LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN SMALLER COMPANIES INVESTMENT TRUST PLC

(the 'Company')

FINAL RESULTS FOR THE YEAR ENDED 31ST JULY 2019

Legal Entity Identifier: 549300PXALXKUMU9JM18

Information disclosed in accordance with DTR 4.2.2

The Directors announce the Company's results for the year ended 31st July 2019

CHAIRMAN'S STATEMENT

Investment Performance

Following the very strong absolute and relative performance I was able to report last year, the last 12 months have been much more of a roller coaster, with an uncomfortably negative first half being followed by a partial recovery in the second. This left the share price lower over the year and, after taking the dividend into account, the total return for shareholders was -3.4%, compared to a benchmark return of -4.4%. The Numis Smaller Companies plus AIM Index (excluding Investment Companies) has been the Company's benchmark since 1st January 2019. Prior to this it was the FTSE Small Cap Index (excluding Investment Trusts).

Income and capital performance for the underlying portfolio was -5.2%, slightly worse than the 4.4% fall in the benchmark, but the shares benefitted from a reduction in the discount to net asset value.

The last two years are good reminders of the variability and unpredictability of markets and smaller companies in particular. Given the increasing economic and political uncertainties that were a hallmark of the last year, it is perhaps a pleasant surprise that returns were not worse. The three years since the EU referendum has been a period when the UK market has been low down investors' buy lists. As a result, shares have become increasingly good value, particularly when compared to the pitiful returns money earns on deposit, or promised in the bond market.

Things can always deteriorate but starting with a relatively low valuation would help to soften the blow if they did and also provide a good basis for positive returns if and when the fog starts to clear.

In their report, the Investment Managers provide further detail on portfolio performance and attribution, together with a commentary on markets.

Revenue and Dividends

Yield is a secondary consideration for the Investment Managers when selecting shares, their primary aim being to deliver strong long-term total returns. As a result, the Company's revenues and dividend may vary up or down from year to year. It is however, an indication of the relative value available in the market that as at 31st July the yield on the underlying portfolio was 2.80%, compared with the Bank of England Base Rate of 0.75% and a yield on 10 year UK Government Securities of 0.61%.

This year, the revenue return per share, calculated on the average number of shares in issue, increased slightly to 6.36p (2018: 6.14p) and as our policy is to distribute substantially all of the income earned in the year, the Directors are recommending a final dividend of 5.5p per share, 1.9% higher than the 5.4p¹ paid last year. If approved, the dividend will be paid on 13th December 2019 to shareholders on the register at close of business on 8th November 2019.

¹ Restated following the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 30th November 2018.

Gearing

The Board believes that a moderate level of gearing is a good way to enhance long-term shareholder returns, particularly in the current low interest rate environment, albeit at the cost of a small increase in short-term volatility. The level of gearing is regularly discussed with the Manager and is adjusted to reflect short-term considerations.

During the financial year the borrowing facility of £25 million with Scotiabank was renewed for six months on 4th April 2019 and then for a further year on 4th October 2019. The current facility will expire in October 2020. There is a further option to increase borrowings to £35 million subject to certain conditions. At the year end, £24 million (2018: £25 million) was drawn on the loan facility with the gearing level of 8.7% (2018: 9.1%) of net assets. Since the year-end gearing has reduced, and as of 15th October 2019 was 6.1%.

Shareholders will note that on 20th September 2018 we announced that we were considering the possibility of issuing a convertible unsecured loan stock in order to provide the Company with structural, long term gearing and the potential to grow the shareholder base of the Company in the future upon conversion into ordinary shares. After further discussion, and in the light of increased domestic political uncertainty the Board decided not to proceed with the issue.



Share Repurchases and Issuance

At last year's Annual General Meeting ('AGM'), shareholders granted the Directors authority to repurchase the Company's shares for cancellation or to be held in Treasury for possible re-sale. During the financial year the Company repurchased 16,319 Ordinary shares for cancellation and 1,045,524 Ordinary shares into Treasury, for a total consideration of £2,544,000. This amount represented 1.3% of the issued Ordinary share capital at the beginning of the year. Treasury shares will only be sold at a premium to net asset value.

The Board's objective remains to use the repurchase authority to manage imbalances between the supply and demand of the Company's shares, with the intention of reducing the volatility of the discount. To date the Board believes this mechanism has been helpful and therefore proposes and recommends that powers to repurchase up to 14.99% of the Company's shares (less shares held in Treasury) as at the date of the AGM be renewed.

Since the year end, and as at 16th October 2019, an additional 514,217 shares were repurchased into Treasury. The Company's issued share capital less the shares held in Treasury now comprises 78,051,669 Ordinary Shares.

Costs and review of services provided by the Manager

During the year the Board carried out a thorough review of the investment management, secretarial and marketing services provided to the Company by the Manager. Following this review, the Board concluded that the continued appointment of the Manager is in the interests of the shareholders as a whole.

Reflecting a general trend of reducing investment management fees and following constructive discussions with the Manager, the annual investment management fee has reduced from 1st August 2019 as follows:

•   From 0.80% to 0.75% on the first £200 million of gross assets;

•   From 0.70% to 0.65% on gross assets in excess of £200 million.

Following my retirement at the AGM this year, in order to reduce costs further, other than when required for succession purposes the Board has decided to have four rather than five directors.

These changes will enhance shareholder returns and should make the Company more attractive for investors. The Company's ongoing charges for the financial year, as a percentage of the average of the daily net assets during the year, were 1.11% (2018: 1.03%).

Board of Directors and Succession Planning

As previously announced, I will be retiring from the Board following the forthcoming AGM in November after having served on the Board from 2005 and as its Chairman since 2013. Andrew Impey will take over from me as Chairman following my retirement.  This internal appointment will provide continuity for both the Board and the Company in the future.

During the year, the Board employed Lintstock to facilitate an evaluation of the Board and its Committees. At the most recent Nomination Committee meeting it was agreed that all the Directors, with the exception of myself, will stand for reappointment at the forthcoming AGM, in accordance with good corporate governance practice.

Looking further into the future, Andrew Robson will retire from the Board at the AGM in 2020 and the Board will shortly commence the search for a new candidate who will succeed him as a director and Chair of the Audit Committee.

Annual General Meeting

The Company's twenty-ninth AGM will be held on Monday 2nd December 2019 at 3.00 p.m. at 60 Victoria Embankment, London EC4Y 0JP. In addition to the formal part of the meeting, there will be a presentation from the Investment Managers who will answer questions on the portfolio and performance. Shareholders who are unable to attend the AGM in person are encouraged to use their proxy votes.

Outlook

At the time of writing, the nature of our future relationship with the EU remains unclear. In addition, in the light of Parliamentary arithmetic, it seems inevitable that we will see a general election before too long. We need a period of greater stability and predictability which would be good for UK smaller companies, but there are outcomes that could create a more adverse environment for the domestic corporate sector.

Success requires investors to be patient, back good companies and look through short-term uncertainty.  This is particularly the case when investing in small companies which have the capacity to deliver strong returns but are inevitably less diversified and therefore more exposed to changes in economic or market conditions.

This Company provides a great way to gain exposure to interesting and exciting UK smaller companies and should reward long-term investors who are willing to accept relatively high short-term volatility.

It has been a pleasure and a privilege to serve you as a director and Chairman of the Company, and I am confident that the Company will continue to prosper under Andrew Impey's leadership.

Michael Quicke OBE

Chairman                                                                                                                                          17th October 2019

INVESTMENT MANAGERS' REPORT

Performance and Market Background

The financial year to July 2019 was a year of two halves. The first half of the year saw a notable decline, even after the sharp rebound in January. Our former index, the FTSE Small Cap (ex Investment Trusts) Index, was down 9.6% in the six months, while our new benchmark, adopted on 1st January 2019, the Numis Smaller Companies plus Aim (ex Investment Companies) Index, was down 11.1%. The second half of the year saw a strong rebound in stockmarkets, both in the UK and other developed markets. The recent strength of stockmarkets has come about against a backdrop of rising geopolitical tensions and President Trump's trade wars, which have led to a slowdown in global growth this year. The World Bank recently cut its 2019 world growth forecast from 2.9% to 2.6%, which compares unfavourably to 3.7% in 2018.

In the UK the positive factors include benign inflation at 1.7%, continuing very low unemployment at 3.8% and strong wage growth ahead of inflation, leading to an increase in consumer discretionary income of 5.9% versus last year. However this positive impact has been nullified by the ongoing Brexit discussions. In the second quarter of 2019, after the 29th March exit date came and went, the impact of this became more evident. GDP growth in the second quarter turned negative at -0.2% and the important purchasing managers indices turned down. In addition there was a marked decline in capital spending by companies. This led the Bank of England in August to reduce its GDP forecasts for both 2019 and 2020 to a lowly 1.3%. These difficult conditions led to a significant rise in the number of companies failing to achieve their budgets - there has been a 19% increase in profit warnings in the first half of 2019 in the UK compared to the previous year.

Against this backdrop our composite index declined by -4.4% over the 12 months. After a very weak Q4 2018 for the Company, a strong rebound in performance led to a total return on net assets of -5.2%. The global market sell-off in the fourth quarter of 2018 saw significant declines in the share prices of companies that had performed very strongly throughout last year. There was no fundamental reason for this, so we utilised it to add to a number of our positions - a move which strongly benefitted the Company in the second half of the financial year. The discount narrowed slightly, aided by buy-backs, and the share price total return for year was -3.4%.

Portfolio

The positive contributors for the year, which aided the significant rebound in performance in the second half, included a number of our longer term winners such as Games Workshop, 4Imprint and Judges Scientific. In addition, more recent additions to the portfolio over the last two years such as the pub company EI Group and Future, a specialist content media business, were notable contributors to performance.

On the negative side, three holdings detracted significantly over the year. Two of these we discussed in the Interim Report, namely Victoria and Plus 500, both of which have been sold. The third was Fevertree (owned since its IPO) where we had reduced the position substantially, but continue to own due to the significant opportunity for the company in the USA.

As discussed in the Interim Report, we have made notable changes to the portfolio following the benchmark change in January. New additions include the retailer Pets at Home, Serco, a public services outsourcer, Computacenter, a computer services company and Energean, an oil & gas company, while we have chosen to sell out of a number of positions including Costain, GoCo, Ricardo, SDL and Tyman. During these changes, we have also taken the opportunity to rebalance the portfolio to ensure equal exposure to domestic and overseas earners in order to reduce Brexit risk and to take advantage of lowly valuations.

There have been fewer IPOs than in recent years, but we have benefitted to date from new holdings in companies such as Argentex, a foreign exchange provider, and the luxury retailer Watches of Switzerland. In addition, we have also been on the receiving end of bids for a number of our holdings during the year: EI Group, Tarsus, Bioquell and Ophir, all received well-priced bids - a trend we expect to continue.

Outlook

At the time of writing, none of us have any insight into the eventual Brexit outcome. It appears highly likely that there will be a General Election, which may or may not provide clarity on the Brexit outlook and could have significant negative consequences for the UK stockmarket. The risk of the UK economy falling into a recession in 2019 has also risen. This should not come as a surprise given both the impact of the global slowdown, caused in large part by the trade wars, and the hiatus caused by the chaotic nature of the Brexit process.

All of this has led many global investors to shun the UK stockmarket. This in turn has led to a very cheap valuation in the UK market, especially for mid and small cap companies compared to their historical valuation. We know the UK market is cheap. We know why it is cheap. What we do not know is when the inevitable re-rating will come. However, we expect it to occur when we finally have some kind of Brexit resolution, and both companies and consumers can start to plan again for the future.

We are not alone in believing the UK market is undervalued on any sensible timeframe. Dealogic records that £95 billion has been spent this year on buying UK companies, of which £52 billion has been from overseas buyers, who are benefitting from both low valuations and also from sterling currency weakness. We too have benefitted from this as outlined in the portfolio section above, and expect this trend to continue.

All of these unknowns have led us, first and foremost, to continue to focus on the long-term winners in our smaller companies arena. We seek to own companies with a competitive edge, frequently in niche growth markets, which can and are forging their own growth, and are showing resilience in the current climate. Our new benchmark has provided many such opportunities, and we expect to benefit from this much expanded universe.

Georgina Brittain

Katen Patel

Investment Managers                                                                                                                           17th October 2019

PRINCIPAL RISKS

The Directors confirm that they have carried out a robust assessment of the principal risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity.

With the assistance of the Manager, the Board has completed a robust risk assessment and drawn up a risk matrix, which identifies the key risks to the Company. In assessing the risks and how they can be mitigated, the Board has given particular attention to those issues that threaten the viability of the Company. These key risks remain unchanged since last year and fall broadly under the following categories:

•        Corporate Strategy

          The corporate strategy, including the investment objectives and policies, may not be of sufficient interest to current or prospective shareholders. Other factors, such as the size of the Company and level of liquidity in its shares, may also deter shareholder interest, resulting in the shares trading at an increased discount to net asset value. The Board regularly reviews its strategy, and assesses, with its brokers, shareholder views.

•        Investment and Performance

          Poor investment performance, for example due to poor stock selection, asset allocation or an inappropriate level of gearing, may lead to under-performance against the Company's benchmark index and peer companies, resulting in the Company's shares trading on a wider discount. The Board manages these risks by diversification of investments through its investment restrictions and guidelines which are monitored and reported on. The Manager provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates and liquidity reports. The Board monitors the implementation and results of the investment process with the Investment Manager, who attend Board meetings, and reviews data which shows statistical measures of the Company's risk profile. The Investment Manager employs the Company's gearing, within a strategic range set by the Board.

•        Discount

          A disproportionate widening of the discount relative to the Company's peers could result in loss of value for shareholders. In order to manage the Company's discount the Company operates a share repurchase programme and the Board regularly discusses discount management policy and has set parameters for the Manager and the Company's broker to follow. The Board receives regular reports and is actively involved in the discount management process.

•        Smaller Company Investment

          Investing in smaller companies is inherently more risky and volatile, partly due to a lack of liquidity in the shares, plus AIM stocks are less regulated. The Board discusses these risk factors regularly at each Board meeting with the Investment Managers. The Board has placed investment restrictions and guidelines to limit these risks.

•        Political and Economic

          Changes in financial or tax legislation, uncertainty about the UK's future relationship with the EU, and a change in government policies, possibly following an election, may each adversely affect the Company. The Manager makes recommendations to the Board on accounting, dividend and tax policies, and seeks external advice where appropriate.

•        Investment Management Team

          Investment performance may suffer if the designated investment managers were to leave. The Board considers that, though there may be short-term disruption, the risk would be mitigated by the substantial investment management resources of JPMorgan, and the use of an established investment methodology.

•        Market

          Market risk arises from uncertainty about the future prices of the Company's investments. It represents the potential loss that the Company might suffer through holding investments in the face of negative market movements. The Board considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines, which are monitored and reported on by the Manager. The Board monitors the implication and results of the investment process with the Manager.

•        Accounting, Legal and Regulatory

          In order to qualify as an investment trust, the Company must comply with Section 1158 of the Income and Corporation Tax Act 2010 ('Section 1158'). Details of the Company's approval are given in the Annual Report. Should the Company breach Section 1158, it may lose its investment trust status and as a consequence capital gains within the Company's portfolio would be subject to Capital Gains Tax. The Section 1158 qualification criteria are regularly monitored by the Manager and the results reported to the Board each month. The Company must also comply with the provisions of The Companies Act 2006 and, as its shares are listed on the London Stock Exchange, the UKLA Listing Rules and Disclosure and Transparency Rules ('DTRs'). A breach of the Companies Act 2006 could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the UKLA Listing Rules or DTRs may result in the Company's shares being suspended from listing which in turn would breach Section 1158. The Board relies on the services of its Company Secretary, JPMorgan Funds Limited, and its professional advisers to monitor compliance with all relevant requirements.

•        Corporate Governance and Shareholder Relations

          Details of the Company's compliance with Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance Statement in the Annual Report. The Board receives regular reports from the Manager and the Company's broker about shareholder communications, their views and their activity.

•        Operational and Counterparty Failure

Disruption to, or failure of, the Manager's or a counterparty's accounting, dealing or payments systems or the Depositary or Custodian's records may prevent accurate reporting and monitoring of the Company's financial position. Under the terms of its agreement, the Depositary has strict liability for the loss or misappropriation of assets held in custody. See note 21(c) in the Annual Report and Financial Statements for further details on the responsibilities of the Depositary. Details of how the Board monitors the services provided by JPMF and its associates and the key elements designed to provide effective risk management and internal controls are included within the Risk Management and Internal Controls section of the Corporate Governance Statement in the Annual Report.

•        Cyber Crime

The threat of cyber attack, in all its guises, is regarded as at least as important as more traditional physical threats to business continuity and security. The Board has received the cyber security policies for its key third party service providers and JPMF has assured Directors that the Company benefits directly or indirectly from JPMorgan's Cyber Security programme. The information technology controls around the physical security of JPMorgan's data centres, security of its networks and security of its trading applications are tested by an independent third party and reported every six months against the AAF Standard.

•        Financial

          The financial risks faced by the Company include market price risk, interest rate risk, liquidity risk and credit risk. Counterparties are subject to daily credit analysis by the Manager. In addition the Board receives reports on the Manager's monitoring and mitigation of credit risks on share transactions carried out by the Company. Further details are disclosed in note 21 of the Annual Report Financial Statements.

TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES

Details of the management contract are set out in the Directors' Report in the Annual Report. The management fee payable to the Manager for the year was £1,779,000 (2018: £1,861,000) of which £nil (2018: £nil) was outstanding at the year end.

During the year £32,000, including VAT, was payable to (2018: £3,000, was refunded by) the Manager for the administration of savings scheme products, of which £nil (2018: £6,000) was outstanding at the year end.

Included in administration expenses in note 6 of the Annual Report and Financial Statements are safe custody fees amounting to £3,000 (2018: £4,000) payable to JPMorgan Chase of which £1,000 (2018: £1,000) 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's length. The commission payable to JPMorgan Securities Limited for the year was £nil (2018: £1,000) of which £nil (2018: £nil) was outstanding at the year end.

The Company also holds cash in the JPMorgan Sterling Liquidity Fund, which is managed by JPMorgan. At the year end this was valued at £4.9 million (2018: £3.6 million). Interest amounting to £57,000 (2018: £25,000) was receivable during the year of which £nil (2018: £nil) was outstanding at the year end.

Handling charges on dealing transactions amounting to £11,000 (2018: £10,000) were payable to JPMorgan Chase during the year of which £2,000 (2018: £3,000) was outstanding at the year end.

At the year end, total cash of £722,000 (2018: £250,000) was held with JPMorgan Chase. A net amount of interest of £78 (2018: £49) was receivable by the Company during the year from JPMorgan Chase of which £28 (2018: £6) was outstanding at the year end.

Full details of Directors' remuneration and shareholdings can be found in the Annual Report and Financial Statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards), comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that, taken as a whole, the annual report and accounts are fair balanced and understandable, provide the information necessary, for shareholders to assess the Company's performance, business model and strategy, and that they give a true and fair view of the state of affairs of the Company and of the total return or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

•        select suitable accounting policies and then apply them consistently;

•        state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;

•        make judgments and accounting estimates that are reasonable and prudent; and

•        prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business.

and the Directors confirm that they have done so.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements and the Directors' Remuneration Report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The accounts are published on the www.jpmsmallercompanies.co.uk website, which is maintained by the Company's Manager. The maintenance and integrity of the website maintained by the Manager is, so far as it relates to the Company, the responsibility of the Manager. The work carried out by the auditor does not involve consideration of the maintenance and integrity of this website and, accordingly, the auditor accepts no responsibility for any changes that have occurred to the Annual Report since it was initially presented on the website. The Annual Report is prepared in accordance with UK legislation, which may differ from legislation in other jurisdictions.

Under applicable law and regulations the Directors are also responsible for preparing a Strategic Report, a Directors' Report and a Directors' Remuneration Report that comply with that law. The Strategic Report and the Directors' report include a fair review of the development and performance of the business and the position of the issuer, together with a description of the principal risks and uncertainties that they face.

Each of the Directors, whose names and functions are listed in Directors' Report confirm that, to the best of their knowledge:

•        the Company's financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

•        the Directors' Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The Directors consider that the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy.

For and on behalf of the Board

Michael Quicke OBE

Chairman                                                                                                                                     17th October 2019

FINANCIAL STATEMENTS

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST JULY 2019

¹ Comparative figures for the year ended 31st July 2018 have been restated following the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 30th November 2018.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST JULY 2019

¹This reserve forms the distributable reserve of the Company and is used to fund distributions to investors via dividend payments.

STATEMENT OF FINANCIAL POSITION AT 31ST JULY 2019

¹ Comparative figure for the year ended 31st July 2018 has been restated following the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 30th November 2018.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2019



NOTES TO THE FINANCIAL STATEMENTS



1.       Accounting policies

Basis of accounting

The financial statements are prepared under the historical cost convention, modified to include fixed asset investments at fair value, and in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and with the Statement 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 February 2018.

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 of the Audit Committee Report in the Annual Report form part of these financial statements.

The policies applied in these financial statements are consistent with those applied in the preceding year.



2.       (Loss)/return per share

¹     Comparative figures for the year ended 31st July 2018 have been restated following the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 30th November 2018.

3.       Dividends

(a)     Dividends paid and proposed

All dividends paid and proposed in the period have been and will be funded from the revenue reserve.

The dividend proposed in respect of the year ended 31st July 2018 amounted to £4,303,000. However the amount paid amounted to £4,299,000 due to shares repurchased after the balance sheet date but prior to the share register record date.

The dividend proposed in respect of the year ended 31st July 2019 is subject to shareholder approval at the forthcoming AGM. In accordance with the accounting policy of the Company, this dividend will be reflected in the financial statements for the year ending 31st July 2020.

(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, shown below. The revenue available for distribution by way of dividend for the year is £5,082,000 (2018: £5,005,000). The revenue reserve after payment of the final dividend will amount to £3,229,000 (2018: £2,479,000).

¹     The dividend rate has been restated following the sub-division of each existing ordinary share of 25p into 5p each on 30th November 2018.



4.       Net asset value per share

¹     Comparative figures for the year ended 31st July 2018 have been restated following the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 30th November 2018.

5.       Status of results announcement

2018 Financial Information

The figures and financial information for 2018 are extracted from the Annual Report and Financial Statements for the year ended 31st July 2018 and do not constitute the statutory accounts for the year. The Annual Report and Financial Statements include the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Financial Statements will be delivered to the Register of Companies in due course.

2019 Financial Information

The figures and financial information for 2019 are extracted from the published Annual Report and Financial Statements for the year ended 31st July 2019 and do not constitute the statutory accounts for that year. The Annual Report and Financial Statements has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

17th October 2019

For further information, please contact:

Lucy Dina

For and on behalf of

JPMorgan Funds Limited

020 7742 4000

ENDS

A copy of the half year will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM

The half year will also shortly be available on the Company's website at www.jpmsmallercompanies.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

JPMORGAN FUNDS LIMITED