Final Results

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN INCOME & GROWTH INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 31ST JANUARY 2016

The Directors of JPMorgan Income & Growth Investment Trust plc announce the Company's results for the year ended 31st January 2016.

CHAIRMAN'S STATEMENT

The Company's final full year was a more difficult period than each of the previous five years. Shareholders' funds fell by 4%; though this was nearly 1% ahead of the benchmark (the FTSE 350 index). Over five years the annualised total return on shareholders funds has been 8.9%, versus 5.4% for the benchmark. As Capital shares represent a geared exposure to markets, a small fall in total shareholders' funds leaves Capital shares with no intrinsic value. The Company was listed just before the financial crisis; this explains the poor long-term performance of the Capital shares.

The total return disguises a continued run of good relative returns from the underlying portfolios. The U.K. Equity portfolio, which is 70% of the investment assets, actually returned +0.5%; the rest of the portfolio, held for diversification of income sources, was down but ahead of the benchmark. The negative return is largely explained by the costs of gearing and the management costs of running the trust. These are relatively high because the portfolio sub-scale, and because we have included our best estimate of the cost of liquidation in November. The attribution analysis is shown in the Investment Managers' Report below.

The Managers' Report gives a full explanation for the weakness in markets. It is seven years since the nadir of markets in 2009, so we should not be surprised that markets have stepped back from highs reached last April. After many years of reliance on central banks to generate growth, investors have finally started to question their credibility. Monetary policy is a powerful tool, but it cannot solve the problem of excess debt or force businesses to invest. The Board has been considering options when the Company winds up in accordance with its Articles of Association in November. We do not believe that the Company is of a sufficient size to justify offering a stand-alone roll-over option. We do, however, believe that we must offer a roll-over option so that investors are not forced to crystallise capital gains; and so that shareholders can have continued exposure to the stock market and the attractive yield our portfolio generates.

We have announced that the Company had agreed to offer shareholders the option of rolling over some or all of their investment into an existing investment trust, JPMorgan Elect. This offers flexibility, with capital, income and cash shares to choose from, and continuity, given that the same investment team runs the portfolio. There is no obligation for shareholders to roll over, as a cash exit at NAV less costs will also be offered, but many of you will wish to maintain exposure to the stock market and a good investment team, and not to be forced to trigger capital gains tax this year.

The Board has discussed the investment portfolio with our managers. As shareholders will read in the Investment Managers' Report, they remain positive about markets between now and November this year. We shall remain fully invested with gearing maintained at £20 million over the remaining months of the Company's life. This guidance should allow shareholders to make investment decisions with full knowledge of the exposure of JPMorgan Income and Growth. In extraordinary circumstances the Board will reconsider this position. We shall announce any meaningful changes in asset allocation.

Karl Sternberg

Chairman

20th April 2016

INVESTMENT MANAGERS' REPORT

Market Review

Global financial markets had a challenging 12 months to 31st January 2016, with sentiment dominated by worries over the Greek debt crisis, concern over the impact of a Chinese slowdown on global growth and most recently, the risk of a U.S. recession. The MSCI World Index was down 0.8%. Global fixed income markets fared better, as investors searched for a safe haven given increased stock volatility. Our index, the UK FTSE 350 was down 4.9%, underperforming the world index.

A major theme in the period was speculation over the timing and pace of US interest rate rises by the Federal Reserve (Fed). Expectations for the first rate rise were repeatedly pushed back as a result of a lack of inflationary pressure. The Fed's eventual decision to raise interest rates by 0.25% at its December meeting, for the first time since 2006, was greeted positively by markets.

In contrast to the move towards monetary policy tightening in the US, continued economic weakness in the eurozone at the start of the period saw the European Central Bank (ECB) undertake further stimulus measures. Nevertheless, the region slipped back into deflation in September, and growth remained uneven and fragile. The Bank of Japan (BoJ) also continued its quantitative easing programme, targeting annual asset purchases worth JPY 80 trillion in order to boost the Japanese economy.

Monetary policy speculation also dominated in the UK. Expectations for the first interest rate rise since July 2007 were pushed back throughout the period, with continued disinflationary pressures and weakness in the global economy reinforcing the view that the Bank of England would keep rates on hold until mid-2016.

Portfolio Review

The Income and Growth portfolio is managed with the objectives of meeting the final capital entitlement of the Income shareholders, as well as providing them with a regular income, and of providing capital growth for the Capital shareholders. Any asset allocation or portfolio construction decisions that we make are judged on the needs of both the Income and Capital shareholders.

Shareholders' funds fell by 4.0%, which is ahead of the Company's benchmark return of -4.9%, as measured by the FTSE 350 index.

During the past 12 months the allocation to UK equities ranged between 74% and 77%, reflecting the robust outperformance of this part of the portfolio. Global high yield bond holdings were increased from 4.7% to 6.5%. The allocation to the JPM Multi-Asset Income Fund, which invests in both equities and corporate bonds, decreased from 18.1% to 11.9%.

Source: Bloomberg, J. P. Morgan Asset Management. Fund is shareholders funds and benchmark is FTSE 350 Total Return Net

Contributions to Total Returns as at 31st January 2016

Source: JPMAM.

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

UK Equity Portfolio Review

The UK equity portfolio outperformed the Company's benchmark, delivering an absolute return of +0.5 versus -4.9 for the index.

We have held positions in several of the UK's largest housebuilders for some time now and these contributed materially to the positive portfolio returns over the year. Berkeley Group which builds largely in the South East of the UK continues to deliver results ahead of expectations. Demand remains strong whilst profitability is benefiting from utilising development land bought judiciously at attractive prices during the downturn. ITV notched up another year of strong performance as programme-making (think Poldark, Downton Abbey, etc.) is becoming an increasingly important driver of profit growth.

Commodity price weakness led to weak share price performances from two holdings: iron ore producer, Rio Tinto; and paper and packaging group, Mondi. The equipment rental group, Ashtead was also weak as there were fears that its large US division was likely to experience a slow down in growth.

We introduced several new names into the portfolio over the course of the year. We bought Card Factory, which is a retailer of 'value' greeting cards through a 750-strong network of stores across the UK. Strong trading and cash generation means the company is in a position to increase total pay outs via special dividends. We also bought Costain, a UK focused infrastructure group. The outlook for this company is strong due to planned increases in the road, rail and water infrastructure of the UK. The price comparison website owner, Moneysupermarket, was another new entrant. The company's market leading position is driving strong growth whilst its cash generative business model is supporting 10% dividend growth. Other purchases included wholesale food distribution company, Booker, while we also increased existing positions in DCC, BAE and WPP.

Conversely, we sold Glencore and BHP Biliton - two of the portfolio's mining holdings. The prices of commodities such as iron ore and copper experienced precipitous falls over the course of the year as investment activity in China slowed. Despite comments from the companies managements that maintaining dividends was their top priority it became increasingly apparent as the year went on that balance sheet risks were increasing. Both companies cut their payouts. We also sold our position in Prudential as growth in the company's Asian operations appeared to slow and regulatory uncertainty in the UK & US increased. Other sales included several of our holdings in engineering companies such as Bodycote, GKN and Spirax Sarco as industrial production growth decelerated in North America.

JPM Multi-Asset Income fund

The fund returned -4.3% during the 12 month period. The largest detractors to performance were the relatively large allocations to global and European equities and high yield debt, as these markets reacted to volatility in the oil price.

We reduced risk over the period. The Fund holds lower allocations to international equities compared to early in the period. We retain our positive view on European corporations and continue to find opportunities in preferred equity and global REITs. In fixed income, we have selectively added to high yield and US Investment Grade Corporates in recent months.

JPM Global High Yield Bond Fund

The Fund was a negative contributor to overall return, delivering -6.5% for the period. Sentiment within high yield eroded in 2015 as a result of continued global growth uncertainty, geopolitical turmoil, further declines in energy and commodity-related prices and deteriorating supply and demand dynamics.

Security selection in metals & mining, oil field services and healthcare sectors enhanced Fund performance. Alternatively, relative contributions from telecommunications, retailers and banking hindered Fund performance. At 31st January 2016, relative to benchmark, the Fund was overweight in technology, gaming and healthcare due to our view of the relative value opportunities within those sectors and underweight in the banking/financials, metals & mining and home construction sectors. We do not find these sectors attractive due to challenging fundamental outlooks or rich valuations.

JPM Europe Strategic Dividend Fund

The Fund delivered a negative return in sterling terms; however, it was a positive contributor overall, outperforming its MSCI Europe benchmark -1.6% versus -3.9%.

At the sector level, stock selection in the utilities sector was the largest positive contributor to relative returns. Stock selection in insurance and consumer durables & apparel also contributed positively. The largest detractor was an underweight position in software & services. An underweight position in food, beverage & tobacco was also harmful, although this was partially offset by positive stock selection. Stock selection in energy was another detractor from relative returns.

Outlook

While there is greater uncertainty regarding the global economic outlook and efficacy of central bank policy, we would still on balance expect a modestly positive return from equity markets for the remainder of the life of the Trust. We expect global growth to run at a satisfactory pace (at least in developed economies) and do not see a significant risk of a recession in the US in 2016.

We maintain our large allocation to UK equities and in addition to European equities which are particularly attractive given the compelling dividend yield. We expect European equities to benefit as the European economies continue to recover.

Our view is that US high yield bond prices are indicating a recession which is unlikely to materialise. We believe the fundamental characteristics of high yield issuers remain sound, aside from the lower quality and commodities names, with healthy balance sheets and low anticipated default rates. While the past 12 months have been a difficult period for high yield bonds, the yield that the Income & Growth portfolio has received has been of benefit. Looking forward, we would expect positive returns from high yield bonds and at the time of writing have increased the weight in the portfolio.

James Elliot

Katy Thorneycroft

Sarah Emly

John Baker

Investment Managers

20th April 2016

Principal Risks

With the assistance of the Manager, the Board has drawn up a risk matrix, which identifies the key risks to the Company. These key risks fall broadly under the following categories:

• Investment and Strategy: An inappropriate investment strategy, for example asset allocation or the level of gearing, may lead to under-performance against the Company's benchmark index and peer companies. The Board manages these risks by diversification of investments through its investment restrictions and guidelines which are monitored and reported on by the Manager. JPMAM provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, liquidity reports and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Managers, who attend all Board meetings, and reviews data that show statistical measures of the Company's investment exposure and risk profile. The Investment Managers employ the Company's gearing tactically, within a strategic range set by the Board. The Board holds a separate meeting devoted to strategy each year.

• Market: Market risk arises from uncertainty about the future prices of the Company's investments. It represents the potential loss 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 implementation and results of the investment process with the Investment Managers.

• Accounting, Legal and Regulatory: Should the Company breach Section 1158 ('Section 1158') of the Corporation Tax Act 2010, it may lose investment trust status and as a consequence gains within the Company's portfolio would be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by JPMAM 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') issued by the FCA. A breach of the Companies Act could result in the Company and/or the Directors being fined or the subject of criminal proceedings. A 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, and its professional advisers to ensure compliance with the Companies Act 2006 and the UKLA Listing Rules and DTRs.

• Corporate Governance and Shareholder Relations: The Board regularly reviews and considers corporate governance issues and the Company's Shareholder views and relations. Details of the Company's compliance with respect to Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance report on pages 24 to 25 of the Annual Report and Accounts.

• Operational: Disruption to, or failure of the Manager's accounting, dealing or payments systems or the depositary's or the custodian's records may prevent accurate reporting and monitoring of the Company's financial position. On 1st July 2014, the Company appointed BNY Mellon & Depositary (UK) Limited to act as its depositary, responsible for overseeing the operation of the custodian, JPMorgan Chase Bank, N.A., and the Company's cash flow. Details of how the Board monitors the services provided by the Manager and its associates and the key elements designed to provide effective internal control are included within the Risk Management and Internal Control section of the Corporate Governance report on page 25 of the Annual Report and Accounts.

• Financial: The financial risks faced by the Company include market risk (comprising interest rate risk and other price risk), liquidity risk and credit risk. Further details are disclosed in note 24 on pages 54 to 58 of the Annual Report and Accounts.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the 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 and applicable law) including FRS 102 'Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 order to provide these confirmations, and in preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

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

• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business. For reasons stated in the Directors' Report and note 1(a) of the Annual Report and Accounts, the financial statements of the Company have been prepared on a break-up basis as the Company is not a going concern.

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 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.jpmincomeandgrowth.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 accounts since they were initially presented on the website. The accounts are prepared in accordance with UK legislation, which may differ from legislation in other jurisdictions.

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

• the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law, give a true and fair view of the assets, liabilities, financial position and return or loss of the Company;

• the Strategic Report and 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; and

• The Directors confirm that, taken as a whole, the annual report and accounts are fair, balanced and understandable and provide the information necessary for shareholders to assess the performance, business model and strategy of the Company.

For and on behalf of the Board

Karl Sternberg,

Chairman

20th April 2016

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST JANUARY 2016

1 Certain comparatives have been amended to be in line with the current presentation adopted. There was no impact on the comparative net return or net assets as a result of the new presentation.

2 Dividends paid during the year ended 31st January 2016 of 4.7p amounting to £2,902,000 (2015: 4.4p per Income share, amounting to £2,716,000).

No operations were acquired or discontinued in the year.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST JANUARY 2016

STATEMENT OF FINANCIAL POSITION AT 31ST JANUARY 2016

Company registration number: 5973571

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JANUARY 2016

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JANUARY 2016

1. Accounting policies

(a) Basis of accounting

The financial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP') including FRS 102 'Financial Reporting Standard applicable in the UK and Republic of Ireland' and 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.

The Company has a fixed life and will be wound up voluntarily on or around 30th November 2016. Therefore, these financial statements have been prepared under the 'break-up' basis. Fixed assets have been reclassified as current assets. The market value for investments is deemed to be a proxy for recoverable value. Creditors falling due after more than one year have been reclassified as current liabilities.

2. Dividends payable on Income shares

(a) Dividends paid and proposed

The fourth quarterly dividend has been declared in respect of the year ended 31st January 2016 and was paid on 24th March 2016.

(b) Dividends declared for the purposes of Section 1158 of the Corporation Tax Act 2010 ('Section 1158')

The requirements of Section 1158 of the Corporation Tax Act 2010 are considered on the basis of dividends paid and declared in respect of the year as follows. The revenue available for distribution by way of dividend for the year is £3,564,000 (2015: £3,079,000). The brought forward income available for distribution after allowing for the prior year fourth quarterly dividend amounted to £1,428,000. The carried forward income available for distribution after allowing for the fourth quarterly dividend declared amounts to £2,028,000. Details of the movement in the revenue reserve are given in note 16 on page 49 of the Annual Report and Accounts.

3. Return/(loss) per share

Return per Income share

Return per Income share is based on the weighted average number of Income shares in issue during the year of 61,747,803 (2015: 61,747,803) and the following figures:

(Loss)/return per Capital share is based on the weighted average number of Capital shares in issue during the year of 64,527,781 (2015: 64,527,781) and the following figures:

1 Not including the effect of the cash flow hedge.

4. Net asset value per share

The net asset values per share are based on 61,747,803 (2015: 61,747,803) Income shares and 64,527,781 (2015: 64,527,781) Capital shares.

The final entitlement of the Income Shares of 103.4p is increased by the distributable reserves attributable to Income Shares.

5. Status of announcement

2015 Financial Information

The figures and financial information for 2015 are extracted from the Annual Report and Accounts for the year ended 31st January 2015 and do not constitute the statutory accounts for the year. The Annual Report and Accounts includes the Report of the Independent Auditor 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 Accounts will be delivered to the Registrar of Companies in due course.

2016 Financial Information

The figures and financial information for 2016 are extracted from the Annual Report and Accounts for the year ended 31st January 2016 and do not constitute the statutory accounts for the year. The Annual Report and Accounts includes the Report of the Independent Auditor 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 Accounts will be delivered to the Registrar of Companies in due course.

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.

JPMORGAN FUNDS LIMITED

20th April 2016

For further information:

Divya Amin

JPMorgan Funds Limited 020 7742 4000

ENDS

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

The Annual Report and Accounts will also shortly be available on the Company's website at www.jpmincomeandgrowth.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