Half-year Financial Report

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN EUROPEAN GROWTH & INCOME PLC

HALF YEAR REPORT & FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2025

Legal Entity Identifier: 549300D8SPJFHBDGXS57

Information disclosed in accordance with the DTR 4.1.3

HIGHLIGHTS

• Best performing investment trust in its sector with an outperformance over benchmark and the investment trusts within the Company's peer group over the six-month reporting period, and also three and five years. 

• The Company was voted the best investment company in the European sector at the annual AIC

Investment Week Award ceremony held on 19th November 2025.

• The dividend for the 6 months to 30th September 2025 was 2.4p per share. The Board maintains its aim to

provide shareholders with a predictable dividend based on 4% of the previous year end NAV.

• The Company's Ordinary share discount to NAV with debt at fair value was 1.1% as at 26th November

2025. As at 30th September 2025, the Company's Ordinary share discount was 2.4%. 

The Chair of the Company, Rita Dhut, commented:

"I am pleased to report that in its six-month reporting period to the 30th September 2025 the Company

achieved a total return on net assets of +14.2%, representing an outperformance of +3.5% over its

benchmark, thereby continuing to deliver consistent strong outperformance.

The clear investment mandate allows the Portfolio Managers to seek out the best opportunities across European markets, delivering to the Company's shareholders the best of capital growth combined with an attractive

dividend."

Portfolio Managers Alexander Fitzalan Howard, Zenah Shuhaiber and Tim Lewis commented:

"Valuations of European companies remain attractive, particularly relative to their US counterparts, and investment flows into European markets have started to pick up. Your portfolio managers continue to find stock picking opportunities that meet our criteria regarding valuation, quality and operational momentum."

CHAIR'S STATEMENT

Introduction

I am pleased to report that in its six-month reporting period to the 30th September 2025 the Company achieved a total return on net assets of +14.2%, representing an outperformance of +3.5% over its benchmark, thereby continuing to deliver consistent strong outperformance. The clear investment mandate allows the Portfolio Managers to seek out the best opportunities across European markets, delivering to the Company's shareholders the best of capital growth combined with an attractive dividend.

The backdrop for the period of this report remains complicated. The devastating conflict in Ukraine continues with difficult negotiations to come, while there is a fragile ceasefire in Gaza. With little perceived economic impact, global stock markets have shrugged off any material effects from these events.

Eurozone economic growth has been modest with GDP growth of 0.2% in the third quarter. The positive domestic positions of Spain and France were tempered by the stagnant performance of Germany and contraction in Italy. Continued growth across the region is expected to be supported by the existing significant EU wide infrastructure projects in addition to the ReArm Europe Plan announced earlier in the year. This is expected to enable up to €800 billion in additional defence spending in coming years. The last European Central Bank's (ECB) interest rate cut was in June 2025 to 2% and Inflation in the region has remained relatively stable at around 2%.

On the political front France and Germany face difficult domestic issues together with the wider challenges in the EU's economic and strategic transatlantic relationship with the USA.

Performance

Return on net assets (NAV) and return to shareholders

The Company's net assets outperformed its benchmark by 3.5% in the period under review (debt at fair value). The total return on net assets was 14.2% (debt at fair value), compared with the benchmark which recorded a total return in sterling terms of 10.7%. Stock selection was the main reason for this. In their Report on page 11 of the Company's Half Year Report and Financial Statements, the Portfolio Managers' review in more detail some of the factors underlying the performance of the Company as well as commenting on the economic and market background over the period in question. For an explanation of the calculation of the Company's total return, please see the Glossary of Terms and Alternative Performance Measures on page 27 of the Company's Half Year Report and Financial Statements.

The total return on share price, which takes into account the movement of the share price and dividends received over the six months delivered a return of 18.0%, which was also an outperformance of the benchmark by a significantly higher margin than the net asset performance benefitting in part from a reduction in the Company's share price discount to net assets.

Over three, five and ten years the Company has outperformed its benchmark by +40.7%, +69.1% and +49.9% respectively.

Dividends

One of the aims of the Company is to provide shareholders with a predictable dividend based on 4% of the preceding year end net asset value ('NAV') per share. The Company pays four interim dividends in July, October, January and March. In line with the above aim, in respect of the year ending 31st March 2026, the Company has paid the first and second interim dividends of 1.20 pence per Ordinary share. Between the end of this six-month reporting period and the release of this report, the Company's Board declared a third interim dividend of 1.20 pence per Ordinary share. The Board is expecting to declare the fourth interim dividend in February 2026.

As was the case for the Company's dividends in respect of the year ended 31st March 2025, to the extent that brought forward revenue reserves are not sufficient, dividends will be paid from distributable capital reserves as permitted by the Company's Articles.

Gearing

There has been no change in the Investment Manager's permitted gearing range, as previously set by the Board, of between 10% net cash to 20% geared. At 30th September 2025 the Company held a gearing level of 4.7% (31st March 2025: 4.3%).

Discounts, Share Issuance and Repurchase

During the period under review, the average discount across the Investment Trust sector has continued to remain at elevated levels. However, we have seen changes in discounts, including narrowing across sub sectors and individual Trusts as investors have differentiated between investment mandates and performance. It is pleasing to note, from the start of 2025, a combination of improving sentiment towards European equities combined with a greater interest in the Company's shares caused the Company's discount to narrow considerably without requiring the Board to be particularly active.

The Company's Ordinary share discount to NAV with debt at fair value as at 30th September 2025 was 2.4%. The average discount of a peer group of four companies as at the same date was approximately 5.9%. This reflects the Company's narrowing level of discount in both absolute and relative terms. On 26th November 2025, the Company's Ordinary share discount was 1.1%.

In the period under review, 250,000 Ordinary shares were bought into Treasury. From 1st October 2025 to 26th November 2025, no Ordinary shares were bought into Treasury and no Ordinary shares were issued.

AIC Investment Week Award 2025

I am delighted that the Company was voted the best investment company in the European sector at the annual AIC Investment Week Award ceremony held on 19th November 2025. Media reports on the 2025 awards have commented that as a winner the Company is leading the way in meeting investors' changing needs and taking the investment company sector forward. 

Outlook

The geopolitical outlook remains fragile and trade policies of the US government cause uncertainty both in their political and economic implications. We are mindful the tariff hikes will have implications for the shape of trade and output in future years. The board also continues to observe and probe the Portfolio Managers on the significant capex boom into AI software and infrastructure that is particularly notable in the USA, watchful of its impact on European indices and companies. However, there are tentative signs economic growth in the Eurozone will improve with plenty of self-help and we are seeing positive investor sentiment towards European equity markets. The Portfolio Managers proceed with their considered approach, owning a diversified portfolio and positions in companies whose fortunes are expected to remain relatively resilient and have the agility to circumnavigate the complex backdrop. The Board anticipates continued successful delivery of the investment mandate.

Rita Dhut

Chair 27th November 2025

PORTFOLIO MANAGERS' REPORT

Market Review

European equity markets returned 10.7% in Sterling terms during the six months to 30th September 2025 under review. The period started in dramatic fashion with President Trump's tariff announcements at the beginning of April which led to a sharp selloff in global markets. Although trade tensions have dominated newswires since April, the initial volatility, particularly in bond markets, pushed the US administration to soften its trade policy by pausing reciprocal tariffs for ninety days and removing tariffs on electronic products. The US Court of International Trade also ruled against President Trump's tariff authority which helped to de-escalate trade tensions. Equity markets quickly took the view that the final outcome would be less damaging than originally feared and by early May European indices had recouped all the losses.

The rest of the period saw European equity markets gradually advance. Economic sentiment, as measured by the Purchasing Managers' Index, improved from May onwards in both services and manufacturing. The combination of positive real income growth, low energy prices and lower interest rates from the ECB helped to create a more benign environment for equity markets than initially expected in April.

Portfolio Review

The Company's Net Asset Value (NAV) (debt at fair value) returned 14.2% in the period under review, outperforming its benchmark by 3.5%. Positive stock selection was a feature across most sectors with Materials and Commercial & Professional Services contributing the most, offsetting negative performance within Food Beverage & Tobacco. Within Beverages, Carlsberg was the main detractor as the company reported weaker than expected volumes, particularly in Asia. On the positive side, Heidelberg Materials, a German cement producer, was a main contributor. The cement market has become much more price rational, thanks to regulatory changes that force players to account for the cost of carbon. As a result, some smaller competitors have exited the market, making it easier for companies like Heidelberg to pass through price increases. Meanwhile, Bilfinger, which is a market leader in European industrial services, has witnessed an improving order pipeline from investments in alternative energy and energy efficiency.

We started a new position in Siemens Energy, which is seeing strong growth supported by grid infrastructure and gas capacity additions driven by data centre demand. We added to an existing position in Prosus, primarily on the back of good results from Tencent, where Prosus' roughly 25% stake accounts for >80% of the NAV of the company. We also started a new position in Mercedes-Benz. We remain underweight Auto OEMs on aggregate, but in the case of Mercedes we see stabilising earnings momentum, a commitment to shareholder returns and a compelling valuation case.

We reduced the portfolio's positioning to several asset-light names in the software and information exchange sectors. We sold out of positions in Deutsche Boerse and Euronext, the European stock exchange groups following strong share price performance leading to more stretched valuations. We also sold out of the position in Wolters Kluwer, the Dutch-listed information company, and reduced the holding in SAP, the German software business, on concerns of AI competition impacting on their business. The net effect of our actions through this period has been to increase the Industrials weighting in the portfolio and to reduce the positions in Financials and Information Technology. By the end of the half year, the Company's top three overweight sectors were Industrials, Communication Services and Energy.

Outlook

Looking forward there are, as always, plenty of issues to be concerned about including ongoing tariff negotiations, domestic political issues particularly in France, rising deficits and the conflicts in Ukraine and the Middle East. However, despite this there is much to be optimistic about. The consumer remains in a robust condition and there are signs of recovery in the manufacturing sector. Fiscal stimulus initiatives are expected to be central to driving growth in 2026. Europe's renewed emphasis on strategic resilience - evident in planned investments in energy, defence, and infrastructure - is strengthening its domestic industrial base. These policy changes are encouraging greater capital spending and advancing long-term priorities such as decarbonisation and the restructuring of supply chains. Moreover, valuations of European companies remain attractive, particularly relative to their US counterparts, and investment flows into European markets have started to pick up. Your portfolio managers continue to find stock picking opportunities that meet our criteria regarding valuation, quality and operational momentum.

Alexander Fitzalan Howard

Zenah Shuhaiber

Tim Lewis

Portfolio Managers 27th November 2025

INTERIM MANAGEMENT REPORT

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

Principal Risks and Uncertainties

The Principal Risks and uncertainties faced by the Company fall into the following broad categories: investment; operational; regulatory; strategy; climate change; geopolitical and economic concerns; on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 31st March 2025. A review of risks conducted for this report concluded that the principal risks and uncertainties faced by the Company have not changed significantly.

Related Parties Transactions

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

Going Concern

The Directors believe, having considered the Company's investment objectives, future cash flow projections, risk management policies, liquidity risk, principal and emerging risks, capital management policies and procedures, nature of the portfolio and expenditure projections, the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and, more specifically, that there are no material uncertainties relating to the Company that would prevent its ability to continue in such operation existence for at least 12 months from the date of the approval of this half yearly report. We considered as part of our risk assessment the nature of the Company, its business model and related risks including where relevant the impact of the unrest in the Middle East and Russia's invasion of Ukraine, the requirements of the applicable financial reporting framework the covenants in respect of the Company's private placement debt and the system of internal control. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

Directors' Responsibilities

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

(i) the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as required by the UK Listing Authority Disclosure and Transparency Rules 4.2.4R; and

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

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 judgements 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 the 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.

For and on behalf of the Board

Rita Dhut

Chair 27th November 2025

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

1 Includes foreign currency (losses)/gains on the private placement note issued in Euro, forward foreign currency contracts and cash at bank.

CONDENSED STATEMENT OF CHANGES IN EQUITY

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

CONDENSED STATEMENT OF FINANCIAL POSITION

1 The value of investments on loan, previously included within the total value of investments held at fair value through profit or loss, has been disclosed separately. The figures for 30th September 2024 have been restated accordingly and do not impact the Company's Net assets, Statement of Comprehensive Income, or Statement of Cash Flows as previously presented.

CONDENSED STATEMENT OF CASH FLOWS

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the six months ended 30th September 2025

1. Financial statements

The information contained within the condensed financial statements in this half year report has not been audited or reviewed by the Company's auditors.

The figures and financial information for the year ended 31st March 2025 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and including the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

2. Accounting policies

The financial statements have been prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP'), including 'the Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the revised 'SORP') issued by the Association of Investment Companies in July 2022.

FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 30th September 2025.

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 financial statements for the year ended 31st March 2025.

3. Return/(loss) per ordinary share

4. Dividends paid

All dividends paid and declared in the six months ended 30th September 2025 have been funded from the Revenue reserve.

The Company's second interim dividend of 1.20p per ordinary share was paid on 31st October 2025 at a cost of £5,061,000.

5. Net asset value per ordinary share

The net asset value per ordinary share and the net asset value attributable to the ordinary shares at the period/year end are shown below. These were calculated using 421,766,188 (30th September 2024: 427,369,449; 31st March 2025: 422,016,188) ordinary shares in issue at the period/year end (excluding Treasury shares).

6. Fair valuation of instruments

The fair value hierarchy disclosures required by FRS 102 are given below:

1 Forward foreign currency contracts.

7. Analysis of changes in net debt

JPMORGAN FUNDS LIMITED

27th November 2025

For further information, please contact: Paul Winship For and on behalf of JPMorgan Funds Limited

Telephone: 0800 20 40 20 or +44 1268 44 44 70

E-mail: [email protected]

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.

ENDS 

A copy of the half year will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The Half Year Report will also shortly be available on the Company's website at www.jpmeuropeangrowthandincome.com where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.