1

+9.7%Return on net assets2,3

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About the Company

CHAIRMAN’S STATEMENT

PerformanceIn the six months to 30th September 2017 the returns to shareholders with net dividendsreinvested in the Company’s Growth (JETG) and Income (JETI) Portfolios were 9.0% and11.9% respectively. Over the same period, the percentage increase in the Company’s Growthand Income net asset value (NAV) were 10.4% and 9.7% respectively. Returns on bothmeasures for the two portfolios were in excess of the benchmark. The Company’sperformance over one, three and five years was also positive.

The discount on the Growth share price to NAV widened during the reporting period,whereas the discount on the Income share price to NAV narrowed over the same period,reflecting the demand for income.

In their report on page 6, the Investment Managers comment on some of the factorsunderlying the performance of the two portfolios over the six month period, as well ascommenting on the economic and market background.

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

Revenue return per share on the Growth portfolio for the six months to 30th September2017 (calculated by reference to the average number of shares in issue over the period)amounted to 6.27 pence per share (2016: 5.79 pence per share). A first interim dividend of4.85 pence per Growth share was paid on 13th October 2017 (2016: 4.85 pence per share).

Revenue return per share on the Income portfolio for the half year (again, calculated byreference to the average number of shares in issue over the period) amounted to 4.59 penceper share (2016: 4.86 pence per share). The first quarterly interim dividend of 1.10 penceper Income share (2016: 1.10 pence per share) was paid on 23rd June 2017 and a secondquarterly interim dividend also of 1.10 pence per Income share was paid on 13th October2017 (2016: 1.10 pence per share). A third quarterly interim dividend of 1.10 pence perIncome share (2016: 1.10 pence per share) was declared on 22nd November 2017 forpayment on 12th January 2018. The Board’s aim is to provide a regular stream of dividendincome on a quarterly basis, subject to the availability of distributable reserves. The timingof the dividend declarations for the Growth second interim and Income fourth interim isexpected to continue to be made ahead of the conversion opportunity in March each year.

Gearing There 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 30th September 2017 theGrowth portfolio was 9.4% geared and the Income portfolio was 7.7% geared. These levels ofgearing reflect a generally positive view on the outlook for stock market performance.

ConversionsThe Company’s next share conversion will be in March 2018 and details of the process will beposted on the Company’s website in late January 2018.

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Share RepurchasesThe 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 thesix months under review the discount levels have averaged 9.5% for the Growth shares and7.6% for the Income Shares (both at fair value). Over the six month period the Companyrepurchased a total of 30,116 Growth shares and no Income shares.

Transfer of Reserves between the Growth and Income PortfoliosFollowing shareholders’ approval of the resolutions in the Company’s Annual GeneralMeeting (AGM) and Growth portfolio (JETG) and Income portfolio (JETI) Class Meetings on17th July 2017, the Board now has the power to approve transfers of retained revenuereserves from JETG to JETI in exchange for the equivalent amount of capital reserves fromJETI to JETG. Following the AGM during this reporting period, the Board exercised this powerand £1.376m, being the amount of JETG’s retained revenue reserve, after payment of theJETG 2.00p dividend paid on 7th April 2017, was transferred to JETI in exchange for theequivalent amount of capital reserves from JETI to JETG. This transfer is reflected in theseReport and Financial Statements. Further explanation regarding the background to thesetransfers can be found in my Chairman’s Statement in the Company’s Annual Report andFinancial Statements to 31st March 2017.

Outlook Your Board remain optimistic about the outlook for European markets and believe that theManager continues to position the Growth and Income portfolios to best achieve theCompany’s objectives for its shareholders.

For and on behalf of the BoardAndrew AdcockChairman 30th November 2017

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About the Company continued

INVESTMENT MANAGERS’ REPORT

Stephen Macklow-Smith

Alexander Fitzalan Howard

Michael Barakos

Thomas Buckingham

ReviewThe period under review saw a further improvement in the Eurozone business environmentwith the recovery, which is now nearly four years old, continuing at a healthy pace,unemployment falling, consumer confidence rising, and business confidence improvingeverywhere. Bond yields rose modestly over the period, and the catalyst was more hawkishtalk from central banks around the world, with the Fed sticking to their guns in talking ofrate rises, and also revealing that plans were in train to think about how to shrink theirbalance sheet. In the Eurozone Mr Draghi said he was confident of continued recovery andthe ECB felt emboldened to announce that they would taper their QE interventions, reducingtheir size from €60 billion to €30 billion a month.

The first and second quarter results season were a beat on earnings, and we initially sawcontinued upgrades to analyst estimates across a broad reach of sectors, until these werecapped by Euro strength. European earnings are still expected to show healthy double-digitgrowth in 2017. The strength in PMIs and in demand suggests that the underlying directionof profitability is upwards, even if currency is a headwind.

The French election returned the moderate Mr Macron as President and he also gaineda large majority in Parliament, removing both the threat of a populist President and thethreat that Mr Macron would lack Parliamentary support for his reform programme.The German election returned Mrs Merkel’s CDU/CSU as the largest party, though witha reduced majority, so talks to form a coalition are now in progress.

Income investing continued to outperform as a style, and this helped the Income share class,which targets a very high exposure to higher yielding stocks where the dividend is not underthreat. In the Growth share class we continued to look for companies exposed to thestrengthening cycle, and we also benefited from our holdings in higher quality banks.

OutlookConfidence indicators remain positive in Europe, suggesting that the economy is growingabove trend and has momentum. The ECB’s tapering announcement is contributing toa modest steepening in Euro yield curves. This is consistent with an encouraging growthoutlook and a rise in the cost of capital does not concern us unduly since we view any suchrise as being modest and gradual.

If the steepening of yield curves continues we should see support for financials and cyclicals.Potential clouds on the horizon are a much weaker US Dollar, and further out the threat ofthe reversal of monetary accommodation by central banks (the Fed has announced specificplans to shrink its balance sheet). Markets have become used to easy money and plentifulliquidity and they will need time to become accustomed to a change, but as long as growthholds up and corporate profits are healthy we remain confident that equities can generategood returns.

Stephen Macklow-SmithAlexander Fitzalan HowardMichael BarakosThomas BuckinghamInvestment Managers 30th November 2017

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Growth Portfolio

ValueCompany £’000

FranceSanofi 7,824BNP Paribas 5,799Cie Generale des Etablissements Michelin 5,172Capgemini 4,470Eurazeo 3,955Vinci 3,787LVMH Moet Hennessy Louis Vuitton 3,678AXA 3,472Societe Generale 2,865Peugeot 2,721Credit Agricole 2,698ArcelorMittal 2,584Kering 1,744Neopost 1,653Atos 1,542Faurecia 1,438Orange 1,438STMicroelectronics 1,153TOTAL 1,136Natixis 795Trigano 643Rothschild 556Derichebourg 541Bonduelle 514CNP Assurances 470MGI Coutier 391Devoteam 299Engie 238Eutelsat Communications 211Renault 173Air France-KLM 156

64,116

GermanyAllianz 7,735BASF 5,079SAP 4,934Deutsche Lufthansa 4,537Uniper 3,822


Covestro 3,326Bayer 2,849Continental 2,415RWE 2,133Infineon Technologies 2,009Muenchener Rueckversicherungs-Gesellschaft 1,925Jenoptik 1,833Siemens 1,768HOCHTIEF 1,675Deutsche Telekom 1,545Evotec 1,135JOST Werke 1,102Aurubis 900Deutsche Beteiligungs 850Siltronic 838Dialog Semiconductor 774Software 670CropEnergies 514Draegerwerk Preference 367

54,735

SwitzerlandNestle 12,441Roche 6,169ABB 6,013UBS 5,805Novartis 5,488Adecco 4,147Logitech International 1,925Forbo 1,791Julius Baer 1,496Zurich Insurance 1,478Bobst 789ams 685VP Bank 396GAM 362VAT 350Sunrise Communications 199Coltene 145

49,679

LIST OF INVESTMENTS AT 30TH SEPTEMBER 2017


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LIST OF INVESTMENTS CONTINUED

Growth Portfolio continued

1 See Page 23 Fixed assets.


NetherlandsING Groep 7,018Unilever, CVA 4,614ASR Nederland 4,176BE Semiconductor Industries 4,105Philips Lighting 3,625Koninklijke Philips 1,618ABN AMRO, CVA 1,107ASML 1,063Heineken 991Koninklijke Volkerwessels 534

28,851

SwedenElectrolux 4,324JM 2,933Swedbank ‘A’ 2,814Sandvik 2,488Atlas Copco ‘A’ 1,400Nordea Bank 1,215Alfa Laval 978Volvo ‘B’ 551SKF ‘B’ 419Concentric 405Skandinaviska Enskilda Banken ‘A’ 398KNOW IT 193

18,118

DenmarkDanske Bank 5,255Novo Nordisk ‘B’ 4,912Vestas Wind Systems 4,633Schouw 1,944TDC 746Alm Brand 124

17,614

SpainEndesa 3,709International Consolidated Airlines Group 3,015Aena 2,881Repsol 2,328Telefonica 1,027Abertis Infraestructuras 692Banco Santander 304ACS Actividades de Construccion y Servicios 108

14,064


ItalyFerrari 1,715UniCredit 1,429Enel 1,203Fiat Chrysler Automobiles 1,185Snam 678ERG 648Maire Tecnimont 618Telecom Italia 526Azimut 267Saras 255Emak 249Gima TT 244Sesa 209Sogefi 170

9,396

FinlandUPM-Kymmene 4,294Stora Enso ‘R’ 3,011Rovio Entertainment 298CapMan ‘B’ 204Neste 154

7,961

AustriaOMV 4,521POLYTEC 599Lenzing 413EVN 209

5,742

NorwaySubsea 7 1,861Marine Harvest 1,464DNB 801Telenor 259SpareBank 1 SMN 149Olav Thon Eiendomsselskap 97

4,631

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BelgiumKBC Group 4,060AGFA-Gevaert 176Solvay 121

4,357

IrelandAllied Irish Banks 1,416Ryanair 106

1,522

PortugalSemapa-Sociedade de Investimento e Gestao 1,086

1,086Total Equities 281,872

Collective Investment SchemesJPMorgan European Smaller Companies Trust 10,859JPMorgan Funds – Europe Dynamic Small Cap Fund ‘A’ 4,300JPMorgan Funds – Emerging Europe Equity Fund ‘A’ 1,229Total Collective Investment Schemes 16,388Total Investments 298,2601

1 See page 22 Fixed assets.

Growth Portfolio continued


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PORTFOLIO ANALYSES

Geographical 30th September 2017 31st March 2017 Portfolio1 Benchmark Portfolio1 Benchmark % % % %

France 22.3 22.9 22.7 22.4 Germany 18.9 20.8 21.6 20.9 Switzerland 17.2 17.5 19.1 19.2 Netherlands 10.1 7.9 6.4 7.3 Sweden 6.5 6.2 6.1 6.3 Denmark 6.2 4.0 5.8 3.6 Spain 4.7 7.4 6.3 7.4 Italy 4.0 5.3 2.7 4.8 Finland 3.0 2.1 2.4 2.1 Austria 1.9 0.5 0.5 0.4 Norway 1.9 1.5 2.1 1.4 Belgium 1.6 2.5 1.9 2.5 Ireland 0.5 1.0 0.8 1.0 Portugal 0.4 0.3 0.1 0.3 United Kingdom2 0.4 — 1.0 0.3 Russia 0.2 — 0.3 —Poland 0.1 — 0.1 —Turkey 0.1 — 0.1 —Luxembourg — 0.1 — 0.1

Total3 100.0 100.0 100.0 100.0

1 Based on total investments of £298.3m (31st March 2017: £263.3m).2 The Company has a holding in JPMorgan Europe Dynamic Small Cap, which holds some UK stocks. This gives rise to the 0.4% holding in the UK identified above.3 Includes investments in Collective Investment Schemes which are reclassified in accordance with the domicile of the underlying assets in the fund.

Sector

30th September 2017 31st March 2017 Portfolio1 Benchmark Portfolio1 Benchmark % % % %

Financials 24.5 21.1 21.2 20.1 Industrials2 17.4 15.1 19.7 15.1 Consumer Discretionary 12.0 11.4 12.3 11.6 Health Care2 10.6 13.9 10.4 13.7 Information Technology 10.5 6.1 8.6 5.9 Consumer Staples 8.0 12.0 8.5 12.6 Materials 7.3 7.7 9.4 8.3 Utilities3 4.0 3.7 2.9 3.3 Energy3 3.8 4.0 4.7 4.2 Telecommunication Services 1.9 3.7 2.3 3.9Real Estate — 1.3 — 1.3

Total4 100.0 100.0 100.0 100.0

1 Based on total investments of £298.3m (31st March 2017: £263.3m).2 Koninklijke Philips was reclassified from Industrials in the prior period to Health Care in the current period.3 Snam was reclassified from Utilities in the prior period to Energy in the current period.4 Includes investments on Collective Investment Schemes which are reclassified in accordance with the industry of the underlying asset in the fund.

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STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED30TH SEPTEMBER 2017

(Unaudited) (Unaudited) (Unaudited)Six months ended Six months ended Year ended

30th September 2017 30th September 2016 31st March 2017Revenue Capital Total Revenue Capital Total Revenue Capital Total£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Gains on investments and derivativesheld at fair value through profit or loss — 22,162 22,162 — 22,059 22,059 — 49,029 49,029

Net foreign currency (losses)/gains — (380) (380) — 181 181 — 224 224Income from investments 6,145 — 6,145 5,478 — 5,478 7,626 — 7,626Interest receivable and similar income 9 — 9 32 — 32 52 — 52

Gross return 6,154 21,782 27,936 5,510 22,240 27,750 7,678 49,253 56,931Management fee (315) (734) (1,049) (256) (597) (853) (538) (1,255) (1,793)Other administrative expenses (220) — (220) (255) — (255) (506) — (506)

Net return on ordinary activities before finance costs and taxation 5,619 21,048 26,667 4,999 21,643 26,642 6,634 47,998 54,632

Finance costs (138) (322) (460) (132) (307) (439) (255) (595) (850)

Net return on ordinary activities before taxation 5,481 20,726 26,207 4,867 21,336 26,203 6,379 47,403 53,782

Taxation (641) — (641) (370) — (370) (1,137) — (1,137)

Net return on ordinary activities after taxation 4,840 20,726 25,566 4,497 21,336 25,833 5,242 47,403 52,645

Return per Growth share 6.27p 26.85p 33.12p 5.79p 27.46p 33.25p 6.75p 61.08p 67.83p

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

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 on ordinary activities after taxation represents the profit for the period/year and also the total comprehensive income.


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STATEMENT OF FINANCIAL POSITION AT 30TH SEPTEMBER 2017

(Unaudited) (Unaudited) (Unaudited) 30th September 30th September 31st March 2017 2016 2017 £’000 £’000 £’000

Fixed assetsInvestments held at fair value through profit or loss 298,260 224,428 263,321

Current assetsDerivative financial assets 54 70 56Debtors 755 996 764Cash and cash equivalents 9,141 35,655 18,765

9,950 36,721 19,585Current liabilitiesCreditors: amounts falling due within one year (8,837) (8,094) (8,279)Derivative financial liabilities (43) (35) (12)

Net current assets 1,070 28,592 11,294

Total assets less current liabilities 299,330 253,020 274,615

Creditors: amounts falling due after more than one year (26,803) (26,307) (26,014)

Net assets 272,527 226,713 248,601

Net asset value per Growth share 353.1p 292.0p 321.9p

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LIST OF INVESTMENTS AT 30TH SEPTEMBER 2017

Income Portfolio


FranceSanofi 3,435TOTAL 3,410BNP Paribas 2,850AXA 2,064Societe Generale 1,643Vinci 1,636Orange 1,238Cie de Saint-Gobain 1,212Engie 1,187Cie Generale des Etablissements Michelin 1,131Renault 892Credit Agricole 848CNP Assurances 837Veolia Environnement 803Bouygues 732Natixis 708Eutelsat Communications 692Amundi 677SCOR 619Electricite de France 590Lagardere 575Gecina, REIT 555Gaztransport Et Technigaz 532Fonciere Des Regions, REIT 522Altarea, REIT 498Euler Hermes 446Albioma 420Sword 418Metropole Television 413Neopost 403Rubis 349APERAM 342Assystem 313Kaufman & Broad 261Union Financiere de France BQE 198

33,449

GermanyAllianz 3,393BASF 2,935Daimler 2,494Deutsche Telekom 1,911Deutsche Post 1,587Bayerische Motoren Werke 1,443Muenchener Rueckversicherungs-Gesellschaft 1,337E.ON 1,109


Hannover Rueck 841Deutsche Lufthansa 770Talanx 701JOST Werke 699HUGO BOSS 520Axel Springer 505Telefonica Deutschland 495Innogy 490Deutsche Pfandbriefbank 466TAG Immobilien 455Aareal Bank 420Leifheit 416Amadeus Fire 403Deutsche Beteiligungs 390Freenet 388Washtec 388bet-at-home.com 382Drillisch 374Uniper 228

25,540

SpainBanco Santander 3,623Banco Bilbao Vizcaya Argentaria 2,142Telefonica 1,663Iberdrola 1,654Repsol 1,151CaixaBank 1,128Abertis Infraestructuras 864Red Electrica 689ACS Actividades de Construccion y Servicios 683Banco de Sabadell 641Endesa 633International Consolidated Airlines 575Mapfre 541Gas Natural SDG 539Enagas 518Saeta Yield 460Distribuidora Internacional de Alimentacion 432Ence Energia y Celulosa 423Bolsas y Mercados Espanoles 414Acciona 398Papeles y Cartones de Europa 325Merlin Properties Socimi, REIT 291

19,787


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Income Portfolio continued



ItalyIntesa Sanpaolo 1,819Enel 1,722Assicurazioni Generali 1,211Atlantia 846Mediobanca 721Iren 699Terna Rete Elettrica Nazionale 684Ascopiave 672Societa Iniziative Autostradali e Servizi 667Snam 654FinecoBank Banca Fineco 627Unipol Gruppo Finanziario 582Hera 545Astaldi 538Saras 499ERG 490Banca Generali 477Azimut 475Immobiliare Grande Distribuzione SIIQ, REIT 469Italgas 469Poste Italiane 468Societa Cattolica di Assicurazioni 460Unieuro 449ACEA 420Banca Farmafactoring 405Anima 399Ei Towers 392Falck Renewables 372Beni Stabili SpA SIIQ, REIT 369Enav 368A2A 362Gima TT 201

19,531

SwedenNordea Bank 1,555Swedbank ‘A’ 1,131Svenska Handelsbanken ‘A’ 987Skandinaviska Enskilda Banken ‘A’ 973Coor Service Management 701SKF ‘B’ 562Tele2 ‘B’ 559Electrolux 540Acando 529


Hemfosa Fastigheter 528ICA Gruppen 510Resurs 489Peab 487Swedish Match 487Com Hem 483KappAhl 457Dios Fastigheter 450Inwido 420NP3 Fastigheter 406Catella 405Castellum 399Bonava ‘B’ 391Nolato ‘B’ 386Dustin 383Nobina 381Nordic Waterproofing 380Nobia 378Nordax 374Bilia ‘A’ 373Kindred, SDR 372HIQ International 370JM 362Thule 361Modern Times MTG ‘B’ 359Betsson 345Oriflame 296Wihlborgs Fastigheter 265Beijer Alma 265Bulten 130NCC ‘B’ 64

19,293

SwitzerlandUBS 2,101Zurich Insurance 1,702ABB 1,675Credit Suisse 1,448Swiss Re 1,353Swisscom 860Swiss Life 784Cembra Money Bank 724Baloise 624Forbo 571GAM 461

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Banque Cantonale Vaudoise 452Sunrise Communications 430Galenica 414Valora 384Helvetia 341Intershop 339

14,663

NetherlandsUnilever, CVA 2,885ING 2,400Koninklijke Ahold Delhaize 884Akzo Nobel 844NN 811BE Semiconductor Industries 754Aegon 723ABN AMRO, CVA 679Koninklijke KPN 627ASR Nederland 576Philips Lighting 540Randstad 512Van Lanschot, CVA 490Accell 370Vastned Retail, REIT 349Koninklijke Volkerwessels 318

13,762

NorwayDNB 1,028Statoil 968Telenor 840SpareBank 1 Nord Norge 704SpareBank 1 SR-Bank 627SpareBank 1 SMN 595Aker ‘A’ 522Stolt-Nielsen 482Aker BP 464Sparebanken Vest 462Atea 460Gjensidige Forsikring 455Ekornes 448Sparebanken More 446Selvaag Bolig 422Storebrand 422Entra 408


Bakkafrost 405Leroy Seafood 383Austevoll Seafood 371Europris 369Grieg Seafood 368Salmar 351Norway Royal Salmon 336

12,336

FinlandUPM-Kymmene 1,112Nokia 1,105Sampo ‘A’ 1,040Stora Enso ‘R’ 880Nokian Renkaat 730Elisa 629DNA 562Ramirent 528Metso 505Neste 498Technopolis 491Atria 453Aktia Bank 444CapMan ‘B’ 441Orion ‘B’ 423Citycon 397Cramo 361Tieto 344Aspo 333Fiskars OYJ Abp 181Sanoma 164

11,621

DenmarkNovo Nordisk ‘B’ 2,686Danske Bank 1,211Pandora 733Alm Brand 556Sydbank 464Tryg 418Spar Nord Bank 397Topdanmark 284

6,749


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E SHARES



BelgiumKBC 1,299Ageas 560Proximus SADP 542bpost 379Atenor 366EVS Broadcast Equipment 342

3,488

IrelandAllied Irish Banks 628Bank of Ireland 506Irish Residential Properties, REIT 481Green, REIT 448

2,063

PortugalNavigator Co. 536Sonae Capital 454Altri 429REN – Redes Energeticas Nacionais 414

1,833

AustriaUNIQA Insurance 586Oesterreichische Post 424

1,010Total Investments 185,1251


1 See Page 22 Fixed assets.

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PORTFOLIO ANALYSES

Geographical 30th September 2017 31st March 2017 Portfolio1 Benchmark Portfolio1 Benchmark % % % %

France 18.1 22.9 15.9 22.4 Germany 13.8 20.8 15.2 20.9 Spain 10.7 7.4 11.5 7.4 Italy 10.6 5.3 8.8 4.8 Sweden 10.4 6.2 10.0 6.3 Switzerland 7.9 17.5 11.6 19.2 Netherlands 7.4 7.9 6.6 7.3 Norway 6.7 1.5 6.5 1.4 Finland 6.3 2.1 7.2 2.1 Denmark 3.6 4.0 1.6 3.6 Belgium 1.9 2.5 2.1 2.5 Ireland 1.1 1.0 0.5 1.0 Portugal 1.0 0.3 1.9 0.3 Austria 0.5 0.5 0.6 0.4 Luxembourg — 0.1 — 0.1 United Kingdom — — — 0.3

Total 100.0 100.0 100.0 100.0

1 Based on total investments of £185.1m (31st March 2017: £172.5m).

Sector

30th September 2017 31st March 2017 Portfolio1 Benchmark Portfolio1 Benchmark % % % %

Financials 37.9 21.1 34.5 20.1 Industrials 12.5 15.1 17.6 15.1 Consumer Discretionary 10.0 11.4 8.8 11.6 Utilities 8.9 3.7 6.5 3.3 Telecommunication Services 6.5 3.7 4.2 3.9 Real Estate 4.8 1.3 4.2 1.3 Energy 4.7 4.0 6.7 4.2 Consumer Staples 4.4 12.0 4.7 12.6 Materials 4.2 7.7 5.2 8.3 Health Care 3.5 13.9 5.5 13.7 Information Technology 2.6 6.1 2.1 5.9

Total 100.0 100.0 100.0 100.0

1 Based on total investments of £185.1m (31st March 2017: £172.5m).


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(Unaudited) (Unaudited) (Unaudited)Six months ended Six months ended Year ended


Gains on investments and derivativesheld at fair value throughprofit or loss — 12,718 12,718 — 12,467 12,467 — 30,765 30,765

Net foreign currency losses — (1,303) (1,303) — (422) (422) — (275) (275)Income from investments 5,286 — 5,286 5,261 — 5,261 7,207 — 7,207 Interest receivable and similar income 23 — 23 43 — 43 51 — 51

Gross return 5,309 11,415 16,724 5,304 12,045 17,349 7,258 30,490 37,748Management fee (282) (423) (705) (226) (339) (565) (480) (721) (1,201)Other administrative expenses (142) — (142) (161) — (161) (308) — (308)

Net return on ordinary activities before finance costs and taxation 4,885 10,992 15,877 4,917 11,706 16,623 6,470 29,769 36,239

Finance costs (101) (152) (253) (102) (153) (255) (201) (301) (502)


Taxation (480) — (480) (248) — (248) (696) — (696)


Return per Income share 4.59p 11.56p 16.15p 4.86p 12.31p 17.17p 5.94p 31.40p 37.34p


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.


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(Unaudited) (Unaudited) (Unaudited) 30th September 30th September 31st March 2017 2016 2017 £’000 £’000 £’000

Fixed assetsInvestments held at fair value through profit or loss 185,125 144,917 172,493

Current assetsDerivative financial assets 323 80 338Debtors 588 765 1,046Cash and cash equivalents 8,355 19,805 7,155

9,266 20,650 8,539Current liabilitiesCreditors: amounts falling due within one year (5,442) (5,917) (5,142)Derivative financial liabilities (44) (302) (6)

Net current assets 3,780 14,431 3,391

Total assets less current liabilities 188,905 159,348 175,884

Creditors: amounts falling due after more than one year (17,031) (16,717) (16,530)

Net assets 171,874 142,631 159,354

Net asset value per Income share 183.3p 151.9p 169.9p

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Financial Statements


(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended


Gains on investments held at fair value through profit or loss — 34,880 34,880 — 34,526 34,526 — 79,794 79,794

Net foreign currency losses — (1,683) (1,683) — (241) (241) — (51) (51)Income from investments 11,431 — 11,431 10,739 — 10,739 14,833 — 14,833 Interest receivable and similar income 32 — 32 75 — 75 103 — 103

Gross return 11,463 33,197 44,660 10,814 34,285 45,099 14,936 79,743 94,679 Management fee (597) (1,157) (1,754) (482) (936) (1,418) (1,018) (1,976) (2,994)Other administrative expenses (362) — (362) (416) — (416) (814) — (814)

Net return on ordinary activitiesbefore finance costs and taxation 10,504 32,040 42,544 9,916 33,349 43,265 13,104 77,767 90,871

Finance costs (239) (474) (713) (234) (460) (694) (456) (896) (1,352)


Taxation (1,121) — (1,121) (618) — (618) (1,833) — (1,833)


Return per share (note 3):Growth share 6.27p 26.85p 33.12p 5.79p 27.46p 33.25p 6.75p 61.08p 67.83pIncome share 4.59p 11.56p 16.15p 4.86p 12.31p 17.17p 5.94p 31.40p 37.34p


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.


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STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2017

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

Six months ended 30th September 2017 (Unaudited)At 31st March 2017 5,024 84,114 14,864 298,082 5,871 407,955Repurchase and cancellation of the Company’s own shares (1) — 1 (91) — (91)Net return on ordinary activities — — — 31,566 9,144 40,710 Dividends paid in the period (note 4) — — — — (4,173) (4,173)

At 30th September 2017 5,023 84,114 14,865 329,557 10,842 444,401

Six months ended 30th September 2016 (Unaudited)At 31st March 2016 6,279 82,761 13,591 224,306 3,930 330,867Repurchase and cancellation of the Company’s own shares (9) — 9 (435) — (435)Net return on ordinary activities — — — 32,889 9,064 41,953Dividends paid in the period (note 4) — — — — (3,041) (3,041)

At 30th September 2016 6,270 82,761 13,600 256,760 9,953 369,344

Year ended 31st March 2017 (Audited)At 31st March 2016 6,279 82,761 13,591 224,306 3,930 330,867Repurchase 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 conversion (1,221) — 1,221 — — —Net return on ordinary activities — — — 76,871 10,815 87,686Dividends paid in the year (note 4) — — — — (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 reserves of the Company and may be used to fund distribution of profits to investors via dividend payments.

Financial Statements continued

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(Unaudited) (Unaudited) (Audited)30th September 2017 30th September 31st March

2016 2017Growth Income Total Total Total£’000 £’000 £’000 £’000 £’000

Fixed assetsInvestments held at fair value through

profit or loss 298,260 185,125 483,385 369,345 435,814

Current assetsDerivative financial assets 54 323 377 150 394 Debtors 755 588 1,343 1,761 1,810 Cash and cash equivalents 9,141 8,355 17,496 55,460 25,920

9,950 9,266 19,216 57,371 28,124 Current liabilitiesCreditors: amounts falling due within

one year (8,837) (5,442) (14,279) (14,011) (13,421)Derivative financial liabilities (43) (44) (87) (337) (18)

Net current assets 1,070 3,780 4,850 43,023 14,685

Total assets less current liabilities 299,330 188,905 488,235 412,368 450,499 Creditors: amounts falling due after

more than one year (26,803) (17,031) (43,834) (43,024) (42,544)

Net assets 272,527 171,874 444,401 369,344 407,955

Capital and reservesCalled up share capital 3,065 1,958 5,023 6,270 5,024Share premium reserve 11,448 72,666 84,114 82,761 84,114 Capital redemption reserve 13,500 1,365 14,865 13,600 14,864Capital reserves 239,674 89,883 329,557 256,760 298,082Revenue reserve 4,840 6,002 10,842 9,953 5,871

Total shareholders’ funds 272,527 171,874 444,401 369,344 407,955

Net asset values (note 5):Net asset value per Growth share 353.1p 292.0p 321.9p Net asset value per Income share 183.3p 151.9p 169.9p

Company registration number: 237958

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STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2017

(Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th September 30th September 31st March 2017 2016 2017 £’000 £’000 £’000

Net cash (outflow)/inflow from operations before dividends and interest (note 6) (1,609) 2,508 222

Dividends received 10,759 9,368 11,612 Interest received — 2 2 Overseas tax recovered 113 167 524

Net cash inflow from operating activities 9,263 12,045 12,360

Purchases of investments and derivatives (140,132) (116,898) (289,356)Sales of investments and derivatives 128,336 146,595 297,400 Settlement of future contracts (291) 1,089 1,014 Settlement of foreign currency contracts (409) (292) (384)

Net cash (outflow)/inflow from investing activities (12,496) 30,494 8,674

Dividends paid (4,173) (3,041) (8,874)Repurchase and cancellation of the Company's own shares (354) (435) (1,461)Interest paid (663) (682) (1,327)

Net cash outflow from financing activities (5,190) (4,158) (11,662)

(Decrease)/Increase in cash and cash equivalents (8,423) 38,381 9,372

Cash and cash equivalents at start of period/year 25,920 16,583 16,583 Exchange movements (1) 496 (35)Cash and cash equivalents at end of period/year 17,496 55,460 25,920

(Decrease)/Increase in cash and cash equivalents (8,423) 38,381 9,372

Cash and cash equivalents consist of:Cash and short term deposits 681 31,658 5,953 JPMorgan Euro Liquidity Fund 16,815 23,802 19,967

Total 17,496 55,460 25,920


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1. Financial statementsThe information contained within the financial statements in this half year report has not been audited or reviewed by the Company’sauditors.

The figures and financial information for the year ended 31st March 2017 are extracted from the latest published financial statementsof the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to theRegistrar of Companies and including the report of the auditors which was unqualified and did not contain a statement under eithersection 498(2) or 498(3) of the Companies Act 2006.

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

FRS 104, ‘Interim Financial Reporting’, issued by the Financial Reporting Council (‘FRC’) in March 2015 has been applied in preparingthis condensed set of financial statements for the six months ended 30th September 2017.

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

The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financialstatements for the year ended 31st March 2017.

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED30TH SEPTEMBER 2017

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3. Return per share (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th September 30th September 31st March 2017 2016 2017Growth Share £’000 £’000 £’000

Return per share is based on the following:Revenue return 4,840 4,497 5,242Capital return 20,726 21,336 47,403

Total return 25,566 25,833 52,645

Weighted average number of shares in issue 77,196,087 77,709,134 77,612,534

Revenue return per share 6.27p 5.79p 6.75pCapital return per share 26.85p 27.46p 61.08p

Total return per share 33.12p 33.25p 67.83p

(Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th September 30th September 31st March 2017 2016 2017Income Share £’000 £’000 £’000

Return per share is based on the following:Revenue return 4,304 4,567 5,573Capital return 10,840 11,553 29,468

Total return 15,144 16,120 35,041

Weighted average number of shares in issue 93,769,494 93,884,791 93,837,413

Revenue return per share 4.59p 4.86p 5.94pCapital return per share 11.56p 12.31p 31.40p

Total return per share 16.15p 17.17p 37.34p

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NOTES TO THE FINANCIAL STATEMENTS CONTINUED


4. Dividends (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th September 30th September 31st March 2017 2016 2017 £’000 £’000 £’000

Dividends paidUnclaimed Growth dividends refunded

to the Company — (2) (2)Growth 2017 second interim dividend of 2.00p

(2016: 1.00p) 1,549 852 852Growth 2017 first interim dividend of 4.85p

(2016: 4.85p) — — 3,767Income 2017 fourth interim dividend of 1.70p

(2016 second interim: 1.45p) 1,593 1,158 1,158Income 2018 first interim dividend of 1.10p (2017: 1.10p) 1,031 1,033 1,033Income 2017 second interim dividend of 1.10p — — 1,033Income 2017 third interim dividend of 1.10p — — 1,033

Total dividends paid in the period 4,173 3,041 8,874

Dividends declaredGrowth 2017 second interim dividend of 2.00p — — 1,549Growth 2018 first interim dividend of 4.85p (2017: 4.85p) 3,744 3,766 —Income 2017 fourth interim dividend of 1.70p — — 1,593Income 2018 second interim dividend of 1.10p (2017: 1.10p) 1,031 1,033 —Income 2018 third interim dividend of 1.10p (2017: 1.10p) 1,031 1,033 —

Total dividends declared 5,806 5,832 3,142

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

5. Net asset value per share (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th September 30th September 31st March 2017 2016 2017

Growth ShareNet assets (£’000) 272,527 226,713 248,601Number of shares in issue 77,190,492 77,652,655 77,220,608

Net asset value per share 353.1p 292.0p 321.9p

Income ShareNet assets (£’000) 171,874 142,631 159,354 Number of shares in issue 93,769,494 93,884,791 93,769,494

Net asset value per share 183.3p 151.9p 169.9p

27

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

(Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th September 30th September 31st March 2017 2016 2017 £’000 £’000 £’000

Net return on ordinary activities before financecosts and taxation 42,544 43,265 90,871

Less capital return before finance costs and taxation (32,040) (33,349) (77,767)Scrip dividends included in income (117) (216) (438)Decrease/(increase) in accrued income and other

debtors 986 130 (909)(Decrease)/increase in accrued expenses (20) (33) 16Management fee charged to capital (1,157) (936) (1,976)Overseas withholding tax (1,530) (1,283) (1,877)Dividends received (10,759) (9,368) (11,612)Interest received — (2) (2)Realised (losses)/gains on foreign currency transactions (20) 2,711 2,609Realised gains on liquidity fund 504 1,589 1,307

Net cash (outflow)/inflow from operations beforedividends and interest (1,609) 2,508 222

7. Fair valuation of Financial InstrumentsThe fair value hierarchy analysis for Financial Instruments held at fair value at the period end is as follows:

(Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th September 2017 30th September 2016 31st March 2017 Assets Liabilities Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 £’000 £’000

Level 1 483,385 — 369,345 — 435,814 —Level 21 377 (87) 150 (337) 394 (18)

Total 483,762 (87) 369,495 (337) 436,208 (18)

1 Includes forward foreign currency contracts.

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INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in itshalf year report:

Principal Risks and UncertaintiesThe principal risks and uncertainties faced by the Company fall intothe following broad categories: investment and strategy;accounting, legal and regulatory; corporate governance andshareholder relations; operational; and financial. Information oneach of these areas is given in the Business Review within theAnnual Report and Accounts for the year ended 31st March 2017.

Related Parties TransactionsDuring the first six months of the current financial year, notransactions with related parties have taken place which havematerially affected the financial position or the performance of theCompany.

Going ConcernThe Directors believe, having considered the Company’s investmentobjectives, risk management policies, capital management policiesand procedures, nature of the portfolio and expenditure projections,that the Company has adequate resources, an appropriate financialstructure and suitable management arrangements in place tocontinue in operational existence for the foreseeable future and,more specifically, that there are no material uncertainties relatingto the Company that would prevent its ability to continue in suchoperation existence for at least twelve months from the date of theapproval of this half yearly financial report. For these reasons, theyconsider there is reasonable evidence to continue to adopt thegoing concern basis in preparing the accounts.

Directors’ ResponsibilitiesThe Board of Directors confirms that, to the best of its knowledge:

(i) the condensed set of financial statements contained within thehalf yearly financial report has been prepared in accordancewith FRS 104 ‘Interim Financial Reporting’ and gives a true andfair view of the state of affairs of the Company and of theassets, liabilities, financial position and net return of theCompany, as at 30th September 2017, as required by the UKListing Authority Disclosure and Transparency Rules 4.2.4R; and

(ii) the interim management report includes a fair review of theinformation required by 4.2.7R and 4.2.8R of the UK ListingAuthority Disclosure and Transparency Rules.

In order to provide these confirmations, and in preparing thesefinancial statements, the Directors are required to:

• select suitable accounting policies and then apply themconsistently;

• make judgements and accounting estimates that arereasonable and prudent;

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

• prepare the financial statements on the going concern basisunless it is inappropriate to presume that the Company willcontinue in business;

and the Directors confirm that they have done so.

For and on behalf of the Board

Andrew AdcockChairman 30th November 2017

Shareholder Information

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CAPITAL STRUCTURE AND CONVERSION BETWEEN SHARE CLASSES

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.

Capital Structure • 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 from a diversified portfolio ofinvestments in pan-european stockmarkets.

Conversion Opportunities Shareholders in either of the two share classes are able to convertsome or all of their shares into shares of the other classes withoutsuch conversion being treated, under current law, as a disposal forUK capital gains tax purposes.

The conversion mechanism allows shareholders to alter theirinvestment profile to match their changing investment needs ina tax-efficient manner.

Conversion is annual on 15th March (if such a date is not a businessday, then the conversion date will move to the next business day).

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 TrustInvestment Account or ISA must submit a conversion instructionform which can be found at www.jpmeuropean.co.uk. Instructionsfor CREST holders can also be found at this address. Those who holdshares in certificated 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 Marchconversions.

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 website: www.jpmeuropean.co.uk

TH

E CO

MPA

NY


Shareholder Information continued

GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES

TOTAL RETURNS

Return to shareholdersTotal return to the ordinary shareholder, on a last traded price tolast traded price basis, assuming that all dividends received werereinvested, without transaction costs, into the relevant share classof the Company at the time the shares were quoted ex-dividend (seepage 2).

Return on net assetsTotal return on net asset value (‘NAV’) per share, on a bid value tobid value basis, assuming that all dividends paid out by the Company

were reinvested into the relevant share class of the Company at theNAV per share at the time the shares were quoted ex-dividend (seepage 2).

In accordance with industry practice, dividends payable which havebeen declared but which are unpaid at the balance sheet date arededucted from the NAV per share when calculating the total returnon net assets.

The calculation of total return on net assets per share class is setout below:

Growth SharesPage

Net asset value per share with debt at par value (p) as at 31st March 2017 per Statement of Financial Position 22 321.90 less Growth second interim dividend with pre year-end ex-div date but paid post year-end per note 4 26 (2.00)

Adjusted net asset value per share with debt at par value (p) as at 31st March 2017 319.90 (a)

Net asset value per share with debt at par value (p) as at 30th September 2017 per Statement of Financial Position 22 353.10 less Growth first interim dividend with pre period-end ex-div date but paid post period-end per note 4 26 (4.85)

Adjusted net asset value per share with debt at par value (p) as at 30th September 2017 348.25 (b)

Dividend Factor1 1.0141 (c)

Adjusted net asset value per share with debt at par value (p) as at 30th September 2017 (b) x Dividend Factor (c) 353.16 (d)

Total return on net assets [(d) / (a) – 1] 2 10.4%

Income SharesPage

Net asset value per share with debt at par value (p) as at 31st March 2017 per Statement of Financial Position 22 169.90 less Income fourth interim dividend with pre year-end ex-div date but paid post year-end per note 4 26 (1.70)

Adjusted net asset value per share with debt at par value (p) as at 31st March 2017 168.20 (a)

Net asset value per share with debt at par value (p) as at 30th September 2017 per Statement of Financial Position 22 183.30 less Income first interim dividend with pre period-end ex-div date but paid post period-end per note 4 26 (1.10)

Adjusted net asset value per share with debt at par value (p) as at 30th September 2017 182.20 (b)

Dividend Factor1 1.0122 (c)

Adjusted net asset value per share with debt at par value (p) as at 30th September 2017 (b) x Dividend Factor (c) 184.43 (d)

Total return on net assets [(d) / (a) – 1] 3 9.7%1 The Dividend Factor is calculated on the assumption that the dividends paid out by the Company are reinvested into the same share classes at the NAV per share at the ex-div date.

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Benchmark returnTotal return on the benchmark, on a closing-market value toclosing-market value basis, assuming that all dividends receivedwere reinvested into the shares of the underlying companies at timethe shares were quoted ex-dividend (see page 2).

The benchmark is a recognised index of stocks which should not betaken as wholly representative of the Company’s investment universe.The Company’s investment strategy does not follow or ‘track’ thisindex and consequently, there may be some divergence between theperformance of the portfolio and that of the benchmark.

Gearing/Net CashGearing represents the excess amount above shareholders’ funds oftotal investments, expressed as a percentage of the shareholders’funds. If the amount calculated is negative, this is shown as a ‘netcash’ position (see page 2).

Share price discount/premium to net asset value pershareIf the share price of an investment trust is lower than the NAV pershare, the shares are said to be trading at a discount. The discountis shown as a percentage of the NAV per share. The opposite ofa discount is a premium. It is more common for an investmenttrust’s shares to trade at a discount than at a premium (see page 2).

Ongoing ChargesManagement fees and all other operating expenses, excludingfinance costs, expressed as a percentage of the average of the dailynet assets during the period. The ongoing charges are calculated inaccordance with guidance issued by the Association of InvestmentCompanies in May 2012. The figure as at 30th September 2017 is anestimated annualised figure based on the six months to 30thSeptember 2017 (see page 2).

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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

Shareholder Information continued

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

HistoryJPMorgan European Investment Trust plc was formed in 1929 as The London andHolyrood Trust Limited and was a general investment trust until 1982 when thename was changed to The Fleming Universal Investment Trust. Under this namethe portfolio became more internationally invested until November 1988, whenthe Board decided to concentrate on Continental European investments. In 1992shareholders approved a formal adoption of this specialisation. The Companyadopted its current structure and name in August 2006.

DirectorsAndrew Adcock (Chairman)Jo DixonStephen GoldmanJutta af RosenborgStephen Russell

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 Stock Exchange.The Company’s shares are listed on the London Stock Exchange. The marketprices are shown daily in the Financial Times, The Times, the Daily Telegraph, TheScotsman and on the Company website at www.jpmeuropean.co.uk, where theshare prices are updated 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 be purchasedand held through the J.P. Morgan Investment Account, J.P. Morgan ISA andJ.P. Morgan Junior ISA. These products are all available on the online serviceat 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 administrative matters.

DepositaryBNY Mellon Trust & Depositary (UK) LimitedBNY Mellon Centre160 Queen Victoria StreetLondon EC4V 4LA

The Depositary has appointed JPMorgan Chase Bank, N.A. as the Company’scustodian.

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 the helpline will costno more than a national rate call to a 01 or 02 number. Callers from overseasshould dial +44 121 415 0225.

Notifications of changes of address and enquiries regarding share certificates ordividend cheques should be made in writing to the Registrar quoting reference1080. Registered shareholders can obtain further details on their holdings on theinternet by visiting www.shareview.co.uk.

Savings Product AdministratorsFor queries on the J.P. Morgan Investment Account and J.P. Morgan ISA, seecontact details on the back cover of this report.

Independent AuditorsErnst & 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 30th September

Half year results announced November

Dividends payable – Growth April and October– Income April, July, October and January

Annual General Meeting July

A member of the AIC

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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.

www.jpmeuropean.co.uk

Documents

JPMorgan European Investment Trust plc€¦ · 30th September 31st March 31st March Dividend 2017 2017 2016 Per Growth share 4.85p6 6.85p 5.85p 1 Source: Morningstar. 2 Source: J.P